Engro

engrocorp
The General Manager

Pakistan Stock Exchange Limited
Stock Exchange Building
Stock Exchange Road
Karachi
March 8, 2023
Dear Sir/Madam,
Transmission of the Annual Report 2022 for the year ended December 31, 2022.
We have to inform you that the Annual Report of the Engro Corporation Limited (the
"Company" for the year ended December 31, 2022 have been transmitted through PUCARS
and is also available on the Company's website which can be downloaded from the following
link:
https://www.engro.com/investor-relations/financial-rep01ts/
You may please inform the TRE Certificate Holders of the Exchange accordingly.
Yours faithfully,
For and on behalf of

Engro Corporation Limited
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Shomaila Loan
Company Secretary
Cc:
1. The Director (Enforcement), Securities & Exchange Commission of Pakistan, NIC
Building, 63 Jinnah Avenue, Blue Area, Islamabad (with 3 printed copies of the
Annual Repo11 2022 of the ·company for the year ended December 31, 2022).
2. The Registrar, Company Registration Office, State Life Building No. 2, 4 th Floor,
North Wing, Wallace Road, I.I. Chundrigar Road, Karachi.
8th Floor, The Harbor Front Building, HC-3, Marine Drive, Block 4, Clifton, Karachi 75600, Pakistan.
TOO 92 (21) 35297501-10 FOO 92 (21) 35810663
engro.com
+92-21-111-211-211 corp
engro.com EngroCorp
Engro.Corporation engrocorporation
EngroCorp engro-corp
about the table of
theme contents
While much around us has
been in flux, our vision for
Pakistan withstands. As a company other information
proud, home-grown
company information 02 categories of shareholding 98
conglomerate, we follow an
inclusive business growth key figures 03 pattern of shareholding 103
model whereby our businesses’ our vision 04
successes are intertwined with
developments in their group structure 06
surrounding communities. core values 08
2022 at a glance 10 financial review
As such, we remain committed
to building a resilient, 2022 snapshot 12 quarterly analysis 114
productive, and self-reliant
board of directors 16 horizontal & vertical analysis 116
Nation by seeking new avenues
for growth, setting industry notice of meeting 32 six years summary 124
benchmarks, and encouraging sustainable impact 46 statement of value addition & distribution 136
those who come under our
sphere of influence to unlock
their true potential.
To ensure prosperity for

Pakistan and its people, Engro
corporate governanace financial statement
Corporation has been investing chairman’s & vice chairman’s message 54 independent auditor’s report 142
in industries that are the need of (standalone)
the hour for nearly 6 decades. president’s message 56
In doing so, we aim to lay the awards & recognition 2022 58 financial statement (standalone) 148
blueprints of a future of independent auditor’s report 200
director’s report 62
possibilities that we hope will (consolidated)
enable growth for Pakistan. governance control framework 92
financial statement (consolidated) 206
statement of compliance with listed 94
companies (code of corporate governance)
regulations, 2019 proxy form 337
independent auditor’s review report to 97
the members of engro corporation limited standard request form circulation 339
of annual audited accounts
company
information
board of directors
Mr. Hussain Dawood Ms. Henna Inam Mr. Khawaja Iqbal Hassan
President & CEO Chairman Independent Director & Independent Director
Mr. Ghias Khan Chairwoman, BPC
Mr. Shahzada Dawood Ms. Dominique Russo
Vice Chairman & Mr. Abdul Samad Dawood Independent Director
Company Secretary Chairman, BIC Non-Executive Director
Ms. Shomaila Loan Mr. Ghias Khan
key figures
Mr. Muhammad Ms. Sabrina Dawood President & CEO
Abdul Aleem Non-Executive Director
Chief Financial Officer Independent Director &
Mr. Mazhar Hasnani Chairman, BAC Mr. Rizwan Diwan
Independent Director
2022 2021
bankers shares registrar
Revenue
Allied Bank Limited FAMCO Associates (Private) Limited (Rs. in millions) 356,428 311,587
8-F, Near Faran Hotel, Nursery, Block-6 PECHS,
Askari Bank Limited EBITDA
Bank Al-Falah Limited
Shahrah-e-Faisal, Karachi
(Rs. in millions) 113,318 101,690
Bank Al-Habib Limited Earnings per Share

(Rupees) 42.23 48.50
Citi Bank N.A registered office
Total Assets
Faysal Bank Limited 8 th Floor, The Harbour Front Building,
(Rs. in millions) 749,416 644,321
Habib Bank Limited HC # 3, Marine Drive, Block 4, Clifton, Karachi-75600, Pakistan
Tel: +92(21) 35297501 – 35297510, Fax:+92(21) 35810669 Total Equity
Habib Metropolitan Bank Limited e-mail: [email protected], website: www.engro.com (Rs. in millions) 240,584 242,800
JS Bank Limited
Capital Expenditure
MCB Bank Limited (Rs. in millions) 40,730 20,500
Meezan Bank Limited auditors Cash Flow from Operations

National Bank of Pakistan Limited A.F. Ferguson & Co Chartered Accountants (Rs. in millions) 76,720 48,574
Soneri Bank Limited State Life Building No. 1-C, I.I. Chundrigar Road Dividend Paid
Standard Chartered Bank (Pakistan) Limited
Karachi-74000, Pakistan (Rs. in millions) 37,042 28,785
Tel: +92(21) 32426682-6 / 32426711-5
Market Capitalization
United Bank Limited Fax +92(21) 32415007 / 32427938
(Rs. in millions) 150,961 156,958
02 engro corporation limited annual report 2022 03

enabling growth enabling growth
our
vision
To be the premier
Pakistani enterprise
with a global reach,
passionately pursuing
value creation for all
stakeholders
group
structure
Dawood
Hercules
Corporation
Ltd.
Engro
Corporation
Ltd.
Engro Friesland Engro Engro Elengy Engro

Engro Engro Engro
Eximp Campina Connect Vopak Terminal Polymer & Engro
Fertilizers Eximp Energy
Agriproducts Engro (Pvt.) Terminal Pakistan Chemicals Foundation
Ltd. FZE Ltd.
(Pvt.) Ltd. Pakistan Ltd. Ltd. Ltd. Ltd. (Trust)
56.2% 100% 100%
100% Ltd. 39.9% 100% 50.0% 56.0% 56.1%
Engro Engro Engro

EFERT Think
Enfrashare Elengy Powergen
Agritrade PVC (Pvt.)
(Pvt.) Terminal Qadirpur
(Pvt) Ltd. Ltd.
Ltd. (Pvt.) Ltd. Ltd.
100% 100%
100% 100% 68.8%
Engro Engro
Powergen Peroxide
Thar (Pvt.) (Pvt.)
Ltd. Ltd.
50.1% 100%
Engro
Energy
Services
Ltd.
Parent/Holding Company Associate/Joint Venture 100%
Subsidiaries Engro Foundation (Trust)
Sindh
Engro
Coal Mining
Company
11.9%
Note: The above companies include all key active business entities under Engro Corporation.

At engro, we never forget what
we stand for, and each engro
employee…
core
values health, safety
& environment
...cares deeply about environmental
impact and the safety of people
Operating in diverse industries and spread
over geographical landscapes, Engro
employees are knit into one big family, united
by a drive for success, passion for Pakistan,
and the same core values. Our values form
the basis of everything we do – from open
communication to fostering an environment of
trust and guaranteeing the well-being and
ethics ...has impeccable character and lives
by the highest standards of integrity
safety of our people. & integrity and accountability
community ...nurtures passion to serve country,

community, and company, with a strong
& society belief in the dignity and value of people

2022 at a glance
9,095 8,778
Fertilizer Polymer 83,070

Consolidated
Revenue
Terminal Power and mining
356,428
(Rs. in millions)
Connectivity & Telecom Others 16,409
157,017
82,060
20,448 14,137
To Employees To Government
Wealth
To Society To Providers of Capital Distributed
163,738
Retained for reinvestment and future growth (Rs. in millions)
65,786 62,566
801
160
133
124
Fertilizer Polymer & Chemicals 477
Engro Corporation Energy Employees

Under Management
1,670
Terminals Eximp Agri Products 3,613
369
Enfrashare
680
80.57
Livelihoods Education
Social
Health Health - Covid Investment
322.51 Areas 205.64
Infrastructure Environment 841.31
(Rs. in millions)
Others
38.40 127.35
66.84
10 engro corporation limited

enabling growth
2022
snapshot
fulfilled
Engro Corporation
15%
contributed
contributed USD 295.4 million in taxes to the
national exchequer.
$295.4mn in taxes
Engro Elengy Terminal
helped fulfill around 15% of local natural gas demand. natural gas
demand
generated
$30mn
substituted imports worth
Engro Fertilizers Engro Eximp Agriproducts
saved Pakistan USD 900 million in import
substitution through local urea manufacturing.
$900mn for Pakistan
generated approximately USD 30 million in foreign exchange
reserves by exporting 3rd largest volume of rice for 2022. for Pakistan
through exports
boosted Pakistan’s
Engro Energy illuminated Engro Polymer & Chemicals forex reserves by
illuminated nearly 9,000,000* lives

through its power generation projects.
9mn
Pakistani lives
contributed over USD 134 million in import substitution
through its local PVC & VCM production and generated $155mn through import
USD 21 million in foreign exchange through exports.
substitution and exports
operationalized carried out
$19mn+
Engro Enfrashare
3,300+
Engro Eximp FZE
enabled connectivity by operationalizing more achieved exports worth approximately USD 19.1
than 3,300 telecom towers across Pakistan. telecom towers million for Engro subsidiaries. in exports
served beneﬁtted
Engro Vopak Terminal
ensured energy security to 5% off-grid households 5%
of off-grid
FrieslandCampina Engro
helped provide sustainable livelihoods to 116,000 farmers 116,000 farmers & milk
across Pakistan through marine LPG supply. and milk suppliers through 1,300+ milk collection centers
households suppliers
*calculated using avg 6.4 people per household

(source: mb-research.de)

our
people
At Engro, we recognize that our success as a Company is
contingent upon the multiplier effect of our people. As such, we
continually strive to create opportunities that inculcate a sense
of ownership in a culture founded on truth, trust, and a
relentless pursuit of excellence.
Engro takes special care to attract, hire, retain, and develop the
right talent to drive its results. We routinely map out skill gaps
and offer tailored training and development programs to
enhance the employee experience and supplement these with
favourable HR campaigns such as Break Ke Baad and the DE&I
Leaders Program, which help us ensure long-term, shared
value creation for both women and men.
board of
directors
Rizwan
Abdul Samad Diwan
Shahzada Dawood Independent Khawaja
Dawood Director Muhammad
Non-Executive Director Iqbal Hassan
Vice
Abdul Aleem
Chairman & Independent
Director Independent
Chairman, BIC Henna Sabrina Director &
Inam Dawood Chairman, BAC
Ghias
Independent Khan Non-Executive
Director & Director
Chairwoman, President
BPC & CEO
Hussain
Not pictured: Dominique Russo (Independent Director)

Dawood
Chairman
board of
directors
Group is now focused on continuously investing
in the growth potential of both its people and
businesses. This entails competency in
leadership development, upskilling and
reskilling, and international partnerships,
ultimately contributing to the growth of
Pakistan.
joined WEF’s Global Plastic Action Partnership
Mr. Dawood is the Chair of the Board of to promote a circular economy.
Trustees for The Dawood Foundation (TDF),
which focuses on Education Inspiring Social
Hussain Dawood Change. The Magnifiscience Centre, Pakistan’s
Shahzada Dawood He aspires for a sustainable future, and
believes in inclusive business models involving
Chairman first interactive science museum, was Vice Chairman & Chairman, BIC low-income communities, building value chains
conceptualized and developed by TDF. He is along business interests. In line with this,
the Founder and Chairman of the Board of Shahzada serves as Trustee on the Boards of
Mr. Hussain Dawood joined the Board in 2003 Governors of Karachi School of Business & Mr. Shahzada Dawood joined the Board of Engro in both Engro Foundation and The Dawood
and serves as the Chairman of Engro Corporation Leadership (KSBL), a graduate management 2003 and currently serves as the Vice Chairman. Foundation.
since 2006. Under his stewardship, the school focused on inspiring effective leaders. He has over 2 decades of experience in corporate
Company’s revenue has grown over 20 times and Within KSBL, the Engro Leadership Academy governance and transformation of industries, In December 2020, Shahzada also joined the
Engro has emerged as a partner of choice for strives to embody the principles of CGM for all including growth and innovation opportunities Board of Trustees of the SETI Institute. He
international businesses exploring investments in who pass through its doors. through mergers and acquisitions of diversified serves as Director across Boards of various
Pakistan. During his period, Engro has focused public-listed companies across textiles, fertilizers, companies within the Dawood Group,
on solutions for pressing issues faced by the Mr. Dawood is also a member of the Board of foods, and energy. including Dawood Hercules Corporation Ltd
Country by expanding existing businesses and Governors of the Islamabad Policy Research and Dawood Lawrencepur Ltd, instituting high
entering into new fields of business, like mining, Institute. He has been leading the Group’s Shahzada is a leading voice for the standards of corporate governance and
power generation, and telecom infrastructure, to engagement with the World Economic Forum institutionalization of key international networks, perpetuating the future proofing of these
name a few. He also serves as Chairman of the since 1992. including the World Economic Forum (WEF). Under businesses.
Dawood Hercules Corporation. his guidance, Engro has become Pakistan’s first
Mr. Dawood holds an MBA from the Kellogg company to sign a commitment sponsored by Shahzada holds a M.Sc. in Global Textile
Mr. Dawood is enthusiastic about human School of Management, Northwestern WEF’s International Business Council to implement Marketing from Philadelphia University, USA,
development based on Character and Good University, USA, and is a graduate in Metallurgy Stakeholder Capitalism Metrics, and has also and a LLB from Buckingham University, UK.
Manners (CGM). Under his stewardship, the from Sheffield University, UK.

board of
directors
he has served in senior positions with large
Government-owned organizations in Pakistan
and his last assignment was as the Managing
Director, Pakistan State Oil Company Ltd.
Mr. Abdul Aleem was Director and Chairman of

the Audit Committee of Dawood Hercules
Corporation and Meezan Bank until 2018. Since
October 2020, he has been re-elected as a She believes that our fast-changing world
Director of Pakistan Refinery Limited (PRL) and needs each of us to be inspired leaders, who
is also the Chairman of Pakistan Refinery lead with agility from the core of who we are.
Limited (PRL) Board Audit Committee. Effective Inam helps C-level leaders and teams thrive in
November 2021, he was re-elected as an the midst of meaningful and complex
challenges. As a trusted advisor to boards and
Independent Director/Chairman Audit
CEOs, she also works to groom leaders for
Committee of Meezan Bank Limited.
Muhammad Abdul Aleem Henna Inam CEO-succession.
Independent Director In the past, Mr. Abdul Aleem also served as the Independent Director Ms. Inam is the author of two books, Wired for
Director of Pakistan Tobacco, Lahore University
& Chairman, BAC of Management Sciences, Pakistan Institute of
& Chairperson, BPC Authenticity and Wired for Disruption, and a
contributor to Forbes on leadership. She is also
Corporate Governance and Pakistan Refinery the host of the popular Transformational
Ltd, and Chairman of Faysal Asset Ms. Henna Inam joined the Board of Engro Leadership podcast and brings a global
Mr. Muhammad Abdul Aleem joined the Board of Management Company. Corporation in 2017 and serves as Chair of the perspective, having lived and worked in seven
Engro Corporation in 2015 and is Chairman of its
Board People Committee. She is also part of the countries across four continents. She is
Audit Committee. As a supporter of leading non-profit Board Audit Committee. passionate about advancing women in
organizations in the field of education, he is leadership and on boards and is also a
Mr. Abdul Aleem is currently the CEO and currently Vice Chairman of the Professional Ms. Inam is the CEO of Transformational founding charter member of OPEN Atlanta.
Secretary General of Overseas Investors Education Foundation and Chairman of Intellect Leadership Inc. Her personal mission is to grow OPEN is the largest Pakistani entrepreneurship
Chambers of Commerce & Industry (OICCI). He School Governing Board. transformational leaders who make the world and leadership community in the world.
has worked in senior positions within both Exxon better for all. She is a former C-suite executive
Chemicals and Engro Corporation, serving in both Mr. Abdul Aleem is a Fellow Chartered who drove transformation throughout her Ms. Inam completed her MBA in Finance from
Singapore and Pakistan. Thereafter, he worked Accountant (Gold Medallist) and a Fellow corporate career at Novartis and Procter & The Wharton School at the University of
with British American Tobacco Group UK (BAT) in Member of the Institute of Cost & Management Gamble, occupying roles such as Global Head Pennsylvania, and participated in Executive
e-Innovation at Novartis, and Chief Marketing & Education programs at Harvard Business
Pakistan and overseas, where he ultimately Accountants. He has also attended extensive
Innovation Officer and Region President for the School. She received her board certification
served as CEO of BAT Operations in Cambodia, international management training programs,
Americas at Ciba-Vision. from Stanford University.
Mauritius, and Indian Ocean territory. Since 2004, including trainings at Stanford University.

board of
directors
with the responsibility of leading the merger of
Engro Foods (a subsidiary of Engro Corporation)
into global dairy giant Royal FrieslandCampina
based on the convergence of their values, goals,
and abilities to address Pakistan’s nutritional adults through experiential learning. TDF Ghar,
challenges and has since served as the Chair of a 1930s house restored into a safe space for
the Board of FrieslandCampina Engro Pakistan. youth whilst preserving Karachi’s heritage and
These efforts are a culmination of the values culture, and the Nature Series, which creates
advocated by the Group Chairman, Mr Hussain awareness about Pakistan’s environmental
Dawood, who believes a strong code of values treasures, their impact on our ecosystem, and
builds the foundation for effective their sustainability challenges, among other
problem-solving and human prosperity. initiatives, are also amongst her passion
projects.
Mr. Dawood is also an active director on the
Board of Pakistan Business Council, a
Abdul Samad Dawood pan-industry advocacy group that promotes Sabrina Dawood Sabrina is a Director on the Boards of The
Dawood Foundation, Engro Corporation, Engro
Non-Executive Director easing of barriers to enable Pakistani businesses Non-Executive Director Foundation, Dawood Hercules Corporation
to compete in regional and global arenas. His Limited, Dawood Lawrencepur Limited, Cyan
corporate governance journey spans various Limited, Hajiani Hanifabai Memorial Society
sectors, including financial investments, energy, Ms. Sabrina Dawood is the Vice Chair of The and Karachi Education Initiative (KEI). She is a
Mr. Abdul Samad Dawood is Vice Chair of the and education. In line with his interests, he is a
Board of Dawood Hercules Corporation, an Dawood Foundation (TDF), a philanthropic member of the Board of Governors of the
Director on the Boards of The Dawood organisation promoting education and informal National Management Foundation (NMF) of
investment company of the Dawood Group. Prior Foundation, KSBL, Cyan Ltd, Dawood
to this, he served as the Vice Chair of the Board of learning. She is passionate about building Lahore University of Management Sciences
Lawrencepur Ltd, and Reon (Pvt) Ltd. In addition interactive and inclusive spaces for learning. As a (LUMS) and the Board of the World Wildlife
Engro Corporation, which remains one of Dawood
to governance, Mr. Dawood has served as Chief result of her efforts, Dawood Public School, an Fund (WWF) Pakistan. She also serves as an
Hercules Corporation’s largest investments to date.
Executive Officer for Dawood Hercules institution for primary and secondary level Advisor on the Advisory Committee of Kainaat
Corporation Ltd and Cyan Ltd and is an active education for girls in Karachi since 1983, has built Studios.
Mr. Dawood’s experience of management and member of the Young Presidents Organization.
governance spans over 20 years, with a special a culture that fosters diversity, tolerance,
interest in mergers and acquisitions. He has led inclusion, and character, while providing Sabrina is the Chair of the Hussain Dawood
Aside from work, Mr. Dawood has a keen high-quality education to over 2,500 students. Pledge. The is a billion-rupee contribution of
more than USD 4 billion of M&A deals, including
interest in music and plays the piano and guitar. services, kind and cash, to multiple
the Dawood group’s acquisition of HUBCO from
He is an Economics graduate from University Sabrina has also spearheaded the setup of the organisations, for COVID relief. She holds an
National Power International Holdings in 2012 and
College London, UK, and a certified director of TDF MagnifiScience Centre, a first-of-its-kind, MSc in Medical Anthropology from University
the sale of DH Fertilizers to Fatima Fertilizer
corporate governance from the Pakistan Institute interactive museum which promotes science College London and a BA from London School
Company in 2015. Mr. Dawood was also entrusted of Corporate Governance. literacy and critical-thinking in children and young of Economics in Anthropology and Law.

board of
directors
Mr. Hassan has previously served as a Member

of the Monetary Policy Committee of Pakistan
and also been a Member of the Board of
Directors of the State Bank of Pakistan, Civil
Aviation Authority of Pakistan (CAA), Pakistan
Steel Mills, Habib Bank Ltd, National Fullerton
Asset Management Company Ltd, NIB Bank,
Lahore University of Management Sciences,
Rizwan Diwan Khawaja Iqbal Hassan Global Securities Ltd, Citicorp Investment Bank
Pakistan, The Pakistan Fund and the Central
Independent Director Independent Director Depository Company of Pakistan.
He holds a diploma in Accountancy from the

Mr. Rizwan Diwan is a family member of the G&T UK and a BSc in Finance and Marketing from
Group, which is a 70-year-old business group the University of San Francisco. He started his
Mr. Khawaja Iqbal Hassan joined the Board of
involved in polyester textile, packaging, cotton career in 1980 with Citibank N.A. and in 1994,
Engro Corporation in 2018.
textile, retail and energy, with operations in the founded Global Securities Pakistan Ltd, a
Middle East and North America. former joint venture partner of UBS AG and
Mr. Hassan currently also serves as a Director on
the Board of ICI Pakistan Ltd and Lucky Cement leading stockbroking and investment banking
He is the Executive Director of Novatex Ltd, in the Limited. He is a Trustee on the Boards of the firm. In 2003, he founded NIB Bank Ltd. which,
business of PET Resin, Preforms, Bottles and Mr. Diwan is also in the Board of Governors of Karachi Grammar School, the Layton in partnership with Temasek Holdings of
BOPET film and one of the largest exporters of the MHEF (Memon Health & Education Rehmatullah Benevolent Trust and The Tauheed Singapore, became a top 10 ranked
Pakistan. Over the last 26 years, Mr. Diwan has Foundation) and a Director on the Board of Trust. He is also Chairman of the Advisory commercial bank in Pakistan within a period of
led many innovations in the field of rigid and the Citizens Foundation. He has also taught Committee of the Development Corporation 4 years.
flexible packaging in Pakistan, as well as in the entrepreneurship at his alma mater, the Advisers, a wholly-owned subsidiary of British
region. He joined the Board of Directors of Engro Institute of Business Administration in Karachi, International Investment (BII – formerly the CDC Mr. Hassan was awarded the Sitara-i-Imtiaz by
Corporation in 2018 and serves on their Board from where he holds a Masters degree in Group Plc), the development finance institution of the Government of Pakistan for meritorious
Investment and Audit committees. Business Administration. the United Kingdom. contribution to national interests.

board of
directors
Dominique Russo
Independent Director
Ms. Dominique Russo brings two decades of

investment management, corporate structuring,
and national-level advisory experience, having
commenced her investment management career
at Merrill Lynch’s New York headquarters. She
later moved to the GCC with the Financial
Services practice of Booz Allen Hamilton / Booz &
Company. Pakistan, as an Advisor, Chief Executive Officer,
and Board Director.
Ms. Russo has advised various GCC
governments and semi-governmental entities on Ms. Russo is a graduate of Columbia, MIT, and
economic development, investment affairs, and Harvard University, holding a Bachelor of Arts in
related policy development. In addition, she has Economics Philosophy (Columbia), a Master of
advised and led multinational family Business Administration (MIT), and a Master in
conglomerates in the wider region, including Public Administration (Harvard).

enabling growth
board of
directors
efficiency and ecosystem in the Country, Engro He is also leading the transition to sustainability
established 2×330 MW mine-mouth power plants at Engro. The Company has committed to
in Tharparkar. Engro was the first company to adopt and implement stakeholder capitalism
have demonstrated proof of concept and metrics, sponsored by the World Economic
successfully produce up to 660MW of consistent Forum’s International Business Council,
power to the national grid, benefitting 7 million becoming the first organization from Pakistan to
Pakistanis. sign this commitment.
Ghias Khan His leadership has helped position Engro

Fertilizers as an efficient player in the market that
Engro has earned numerous awards, both
locally and globally, for enabling a thriving
President & CEO contributes to food security, while enabling
business environment, investing in the
sustainable agricultural practices.
development of its people, upholding high
Through innovative digitalization efforts such as standards of corporate governance, and
Mr. Ghias Khan is the 4th President & CEO of independent tower companies in the
the Humsafar app, Ghias has helped the promoting diversity, health, safety, &
Engro Corporation. He has played an Country.
Company empower its customers and enabled environment at the workplace.
instrumental role in stewarding Engro’s future
strategy, culture, and international outreach with a Ghias architectured the turnaround of Engro Pakistani farmers to grow. The app has
focus on building the Company’s digitalization Polymer & Chemicals Limited and under his established Engro Fertilizers as the largest e-sales Currently, Ghias serves as Chairman on the
capabilities and transforming it into an intelligent leadership, the Company enhanced its PVC company in the Country. Boards of Engro Fertilizers Limited, Engro
organization that can compete on a global scale. capacity, diversified into new chemicals, Polymer & Chemicals Limited, Engro Enfrashare
In 2022, Ghias was elected President of the and demonstrated efficiencies such that the In line with global best practices and Engro’s (Pvt) Limited, and Engro Energy Limited. He
Overseas Investors Chamber of Commerce & market capitalization increased five-fold in strategic digital imperatives, Ghias has laid the also serves on the Board of Trustees of Engro
Industry (OICCI). six years. He paved the way for more foundation for a digital future through Engro’s Foundation – the social investment arm of
cooperation with our long-time strategic OneSAP initiative, endorsed as Pakistan’s largest Engro Corporation. In addition, he is on the
He spearheaded the development of Engro partner, Royal Vopak, through its entry into digital transformation project. Board of Trustees of Karachi Port Trust (KPT).
Enfrashare in 2018, the Company’s connectivity Engro Elengy, which continues to operate
vertical which has enabled social and ﬁnancial as the most utilized terminal in the world. Ghias has led the people transformation journey
inclusion for Pakistanis. Engro Enfrashare has Ghias holds a Master’s degree in Business
at Engro, revamping its culture and narrative, Administration from the Institute of Business
deployed over 3,300 telecom towers across During his Presidency, in line with the focused on talent development, work culture, and
Pakistan, making it one of the largest Administration, Karachi.
Company’s efforts to improve energy increasing diversity across the Group.

our
verticals
Since inception, Engro has been working
to address some of Pakistan’s most
pressing issues. Over time, we have built
businesses across four key verticals:
energy & related infrastructure,
telecommunications infrastructure,
petrochemicals, and food & agriculture.
Today, we are humbled to be known as a

trusted partner with some of the
best-in-their-field global giants and
employer of choice to some of the
brightest minds across Pakistan.
notice of b) special business
meeting
4. To consider and if deemed fit, pass with or without modification(s), addition(s) or deletion(s),
the following Special Resolution(s) under Section 199 of the Companies Act, 2017 read with
the Companies (Investment in Associated Companies or Associated Undertakings)
Regulations, 2017 (as may be amended), as recommended by the Board of Directors of the
Company:
“RESOLVED THAT, approval of the members of Engro Corporation Limited (the

“Company”) is hereby accorded by way of special resolution (in accordance with Section
Notice is hereby given that the Fifty-Seventh Annual General Meeting of the members of Engro
199 of the Companies Act, 2017 read with Companies (Investment in Associated
Corporation Limited (the “Company”) will be held at Karachi School of Business and Leadership (KSBL)
Companies or Associated Undertakings) Regulations, 2017) for the following acts by the
situated at National Stadium Road, Opp. Liaquat National Hospital, Karachi – 74800 on Thursday,
Company:
March 30, 2023, at 02:30 p.m. to transact the following businesses:
a. Approval for the Company to extend to its subsidiary, Engro Fertilizers Limited, an
Members are encouraged to attend the AGM through video conference facility managed intercompany loan in the aggregate amount of up to PKR Twelve billion (PKR
by the Company (please see the notes section for details). 12,000,000,000), comprising of, inter alia, loans, advances and/or security in any form
(including without limitation guarantees, government securities, cash, listed/unlisted
securities, etc.) on an arm’s length basis, in the form of a revolving line of credit valid for
a) ordinary business
a period of 1 year from the date of the special resolution, which may be renewed by the
1. To receive, consider and adopt the Standalone and Consolidated Audited Financial Company for upto 4 consecutive periods of 1 year each;
Statements of the Company for the year ended December 31, 2022, together with the
Directors' and Auditor’s Reports thereon and Chairman’s Review Report. b. Approval for the Company to extend to its subsidiary, Engro Polymer & Chemicals
Limited, an intercompany loan in the aggregate amount of up to PKR Seven billion
As required under section 223(7) of the Companies Act 2017, Financial Statements of the (PKR 7,000,000,000) comprising of, inter alia, loans, advances and/or security in any
Company have been uploaded on the website of the Company which can be downloaded form (including without limitation guarantees, government securities, cash,
from the following link: listed/unlisted securities etc.) on an arm’s length basis, in the form of a revolving line of
credit valid for a period of one year from the date of the special resolution; which may
be renewed by the Company for upto four consecutive periods of 1 year each;
https://www.engro.com/investor-relations/financial-reports/
c. Approval for the Company to extend to its subsidiary, Engro Elengy Terminal (Private)
Limited, an intercompany loan in the aggregate amount of up to PKR Four billion (PKR
4,000,000,000), comprising of, inter alia, loans, advances and/or security in any form
(including without limitation guarantees, government securities, cash, listed/unlisted
securities etc.) on an arm’s length basis, in the form of a revolving line of credit valid for
2. To declare and approve, as recommended by the Directors, the payment of final cash a period of one year from the date of the special resolution, which may be renewed by
dividend at the rate of PKR 1.00 (10%) for the year ended December 31, 2022. This is in the Company for upto four consecutive periods of one year each;
addition to interim cash dividends of PKR 33.00 (330%) per share.
d. Approval for the Company to extend to its subsidiary, Engro Powergen Qadirpur
3. To appoint Auditors for the year 2023 and fix their remuneration. The Members are hereby Limited, an intercompany loan in the aggregate amount of up to PKR Two billion (PKR
notified that the Board Audit Committee and the Board of Directors have recommended the 2,000,000,000), comprising of, inter alia, loans, advances and/or security in any form
name of retiring Auditors M/s. A. F. Ferguson & Co., for re-appointment as Auditors of the (including without limitation guarantees, government securities, cash, listed/unlisted
Company. securities etc.) on an arm’s length basis, in the form of a revolving line of credit valid for
a period of one year from the date of the special resolution, which may be renewed by
the Company for upto four consecutive periods of one year each;

e. Approval for the Company to extend to its subsidiary, Engro Vopak Terminal Limited, 2. Electronic transmission of Annual Report 2022
an intercompany loan in the aggregate amount of up to PKR Two billion (PKR In compliance with section 223(6) of Companies Act 2017, the Company has electronically
2,000,000,000), comprising of, inter alia, loans, advances and/or security in any form transmitted the Annual Report 2022 through email to shareholders whose email addresses are
(including without limitation guarantees, government securities, cash, listed/unlisted available with the Company’s Share Registrar, M/s. FAMCO Associates (Private) Limited. In those
securities etc.) on an arm’s length basis, in the form of a revolving line of credit valid for cases, where email addresses are not available with the Company’s Share Registrar, printed
a period of one year from the date of the special resolution, which may be renewed by notices of AGM, along-with the QR-enabled code/weblink to download the said financial
the Company for upto four consecutive periods of one year each; statements, have been dispatched. However, the Company will provide hard copies of the Annual
Report to any member on their demand, at their registered address, free of cost, within one week
f. Approval for the Company to extend to its subsidiary, Engro Enfrashare (Private) of receiving such request.
Limited, an intercompany loan in the aggregate amount of up to PKR Two billion (PKR
2,000,000,000), comprising of, inter alia, loans, advances and/or security in any form Further, shareholders are requested to kindly provide their valid email address (along with a copy
(including without limitation guarantees, government securities, cash, listed/unlisted of valid CNIC) to the Company's Share Registrar, M/s. FAMCO Associates (Private) Limited if the
securities etc.) on an arm’s length basis, in the form of a revolving line of credit valid for member holds shares in physical form or, to the member’s respective Participant/Investor
a period of one year from the date of the special resolution, which may be renewed by Account Services, if shares are held in book entry form.
the Company for upto four consecutive periods of one year each;
3. The Share Transfer Book of the Company will be closed from Friday, March 24, 2023, to
FURTHER RESOLVED THAT, the Chief Executive Officer, Chief Financial Officer and/or Thursday, March 30, 2023 (both days inclusive). Transfers received in order at the office of our
Company Secretary of the Company be and are hereby authorized, any two jointly, to do all Registrar, M/s. FAMCO Associates (Private) Limited, 8-F, Near Hotel Faran, Block 6,
acts, deeds and things, take any and all necessary steps, to fulfill the legal, corporate and P.E.C.H.S. Shahrah-e-Faisal, Karachi, PABX No. (+92-21) 34380101-5 and email
procedural formalities and file all necessary documents/returns as deemed necessary on [email protected] by the close of business (05:00 p.m.) on Wednesday, March 22,
this behalf and the matters ancillary thereto to fully achieve the object of the aforesaid 2023, will be treated to have been in time for purpose of determining the entitlement for final cash
resolutions.” dividend, to attend and vote at the meeting.
4. A member entitled to attend and vote at the AGM shall be entitled to appoint another person, as
his/her proxy to attend, speak and vote instead of him/her, and a proxy so appointed shall have
By Order of the Board all such rights in respect of attending, speaking and voting at the AGM as are available to a
member. Proxies, in order to be effective, must be received by the Company not less than 48
Karachi, SHOMAILA LOAN hours before the meeting. A proxyholder may not need to be a member of the Company.
Dated: February 15, 2023 Company Secretary
5. Requirements for appointing Proxies
notes: (a) In case of individuals, the account holder or sub-account holder whose registration details
are uploaded as per the Central Depository Company of Pakistan Limited Regulations shall
1. Participation in the AGM proceeding via video conferencing facility submit the proxy form as per the above requirement.
Members are encouraged to attend the AGM proceedings via video-conferencing facility, which (b) The proxy form shall be witnessed by two male persons whose names, addresses and CNIC
shall be made available by the Company. numbers shall be mentioned on the form.
All shareholders/members interested in attending the AGM, either physically or through (c) Attested copies of the valid CNICs or the passports of the beneficial owner(s) and the proxy
video-conferencing facility, are requested to register their Name, Folio Number, Cell Number, shall be furnished with the proxy form.
CNIC/Passport number at https://forms.office.com/r/Svc5bvK4XM. Confirmation email for
physical meeting or video link and login credentials will be shared with only those shareholders (d) The proxy shall produce his/her valid original CNIC or original passport at the time of the
whose registration are received at least 48 hours before the time of AGM. Annual General Meeting.
Shareholders can also provide their comments and questions for the agenda items of the AGM at (e) In case of a corporate entity, the Board of Directors’ resolution/power of attorney, with
the email address [email protected]. specimen signature of the nominee, shall be submitted to the Company, along with the proxy
form unless the same has been provided earlier.

6. Pursuant to Companies (Postal Ballot) Regulations 2018 and read with Sections 143 and 144 of Further, Non-Muslim shareholders are also required to file Solemn Affirmation (available on
the Companies Act, 2017, members will be allowed to exercise their right of vote through postal https://famco.com.pk/share-registration-service/) with the Share Registrar of the Company in
ballot, that is voting by post or through any electronic mode, in accordance with the requirements case of shares are held in physical certificates or with CDC Participant/Investor Account Services
and procedure contained in the aforesaid Regulations. in case shares are in scripless form. No exemption from deduction of zakat will be allowed unless
the above documents complete in all respects have been made available as above.
7. Electronic dividend mandate
Under the Section 242 of the Companies Act, 2017, it is mandatory for all listed companies to pay 10. Submission of valid CNIC (Mandatory)
cash dividend to its shareholders through electronic mode directly into the bank account As per SECP directives, the dividend of shareholders, whose valid CNICs are not available with
designated by the entitled shareholders. the Share Registrar, may be withheld. All shareholders having physical shareholding are therefore
advised to submit a photocopy of their valid CNICs immediately, if already not provided, to the
To receive dividend directly into their bank account, shareholders are requested (if not already Share Registrar, M/s. FAMCO Associates (Private) Limited without any further delay.
provided) to fill in the Shareholder Information Form for Electronic Credit of Cash Dividend
available on the Company’s website and send it duly signed along with a copy of valid CNIC to 11. Unclaimed Dividend
the Share Registrar, M/s. FAMCO Associates (Private) Limited, in case of physical shares. As per the provision of section 244 of the Companies Act, 2017, any shares issued or dividend
declared by the Company which have remained unclaimed/unpaid for a period of three years from
In case of shares held in CDC, an Electronic Dividend Mandate Form must be directly submitted the date on which it was due and payable are required to be deposited with the Securities and
to shareholder’s brokers/participant/CDC account services. Exchange Commission of Pakistan for the credit of Federal Government after issuance of notices
to the shareholders to file their claim. The details of the shares issued, and dividend declared by
In case of non-receipt of information, the Company will be constrained to withhold payment of the Company which have remained due for more than three years, was sent to shareholders.
dividend to shareholders.
Shareholders are requested to ensure that their claims for unclaimed dividend and shares are
8. In compliance with Section 150 read with Division I of Part III of the First Schedule of the Income lodged promptly. In case, no claim is lodged with the Company in the given time, the Company
Tax Ordinance, 2001, withholding tax on dividend income will be deducted for ‘filer’ and ‘non-filer’ shall, after giving notice in the newspaper, proceed to deposit the unclaimed/unpaid amount and
shareholders at 15% and 30% respectively. A ‘filer’ is a taxpayer whose name appears in the shares with the Federal Government pursuant to the provision of Section 244(2) of the
Active Taxpayers List (ATL) issued by the FBR from time to time and a ‘non-filer’ is a person other Companies Act, 2017.
than a filer. To enable the Company to withhold tax at 15% for filers, all shareholders are advised
to ensure that their names appear in the latest available ATL on the FBR website, otherwise tax 12. Conversion of Physical Shares into CDC Account
on their cash dividend will be deducted at 30% for non-filers. Withholding tax exemption from the
dividend income shall only be allowed if a copy of valid tax exemption certificate is made available The SECP, through its letter No. CSD/ED/Misc/2016-639-640 dated March 26, 2021, has
to the Share Registrar, M/s. FAMCO Associates (Private) Limited, of the Company by the first day advised all listed companies to adhere to the provisions of Section 72 of the Companies Act,
of book closure. 2017, which requires all companies to replace shares issued in physical form to book-entry form
within 4 years of the promulgation of the Act.
According to the FBR, withholding tax in case of joint accounts will be determined separately
based on the ‘Filer/ Non-Filer’ status of the principal shareholder as well as the status of the joint Accordingly, all shareholders of the Company having physical folios/share certificates are
holder(s) based on their shareholding proportions. Members that hold shares with joint requested to convert their shares from physical form into book-entry form at the earliest.
shareholders are requested to provide the shareholding proportions of the principal shareholder Shareholders may contact a PSX Member, CDC Participant, or CDC Investor Account Service
and the joint holder(s) in respect of shares held by them to our Share Registrar, M/s. FAMCO Provider for assistance in opening a CDS Account and subsequent conversion of the physical
Associates (Private) Limited, in writing. In case the required information is not provided to our shares into book-entry form. Maintaining shares in book-entry form has many advantages: safe
Registrar, it will be assumed that the shares are held in equal proportion by the principal custody of shares with the CDC avoidance of formalities required for the issuance of duplicate
shareholder and the joint holder(s). shares, etc. The shareholders of the Company may contact the Share Registrar and Transfer
Agent of the Company, namely FAMCO Associates (Private) Limited, for the conversion of
9. In order to claim exemption from compulsory deduction of Zakat, shareholders are requested to physical shares into book-entry form.
submit a notarised copy of Zakat Declaration Form "CZ-50" on NJSP of Rs.50/- to the Share
Registrar, M/s. FAMCO Associates (Private) Limited, of the Company by first day of book closure.
In case shares are held in scripless form such Zakat Declaration Form (CZ -50) must be uploaded
in the CDC account of the shareholder, through their participant / Investor Account Services.

statement of material facts under section 134(3) (iii) Earnings Per Share for the last 3 years: (Rupees)
of the companies act, 2017 Basic Earnings Per Share 2022 2021 2020
This Statement is annexed to the Notice of the Fifty-Seventh Annual General Meeting of Engro Engro Fertilizers Limited 11.54 15.78 12.59
Corporation Limited (the “Company”) to be held on Thursday, March 30, 2023, at which certain Special Engro Polymer & Chemicals Limited 12.39 16.32 6.28
Engro Vopak Terminal Limited 27.17 26.12 31.10
Business is to be transacted. The purpose of this Statement is to set forth the material facts concerning Engro Elengy Terminal (Private) Limited 783.25 499.58 737.35
such Special Business. Engro Powergen Qadirpur Limited 4.54 4.92 6.42
Engro Enfrashare (Private) Limited (0.18) (1.96) (28.86)
special business:
item (4) of the agenda (iv) Break-Up value per share, based on latest audited financial statements: (Rupees)
To approve intercompany loan to the associated companies. Break-Up Value Per Share - 31 December 2022
The information required under the Companies (Investment in Associated Companies or Engro Fertilizers Limited 31.97
Associated Undertakings) Regulations, 2017, is as follows: Engro Polymer & Chemicals Limited 29.52
Engro Vopak Terminal Limited 31.05
(a) Regarding associated companies and/or associated undertakings: Engro Elengy Terminal (Private) Limited 2405.98
Engro Powergen Qadirpur Limited 40.47
(i) Name of associated companies: Engro Enfrashare (Private) Limited 85.1
Sr. No Name of Associated Company

(v) Financial position, including main items of the statement of financial position and profit and loss
account, on the basis of its latest financial statements:
1 Engro Fertilizers Limited
2 Engro Polymer & Chemicals Limited
Financial year ended December 31, 2022, audited accounts of Engro Fertilizers Limited:
3 Engro Elengy Terminal (Private) Limited
4 Engro Powergen Qadirpur Limited Amount in thousands
5 Engro Vopak Terminal Limited
assets
6 Engro Enfrashare (Private) Limited
Property, plant and equipment 77,879,522
Investments 2,103,692
(ii) Basis of relationship: Stores, spares and loose tools 6,495,230
Stock-in-trade 8,426,837
Name of Associate Relationship Effective Holding % Other assets 44,849,903
Total Assets 139,755,184
Engro Fertilizers Limited Subsidiary of the Company 56.2%
Engro Polymer & Chemicals Limited Subsidiary of the Company 56.1% liabilities
Engro Elengy Terminal (Private) Limited Wholly owned subsidiary of Elengy 56.0% in Borrowings 12,669,628
Terminal Pakistan Limited, which is a joint Elengy Terminal Trade and other payables 42,808,977
venture of Engro Corporation Limited with Pakistan Limited Other liabilities (Including short term borrowings) 41,586,878
Royal Vopak of the Netherlands Total Liabilities 97,065,483
Engro Powergen Qadirpur Limited Subsidiary of Engro Energy Limited, which is 68.8% through Total Equity 42,689,701
a wholly owned subsidiary of the Company Engro Energy Limited
Engro Vopak Terminal Limited Subsidiary of the Company which is a joint 50.0% income statement
Venture of Engro Corporation Limited with Revenue 96,944,967
Royal Vopak of the Netherlands Profit before Tax 22,504,608
Engro Enfrashare (Private) Limited Wholly owned subsidiary of Engro Connect 100.0% Profit after Tax 15,408,134
(Private) Limited, which is 100% owned by
the Company

Financial year ended December 31, 2022, audited accounts of Engro Polymer & Chemicals Financial year ended December 31, 2022, audited accounts of Engro Elengy Terminal
Limited: (Private) Limited:
Amount in thousands Amount in thousands

assets assets
Property, plant and equipment 41,004,218 Property, plant and equipment 8,040,314
Investments 3,884,000 Direct cost of Floating, Storage and Regasification Unit 620,029
Stores, spares and loose tools 2,464,113 Receivable From Sui Southern Gas Company Limited 805,817
Stock-in-trade 10,415,992 Trade debts 2,637,756
Other assets 26,189,301 Net investment in lease 51,821,675
Total Assets 83,957,624 Other assets 10,429,417
Total Assets 74,355,008
liabilities
Borrowings 24,147,934 liabilities
Trade and other payables 14,916,145 Borrowing 2,460,342
Other liabilities (Including short term borrowings) 17,759,873 Lease Liability 54,833,722
Total Liabilities 56,823,952 Trade and other payables 2,724,543
Total Equity 27,133,672 Other liabilities (Including short term borrowings) 6,878,097
Total Liabilities 66,896,704
income statement Total Equity 7,458,304
Revenue 82,059,583
Profit before Tax 16,713,929 income statement
Profit after Tax 11,709,894 Revenue 16,408,856
Profit before Tax 4,746,494
Profit after Tax 2,428,012
Financial year ended December 31, 2022, audited accounts of Engro Vopak Terminal
Limited: Financial year ended December 31, 2022, audited accounts of Engro Powergen Qadirpur
Limited:
Amount in thousands
Amount in thousands
assets
Property, plant and equipment 3,540,370 assets
Stores, spares and loose tools 167,627 Property, plant and equipment 11,112,553
Other assets 2,915,740 Trade Debts 9,800,242
Total Assets 6,623,737 Loans, advances, deposits, prepayments 148,006
Other assets 3,100,846
liabilities Total Assets 24,161,647
Borrowing 1,247,152
Trade and other payables 898,942 liabilities
Other liabilities (Including short term borrowings) 1,682,858 Borrowings -
Total Liabilities 3,828,952 Trade and other payables 4,822,707
Total Equity 2,794,785 Other liabilities (Including short term borrowings) 6,234,151
Total Liabilities 11,056,858
income statement Total Equity 13,104,789
Revenue 5,503,117
Profit before Tax 3,951,943 income statement
Profit after Tax 2,445,537 Revenue 10,026,884
Profit before Tax 1,478,793
Profit after Tax 1,471,756

Financial year ended December 31, 2022, audited accounts of Engro Enfrashare (Private) (iii) Sources of funds to be utilized for investment and where the investment is intended to be made
Limited: using borrowed funds. (I) Justification of investment through borrowings from where loans or
advances will be given. (II) Detail of collateral, guarantees provided and assets pledged for
Amount in thousands obtaining such funds; and (III) Cost benefit analysis.
assets The Company intends to use excess liquidity/banking lines/security available to it to provide the
Property and equipment 34,242,023 requisite financing to the aforementioned associated companies.
Right of use assets 10,675,130
Long term deposits and other receivables 2,150,710 Additionally, if the Company has un-utilized overdraft lines, it may opt to avail such lines to
Other assets 11,857,434 provide the required financing. For this, the Company’s responses to the queries raised are as
Total Assets 58,925,297 follows:
liabilities (I) Justification – the associated companies will pay a mark-up rate which is not lower than the
Borrowings 24,062,739 borrowing cost of the Company;
Trade and other payables 6,281,710 (II) Security – the Company secures its overdraft lines by providing a ranking charge over
Other liabilities (Including short term borrowings) 15,115,120 movable assets (excluding long term investments) and pledging shares of its investments in
Total Liabilities 45,459,569 listed subsidiaries; and
Total Equity 13,465,728 (III) Cost benefit analysis – the Company will charge the associated Companies a mutually
agreed mark-up rate, which will improve the profitability of the Company;
income statement (iv) Salient features of the agreement(s), if any, with associated company or associated
Revenue 10,589,362 undertaking with regards to the proposed investment:
Loss before Tax (788,215)
Loss for the year (253,112) As detailed above, each financing facility will be provided on an arm’s length basis.
(vi) in case of investment in relation to a project of associated company or associated undertaking (v) Direct or indirect interest of directors, sponsors, majority shareholders and their relatives, if
that has not commenced operations, following further information, namely: any, in the associated company or associated undertaking or the transaction under
consideration:
None
The sponsors, majority shareholders and their relatives and directors of the Company have
(b) General disclosures no interest in the matter. However, the following directors on the Board of Directors of the
Company are also directors of the associated companies:
(i) Maximum amount of investment to be made:
Engro Engro Engro
Name of Associated Company Amount in PKR Fertilizers Polymer & Chemicals Enfrashare
Limited Limited (Private) Limited
Engro Fertilizers Limited 12 billion
Engro Polymer & Chemicals Limited 7 billion Ghias Khan Ghias Khan Ghias Khan
Engro Vopak Terminal Limited 2 billion Shahzada Dawood
Engro Elengy Terminal (Private) Limited 4 billion
Engro Powergen Qadirpur Limited 2 billion
Engro Enfrashare (Private) Limited 2 billion (vi) In case any investment in associated company or associated undertaking has already been
made, the performance review of such investment including complete information/justification
for any impairment or write offs:
(ii) Purpose, benefits likely to accrue to the investing company and its members from such
investment and period of investment: PKR 1 billion is outstanding against a short-term loan extended to Engro Fertilizers Limited
under the previous Shareholders’ approval dated April 24, 2018. The outstanding balance,
This will enable the Company to lend to its associated companies when/if it has access to along with mark-up, will be received during the year ending December 31, 2023. There is
excess funds/banking lines/security, and the associated companies require the same. Each no impairment or write-offs in this facility.
facility will be provided on an arm’s length basis and will be done in a way which benefits the
Company’s shareholders. The period of investment is 1 year, renewable for 4 further periods of
1 year each.

(vii) any other important details necessary for the members to understand the transaction: (vi) Repayment schedule and terms and conditions of loans or advances to be given to the
associated Company or associated undertaking:
None.
Facility granted for a period of 1 year, renewable for 4 further periods of 1 year each. The other
(c) In case of investments in the form of loans, advances and guarantees, following disclosures in terms are mentioned above.
addition to those provided above are:
(i) Category-wise amount of investment:
Financing limits for each associated company is as follows:
Name of Associated Company Amount in PKR
Engro Fertilizers Limited 12 billion

Engro Polymer & Chemicals Limited 7 billion
Engro Vopak Terminal Limited 2 billion
Engro Elengy Terminal (Private) Limited 4 billion
Engro Powergen Qadirpur Limited 2 billion
Engro Enfrashare (Private) Limited 2 billion
(ii) Average borrowing cost of the investing company, the Karachi Interbank Offered Rate (KIBOR)
for the relevant period, rate of return for Shariah-compliant products and rate of return for
unfunded facilities, as the case may be, for the relevant period:
The Company did not have any short-term borrowings as at December 31, 2022. The 3-month
KIBOR as at December 31, 2022 was 17%; the Company did not invest in any
Shariah-complaint instruments in 2022. For unfunded facilities, bank rates are in the range of
0.7% to 1.0% per annum.
(iii) Rate of interest, mark up, profit, fees or commission, etc, to be charged by the investing
company:
The rate of interest, mark-up, profit, fees or commission to be charged by the Company will be
higher than or equal to what the Company must pay if it borrows similar facilities. Where it has
no such facilities, the associated companies will be charged rates which are greater than or
equal to market rates of such facilities. Each financing facility will be provided on an arm’s length
basis.
(iv) Particulars of collateral or security to be obtained in relation to the proposed investment:
No security is obtained since the Company is the largest shareholder/joint venture partner in
the associated companies. The Company and its associated companies are confident that any
financing arrangement will be repaid.
(v) If the investment carries conversion feature, i.e., it is convertible into securities, this fact, along
with terms and conditions including conversion formula, circumstances in which the conversion
may take place and the time when the conversion may be exercisable:
No conversion feature.

sustainable community livelihoods
impact
Our health and infrastructure-related initiatives include 5 grocery shops and
goat farming projects each and new campaigns to generate access to safe
drinking water (RO plants), sewerage schemes and the installation of solar
lights and public benches at various locations in the country.
training and education

Capacity development is at the forefront of all learning interventions at Engro
Foundation. This year, we continued providing top-quality, free-of-cost
At Engro, we remain aware that the impact of our actions extends well beyond the boardroom. As
education to 8,800+ students in 38 schools across Sindh and Punjab. Our
such, we strive to create long-term social capital through robust corporate governance, in line with our
education program includes 18 adopted schools, 4 TCF schools, 15 katcha
brand promise of Enabling Growth. For us, maintaining the trust of our stakeholders is of utmost
schools and 1 NGO-run (Sahara) school. Furthermore, an MoU has been
importance. Hence, we continue to do business with the highest standards of integrity. We are fair and
signed with the Malala Fund to promote Science, Technology, Engineering,
transparent and encourage our stakeholders to follow suit.
Arts, and Math (STEAM).
As a socially-and-environmentally-conscious entity, Engro aims to improve the lives of all Pakistanis
Additionally, our first digital micro-school with Teach-the-World-Foundation –
through its investments in healthcare, capacity building, and community development. Engro
an EdTech solution for out-of-school children – is going steady and an
Foundation – our single CSR arm that works with all Engro Group Companies – channels philanthropic
agreement for another micro-school near the TDF Magnifiscience Centre in
capital into potential solutions for some pressing issues that exist within our value chains. Access to
Karachi has already been signed, with operations set to commence in early
medical assistance, education, skills development, and technical training, to name a few, remain Engro
2023.
Foundation’s focal points and help us ensure that the benefits of our operations are received by all.
In much the same vein, skills development is core to Engro’s vision for the
hussain dawood pledge future. Our Technical Training College – the first Polytechnic institute offering a
The Hussain Dawood Pledge focuses on disease prevention and treatment by Diploma in Associate Engineering – currently has 346 students enrolled in a
training healthcare practitioners and investing in patient care. Recently, under 3-year program. At the same time, Tech-Karo – a digital skills development
the Pledge, Patient Aid Foundation Jinnah Postgraduate Medical Centre and initiative – is helping create a pipeline of women in technology. Over 500
Aga Khan University Hospital were allocated PKR 526 million and PKR 518 students are expected to graduate, of which 65% are young women from
million respectively. underserved communities trained in freelancing and e-Commerce. About 25
new companies have been onboarded as placement partners and 20+ new
Our partnerships under GoP’s Ehsaas Amdan Program, through the Pakistan mentors and 35+ capstone projects introduced.
Poverty Alleviation Fund (PPAF), i.e., a dairy development project in Toba Tek
Singh, is also near completion. Asset transfers of cattle to 85 ultra-poor, along i am the change (IATC)
with feed packages, have been done, while Livestock Extension trainings and A flagship program launched by Engro Foundation, IATC aims to recognize
micro dairy enterprises are in progress. local change agents who are working to enable positive, meaningful, scalable,
and sustainable change in Pakistan. The IATC Awards 2022 offered PKR 2
healthcare million to two individuals and/or organizations with an aim to help winning
Engro Foundation currently runs numerous OPD clinics around its industrial projects be scaled up for broader impact.
network, thereby helping the sick in marginalised communities. Altogether, our
Daharki, Qadirpur, Sukkur, and Karachi clinics catered to 100,000+ patients in flood relief efforts
2022 alone, while the Artificial Limbs Centre, Rabies Centre and Snake Bite In light of the recent floods, Engro Foundation donated PKR 45 million in cash
Centre treated 500+ patients, 1,000+ patients and 7,000+ patients and kind to various entities working for immediate relief. This was
respectively. Also, nearly 2,500+ hepatitis vaccines have been administered in supplemented by extensive ration distribution drives at different plant sites and
Daharki, 262 patients are undergoing treatment, and 213 have been treated. animal vaccination camps in partnership with the local government.

biodiversity conservation Engro’s environmental initiatives are not limited to greenery and carbon
Since many of our businesses fall near coastal communities, directly or neutrality. The Group is promoting circularity through the Circular Plastics
indirectly, the Foundation has taken on the responsibility of creating alternate Program -- a collaboration with Karachi School of Business and Leadership
income streams for hard-up fishing communities and educating them on (KSBL), Akhtar Hameed Khan Memorial Trust (AHKMT), and COMSATS
sustainable fishing practices, in collaboration with WWF Pakistan. As such, University Islamabad to establish the Circular Plastics Institute. The aim is to
various capacity-building workshops have been held for 40 local fishermen research and implement sound waste management and encourage recycling.
and 25 officials of the Sindh Coastal Fisheries Department and Marine
Fisheries Department, focused on data collection through an android Engro is also developing a Waste Management Pilot with AHKMT. Under
mobile-based application in offshore and coastal waters. Impact Investments, it has signed a JV with social entrepreneur Wali Khanani
whereby the latter will invest PKR 6.1 million into the business, Resin8, through
Recently, we have signed a 5-year commitment to protect one of the most funding from Engro Polymer & Chemicals Limited.
unique, indigenous species of our region: the blind dolphins of River Indus.
Baseline survey data has been collected for dolphin mortalities and a 3-day Our Sustainablity Report offers program-wise data for all of our social
Technical Workshop was held in October 2022 to highlight human impact on investments.
freshwater ecosystems. Scientists, NGOs, and policymakers from
Bangladesh, Cambodia, China, Indonesia, Myanmar, Nepal, Netherlands, UK, diversity, equity, and inclusion (DE&I)
and Pakistan attended the workshop and discussed an Asia-wide strategy to Engro recognises the sheer potential that lies in its people. They, with varied
protect the endangered animals. skills, backgrounds, and experiences, are our greatest collective asset.
Through dedicated Diversity, Equity & Inclusion (DE&I) campaigns, we aim to
The event ended with the signing of The Islamabad Recommendations – a ensure that the talent at Engro is comprised of stellar individuals from all walks
series of actions relating to inter and intra-state coordination, law enforcement, of life. Engro is a proud supporter of women leadership and strives to provide
awareness and initiating stronger outreach efforts with frontline river its women employees a respectful and balanced work environment for them
communities. to thrive.
agricultural value chain

Engro aims for recruitment efforts to reflect a 50% gender ratio.
The Chili Value Chain Project is a prime example of Engro’s commitment to
food security. Located primarily in the Mirpurkhas and Umerkot districts, with
an office in Kunri, the chili capital of Pakistan, the aim is to revive the traditional
variety of chili (longi or dandi-cut) with co-funding from USDA, through 252 141
Winrock. As of now, the project is in the training phase, with 450 men and 480
women farmers already trained.
environmental stewardship Percentage of Percentage of

permanent contractual
Throughout 2022, Engro accelerated its sustainability agenda by redirecting women employees: women employees:
its resources toward projects designed to mitigate environmental risks. A great
example of this is our recent agreement with WWF Pakistan to conduct 10.28%* 20.46%*
widespread afforestation and reforestation. Launched in 2022, nearly 350
acres of barren land have already been re-planted on university campuses
across the Country, including Fatima Jinnah Women’s University in Islamabad. 2,452 689
Regular meetings are being held in KPK, Punjab, and Balochistan to identify
potential new plantations and local communities that may help take the project
further. Third-party verification of carbon sequestration is also in the works so
that certified emission-reduction may be claimed.

36 84 we thrive!
167
In March 2022, ECORP HR arranged a variety of networking opportunities for
women on the occasion of Women’s Day. More than 200 of them participated
in activities such as:
Total no of
Total no of
Women Total Women Cycling
Women Hires
Promotions Employee Clay therapy
22.39% Turnover Making leather journals
9.76%
Heritage photo walk - Super Savari
Self-defense classes
Financial wellness session
Yoga/meditation
746 369 560 Horse riding
*As of December 31, 2022 Art therapy
Drum circles
Function-wise split of women employees (permanent + contractual)
break ke baad (BKB)
Technical functions [Production/Engineering] – 4.07% 4.07% One of our trailblazer intiatives is a 12-month returnship program designed to
10.26% 7.37%
Sales/Commercial – 7.37% increase employability of women looking to resume work after mid-career
breaks. The program has a flexible working model which offers associates
Marketing – 57.69% 20.79% full-time employment, part-time employment and flexible working hours.
57.69%
Administration – 12.43% Break Ke Baad seeks to induct applicants with at least 3 years of prior
Supply Chain – 7.9% experience, after a gap of at least 2 years. In 2022, 800+ applications were
21.2% received and 14 BKB Associates were hired across Engro. This year, a BKB
Human Resource – 38.7% Associate has also been placed at our Thar site for the first time.
Finance – 22.66% 12.43%

diversity, equity & inclusion (DE&I) leaders program
The Diversity, Equity & Inclusion (DE&I) Leaders Program equips employees at
IT – 21.2%
all levels with the skills and tools necessary to inculcate a culture of inclusion
22.66%
Governance [Legal & Compliance] - 20.79% 7.9% across the Company. A key part of the program is studying various forms of
exclusion and discriminatory behaviours common in office spaces, and the
Public Affairs – 10.26% adverse effects they may perpetuate on employee productivity.
38.7%
Engro’s DE&I Leaders Program has been designed on a sustainable model
that features in-house volunteer trainers (DE&I Ambassadors) to ensure Engro
employees undergo comprehensive and customized sensitization training.
women-friendly policies This year, over 110 employees volunteered to be DE&I Ambassadors and took
the 3-day DE&I Ambassador Train-the-Trainer certification, in collaboration
Engro enables women employees by offering various commute facilities, including in-house carpooling
with Carnelian. These certified DE&I Ambassadors will now roll out the
option and a partnership with Careem. It also offers local and international travel and accomodation for
program across various Engro locations, in different functions and levels.
all permanent women employees and trainees with children up to a certain age.
Engro also offers its women 6 months of paid maternity leave and its men 15
days of paid paternity leave to support their partners at home. We have a
daycare for children between 4 months to 6 years.

As a way forward, our subsidiaries have also been working hard to promote other initiatives
DE&I across the board. Some of the many other related Throughout 2022, Engro undertook several sports-related projects to
initiatives/achievements from this year included: train and so, mobilize the Pakistani youth to contribute to our
communities and a shared future. These included:
engro fertilizers
Women's Wellness Campaign for mental health engro cricket coaching project
“Today’s Women Shaping Tomorrow’s World” campaign for With an aim to develop cricket at the grassroots level, Engro joined
women entrepreneurs hands with the Pakistan Cricket Board (PCB) to launch the Engro Cricket
Resilient Women Experiential Learning Program for Coaching Project-part of the PCB Pathway Cricket Programme. Under
team-building and skills-development this commitment, high-performing foreign coaches are training 100
Trainer’s Club to develop women leadership junior cricketers (aged 13 to 19 years) in various disciplines related to the
Self-defence trainings with The Method sport, such as fast-bowling, spin bowling, fielding, batting, and
power-hitting.
engro energy
Women’s Entrepreneurship Day in-house bazaar engro volleyball development program
Financial Wellness for Women training Engro partnered with the Pakistan Volleyball Federation on the Engro
Volleyball Development Program wherein a National Training Camp was
engro polymer & chemicals set up for qualified foreign coaches to train budding talent. The goal is
First-ever woman supervisor hired in Lab and Customer that, one day, the national Pakistan Volleyball Team will bring home
Support department Olympic Gold.
Graduation of first cohort of Persons with Disabilities (PWD)
interns engro football training program
Breaking the Glass Ceiling Program To convert raw talent into world-class footballers whilst investing in our
Best Case Study Award from the International Labour communities, Engro has been an official sponsor for Karachi United (KU)
Organization at National Women for the past 2 years. This collaboration boosts KU’s outreach programs
and 11 Centers of Excellence in inner-city locations that provide free
engro vopak & elengy terminals football coaching, education, and health assistance to more than 1,000
Inclusion & Diversity Network comprising change ambassadors boys and girls. The Engro Football Training Program will produce a
from Vopak AME division to educate employees and consistent pipeline of players to represent the club at national and
create/sustain a culture that celebrates differences international levels.
Sustainable Coast Program for better fisheries management to
ultimately reduce pressure on marine ecosystems through engro mind sports program
training, technology and awareness Recognizing the role of mind sports in children’s cognitive development,
Engro and the Mind Sports Association of Pakistan have partnered to
promote chess, bridge, and scrabble and related workshops,
tournaments, and inter-school championships across the Country. In
addition, a Child Prodigy Program has been established to encourage
outstanding young talent, especially girl prodigies, to participate in
regional tournaments.

message
chairman’s and vice chairman’s Institute, Sustainable Coasts Initiative, and Indus River
Dolphin Project. Engro is also a signatory to the World
Economic Forum’s ESG Commitments, and supporter
Engro remains committed to further the tremendous
growth opportunities that exist around us, helping build
a prosperous future for all. The spirit of Pakistan and its
of King Charles’ Terra Carta – a charter under the people is one of determination and resilience, giving us
Sustainable Markets Initiative, both of which prioritize a great cause for optimism. Working as one nation is
nature, people, and the planet in global value creation. the need of the hour to persevere and overcome the
obstacles ahead.
In these challenging times, Engro has stayed true to its
vision and commitments by taking calculated risks, and
responding to market changes with vigilance. It
emerged more resilient and reinvigorated, and our
Dear Shareholders, confidence in the Company is reflected not only in
numbers but also in the trust that you, as shareholders,
On behalf of the Board of Directors of Engro Corporation that has a significant reliance on indigenous and continue to place in us as stewards of your capital.
Limited, we are pleased to present to you our Annual renewable inputs.
Report for 2022. 2022 has been a year of unprecedented challenges,
Ensuring adequate crop yields and production for food and we would like to commend Engro’s leadership for
This past year, the world witnessed a multitude of events security, Engro Fertilizers played its part by ensuring its unwavering determination in navigating the Company
that slowed down the economy: geopolitical tensions grew, stable fertilizer supply, and remains committed to further through these strenuous times. We would also like to
climate change impacts intensified, and COVID restrictions improving the agricultural value chain. The Company take this opportunity to express appreciation to our
continued in China. Rising inflation, an energy crisis, and understand that it is crucial to do so, especially after customers, partners, service providers, regulators, the
supply chain disruptions have combined to produce the global supply chain disruptions and the floods Government of Pakistan, and all our stakeholders, for
most challenging set of global circumstances. destroying 45% of croplands. their trust in the Board of Directors to steward the vision Hussain Dawood Shahzada Dawood
of the Organization. Chairman Vice Chairman
Pakistan has been impacted more acutely by soaring food Standing by its commitment to contribute towards
and fuel prices, leading to inflation hitting a 50-year high. telecommunication infrastructure, Engro Enfrashare
Almost 15% of the population was directly impacted by the increased its footprint in the connectivity space by
floods, and the rest of the Country reeled from basic grain expanding this infrastructure, while maintaining a market
shortages and lack of economic opportunity. The share of over 50% among independent tower
unprecedented floods and their aftermath only added to the companies. Digital divide through poor access to
challenge as the value of the Rupee plunged and foreign connectivity is a prevalent problem in Pakistan that was
reserves dwindled precipitously. exacerbated due to the floods, impacting the Country’s
critical telecommunication infrastructure. With a vision to
Despite this macroeconomic uncertainty, Engro’s business create new avenues for human development, Engro’s
model remained resilient, and we stayed committed to effort in this space will pave a path for up-skilling,
continuous growth and expansion with a vision to further enabling the Country’s workforce, especially its youth, to
contribute to Pakistan’s GDP. Some of our businesses, like become globally competitive through access to
Engro Fertilizers, showed great resilience, and built upon an information and technology, along with the
indigenous supply chain that survived the vagaries of the accompanying benefits.
exchange rate and global market variations.
Our people continue to be our key driving force. Engro’s
As a responsible corporate enterprise, Engro strives success is built on their skills and creativity, and we are
relentlessly in its pursuit to solve some of the most pressing committed to human development based on Character
issues of our time, including energy security, food security, and Good Manners (CGM), ensuring that we have the
connectivity and human development. This drive in our best possible talent, from all backgrounds, driving our
overall strategy will continue as we envision to create value growth and innovation. The Company continued to
addition in our portfolio by augmenting synergy in the invest in training and development of our people
Group’s overall performance and profitability. through the Engro Leadership Academy. Talent
development programs remain a cornerstone of the
As part of its commitment to making energy available and Engro employee experience. In 2022, the Company
affordable, Engro Energy continued full capacity extraction continued to invest in Diversity, Equity & Inclusion
from its Thar mine, and achieved COD for Phase II to programs like Break Ke Baad, Uraan, TechKaro, and
enhance capacity. Engro Elengy Terminal also operated at ENable All, to name a few. Exciting and enriched
capacity, fulfilling 15% of Pakistan's natural gas experiences lead to dynamic ideas and innovation, and
requirement. These achievements have been critical in we remain committed to further developing an
enabling Pakistan to gain access to energy, which is the empowered learning organization.
cornerstone of any modern economy. Furthermore, in our
pursuit to support green energy, the Company announced Engro realizes its responsibility towards environmental
its first 400MW hybrid wind and solar project. We are sustainability, and giving back to society has always
especially excited about this project since it reinforces our been one of the important cornerstones. It has focused
aspiration to see the Country transition to an energy mix on milestone projects such as the Circular Plastics

enabling growth
president’s
message
has been incorporated in the 2022 results. Pakistan for excellent investor relations. We also received, among
others,10 Global Diversity, Equity & Inclusion Benchmark (GDEIB)
Engro Eximp FZE, Engro’s global trading arm, initiated Awards by HR Metrics, were named Most Outstanding Company
commercial activity in UAE with the vision to consolidate the in Pakistan in the Industrials Sector and in the Small/Mid Caps
Group’s trading activities under one roof and achieved a Sector in Asiamoney’s Outstanding Companies Poll, and received
turnover of approximately USD 215 million. In addition to this, the United Nations Global Compact Sustainability Award.
FZE is laser-focused on enabling the reach of Pakistani
products across the globe. I would like to extend my gratitude to our Chairman, Vice
Chairman, and the Board of Directors for navigating us through a
At Engro, there is a continued focus on building the challenging year. I would also like to thank the Government of
capabilities of our people. The Company launched its Talent Pakistan for facilitating us, and all our stakeholders for reposing
Development Program, facilitating employees to manage their their trust in us.
career trajectories. We also remain committed to creating an
Dear Shareholders, inclusive and diverse workplace. Engro introduced its flagship To the entire Engro family, I commend each one of you for an
‘Break Ke Baad’ program aimed at facilitating women’s return astounding level of resilience and commitment to excellence –
sales of USD 21 million and registered a record revenue of
to the workforce after a career break. The Company will thank you.
I am pleased to present to you the Annual Report of Engro Corporation PKR 82 billion compared to PKR 70 billion – a 17% increase.
continue to build on programs and initiatives that support and
Limited (ECORP/Engro/Company) for the year ended December 31, The PAT stood at PKR 11.7 billion against PKR 15.1 billion in I look forward to a prosperous 2023.
augment employees’ careers.
2022. 2021, mainly due to the Super Tax impact of PKR 1.5 billion
and lower PVC prices. On sustainability, Engro is finalizing its sustainability reporting in
The year 2022 was one of economic fluctuations and rising line with WEF’s Stakeholder Capitalism Metric pledge. In
geo-political tensions. Global economic growth tapered from 6% Mining operations and Engro Powergen Thar ensured a supply
addition, we are charting our course to become agents of
in 2021 to 3.2% in 2022, while inflation remained higher than seen of consistent and affordable energy to the Country. Phase II of
change to tackle any future climate events.
in several decades. The cost-of-living crisis, tightening financial the SECMC mine expansion was successfully completed,
conditions in most regions, Russia’s invasion of Ukraine, doubling its existing mining capacity. Moreover, SECMC and
Engro has always believed in the immense potential of
commodity price volatility, and the energy crisis, all contributed to the Government of Sindh approved Phase III of the expansion.
Pakistan and endeavours to uplift the skills of our talented
a bleak economic landscape. The business continues to work extensively to gain a foothold
youth, especially in sports and education. Our youth
in the renewables market. Engro Energy is currently evaluating
development initiatives focus on promoting sports at the
In Pakistan’s case, dwindling foreign exchange reserves, the development of Pakistan's first hybrid 1 GW renewable
grassroots level. Our programs include Engro Mind Sports
Ghias Khan
inflationary pressures, and a rapidly devaluing Pakistani Rupee energy (RE) park. The project has the potential to provide President & CEO
Program with the Mind Sports Association of Pakistan, Engro
posed serious challenges. The situation was further exacerbated approximately USD 400 million in import substitution.
Cricket Coaching Project under Pakistan Cricket Board’s
by devastating floods that affected over 33 million people,
Engro Vopak witnessed growth while providing storage Pathway Cricket Program, Engro Volleyball Development
submerged 9.4 million acres of cropland under water, and gave a
solutions for bulk liquid chemicals and LPG. Engro Elengy & Program with Pakistan Volleyball Federation, and Engro
staggering blow to an already fragile economy, with total losses
Vopak Terminals successfully marked 25 years of strategic Football Training Program with Karachi United. In 2022, 8
amounting to USD 30 billion.
partnership in 2022 – a testament to years of safe operations national chess events with 20 students and 3 international
Given the circumstances, for Engro, 2022 turned out to be a year and superior HSE standards. The Elengy Terminal played a chess events between Turkey, Azerbaijan, and Pakistan, with
of resilience during which our business performance remained critical role in alleviating Pakistan’s energy shortage by 300+ participants, took place under the Engro Mind Sports
stable due to a diversified portfolio and shareholder value was enabling supply of approximately 15% of the Country’s total Program. Over 100 students were inducted this year into the
preserved on account of the Group’s rapid adaptation to changes gas consumption. Engro Cricket Coaching Project, being trained by notable
in market conditions. The Company posted a consolidated Profit international coaches. The Engro Football Training Program
after Tax (PAT) of PKR 46.1 billion for 2022 – down 12% from Engro Enfrashare performed exceptionally well through saw thousands of young athletes train with and play at Karachi
2021. This dip is attributable to the Super Tax charge of PKR 7.7 efficient tower deployment and operational efficiencies and has United, where young footballers from all walks of life unite
billion and one-off adjustment of the EPTL Tariff True-Up. On a continued to expand its national footprint. The business added under one passion. Finally, volleyball saw a major comeback in
standalone basis, our profit stood at PKR 21.2 billion vs PKR 18.5 1,083 new towers, taking the total to 3,329 tower sites, Pakistan when we hosted the Engro Central Asian Volleyball
billion in 2021, translating into Earnings per Share (EPS) of PKR catering to all four Mobile Network Operators. In addition, 49% Championship -- an international tournament.
36.8 for 2022. of Engro Enfrashare’s business sites were solarized to ensure
energy optimization. As one of Pakistan’s premier conglomerates, we will continue
During the fiscal year, the agricultural sector recorded a growth of to contribute towards enabling the recovery of our economy at
4.4%. However, the second half of the year was challenging due FrieslandCampina Engro continued its growth momentum in this pivotal juncture. Engro is confident that, with effective
to the severe floods in the Country. Engro Fertilizers (EFERT) key business segments, dairy and ice cream, despite policy measures, the economy will regain momentum in the
contributed to food security in Pakistan and achieved an import economic headwinds. The business posted a PAT of PKR 2.5 medium-term and grow through increased exports, import
substitution of USD 1.3 billion, saving the Country precious foreign billion against PKR 1.8 billion in 2021, on the back of a top-line substitution, and potential foreign investment.
exchange. Despite record high urea prices internationally, EFERT increase of 41% vs last year.
Engro is well-positioned to play a significant role in addressing
ensured the availability of locally-produced urea to farmers at a
Engro Eximp Agriproducts remains a key contributor to the some of Pakistan's pressing issues. We are committed to
discount of approximately 66% compared to international prices.
national foreign exchange reserves, with a focus on exports. expanding business operations across our 4 key verticals and
EFERT posted a revenue of PKR 157 billion versus PKR 132 billion
The business generated a revenue of USD 31 million through exploring new opportunities for growth, with a focus on
in 2021 and PAT stood at PKR 16 billion versus PKR 21.1 billion
the export of rice, while continuing to develop a foothold in the exports and internationalization, while maintaining a resilient
last year, mainly due to the levying of Super Tax amounting to PKR
local market. While revenues were strong, the Company had and agile business model.
3.8 billion.
to mark an inventory write-off to address a discrepancy in
inventory in the accounting books at the warehouse and Our efforts for excellence this year were lauded at various
Engro Polymer & Chemicals achieved the highest-ever PVC sales reassess the value of the rice plant in lieu of increase in steel national and international forums. Engro Corporation was
of 242 KT, maintaining domestic market leadership with a market prices and Rupee devaluation. The net impact on profitability recognized by the Pakistan Stock Exchange as one of
share of 95%. The business also recorded its highest-ever export is negative PKR 600 million. This loss is one-off in nature and Pakistan’s Top 25 Companies and by the CFA Society of

enabling growth
awards &
recognitions Risk Alive Inspire Award for Operational Risk Excellence
AA long-term rating and A1+ short-term rating (PACRA upgradation)
Top 10 Best Practice Case Studies Award by ILO United Nations Project on Women
Empowerment
Engro Corporation
Engro Vopak & Elengy Terminals
10 Global Diversity, Equity & Inclusion Benchmark (GDEIB) Awards by HR Metrics
United Nations Global Compact (UNGC) Sustainability Award 13 Global Diversity, Equity & Inclusion Benchmark (GDEIB) Awards by HR Metrics
Most Outstanding Company (Industrial sector) in Pakistan at Asiamoney 2022 Asia's Outstanding Multiple Gender Diversity Awards at Gender Diversity Awards by Pakistan Business Council
Companies Poll Awards for 4th consecutive year 7th International Awards on Environment, Health & Safety by The Professionals Network
Pakistan's Most Outstanding Company (Small/Mid-Caps sector) at Asiamoney 2022 Asia's Honourable Mention at Gender Diversity Awards
Outstanding Companies Poll Awards for 4th consecutive year Team of the Year Award (AME region) by Royal Vopak
PSX Top 25 Companies Award Golden Step Award by Vopak Asia and Middle-East Division for Q1
Best Investor Relations Award (runner up for 4th consecutive year) at CFA Society's 19th Annual
Excellence Awards Engro Eximp Agriproducts
Recognizing Gender Diversity Award (runner up) at CFA Society's 19th Annual Excellence Awards Generated USD 31 million in exports for Pakistan
3rd largest basmati rice exporter from Pakistan
Engro Fertilizers 'AA rating' by the British Retail Consortium (BRC) for 6th consecutive year
12 Global Diversity, Equity & Inclusion Benchmark (GDEIB) Awards by HR Metrics
Best in Country Award by British Safety Council UK Engro Energy
Best Corporate Report Award 2021 (3rd position) and Best Sustainability Report Award by ICAP and Silver Prize at Women Tech Network Awards (Diversity & Inclusion Best Practices category)
ICMA Pakistan 12 Global Diversity, Equity and Inclusion Benchmark (GDEIB) Awards by HR Metrics
Second Most Inclusive Company 2022 (last 6 cumulative years)
PSX Top 25 Companies Award (5th position)
Sindh Engro Coal Mining Company
RoSPA Fleet Safety Gold Award (for 2nd consecutive year)
RoSPA Health and Safety Gold Award for achieving zero TRIR International Safety (Merit) Award by British Safety Council
Amir S Chinoy Corporate Excellence Award at Management Association of Pakistan’s 37 Corporate National Energy Globe Award for Thar Million Trees Project
Excellence Awards (for 3rd consecutive year) Silver award (Environmental Sustainability Program category) by Gulf International Sustainability
Best ECommerce App, Best Mobile App and Best Digital Innovation awards (Humsafar App) at Awards (GSA)
Pakistan Digital Awards 2022
Best ESG Reporting Award at CFA Society's 19th Annual Excellence Awards Engro Powergen Qadirpur
Best National Taxpayer (Manufacturing sector) by Rawalpindi Chamber of Commerce and Industry
Best Presented Annual Report Award by South Asian Federation of Accountants (SAFA) in
(RCCI)
'Power' and 'Energy' categories (joint winner)
Employer of Choice – Gender Diversity Awards by PBC and IFC (3rd position)
Best Presented Annual (BPA) Report Awards (Integrated Reporting) by South Asian Federation of
Accountants (SAFA)
Engro Powergen Thar
British Safety Council International Safety Award (Distinction) for outstanding HSE systems and HSE World’s Top Coal Plants by POWER Magazine in Coal-Fired category
performance in Daharki ISO 14001 certification for Environmental Management
Dubbed ‘Coal Power Project of the Year’ by Asian Power Awards in Silver category
Engro Polymer & Chemicals International Safety Awards
Bronze Award at the first-ever NEPRA CSR Awards
PSX Top 25 Companies Award
11 Global Diversity, Equity, & Inclusion Benchmark (GDEIB) Awards by HR Metrics
Account Response Rate Leader Award from Customer Gauge Survey
Engro Enfrashare
Gender Diversity Award at Gender Diversity Awards by Pakistan Business Council Certificate of Appreciation from Ufone for Disaster Recovery during floods
Customer Gauge Awards Certificate of Appreciation from Ufone for Network Excellence, maintaining KPIs above targets and
3 CSR Awards at the 11th Annual Corporate Social Responsibility Summit & Awards by The SLA exceed for Q1 and Q2
Professional Network Certificate of Appreciation from Telenor for maintaining KPIs and SLA exceed in Q1 and Q2
Best Corporate Report Award (2nd position) by ICAP and ICMA Pakistan (above 99.5%)
Best Presented Annual Report at SAFA Awards (joint Silver award) Certificate of Appreciation from Jazz on maintaining USF Network Availability (above 99.5%)

our
communities
Engro is fundamentally committed to creating shared value and
believes that, for any project to have lasting impact, it must be
connected to a larger value chain. Engro Foundation, our single
CSR arm, was born from this passionate belief that only with a
purpose beyond profit do all commercial endeavors find
meaning.
Each entity within Engro is committed to creating sustainable

and meaningful change through wealth creation, food security,
healthcare, education, and environmental stewardship. We are
tirelessly working towards a shared future through our
celebration of grassroots changemakers in Pakistan through
the I Am The Change Awards, individual philanthropic projects
undertaken by our businesses, and our sustainability initiatives
in the areas of biodiversity, plastic waste, and carbon neutrality.
With a dream of an uplifted society with health and education

for all, Engro aims to maximize the social and economic impact
of our developmental work through an inclusive business
model that targets low-income communities where its
businesses are based. By innovatively providing these
communities with opportunities of skills development and
livelihood, we create an ecosystem of employment, functional
markets, products, and services that spur economic growth in
targeted areas and encourage entrepreneurship. This model
enables underprivileged members of our society to emerge as
potential business partners and become vendors, customers,
and employees in our business value chains, enabling growth
for all.
director’s The current account deficit widened to 4.6% of GDP, compared to 0.8% last year, owing to inadequate
report
exports and high reliance on imports. Moreover, political instability in the Country posed further
challenges to the economy, overall. Surrounding all these challenges is the risk of sovereign default due
to drying up of foreign currency reserves. Given the precarious state of foreign exchange reserves,
businesses across Pakistan are facing difficulties on account of varying concerns, including
LC-opening and foreign services procurement.
In response to significant inflationary pressures and imbalances that emerged in the external sector and
financial markets, State Bank of Pakistan (SBP) adopted a monetary policy tightening of 625 basis
points (9.75% to 16%) during the year. In addition, the Government imposed a Super Tax of 4%
The Directors of Engro Corporation Limited (Company) are pleased to present the Annual Report and prospectively, as well as on prior year earnings, and an additional one-time tax of 6% on selected
audited financial statements for the year ended December 31, 2022. sectors retrospectively on 2021 earnings. These measures were taken in an attempt to secure an IMF
bailout plan.
principal activity
The principal activity of the Company is to manage its investments in subsidiaries, associates, and joint On the other hand, the Government has successfully secured commitments of more than USD 9 billion
ventures which are engaged in manufacturing and trading of fertilizer, manufacturing and marketing of in pledges for post-flood recovery from international donors such as Saudi Arabia, World Bank, and the
Chlor-Vinyl products, providing critical telecommunication infrastructure, processing and packaging of European Union. This will help alleviate pressure on Pakistan and contribute considerably to paving the
dairy products, power generation, coal mining, foods, LNG and bulk chemical handling terminal and road to recovery.
storage businesses.
At this juncture, the right mix of fiscal and monetary policies via a stable macroeconomic environment
macroeconomic environment will allow companies to increase economic growth over time and lead to the revival of business
confidence.
global economy
year at a glance
Global economic growth contracted from 6% in CY’2021 to 3.2% in CY’2022, primarily on the back of
the spill-over effects of the Russia-Ukraine crisis and resurgence of COVID-19 lockdowns in China. 2022 was a year of resilience for Engro. Despite economic challenges, Engro Corporation’s
Russia’s invasion of Ukraine destabilized the global economy. The war has intensified geopolitical performance largely remained positive due to its diversified portfolio, barring the impact of Super Tax.
fragmentation and aided a severe global energy crisis. On the back of this, energy markets have The Group rapidly adapted to changes in market conditions, not compromising on growth, and
exhibited volatility throughout the year, resulting in supply-side inflationary pressures. High prices of maintained high utilization levels across businesses.
crude oil, on account of supply shortages, caused a slowdown in oil-reliant economies. Frequent
lockdowns in China under its zero-COVID policy have resulted in disruption of trade flows, which Inflationary pressures were evident across the Group, affecting margins. In response, the Group
further exacerbated the precarious macroeconomic situation. deployed cost optimization measures to ensure long-term sustainability of its operations and
successfully limited its cost push below average inflation of ~20%. Further, effective capital allocation
As a result, global central banks resorted to monetary tightening with interest rate hikes as their primary and Engro’s presence in the critical sectors of the economy has enabled our portfolio to be resilient in
lever to manage the high inflation push. This global monetary tightening and strengthening of the dollar these challenging times, which is hedged against volatility in foreign exchange and interest rates.
has adversely impacted many emerging markets, leading to tightening financial conditions and high
cost of imported goods. With reference to imposition of a 4% super tax on retrospective years’ earnings and additional
discriminatory Super Tax of 6% on selected sectors, the Group appealed before the Sindh High Court
Pakistan’s economy and the matter was decided in its favour. Whilst having the support of our legal and tax advisors, it
The Pakistani economy exhibited a growth of 6% in CY’2022 and gained momentum in post-COVID prudently decided to maintain provision to the extent of the 4% Super Tax.
recovery. However, growth is expected to shrink to 2-3% in CY’2023 due to macroeconomic
headwinds. Catastrophic floods led to a potential damage of ~USD 30 billion, a spike in energy prices During the year, the Company and its subsidiaries achieved various growth and operational milestones:
spurred by the removal of fuel and electricity subsidies, massive depreciation of the Rupee, and a
surge in global commodity prices. This pushed average headline inflation to ~20%. I. Engro Polymer & Chemicals achieved its highest-ever PVC sales of 242 KT with the help of a
PVC expansion of 300 KT and VCM debottlenecking of 50 KT.

II. Phase II of Sindh Engro Coal Mining Company mine expansion was successfully completed,
Business Overview Revenue (PKR in Mn) Profit after Tax (PKR in Mn)
doubling its existing mining capacity to 7.6 MTPA. It achieved COD on October 1, 2022, as per
plan, with an operational availability of 100%, despite heavy rains during the year. Moreover, the 2022 2021 2022 2021
Government of Sindh has approved Phase III of the mine expansion, which is expected to be Fertilizer & Food1 237,576 188,766 17,788 22,903
completed by early 2024. Post-expansion, Thar coal would become the cheapest source of
base load energy. Polymer & Chemicals 82,060 70,022 11,689 15,061
Telecom Infrastructure 9,095 4,489 (253) (669)
III. With the goal to bridge the digital divide and enable inclusion through world-class digital
Energy 83,070 87,525 15,351 14,649
infrastructure in Pakistan, we have made an equity commitment of PKR 21.5 billion towards our
Connectivity vertical, Engro Enfrashare. This will cater to the growing demand for Build-to-Suit Terminals 21,912 17,390 4,874 3,913
Towers. During the year, the business added 1,083 new towers to its portfolio, taking the total 1
includes EFERT, FCEPL and EEAP
operational sites to 3,328 with a tenancy ratio of 1.17x. Now, 50% of our tower sites are
solarized, highlighting a push toward sustainable energy and focusing on optimized energy
margins. Building on this momentum, we aim to have 5,000+ towers by the end of 2024.
IV. During the year, Engro Eximp FZE – Engro’s global trading arm – initiated commercial activity in
UAE with the vision to consolidate the Group’s trading activities under one roof. In addition to
this, Engro Eximp FZE - plans to leverage its position to further the reach of Pakistani products
with third-party contracts across the globe and streamline inflow of goods to the domestic
market.
V. We remain focused on building a sustainable import substitution model and an export-oriented

structure. Our businesses enabled import substitution of ~USD 1.7 billion through indigenous
production of PVC, fertilizers, and coal extraction. We also successfully exported rice, caustic
soda, and PVC resin worth USD 52 million.
business performance review

The Company posted a standalone PAT of PKR 21,196 million against PKR 18,516 million for the
comparative year, translating into an EPS of PKR 36.79 per share. The 14% increase in profitability is
primarily owing to higher interest income, as well as higher dividends from the Polymer, Fertilizer and
Energy businesses which has been partially offset by Super Tax.
The Company's consolidated revenue grew by 14% to PKR 356,428 million against PKR 311,587
million for the comparative year. The consolidated Profit after Tax (PAT) for the year end 2022 was PKR
46,111 million – down by 12% due to Super Tax of PKR 7,151 million and one-off adjustment of EPTL
tariff true up of PKR 2,911 million. The PAT attributable to the shareholders decreased to PKR 24,332
million from PKR 27,942 million in 2021, resulting in an Earnings per Share (EPS) of PKR 42.23
compared to PKR 48.50 for 2021.

engro
fertilizers
Contributing to food security in Pakistan and an import substitution of USD 1.3 billion.
The local agricultural sector has been adversely affected by the current macroeconomic
downturn and severe flooding in monsoon 2022. Urea sales stood at 1,935 KT versus last year’s
record of 2,295 KT, mainly attributable to LTR turnaround at the Base plant during the year.
Engro Fertilizer made history by executing the longest and most complex turnaround in 50 years
with zero TRIR – a testament to the Group’s commitment towards excellence in safety and plant
reliability. The performance of the operation facility is expected to improve in the coming years
Revenue due to greater efficiency following the completion of this reliability project.
(amount in millions) International urea prices softened by ~52% to land at USD 456/T (landed cost equivalent to PKR
6,705/bag) by the end of 2022, due to capacity expansions around the globe. International
phosphate prices decreased to USD 730/T on the back of a slowdown in global demand and
commodity cycle reversal. In the midst of global commodity price volatility, the local fertilizer
PKR industry ensured availability of locally-produced urea to farmers at a discount of ~66% over
157,016 international prices. This enabled import substitution to the tune of USD 4.5 billion in 2022,
wherein Engro Fertilizers’ contribution stood at USD 1.3 billion, equating to 29%.
The Fertilizer business recorded a revenue of PKR 157 billion versus PKR 132 billion in 2021,
primarily driven by an increase in local urea and global commodity prices. The PAT stood at
PKR 16 billion versus PKR 21 billion last year, demonstrating a decrease mainly due to a Super
Tax amounting to PKR 3.8 billion.
High phosphate prices and the impact of floods drove a decline in sales to 333 KT from 366 KT
in 2021.
engro
polymer & Sole producer of PVC resin in Pakistan, providing import substitution and export
opportunities.
chemicals
International PVC prices averaged at USD 1,106/MT during the year, due to supply concerns
resulting from the resurgence of COVID-19 in China. Despite this, supplies to the domestic PVC
downstream market remained uninterrupted due to Engro Polymer & Chemicals’ steady
production. Timely expansion and operational reliability of the plant supported Pakistan in
avoiding USD 134 million incremental outflows in the form of import substitution.
The petrochemical business continued its upward momentum by registering a record revenue
Revenue of PKR 82 billion compared to PKR 70 billion – up by 17%, mainly attributable to higher PVC
volumes and prices. The PAT stood at PKR 12 billion against PKR 15 billion in 2021, primarily
(amount in millions) due to a Super Tax impact of PKR 1.2 billion.
The business recorded its highest-ever domestic sales of 231 KT against 207 KT in 2021,
translating to a market share of 94%. Post serving the local PVC demand, the business also
PKR recorded its highest-ever export sales of 25 KT, including caustic soda exports of 15 KT,
82,060 generating foreign exchange of USD 21 million.

engro
enfrashare
Exceptional performance achieved through efficient tower deployment and operational
efficiencies.
The mobile network industry is undergoing a transformation. Mobile Network Operators (MNOs)
need to enhance focus on customer services, spectrum and associated services. Building and
maintaining telecommunication towers has been an added concern. With a focus on enhancing
efficiency and optimizing tower footprint across Pakistan, Engro ventured into this space with
Engro Enfrashare.
Revenue Being the largest independent TowerCos business, Engro Enfrashare enables MNOs to
(amount in millions) concentrate on their core business by undertaking the telecommunication tower-related capex
and maintaining operational efficiencies through its infrastructural excellence.
In an effort to enhance digital access across Pakistan, Engro Enfrashare continued to expand
PKR its national footprint and achieved a scale of 3,329 tower sites with a 1.17x tenancy ratio,
9,095 catering to all four MNOs of Pakistan. The business captured a market share of 62% in
Build-to-Suit (B2S) tower rollout in comparison to other independent tower companies, leading
to an 2x increase in revenue compared to last year.
The growth potential in the business is further demonstrated by colocation activities witnessed
during the year, with total colocation tenants of 1.17x versus 1.10x in 2021, representing a 6%
increase. The business is well positioned to capture future growth, expected to be driven by an
increase in data usage, localization of smartphone assembling and other policy-level
interventions made by the Government.
engro
energy Addressing Pakistan’s energy concerns by utilizing domestic resources and focusing on
sustainable energy.
Mining operations continued smoothly during the year, supplying coal to Engro Powergen Thar,
Thar Energy and Lucky Electric Power Company. Phase II of the mine expansion was
completed, effectively doubling the capacity to 7.6 million tons per year, with effect from
October 1, 2022. It also enabled import substitution of ~USD 800 million since inception. To
meet the potential increase in demand for energy, the management has committed to initiate
Revenue Phase III of the expansion to enhance capacity to 11.4 million tons per year, approval for which
has been sought from the government of Sindh.
(amount in millions)
During the year, the Thar Power Plant dispatched 3,690 GWH to the national grid, compared to
4,225 GWH last year, and achieved 73% availability as compared to 83% last year. Plant
availability remained low primarily due to an incident in the first quarter. After detailed
PKR inspection and necessary rehabilitation work, both units of the plant successfully came back
83,069 online.
Our Qadirpur Power Plant dispatched a Net Electrical Output of 768 GWH to the national grid,
with a load factor of 41%. Scheduled maintenance outage was undertaken for a major overhaul,
conducted every 6 years. The business posted a PAT of PKR 1.5 billion for the year, as
compared to PKR 1.6 billion in 2021.
engro vopak & elengy
terminals
Engro Vopak witnessed growth while providing storage solutions for bulk liquid chemicals
and LPG. Engro Elengy continued to help alleviate the energy shortage in Pakistan.
Engro Vopak Terminal recorded its highest-ever volumetric increase in chemical handling to
1,331 KT, against 1,280 KT last year. This can be attributed mainly to higher imports of
phosphoric acid and paraxylene, which were offset by lower LPG marine imports of 32% over
last year, driven by the reopening of the Taftan Border.
Revenue Overall profitability of the terminal business was impacted slightly by the imposition of the Super
Tax during 2022. But the business successfully completed 25 years of safe operations without
(amount in millions) lost work or injuries, maintaining exceptional health, safety, and quality standards.
The LNG terminal handled 74 vessels and delivered 219 bcf re-gasified LNG to the SSGC
network, accounting for 13%-15% of the total gas supply in Pakistan, with an availability factor
PKR of 97.6%.
21,912
frieslandcampina
engro FrieslandCampina Engro flourished on the back of strong volumetric sales in both the Dairy
and Ice Cream segments.
FrieslandCampina Engro Pakistan (FCEPL) demonstrated a topline growth of 40%, reporting a

net revenue of PKR 73 billion against PKR 52 billion from last year. Despite an economic
downturn and external instabilities such as steep increases in commodity prices and
depreciation of the Rupee, FCEPL’s agile business model enabled it to thrive in the face of
adversity. The business recorded a PAT growth of 39% from PKR 1.8 billion in 2021 to PKR 2.5
Revenue billion in 2022, due to volumetric growth driven by the expansion of its distribution network.
(amount in millions) FCEPL also intensified its efforts towards rectifying the damage done by the floods, focusing on
animal welfare in Sindh and Balochistan, near its facility in Sukkur and Nara Farm.
PKR
73,473
engro eximp
agriproducts Continued focus on exports
As a key contributor to the national foreign exchange reserves, Engro Eximp Agriproducts
continued its focus on exports. It generated a revenue of USD 31 million through exports of 37
KT rice, versus 24 KT last year, on the back of ease in supply chain disruptions.
The business continued developing its foothold in the local market as domestic volumes stood
Revenue at 11 KT during the period.
(amount in millions) During the year, the management of EEAPL discovered a significant difference between the
inventory balance in the books and the physical inventory available in warehouses. Detailed
analysis conducted by the internal team revealed unsubstantiated postings in the inventory
PKR valuation model. Post investigation, it was concluded that the impact of these differences
aggregate to PKR 2.4 billion and it relates to both the current and prior periods. In the financial
7,085 statement, the impact has been fully recognized in the profit and loss account by the subsidiary
company as per applicable accounting standards.
Management has taken necessary action and developed a corrective strategy to ensure such
instances are not repeated. The Board of Directors reviewed the internal investigation report on
the matter and directed the management to engage a third-party audit firm to conduct a further
detailed review, together with root cause analysis and recommendations, to strengthen controls
and systems.
capital allocation update VII. In line with its strategy of diversification and import substitution, Engro Polymer & Chemicals
During the year, Engro invested across its verticals, thereby creating substantial shareholder value and is progressing with its Hydrogen Peroxide project of ~28 KMT. The project's completion date is
further enhancing the Group’s contribution toward Pakistan’s progress. Some of the many highlights of expected in the third quarter of 2023. This will strengthen the Company's financial position and
the year include: add a key product to its portfolio.
I. Engro Energy, in collaboration with the Government of Sindh, is currently evaluating the 2023 – focus buckets
development of Pakistan’s first hybrid 1 GW renewable energy (RE) park. The project has We are pleased to report our portfolio performance. However, it is important to acknowledge that the
potential to provide ~ USD 400 million in import substitution. Phase I of the project, with a external environment is likely to remain uncertain and may pose challenges in the future. As Engro’s
capacity of 400 MW, is planned to be operational by early 2024, with confirmed land availability. presence is in the critical sectors of the economy, including food and energy, continuity of business
This initiative aims to reduce electricity costs for industrial consumers by approximately 20% operations will remain imperative. To protect and enhance value for our shareholders, we plan to
and support the Government’s goal of increasing the share of renewable energy in Pakistan’s implement a strategy that focuses on proactively managing potential disruptions and diversifying our
energy mix to 30% by 2030. The Company has also been successful in securing interest from operations across different regions.
buyers, as evidenced by the ~670 MW worth of MOUs that have been signed. At the same time,
it is working with policymakers to build a landscape conducive to project execution. Following are some of the key strategic initiatives being pursued by the Group:
II. The Company ventured into the telecommunication infrastructure industry with the goal of • We foresee a razor-sharp focus on optimizing expenses. Our emphasis on cost-efficiency,
enabling telecom access throughout Pakistan and unlocking significant value in the sector. Our caution, and adaptability has enabled us to navigate difficult times. This will entail increasing
subsidiary is well on track to reach its target of 5,000+ towers by 2024. Furthermore, the operational efficiency through process automation, use of technology to monitor spend and
Company is actively exploring new investment opportunities and has recently announced its identifying value pockets in key business divisions.
interest in pursuing mergers and acquisition activities.
• Despite economic headwinds, plant reliability and efficiency have and will remain a priority.
III. The Company has announced a share buyback program of up to 70 million shares, to be Targetted interventions will be proactively taken to secure the wellbeing of our assets.
repurchased until July 23, 2023. The management team, with the support of the Board of
Directors, believes that Engro has the potential to continue creating value for shareholders and • Given the precarious state of foreign exchange reserves, the Group companies devised a
presents a high upside opportunity at current market prices. strategy to proactively secure critical raw material and instruments. This ensured minimal
disruptions at operating facilities and supported margin realization across our portfolio. Our
IV. The Company conducted a comprehensive techno-commercial analysis and FEED to evaluate teams will continue to deliver on the same strategy going forward to sustainably execute
the feasibility of building an indigenous PDH and PP facility in Pakistan. Despite strong local business operations.
market conditions and ample technical expertise, high capital expenditure projections due to an
unprecedented increase in EPC contracts led to the decision to temporarily hold the project. • The Company is also developing a robust export strategy that aims to utilize its valuable
However, Engro will continuously reevaluate the situation and remains open to the possibility of resources, including land, natural resources, and human capital. Our intent is to further develop
restarting work on the project in the future. our export base in rice and Chlor-Vinyl products. We will explore export opportunities in various
industries such as food, agriculture, chemicals, technology, and mining.
V. Engro Fertilizers, in collaboration with other fertilizer manufacturers, has entered a contract with
Mari Petroleum Company Limited (MPCL) to construct a compression unit at the Mari Field. This • Internationalization will be a major priority. The Company is focusing on international ventures
will help maintain an appropriate level of delivery pressure, allowing the manufacturing facility to with global partners, which will enable geographical diversification and market the Engro brand
function at optimal levels on indigenous gas for a foreseeable future. around the world.
VI. Engro Polymer & Chemicals has initiated a FEED study for a ~ 50 KTPA VCM facility which is near-term outlook
well underway. As the Pakistani market continues to expand, it is dedicated to remaining The near-term growth outlook is soft due to macroeconomic instability caused by a deteriorating
the prime supplier of PVC to the local market, while maximizing profits through in-house external financing position, political uncertainty, and fiscal challenges. However, with effective policy
production and tapping into export potential. measures, the economy is expected to regain momentum in the medium-term and grow through
increased exports, import substitution, and potential foreign investment. Overall, the long-term
prospects appear positive and the Company has always remained positive on the potential of Pakistan.

Engro Corporation is well-positioned to play a significant role in addressing some of Pakistan's most • terminal operations
pressing issues and improving the lives of its citizens. We are committed to expanding our business The LNG terminal is also working to alleviate energy shortages. As the market’s demand for energy
operations across our 4 key verticals and exploring new opportunities for growth, with a focus on grows, we will continue to explore new opportunities to increase shareholder value.
creating sustainable value for all and maintaining a resilient and agile business model.
Engro Vopak’s unique position in the liquid chemicals handling industry allows it to remain a market
• fertilizers leader in the chemical handling and storage business, with expectations to perform even better.
Agriculture in Pakistan is facing significant challenges due to a combination of political and economic However, marine LPG imports are expected to remain under pressure due to imports through the
uncertainty and the recent flooding. As the economy relies on agricultural output heavily, the obstacles Taftan Border area.
expected in the upcoming months are significant.
Nonetheless, we are pleased to continue our successful 25-year relationship with Royal Vopak, a
But the right government interventions and assistance from relevant agencies, we believe, can bring market leader, which paves the way for Engro and Royal Vopak to collaborate further, domestically and
about a recovery. Our Company remains dedicated to playing its part by providing discounted prices internationally, by utilizing their combined resources and expertise.
on essential fertilizers from international markets.
• foods
• petrochemicals The challenging macroeconomic circumstances may result in a moderation in consumer discretionary
The Polymer business plays a pivotal role in preserving foreign currency through import substitution, as spending and hamper our growth momentum. However, the Company will prioritize ensuring a
well as generating foreign currency through exports. consistent supply of nutritious and safe products. It will continue driving growth by proactively
engaging with suppliers and distributors to ensure a seamless supply chain and focus on improving
Engro Polymer & Chemicals remains committed to serving as a key feedstock supplier to major profitability.
Pakistani industries like construction and textile. In light of the looming gas shortage, it is exploring
alternative energy sources for its business to reduce power costs and mitigate the risk of gas • telecommunication infrastructure
availability, while also continuing to identify new projects and markets. In addition to the above, the The growing demand for mobile data and high-quality services is motivating MNOs to improve through
Company also expects to receive adequate gas supplies from the Government, being a critical raw aggressive Built-to-Suit roll outs. As a result, the business outlook for Enfrashare remains strong as it
material provider to the export-oriented textile sector. enables MNOs to concentrate on their core business by undertaking the telecommunication
tower-related capex and optimizing operational efficiencies. The present macroeconomic situation will
• energy result in inflationary pressures, requiring further cost optimization for the business.
Energy security remains one of the most pressing issues in Pakistan. An import-driven energy policy is
not sustainable for the country and so, with the aim of providing indigenous affordable energy, Thar Engro Enfrashare will continue to maintain its market leadership as an Independent Tower Company
coal will remain high on the government’s merit order list for the power sector as it provides hedging through internal and external growth opportunities. It is on track to reach the earlier-set goal of
against rising fuel prices. To meet potential energy demand, our mining business has successfully becoming a 5,000+ Tower Company by the year 2024.
expanded capacity to 7.6 million TPA and will continue to expand up to 11.4 million TPA by early 2024.
As a responsible corporate citizen, operating in Pakistan for nearly 60 years, Engro will continue to
The management is collaborating with cement manufacturers and power producers using imported contribute towards enabling the recovery of our economy at this pivotal juncture.
coal to utilize indigenous Thar coal. We believe that fully utilizing Thar coal can address both energy
sector problems and our burgeoning foreign exchange crisis. distribution to shareholders
The Board endeavors to maximize overall portfolio returns and is pleased to propose a final cash
To enable the drive toward sustainable energy, the Energy business, in collaboration with the regulators dividend of PKR 1 per share for the year ended December 31, 2022. The total dividend attributable to
and industry stakeholders, has made progress on the feasibility of the 400 MW Renewable Energy the year is PKR 34 per share, including the total interim cash dividend of PKR 33 per share during the
Park (RE Park) in Jhimpir. This will play a vital part in promoting and paving the way towards a year.
sustainable future by providing affordable and green electricity at large. The Company has confirmed
availability of ~6,700 acres of land for the same, which is sufficient to support an electricity generation
capacity of more than 400 MW. It also has ~670 MW of commitments in place from potential
customers.

credit ratings and gearing Engro Corporation has identified the following significant risks and mitigation strategies:
During 2022, credit rating agencies reaffirmed the credit strength of the Company and its subsidiaries.
economic and regulatory risk Continuous proactive efforts and dialogues with
policymakers help our businesses respond to tough
Long-term Short-term
Company Rating Agency economic conditions and regulatory challenges.
Rating Rating
Engro Corporation Limited PACRA AA+ A1+ foreign exchange risk Engro’s investment portfolio exposes us to foreign exchange
risk. By viewing the complete portfolio, it is ensured that
Engro Fertilizers Limited PACRA AA A1+ maximum adequate natural hedges exist.
Engro Polymer & Chemicals Limited PACRA AA A1+
interest rate risk The Company’s borrowings and investment of surplus funds
Engro Eximp Agriproducts (Private) Limited PACRA A- A2 exposes us to an interest rate risk. This is mitigated by
Engro Enfrashare (Private) Limited VIS A- A2 regular monitoring of interest rates for adverse movements
and investing surplus funds in short-term instruments.
Engro Powergen Thar (Private) Limited PACRA AA- A1
Engro Elengy Terminal (Private) Limited PACRA AA- A1 liquidity risk The purpose of Engro’s treasury policies is to ensure
availability of sufficient funds to meet contractual
commitments and requirements for potential portfolio
These credit ratings reflect the entities’ financial and management strengths, as well as favourable growth. Liquidity risk is mitigated through internal cash
credit standing, and are a testament to our strong balance sheet and robust performance with generation and committed facilities with financial
consistent dividend payouts. institutions.
Consolidated borrowings at year-end remained stable at PKR 255,291 million from PKR 222,203 credit risk Careful selection of strong financial institutions with strong
million on December 31, 2021. The gearing for the year is 51% versus 48% as at 2021 year-end, credit ratings helps in mitigating this risk.
leaving sufficient room to increase leverage for future growth opportunities.
business operation risk Concerns of energy, sourcing imported raw materials and
other operational risks are assessed on a regular and
risk management ongoing basis. The Company proactively takes measures,
Engro Corporation and its subsidiaries use the Lean Enterprise Risk Management framework in i.e. the gas compression project, to enhance exports and
assessing and managing risk. It is our policy to view risk management as integral to the creation, enable a sustainable value chain.
protection, and enhancement of shareholder value by managing the significant uncertainties and risks
that could possibly influence the achievement of corporate goals and objectives. board of directors
The Board of Directors reviews all significant matters of the Company. These include its strategic
Engro’s diversified businesses operate in a complex business environment and it requires assessment direction, annual business plans and targets, decisions on long-term investments and borrowings. It is
of each business’ strategy and quantum of risk that the business is willing to accept by adequately committed to maintaining high standards of Corporate Governance.
assigning responsibilities throughout the organization. Each subsidiary assesses the probability and
impact of risk that the entity is exposed to and assigns responsibilities to manage those risks on an The existing Board was elected on April 26, 2021. It comprises of 10 directors, including the CEO, and
on-going basis. Risks are identified across the organization and ranked based on their impact and possess a diverse mix of gender, knowledge, and expertise to enhance its effectiveness. The Board
probability. Upon identification, a strategy is devised to mitigate its impact, which is monitored by the consists of 3 women directors and 7 men directors, categorized as follows:
Management Committee and the Board.
3 Independent men directors
2 Independent women directors
3 Non-Executive men directors
1 Non-Executive women director
1 Executive Director

Following are the names of the personnel who, at any time during 2022, were Directors on the Board Appropriate accounting policies have been consistently applied in preparation of the financial
of the Company: statements, except for changes resulting on initial application of standards and amendments or
interpretations to existing standards. Accounting estimates are based on reasonable and
1. Mr. Hussain Dawood prudent judgment.
2. Mr. Shahzada Dawood
3. Mr. Abdul Samad Dawood International Financial Reporting Standards, as applicable in Pakistan, have been followed in
4. Ms. Sabrina Dawood preparation of the financial statements and any departures therefrom have been adequately
5. Mr. Muhammad Abdul Aleem disclosed.
6. Mr. Rizwan Diwan
7. Mr. Khawaja Iqbal Hassan The system of internal control is sound in design and has been effectively implemented and
8. Ms. Henna Inam monitored.
9. Ms. Dominique Russo
10. Mr. Ghias Khan There are no significant doubts upon the Company’s ability to continue as a going concern.
In 2022, the Board held 10 meetings to cover its complete cycle of activities. It has established three There is no material departure from the best practices of corporate governance.
committees to assist it in carrying out fiduciary duties. These committees, along with their membership
details, are as follows: remuneration policy for non-executive and independent directors
The Board of Directors has approved a ‘Remuneration Policy for Non-Executive and Independent
Board Audit Committee Board Investment Committee Board People Committee
Directors’, salient features of which are:
4 meetings held in 2022 8 meetings held in 2022 10 meetings held in 2022
The remuneration shall be appropriate and commensurate with the level of responsibility and
Mr. Muhammad Abdul Aleem Mr. Shahzada Dawood Ms. Henna Inam
expertise of the directors, aimed at attracting and retaining the directors needed to govern the
Mr. Rizwan Diwan Mr. Muhammad Abdul Aleem Mr. Shahzada Dawood Company successfully and encourage value addition. The remuneration shall not compromise
Mr. Khawaja Iqbal Hassan Mr. Rizwan Diwan Mr. Khawaja Iqbal Hasan nor influence, in any way, the independence of the directors.
Ms. Henna Inam Ms. Dominique Russo Ms. Dominique Russo The Board, if deemed appropriate, may engage an independent consultant to determine the
appropriate level of remuneration of its directors.
statement of directors’ responsibilities
No remuneration shall be paid to an Executive Director or any Non-Executive Directors who are
The Directors confirm compliance with the Corporate & Financial Reporting Framework of the employees in other Engro entities, for attending meetings of the Board and its committees.
Securities and Exchange Commission of Pakistan Code of Governance for the following:
Any travel and other necessary expenses incurred by the directors for attending meetings of the
The financial statements, prepared by the management of the Company, present fairly its state Board and its committees shall be reimbursed at actual.
of affairs, the result of its operations, cash flows and changes in equity.
compensation of directors
Proper books of accounts of the Company have been maintained.
The Company has a formal policy and transparent procedures for the remuneration of its directors in
accordance with the Companies Act, 2017, and the Listed Companies (Code of Corporate
Governance) Regulations, 2019. The policy also provides travel and daily allowance entitlements for
Non-Executive Directors for business-related travel.
The remuneration, including the directors’ fee for attending the Board or Board Committee Meeting,
paid to the Directors and CEO, is disclosed on Note 28 to the Unconsolidated Financial Statements.

adequacy of internal financial controls Diversity and inclusion are fundamental enablers of our culture. All interventions are geared towards
The Board of Directors is ultimately responsible for Engro’s system of internal control and for reviewing embedding Diversity, Equity, and Inclusion (DE&I) into our work environment and levelling the playing
its effectiveness. The Board, whilst maintaining its overall responsibility, has delegated the detailed field for all. As we remain committed to creating an informed and equitable workplace, the DE&I
design and operation of the system of internal controls to the CEO. Leaders Program was held this year to sensitize employees and make role models who truly exhibit our
inclusive values. This year, our flagship Break Ke Baad program inducted a new batch of women
Engro’s system of internal controls comprises of clear governance structures, authority limits and returning from career breaks in various functions across the Group. Catering to another important
accountabilities, well understood policies, procedures and a budgeting process. The Board meets aspect, a Digital Accessibility Training, as part of the #EnabaleAll initiative, was held to assist internal
quarterly to consider Engro’s financial performance, financial and operating budgets, business growth teams in creating content, that is accessible for Persons with Disabilities. Furthermore, Engro inducted
and developmental plans, capital expenditure proposals and other key performance indicators. The its first ever Person with Disabilities (PWD) Internship program.
Board Audit Committee receives reports on the system of internal financial controls from the external
and internal auditors and reviews the process for monitoring the effectiveness of internal controls. In our aim to provide an improved employee experience through structured processes backed by
technological advancements, Engro has centralized and digitized its operations. “Putting People First”
related parties has always been at the core of our philosophy and continues to reflect in our initiatives and steps
towards an enlightened future.
The Company maintains a comprehensive list of all related parties. All such parties with whom the
Company has entered into transactions during the year, along with the nature of its relationship and social capital
percentage holdings, have been appropriately disclosed in Note 52 of the Financial Statements.
The performance of a corporate entity in the larger context of the environment, society, and economic
Certain back-office business functions, e.g., human resources, information technology, treasury, returns determines its social capital. We believe that a robust and prosperous society is imperative for
accounts payable and corporate communications, etc, have been strategically centralized at the the growth of businesses and hence, take pride in our corporate governance and remain cognizant of
Company to optimize operations, eliminate duplication and reduction of costs through synergy. It our responsibility towards the environment and society.
ensures robust governance and risk management, as well as timely insights due to standardized
processes, systems, and reporting. The Company has entered cost sharing agreements with its We continue to develop programs and interventions to positively contribute toward addressing some
subsidiaries and associated entities, ensuring that all transactions with its related parties arising in the of Pakistan’s most pressing issues across our value chains and deploy philanthropic capital for the
normal course of business are carried out on an arm’s length basis at standard commercial terms and betterment of the communities in which we operate. Our education, skills development, healthcare,
conditions. and other community programs provide opportunities that drive a long-term symbiotic relationship
between our businesses and communities. Details of our environmental and social programs are
In compliance with the Code of Corporate Governance and applicable laws, every quarter, a available in our Sustainability Reports.
comprehensive list of all related party transactions is placed before the Board Audit Committee for
review and based on its recommendation, are subsequently approved by the Board. health, safety, and environment (HSE)
HSE is a core value at Engro and we remain fully committed to adopting the best practices. Our
auditors approach builds on continuous learning from our experiences, HSE standards, and best-in-class
The existing auditors, A.F. Ferguson & Co., Chartered Accountants, had retired and being eligible, have industry practices. We continuously strive toward zero occupational injuries, illnesses, and HSE
offered themselves for re-appointment. The Board Audit Committee recommends their appointment as incidents. We are duty-bound to practice inherent safety in design while also maintaining compliance
auditors for the year ending December 31, 2023. with both Federal and Provincial regulatory requirements wherever the Company operates.
human capital With a drive to continually excel and adopt world-class HSE management systems, Engro has
embarked on a multi-year journey to move from a compliance-based approach to an adaptive,
At Engro, there is a continued focus on capability development and growth of our people. Having built risk-based HSE management system in partnership with DuPont Sustainable Solutions (DSS+) -- a
the foundation for people transformation, we are now empowered to focus on the Talent agenda. A renowned international HSE consultant. A dedicated team under Engro’s Central Technical Division
critical step in this pursuit has been the launch of our Talent Development Program (TDP), which aims (CTD) led the critical change management process across the Organization.
to empower employees so they may manage their own development and career trajectories.
Complementing the TDP, succession planning of key roles has been integral to developing the talent
pipeline.

Significant efforts are being made to develop organizational capability on world-class HSE risk acknowledgment
assessment methodology, including Hazard Identification (HAZID), Process Hazards Analysis (PHA), The Directors would like to express their deep appreciation for the Company’s shareholders, who have
Layer of Protection Analysis (LOPA), and Bow Tie Analysis. In 2022, a total of 4,000 hours were consistently demonstrated their confidence in the Company. We would also like to place on record
invested in capacity-building training sessions for selected risk-based champions on a “train the their sincere appreciation for the commitment, dedication and innovative thinking put in by each
trainer” concept. Full transformation of the HSE system will be completed within 7 years (2021 - 2027). member of the Engro family and are confident that they will continue to do so in the future.
As a first step, quick scanning of high-consequence threats (Major Accident Hazards) is to be
completed by the end of 2023 for all Engro Group Companies. In 2022, approximately 12,000 hours
were spent reviewing the high-consequence threats and effectiveness of their associated barriers for
Engro Fertilizers (in Daharki), Engro Polymer & Chemicals (in Port Qasim), and Engro Powergen Thar
(in Thar). The output of this exercise is fed to a high-level dashboard to provide visibility of HSE analytics
to senior leadership for effective risk management. It shall also provide input to the enterprise risk
register. Hussain Dawood Ghias Khan
Chairman President & CEO
The Group HSE (GHSE) team works with its affiliates to drive the implementation of health, safety, and
environmental initiatives and provide continuous oversight and guidance. The team maintains
corporate HSE standards by reinforcing our agenda of safety for all through compliance audits,
performance tracking, gap analysis, and incident investigations. The Company will pursue these
obligations by enforcing a goal-oriented HSE Management System derived from international
standards and industry best practices. Compliance with HSE standards is a part of our Leadership
Competency Model, used for evaluating our employees.
The key focus during 2022 was on developing Engro Corporation’s HSE standards to institutionalize
minimum requirements that would be enforced across all Engro locations. Second Party audits were
conducted at numerous sites to assess the effectiveness of the HSE Management System and provide
guidance regarding areas of improvement. A large part of GHSE’s efforts was applied to developing
and putting in a new HSE MIS platform – VelocityEHS – to manage HSE work processes better and
enable analytics on the database to identify key areas requiring attention. The platform comprises 4
modules – EHS, ESG, Risk Assessment, and MOC (Management of Change). GHSE also led and/or
participated in examining adverse outcome events to conduct root cause analysis and define action
items to prevent a recurrence. SME support during the development of new projects in defining the
HSE requirements and facilitating implementation was also made available as required.
pattern of shareholding
Majority shareholders of Engro Corporation are The Dawood Group, including Dawood Hercules
Corporation Limited. Other shareholders include local and foreign institutions and the general public.
A statement of the general pattern of shareholding, along with the pattern of shareholding of certain
classes of shareholders whose disclosure is required under the reporting framework, and the
statement of purchase and sale of shares undertaken in 2022 by Directors, Executives, their Spouses,
and/or Minor Children, is shown in the shareholding section of this Report.
material changes due to subsequent events

No material changes or commitments affecting the financial position of the Company have occurred
between the end of the financial year and the date of this Report.

governance directors
control framework
As at December 31, 2022, the Board comprises of 1 executive director, 5 independent directors and 4
non-executive directors. The Board has the collective responsibility of ensuring that the affairs of Engro
are managed competently and with integrity.
A non-executive Director, Mr. Hussain Dawood, Chairs the Board and the CEO is Mr. Ghias Khan.
internal control framework Biographical details of the Directors have been provided in the previous section.
responsibility
The Board is ultimately responsible for Engro's system of internal control and for reviewing its A Board of Directors’ meeting calendar is issued annually which schedules the meetings of the Board
effectiveness. However, such a system is designed to manage rather than eliminate the risk of failure to and the Board Committees. The full Board met 10 times, including meetings for longer term planning,
achieve business objectives and can provide only reasonable and not absolute assurance against giving consideration both to the opportunities and risks of future strategy.
material misstatement or loss. The Board, whilst maintaining its overall responsibility for managing risk
within the Company, has delegated the detailed design and operation of the system of internal controls All Board members are given appropriate documentation in advance of each Board meeting. This
to the CEO. normally includes a detailed analysis on businesses and full papers on matters where the Board will be
required to make a decision or give its approval.
framework
The Company maintains an established risk-based control framework comprising clear structures,
authority limits, and accountabilities, well understood policies and procedures for review processes. All
policies and control procedures are documented. The Board establishes corporate strategy and the
Company's business objectives. Divisional management integrates these objectives into divisional
business strategies with supporting financial objectives.
review
The Board meets quarterly to consider Engro's financial performance, financial and operating budgets
and forecasts, business growth and development plans, capital expenditure proposals and other key
performance indicators. The Board Audit Committee receives reports on the system of internal financial
controls from the external and internal auditors and reviews the process for monitoring the
effectiveness of internal controls.
There is a Company-wide policy governing appraisal and approval of investment expenditure and asset
disposals.
audit
Engro has an Internal Audit function. The Board Audit Committee annually reviews the appropriateness
of resources and authority of this function. The Head of Internal Audit functionally reports to the Audit
Committee.
The Board Audit Committee approves the audit program, based on an annual risk assessment of the
operating areas. The Internal Audit function carries out reviews on the financial, operational and
compliance controls, and reports on findings to the Board Audit Committee, CEO and the divisional
management.

6. All the powers of the Board have been duly exercised and decisions on relevant matters have been
statement of compliance with listed companies taken by the Board/shareholders as empowered by the relevant provisions of the Companies Act,
(code of corporate governance) regulations, 2019 2017, (the Act) and these Regulations
year ended december 31, 2022 7. The meetings of the Board were presided over by the Chairman and, in his absence, by a Director
elected by the Board for this purpose. The Board has complied with the requirements of the Act
Engro Corporation Limited (hereinafter referred to as “the Company”) has complied with the and the Regulations with respect to frequency, recording and circulating minutes of meeting of the
requirments of the Listed Companies (Code of Corporate Governance) Regulation, 2019, Board
(”the Regulations”) in the following manner:
8. The Board have a formal policy and transparent procedures for remuneration of directors in
1. The total number of directors are 10 as per the following: accordance with the Act and these Regulations;
9. 9 Directors are duly certified or exempted from the Directors’ Training Program
men women
7 3
*
10. The Board had approved the appointment of Chief Financial Officer, Company Secretary and Head
of Internal Audit, including their remuneration and terms and conditions of employment, and
complied with relevant requirements of the Regulations
* Including the CEO, who is a Deemed Director.
11. The Chief Financial Officer and CEO duly endorsed the financial statements before approval of the
2. The composition of the Board is as follows: Board
Category Name 12. The Board has formed committees comprising of members given below:
Independent Directors Mr Muhammad Abdul Aleem a) Board Audit Committee

Mr Rizwan Diwan Mr. Muhammad Abdul Aleem – Chairman
Mr Khawaja Iqbal Hassan Mr. Rizwan Diwan
Mr. Khawaja Iqbal Hassan
Independent Directors - Women Ms Henna Inam
Ms. Henna Inam
Ms Dominique Russo
Non-Executive Directors Mr Hussain Dawood

b) Board People Committee, i.e. HR and Remuneration Committee
Mr Shahzada Dawood Ms. Henna Inam – Chairperson
Mr Abdul Samad Dawood Mr. Shahzada Dawood
Mr. Khawaja Iqbal Hassan
Non-Executive Director-Women Ms Sabrina Dawood Ms. Dominique Russo
Executive Director Mr Ghias Khan c) Board Investment Committee

Mr. Shahzada Dawood – Chairman
3. The directors have confirmed that none of them is serving as a director on more than 7 listed Mr. Muhammad Abdul Aleem
companies, including this Company Mr. Rizwan Diwan
Ms. Dominique Russo
4. The Company has prepared a Code of Conduct and ensured that appropriate steps have been
taken to disseminate it throughout the Company, along with its supporting policies and procedures 13. The terms of reference of the aforesaid committees have been formed, documented and advised
to the committee for compliance
5. The Board has developed a vision/mission statement, overall corporate strategy, and significant
policies of the Company. The Board has ensured that a complete record of particulars of the
significant policies, along with their dates of approval or updating, is maintained by the Company

14. The frequency of meetings of the committee were as per following:
a) Board Audit Committee – 4 meetings held during the year

b) Board People Committee – 10 meetings held during the year
c) Board Investment Committee – 8 meetings held during the year
15. The Board has set up an effective internal audit function who are considered suitably qualified and independent auditor’s review report
experienced for the purpose and are conversant with the policies and procedures of the Company To the members of Engro Corporation Limited
Review Report on the Statement of Compliance contained in Listed Companies
16. The statutory auditors of the Company have confirmed that they have been given a satisfactory (Code of Corporate Governance) Regulations, 2019
rating under the Quality Control Review program of the Institute of Chartered Accountants of
Pakistan, and registered with Audit Oversight Board of Pakistan, that they and all their partners are We have reviewed the enclosed Statement of Compliance with the Listed Companies (Code of
in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as Corporate Governance) Regulations, 2019 (the Regulations) prepared by the Board of Directors of
adopted by the Institute of Chartered Accountants of Pakistan and that they and the partners of Engro Corporation Limited for the year ended December 31, 2022 in accordance with the
the firm involved in the audit are not a close relative (spouse, parent, dependent and requirements of regulation 36 of the Regulations.
non-dependent children) of the CEO, Chief Financial Officer, Head of Internal Audit, Company
The responsibility for compliance with the Regulations is that of the Board of Directors of the
Secretary or Director of the Company
Company. Our responsibility is to review whether the Statement of Compliance reflects the status of the
Company's compliance with the provisions of the Regulations and report if it does not and to highlight
17. The statutory auditors or the persons associated with them have not been appointed to provide any non-compliance with the requirements of the Regulations. A review is limited primarily to inquiries
other services except in accordance with the Act, these Regulations or any other regulatory of the Company's personnel and review of various documents prepared by the Company to comply
requirement and the auditors have confirmed that they have observed IFAC guidelines in this with the Regulations.
regard
As a part of our audit of the financial statements we are required to obtain an understanding of the
And accounting and internal control systems sufficient to plan the audit and develop an effective audit
approach. We are not required to consider whether the Board of Directors' statement on internal
18. We confirm that all requirements of regulations 3, 6, 7, 8, 27, 32, 33 and 36 of the Regulations have control covers all risks and controls or to form an opinion on the effectiveness of such internal controls,
the Company's corporate governance procedures and risks.
been complied with.
The Regulations require the Company to place before the Audit Committee, and upon
recommendation of the Audit Committee, place before the Board of Directors for their review and
approval, its related party transactions. We are only required and have ensured compliance of this
requirement to the extent of the approval of the related party transactions by the Board of Directors
upon recommendation of the Audit Committee.
Based on our review, nothing has come to our attention which causes us to believe that the
Statement of Compliance does not appropriately reflect the Company's compliance, in all material
respects, with the requirements contained in the Regulations as applicable to the Company for the year
ended December 31, 2022.
Chartered Accountants
Karachi
Date: 08 March, 2023 UDIN: CR2022101139KlwQd5P2
Mr. Hussain Dawood Mr. Ghias Khan

Chairman President & CEO

categories of information of shareholding required under reporting framework is as follows:
shareholding 1. Directors, CEO, and their spouse and minor children

S. No. Name No. of Shares Held
as at december 31, 2022 1 Mr. Hussain Dawood 17,791,927
2 Mr. Shahzada Dawood 6,536,109
3 Mr. Abdul Samad Dawood 1,263,941
S. No. Cateogry of Shareholders No. of Shareholder No. of Shares Percentage 4 Ms. Sabrina Dawood 3,662,370
5 Mr. Mohammad Abdul Aleem 304,153
1 Directors, Chief Executive 13 38,266,610 6.64 6 Mr. Rizwan Diwan 110
Officer, and their Spouse and 7 Mr. Khawaja Iqbal Hassan 50,000
Minor Children 8 Ms. Henna Inam 110
9 Ms. Dominique Russo 1
2 Executives 2 52,650 0.01 10 Mr. Ghias Uddin Khan 750,000
11 Ms. Kulsum Dawood W/o Hussain Dawood 7,857,659
3 Associated Companies, 11 229,984,896 39.92 12 Ms. Ayesha Dawood W/o Abdul Samad Dawood 44
Undertakings and Related 13 Ms. Humera Aleem W/o Mohammad Abdul Aleem 50,186
Parties Total 38,266,610
4 NIT and ICP 1 105 0.00

2. Associated Companies, Undertakings and Related Parties
5 Banks, Development Financial 28 14,671,835 2.55 S. No. Name No. of Shares Held
Institutions, Non Banking
Financial Institutions 1 Dawood Hercules Corporation Limited 214,469,810
2 Dawood Investments (Private) Limited 11,579,845
6 Insurance Companies 24 28,245,193 4.90 3 Dawood Corporation (Private) Limited 3,436,290
4 Engro Corporation Limited Provident Fund 164,810
7 Modarabas and Mutual Funds 108 31,641,859 5.49 5 Engro Corporation Limited MPT Employees Defined Contribution Gratuity Fund 135,620
6 Engro Corporation Limited MPT Employees Defined Contribution Gratuity Fund 64,270
8 Share holders holding 5% 1 214,469,810 37.22 7 Engro Foods Limited Employees Gratuity Fund 52,220
8 Dawood Foundation 41,861
9 General Public : 9 Engro Corporation Limited MPT Employees Defined Contribution Pension Fund 21,780
a. local 15,561 144,085,396 25.01 10 Engro Fertilizers Limited Non-MPT Employees Gratuity Fund 9,890
b. Foreign 11 Engro Corporation Limited Gratuity Fund 8,500
Total 229,984,896
10 Others 489 89,214,686 15.48
3. NIT and ICP
Total (excluding : share holders holding 10%) 16,237 576,163,230 100.00 Total 105
4. Banks, Development Financial Institutions, Non Banking Financial Institutions

Free Float Shares as at December 31, 2022 Total 14,671,835
Total outstanding shares 576,163,230 5. Insurance Companies
Free Float shares 296,191,720 Total 28,245,193
Free Float as a % of total outstanding shares 51.41%

6. Modarabas and Mutual Funds S. No. Name No. of Shares Held
S. No. Name No. of Shares Held 41 Meezan Asset Allocation Fund 107,015
42 APF-Equity Sub Fund 102,250
1 Meezan Islamic Fund 4,174,899
43 Nafa Pension Fund Equity Sub-fund Account 100,831
2 Al-Ameen Shariah Stock Fund 2,086,275
44 HBL Financial Sector Income Fund Plan I - MT 99,000
3 NBP Stock Fund 1,865,882
45 NBP Savings Fund - MT 93,500
4 NIT-Equity Market Opportunity Fund 1,854,684
46 NBP Sarmaya Izafa Fund 92,670
5 Atlas Stock Market Fund 1,651,529
47 HBL Growth Fund 90,000
6 MCB Pakistan Stock Market Fund 1,494,401
48 Faysal Stock Fund 90,000
7 NBP Islamic Stock Fund 1,326,358
49 AKD Index Tracker Fund 86,461
8 Atlas Islamic Stock Fund 1,197,369
50 Pakistan Capital Market Fund 79,000
9 KSE Meezan Index Fund 1,176,333
51 NBP Balanced Fund 76,218
10 Al Meezan Mutual Fund 1,016,629
52 JS Large Cap. Fund 70,300
11 Alhamra Islamic Stock Fund 936,000
53 Alfalah GHP Value Fund 66,880
12 Meezan Tahaffuz Pension Fund - Equity Sub Fund 880,252
54 JS Islamic Fund 60,500
13 NIT Islamic Equity Fund 857,610
55 NBP Islamic Active Allocation Equity Fund 57,490
14 UBL Stock Advantage Fund 853,459
56 Al Habib Islamic Stock Fund 57,000
15 ABL Stock Fund 841,196
57 MCB Pakistan Dividend Yield Plan 56,900
16 NBP Islamic Sarmaya Izafa Fund 681,377
58 Meezan Pakistan Exchange Traded Fund 48,461
17 National Investment (Unit) Trust 628,598
59 NBP Mahana Amdani Fund - MT 46,711
18 ABL Islamic Stock Fund 519,519
60 Faysal Islamic Stock Fund 45,644
19 Alhamra Islamic Asset Allocation Fund 515,000
61 NITIPF Equity Sub-Fund 44,750
20 Alfalah GHP Islamic Stock Fund 412,112
62 JS Pension Savings Fund - Equity Account 39,572
21 Lakson Equity Fund 366,810
63 HBL Investment Fund 35,287
22 Al-Ameen Islamic Ret. Sav. Fund-Equity Sub Fund 365,808
64 UBL Asset Allocation Fund 34,425
23 JS Growth Fund 356,707
65 Lakson Tactical Fund 34,094
24 Faysal MTS Fund - MT 316,005
66 HBL Islamic Stock Fund 33,427
25 Nafa Islamic Pension Fund Equity Account 313,900
67 Lakson Islamic Tactical Fund 27,679
26 Meezan Balanced Fund 275,599
68 AWT Islamic Stock Fund 27,620
27 Alfalah GHP Stock Fund 260,125
69 AWT Stock Fund 27,196
28 Faysal Islamic Dedicated Equity Fund 253,692
70 B.R.R. Guardian Modaraba 26,922
29 Alhamra Islamic Pension Fund - Equity Sub Fund 192,500
71 Faysal Asset Allocation Fund 25,000
30 UBL Retirement Savings Fund - Equity Sub Fund 173,437
72 NIT Asset Allocation Fund 25,000
31 MCB Pakistan Asset Allocation Fund 170,000
73 NITPF Equity Sub-Fund 24,100
32 Pakistan Pension Fund - Equity Sub Fund 165,000
74 ABL Islamic Pension Fund - Equity Sub Fund 24,040
33 Meezan Dedicated Equity Fund 154,534
75 HBL - Stock Fund 24,025
34 APIF - Equity Sub Fund 154,500
76 HBL Islamic Asset Allocation Fund 24,025
35 Pak-Qatar Islamic Stock Fund 145,460
77 JS Islamic Pension Savings Fund-Equity Account 23,500
36 Atlas Islamic Dedicated Stock Fund 144,700
78 First Capital Mutual Fund 22,800
37 Unit Trust of Pakistan 138,093
79 NBP Financial Sector Income Fund - Mt 21,000
38 ABL Islamic Dedicated Stock Fund 137,407
80 HBL Equity Fund 20,000
39 Al-Ameen Islamic Asset Allocation Fund 136,565
81 Agipf Equity Sub-Fund 19,290
40 Alfalah GHP Alpha Fund 117,384
82 Alfalah GHP Islamic Dedicated Equity Fund 19,179
83 UBL Dedicated Equity Fund 18,900
84 NBP Pakistan Growth Exchange Traded Fund 16,988
85 Al Ameen Islamic Dedicated Equity Fund 16,900

S. No. Name No. of Shares Held
pattern of
86
87
88
HBL IPF Equity Sub Fund
NIT Pakistan Gateway Exchange Traded Fund
Al Habib Stock Fund
15,146
15,080
15,000
shareholding
89 UBL Pakistan Enterprise Exchange Traded Fund 14,906 as at december 31, 2022
90 JS Momentum Factor Exchange Traded Fund 13,110
91 ABL Pension Fund - Equity Sub Fund 12,880
92 AL Habib Asset Allocation Fund 11,000 No. of Sharesholdings
93 Alfalah GHP Dedicated Equity Fund 10,653
94 JS Global Capital Limited 8,188 No of Shareholders From To Total Shares
95 AGPF Equity Sub-fund 7,760
96 Al Habib Islamic Pension Fund-equity Sub Fund 6,500 3,908 1 100 151,980
97 JS Global Capital Limited - MF 5,569 3,619 101 500 1,000,898
98 HBL PF Equity Sub Fund 5,500 1,831 501 1,000 1,426,405
99 Al Habib Pension Fund-equity Sub Fund 5,500 3,592 1,001 5,000 8,799,484
100 JS Global Capital Limited-MM-MZN-ETF 1,201 1,221 5,001 10,000 8,846,853
101 Tri-star Mutual Fund Limited 1,004 505 10,001 15,000 6,231,201
102 Faysal Islamic Pension Fund-Equity Sub Fund 945 271 15,001 20,000 4,826,135
103 Faysal Pension Fund-Equity Sub Fund 929 190 20,001 25,000 4,315,203
104 First Interfund Modaraba 492 156 25,001 30,000 4,326,293
105 JS Global Capital Limited-MM-MZN-ETF 103 112 30,001 35,000 3,674,663
108 First UDL Modaraba 2 67 45,001 50,000 3,235,080
Total 31,641,859 64 50,001 55,000 3,383,487
35 55,001 60,000 2,005,571
7. Shareholder holding 5% or more voting rights in the Company 26 60,001 65,000 1,619,652
Dawood Hercules Corporation Limited 214,469,810 31 65,001 70,000 2,091,727
24 70,001 75,000 1,754,015
8. General Public (Individual) 19 75,001 80,000 1,483,602
Total 144,085,396 16 80,001 85,000 1,315,107
18 85,001 90,000 1,589,678
9. Others 20 90,001 95,000 1,863,607
Total 89,214,686 18 95,001 100,000 1,776,750
15 100,001 105,000 1,532,078
10. Executives 12 105,001 110,000 1,300,030
Total 52,650 7 110,001 115,000 790,507
13 115,001 120,000 1,530,001
Total 576,163,230 7 120,001 125,000 854,492
9 125,001 130,000 1,162,592
8 130,001 135,000 1,066,927
10 135,001 140,000 1,372,007
7 140,001 145,000 1,002,562
12 145,001 150,000 1,775,354
8 150,001 155,000 1,219,723

as at december 31, 2022 as at december 31, 2022
No. of Sharesholdings No. of Sharesholdings
No of Shareholders From To Total Shares No of Shareholders From To Total Shares
5 155,001 160,000 786,830 1 385,001 390,000 388,870

8 160,001 165,000 1,317,124 1 390,001 395,000 390,960
8 165,001 170,000 1,341,278 2 395,001 400,000 796,600
6 170,001 175,000 1,035,952 1 400,001 405,000 400,766
6 175,001 180,000 1,060,828 2 410,001 415,000 826,622
3 180,001 185,000 543,253 1 425,001 430,000 429,677
4 185,001 190,000 749,232 2 430,001 435,000 866,003
6 190,001 195,000 1,153,280 2 440,001 445,000 883,519
1 195,001 200,000 200,000 1 455,001 460,000 456,000
4 200,001 205,000 808,250 1 475,001 480,000 477,436
1 205,001 210,000 210,000 2 495,001 500,000 995,068
3 210,001 215,000 644,000 1 500,001 505,000 500,010
2 215,001 220,000 433,500 1 510,001 515,000 515,000
5 220,001 225,000 1,111,575 1 515,001 520,000 519,519
2 225,001 230,000 455,595 3 520,001 525,000 1,565,676
1 230,001 235,000 231,940 3 525,001 530,000 1,582,304
5 235,001 240,000 1,190,281 1 535,001 540,000 536,700
3 240,001 245,000 725,165 1 540,001 545,000 545,000
4 245,001 250,000 993,729 1 545,001 550,000 550,000
1 250,001 255,000 253,692 1 550,001 555,000 550,465
2 255,001 260,000 520,000 1 555,001 560,000 556,750
6 260,001 265,000 1,574,200 2 580,001 585,000 1,162,969
5 265,001 270,000 1,339,629 1 585,001 590,000 587,986
3 270,001 275,000 817,933 2 600,001 605,000 1,203,744
3 275,001 280,000 829,643 3 610,001 615,000 1,838,402
1 280,001 285,000 284,847 1 615,001 620,000 619,883
2 290,001 295,000 585,711 1 625,001 630,000 628,598
4 295,001 300,000 1,193,240 1 635,001 640,000 637,189
7 300,001 305,000 2,127,966 1 640,001 645,000 644,212
2 305,001 310,000 618,045 1 645,001 650,000 650,000
2 310,001 315,000 627,109 1 665,001 670,000 667,927
3 315,001 320,000 951,024 1 680,001 685,000 681,377
3 320,001 325,000 965,417 1 685,001 690,000 686,518
2 335,001 340,000 676,364 3 695,001 700,000 2,095,509
1 345,001 350,000 350,000 1 710,001 715,000 712,009
3 355,001 360,000 1,069,716 1 745,001 750,000 750,000
1 360,001 365,000 364,292 1 765,001 770,000 768,900
3 365,001 370,000 1,102,218 1 780,001 785,000 780,685
2 375,001 380,000 752,690 2 795,001 800,000 1,600,000
1 380,001 385,000 381,040 1 815,001 820,000 819,425

as at december 31, 2022 as at december 31, 2022
No. of Sharesholdings No. of Sharesholdings
No of Shareholders From To Total Shares No of Shareholders From To Total Shares
1 830,001 835,000 832,000 1 2,085,001 2,090,000 2,086,275

1 840,001 845,000 841,196 1 2,210,001 2,215,000 2,213,889
3 850,001 855,000 2,559,259 1 2,295,001 2,300,000 2,300,000
1 855,001 860,000 857,610 1 2,325,001 2,330,000 2,330,000
2 865,001 870,000 1,735,580 1 2,635,001 2,640,000 2,636,260
1 880,001 885,000 880,252 1 2,770,001 2,775,000 2,772,620
1 885,001 890,000 889,452 1 3,105,001 3,110,000 3,109,370
1 895,001 900,000 896,500 1 3,295,001 3,300,000 3,299,046
2 935,001 940,000 1,871,212 1 3,435,001 3,440,000 3,436,290
1 955,001 960,000 956,790 1 3,660,001 3,665,000 3,662,370
1 1,015,001 1,020,000 1,016,629 1 3,795,001 3,800,000 3,800,000
1 1,055,001 1,060,000 1,057,865 1 3,880,001 3,885,000 3,880,786
1 1,115,001 1,120,000 1,116,410 1 4,170,001 4,175,000 4,174,899
1 1,150,001 1,155,000 1,154,124 1 4,430,001 4,435,000 4,434,856
1 1,175,001 1,180,000 1,176,333 1 4,570,001 4,575,000 4,574,007
1 1,195,001 1,200,000 1,197,369 1 4,795,001 4,800,000 4,796,571
1 1,200,001 1,205,000 1,203,707 1 5,640,001 5,645,000 5,640,816
1 1,230,001 1,235,000 1,233,945 1 6,020,001 6,025,000 6,021,609
1 1,260,001 1,265,000 1,263,941 1 6,535,001 6,540,000 6,536,109
1 1,275,001 1,280,000 1,278,134 1 7,855,001 7,860,000 7,857,659
1 1,325,001 1,330,000 1,326,358 1 8,800,001 8,805,000 8,803,825
1 1,330,001 1,335,000 1,334,286 1 11,575,001 11,580,000 11,579,845
1 1,365,001 1,370,000 1,369,433 1 13,830,001 13,835,000 13,832,159
1 1,410,001 1,415,000 1,410,949 1 17,790,001 17,795,000 17,791,927
1 1,470,001 1,475,000 1,470,515 1 20,005,001 20,010,000 20,007,634
1 1,485,001 1,490,000 1,489,931 1 214,465,001 214,470,000 214,469,810
1 1,490,001 1,495,000 1,494,401
1 1,515,001 1,520,000 1,518,000 16,237 576,163,230
1 1,530,001 1,535,000 1,530,466
3 1,570,001 1,575,000 4,716,246
1 1,580,001 1,585,000 1,585,000
1 1,635,001 1,640,000 1,636,434
1 1,650,001 1,655,000 1,651,529
1 1,710,001 1,715,000 1,710,233
1 1,850,001 1,855,000 1,854,684
2 1,865,001 1,870,000 3,733,099
1 1,900,001 1,905,000 1,901,728
1 1,910,001 1,915,000 1,913,928
1 1,930,001 1,935,000 1,934,150
1 2,000,001 2,005,000 2,001,000

Details of Purchase/sale of shares by Directors, Executive* and their spouses/minor children during 2022:
S. Date of Number Price Per

Executive Name Transaction
No. Transaction of Shares Share
1 Shahzada Dawood January 17, 2022 Bought 404000 272.23

2 Abdul Samad Dawood January 17, 2022 Sold 404000 271.77
3 Muhammad Abdul Aleem January 13, 2022 Bought 20000 272.18
4 Muhammad Abdul Aleem January 7, 2022 Bought 20000 278.00
5 Muhammad Abdul Aleem March 28, 2022 Bought 15000 262.50
6 Muhammad Abdul Aleem March 21, 2022 Bought 30000 264.00
7 Hussain Dawood March 11, 2022 Bought 48000 269.16
9 Kulsum Dawood w/o Hussain Dawood March 10, 2022 Bought 37100 269.45
10 Shahzada Dawood March 10, 2022 Bought 18500 269.46
19 Hussain Dawood April 8, 2022 Bought 127997 272.53
20 Hussain Dawood April 7, 2022 Bought 72003 270.44
21 Hussain Dawood May 23, 2022 Bought 160000 267.02
22 Shahzada Dawood May 20, 2022 Bought 46,001 267.36
23 Kulsum Dawood w/o Hussain Dawood May 17, 2022 Bought 59,500 268.27
26 Kulsum Dawood w/o Hussain Dawood May 16, 2022 Bought 14,938 267.70
27 Muhammad Abdul Aleem June 24, 2022 Bought 10,000 247.00
28 Ghias Khan June 17, 2022 Bought 750,000 265.14
29 Humera Aleem w/o Muhammad Abdul Aleem June 17, 2022 Bought 13,000 261.50
30 Kulsum Dawood w/o Hussain Dawood June 15, 2022 Bought 228,000 262.45
31 Kulsum Dawood w/o Hussain Dawood June 15, 2022 Bought 228,000 262.44
32 Shahzada Dawood June 13, 2022 Bought 202,800 262.46
33 Shahzada Dawood June 10, 2022 Bought 25,200 264.03
34 Muhammad Abdul Aleem June 8, 2022 Bought 2,331 260.10
*For the purpose of declaration of shares traded, all direct reportees of the CEO are considered as Exective.

enabling growth
shareholder e-dividend mandate (mandatory)
information
In accordance with the provisions of Section 242 of the Companies Act, 2017, a listed company, is
required to pay cash dividend ONLY through electronic mode directly into the bank account designated
by the entitled shareholders. Accordingly, the shareholders are requested to provide the information
mentioned on an E-Dividend Mandate Form available at the Company’s website
www.engrofertilizers.com and send the same to your brokers/the Central Depository Company Ltd if
the shares are held in the electronic form or to the Company’s Shares Registrar if the shares are held
in paper certificate form.
annual general meeting quarterly results

The annual shareholders meeting will be held at Karachi School of Business and Leadership (KSBL), The Company issues quarterly financial statements and holds periodic briefings with security analysis
situated at National Stadium Road, Opp. Liaquat National Hospital, Karachi on Thursday, March 30, to discuss the results and the business environment.
2023, at 02:30 pm.
All annual/quarterly reports and periodic briefing presentations are regularly posted on the Company’s
Shareholders as of March 22, 2023, are encouraged to participate and vote. website.
Any shareholder may appoint a proxy to vote on his or her behalf. Proxies should be filed with the change of address
Company at least 48 hours before the meeting time.
All registered shareholders should send information on changes of address to:
CDC Shareholders or their Proxies are requested to bring with them copies of their Computerized
M/s. FAMCO Associates (Private) Limited
National Identity Cards or passports, along with the Participant’s ID number and their account number
8-F, Near Hotel Faran Nursery,
at the time of attending the AGM in order to facilitate their identification.
Block-6 P.E.C.H.S. Shahra-e-Faisal
Karachi-74000
ownership
On December 31, 2022, there were 16, 237 shareholders on record of the Company’s ordinary shares.
electronic transmission of annual report 2022

In compliance with the Section 223(6) of Companies Act, 2017, the Company has electronically
transmitted the Annual Report 2022 through email to shareholders whose email addresses are
available with the Company’s Share Registrar, M/s. FAMCO Associates (Private) Limited. In those
cases, where email addresses are not available with the Company’s Share Registrar, M/s. FAMCO
Associates (Private) Limited, printed notice of AGM, along with the QR enabled code/weblink to
download the said financial statements have been dispatched. However, the Company would provide
hard copies of the Annual Report to the Shareholders on their demand at their registered addresses,
free of cost, within one week of such a request.
Further, shareholders are requested to kindly provide the valid email address (along with a copy of valid
CNIC) to the Company's Share Registrar, M/s. FAMCO Associates (Private) Limited, if you hold shares
in physical form or to the respective Participant/Investor Account Services if shares are held in book
entry form.

our sports
partnerships Engro has always been a proponent of developing talent in all realms of life, on the lookout for
the best of the best. Indeed, we deem it our undeniable responsibility to help solve pressing
issues of our time, and this includes ensuring healthy outlets are available for our youth to
thrive and grow into powerful, positive representatives of Pakistan around the world.
Sports are instrumental in the practical learning of key competencies that are required to
achieve success, including strategic agility, critical-thinking, and problem-solving. At the same
time, they encourage teamwork and physical health. Thus, we have added a new commitment
to Pakistan: for what inspires us, we must strive to support opportunity.
Pakistan needs platforms that offer rising talent a chance to be trained by world-class
coaches, so they can go further, faster, to make their mark on the global stage. With this in
mind, Engro has entered strategic partnerships that enable rising cricket, volleyball, football,
and chess and bridge talent to catapult from the grassroots level to the international playing
field under the Engro Cricket Coaching Project, the Engro Volleyball Development Program,
the Engro Football Training Program, and the Engro Mind Sports Program.
profit and loss quarterly analysis Quarterly Gross & Net Profit Margin
Amount in millions 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual
Sales 88,333 89,122 91,285 87,688 356,428
Cost of Sales (61,116) (62,166) (64,642) (63,884) (251,808)
Gross Profit 27,217 26,956 26,643 23,804 104,620
31%
Selling and distribution expenses (1,889) (1,537) (2,058) (3,842) (9,326) 30%
29%
Administrative expenses (1,670) (3,059) (2,652) (4,395) (11,777)
Other Income 3,986 5,637 4,129 8,122 21,874
Other operating expenses (2,700) (4,173) (1,355) (1,807) (10,035) 27%
Finance Cost (5,127) (6,874) (7,112) (9,631) (28,744)
Remeasurement loss on GIDC
provision and loss allowance
on subsidy receiveble - (949) (356) (321) (1,626)
Share of Income from Joint Venture 988 284 818 1,125 3,215
Profit Before Taxation 20,805 16,285 18,057 13,054 68,201
Tax (5,907) (14,370) (4,160) 2,347 (22,090)
Profit from continuing operations 14,898 1,915 13,897 15,401 46,111
Loss from discontinued operations 0.24 (0.17) - - 0.07
17% 2% 15% 18%
Profit attributable to
1 Quarter
st
2 Quarter
nd
3 Quarter
rd
4 Quarter
th
Owners of the Holding Company 7,972 (558) 8,017 8,901 24,332
Non-Controlling Interest 6,926 2,473 5,880 6,500 21,779
Gross Profit Margin Net Profit Margin
14,898 1,915 13,897 15,401 46,111
Earning vs Dividend per Share

15.45
13.84 13.91
1.00 12.00 11.00 10.00

-0.97
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Earning Per Share Dividend Per Share

horizontal analysis
balance sheet
(In millions)
2022 22 Vs. 21 2021 21 Vs. 20 2020 20 Vs. 19 2019 19 Vs. 18 2018 18 Vs. 17 2017 17 Vs. 16 2016
Horizontal Analysis Rs. % Rs. % Rs. % Rs. % Rs. % Rs. % Rs
EQUITY AND LIABILITIES
EQUITY
Share Capital 5,762 - 5,762 - 5,762 - 5,762 10.0 5,238 - 5,238 - 5,238
Share Premium 13,068 - 13,068 - 13,068 - 13,068 - 13,068 - 13,068 - 13,068
Unappropriated Profits 142,128 3.5 137,386 10.4 124,425 9.4 113,729 0.6 113,101 4.2 108,587 (2.2) 111,008
Reserves 5,864 6.2 5,523 7.0 5,161 1.4 5,088 3.7 4,908 7.6 4,563 0.9 4,523
Non-Controlling Interest 73,762 (9.0) 81,061 13.9 71,179 23.6 57,603 16.9 49,272 24.4 39,619 12.4 35,253
240,584 1 242,800 10.6 219,595 12.5 195,249 5.2 185,587 8.5 171,074 1.2 169,091
NON-CURRENT LIABILITIES
Borrowings 156,174 11.7 139,818 3.4 135,230 (2.4) 138,600 14.4 121,110 54.6 78,351 29.3 60,610
Government grant 1,472 36 1,080 100 - - - - - - - - -
Derivative Financial Instruments - - - - - - - - - - - (100.0) 2
Lease liability 62,370 17.3 53,163 5.0 50,625 (0.6) 50,941 100.0 - - - - -
Deferred Taxation 13,395 (17.6) 16,257 11.6 14,568 8.7 13,399 59.0 8,428 (21.1) 10,683 18.9 8,983
Others 6,587 (40.2) 11,018 (35.9) 17,202 635.4 2,339 800.4 260 15.8 224 14.0 197
239,998 8 221,336 1.7 217,625 6.0 205,280 58.2 129,799 45.4 89,258 27.9 69,791
CURRENT LIABILITIES
Current portion of
- Borrowings 27,700 19.9 23,110 1.9 22,688 14.3 19,856 92.5 10,316 (16.8) 12,392 (0.9) 12,509
- Lease liabilities 9,047 48.0 6,111 24.6 4,906 11.3 4,407 100.0 - - - - -
- Others 26,081 35.5 19,247 54.9 12,423 (57.1) 28,926 25,306.8 114 10.3 103 1.4 102
- Government grant 353 92.2 184 100.0 - - - - - - - - -
Trade and Other Payables 156,944 48.7 105,555 18.6 88,996 15.4 77,142 33.0 58,014 50.8 38,479 21.7 31,625
Accrued Interest / Mark up 2,765 102.3 1,366 (0.4) 1,372 (58.6) 3,316 47.8 2,243 53.5 1,461 28.3 1,138
Short-term Borrowings 32,985 41.7 23,270 86.1 12,505 (19.4) 15,512 133.6 6,641 (34.2) 10,085 82.2 5,536
Others 12,958 866.0 1,341 255.8 377 (32.3) 557 26.3 441 (56.2) 1,007 86.0 542
268,833 49.2 180,186 25.8 143,267 (4.3) 149,716 92.5 77,769 22.4 63,528 23.5 51,451
TOTAL EQUITY AND LIABILITIES 749,415 16.3 644,321 11.0 580,487 5.5 550,245 40.0 393,155 21.4 323,860 11.5 290,333
ASSETS
NON-CURRENT ASSETS
Property, Plant and Equipment 329,877 16.9 282,155 7.7 261,957 3.4 253,374 24.0 204,409 29.9 157,355 19.7 131,408
Right of use asset 13,329 35.7 9,819 40.4 6,992 44.1 4,851 100.0 - - - - -
Net investment in lease 52,160 15.4 45,204 1.5 44,557 (2.2) 45,564 100.0 - - - - -
Long-term Investments 36,081 5.4 34,217 6.8 32,045 6.9 29,963 (5.2) 31,590 (1.9) 32,196 (7.2) 34,701
Derivative financial instrument 737 694.5 93 100.0 - - - - - - - - -
Intangible Assets 2,275 (5.2) 2,398 120.6 1,087 13.1 961 202.6 318 25.6 253 13.7 222
Financial asset at amortised cost 3,783 5.3 3,593 (30.4) 5,161 (12.8) 5,921 100.0 - - - - -
Others 3,918 45.3 2,697 23.1 2,191 (38.0) 3,533 (21.1) 4,477 (34.5) 6,834 (34.3) 10,405
442,161 16.3 380,175 7.4 353,990 2.9 344,168 42.9 240,794 22.5 196,637 11.3 176,736
CURRENT ASSETS
Store, Spares and Loose Tools 9,835 5.6 9,310 2.7 9,069 18.7 7,637 (0.7) 7,688 0.6 7,639 6.9 7,148
Stock-in-Trade 30,243 (4.0) 31,513 75.7 17,938 (9.9) 19,913 15.6 17,228 31.9 13,066 22.1 10,704
Trade Debts 71,195 19.5 59,563 17.7 50,617 (2.7) 51,995 179.1 18,629 36.6 13,642 (0.7) 13,733
Loans, Advances, Deposits & Prepayments 6,850 45.4 4,712 22.0 3,861 (20.7) 4,868 53.5 3,171 57.5 2,013 44.7 1,390
Other Receivables 52,356 64.3 31,867 28.3 24,843 8.5 22,897 91.2 11,972 4.8 11,428 16.8 9,783
Current portion of net investmnet in lease 5,683 41.9 4,005 23.0 3,255 28.0 2,544 100.0 - - - - -
Cash and Bank Balances 44,987 10.2 40,805 74.7 23,353 11.8 20,893 75.9 11,881 24.3 9,558 62.0 5,900
Short-term Investments 86,105 4.5 82,372 (11.9) 93,493 26.3 74,004 (9.5) 81,791 17.0 69,879 8.0 64,726
Assets classified as held for sale - - - (100.0) 67 (94.9) 1,326 100.0 - - - - -
307,254 16.3 264,146 16.6 226,496 9.9 206,077 35.3 152,361 19.8 127,223 12.0 113,597
TOTAL ASSETS 749,415 16.3 644,321 11.0 580,487 5.5 550,245 40.0 393,155 21.4 323,860 11.5 290,333

vertical analysis
balance sheet
(In millions)
2022 22 Vs. 21 2021 21 Vs. 20 2020 20 Vs. 19 2019 19 Vs. 18 2018 18 Vs. 17 2017
Vertical Analysis Rs. % Rs. % Rs. % Rs. % Rs. % Rs.
EQUITY AND LIABILITIES
EQUITY
Share Capital 5,762 0.8 5,762 0.9 5,762 1.0 5,762 1.0 5,238 1.3 5,238
Share Premium 13,068 1.7 13,068 2.0 13,068 2.3 13,068 2.4 13,068 3.3 13,068
Unappropriated Profits 142,128 19.0 137,386 21.3 124,425 21.4 113,729 20.7 113,101 28.8 108,587
Reserves 5,864 0.8 5,523 0.9 5,161 0.9 5,088 0.9 4,908 1.2 4,563
Non-Controlling Interest 73,762 9.8 81,061 12.6 71,179 12.3 57,603 10.5 49,272 12.5 39,619
240,584 32.1 242,800 37.7 219,595 37.8 195,249 35.5 185,587 47.2 171,074
NON-CURRENT LIABILITIES
Borrowings 156,174 20.8 139,818 21.7 135,230 23.3 138,600 25.2 121,110 30.8 78,351
Government grant 1,472 0.2 1,080 0.2 0 - 0 - 0 - 0
Derivative Financial Instruments 0 - 0 - 0 - 0 - 0 - 0
Lease liability 62,370 8.3 53,163 8.3 50,625 8.7 50,941 9.3 - - -
Deferred Taxation 13,395 1.8 16,257 2.5 14,568 2.5 13,399 2.4 8,428 2.1 10,683
Others 6,587 0.9 11,018 1.7 17,202 3.0 2,339 0.4 260 0.1 224
239,998 32.0 221,336 34.4 217,625 37.5 205,280 37.3 129,799 33.0 89,258
CURRENT LIABILITIES
Current portion of
- Borrowings 27,700 3.7 23,110 3.6 22,688 3.9 19,856 3.6 10,316 2.6 12,392
- Lease liabilities 9,047 1.2 6,111 0.9 4,906 0.8 4,407 0.8 - - -
- Others 26,081 3.5 19,247 3.0 12,423 2.1 28,926 5.3 114 0.0 103
- Government grant 353 0.0 184 0.0 0 - 0 - 0 - 0
Trade and Other Payables 156,944 20.9 105,555 16.4 88,996 15.3 77,142 14.0 58,014 14.8 38,479
Accrued Interest / Mark up 2,765 0.4 1,366 0.2 1,372 0.2 3,316 0.6 2,243 0.6 1,461
Short-term Borrowings 32,985 4.4 23,270 3.6 12,505 2.2 15,512 2.8 6,641 1.7 10,085
Others 12,958 1.7 1,341 0.2 377 0.1 557 0.1 441 0.1 1,007
268,833 35.9 180,186 28.0 143,267 24.7 149,716 27.2 77,769 19.8 63,528
TOTAL EQUITY AND LIABILITIES 749,415 100.0 644,321 100.0 580,487 100.0 550,245 100.0 393,155 100.0 323,860
ASSETS
NON-CURRENT ASSETS
Property, Plant and Equipment 329,877 44.0 282,155 43.8 261,957 45.1 253,374 46.0 204,409 52.0 157,355
Right of use asset 13,329 1.8 9,819 1.5 6,992 1.2 4,851 0.9 - - -
Net investment in lease 52,160 7.0 45,204 7.0 44,557 7.7 45,564 8.3 - - -
Long-term Investments 36,081 4.8 34,217 5.3 32,045 5.5 29,963 5.4 31,590 8.0 32,196
Derivative financial instrument 737 0.1 93 0.0 0 - 0 - 0 - 0
Intangible Assets 2,275 0.3 2,398 0.4 1,087 0.2 961 0.2 318 0.1 253
Financial asset at amortised cost 3,783 0.5 3,593 0.6 5,161 0.9 5,921 1.1 - - -
Others 3,918 0.5 2,697 0.4 2,191 0.4 3,533 0.6 4,477 1.1 6,834
442,161 59.0 380,175 59.0 353,990 61.0 344,168 62.5 240,794 61.2 196,637
CURRENT ASSETS
Store, Spares and Loose Tools 9,835 1.3 9,310 1.4 9,069 1.6 7,637 1.4 7,688 2.0 7,639
Stock-in-Trade 30,243 4.0 31,513 4.9 17,938 3.1 19,913 3.6 17,228 4.4 13,066
Trade Debts 71,195 9.5 59,563 9.2 50,617 8.7 51,995 9.4 18,629 4.7 13,642
Loans, Advances, Deposits & Prepayments 6,850 0.9 4,712 0.7 3,861 0.7 4,868 0.9 3,171 0.8 2,013
Other Receivables 52,356 7.0 31,867 4.9 24,843 4.3 22,897 4.2 11,972 3.0 11,428
Current portion of investment in lease 5,683 0.8 4,005 0.6 3,255 0.6 2,544 0.5 - - -
Cash and Bank Balances 44,987 6.0 40,805 6.3 23,353 4.0 20,893 3.8 11,881 3.0 9,558
Short-term Investments 86,105 11.5 82,372 12.8 93,493 16.1 74,004 13.4 81,791 20.8 69,879
Assets classified as held for sale - - - - 67 0.0 1,326 0.2 - - -
307,254 41.0 264,146 41.0 226,496 39.0 206,077 37.5 152,361 38.8 127,223
TOTAL ASSETS 749,415 100.0 644,321 100.0 580,487 100.0 550,245 100.0 393,155 100.0 323,860

horizontal analysis
profit and loss account
(In millions)
Horizontal Analysis 2022 22 Vs. 21 2021 21 Vs. 20 2020 20 Vs. 19 2019 19 Vs. 18 2018 18 Vs. 17 2017 17 Vs. 16 2016
Rs. % Rs. % Rs. % Rs. % Rs. % Rs. % Rs
Sales 356,428 14.39 311,587 25.23 248,818 10.21 225,765 31.59 171,568 33.42 128,593 (18.20) 157,208
Cost of Sales (251,808) 19.22 (212,133) 22.78 (172,773) 9.93 (157,167) 30.47 (120,460) 28.44 (93,786) (22.72) (121,365)
Gross Profit 104,619 4.08 99,455 30.78 76,045 10.85 68,599 34.22 51,108 46.84 34,806 (2.89) 35,843
Selling and Distribution Expenses (9,326) 19.27 (7,819) (0.33) (7,845) (3.19) (8,103) (4.54) (8,488) 8.13 (7,850) (34.87) (12,052)
Administrative Expenses (11,777) 53.76 (7,659) 6.59 (7,185) 18.96 (6,040) 34.31 (4,497) 13.71 (3,955) 9.65 (3,607)
83,517 26.45 83,977 26.95 61,015 35.56 54,456 24.12 38,123 22.22 23,002 17.89 20,184
Other Operating Expenses (11,660) (3.24) (10,912) 42.54 (7,655) (6.64) (8,199) 48.56 (5,519) 129.84 (2,401) 2.24 (2,349)
Other Income 21,874 78.97 12,222 (31.10) 17,738 30.01 13,643 49.15 9,147 (12.79) 10,489 (84.76) 68,838
Operating Profit 93,730 9.90 85,287 19.96 71,098 18.70 59,900 43.47 41,752 34.30 31,089 (64.13) 86,674
Finance Cost (28,744) 66.40 (17,274) (15.63) (20,473) 38.80 (14,750) 170.49 (5,453) 6.29 (5,131) (15.03) (6,038)
Share of Income from Joint Venture 3,215 (0.36) 3,227 15.40 2,796 143.55 1,148 792.36 129 (91.21) 1,463 14.89 1,273
and associates
Profit Before Taxation 68,201 (4.27) 71,240 33.36 53,421 15.39 46,297 27.10 36,427 32.84 27,422 (66.52) 81,909
Provision for Taxation (22,090) 18.40 (18,657) 106.61 (9,030) (42.52) (15,710) 22.78 (12,795) 14.94 (11,132) 33.94 (8,311)
Loss from Discontinued Operations 0.07 (97.58) 29 (110.48) (279) (6.81) (300) (100.00) - - - - -
Net Profit After Taxation 46,111 (12.35) 52,612 19.27 44,112 45.64 30,288 28.17 23,632 45.07 16,290 (77.87) 73,598
Non-Controlling Interest 21,779 (11.72) 24,670 29.77 19,011 38.21 13,755 25.92 10,924 58.72 6,883 53.26 4,491
Owners of the Holding Company 24,332 (12.92) 27,942 11.32 25,100 51.82 16,533 30.10 12,708 35.08 9,407 (86.39) 69,107

vertical analysis
profit and loss account
Vertical Analysis 2022 22 Vs. 21 2021 21 Vs. 20 2020 20 Vs. 19 2019 19 V s. 18 2018 18 Vs. 17 2017
Rs. % Rs. % Rs. % Rs. % Rs. % Rs.
Sales 356,428 100.00 311,587 100.00 248,818 100.00 225,765 100.00 171,568 100.00 128,593
Cost of Sales (251,808) (70.96) (212,133) (68.08) (172,773) (69.44) (157,167) (69.62) (120,460) (70.21) (93,786)
Gross Profit 104,619 29.04 99,455 31.92 76,045 30.56 68,599 30.38 51,108 29.79 34,806
Selling and Distribution Expenses (9,326) (2.62) (7,819) (2.51) (7,845) (3.19) (8,103) (4.54) (8,488) 8.13 (7,850)
Administrative Expenses (11,777) (3.30) (7,659) (2.46) (7,185) (2.89) (6,040) (2.68) (4,497) (2.62) (3,955)
83,517 26.45 83,977 26.95 61,015 35.56 54,456 24.12 38,123 22.22 23,002
Other Operating Expenses (11,660) (2.96) (10,912) (3.50) (7,655) (3.08) (8,199) (3.63) (5,519) (3.22) (2,401)
Other Income 21,874 6.14 12,222 3.92 17,738 7.13 13,643 6.04 9,147 5.33 10,489
Operating Profit 93,730 26.30 85,287 27.37 71,098 28.57 59,900 26.53 41,752 24.34 31,089
Finance Cost (28,744) (8.06) (17,274) (5.54) (20,473) (8.23) (14,750) (6.53) (5,453) (3.18) (5,131)
Share of Income from Joint Venture 3,215 0.90 3,227 1.04 2,796 1.12 1,148 0.51 129 0.07 1,463
and associates
Net Profit Before Taxation 68,201 19.13 71,240 22.86 53,421 21.47 46,297 20.51 36,427 21.23 27,422
Provision for Taxation (22,090) (6.20) (18,657) (5.99) (9,030) (3.63) (15,710) (6.96) (12,795) (7.46) (11,132)
Loss from Discontinued Operations 0.07 0.00 29 0.01 (279) (0.11) (300) (0.13) - - -
Net Profit After Taxation 46,111 12.94 52,612 16.89 44,112 17.73 30,288 13.42 23,632 13.77 16,290
Non-Controlling Interest 21,779 6.11 24,670 7.92 19,012 7.64 13,755 6.09 10,924 6.37 6,883
Owners of the Holding Company 24,332 6.83 27,942 8.97 25,100 10.09 16,533 7.32 12,708 7.41 9,407

six years financial ratios
summary of six years (2017 through 2022)
2022 2021 2020 2019 2018 2017 Ratios 2022 2021 2020 2019 2018 2017
(In millions) Rs. Rs. Rs. Rs. Rs. Rs.
Profitability Ratios:
Summary of Balance Sheet Gross Profit Margin 29% 32% 31% 30% 30% 27%
Net Profit Margin 13% 17% 18% 14% 14% 13%
Shareholders’ Funds / Equity 240,584 242,800 219,595 195,249 185,587 171,074 EBITDA Margin to Sales 28% 31% 34% 32% 29% 30%
Long-term Borrowings 183,874 162,928 157,918 158,456 131,426 90,743 Operating Leverage Ratio 0.66 0.78 2.06 1.45 0.86 3.46
Lease Liabilities - IFRS 16 71,417 59,274 55,531 55,348 - - Return on Equity (after Tax) 15% 18% 18% 12% 9% 7%
Capital Employed 424,458 405,728 377,513 353,705 317,014 261,818 Return on Equity (before Tax) 22% 24% 21% 18% 15% 12%
Property, Plant & Equipment 329,877 282,155 261,957 253,374 204,409 157,355 Return on Capital Employed 22% 22% 19% 18% 14% 13%
Net Current Assets / Working Capital 75,168 113,182 110,823 80,625 84,908 76,087 Return on Assets (before Tax) 9% 11% 9% 8% 9% 8%
Operating Margin 26% 27% 29% 27% 24% 24%
Summary of Profit and Loss Liquidity Ratios:

Current Ratio 1.14 1.47 1.58 1.38 1.96 2.00
Sales 356,428 311,587 248,818 225,765 171,568 128,593 Quick / Acid Test Ratio 0.99 1.24 1.39 1.19 1.64 1.68
Gross Profit 103,517 99,455 76,045 68,599 51,108 34,806 Cash and Cash Equivalent to Current Liabilities 0.49 0.68 0.45 0.27 1.01 0.85
EBITDA 113,318 101,690 88,017 72,331 49,507 40,079 Cash Flow from Operations to Sales 0.22 0.16 0.25 0.17 0.17 0.16
Profit After Tax 46,111 52,612 44,112 30,288 23,633 16,290
Activity / Turnover Ratios:
Total Assets Turnover Ratio 0.51 0.51 0.44 0.48 0.48 0.42
Summary of Cash Flows Fixed Assets Turnover Ratio 1.08 1.10 0.97 0.99 0.95 0.89
No. of Days Inventory 45 43 40 43 46 46
Net Cash Flow from Operating Activities 76,720 48,605 63,392 38,866 28,940 21,120 No. of Days in Receivables 67 65 75 57 34 39
Net Cash Flow from Investing Activities (88,882) 35,750 (7,323) (78,262) (12,397) (9,008) No.of Days in Payables 189 167 170 145 131 23
Net Cash Flow from Financing Activities (54,759) (44,876) (31,774) (4,632) 14,213 3,186 Operating cycle (78) (60) (55) (45) (51) (62)
Investment / Market Ratios:

Summary of Actual Production Earnings per Share (Restated) 42.23 48.50 43.57 28.69 22.06 16.33
(Units) Price Earnings Ratio 6.20 5.62 7.06 12.03 13.20 16.83
Urea (metric tons) 1,954,528 2,104,722 2,263,806 2,003,035 1,928,080 1,806,977 Price to Book Ratio 0.63 0.65 0.81 1.02 0.90 0.93
NPK (metric tons) 137,075 144,564 140,552 134,784 132,790 109,059 Dividend Yield Ratio 13% 10% 7% 9% 8% 7%
PVC Resin (metric tons) 239,000 243,000 153,000 197,000 202,000 187,000 Dividend Payout Ratio 81% 54% 57% 87% 95% 129%
EDC (metric tons) 102,000 94,000 79,000 110,000 107,000 107,000 Dividend Cover Ratio 1.24 1.87 1.74 1.15 1.05 0.78
Caustic Soda (metric tons) 97,000 92,000 77,000 105,000 105,000 105,000 Cash Dividend per Share 34.00 26.00 25.00 25.00 21.00 21.00
Caustic Flakes (metric tons) 9,000 8,000 2,000 4,000 - - Market Value per Share at the end of the year; and 262.01 272.42 307.36 345.25 291.08 274.75
VCM (metric tons) 219,000 203,000 148,000 184,000 195,000 180,000 - High during the year 298.40 319.90 366.00 351.54 350.22 399.16
Power (mega hours) 4,454,669 5,086,123 4,582,884 3,097,604 1,526,309 1,737,394 - Low during the year 225.30 265.31 237.65 226.14 280.30 253.43
Dairy and Juices (liters in thousands) 373,722 334,986 314,979 328,627 281,903 320,344 Breakup value per share 417.56 421.41 381.13 338.88 322.11 296.92
Drying Unit of Rice Processing Plant (metric tons) 87,856 148,839 132,115 93,689 77,008 59,371
Ice Cream (liters in thousands) 29,392 24,218 18,157 21,392 18,254 17,467 Capital Structure Ratios:
Financial Leverage Ratio 0.90 0.77 0.78 0.89 0.74 0.59
Weighted Average Cost of Debt 14% 10% 12% 9% 5% 6%
Debt to Equity Ratio - Book Value 0.76 0.67 0.72 0.81 0.71 0.53
Debt to Equity Ratio - Market Value 1.22 1.04 0.89 0.80 0.86 0.63
Interest Cover Ratio 3.37 5.12 3.61 4.14 7.68 6.34
Debt to Asset Ratio 0.25 0.25 0.27 0.29 0.33 0.28
Retention Ratio 19% 46% 43% 13% 5% -29%
Sustainable Growth Rate 6% 9% 7% 2% 0% -2%

financial analysis and
graphical presentation 320,000
Non-Current & Current Liabilities (in millions)
of consolidated statement of financial position 268,833

270,000
217,625 221,336
205,280 239,998
shareholders' equity 220,000
Share Capital has increased from Rs. 5,238 million to Rs. 5,762 million in 2019 due to issuance of 170,000
129,799 180,186
bonus shares in 2019 with the ratio of 1 share for every
120,000 149,716
10 shares held. Reserves have increased significantly due to better profitability and Energy projects 89,258 143,267
coming online in mid 2019. 70,000
63,528 77,769
Debt / Equity 20,000
65% (30,000) 2017 2018 2019 2020 2021 2022

59% 58% 60%
55% 57%
Non-Current Liabilities Current Liabilities
current liabilities
43%
45% 42%
41% 40%
Liabilities have increased by 49% vs. last year which is mainly due to increase in short term borrowings
35% and trade and other payables.
Considering the 6 years trend, current liabilities has increased from Rs. 63,528 million to Rs. 268,833
million which includes increase in trade and other payables by Rs. 89,599 million. Trade and other
payables as at December 31, 2022 mainly comprise of payable to SECMC against purchase of coal
and increase in advances from customers. Also liabilities have increased by Rs. 6,993 million due to
2017 2018 2019 2020 2021 2022 increase in provisions (in respect of GIDC). In 6 years, short term borrowings increased by Rs. 22,900
million (to provide liquidity to polymer and energy segments). Subsequent to the adoption of IFRS-16
Equity Debt
in 2019, lease liability has been recorded and current portion amounts to Rs. 9,047 million as at
December 31, 2022.
non-current liabilities
non-current assets
Non-current liabilities majorly comprise of Long-Term borrowings from Financial Institutions, Deferred
Taxation and Lease Liabilities.
Non-current assets have increased by 16% compared to last year which pertains to expansion in
Polymer and Enfrashare businesses.
Considering the 6 years trend, borrowings has increased from Rs. 78,850 million to Rs. 156,173 million
to fund business expansion in Energy, Connectivity & telecommunication and Polymer verticals.
Furthermore, right of use assets were recognised against lease agreements entered by Enfrashare with
Deferred tax liability has increased from Rs. 10,682 million to Rs. 13,395 million. Deferred tax liability as
landlords in respect of tenanted sites.
at December 31, 2022 is mainly represented by temporary differences due to accelerated depreciation
allowance.
Non-current assets increased from Rs. 196,637 million to Rs. 442,161 million in last 6 years which
consist of an increase in PPE by Rs. 172,522 million (mainly capitalization of Thar Power Project),
Liabilities have increased by 8% vs. last year. Subsequent to the adoption of IFRS-16 in 2019, lease
increase in Net Investment in Lease by Rs. 52,160 million (sub-letting of FSRU in Elengy).
liability of Rs. 62,369 million has been recorded as at December 31, 2022.

Current & Non-current Assets (Amount in Millions)
800,000
700,000
600,000 307,254
264,146
500,000
206,077 226,496
400,000
152,361
300,000
127,223
200,000 442,161
353,990 380,175
344,168
100,000 196,637 240,794
2017 2018 2019 2020 2021 2022
Non-Current Assets Current Assets
current assets
Current assets increased by 16% compared to last year. Considering the 6 years trend, the increase in
current assets from Rs. 127,233 million to Rs. 307,254 million is due to increase in Short term
Investment of Rs. 3,733 million, increase in Trade Debts by Rs. 20,303 million (increase in Energy
related receivables) and other receivables by Rs. 10,181 million (includes subsidy receivable from GoP,
sales tax receivable and delayed payment interest receivable in energy business).

enabling growth
financial analysis and other income
graphical presentation Income has Increased by 79% vs. LY which is mainly due to increase in income on deposits and other
financial assets by Rs. 6,442 million, delayed payment income by Rs. 1,531 million and reversal of
of consolidated statement of profit or loss impairment by Rs. 1,458 million.
Over the period of 6 years, income has increased mainly due to delayed payment charges on overdue
receivables and income form financial assets.
revenue Other Income
25,000
Revenue has increased by 14% (CY: 356,428 vs LY: 311,587). The main contributor in the revenue is 21,874
Polymer, Fertilizer and Power & Mining segment.
20,000
17,738
Considering the 6 years trend, the consolidated revenue has an increasing trend from 2017 and
onward mainly contributed by Fertilizer segment and Power & Mining segment (Thar power project
15,000 13,643
started contributing in the consolidated revenue from 2019). 12,222
10,489
cost of revenue 10,000 9,147
Cost of revenue has increased by 19% (CY:252,911 vs LY:212,133). Cost trend of last 6 years is in line
with the variation in revenue. 5,000
-
Gross Profit Analysis (Amount in Millions)
2017 2018 2019 2020 2021 2022
finance cost
400,000
356,428
Finance cost has Increased by 66% (CY: Rs. 28,744 million vs LY: Rs. 17,274 million). The main reason
350,000 is increase in interest expense of Polymer, Fertilizer, Connectivity & Telecom and Power and Mining
311,587
segment owing to repayment of loans.
300,000
248,818 252,911 Considering the 6 year trend, finance cost of the group has increased significantly from 2018 due to
250,000 225,765 increased borrowings in Polymer and Energy segment to fund new projects. Thar power plant
212,133
commenced operations in July 2019 and borrowing cost is accordingly expensed in profit or loss
200,000 171,568 172,773 statement.
157,167 Finance Cost
150,000 128,593 120,460 35,000
99,455
93,786 68,599 76,045 103,517 28,744
100,000
51,108 30,000
34,806
50,000
25,000
- 20,473
2017 2018 2019 2020 2021 2022 20,000
17,274
14,750
Revenue Cost of Sale Gross Profit 15,000
10,000
5,131 5,453
5,000
2017 2018 2019 2020 2021 2022

taxation
financial analysis and
Tax expense has increased by 18% vs.LY mainly due to incidence of super tax on current and prior
income partially offset by lower PBT of EFERT and EPCL.
graphical presentation
of consolidated statement of cash flow
6 years trend shows steady increase in tax due to increase in profitability of the group.
cash flow from operating activities
PBT vs Tax Expense Cash inflows from operations have increased by 58% (CY: Rs.76,720 million vs. LY: Rs.48,754 million).
This mainly pertains to increase in stock in trade by Rs. 13,746 million and increase in trade and other
80,000 payables by Rs. 36,640 million. Trade debts have decreased by Rs. 12,063 million and taxes paid have
71,240 increased by Rs. 5,940 million vs LY as in 2021.
68,201
70,000
60,000
The cashflow from operations in last 6 years has significantly increased mainly due to increase in
53,421
profitability of Fertilizer segment, turnaround of Polymer business and Energy projects coming online
50,000 46,297 from July 2019.
36,427
40,000
27,422 Net Cashflow from Operating Activities
30,000
15,710 18,657 22,090 90,000
20,000
11,132 12,795
80,000 76,720
10,000 9,030
70,000 63,392
2017 2018 2019 2020 2021 2022 60,000 48,574
Profit Before tex Taxation 50,000
38,866
40,000
28,940
30,000 21,120
20,000
10,000
-
2017 2018 2019 2020 2021 2022

cash flow from investing activities cash flow from financing activities
Net cash outflow from investing activities has significantly increased by 349% vs. LY. This is mainly due Net cash outflow from financing activities has increased by Rs. 9,604 million (CY: Rs.-54,759 million vs
to increase in investments made during the year by Rs. 109,865 million. LY: Rs. -45,155 million). This is mainly due to increased dividend payments by Rs. 8,257 million and
increased finance cost on lease liability by Rs. 3,878 million.
Over the last 6 years, the group has mainly spent on the Energy & Polymer segments.
Considering the 6 years trend, the group has significantly raised finance between 2017 to 2022 through
borrowings to fund its new projects and operations.
Net Cash Flow from Investing Activities
60,000
Net Cash Flow from Financing Activities
40,000
35,750
20,000 14,213
20,000
10,000
-
3,186
(20,000) (9,008) (7,323) -
(12,397)
(4,632)
(40,000) (10,000)
(60,000)
(20,000)
(80,000) (88,882)
(78,262) (30,000)
(100,000)
(31,774)
2017 2018 2019 2020 2021 2022 (40,000)
(45,155)
(50,000)
(54,759)
(60,000)
2017 2018 2019 2020 2021 2022

statement of value addition
& distribution
Rs. in million
2022 2021
wealth generated
Total revenue inclusive of sales tax and other income 409,914 349,284
Bought-in-material and services (246,176) (202,365)
163,738 146,919
wealth distributed
To Employees
Salaries, benefits and other costs 14,137 8.60% 12,149 8.30%
To Government
Taxes, duties and development surcharge 62,566 38.20% 48,801 33.20%
To Society
Donation towards education, health, environment
and natural disaster 801 0.50% 1,197 0.80%
To Providers of Capital
Dividend to shareholders 37,042 22.60% 29,751 20.20%
Mark-up/interest expense on borrowed money 28,744 17.60% 17,274 11.80%
Retained for reinvestment and future growth

Depreciation, amortization and retained profit 20,448 12.50% 37,747 25.70%
163,738 100.00% 146,919 100.00%

enabling growth
investor
dupont analysis relations
financial calendar
(Amount in Rs. 000's)
15% Financial Year ended December 31, 2022
Return
on equity April 21, 2022 Announcement of first quarter results
August 16, 2022 Announcement of second quarter results
October 18, 2022 Announcement of third quarter results
February 15, 2023 Announcement of fourth quarter results
3% 4.56
Return Equity March 30, 2023 57th Annual General Meeting
on assets multiplier
Financial Year ended December 31, 2023
April 19, 2023 Announcement of first quarter results

7% 48% 749,415 164,281
Net profit Asset Total Owner's
August 16, 2023 Announcement of second quarter results
margin turnover assets equity October 23, 2023 Announcement of third quarter results
February 15, 2024 Announcement of fourth quarter results
24,332 356,428 356,428 749,415 Trading Performance During the Financial Period 2022
Net Profit Sales Sales Total
(owner's share) Assets Opening price 276.38
Closing price 262.01
Highest closing price 296.23
Lowest closing price 227.64
Average daily volume traded (million shares) 0.41
Total Shareholder Return*
1- year period (01 January 2022 to 31 December 2022) 8.68%

3 - year period (01 January 2020 to 31 December 2022) 0.17%
5 - year period (01 January 2018 to 31 December 2022) 9.40%
* Total returns are computed based on the closing unit price on the last trading day of the preceding
reporting period, compared with the closing unit price on the last trading day of the current period.

standalone
accounts
independent auditor’s report How the matter was addressed
Key audit matter in our audit
to the members of engro corporation limited
report on the audit of the financial statements income tax matters
opinion (Refer note 26 to the financial statements) Our audit procedures amongst others included
the following:
We have audited the annexed financial statements of Engro Corporation Limited (the Company), which comprise The Company has recognized provisions and
the statement of financial position as at December 31, 2022, and the statement of profit or loss and other has disclosed contingent liabilities in respect of ● obtained and examined details of the
comprehensive income, the statement of changes in equity, the statement of cash flows for the year then ended, certain income tax matters, which are documentation relating to pending tax
and notes to the financial statements, including a summary of significant accounting policies and other pending adjudication before various appellate matters and discussed the same with the
explanatory information, and we state that we have obtained all the information and explanations which, to the and legal forums. Company’s management;
best of our knowledge and belief, were necessary for the purposes of the audit.
Provisions and contingencies require ● circularized confirmations to the Company's
In our opinion and to the best of our information and according to the explanations given to us, the statement of management of the Company to make external legal and tax advisors for their
financial position, the statement of profit or loss and other comprehensive income, the statement of changes in judgements and estimates in relation to the views on matters being handled by them;
equity and the statement of cash flows together with the notes forming part thereof conform with the accounting interpretation of laws, statutory rules,
and reporting standards as applicable in Pakistan and give the information required by the Companies Act, 2017 regulations, and the probability of outcome and ● involved internal tax professionals to assess
(XIX of 2017), in the manner so required and respectively give a true and fair view of the state of the Company's financial impact, if any, on the Company in management's conclusions on contingent
affairs as at December 31, 2022 and of the profit and other comprehensive loss, the changes in equity and its respect of such provisions and contingencies. tax matters and evaluated the consistency
cash flows for the year then ended. of such conclusions with the views of
Due to significance of amounts involved, management and external advisors
basis for opinion inherent uncertainties with respect to the engaged by the Company;
outcome of these matters and use of
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. significant management judgement and ● checked correspondence of the Company
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of estimates to assess the same including related with the relevant tax authorities including
the Financial Statements section of our report. We are independent of the Company in accordance with the financial impacts, we have considered judgments or orders passed by the
International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants as adopted provisions and contingent liabilities relating to competent authorities in relation to the
by the Institute of Chartered Accountants of Pakistan (the Code) and we have fulfilled our other ethical income tax involving the Company as a key issues involved or matters which have
responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient audit matter. similarities with the issues involved;
and appropriate to provide a basis for our opinion.
● checked mathematical accuracy of the
key audit matters calculations underlying the provisions, if any;
and
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit of the ● assessed the adequacy of the related
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion disclosures made in the financial statements
on these matters. in accordance with the applicable
accounting and reporting standards.

information other than the financial statements and consolidated financial statements and Misstatements can arise from fraud or error and are considered material if, individually or in the
auditor’s reports thereon aggregate, they could reasonably be expected to influence the economic decisions of users taken on
Management is responsible for the other information. The other information comprises the information the basis of these financial statements.
included in the annual report, but does not include the financial statements and consolidated financial
statement and our auditor’s reports thereon. As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon. ● Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
In connection with our audit of the financial statements, our responsibility is to read the other evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
information and, in doing so, consider whether the other information is materially inconsistent with the detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
financial statements or our knowledge obtained in the audit or otherwise appears to be materially fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
misstated. If, based on the work we have performed, we conclude that there is a material misstatement internal control.
of this other information, we are required to report that fact. We have nothing to report in this regard.
● Obtain an understanding of internal control relevant to the audit in order to design audit procedures
responsibilities of management and board of directors for the financial statements that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with the accounting and reporting standards as applicable in Pakistan and the ● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
requirements of Companies Act, 2017 (XIX of 2017) and for such internal control as management estimates and related disclosures made by management.
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error. ● Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
In preparing the financial statements, management is responsible for assessing the Company’s ability or conditions that may cast significant doubt on the Company’s ability to continue as a going
to continue as a going concern, disclosing, as applicable, matters related to going concern and using concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
the going concern basis of accounting unless management either intends to liquidate the Company or auditor’s report to the related disclosures in the financial statements or, if such disclosures are
to cease operations, or has no realistic alternative but to do so. inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Company
Board of directors are responsible for overseeing the Company’s financial reporting process. to cease to continue as a going concern.
auditor’s responsibilities for the audit of the financial statements ● Evaluate the overall presentation, structure and content of the financial statements, including the
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole disclosures, and whether the financial statements represent the underlying transactions and
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that events in a manner that achieves fair presentation.
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs as applicable in Pakistan will always detect a material We communicate with the board of directors regarding, among other matters, the planned scope and
misstatement when it exists. timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.

We also provide the Board of directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the board of directors, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
report on other legal and regulatory requirements

Based on our audit, we further report that in our opinion:
(a) proper books of account have been kept by the Company as required by the Companies Act,
2017 (XIX of 2017);
(b) the statement of financial position, the statement of profit or loss and other comprehensive
income, the statement of changes in equity and the statement of cash flows together with the
notes thereon have been drawn up in conformity with the Companies Act, 2017 (XIX of 2017) and
are in agreement with the books of account and returns;
(c) investments made, expenditure incurred and guarantees extended during the year were for the
purpose of the Company’s business; and
(d) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was
deducted by the Company and deposited in the Central Zakat Fund established under section7 of
that Ordinance.
The engagement partner on the audit resulting in this independent auditor’s report is Salman Hussain.
A.F. Ferguson & Co.

Chartered Accountants
Karachi
Date: 08 March, 2023 UDIN: AR2022101134nVCp6rBk

enabling growth
statement of statement of profit or loss and
financial position other comprehensive income
for the year ended december 31, 2022 for the year ended december 31, 2022
(Amounts in thousand) 2022 2021 (Amounts in thousand except for earnings per share)
Note -------------Rupees--------------- 2022 2021
Assets Note --------------Rupees------------
Non-current assets
Property, plant and equipment 4 983,764 771,023 Dividend income 20 22,174,693 19,399,463
Right-of-use assets 5 970,153 263,413 Royalty income 21 1,328,906 1,284,441
Intangible assets 6 123,807 194,686
Long term investments 7 46,835,094 46,835,094 23,503,599 20,683,904
Long term loans and advances 8 5,372,573 384,154
Deferred taxation 9 475,159 73,537 Administrative expenses 22 (4,455,338) (2,739,030)
54,760,550 48,521,907
Current assets 19,048,261 17,944,874
Loans, advances, deposits and prepayments 10 2,817,736 11,346,072 Other income 23 7,549,556 4,761,464
Receivables 11 1,316,708 784,106 Other operating expenses 24 (2,992,924) (2,414,054)
Short term investments 12 47,604,776 40,247,237
Cash and bank balances 13 165,977 855,323 Operating profit 23,604,893 20,292,284
51,905,197 53,232,738
Finance cost 25 (87,190) (50,823)
Total Assets 106,665,747 101,754,645
Profit before taxation 23,517,703 20,241,461
Equity and Liabilities
Taxation 26 (2,321,283) (1,725,308)
Equity
Profit for the year 21,196,420 18,516,153
Share capital 14 5,761,633 5,761,633
Share premium 13,068,232 13,068,232 Other comprehensive loss
General reserve 4,429,240 4,429,240
Remeasurement of post employment benefits - Actuarial loss (39,773) (18,484) Items that will not be reclassified to profit or loss
Remeasurement of investments (854,981) - - Remeasurement of retirement benefit
Unappropriated profit 68,900,878 67,294,008 obligation - Actuarial loss 29.2.7 (21,289) (2,109)
Total equity 91,265,229 90,534,629 Items that will be reclassified to profit or loss
Liabilities - Remeasurement of investments 12.2 (854,981) -
Non-current liabilities (876,270) (2,109)
Retirement and other service benefit obligations 43,345 59,220 Total comprehensive income for the year 20,320,150 18,514,044
Lease liabilities 15 937,359 17,673
980,704 76,893 Earnings per share - basic and diluted 27 36.79 32.14
Current liabilities
The annexed notes from 1 to 40 form an integral part of these financial statements.
Trade and other payables 16 5,398,425 4,840,491
Current portion of lease liabilities 15 214,074 339,073
Taxes payable 8,571,977 5,721,720
Unclaimed dividends 18 235,338 241,839
14,419,814 11,143,123
15,400,518 11,220,016
Contingencies and commitments 19
Total Equity and Liabilities 106,665,747 101,754,645
Muhammad Abdul Aleem Mazhar Abbas Hasnani Ghias Khan Muhammad Abdul Aleem Mazhar Abbas Hasnani Ghias Khan
Director Chief Financial Officer President & CEO Director Chief Financial Officer President & CEO

statement of statement of
changes in equity cash flows
(Amounts in thousand) Reserves (Amounts in thousand)

Capital Revenue 2022 2021
Share Share General Remeasurement Remeasurement Unappropriated Total Note -------------Rupees-------------
capital premium reserve of post of investments profit Cash flows from operating activities
employment
benefits - Cash utilized in operations 30 (6,788,931) (4,148,066)
Actuarial Royalty received 1,249,917 1,178,244
gain / (loss)
-----------------------------------------------------------------------------------------------Rupees------------------------------------------------------------------------------------------------
Taxes paid (806,851) (826,950)
Proceeds from sale of tax losses 934,203 -
Balance as at January 1, 2021 5,761,633 13,068,232 4,429,240 (16,375) - 63,758,171 87,000,901 Retirement and other service benefits paid (5,204) (36,617)
Profit for the year - - - - - 18,516,153 18,516,153 Long term loans and advances - net (13,419) 53,398
Other comprehensive loss - - - (2,109) - - (2,109)
Net cash utilized in operating activities (5,430,285) (3,779,991)
- - - (2,109) - 18,516,153 18,514,044
Cash flows from investing activities
Transactions with owners
Final cash dividend for the year ended Dividends received 22,174,693 23,156,023
December 31, 2020 @ Rs. 2.00 per share - - - - - (1,152,327) (1,152,327) Income on deposits and other financial assets including income
Interim cash dividends for the year ended earned on subordinated loans to subsidiaries 5,120,417 3,675,754
December 31, 2021 : Investment in shares of subsidiary company - (20,656,050)
- 1st interim @ Rs. 12.00 per share - - - - - (6,913,959) (6,913,959) Loan disbursed to subsidiary companies (19,540,000) (14,450,000)
Repayment of loan by subsidiary companies 23,777,000 19,350,000
- 2nd interim @ Rs. 7.00 per share - - - - - (4,033,142) (4,033,142) Purchase of Treasury bills, Units of Mutual Funds, Fixed income
- 3rd interim @ Rs. 5.00 per share - - - - - (2,880,888) (2,880,888) placements and Pakistan Investment Bonds (605,128,276) (336,669,333)
Proceeds from sale of Treasury bills, Units of Mutual Funds,
- - - - - (14,980,316) (14,980,316)
fixed income placement and Pakistan Investment Bonds 560,993,617 366,337,980
Purchases of property, plant and equipment (422,681) (373,602)
Balance as at December 31, 2021 5,761,633 13,068,232 4,429,240 (18,484) - 67,294,008 90,534,629 Sale proceeds on disposal of property, plant and equipment 76,527 10,314
Profit for the year - - - - - 21,196,420 21,196,420 Purchases of intangibles (3,504) (129,354)
Other comprehensive loss - - - (21,289) (854,981) - (876,270)
Net cash (utilized in) / generated from investing activities (12,952,207) 40,251,732
- - - (21,289) (854,981) 21,196,420 20,320,150
Cash flows from financing activities
Final cash dividend for the year ended Payment of financial charges (25,381) (27,443)
December 31, 2021 @ Rs. 1.00 per share - - - - - (576,163) (576,163) Lease rentals paid (247,354) (305,872)
Interim cash dividends for the year ended Dividends paid (19,596,051) (15,007,130)
December 31, 2022 :
- 1st interim @ Rs. 12.00 per share - - - - - (6,913,959) (6,913,959) Net cash utilized in financing activities (19,868,786) (15,340,445)
- 2nd interim @ Rs. 11.00 per share - - - - - (6,337,796) (6,337,796) Net (decrease) / increase in cash and cash equivalents (38,251,278) 21,131,296
- 3rd interim @ Rs. 10.00 per share - - - - - (5,761,632) (5,761,632)
- - - - - (19,589,550) (19,589,550)
Cash and cash equivalents at beginning of the year 41,101,610 19,970,314
Balance as at December 31, 2022 5,761,633 13,068,232 4,429,240 (39,773) (854,981) 68,900,878 91,265,229 Cash and cash equivalents at end of the year 31 2,850,332 41,101,610

notes to the Where provisions of and directives issued under the the Act differ from the IFRSs, the provisions
of and directives issued under the Act have been followed.
financial statements
2.1.3 Initial application of a Standard, Amendment or an Interpretation to existing Standards
for the year ended december 31, 2022
a) Amendments to accounting and reporting standards that became effective during the year:
1 legal status and operations There were certain amendments and interpretations to published accounting and reporting
1.1 Engro Corporation Limited (the Company), is a public listed company incorporated in Pakistan. standards that are applicable for the financial year beginning on January 1, 2022 but does
Its shares are quoted on Pakistan Stock Exchange Limited. The Company is a subsidiary of not have any significant impact on the Company’s financial reporting and, therefore, have not
Dawood Hercules Corporation Limited (the Parent Company). The principal activity of the been disclosed in these financial statements.
Company is to manage investments in subsidiary companies, associated companies and joint
venture, engaged in fertilizers, power generation, telecommunications infrastructure, b) Amendments to published approved accounting and reporting standards which are not yet
petrochemicals, mining, food, LNG and chemical storages. effective but have been early adopted by the Company:
1.2 These financial statements denote the standalone financial statements of the Company in which IFRS 16 'Leases' - The amendment permits lessees, as a practical expedient, not to assess
investments in subsidiaries have been accounted for at cost less accumulated impairment whether particular rent concessions occurring as a direct consequence of the pandemic are
losses, if any. The consolidated financial statements of the Company and its subsidiaries have lease modifications and instead to account for those rent concessions as if they are not lease
been presented seperately. Details of investments held by the Company in its subsidiaries have modifications.
been presented in note 7.
The Company has applied the practical expedient to all qualifying rent concessions granted
1.3 The business units of the Company include the following: in relation to office space acquire under rental basis. As a result, Rs. 12,729 (2021: Rs.
24,205) has been recognized in the statement of profit or loss and other comprehensive
Business Unit Geographical Location income to reflect changes in lease payments arising from rent concessions that meet the
conditions of the practical expedient.
Head / Registered Office 6th and 8th floors, The Harbour Front Building, Plot Number
HC # 3, Marine Drive, Block 4, Clifton, Karachi. c) Standard and amendments to accounting and reporting standards that are not yet effective
Islamabad Office 22nd floor, Ufone Tower Jinnah Avenue, Blue Area, Islamabad. and have not been early adopted by the Company:
2 summary of significant accounting policies The following new standards are not effective for the financial year beginning on January 1,
2019 and have not been early adopted by the Company:
The significant accounting policies applied in the preparation of these financial statements are
set out below. These policies have been consistently applied to all the years presented, unless
There is a standard and certain amendments to accounting and reporting standards that are
otherwise stated.
not yet effective and have not been early adopted by the Company for the financial year
beginning on January 1, 2022. The standard and amendments are not expected to have any
2.1 Basis of preparation
material impact on the Company’s financial reporting and, therefore, have not been
2.1.1 These financial statements have been prepared under the historical cost convention as modified disclosed in these financial statements.
by remeasurement of certain financial assets and liabilities at fair value and recognition of certain
staff retirement and other services benefits at present value. 2.2 Property, plant and equipment
These are stated at historical cost less accumulated depreciation and impairment losses, if any,
2.1.2 These financial statements have been prepared in accordance with the accounting and
except capital work-in-progress which is stated at cost less impairment losses, if any. Historical
reporting standards as applicable in Pakistan. The accounting and reporting standards
cost includes expenditure that is directly attributable to the acquisition of the items including
applicable in Pakistan comprise of:
borrowing costs (note 2.19). The cost of self constructed assets includes the cost of materials,
direct labour, any other costs directly attributable to bringing the asset to a working condition for
- International Financial Reporting Standards (IFRSs) issued by the International Accounting
its intended use, and the costs of dismantling and removing the items and restoring the site on
Standards Board (IASB) as notified under the Companies Act, 2017 (the Act); and
which they are located. Purchased software that is integral to the functionality of the related
equipment is capitalized as part of that equipment.
- Provisions of and directives issued under the Act.
Where major components of an item of property, plant and equipment have different useful lives,
they are accounted for as separate items of property, plant and equipment.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate Expenditure on research (or the research phase of an internal project) is recognized as an
asset, as appropriate, only when it is probable that future economic benefits associated with the expense in the year in which it is incurred.
item will flow to the Company and the cost of the item can be measured reliably. The carrying
amount of any component accounted for as a separate asset is derecognized when replaced. Development costs incurred on specific projects are capitalized when all the following conditions
All other repairs and maintenance are charged to the statement of profit or loss and other are satisfied:
comprehensive income during the financial year in which they are incurred.
a) completion of the intangible asset is technically feasible so that it will be available for use
Disposal of asset is recognized when significant risks and rewards incidental to ownership have or sale;
been transferred to buyers. Gains and losses on disposals are determined by comparing the
proceeds with the carrying amount and are recognized within ‘Other operating expenses / b) the Company intends to complete the intangible asset and use or sell it;
income’ in the statement of profit or loss and other comprehensive income.
c) the Company has the ability to use or sell the intangible asset;
Depreciation is charged to the statement of profit or loss and other comprehensive income
using the straight line method whereby the cost of an operating asset less its estimated residual d) the intangible asset will generate probable future economic benefits. Among other things
value is written off over its estimated useful life at rates given in note 4.1. Depreciation on this requires that there is a market for the output from the intangible asset or for the
addition is charged from the month following the month in which the asset is available for use intangible asset itself, or if it is to be used internally, the asset will be used in generating
and on disposals upto the preceding month of disposal. such benefits;
The assets' residual values, the method of depreciation and useful lives are reviewed and e) there are adequate technical, financial and other resources to complete the development
adjusted, if appropriate, at each reporting date. and to use or sell the intangible asset; and
An asset's carrying amount is written down immediately to its recoverable amount if the assets f) the expenditure attributable to the intangible asset during its development can be
carrying amount is greater than its estimated recoverable amount. measured reliably.
2.3 Intangible assets - Computer softwares 2.4 Right-of-use assets and lease liabilities
a) Acquired At the inception of a contract, the Company assesses whether a contract is, or contains, a lease
These are stated at cost less accumulated amortization and impairment losses, if any. based on whether the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration. Lease terms are negotiated on an individual basis
Costs associated with maintaining computer software programmes are recognized as an and contain a wide range of different terms and conditions. Leases are recognized as
expense when incurred. However, costs that are directly attributable to identifiable software right-of-use assets and corresponding liabilities at the date at which the leased assets are
and have probable economic benefits exceeding one year, are recognized as an intangible available for use by the Company.
asset. Direct costs include the purchase cost of software (license fee) and related overhead
cost. Right-of-use assets are initially measured based on the initial amount of the lease liabilities
adjusted for any lease payments made at or before the commencement date, plus any initial
Expenditure which enhances or extends the performance of computer software beyond its direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or
original specification and useful life is recognized as a capital improvement and added to the to restore the underlying asset or the site on which it is located, less any lease incentive
original cost of the software. received. The right-of-use assets are depreciated on a straight line method over the lease term
as this method most closely reflects the expected pattern of consumption of future economic
Computer software and license cost treated as intangible assets are amortized from the date benefits. The carrying amount of the right-of-use asset is reduced by impairment losses, if any,
the software is put to use on a straight-line basis over a period of ranging from 4 to 8 years. and adjusted for certain remeasurements of the corresponding lease liability.
Amortization on addition is charged from the month following the month in which the asset
is available for use and on disposals upto the preceding month of disposal. The lease liabilities are initially measured at the present value of the remaining lease payments at
the commencement date, discounted using the interest rate implicit in the lease, or if that rate
b) Internally generated cannot be readily determined, the Company's incremental borrowing rate.
The cost of an internally generated intangible asset comprises all directly attributable costs Lease payments include fixed payments, variable lease payments that are based on an index or
necessary to create, produce and prepare the asset to be capable of operating in the a rate, amounts expected to be payable by the lessee under residual value guarantees, the
manner intended by the management. After initial recognition, internally generated intangible exercise price of a purchase option if the lessee is reasonably certain to exercise that option,
assets are carried at cost less accumulated amortization and impairment losses, if any. payments of penalties for terminating the lease, if the lease term reflects the lessee exercising
These are amortized using the straight-line basis over a period of 5 years. Amortization on that option, less any lease incentives receivable. The extension and termination options are
addition is charged from the month following the month in which the asset is available for use incorporated in determination of lease term only when the Company is reasonably certain to
and on disposals upto the month preceding the month of disposal. exercise these options.

The lease liabilities are subsequently measured at amortized cost using the effective interest A financial asset is measured at FVOCI if both of the following conditions are met:
method. They are remeasured when there is a change in future lease payments arising from a
change in fixed lease payments or an index or rate, change in the Company's estimate of the a) the financial asset is held within a business model whose objective is achieved by both
amount expected to be payable under a residual value guarantee, or if the Company changes collecting contractual cash flows and selling financial assets; and
its assessment of whether it will exercise a purchase, extension or termination option. The
corresponding adjustment is made to the carrying amount of the respective right-of-use asset, b) the contractual terms of the financial asset give rise on specified dates to cash flows that are
or is recorded in the statement of profit or loss and other comprehensive income if the carrying solely payments of principal and interest on the principal amount outstanding.
amount of that right-of-use asset has been reduced to zero.
A financial asset is measured at FVPL if it is not measured at amortized cost or at FVOCI.
2.5 Investments
Investment in subsidiary, associate and joint venture companies are initially recognized at cost. All financial assets are recognized at the time when the Company becomes a party to the
At subsequent reporting dates, the recoverable amounts are estimated to determine the extent contractual provisions of the instrument. Regular purchases and sales of financial assets are
of impairment losses, if any, and carrying amounts of investments are adjusted accordingly. recognized on trade-date – the date on which the Company commits to purchase or sell the
Impairment losses are recognized as an expense. Where impairment losses subsequently asset. Financial assets at amortized cost are initially recognized at fair value and are
reverse, the carrying amounts of the investments are increased to the revised recoverable subsequently measured at amortized cost using the effective interest method. The amortized
amounts but limited to the extent of initial cost of investments. A reversal of impairment loss is cost is reduced by impairment losses, if any. Interest income and impairment losses are
recognized in the statement of profit or loss and other comprehensive income. recognized in profit or loss. Financial assets carried at FVOCI are initially and subsequently
measured at fair value, with gains and losses arising from changes in fair value recognized in
other comprehensive income / (loss). Financial assets carried at FVPL are initially recorded at fair
2.6 Impairment of non-financial assets
value and transaction costs are expensed in profit or loss. Realised and unrealised gains and
The carrying amounts of non-financial assets are assessed at each reporting date to ascertain losses arising from changes in the fair value of the financial assets and liabilities held at FVPL are
whether there is any indication of impairment. If such an indication exists, the asset’s included in profit or loss in the period in which they arise.
recoverable amount is estimated to determine the extent of impairment loss, if any. An
impairment loss is recognized as an expense in the statement of profit or loss and other Derecognition
comprehensive income. The recoverable amount is the higher of an asset’s fair value less cost
of disposal and value-in-use. Value-in-use is ascertained through discounting of the estimated Financial assets are derecognized when the rights to receive cash flows from the assets have
future cash flows using a discount rate that reflects current market assessments of the time expired or have been transferred and the Company has transferred substantially all the risks and
value of money and the risk specific to the assets. For the purpose of assessing impairment, rewards of ownership. On derecognition of a financial asset, in its entirety, the difference
assets are grouped at the lowest levels for which there are separately identifiable cash flows between the asset’s carrying amount and the sum of the consideration received and receivable
(cash-generating units). is recognized in profit or loss.
An impairment loss is reversed if there is a change in the estimates used to determine the Impairment of financial assets
recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying The Company assesses on a forward looking basis the expected credit losses associated with
amount does not exceed the carrying amount that would have been determined, net of its financial assets carried at amortized cost and FVOCI. The impairment methodology applied
depreciation or amortization, if no impairment loss had been recognized. depends on whether there has been a significant increase in credit risk.
2.7 Financial instruments 2.7.2 Financial liabilities

2.7.1 Financial assets
The Company recognizes a financial liability in its statement of financial position when, and only
Classification, initial recognition and measurement when, it becomes party to the contractual provisions of the instrument. At initial recognition, the
Company measures a financial liability at its fair value minus, in the case of a financial liability not
Financial assets are classified as financial assets at amortized cost, Fair Value through Other at FVPL, transaction costs that are directly attributable to the acquisition or issue of the financial
Comprehensive Income (FVOCI) or Fair Value through Profit or Loss (FVPL). The management liability. Subsequently, financial liabilities are stated at amortized cost.
determines the classification of financial assets at initial recognition based on the Company’s
business model for managing the financial assets and the contractual terms of the cash flows. A financial liability is derecognized when the obligation under the liability is discharged, cancelled
or expired. Where an existing financial liability is replaced by another from the same lender on
A financial asset is measured at amortized cost if both of the following conditions are met: substantially different terms, or the terms of an existing liability are substantially modified, such
an exchange or modification is treated as a derecognition of the original liability and the
a) the financial asset is held within a business model whose objective is to hold financial assets recognition of a new liability, and the difference in respective carrying amounts is recognized in
in order to collect contractual cash flows; and the statement of profit or loss and other comprehensive income.
b) the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.t

2.7.3 Offsetting of financial assets and liabilities 2.13 Income tax
Financial assets and liabilities are offset and the net amount is reported in the statement of The tax expense for the year comprises current and deferred tax. Tax expense is recognized in
financial position when there is a legally enforceable right to offset the recognized amounts and the statement of profit or loss and other comprehensive income, except to the extent that it
there is an intention to settle either on a net basis, or realize the asset and settle the liability relates to items recognized in other comprehensive income or directly in equity, in which case
simultaneously. The legally enforceable right must not be contingent on future events and must tax expense is also recognized in other comprehensive income or directly in equity, respectively.
be enforceable in the normal course of business and in the event of default, insolvency or
bankruptcy of the Company or the Counterparty. 2.13.1 Current
The current income tax charge is based on the taxable income for the year calculated on the
2.8 Receivables basis of tax laws enacted or substantively enacted at the reporting date, and any adjustment to
Receivables are recognized initially at the amount of consideration that is unconditional, unless tax payable in respect of previous years.
they contain significant financing component in which case they are recognized at fair value and
subsequently measured at amortized cost using effective interest method less loss allowance. 2.13.2 Deferred
Deferred tax is recognized using the liability method on all temporary differences arising at the
2.9 Cash and cash equivalents reporting date between the tax base of assets and liabilities and their carrying amounts for
For the purpose of presentation in the statement of cash flows, cash and cash equivalents financial reporting purposes.
includes cash in hand, balance with banks, other short-term highly liquid investments with
original maturities of three months or less that are readily convertible to known amounts of cash Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets
and which are subject to insignificant risk of changes in value, and bank overdrafts, if any. are recognized for all deductible temporary difference recognized to the extent it is probable that
future taxable profits will be available against which the assets may be utilized. Deferred tax
2.10 Share capital assets are reviewed at each reporting date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realized.
Ordinary shares are classified as equity and recognized at their face value. Incremental costs
directly attributable to the issue of new shares or options are shown in equity as a deduction, Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the
net of tax, from the proceeds. period when the asset is realized or the liability is settled, based on the tax rates and tax laws
that have been enacted or substantively enacted at the reporting date.
2.11 Borrowings
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are 2.14 Retirement and other service benefit obligations
subsequently carried at amortized cost. Any difference between the proceeds (net of 2.14.1 Defined contribution plans
transaction costs) and the redemption amount is recognized in the statement of profit or loss
and other comprehensive income over the period of the borrowings using the effective interest A defined contribution plan is a post-employment benefit plan under which an entity pays fixed
method. contribution into a separate entity and will have no legal or constructive obligation to pay further
amounts. Obligations for contributions to defined contribution plans are recognized as an
Borrowings are removed from the statement of financial position when the obligation specified employee benefit expense in the statement of profit or loss and other comprehensive income
in the contract is discharged, cancelled or expired. The difference between the carrying amount when they are due. Prepaid contributions are recognized as an asset to the extent that a cash
of a financial liability that has been extinguished or transferred to another party and the refund or a reduction in future payments is available.
consideration paid, including any non-cash assets transferred or liabilities assumed, is
recognized in the statement of profit or loss and other comprehensive income as other income The Company operates:
or finance costs.
- a defined contribution provident fund for its permanent employees and permanent
Borrowings are classified as current liabilities unless the Company has an unconditional right to employees of its subsidiaries, associates and joint ventures (here-in-after referred to as
defer settlement of the liability for at least 12 months after the reporting date. Group companies). Monthly contributions are made both by the Company, other Group
companies and employees to the fund at the rate of 10% of basic salary;
2.12 Trade and other payables
- a defined contribution pension fund for the benefit of its management employees and
Trade and other payables are recognized initially at fair value and subsequently measured at management employees of its Group companies. Monthly contributions are made by the
amortized cost using the effective interest method. Company and other Group companies to the fund at rates ranging from 12.5% to 13.75%
of basic salary; and
These are classified as current liabilities if payment is due within one year or less or in the normal
operating cycle of the business, if longer. If not, they are presented as non-current liabilities. - a defined contribution gratuity fund for the benefit of management employees and
management employees of its Group companies. Monthly contributions are made by the
Company and other Group companies to the fund at the rate of 8.33% of basic salary.

2.14.2 Defined benefit plans - Mark-up on deposits and other financial assets is recognized on a time proportion basis on
A defined benefit plan is a post-employment benefit plan other than the defined contribution the principal amount outstanding and at the rate applicable.
plan. The Company's net obligation in respect of defined benefit plans is calculated by
estimating the amount of future benefit that employees have earned in return for their service in - Royalty income from subsidiary and associated companies is recognized on an accrual
current and prior years; that benefit is discounted to determine its present value. The calculation basis in accordance with the agreements entered therewith.
is performed annually by an independent actuary using the projected unit credit method.
Remeasurement gains and losses are recognized in other comprehensive income. - Gains and losses arising on sale of investments are included in the statement of profit or loss
and other comprehensive income in the year in which they arise.
The Company operates a defined benefit funded gratuity scheme for its management
employees. - Unrealize appreciation / (loss) in the value of investments classified as 'financial assets at fair
value through profit or loss' are included in the other comprehensive income and profit or
Annual provision is also made under a service incentive plan for certain categories of loss in the year in which they arise.
experienced employees to continue in the Company’s employment.
2.19 Borrowing costs
2.14.3 Employees' compensated absences Borrowing costs are recognized as an expense in the period in which they are incurred except
The Company accounts for compensated absences on the basis of unavailed leave balance of where such costs are directly attributable to the acquisition, construction or production of a
each employee at the end of the year. qualifying asset in which case such costs are capitalized as part of the cost of that asset.
Borrowing costs include exchange differences arising on foreign currency borrowings to the
2.15 Provisions extent these are regarded as an adjustment to borrowing costs.
Provisions are recognized when the Company has a legal or constructive obligation as a result 2.20 Earnings per share
of past events, it is probable that an outflow of resources will be required to settle the obligation
and the amount can be reliably estimated. However, provisions are reviewed at each reporting The Company presents basic and diluted earnings per share (EPS) in respect of its ordinary
date and adjusted to reflect current best estimate. shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders
of the Company by the weighted average number of ordinary shares outstanding during the
2.16 Share based payment transaction year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary
shareholders and the weighted average number of ordinary shares outstanding for the effects of
Cash-settled share-based payments to employees are measured at the fair value of the liability. all dilutive potential ordinary shares.
The fair value determined of the cash-settled share-based payments is recognized as an
employee compensation expense on a straight-line basis over the vesting period. Until the 2.21 Dividend and appropriation to reserves
liability is settled, the fair value of the liability is remeasured at the end of each reporting period
and at the date of settlement, with all changes in fair value recognized in profit or loss for the Dividend and appropriation to reserves are recognized in the financial statements in the period
period. in which these are approved.
2.17 Foreign currency transactions and translation 3. critical accounting estimates and judgements
These financial statements are presented in Pakistan Rupees, which is Company’s functional The preparation of these financial statements in conformity with the above requirements requires
currency. Amounts presented in these financial statements have been rounded off to the nearest the use of certain critical accounting estimates. The accounting estimates will by definition,
thousand, unless otherwise stated. Foreign currency transactions are translated into the seldom equal the related actual results. It also requires management to exercise its judgment in
functional currency using the exchange rates prevailing at the dates of the transactions. Foreign the process of applying the Company’s accounting policies. Estimates and judgments are
exchange gains and losses resulting from the settlement of such transactions, and from the continually evaluated and are based on historical experience and other factors, including
translation of monetary assets and liabilities denominated in foreign currencies at year-end expectations of future events that are believed to be reasonable under the circumstances.
exchange rates are recognized in the statement of profit or loss and other comprehensive Revision to accounting estimates are recognized in the period in which the estimate is revised
income, except where such gains and losses are directly attributable to the acquisition, and in any future periods affected. The areas involving a higher degree of judgment or
construction or production of a qualifying asset, in which case, such gains and losses are complexity, or areas where assumptions and estimates are significant to the financial statements
capitalized as part of the cost of that asset. or that have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year are as follows:
2.18 Revenue recognition
3.1 Impairment of investments in subsidiaries, associates and joint venture
Revenue is recognized to the extent it is probable that the economic benefits will flow to the
Company and the amount of revenue can be measured reliably. Revenue is measured at the fair In making estimates of future cash flows from investments in subsidiaries, associates and joint
value of the consideration received or receivable. Revenue is recognized on the following basis: ventures, the management considers future dividend stream and an estimate of the terminal
value of these investments, which are subject to change.
- Dividend income from investments is recognized when the Company’s right to receive the
payment has been established.

3.2 Income taxes (Amounts in thousand)
In making the estimates for current income taxes payable by the Company, the management
considers the applicable laws and the decisions / judgments of appellate authorities on certain 4.1 Operating assets
Furniture, Vehicles Total
issues in the past. Accordingly, the recognition of deferred tax is also made taking into account
fixture and
these judgments and the best estimates of future results of operations of the Company. equipment
---------------------(Rupees)---------------------
3.3 Provision for retirement and other service benefits obligations As at January 1, 2021
The present value of these obligations depend on a number of factors that are determined on Cost 534,414 352,489 886,903
actuarial basis using a number of assumptions. Further, contributions determination requires Accumulated depreciation (296,583) (123,242) (419,825)
assumptions to be made for future outcomes which mainly include increase in remuneration, Net book value 237,831 229,247 467,078
expected long-term return on plan assets and the discount rate used to convert future cash
flows to current values. Any changes in these assumptions will impact the carrying amount of Year ended December 31, 2021
these obligations. The underlying assumptions are disclosed in note 29.
Opening net book value 237,831 229,247 467,078
3.4 Share based payment transaction
Additions - transfers from capital
The fair value of share-based compensation expense arising from the Long-term Incentive Plan work-in-progress (note 4.2) 197,659 213,196 410,855
(LTIP) is estimated using an appropriate option pricing model. It is recognized as expense from
the date of grant over the vesting period with a corresponding increase in liability. Market Disposals (note 4.4)
conditions upon which vesting is conditioned, is taken into account when estimating the fair Cost (2,915) (11,584) (14,499)
value at measurement date. Vesting conditions, other than market conditions, are not taken into Accumulated depreciation 2,586 4,862 7,448
account when estimating the fair value at the measurement date. Instead, these are taken into (329) (6,722) (7,051)
account by adjusting the number of instruments included in the measurement of the transaction
amount. Depreciation charge (note 4.3) (98,947) (67,965) (166,912)
Net book value 336,214 367,756 703,970

(Amounts in thousand)
2022 2021 As at December 31, 2021
-------------Rupees------------- Cost 729,158 554,101 1,283,259
Accumulated depreciation (392,944) (186,345) (579,289)
4. property, plant and equipment Net book value 336,214 367,756 703,970
Year ended December 31, 2022

Operating assets (note 4.1) 604,260 703,970
Capital work-in-progress (note 4.2) 379,504 67,053 Opening net book value 336,214 367,756 703,970
983,764 771,023
Additions - transfers from capital
work-in-progress (note 4.2) 62,700 99,730 162,430
Disposals (note 4.4)

Cost (3,894) (90,403) (94,297)
Accumulated depreciation 3,782 39,609 43,391
(112) (50,794) (50,906)
Depreciation charge (note 4.3) (119,372) (91,862) (211,234)
Net book value 279,430 324,830 604,260
As at December 31, 2022

Cost 787,964 563,428 1,351,392
Accumulated depreciation (508,534) (238,598) (747,132)
Net book value 279,430 324,830 604,260
Annual rate of depreciation (%) 15 to 20 20 to 25

(Amounts in thousand) (Amounts in thousand)
4.2 Capital work-in-progress Furniture, Advances to Total 4.5 This mainly represents advance paid to suppliers for purchase of operating assets.
fixture and suppliers and
equipment others 2022 2021
---------------------(Rupees)-------------------- -------------Rupees------------
Year ended December 31, 2021 5. right-of-use assets
Balance as at January 1, 2021 44,092 60,214 104,306 Balance as at January 1 263,413 515,010
Additions during the year 186,176 316,780 502,956 Additions during the year 964,527 -
Depreciation charge (note 5.1) (257,787) (251,597)
Transferred to: Balance as at December 31 970,153 263,413
- operating assets (note 4.1) (197,659) (213,196) (410,855)
- intangible assets (note 6) - (129,354) (129,354) 5.1 Depreciation charged on right-of-use assets has been allocated to administrative expenses (note 22) and
Balance as at December 31, 2021 32,609 34,444 67,053 capital-work-in-progress (note 4.2) amounting to Rs. 240,064 (2021: Rs. 227,967) and Rs. 17,723
(2021: Rs. 23,630) respectively.
6. intangible assets
Balance as at January 1, 2022 32,609 34,444 67,053 Represent various computer softwares which are amortized on straight line basis over a period ranging
Additions during the year 98,705 350,889 449,594 from 4 to 8 years. Movement during the year is as follows:
Reclassification - 28,791 28,791
Transferred to: As at January 1, 2021 -----Rupees-----
- operating assets (note 4.1) (62,700) (99,730) (162,430) Cost 184,857
- intangible assets (note 6) - (3,504) (3,504) Accumulated amortization (88,047)
Net book value 96,810
Balance as at December 31, 2022 68,614 310,890 379,504
4.3 Depreciation has been allocated to administrative expenses (note 22) and capital work-in-progress Opening net book value 96,810
amounting to Rs. 205,548 (2021: Rs. 162,427) and Rs. 5,686 (2021: Rs. 4,485) respectively. Additions - Transfers from capital work-in-progress (notes 4.2 and 6.1) 129,354
Amortization charge (note 22) (31,478)
4.4 Details of the operating asset disposed off during the year are as follows:
Accumulated Net book Sale Gain As at January 1, 2022
Description of asset Cost depreciation value Proceeds (note 23)
------------------------------Rupees----------------------------- Cost 314,211
Accumulated amortization (119,525)
Vehicle 5,607 5,046 561 6,800 6,239 Buy Back Policy Mr. Nadir Salaar Qureshi -employee
Vehicle 2,717 731 1,986 2,140 154 Buy Back Policy Mr. Adeel Ibrahim- employee
Vehicle 3,520 249 3,271 3,165 (106) Buy Back Policy Mr. Rehman Ahmed-employee
Vehicle 2,669 265 2,404 2,493 89 Buy Back Policy Mr. Ammad Hassan-employee Year ended December 31, 2022
Vehicle 2,785 592 2,193 2,395 202 Buy Back Policy Mr. Nadir Nasim-employee
Vehicle 15,058 13,552 1,506 11,000 9,494 Buy Back Policy Mr. Eram Hassan-employee
Vehicle 9,202 4,432 4,770 8,600 3,830 Buy Back Policy Mr. Eram Hassan-employee Opening net book value 194,686
Vehicle 5,554 2,203 3,351 3,428 77 Buy Back Policy Mr. Fahad Dar-employee Additions - Transfers from capital work-in-progress (notes 4.2) 3,504
Vehicle 2,882 245 2,637 2,841 204 Buy Back Policy Mr. Zain Farooq-employee
Vehicle 5,554 2,282 3,272 4,258 986 Buy Back Policy Mr. Shahbaz Ahmed Khan-employee
Reclassification (28,791)
Vehicle 3,240 1,285 1,955 2,036 81 Buy Back Policy Mr. Iftikhar Ahmed Dar-employee Amortization charge (note 22) (45,592)
Vehicle 3,267 1,296 1,971 2,332 361 Buy Back Policy Mr. Khawaja Jawwad Hassan-employee Net book value 123,807
Vehicle 4,505 1,085 3,420 2,544 (876) Buy Back Policy Mr. Asad Shaikh-employee
Vehicle 3,074 653 2,421 2,615 194 Buy Back Policy Mr. Abdullah Zubair-employee
Vehicle 2,750 662 2,088 2,420 332 Buy Back Policy Mr. Zouhair Ansari-employee As at December 31, 2022
Vehicle 3,393 577 2,816 2,958 142 Buy Back Policy Mr. Mubeen Ashfaque-employee
Vehicle 2,772 785 1,987 2,438 451 Buy Back Policy Mr. Muhammad Ashar-employee Cost 288,924
Vehicle 5,507 858 4,649 5,498 849 Buy Back Policy Mr. Sualeh Qamar-employee
Vehicle 3,625 359 3,266 3,275 9 Buy Back Policy Miss Tabinda-employee Accumulated amortization (165,117)
Other operating assets
(having net book value less
than Rs. 500 each) 6,616 6,234 382 3,291 2,908 6.1 Includes Company's share of cost incurred in respect of One SAP project which is being amortized over
December 31, 2022 94,297 43,391 50,906 76,527 25,620 a period of 8 years.
December 31, 2021 14,499 7,448 7,051 10,314 3,263

(Amounts in thousand) 7.1 Subsidiary companies
2022 2021 2022 2021
-------------Rupees-------------- -------------Rupees---------------
7. long-term investments Equity Investment Equity Investment
Subsidiary companies - at cost (note 7.1) 47,219,777 47,219,777 % held at cost % held at cost
Less: Provision for impairment (note 7.1.1) (3,900,442) (3,900,442)
43,319,335 43,319,335 Engro Fertilizers Limited
Joint venture company - at cost 751,312,057 (2021: 751,312,057)
Engro Vopak Terminal Limited Ordinary shares of Rs. 10 each 56.27 7,519,968 56.27 7,519,968
45,000,000 (2021: 45,000,000) Ordinary shares
of Rs. 10 each, equity held 50% (2021: 50%) 450,000 450,000
Engro Polymer and Chemicals Limited
Associated company - at cost 510,733,461 (2021: 510,733,461)
FrieslandCampina Engro Pakistan Limited Ordinary shares of Rs. 10 each 56.19 6,685,616 56.19 6,685,616
306,075,948 (2021: 306,075,948)
Ordinary shares of Rs. 10 each, Unquoted
equity held 39.9% (2021: 39.9%) 3,060,759 3,060,759
Engro Energy Limited
Others - at cost - 105,581,016 (2021: 76,274,208)
Ordinary shares of Rs. 10 each 100 3,797,750 100 3,504,682
Arabian Sea Country Club Limited
500,000 (2021: 500,000) Ordinary shares, - Advance against issuance of
of Rs. 10 each, equity held 6% (2021: 6%) 5,000 5,000
46,835,094 46,835,094
Nil (2021: 29,306,808)
Ordinary shares of Rs. 10 each - 100 293,068
3,797,750 3,797,750
Engro Eximp Agriproducts (Private) Limited

- 190,860,900 (2021: 190,860,900)
- 10,000,000 (2021: 10,000,000) Redeemable

Preference shares of Rs.10 each 100 100,000 100 100,000
5,027,000 5,027,000
Elengy Terminal Pakistan Limited
113,493,731 (2021: 113,493,731)
Engro Infiniti (Private) Limited

58,613,140 (2021: 58,613,140)
Engro Eximp FZE

1 (2021: 1) Ordinary share of
AED 1,000,000 each 100 1,972,505 100 1,972,505
Engro Connect (Private) Limited

1,996,500,000 (2021: 1,996,500,000)
47,219,777 47,219,777

7.1.1The movement in provision for impairment during the year is as follows: 8.6 The carrying values of the loans and advances are neither past due nor impaired.
2022 2021 2022 2021

-------------Rupees------------- -------------Rupees-------------
9. deferred taxation
Balance as at beginning and end of the year 3,900,442 3,900,442 Debit / (Credit) balances arising on account of:
- depreciation allowance 37,455 12,800
- provisions 4,392 42,395
- right-of-use of asset (320,150) (51,765)
7.1.2 Represents provision held against the Company's investment in Engro Eximp Agriproducts (Private) - lease liabilities 379,973 70,107
Limited and Engro Infiniti (Private) Limited amounting to Rs. 3,270,092 (2021: Rs. 3,270,092) and Rs. - carried forward tax losses 373,489 -
630,350 (2021: Rs. 630,350) respectively. 475,159 73,537
7.1.3 Certain investments held by the Company have been pledged as explained in note 19. 10. loans, advances, deposits and prepayments
Loans and advances - considered good
2022 2021
-------------Rupees--------------- - Current portion of long term loans and advances to
8. long-term loans and advances executives and other employees (note 8) 6,439 44,304
- Considered good - Loan to subsidiary companies

(note 10.1) 2,335,238 10,827,611
Long term loans and advances to executives
and other employees (notes 8.1, 8.4 and 8.5) 20,083 44,529 2,341,677 10,871,915
Less: Current portion shown under current assets (note 10) 6,439 44,304
13,644 225 Less: Provision for impairment (note 10.4) (13,000) (26,309)
Subordinated loan to subsidiary (notes 8.2 and 8.3) 5,358,929 383,929 2,328,677 10,845,606
5,372,573 384,154
8.1 Reconciliation of the carrying amount of loans Advances 367,723 457,680
and advances to executives and other employees Deposits and prepayments 121,336 42,786
Balance as at January 1 44,529 82,710 2,817,736 11,346,072

Add: Disbursements 106,555 78,929
Less: Repayments / Amortization (131,001) (117,110)
Balance as at December 31 20,083 44,529 10.1 This includes accrued interest amounting to Rs. 1,242,238 (2021: Rs. 522,611). Disbursements /
repayments of loan during the year are as follows:
- loan amounting to Rs. 13,150,000 was further disbursed to Engro Fertilizers Limited, a subsidiary
8.2 Represents subordinated loans availed by Engro Energy Limited, a wholly owned subsidiary company, Company, pursuant to agreement entered into on September 02, 2022. The loan carries mark-up at
pursuant to agreements entered into on December 23, 2022 and December 28, 2021 repayable on the rate of 3-month KIBOR plus 0.1%. Out of the outstanding balance, Rs. 17,350,000 was repaid
December 22, 2024 and December 28, 2024, respectively. The total facility available under these during the period. The balance outstanding as at December 31, 2022 aggregated to Rs. 1,000,000
agreements amount to Rs 6,000,000 and USD 21,400 (PKR equivalent), and carries mark-up at the rate (2021: Rs. 5,200,000);
of 3 months KIBOR plus 0.1% and 6 months KIBOR plus 2% per annum payable on quarterly basis,
respectively. There was no movement in the principal balances of loan during the period. - loan amounting to Rs. 2,000,000 was disbursed to Engro Polymer and Chemicals Limited, a
subsidiary Company, pursuant to agreement entered into on February 01, 2022. The loan carried
8.3 The maximum amount outstanding at the end of any month during the year ended December 31, 2022 mark-up at the rate of 3-month KIBOR plus 0.1% and the same was repaid during the period;
from subsidiary aggregated to Rs. 5,358,929 (2021: Rs. 389,698).
- loan amounting to Rs. 3,100,000 was availed by Engro Powergen Qadirpur Limited, an indirect
8.4 The maximum amount outstanding at the end of any month during the year ended December 31, 2022 subsidiary, pursuant to agreement entered into on April 01, 2022. The loan carried mark-up at the rate
from executives aggregated to Rs. 21,483 (2021: Rs. 61,141). of 3-month KIBOR plus 0.2%. Entire amount was repaid during the year;
8.5 Loans given to employees and executives are in accordance with the Company policy, return free and - loan amounting to Rs. 1,290,000 was disbursed to Engro Connect (Private) Limited, a wholly owned
are repayable within a period of 1 to 5 years. Further, as at year-end, these include loans given to key subsidiary company, pursuant to agreement entered into on June 01, 2022. The loan carried mark-up
management personnel aggregating to Rs. 9,607 (2021: Rs. 8,133). at the rate of 3-month KIBOR plus 0.2% and the same was repaid during the year; and

(Amounts in thousand) (Amounts in thousand) 2022 2021
-------------Rupees-------------
- loan to Engro Infiniti (Private) Limited, a wholly owned subsidiary Company, pursuant to agreement 11. receivables
entered into on June 26, 2019, carries mark-up at the rate of 3-month KIBOR plus 0.2%. Out of the
outstanding balance, Rs. 37,000 was repaid during the year. The balance outstanding as at December Considered good
31, 2022 aggregated to Rs. 93,000 (2021: Rs. 130,000).
Due from:
10.2 The maximum amount outstanding at the end of any month during the year ended December 31, 2022
from subsidiary companies aggregated to Rs. 13,541,691 (2021: Rs. 19,030,207). - Parent Company - Dawood Hercules Corporation Limited 265 -
10.3 The carrying values of the loans and advances are neither past due nor impaired. - Direct / Indirect subsidiary companies
- Engro Energy Limited 78,379 196,401
10.4 The movement in provision for impairment during the year is as follows: - Engro Connect (Private) Limited - 43,012
- Engro Fertilizers Limited 582,395 40,273
- Engro Elengy Terminal (Private) Limited 34,185 36,036
2022 2021 - Engro Infiniti (Private) Limited - 34,099
-------------Rupees------------ - Engro Powergen Thar (Private) Limited 1,253 32,342
- Engro Powergen Qadirpur Limited 28,114 30,376
Balance at beginning of the year 26,309 40,000 - Engro Power Investments International B.V. - 25,064
Provision reversed during the year (13,309) (13,691) - Engro Eximp Agriproducts (Private) Limited 46,154 11,523
Balance at end of the year 13,000 26,309 - Thar Foundation 740 5,048
- Engro Enfrashare (Private) Limited 461 3,262
- EFert Agritrade (Private) Limited 689 2,525
- Engro Peroxide (Private) Limited 1,433 550
- Engro Energy Services Limited 3,767 328
- Think PVC (Private) Limited 452 50
- Engro Plasticizer (Private) Limited 605 23
- Engro Polymer and Chemicals Limited 213,971 -
- Joint venture
- Engro Vopak Terminal Limited 47,554 37,714
- Associated companies
- FrieslandCampina Engro Pakistan Limited - 40,724
- Sindh Engro Coal Mining Company Limited 16,085 14,879
- Thar Power Company Limited 3,483 1,810
1,059,985 556,039
- Engro Foundation - 163

- Retirement benefit funds 125,797 58,605
- Others 130,926 169,299
Considered doubtful
Due from:
- FrieslandCampina Pakistan Holdings B.V. 143,366 143,366

- Financial advisors 46,952 46,952
Less: Provision against doubtful receivables (190,318) (190,318)
- -
1,316,708 784,106

-------------Rupees-------------
13. cash and bank balances
11.1 The maximum amount due from related parties at the end of any month during the year aggregated to
Rs. 1,548,919 (2021: Rs. 956,804). Cash at banks:
In saving accounts
11.2 As at December 31, 2022, receivables from related parties aggregating to Rs. 213,866 (2021: Rs. - conventional (note 13.1) 119,003 446,993
365,866) were past due but not impaired. The ageing analysis of these receivables is as follows: - islamic (note 13.2) 483 973
In current accounts 45,791 406,657
2022 2021 165,277 854,623
-------------Rupees--------------
Cash in hand 700 700
Upto 3 months 123,740 266,723 165,977 855,323
3 to 6 months 13,842 19,405
More than 6 months 76,284 79,738
13.1 These carry return ranging from 8.25% to 14.50% (2021: 5.5% to 8.25%) per annum.
213,866 365,866
13.2 These are shariah compliant bank balances and carry profit at rates ranging from 4% to 9.10% (2021:
12. short-term investments 2.94% to 4.22%) per annum.
Fair value through other comprehensive income 14. share capital

- Pakistan Investment Bonds (notes 12.1 and 12.2) 29,380,322 - 14.1 Authorized capital
Fair value through profit or loss 2022 2021 2022 2021
- Mutual fund units (note 12.3) 3,078,051 950 -------(Number of shares)------- -------(Number of shares)-------
Amortized cost 700,000,000 700,000,000 Ordinary shares of Rs. 10 each 7,000,000 7,000,000
- Treasury bills (note 12.4) 14,799,413 -
- Pakistan Investment Bonds (note 12.1) - 5,642,143 14.2 Issued, subscribed and paid-up capital
- Fixed income placements (note 12.5) 346,990 34,604,144
15,146,403 40,246,287 2022 2021 2022 2021
47,604,776 40,247,237 -------(Number of shares)------- -------(Number of shares)-------
12.1 These Bonds carries yield of 12.75% to 17.56% (2021: 11.33%) per annum and have maturity terms Ordinary shares of Rs. 10 each
ranging between two to ten years. 197,869,803 197,869,803 fully paid in cash 1,978,699 1,978,699
12.2 This amount is net of loss on remeasurement of Pakistan Investment Bonds amounting to Rs. 854,981. Ordinary shares of Rs. 10 each
378,293,427 378,293,427 issued as fully paid bonus shares 3,782,934 3,782,934
12.3 This represents investment in 30,467 units (2021: 90,820 units) of Mutual Funds having cost amounting
to Rs. 3,050,220 (2021: Rs. 950). 576,163,230 576,163,230 5,761,633 5,761,633
12.4 These bills carries yield of 14.75% to 16.87% per annum and have maturity terms ranging from January 14.3 As at December 31, 2022, the Parent Company and associated companies held 214,469,810 and
2023 to September 2023. 39,038,015 (2021: 214,469,810 and 39,038,015) ordinary shares in the Company, respectively.
2022 2021
12.5 These represent placements with banks and carries interest at rates ranging from 14.07% to 16.00% -------------Rupees--------------
(2021: 6.55% to 12.95%) per annum and have maturity terms ranging from January 2023 to October 15. lease liabilities
2023.
Balance at beginning of the year 356,746 629,991
12.6 Certain investments held by the Company are pledged as disclosed in note 19.
Additions in lease 949,468 -
Add: Finance cost (note 25) 105,302 56,832
Less: Lease rental paid (247,354) (305,872)
Less: Rent concession on lease liability (12,729) (24,205)
794,687 (273,245)
Total Lease liabilities 1,151,433 356,746
Less: Current portion shown under current liabilities (214,074) (339,073)

Balance at the end of the year 937,359 17,673

(Amounts in thousand) 2022 2021 (Amounts in thousand)
-------------Rupees--------------
16. trade and other payables 19. contingencies and commitments
Creditors (note 16.1) 264,862 226,232 19.1 Contingencies
Accrued liabilities 3,227,497 3,035,915 19.1.1 As at December 31, 2022, bank guarantees of Rs. 3,801,129 (2021: Rs. 2,732,540) have been issued
in favour of third parties.
Withholding tax payable 63,316 49,976
19.1.2 Following are the details of securities pledged by the Company in favour of Engro Energy Limited (EEL):
Payable to :
- FrieslandCampina Pakistan Holdings B.V. (note 16.2) 932,367 732,762 - Standby Letters of Credit (Equity SBLC) have been provided by EEL, a wholly owned subsidiary,
- Engro Eximp FZE 452,216 371,781 through National Bank of Pakistan amounting to US Dollars 5,660 (2021: US Dollars 8,635) for its
- Dawood Hercules Corporation Limited - 197,074 equity commitments related to the Sindh Engro Coal Mining Company Limited (SECMC), its
- Engro Polymer and Chemicals Limited - 50,468 associated company in favour of the Intercreditor Agent (Habib Bank Limited) and the Project
- Engro Digital Limited - 20,517 Company (i.e. SECMC). Equity SBLC will expire on earlier of (i) October 31, 2023; or (ii) fulfilment of
- Engro Foundation 40,027 - sponsor obligations under Sponsor Support Agreements. This has been secured by the Company
- Engro Power Investments International B.V. 36,887 - by pledging Treasury Bills.
- Engro Infiniti (Private) Limited 11,066 -
- The Dawood Foundation 17,428 - - Standby Letter of Credit (Put Option SBLC) has been provided by EEL, a wholly owned subsidiary
company, through Allied Bank Limited amounting to US Dollars 21,070 (2021: US Dollars 21,070) in
Current portion of retirement and other favour of the Put Option Fronting Bank (Habib Bank Limited). The Put Option SBLC has been
service benefit obligations (note 16.3) 158,132 76,260 furnished to meet sponsor obligations under Sponsor Support Agreement (Put Option SSA) and
expires on earlier of (i) January 31, 2029; or (ii) fulfilment of sponsor obligations pursuant to Put
Others (note 16.4) 194,627 79,506 Option SSA. This guarantee was secured by pledging Company's shares of Engro Fertilizer Limited
5,398,425 4,840,491 (EFERT) and Friesland Campina Engro Pakistan Limited (FCEPL) of quantities 97,000,000 and
25,000,000 respectively.
16.1 Includes directors' fee amounting to Rs. 9,448 (2021: Rs. 2,657). 19.1.3 Engro Elengy Terminal Pakistan Limited has issued SBLCs amounting to US Dollars 22,500 (2021: US
Dollars 22,500). This has been secured by the Company by pledging Treasury Bills.
16.2 Includes an amount recognized in respect of sales tax receivables of FrieslandCampina Engro Pakistan
Limited, matter as more fully explained in note 24.4. 19.1.4 On March 28, 2022, and as supplemented from time-to-time Allied Bank Limited and Faysal Bank
Limited have committed to provide Payment Service Reserve Account (PSRA) SBLCs amounting to US
16.3 Includes liability towards defined benefit gratuity fund amounting to Rs. 86,833 (2021: Rs. 49,135). Dollars 23,316 and Rs. 1,029,044 respectively on behalf of EEL, a wholly owned subsidiary, for its PSRA
commitments related to Engro Powergen Thar (Private) Limited in favour of their project lenders. These
16.4 Includes liability towards Long Term Incentive Plan (LTIP) amounting Rs. 133,993 (2021: Nil). During the SBLCs are partially secured by pledging 53,000,000, 58,000,000 and 33,500,000 shares of Engro
year, the Board of Directors of the Company approved LTIP for granting of cash-settled phantom shares Fertilizer Limited, Engro Polymer and Chemicals Limited and FrieslandCampina Engro Pakistan Limited
to certain executive employees. Under the LTIP, the actual amount of phantom shares that may vest at respectively.
exercise price of nil ranges from 0% to 121% of the awards, depending on the outcomes of prescribed
service and performance conditions over a three-year period. 19.1.5 In the year 2017, FCEPL received an order from the Competition Commission of Pakistan, imposing a
penalty of Rs. 62,293 in respect of FCEPL’s marketing activities relating to one of its products. FCEPL
17. borrowings - secured has filed an appeal against the aforementioned order. As per the terms of the Share Purchase Agreement
with FrieslandCampina Pakistan Holding B.V. (FCP), the Company is required to reimburse 51% of the
The facilities for short term running finance arranged from various banks, amount to Nil (2021: Rs. amount together with all reasonable cost and expenses to FCP in case any such penalty materializes.
1,500,000). The facilities were primarily secured against ranking floating charge over all present and The Company, based on the opinion of the legal advisor, is confident of a favourable outcome of the
future loans, advances, receivables and other current assets (excluding investments) of the Company. appeal, and accordingly, no provision has been recognized in these financial statements in this respect.
Additionally, the facilities were also secured through a pledge over shares of Engro Fertilizers Limited and
FrieslandCampina Engro Pakistan Limited, as well as through Pakistan Investment Bonds. The rate of
mark-up on these finances ranged from one month KIBOR plus 0.5% per annum to one month KIBOR 19.1.6 In the year 2016, the Company entered into a Share Purchase Agreement (SPA) with FCP for the sale of
plus 1% per annum. 47.1% of the total issued shares of FCEPL. In accordance with the terms of the SPA, the Company is
required to pay to FCP, an amount equivalent to 47.1% of any tax liability (as defined in the SPA) together
18. unclaimed dividends with all reasonable costs and expenses incurred, in case any tax contingency materializes. The
Includes unclaimed dividend amounting to Rs. 219,939 (2021: Rs. 225,932) outstanding for more than Company, based on the opinion of FCEPL’s tax and legal advisors, is confident of favourable outcomes
3 years from the date of declaration. Such unclaimed dividend is payable to the Federal Government as in respect of various tax matters being contested by FCEPL, and accordingly no provision has been
per the Act, subject to fulfilment / clarification on certain pre-conditions specified in the Act. recognized in these financial statements in this respect.

19.1.6 For tax related matters refer note 26. 22.4 This includes expense recognized for cash settled share based payment transactions of Rs. 133,993
2022 2021 (2021: Nil) (note 16.4).
-------------Rupees--------------
22.5 The expenses above are net-off recoveries from subsidiaries amounting to Rs. 1,040,762 (2021: Rs.
19.2 Commitments 623,334) in accordance with the expense sharing agreements.
2022 2021
19.2.1 Commitments in respect of capital expenditure 251,063 299,120 -------------Rupees-------------
20. dividend income 23. other income
Subsidiary companies: Financial assets
- Engro Fertilizers Limited 10,142,713 11,645,337
- Engro Energy Limited 1,800,000 - Income on:
- Elengy Terminal Pakistan Limited 1,372,139 418,792 Bank and term deposits 1,944,899 1,262,576
- Engro Polymer and Chemicals Limited 7,916,369 6,152,878 Subordinated loans to subsidiary companies 1,229,333 1,238,709
- Engro Eximp FZE 11,072 27,456 Mutual funds 413,360 350,213
Government securities 3,765,646 1,594,279
Joint venture: 7,353,238 4,445,777
- Engro Vopak Terminal Limited 932,400 1,155,000 Non financial assets
22,174,693 19,399,463
Gain on disposal of property, plant and equipment (note 4.4) 25,620 3,263
21. royalty income Reversal for impairment on loan (note 10.4) 13,309 13,691
Others (note 23.1) 157,389 298,733
The Company has granted Engro Fertilizers Limited, a subsidiary company, the right to use trade marks 7,549,556 4,761,464
and copy rights of the Company for marketing of fertilizer products under a licensing agreement effective
January 1, 2010. 23.1 Includes income received amounting to Rs.155,910 (2021: Rs. 298,412) under Emission Reduction
2022 2021 Purchase Agreement with Holt Global Group International AGHofstrasse entered into on January 24,
-------------Rupees------------- 2020, for the sale of contract Emission Reductions (ERs).
2022 2021
22. administrative expenses -------------Rupees-------------
Salaries, wages and staff welfare (notes 22.1 and 22.2) 1,762,922 1,355,576
Staff recruitment, training and safety 160,969 143,270 24. other operating expenses
Purchased services 43,816 72,513 Auditor's remuneration (note 24.1) 39,463 24,303
Repairs and maintenance 28,785 4,272 Legal and professional charges 140,775 326,205
Advertising, promotion and corporate branding 402,261 228,158 Donations (note 37) 46,264 82,490
Rent, rates and taxes 344,022 157,547 Human resource development (note 24.2) 21,351 165,397
Communication, stationery and other office expenses 239,385 172,236 Research and business development (note 24.3) 2,507,929 1,541,659
Travelling 494,238 84,166 Others (note 24.4) 237,142 274,000
Compensation expense (note 22.4) 133,993 - 2,992,924 2,414,054
Depreciation (note 4.3) 205,548 162,427
Depreciation on right-of-use assets (notes 5 and 22.3) 120,609 114,779 24.1 Auditor's remuneration
Amortization (note 6) 45,592 31,478
Directors' fee, remuneration and travelling 473,198 212,608 Fee for:
- audit of annual financial statements 930 750
4,455,338 2,739,030 - review of half yearly financial statements 310 275
- review of statement of compliance with Code of
22.1 Salaries, wages and other staff welfare is net-off recoveries from subsidiaries amounting to Rs. Corporate Governance 60 35
1,746,044 (2021: Rs. 1,336,773) in accordance with the expense sharing agreements. Certifications and other advisory / assurance
services 26,682 14,902
22.2 Includes Rs. 226,193 (2021: Rs. 168,097) in respect of staff retirement benefits. Taxation services 11,471 7,952
Reimbursement of expenses 10 389
22.3 Depreciation on right-of-use assets is net-off recoveries from subsidiaries amounting to Rs. 119,455 39,463 24,303
(2021: Rs. 113,188) in respect of their share in rent of office premises.

24.2 Represents professional consultancy charges incurred under an agreement, for the development of In 2020, the petition filed by the Company along with other taxpayers against the imposition of Super Tax
human resource strategies and the Engro Leadership Academy. in the High Court of Sindh (HCS) was rejected vide order dated July 21, 2020. The Company, in
consultation with its legal and tax advisors, has filed an appeal against the decision of the HCS in the
24.3 This includes an amount of Rs. 2,158,744 (2021: Rs. 1,422,265) incurred in connection with propane Supreme Court of Pakistan (SCP). Consequent to the High Court judgement, the tax authorities issued
dehydrogenation and polypropylene project. notices to the Company and subsequently framed orders for recovery of Super Tax for tax years 2017 to
2019 with total tax demand of Rs. 2,232,966. Appeal was filed against these orders with the
24.4 Under the Share Purchase Agreement (SPA) with FCP, the Company is required to pay FCP an amount Commissioner Inland Revenue (Appeals) [CIR (Appeals)] on certain contentions and factual grounds. The
equal to 51% of the sales tax receivable of FCEPL, an associated company, recognized in the financial CIR (Appeals) has decided all appeals against the Company and maintained the levy of Super Tax
years 2012 to 2016, if it is not recovered by FCEPL within six years after it is recognized. Accordingly, on considering the HCS judgement. The Company has filed a further appeal before the Appellate Tribunal
prudence basis, the Company has recognized its liability under the SPA equivalent to 51% of the sales Inland Revenue (ATIR) which is pending to be heard.
tax receivable pertaining to FCEPL being sales tax short recovered till December 31, 2022.
In November 2020, SCP granted leave to appeal and passed an interim order restraining the
Respondents from taking any coercive action against the Petitioner taxpayers (including the Company)
2022 2021
subject to them depositing 50% of the impugned outstanding tax amount.
-------------Rupees--------------
The Company has till date paid Super Tax amounting to Rs. 265,389 through adjustments of excess tax
25. finance cost
refunds against the demand for tax years 2018 and 2019. Adequate provision for Super Tax for the
Interest expense on lease liability (note 25.1) 52,904 25,980 respective tax years is being maintained in these financial statements.
Others 34,286 24,843
87,190 50,823 26.4 In 2016, an amendment was introduced in the Income Tax Ordinance 2001, (the Ordinance) via the
Finance Act, 2016 imposing tax on Inter-Corporate Dividends (ICD) which were previously exempt to
companies designated as a Group under section 59B of the Ordinance. Subsequently, in December
25.1 Interest expense is net-off recoveries from subsidiaries amounting to Rs. 52,398 (2021: Rs. 30,852) in 2019, the exemption on ICD was restored through amendment in the Ordinance vide Tax Laws (Second
respect of their share in rent of office premises. Amendment) Ordinance, 2019 (the Amendment Ordinance). However, in respect of the dividends
2022 2021 received before the said amendment, the Company had challenged the imposition of tax on ICD in the
-------------Rupees-------------- HCS and has been granted a stay in this respect.
26. taxation In 2020, the Amendment Ordinance was laid down before the Parliament and enacted as Tax Laws
(Amendment) Act 2020 (the 2020 Act). The 2020 Act ratified the exemption on ICD restored by the
Current Amendment Ordinance, however, the provision granting exemption from application of withholding tax
- for the year (note 26.1) 4,315,977 3,421,559 on ICD, as previously deleted by Finance Act 2016, was not restored. Hence, in respect of the ICD
- for prior years (notes 26.1 and 26.5) (658,869) (1,642,232) received by the Company from its subsidiaries during the year 2020, the Company obtained stay from
S.No Name of Related Party Direct Shareholding % 3,657,108 1,779,327
Relationship
the HCS against deduction of withholding of tax.
1 Deferred (note 26.2)
Dawood Hercules Corporation Limited 37.22%(1,335,825) (54,019)
Holding Company
Subsequently in 2021, the exemption of income tax on ICD was again withdrawn via Tax Laws (Second
2 Engro Eximp Agriproducts (Private) Limited 100.00% 2,321,283 Subsidiary
1,725,308
3 Engro Energy Limited 100.00% Subsidiary Amendment) Ordinance, 2021 in March 2021 and subsequently by Finance Act 2021. The Company has
4 Engro Infiniti (Private) Limited 100.00% Subsidiary again challenged the amendment before the HCS and stay has been granted in this respect. The
26.1
5 This
Engroincludes
Connectan amount
(Private) of Rs. 785,356 and Rs 876,892 on100.00%
Limited account of provision made by the Company Subsidiary management, on prudent basis, has recognized a tax charge of Rs. 9,218,658 (2021: Rs. 6,408,991) in
6 inEngro
accordance with section 4C ‘Super tax on high earning
Fertilizers Limited persons' introduced in the Income
56.27% Tax
Subsidiary these financial statements pertaining to periods during which exemption of income tax on ICD remained
7 Ordinance,
Engro Polymer 2001 through Finance
and Chemicals Limited Act, 2022, whereby a super tax at four percent has been levied
56.19% on
Subsidiary withdrawn.
8 income exceeding
Elengy Terminal Rs.Limited
Pakistan 300,000 for the year ended December 31, 2021 (tax year 2022), December
56.00% 31,
Subsidiary
9 2022
Engro(tax
EximpyearFZE2023) respectively and onwards. 100.00% Subsidiary 26.5 During the year, the Company's management has reassessed its income tax provisions based on the
10 Engro Enfrashare (Private) Limited N/A Indirect subsidiary finalization of its income tax assessments of prior tax years by the income tax department. Upon such
26.2
11 This
Engroincludes amount,
Elengy Terminal in accordance
(Private) Limited with section 59B (Group relief)
N/A of the Income Tax Ordinance, 2001
Indirect subsidiary assessment, the Company's management has recognized a reversal of tax provisions amounting in
12 Engro Power Investments International B.V - Netherlands N/A
where the Company has surrendered its assessed tax losses to its subsidiary companies Indirect subsidiary
for the years aggregate to Rs. 1,444,225 in these financial statements.
13 Engro Powergen
ended December Qadirpur
31, 2019,Limited2020 and 2021 (Tax years 2020 to N/A 2022) for consideration ofIndirect subsidiary
Rs. 426,599,
14 Engro
Rs. Powergen
373,489 and Thar
Rs.(Private)
507,604 Limited
respectively, being equivalent to tax N/Abenefit / effect surrendered
Indirectthereof.
subsidiary
26.6 Following is the position of the Company's open tax assessments:
15 EFERT Agritrade (Private) Limited N/A Indirect subsidiary
16 Engro Energy Services Limited N/A Indirect subsidiary
26.3
17
Through Finance Act 2015, levy of 'Super Tax for rehabilitation of
Engro Power Services Limited N/A
temporarily displaced persons' under
Indirect subsidiary
18
section 4B of the Income
Engro Peroxide (Private) Limited
TaxOrdinance, 2001 was introduced for
N/A
tax year 2015. The said levy was
Indirect subsidiary
19 extended and made applicable
Engro Plasticizer (Private) Limited on succeeding years via subsequent
N/A Finance Acts upto financial year
Indirect subsidiary
20 ended December
Think PVC 31, 2018. In the year 2019, through FinanceN/A
(Private) Limited Supplementary Act, 2019, thesubsidiary
Indirect levy of
21 Super Tax is
Thar Power prescribed
Company Limitedat zero percent from financial year ended N/A December 31, 2019 onwards
Associated companyfor
22 companies
Thar Foundationother than banking companies. N/A Associated company
23 Engro Vopak Terminal Limited 50.00% Joint Venture
24 FrieslandCampina Engro Pakistan Limited 39.90% Associated company
25 Sindh Engro Coal Mining Company Limited N/A Associated company
26 Engro Foundation N/A Associated Entity
27178 Mr. Ghias Khan N/A Key Management Personnel / Director
engro corporation limited annual report 2022 179
28 Mr. Hussain
enabling growth Dawood 2.90% Director enabling growth
29 Mrs. Kulsum Dawood 1.26% Spouse of director
30 Mr. Mohammad Abdul Aleem 0.04% Director
31 Mrs. Humera Aleem 0.01% Spouse of director
26.6.1 In 2013, the income tax department, in respect of the tax year 2011, determined additional income tax 26.6.3 During 2017, the income tax department in respect of the tax year 2015, determined an additional
liability of Rs. 218,790 and raised a demand of Rs. 139,575 whereby the Deputy Commissioner Inland income tax liability of Rs. 128,400, whereby, the Additional Commissioner Inland Revenue (ACIR) - Audit
Revenue (DCIR) - Audit disallowed allocation of expenses against interest income and apportioned has levied tax on inter-corporate dividends, Super Tax including on exempt income, the effects of
expenses against dividend income and capital gains. The Company filed an appeal with the CIR classification of 'Interest Income' as ""Income from Other Sources"" as well as not allowing the
(Appeals) who maintained the apportionment of expenses against dividend income and capital gains but adjustment of the minimum tax paid under section 113(2)(c) of the Ordinance. In the year 2019, the CIR
allowed the allocation of administrative expenses against interest income, thereby reducing the income (Appeals) vide order dated May 6, 2019 has maintained the matter relating to taxation of intercorporate
tax liability to Rs. 184,191 and revised the demand to Rs. 104,976. The Company paid Rs. 53,250 there dividend, Super Tax under section 4B, the classification of the interest income and carry forward of
against and simultaneously filed an appeal against the CIR - Appeals decision with Appellate Tribunal minimum tax for adjustment whereas the rectificatory matters including the levy of Super Tax on exempt
Inland Revenue (ATIR) which granted a stay to the Company. During 2014, the ATIR issued an order income was remanded back. The Company has preferred an appeal before ATIR on all issues
whereby the aforementioned appeal was remanded back to the assessing officers for denovo adjudicated against it.
proceedings, thereby accepting the Company's contention.
The Company, based on the advice of its tax consultant, is confident that these matters will be decided
In 2014, the income tax department in respect of tax year 2012, amended the assessment and raised in favour of the Company. However, on prudence, the Company has recorded provision against Super
an additional demand of Rs. 250,773 on similar grounds as above. The Company filed an appeal against Tax.
the said order with CIR (Appeals), who based on ATIR's order for tax year 2011, has remanded back the
order to assessing officers for denovo proceedings. 26.6.4 In 2017, the ACIR through order dated June 13, 2017 amended the return for the tax year 2016 creating
tax demand of Rs. 1,573,876 mainly on account of tax levied on inter-corporate dividend, Super Tax
During 2015, in respect of pending tax assessments for tax year 2011 and tax year 2012, the Company including on exempt income and disallowance on account of allocation of expenses to dividend and
received notices of demand amounting to Rs. 105,955 and Rs. 250,773, respectively, whereby the capital gains including minimum tax paid under section 113 of the Ordinance. The CIR (Appeals) while
Deputy / Additional Commissioner Inland Revenue – Audit again disallowed allocation of expenses disposing off the Company's appeal maintained the order of ACIR with respect to certain issues which
against interest income and apportioned expenses against dividend income and capital gains. The were further contested before the ATIR. During 2019, the ATIR in its order dated July 31, 2019 has
Company filed appeals thereagainst before the CIR - Appeals and also obtained stays from the HCS annulled the order of ACIR and validated the exemption on intercorporate dividend as well as the
from initiating any recovery proceedings in respect of both tax years. During 2016, in respect of both tax non-applicability of Super Tax on such exempt income whereas the issues relating to the levy of Super
years, the CIR (Appeals) accepted the Company's plea and annulled the order passed by the DCIR. In Tax under section 4B and the carry forward of minimum have been linked to the pending decisions of the
response, the DCIR filed appeals before the ATIR for rectification of the orders passed by the CIR HCS (where the matter is separately being contested by the Company) and the carry forward under
(Appeals) for both tax years, which were subsequently dismissed. In 2017, the Company reversed section 113(2)(c) has been linked to the decision of the Supreme Court in the case of another taxpayer.
excess provision of Rs. 168,896 in respect of tax years 2011 and 2012 consequent to denovo
proceedings after which the amended orders were passed in respect of the aforementioned tax years, Against the order dated June 13, 2017, the Company had filed an application for rectification. The ACIR
wherein, the Commissioner has maintained the classification of income from interest on bank deposits through rectified order dated August 29, 2017 reduced the demand to Rs. 1,084,733. Through the said
and from subordinated loans as ""income from other sources"". In response, the Company filed an order, the ACIR accepted the Company’s contention relating to various matters except the issue of
appeal challenging this contention before the CIR (Appeals). In January 2019, the CIR (Appeals) passed allocation of expenses to capital gains. The Company contested this matter in appeal before the CIR -
the appellate orders for both the years and has again remanded the matter to the assessing officer for Appeals who has maintained the order of ACIR through order dated December 18, 2018. The Company
denovo proceedings. filed an appeal before the ATIR against the CIR (Appeals) order.
During 2020, the Company received appeal effect orders both dated June 29, 2020 along with notices In 2020, the Company received appeal effect order dated November 20, 2020 issued by the ACIR giving
of demand amounting to Rs. 75,308 and Rs. 112,681, respectively, whereby the Deputy / Additional effect to the findings of appellate orders of CIR (Appeals) and ATIR by deleting the tax levied on
Commissioner Inland Revenue - Audit has again maintained the classification of income from interest on inter-corporate dividends and Super Tax on exempt income which resulted in revised demand of Rs.
bank deposits and from subordinated loans as “income from other sources”. During the year, Appellate 149,257. Moreover, the issue of classification of income from interest on bank deposits and from
Order was framed by CIR (Appeals) and favorable decision was made in respect of classification of subordinated loans has been decided in the Company’s favour as “income from business”.
interest income as “income from business” and allocation of expenses to dividend income and capital
gains. The income tax department, in response there against, had filed an appeal with the High Court of During the year, Appellate Order has been framed by the CIR (Appeals) wherein the levy of Super Tax
Sindh, which is still pending. under section 4B of the Ordinance has been maintained. An appeal has been filed before the ATIR which
is pending.
26.6.2 In 2020, the income tax department, in respect of the tax year 2014, amended the return by creating tax
demand of Rs. 401,240 whereby the Additional Commissioner Inland Revenue (ACIR) has levied tax on In addition to the above, the ACIR issued a further amendment order dated November 24, 2020 for the
capital gains on disposal of shares of listed subsidiary, apportioned expenses against dividend income, same tax year and determined additional income tax liability of Rs. 21,808 on account of capital gain tax
disallowed the classification of 'Interest Income' as "Income from Business” as well as not allowing the on debt securities. The same has been discharged by the Company.
adjustment of brought forward capital losses and brought forward minimum tax paid under section
113(2)(c) of the Ordinance. As a normal recourse, the Company filed an appeal against the order of ACIR
before the CIR (Appeals). During the year, Appellate Order has been framed by the CIR (Appeals) and
favorable decision was made in respect of taxation of capital gains on disposal of shares of listed
subsidiary whereas other matters have been remanded back to the ACIR for reconsideration.

26.6.5 In 2020, the ACIR - Audit through order dated December 22, 2020 amended the return for the tax year 27. earnings per share
2017 by creating tax demand of Rs. 4,335,176 mainly on account of tax levied on undistributed profits As at December 31, there is no dilutive effect on the basic earnings per share of the Company. Earnings
under section 5A and Super Tax under section 4B. The Company had obtained stay from HCS against per share is based on following:
the levy of tax on undistributed profits, therefore the said demand was not recoverable by the tax 2022 2021
department. In April 2021, the HCS disposed of the appeal against the levy of tax under section 5A as -------------Rupees--------------
ultra vires to the Consitution. During the year, the ACIR passed the order dated December 30, 2022
rectifying the earlier order in relation to the levy of tax on undistributed profits. Thereafter, the demand of Profit for the year 21,196,420 18,516,153
Rs. 4,335,176 was reduced and refundable of Rs. 392,231 was determined. As normal recourse, the
Company filed an appeal against the order of ACIR - Audit before the CIR (Appeals) which has been (Number of shares)
heard on January 31, 2023 and is reserved for order. The management is confident of a positive outcome Weighted average number of
of the case. ordinary shares (in thousand) 576,163 576,163
26.6.6 During the year, the DCIR - Audit has finalized the tax audit proceedings for tax year 2018 which is a ----------------Rupees----------------
“Group Return” filed under section 59AA of the Ordinance with its wholly owned subsidiaries Engro
energy Limited [EEL] and Engro Eximp (Private) Limited [EEAPL].The Amended Order dated January 9, Earning per share - basic and diluted 36.79 32.14
2023, creates tax demand of Rs. 211,992 which is mainly on account of disallowances made of the
provision pertaining to retirement benefits in the case of the Company, a portion of disallowance of
‘Purchases’ for alleged non-withholding of taxes thereon in the case of EEAPL and taxation of project 28. remuneration of chief executive, directors and executives
management fee in the case of EEL as ‘services rendered’ at the rate of 7 percent vis a vis 8 percent as
per the return. The aggregate amounts for remuneration, including all benefits, to chief executive, directors and
executives of the Company are given below:
Super Tax under section 4B of the Ordinance has also been reworked to Rs. 321,581 in this order 2022 2021
based on the revised amounts of taxes determined. Moreover, the entire amount has been considered
recoverable despite the adjustments made as identified in note 26.3. Directors Executives Directors Executives
Chief Others Chief Others
The Company is in the process of filing an appeal against the order before the CIR (Appeals). The Executive Executive
management is confident of a positive outcome of the case. Officer Officer
-------------------------------Rupees-------------------------------
26.7 Relationship between tax expense and accounting profit
Managerial remuneration 95,931 - 1,746,001 75,862 - 1,455,415
The tax on the Company's profit before tax differs from the theoretical amount that would arise using the Bonus 70,195 - 875,054 102,623 689,933
Company's applicable tax rate as follows:
Retirement benefits funds - - 232,176 - - 193,307
2022 2021
-------------Rupees------------- Fees - 136,242 - - 103,458 -
Profit before tax 23,517,703 20,241,461 Other benefits - - 24,271 - - 20,536
Tax calculated at the rate of 29% (2021: 29%) 6,820,134 5,870,024 Advisory fee - 100,484 - - - -
Effect of Super tax of current year 876,892 - Total 166,126 236,726 2,877,502 178,485 103,458 2,359,191
Effect of tax loss sale (1,307,692) -
Effect of applicability of different tax rate on: Number of persons
- Dividend (3,428,781) (2,661,705) including those who
- Capital gain - 2,507 worked part of the year 1 9 308 1 10 264
- Profit on debt - 129,325
Tax credits 11,600 26,761 28.1 The Company also provides household items for use of some employees and Chief Executive Officers.
Prior year tax charge reversal (658,869) (1,642,232) Cars are also provided for use of certain employees and directors. In addition, directors of the Company
Effect of change in tax rate 10,143 - are also entitled for travelling benefits in respect of which Rs. 318,498 (2021: Rs. 63,084) have been
Others (2,144) 628 incurred. Further, an amount of Rs. 133,993 (2021: Nil) has been recognized in these financial
statements for the share based payment transactions as disclosed in note 16.4. Further, individual
Tax charge for the year 2,321,283 1,725,308 allocations of this amount will be determined upon completion of the vesting conditions.
28.2 Premium charged during the year in respect of directors indemnity insurance policy, purchased by the
Company, amounts to Rs. 261 (2021: Rs. 261).

(Amounts in thousand) (Amounts in thousand) Defined Benefit
Gratuity Plan
28.3 The above remuneration of executives is stated before accounting for the impact of recoveries from 2022 2021
subsidiaries in accordance with the expense sharing agreements. ------------Rupees--------------
29. retirement benefits 29.2.2 Movement in net liability recognized

29.1 Defined benefit gratuity plan Net liability at beginning of the year 49,135 41,202
Charge for the year (note 29.2.5) 7,713 5,337
The Company faces the following risks on account of its gratuity plan: Payments made to outgoing members - (374)
Remeasurement loss recognized in
Final salary risk - The risk that the final salary at the time of cessation of service is greater than what the other comprehensive income (note 29.2.7) 29,985 2,970
Company has assumed. Since the benefit is calculated on the final salary, the benefit amount would also Net liability at end of the year 86,833 49,135
increase proportionately.
29.2.3 Movement in present value of defined benefit obligation
Asset volatility - Most assets are invested in risk free investments of 3, 5 or 10 year Defence Savings
Certificates or Government Bonds. However, investments in equity instruments is subject to adverse As at beginning of the year 61,531 55,666
fluctuations as a result of change in the market price. Current service cost (note 29.2.5) 2,251 2,004
Interest cost 7,302 4,585
Discount rate fluctuation - The plan liabilities are calculated using a discount rate set with reference to Remeasurement loss recognized in
corporate bond yields. A decrease in corporate bond yields will increase plan liabilities, although this will other comprehensive income 28,925 2,926
be partially offset by an increase in the value of the current plans’ bond holdings. Benefits paid during the year - (3,650)
As at end of the year 100,009 61,531
Investment risks - The risk of the investment underperforming and not being sufficient to meet the
liabilities. This risk is mitigated by closely monitoring the performance of investment. 29.2.4 Movement in fair value of plan assets
Risk of insufficiency of assets - This is managed by making regular contribution to the Fund as advised As at beginning of the year 12,396 14,838
by the actuary. Expected return on plan assets 1,840 1,252
Benefits paid during the year - (3,650)
In addition to above, the gratuity plan exposes the Company to longevity risk i.e. the members survive Remeasurement loss recognized in
longer than the expectation used in determining the obligation. other comprehensive income (note 29.2.7) (1,060) (44)
As at end of the year 13,176 12,396
29.2 Valuation results
29.2.5 Charge for the year recognized in the statement of
The latest actuarial valuation of the defined benefit gratuity plan was carried out as at December 31, profit or loss
2022, using the Projected Unit Credit Method. Details of the defined benefit plan are as follows:
Current service cost 2,251 2,004
Defined Benefit Net interest cost 5,462 3,333
Gratuity Plan 7,713 5,337
2022 2021 29.2.6 Actual return on plan assets 816 1,208
-------------Rupees-------------
29.2.7 Remeasurement recognized in other
29.2.1 Statement of financial position reconciliation comprehensive income
Present value of defined benefit obligation (note 29.2.3) 100,009 61,531 Loss from change in experience adjustments 28,925 2,926
Fair value of plan assets (note 29.2.4) (13,176) (12,396) Actual return on plan assets (816) (1,208)
Expected return on plan assets 1,840 1,252
Deficit 86,833 49,135 Difference in opening fair value of plan assets 36 -
Payable to defined contribution fund - - 1,060 44
Net liability recognized in the statement of 29,985 2,970

financial position (note 16.3) 86,833 49,135
Tax impact at 29% (2021: 29%) (8,696) (861)
Remeasurement of retirement benefit obligation - net of tax 21,289 2,109

(Amounts in thousand) Defined Benefit (Amounts in thousand)
Gratuity Plan
2022 2021 29.2.14 Sensitivity analysis
-------------Rupees-------------
The impact of 1% change in following variables on defined benefit obligation is as follows:
29.2.8 Principal actuarial assumptions used in the actuarial valuation
Increase in Decrease in
Discount rate 13.25 11.75 Assumption Assumption
Expected per annum rate of return on plan assets 13.25 11.75 -------------Rupees---------------
Expected per annum rate of increase in future salaries 13.25 11.75
Discount rate 98,926 62,827
2022 2021 Long term salary increases 101,129 60,274
Rupees (%) Rupees (%)
29.2.15 Maturity profile
29.2.9 Plan assets comprise of the following Defined Benefit
Gratuity Plan
Fixed income instruments 9,958 76 8,939 72
Equity instruments 2,763 21 3,081 25 Time in years (Rupees)
Others (including cash) 455 3 376 3
13,176 100 12,396 100 1 54,639
2 57,481
3 349
29.2.10 The expected return on plan assets was determined by considering the expected returns available on 4 378
the assets underlying the current investment policy. Expected yields on fixed interest investments are 5-10 13,454
based on gross redemption yields as at the reporting date. 11-15 -
16-20 -
29.2.11 Historical information
2022 2021 2020 2019 2018 Weighted average duration (years) 1.08
-----------------------------Rupees-----------------------------
Present value of defined 29.3 Defined contribution plans
benefit obligation (100,009) (61,531) (55,666) (58,898) (73,787)
An amount of Rs. 387,350 (2021: Rs. 207,645) has been charged during the year in respect of
Fair value of plan assets 13,176 12,396 14,838 15,866 51,209 defined contribution plans maintained by the Company.
Payable to Defined contribution 2022 2021

gratuity fund - - (374) (374) (374) -------------Rupees-----------
30. cash utilized in operations
Defined Benefit Profit before taxation 23,517,703 20,241,461
Gratuity Plan
2022 2021 Adjustment for non-cash charges and other items:
-------------Rupees--------------
Depreciation (note 22 205,548 162,427
29.2.13 Demographic assumptions Amortization (note 22) 45,592 31,478
Depreciation on right-of-use assets (note 22) 120,609 114,779
Mortality rate SLIC (2001-05)-1 SLIC (2001-05)-1 Rent concession on lease liability (12,729) (24,205)
Rate of employee turnover Heavy Heavy Gain on disposal of property, plant and equipment (note 23) (25,620) (3,263)
Income on bank deposits and other financial assets (note 23) (7,353,238) (4,445,777)
Dividend income (note 20) (22,174,693) (19,399,463)
Royalty income (1,328,906) (1,284,441)
Finance cost 87,190 50,823
Provision for retirement and other service benefits 71,202 69,350
Reversal for impairment on loan (note 23) (13,309) (13,691)
Working capital changes (note 30.1) 71,720 352,456

(6,788,931) (4,148,066)

-------------Rupees--------------
33. financial risk management`
30.1 Working capital changes
33.1 Financial risk factors
(Increase) / Decrease in current assets
The Company's activities expose it to a variety of financial risks: market risk (including currency risk,
- Loans, advances, deposits and prepayments 49,272 (722) interest rate risk and other price risk), credit risk and liquidity risk. The Company's overall risk
- Receivables (net) (453,614) (222,618) management programme focuses on having cost efficient funding as well as to manage financial risk to
(404,342) (223,340) minimize earnings volatility and provide maximum return to shareholders.
Increase in current liabilities
Risk management is carried out by the Company's Finance and Planning department under policies
- Trade and other payables including other approved by the Senior Management.
service benefits (net) 476,062 575,796
71,720 352,456 a. Market risk
31. cash and cash equivalents i) Currency risk
Short term investments 2,684,355 40,246,287 Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
Cash and bank balances (note 13) 165,977 855,323 because of changes in foreign exchange rates.
2,850,332 41,101,610
The Company is exposed to currency risk primarily with respect to receivable and payable balances
32. financial instruments by category denominated in currency other than Pakistan Rupee.
Financial assets As at December 31, 2022, if Pakistan Rupee appreciated / depreciated by 1% against USD with all other
variables held constant, the Company's post tax profit for the year would have been higher / lower by Rs.
- Financial assets measured at amortized cost 4,891 as a result of exchange gain / loss on translation of foreign currency denominated financial
instruments.
Long term loans and advances 5,372,573 384,154
Loans and deposits 2,328,677 10,845,6064 ii) Interest rate risk
Receivables 1,190,911 725,501
Short term investments 15,146,403 40,246,287 Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
Cash and bank balances 165,977 855,323 because of changes in market interest rates. The Company is exposed to interest rate risk on balances
24,204,541 53,056,871 maintained with banks, government securities and loans given to subsidiary companies.
- Financial assets measured at fair value As at December 31, 2022, if interest rate on bank accounts / loans given to subsidiary companies had
through other comprehensive income been 1% higher / lower with other variables held constant, post tax profit for the year would have been
higher / lower by Rs. 25,472.
Pakistan Investment Bonds 29,380,322 -
As at December 31, 2022, if interest rate on government securities had been 1% higher / lower with
- Financial assets measured at fair value other variables held constant, post tax profit for the year would have been higher / lower by Rs. 26,736.
through profit or loss
iii) Other price risk
Mutual fund units 3,078,051 950
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
Financial liabilities because of changes in market prices (other than those arising from currency risk or interest rate risk),
whether those changes are caused by factors specific to the individual financial instrument or its issuer,
- Financial liabilities measured at amortized cost or factors effecting all similar financial instruments traded in the market. As at reporting date, the
Company does not have any material price sensitive instruments.
Lease liabilities 1,151,433 356,746
Trade and other payables 5,176,977 4,714,255 b. Credit risk
Unclaimed dividends 235,338 241,839
6,563,748 5,312,840 Credit risk represents the risk of financial loss being caused if counter party fails to discharge an
obligation.
Credit risk arises from deposits with banks and financial institutions, loans and advances, deposits and
other receivables. The credit risk on liquid funds and mutual fund securities is limited because counter

parties are financial institutions with a reasonably high credit rating. The Company maintains an internal These objectives are achieved by maintaining sufficient cash and marketable securities.
policy to place funds with commercial banks / mutual funds having a minimum short term credit rating of
A1 / AM3. Investment in Pakistan Investment Bonds and Treasury Bills is government guaranteed. The table below analyses the Company's financial liabilities into relevant maturity groupings based on the
remaining year at the reporting date to contractual maturity dates. The amounts disclosed in the table are
The Company monitors the credit quality of its financial assets with reference to historical performance the contractual undiscounted cash flows.
of such assets and available external credit ratings. The carrying values of financial assets which are
neither past due nor impaired are as under: 2022 2021
2022 2021
-------------Rupees------------- Maturity Maturity Maturity Maturity after Total
upto after total upto
Long term loans and advances 5,372,573 384,154
one year one year one year one year
Loans and advances 2,328,677 10,845,606
Receivables 977,045 359,635 ---------------------------------------- Rupees -----------------------------------------
Short term investments 47,604,776 40,247,237 Financial liabilities
Bank balances 165,277 854,623
56,448,348 52,691,255
Lease liabilities 357,915 1,117,205 1,475,120 362,035 18,009 380,044
The credit quality of receivables can be assessed with reference to their historical performance with no Trade and other payables 5,176,977 - 5,176,977 4,714,255 - 4,714,255
or negligible defaults in recent history, however, no losses incurred. The credit quality of Company's bank 5,534,892 1,117,205 6,652,097 5,076,290 18,009 5,094,299
balances and short term investments can be assessed with reference to external credit ratings as
follows:
Rating
agency Rating
Allied Bank Limited PACRA AAA A1+ 33.2 Capital risk management
Askari Bank Limited PACRA AA+ A1+
Bank Al-Falah Limited PACRA AA+ A1+ The Company's objectives when managing capital are to safeguard the Company's ability to continue as
Bank Al-Habib Limited PACRA AAA A1+ a going concern in order to provide returns for share holders and benefit for other stake holders and to
Citi Bank Moody's Aa3 P-1 maintain an optimal capital structure to reduce the cost of capital.
Faysal Bank Limited PACRA AA A1+
Habib Bank Limited JCR-VIS AAA A1+ The Company manages its capital structure and makes adjustments to it in the light of changes in
Habib Metropolitan Bank Limited PACRA AA+ A1+ economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend
JS Bank Limited PACRA AA- A1+ payment to shareholders or issue new shares.
MCB Bank Limited PACRA AAA A1+
Meezan Bank Limited JCR-VIS AAA A1+ The management seeks to maintain a balance between higher returns that might be possible with higher
National Bank of Pakistan Limited PACRA AAA A1+ levels of borrowings and the advantages and security afforded by a sound capital position.
Soneri Bank Limited PACRA AA- A1+
Standard Chartered Bank (Pakistan) Limited PACRA AAA A1+ 2022 2021
United Bank Limited JCR-VIS AAA A1+ -------------Rupees--------------
ABL Asset Management Company Limited PACRA AM1 -
HBL Asset Management Limited JCR-VIS AM1 - The proportion of borrowings to equity at the year end was:
Pak Brunei Investment Company Limited JCR-VIS AA+ A1+
Pak China Investment Company Limited JCR-VIS AAA A1+ Borrowings (Lease liabilities) 1,151,433 356,746
Pak Oman Investment Company Limited JCR-VIS AA+ A1+ Total Equity 91,265,229 90,534,629
Pak Kuwait Investment Company (Private) Limited PACRA AAA A1+ 92,416,662 90,891,375
National Investment Trust Limited PACRA AM1 -
UBL Fund Managers Limited JCR-VIS AM1 - Gearing ratio 1.26% 0.39%
c. Liquidity risk The Company finances its operations through equity, borrowings and management of working capital
with a view to maintaining an appropriate mix between various sources of finance to minimize risk.
Liquidity risk represents the risk that the Company will encounter difficulties in meeting obligations
associated with financial liabilities. 33.3 Fair value estimation
The Company's liquidity management involves projecting cash flows and considering the level of liquid The carrying value of all financial assets and liabilities reflected in the financial statements approximate
assets necessary to meet these, monitoring liquidity ratios against internal and external regulatory their fair values.
requirements and maintaining debt financing plans.

The table below analyses financial instruments carried at fair value by valuation method. The different 36. related parties
level have been defined as follows:
36.1 Following are the details of associated, undertakings and other related parties with whom the Company
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1); has arrangement / agreement during the year:
- Inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices) (level 2); and S.No Name of Related Party Direct Shareholding % Relationship
- Inputs for the asset or liability that are not based on observable market data (level 3). 1 Dawood Hercules Corporation Limited 37.22% Holding Company
2 Engro Eximp Agriproducts (Private) Limited 100.00% Subsidiary
3 Engro Energy Limited 100.00% Subsidiary
Level 1 Level 2 Level 3 Total 4 Engro Infiniti (Private) Limited 100.00% Subsidiary
----------------------Rupees---------------------- 5 Engro Connect (Private) Limited 100.00% Subsidiary
As at December 31, 2022 6 Engro Fertilizers Limited 56.27% Subsidiary
7 Engro Polymer and Chemicals Limited 56.19% Subsidiary
Fair value through other comprehensive income 8 Elengy Terminal Pakistan Limited 56.00% Subsidiary
9 Engro Eximp FZE 100.00% Subsidiary
10 Engro Enfrashare (Private) Limited N/A Indirect subsidiary
- Pakistan Investment
11 Engro Elengy Terminal (Private) Limited N/A Indirect subsidiary
Bonds (PIBs) - 29,380,322 - 29,380,322 12 Engro Power Investments International B.V - Netherlands N/A Indirect subsidiary
13 Engro Powergen Qadirpur Limited N/A Indirect subsidiary
Fair value through profit or loss 14 Engro Powergen Thar (Private) Limited N/A Indirect subsidiary
15 EFERT Agritrade (Private) Limited N/A Indirect subsidiary
- Mutual fund units - 3,078,051 - 3,078,051 16 Engro Energy Services Limited N/A Indirect subsidiary
17 Engro Power Services Limited N/A Indirect subsidiary
As at December 31, 2021 18 Engro Peroxide (Private) Limited N/A Indirect subsidiary
19 Engro Plasticizer (Private) Limited N/A Indirect subsidiary
Fair value through profit or loss 20 Think PVC (Private) Limited N/A Indirect subsidiary
21 Thar Power Company Limited N/A Associated company
- Mutual fund units - 950 - 950 22 Thar Foundation N/A Associated company
23 Engro Vopak Terminal Limited 50.00% Joint Venture
24 FrieslandCampina Engro Pakistan Limited 39.90% Associated company
Level 2 fair values have been determined on the basis of PKRV rates and closing Net Asset Values for 25 Sindh Engro Coal Mining Company Limited N/A Associated company
government securities and Mutual Fund Units respectively. 26 Engro Foundation N/A Associated Entity
27 Mr. Ghias Khan N/A Key Management Personnel / Director
There were no transfers amongst the levels during the year. Further, there were no changes in the 28 Mr. Hussain Dawood 2.90% Director
valuation techniques during the year. 29 Mrs. Kulsum Dawood 1.26% Spouse of director
30 Mr. Mohammad Abdul Aleem 0.04% Director
33.4 The current macroeconomic climate is challenging with high devaluation pushing inflation to decade-high 31 Mrs. Humera Aleem 0.01% Spouse of director
32 Mr. Abdul Samad Dawood 0.29% Director
levels. The Company navigated these challenges successfully in 2022. Its growth in topline, despite the
33 Mrs. Ayesha Dawood N/A Spouse of director
headwinds, demonstrates its diversified operations and robust portfolio. Our human capital is 34 Mr. Shahzada Dawood 1.00% Director
well-equipped to guide the Company through future turbulence which will likely comprise of high inflation 35 Ms. Sabrina Dawood 0.64% Director
and interest rate environment. The Company will continue to focus on delivering value to all stakeholders. 36 Ms. Azmeh Dawood 0.26% Daughter of director
37 Mr. Khawaja Iqbal Hassan 0.01% Director
34. contributory retirement funds 39 Ms. Henna Inam N/A Director
40 Mr. Rizwan Diwan N/A Director
The investments out of the contributory retirement funds have been made in accordance with the 41 Ms. Dominique Russo N/A Director
provisions of Section 218 of the Act and the conditions specified there under. 42 Dawood Investments 2.01% Common Directorship
43 Inbox Business Technologies Private Limited N/A Common Directorship
35. number of employees 44 Karachi School for Business & Leadership N/A Common Directorship
Number of Average number 45 The Dawood Foundation N/A Common Directorship
employees as at of employees 46 Dawood Corporation (Private) Limited 0.01% Common Directorship
47 The Karachi Education Initiative N/A Common Directorship
2022 2021 2022 2021 48 Engro Corporation Provident Fund N/A Post Employement Benefits
49 Engro Corporation Limited DC Gratuity Fund N/A Post Employement Benefits
50 Engro Corporation Limited DC Pension Fund N/A Post Employement Benefits
Management employees 320 306 314 305
51 Engro Corporation Limited DB Gratuity Fund N/A Post Employement Benefits
52 Mr. Abdul Qayoom N/A Key Management Personnel
53 Mr. Shariq Abdullah N/A Key Management Personnel
54 Mr. Khawaja Bilal Hussain N/A Key Management Personnel
55 Mr. Mazhar Abbas Hasnani N/A Key Management Personnel
192 engro corporation limited annual
56 report
Ms.2022
Shomaila Loan N/A 193
Key Management Personnel
enabling growth 57 Mr. Syed Zaheer Mehdi N/A enabling
Key Management growth
Personnel
58 Mr. Rizwan Masood Raja N/A Key Management Personnel
59 Mr. Eram Hasan N/A Key Management Personnel
48 Engro Corporation Provident Fund N/A Post Employement Benefits
49 Engro Corporation Limited DC Gratuity Fund N/A Post Employement Benefits
50 Engro Corporation Limited DC Pension Fund N/A Post Employement Benefits
51 Engro Corporation Limited DB Gratuity Fund N/A Post Employement Benefits
52 Mr. Abdul Qayoom N/A Key Management Personnel (Amounts in thousand)
53 Mr. Shariq Abdullah N/A Key Management Personnel
54 Mr. Khawaja Bilal Hussain N/A Key Management Personnel
55 Mr. Mazhar Abbas Hasnani N/A Key Management Personnel 36.2 Transactions with related parties
56 Ms. Shomaila Loan N/A Key Management Personnel
57 Mr. Syed Zaheer Mehdi N/A Key Management Personnel Details of transactions with related parties during the year, other than those which have been disclosed
58 Mr. Rizwan Masood Raja N/A Key Management Personnel elsewhere in these financial statements, are as follows:
59 Mr. Eram Hasan N/A Key Management Personnel 2022 2021
60 Mr. Nadir Salar Qureshi N/A Key Management Personnel -------------Rupees--------------
Parent Company
Dividend paid 7,291,974 7,720,913

Reimbursements under advisory agreement 14,617 117,000
Reimbursements of expenses 16,098 -
Subsidiary companies
Mark-up from subsidiaries 1,229,333 1,238,709

Disbursement of loan 19,540,000 14,450,000
Repayment of loan 23,777,000 19,350,000
Investment in subsidiary company - 20,656,050
Dividend income 21,242,293 18,244,463
Royalty income 1,328,906 1,284,441
Reimbursements from 3,512,083 2,792,910
Reimbursements to 785,012 101,203
Tax losses surrendered to EFERT 934,203 -
Associated companies
Purchases and services 126,040 313,799

Contribution for Corporate Social Responsibility 40,000 77,936
Dividend paid 526,761 588,310
Purchase of fixed income placements - 12,186,000
Proceeds from fixed income placements - 12,246,491
Reimbursements from 73,883 224,650
Reimbursements to 86,553 692
Joint venture
Dividend income 932,400 1,155,000

Reimbursements from 157,793 169,098
Reimbursements to 1,019 3,589
Others
Remuneration of key management personnel 541,405 632,446

Reimbursements to key management personnel - 1,249
Dividend paid to key management personnel 15,750 -
Dividend paid to directors and others 1,259,953 1,201,160
Advisory fee 100,484 -
Contribution to staff retirement benefit funds 222,637 171,532
Directors' fee 136,242 103,458

36.3 Details of subsidiary companies incorporated outside Pakistan with whom the Company had 38. non-adjusting event after reporting date
transaction or arrangements in place are as follows:
38.1 The Board of Directors of Engro Polymer and Chemicals Limited, a subsidiary company, in its meeting
held on February 7, 2023 has proposed a final cash dividend of Rs. 2.5 per share for the year ended
Engro Eximp FZE (EEF) December 31, 2022, amounting to Rs. 2,272,308 of which the proportionate share of the Company
amounts to Rs. 1,276,834.
Registered address BCW JAFZA 18 & 19, Office No 110, UAE
38.2 The Board of Directors of Engro Energy Limited, a subsidiary company, in its meeting held on
Country of incorporation UAE February 10, 2023 has proposed a final cash dividend of Rs. 20.36 per share for the year ended
Chief Executive Officer Syed Kaleem Asghar Naqvi December 31, 2022, amounting to Rs. 2,149,629 of which the proportionate share of the Company
amounts to Rs. 2,149,629.
"Percentage of holding of
38.3 The Board of Directors of Engro Fertilizers Limited, a subsidiary company, in its meeting held on February
the Company" 100%
9, 2023 has proposed a final cash dividend of Rs. 5 per share for the year ended December 31, 2022,
(Direct) amounting to Rs. 6,676,497 of which the proportionate share of the Company amounts to Rs.
3,756,560.
These financial statements do not include the effects of the aforementioned dividend income, which will
37. donations be accounted for in the financial statements for the year ending December 31, 2023 once the proposed
dividends are approved in the Annual General Meetings of respective companies.
37.1 Donations include the following in which directors are interested:
2022 2021 38.4 The Board of Directors of the Company in its meeting held on February 15, 2023 has proposed a final
---------Rupees-------- cash dividend of Rs.1 per share for the year ended December 31, 2022 amounting to Rs.576,163 for
approval of the members at the Annual General Meeting to be held on March 30, 2023.
Name of Director Interest Name of Donee
in Donee These financial statements do not include the effect of the proposed dividends, which will be accounted
for in the financial statements for the year ending December 31, 2023.
Hussain Dawood Director Karachi Education Initiative - 37,936
Sabrina Dawood Director 38.5 The members of the Company in its meeting held on January 26, 2023 have approved purchase /
Dominique Russo Director buy-back by the Company up to an aggregate number of 70,000,000 issued ordinary shares of the
Abdul Samad Dawood Director Company, having paid-up / face value of Rs. 10 each, representing approximately 12.1% of the total
Ghias Khan Chairman Engro Foundation 40,000 40,000 issued and paid-up ordinary shares of the Company, at the spot / current price share acceptable to the
Company prevailing during the purchase period, through the stock exchange.
37.2 The name of donees to whom donation amount exceeds Rs. 500 are:
39. corresponding figures
Name of Donees Corresponding figures and balances have been rearranged and reclassified, wherever necessary, for the
purpose of comparison, the effects of which are not material.
Engro Foundation 40,000 40,000
Karachi Education Initiative - 37,936 40. date of authorization for issue
Hunar Foundation - 3,000
Empowering Communities for Change - 1,000 These financial statements were authorized for issue on February 15, 2023 by the Board of Directors of
Old Grammarians Society - 200 the Company.
Developments in Literacy 2,150 -
The Kidney Centre Post Graduate 2,000 -
Lady Dufferin Hospital 1,500 -
Others 614 354
46,264 82,490
Muhammad Abdul Aleem Mazhar Abbas Hasnani Ghias Khan

Director Chief Financial Officer President & CEO

consolidated
accounts
independence auditor’s report following is the key audit matter:
to the members of engro corporation limited
report on the audit of the consolidated financial statements How the matter was addressed
Key audit matter in our audit
opinion
We have audited the annexed consolidated financial statements of Engro Corporation Limited and its income tax matters
subsidiaries (together ‘the Group’), which comprise the consolidated statement of financial position as
(Refer notes 33.1, 33.2, 33.3, 42.4, 42.5 and Our audit procedures, amongst others
at December 31, 2022, and the consolidated statement of profit or loss, the consolidated statement of 42.6 to the consolidated financial statements) included the following:
comprehensive income, the consolidated statement of changes in equity and the consolidated
statement of cash flows for the year then ended, and notes to the consolidated financial statements, The Group has recognised provisions and has ● obtained and examined details of the
including a summary of significant accounting policies and other explanatory information. disclosed contingent liabilities in respect of documentation relating to pending tax
certain income tax and sales tax matters which matters and discussed the same with the
In our opinion, consolidated financial statements give a true and fair view of the consolidated financial are pending adjudication before various management;
appellate and legal forums.
position of the Group as at December 31, 2022, and of its consolidated financial performance and its ● circularised confirmations to the external
consolidated cash flows for the year then ended in accordance with the accounting and reporting Provisions and contingencies require legal and tax advisors for their views on
standards as applicable in Pakistan. management of the Group to make matters being handled by them;
judgements and estimates in relation to the
basis for opinion interpretation of laws, statutory rules, ● involved internal tax professionals to assess
regulations, and the probability of outcome and management’s conclusions on tax matters
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in financial impact, if any, on the Group for and evaluated the consistency of such
Pakistan. Our responsibilities under those standards are further described in the Auditor’s recognition and measurement of any provision conclusions with the views of management
Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are and disclosure in respect of such provisions and external legal and tax advisors;
independent of the Group in accordance with the International Ethics Standards Board for and contingencies.
● checked correspondence with the relevant
Accountants’ Code of Ethics for Professional Accountants as adopted by the Institute of Chartered Due to the significance of the amounts authorities including judgments or orders
Accountants of Pakistan (the Code), and we have fulfilled our other ethical responsibilities in involved, inherent uncertainties with respect to passed by the competent authorities in
accordance with the Code. We believe that the audit evidence we have obtained is sufficient and the outcome of these matters, legal forums at relation to the issues involved or matters
appropriate to provide a basis for our opinion. which these are currently pending and use of which have similarities with the issues
significant management judgements and involved;
key audit matters estimates to assess the same including related
financial impacts, which may change over time ● checked the mathematical accuracy of the
Key audit matters are those matters that, in our professional judgement, were of most significance in as new facts emerge and matters progress, we calculations underlying the provisions; and
our audit of the consolidated financial statements of the current period. These matters were addressed have considered provisions and contingent
in the context of our audit of the consolidated financial statements as a whole, and in forming our liabilities relating to income tax and sales tax ● assessed the adequacy of the related
matters involving the Group as a key audit disclosures made in the consolidated
opinion thereon, and we do not provide a separate opinion on these matters. matter. financial statements in accordance with the
applicable accounting and reporting
standards.

information other than the unconsolidated and consolidated financial statements and auditor’s
Key audit matter How the matter was addressed reports thereon
in our audit
Management is responsible for the other information. The other information comprises the information
receivables from central power purchasing included in the annual report, but does not include the unconsolidated and consolidated financial
agency (guarantee) limited (CPPA-G) statements and our auditor’s reports thereon.
Our audit procedures, amongst others,
(Refer notes 1.3.1.1, 15.1 and 17 to the included the following:
consolidated financial statements) Our opinion on the consolidated financial statements does not cover the other information and we do
● assessed whether revenue and related not express any form of assurance conclusion thereon.
The Group under the Power Purchase receivables have been recognised in
Agreement (PPA) sells available capacity and accordance with the applicable accounting In connection with our audit of the consolidated financial statements, our responsibility is to read the
electrical output to CPPA-G. As at December policies; other information and, in doing so, consider whether the other information is materially inconsistent with
31, 2022, the Group has following receivables ● tested whether invoices raised during the
from CPPA-G: year were in accordance with the the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to
requirements of PPA; be materially misstated. If, based on the work we have performed, we conclude that there is a material
● Trade debts amounting to ● circularised confirmation of receivable
Rs. 61,326,079 thousand which include misstatement of this other information, we are required to report that fact. We have nothing to report in
overdue debts of Rs. 41,155,626 thousand; balance from CPPA-G; this regard.
● checked receipts from CPPA-G with bank
● Delayed payment charges amounting to Rs. statements;
9,868,982 thousand which include overdue ● made inquiries from the management and responsibilities of management and the board of directors for the consolidated financial
receivables of Rs. 7,467,066 thousand; and inspected minutes of the meetings of the statements
Board of Directors and Board Audit Management is responsible for the preparation and fair presentation of the consolidated financial
● Reimbursable costs amounting to Committee to ascertain actions taken by
Rs. 2,745,350 thousand. them for the recoverability of outstanding statements in accordance with accounting and reporting standards as applicable in Pakistan and
amounts; Companies Act, 2017 and for such internal control as management determines is necessary to enable
The above balances relate to subsidiary ● inspected terms of the Agreement and the preparation of consolidated financial statements that are free from material misstatement, whether
companies Engro Powergen Thar (Private) discussed the same with the management;
Limited (EPTL) and Engro Powergen Qadirpur due to fraud or error.
● checked Implementation Agreement and
Limited (EPQL). assessed whether receivables are secured
against guarantee from the Government of In preparing the consolidated financial statements, management is responsible for assessing the
During the year, pursuant to the execution of Pakistan and whether any impairment is Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
Master Agreement (Agreement) between EPQL required to be recognised thereagainst; concern and using the going concern basis of accounting unless management either intends to
and CPPA-G, EPQL received first and second ● assessed the availability of finance with liquidate the Group or to cease operations, or has no realistic alternative but to do so.
installments aggregating to Rs. 8,147,368 EPQL and EPTL to fund its business
thousand and revised tariff was notified by operations through committed credit lines
NEPRA for Return on Equity and Return on The Board of Directors is responsible for overseeing the Group’s financial reporting process.
obtained from various financial institutions;
Equity During Construction with effect from and
July 1, 2022. ● assessed the adequacy of the related auditor’s responsibilities for the audit of the consolidated financial statements
disclosures in the consolidated financial Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
In view of the above developments, on-going statements in accordance with the
delays in settlement of receivables, materiality applicable accounting and reporting as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
of the amount involved, and the consequential standards. report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
impact of the delay in settlement on liquidity guarantee that an audit conducted in accordance with ISAs as applicable in Pakistan will always detect
and operations of the subsidiary companies,
EPTL and EPQL, we have considered this to a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
be an area of higher assessed risk and a key material if, individually or in the aggregate, they could reasonably be expected to influence the
audit matter. economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional We also provide the Board of Directors with a statement that we have complied with relevant ethical
judgement and maintain professional skepticism throughout the audit. We also: requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
● Identify and assess the risks of material misstatement of the consolidated financial statements, safeguards.
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk From the matters communicated with the Board of Directors, we determine those matters that were of
of not detecting a material misstatement resulting from fraud is higher than for one resulting from most significance in the audit of the consolidated financial statements of the current period and are
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the therefore the key audit matters. We describe these matters in our auditor’s report unless law or
override of internal control. regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
● Obtain an understanding of internal control relevant to the audit in order to design audit procedures consequences of doing so would reasonably be expected to outweigh the public interest benefits of
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the such communication.
effectiveness of the Group’s internal control.
The engagement partner on the audit resulting in this independent auditor’s report is Salman Hussain.
● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
● Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. Chartered Accountants
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s Karachi
report to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up Date: 08 March, 2023
to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern. UDIN: AR2022101137HVz81GqJ
● Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
● Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group audit.
We remain solely responsible for our audit opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.

consolidated statement of (Amounts in thousand)
2022 2021
financial position Equity and liabilities
Note -------------Rupees---------------
as at december 31, 2022 Equity

Share capital 21 5,761,632 5,761,632
(Amounts in thousand) Share premium 13,068,232 13,068,232
2022 2021 Revaluation reserve on business combination 2,678 2,678
Note -------------Rupees--------------- Maintenance reserve 22 156,301 156,301
Assets Exchange revaluation reserve 1,615,497 937,769
Non-current assets Hedging reserve 702,570 66,031
General reserve 4,429,240 4,429,240
Property, plant and equipment 4 329,877,228 282,154,538 Remeasurement of investments (866,814) 39,248
Right-of-use asset 5 13,328,823 9,819,009 Remeasurement of post-employment benefits (176,248) (108,064)
Intangible assets 6 2,274,561 2,398,324 Unappropriated profit 142,128,483 137,385,981
Long term investments 7 36,081,246 34,217,070
Deferred taxation 8 101,660 80,346 161,059,939 155,977,416
Financial assets at amortized cost 9 3,783,265 3,592,784
Derivative financial instruments 10 737,319 92,805 166,821,571 161,739,048
Net investment in leases 11 52,160,406 45,203,623 Non-controlling interest 73,762,386 81,060,639
Long term loans, advances, deposits and other receivables 12 3,816,788 2,616,236 Total equity 240,583,957 242,799,687
442,161,296 380,174,735 Liabilities
Current assets Non-Current liabilities
Stores, spares and loose tools 13 9,834,814 9,310,131 Borrowings 23 156,173,794 139,818,216
Stock-in-trade 14 30,242,789 31,513,007 Government grant 24 1,472,279 1,079,703
Trade debts 15 71,195,463 58,528,771 Deferred taxation 8 13,395,214 16,256,649
Loans, advances, deposits and prepayments 16 6,849,714 5,020,705 Lease liabilities 25 62,369,918 53,163,136
Other receivables 17 35,962,591 25,780,784 Deferred liabilities 26 3,633,893 2,845,835
Accrued income 2,269,306 633,633 Long term provisions 27 2,952,970 8,172,253
Contract assets 18 14,124,293 6,487,105 239,998,068 221,335,792
Current portion of net investment in leases 11 5,683,292 4,004,522 Current liabilities
Short term investments 19 86,105,467 82,372,051 Trade and other payables 28 125,775,973 95,232,315
Cash and bank balances 20 44,986,627 40,495,601 Contract liabilities 29 12,980,370 1,024,361
Accrued interest / mark-up 30 2,764,706 1,366,497
307,254,356 264,146,310 Current portion of:
- borrowings 23 27,699,919 23,110,031
Total Assets 749,415,652 644,321,045 - Government grant 24 353,201 183,624
- lease liabilities 25 9,046,896 6,111,288
- deferred liabilities 26 577,116 736,953
- long term provisions 27 25,503,815 18,510,399
Taxes payable 18,188,222 9,298,370
Short term borrowings 31 32,984,960 23,270,314
Dividend payable 32 12,958,449 1,341,414
268,833,627 180,185,566
Total liabilities 508,831,695 401,521,358
Contingencies and commitments 33
Total equity and liabilities 749,415,652 644,321,045
The annexed notes from 1 to 63 form an integral part of these consolidated financial statements.

consolidated statement of consolidated statement of
profit or loss comprehensive income
(Amounts in thousand except for earnings per share) (Amounts in thousand)

2022 2021 2022 2021
Note -------------Rupees--------------- Note -------------Rupees---------------
Continuing operations Profit for the year 46,111,277 52,611,759
Revenue 34 356,427,526 311,587,401 Other comprehensive income:
Cost of revenue 35 (251,808,480) (211,854,704) Items that may be reclassified subsequently to profit or loss
Gross profit 104,619,046 99,732,697 Hedging reserve - cash flow hedges
Selling and distribution expenses 36 (9,325,850) (7,819,291) Profit arising during the year 644,514 92,805
Administrative expenses 37 (11,776,647) (7,658,843) Less: Reclassification adjustment for loss included
Other income 38 21,873,860 12,227,387 in the statement of profit or loss (11,577) (874)
Other operating expenses 39 (10,034,948) (9,235,681) 632,937 91,931
Revaluation reserve on business combination
Other losses:
- Remeasurement loss on provision for GIDC 27.1 (1,102,678) (1,401,519) Exchange differences on translation of foreign operations 677,728 254,829
- Loss allowance on subsidy receivable from GoP 17.1.1 (522,936) (557,700) 1,310,665 346,760
Continuing operations' (loss) / gain on
Operating profit 93,729,847 85,287,050 remeasurement of long-term investment classified
Finance cost 40 (28,744,239) (17,274,058) at fair value through other comprehensive income 7.9 & 19.4 (906,062) 39,248
Share of income from joint venture and associates 41 3,215,276 3,226,697 Items that will not be reclassified subsequently to profit or loss
Profit before taxation 68,200,884 71,239,689 - Remeasurement of post employment

benefits obligation - Actuarial loss 46.1.3 (44,249) (58,542)
Taxation 42 (22,089,678) (18,657,213)
- Remeasurement of post employment
Profit from continuing operations 46,111,206 52,582,476 benefits obligation - Actuarial loss (associate) (58,023) -
(102,272) (58,542)
Discontinued operations Less: Income tax relating to remeasurement
Profit from discontinued operations (attributable to of post employment benefits obligation 29,659 16,978
Owners of the Holding Company) 43 71 29,283 (72,613) (41,564)
Other comprehensive income for the year, net of tax 331,990 344,444
Profit for the year 46,111,277 52,611,759
Total comprehensive income for the year 46,443,267 52,956,203
Profit attributable to:
Total comprehensive income attributable to:
- Owners of the Holding Company 24,332,052 27,941,514
- Non-controlling interest 21,779,225 24,670,245 - Owners of the Holding Company 24,672,073 28,303,485
- Non-controlling interest 21,771,194 24,652,718
46,111,277 52,611,759 46,443,267 52,956,203
Total comprehensive income attributable to:
Earnings per share - basic and diluted
- continuing operations 46,443,196 52,926,920
- continuing operations 42.23 48.45 - discontinued operations 71 29,283
- discontinued operations 0.00 0.05 46,443,267 52,956,203
44 42.23 48.50

consolidated statement of
210
changes in equity
for the year ended december 31, 2022
enabling growth
--------------------------------------------Attributable to Owners of the Holding Company--------------------------------------------
----------------------------------------------------------------Reserves----------------------------------------------------------------
------------------------Capital reserves------------------------ ------------------------------Revenue reserves------------------------------
Share Share Revaluation Maintenance Exchange Hedging Remeasurement General Unappropriated Remeasurement Sub Non-controlling Total
capital premium reserve on reserve revaluation reserve of investments reserve profit of post total interest
business (note 22) reserve employment
combination benefits
Balance as at January 1, 2021 5,761,632 13,068,232 2,678 156,301 682,940 (26,173) - 4,429,240 124,424,783 (83,754) 148,415,879 71,178,776 219,594,655
Total comprehensive income for
the year ended December 31, 2021
Profit for the year - - - - - - - - 27,941,514 - 27,941,514 24,670,245 52,611,759

Other comprehensive income - - - - 254,829 92,204 39,248 - - (24,310) 361,971 (17,527) 344,444
- - - - 254,829 92,204 39,248 - 27,941,514 (24,310) 28,303,485 24,652,718 52,956,203
Dividend by subsidiaries allocable to

Non-controlling interest - - - - - - - - - - - (14,768,965) (14,768,965)
Share issuance cost - - - - - - - - - - - (1,890) (1,890)

Final cash dividend for the year ended
December 31, 2020 @ Rs. 2.00 per share - - - - - - - - (1,152,327) - (1,152,327) - (1,152,327)
Interim cash dividends for the year ended
December 31, 2021:
- 1st interim @ Rs. 12.00 per share - - - - - - - - (6,913,959) - (6,913,959) - (6,913,959)
- 2nd interim @ Rs. 7.00 per share - - - - - - - - (4,033,142) - (4,033,142) - (4,033,142)
- 3rd interim @ Rs. 5.00 per share - - - - - - - - (2,880,888) - (2,880,888) - (2,880,888)

- - - - - - - - (14,980,316) - (14,980,316) (14,770,855) (29,751,171)
Balance as at December 31, 2021 5,761,632 13,068,232 2,678 156,301 937,769 66,031 39,248 4,429,240 137,385,981 (108,064) 161,739,048 81,060,639 242,799,687
engro corporation limited

--------------------------------------------Attributable to Owners of the Holding Company--------------------------------------------
----------------------------------------------------------------Reserves----------------------------------------------------------------
------------------------Capital reserves------------------------ ------------------------------Revenue reserves------------------------------
Share Share Revaluation Maintenance Exchange Hedging Remeasurement General Unappropriated Remeasurement Sub Non-controlling Total
capital premium reserve on reserve revaluation reserve of investments reserve profit of post total interest
business (note 22) reserve employment
annual report 2022

combination benefits
Balance as at January 1, 2022 5,761,632 13,068,232 2,678 156,301 937,769 66,031 39,248 4,429,240 137,385,981 (108,064) 161,739,048 81,060,639 242,799,687
Total comprehensive income for
the year ended December 31, 2022
Profit for the year - - - - - - - - 24,332,052 - 24,332,052 21,779,225 46,111,277

Other comprehensive income - - - - 677,728 636,539 (906,062) - - (68,184) 340,021 (8,031) 331,990
- - - - 677,728 636,539 (906,062) - 24,332,052 (68,184) 24,672,073 21,771,194 46,443,267
Dividend by subsidiaries allocable to

Non-controlling interest - - - - - - - - - - - (29,069,447) (29,069,447)
Final cash dividend for the year ended
December 31, 2021 @ Rs. 1.00 per share - - - - - - - - (576,163) - (576,163) - (576,163)
Interim cash dividends for the year ended
December 31, 2022:
- 1st interim @ Rs. 12.00 per share - - - - - - - - (6,913,959) - (6,913,959) - (6,913,959)
- 2nd interim @ Rs. 11.00 per share - - - - - - - - (6,337,796) - (6,337,796) - (6,337,796)
- 3rd interim @ Rs. 10.00 per share - - - - - - - - (5,761,632) - (5,761,632) - (5,761,632)

- - - - - - - - (19,589,550) - (19,589,550) (29,069,447) (48,658,997)
Balance as at December 31, 2022 5,761,632 13,068,232 2,678 156,301 1,615,497 702,570 (866,814) 4,429,240 142,128,483 (176,248) 166,821,571 73,762,386 240,583,957

211

enabling growth
consolidated statement of notes to the consolidated
cash flows financial statements

2022 2021
Note -------------Rupees--------------- 1 legal status and operations
Cash flows from operating activities
Cash generated from operations 47 104,110,755 61,832,875 1.1 Engro Corporation Limited (the Holding Company) is a public listed company incorporated in
Retirement and other service benefits paid - net (16,699) (274,483) Pakistan and its shares are quoted on Pakistan Stock Exchange Limited (PSX). The Holding
Proceeds from net investment in lease 4,789,991 3,218,108 Company is a subsidiary of Dawood Hercules Corporation Limited (the Parent Company). The
Finance income received on net investment in lease 6,139,802 5,163,724 principal activity of the Holding Company is to manage investments in subsidiary companies,
Deferred incentive (23,282) 333,885 associated companies and joint venture, engaged in fertilizers, PVC resin manufacturing and
Financial charges paid (20,910,989) (12,042,844) marketing, food, energy, LNG terminals, telecommunications infrastructure and chemical
Taxes paid (16,082,575) (10,141,753) terminal and storage businesses.
Long term loans and advances - net (1,287,068) 506,319
Discontinued operations - (21,688) The business units of the Holding Company and its subsidiaries include the following:
Net cash generated from operating activities 76,719,935 48,574,143 Business Unit Geographical Location
Cash flows from investing activities Head / Registered offices
Purchases of property, plant and equipment and intangible assets (40,730,263) (20,499,983) - The Holding Company 6th and 8th floors, The Harbour Front Building, Plot
Sale proceeds on disposal of property, plant and equipment 614,122 218,446 Number HC # 3, Marine Drive, Block 4, Clifton,
Payment for dismantling towers - (76,967) Karachi
Investment in associated companies - (474,839)
Investments (made) / redeemed during the year - net (62,421,239) 47,444,148
Income on deposits / other financial assets 12,722,838 7,931,687 - Engro Fertilizers Limited 7th and 8th floors, The Harbour Front Building, Plot
Deposit in respect of bank guarantees - 52,784 Number HC-3, Marine Drive, Block 4, Scheme No. 5,
Dividends received 932,500 1,155,000 Clifton, Karachi
Net cash (utilized in) / generated from investing activities (88,882,042) 35,750,276 - Engro Polymer and Chemicals Limited 12th Floor, Ocean Tower, G-3, Block 9, Clifton,
Cash flows from financing activities Khayaban-e-Iqbal, Karachi
Proceeds / repayments of borrowings - net (5,156,806) (7,315,025) - Elengy Terminal Pakistan Limited 4th Floor, Corporate Offices Block, Dolmen City, Plot
Share issuance cost - 528,177 Number HC-3, Block 4, Clifton, Karachi
Repayment of lease liability (4,108,332) (5,010,069)
Finance cost paid on lease liability (8,451,670) (4,573,207)
Dividends paid (37,041,962) (28,784,564) - Engro Energy Limited 16th Floor, Harbour Front Building, Plot Number
HC-3, Marine Drive, Block 4, Scheme No. 5, Clifton,
Net cash utilized in financing activities (54,758,770) (45,154,688) Karachi
Net (decrease) / increase in cash and cash equivalents (66,920,877) 39,169,731 - Engro Eximp Agriproducts 8th Floor, The Harbour Front Building, Plot Number
Cash and cash equivalents at beginning of the year 91,353,468 51,425,511 (Private) Limited HC-3, Marine Drive, Block 4, Scheme No. 5, Clifton,
Karachi
Effect of exchange rate changes on cash and cash equivalents 2,163,458 758,226
- Engro Eximp FZE BCW JAFZA 18 & 19, Office No 110 Dubai, United
Cash and cash equivalents at end of the year 48 26,596,049 91,353,468 Arab Emirates
The annexed notes from 1 to 63 form an integral part of these consolidated financial statements. - Engro Infiniti (Private) Limited 8th Floor, The Harbour Front Building, Plot Number
HC-3, Block 4, Clifton, Karachi
- Engro Connect (Private) Limited 8th Floor, The Harbour Front Building, Plot Number
HC-3, Block 4, Clifton, Karachi

Percentage of direct shareholding
Business Unit Geographical Location 2022 2021
Regional offices -------------Rupees---------------
- The Holding Company 22nd Floor, Ufone Tower Jinnah Avenue, Blue Area, - Engro Energy Limited (note 1.3.1) 100 100
Islamabad - Engro Eximp Agriproducts (Private) Limited (note 1.3.2) 100 100
- Engro Infiniti (Private) Limited (note 1.3.3) 100 100
- Engro Polymer and Chemicals Limited 9th Floor, 301-R Hally Tower, Phase II, DHA, Lahore - Engro Eximp FZE (note 1.3.4) 100 100
- Elengy Terminal Pakistan Limited (note 1.3.5) 56 56
- Engro Fertilizers Limited (note 1.3.6) 56.27 56.27
Manufacturing plants - Engro Polymer and Chemicals Limited (note 1.3.7) 56.19 56.19
- Engro Fertilizers Limited District Ghotki, Sindh (Daharki Plant) - Engro Connect (Private) Limited (note 1.3.8) 100 100
EZ/1/P-1-II Eastern Zone, Port Qasim,
Karachi (Zarkhez Plant) Joint Venture Company:
- Engro Vopak Terminal Limited (note 1.3.9) 50 50
Rahim Yar Khan, Punjab (Seeds Processing Plant)
Associated Company:
- Engro Polymer and Chemicals Limited EZ/I/P-II-I Eastern Zone, Port Bin Qasim Industrial
Area, Karachi - FrieslandCampina Engro Pakistan Limited (note 1.3.10) 39.9 39.9
- Engro Eximp Agriproducts 1.3 Subsidiary companies

(Private) Limited 13-Km, Sheikhupura Road, Muridke, 54800
1.3.1 Engro Energy Limited
Power plants
Engro Energy Limited (EEL), a wholly owned subsidiary of the Holding Company, is a public
- Engro Powergen Qadirpur Limited Deh Belo Sanghari, Ghotki, Sindh unlisted company incorporated in Pakistan on May 13, 2008. It is established with the primary
objective of analyzing potential opportunities in power sector, undertake supply and service
- Engro Powergen Thar (Private) Limited Thar Block II, Islamkot District, Tharparkar, Sindh related contracts and Independent Power Projects (IPPs).
Terminal Following are the companies in which EEL owns 50% or more of the voting rights or are directly
- Elengy Terminal Pakistan Limited Plot # OZ-I-P-81, South Western Zone, Berth no. 13, controlled by EEL:
Port Qasim Karachi Percentage of shareholding
2022 2021
Branded outlet
- Engro Polymer and Chemicals Limited Plot 41 - C, Bukhari Commercial Lane 2, Phase VI, - Engro Powergen Qadirpur Limited (note 1.3.1.1) 68.89 68.89
DHA, Karachi - Engro Powergen Thar (Private) Limited (note 1.3.1.2) 50.10 50.10
- Engro Energy Services Limited (note 1.3.1.3) 100 100
1.2 The "Group" consists of: - Engro Power International Holding B.V. (note 1.3.1.4) 100 100
- Kolachi Portgen (Private) Limited (note 1.3.1.5) - 100
Holding Company: Engro Corporation Limited Following are the associated companies of EEL in which it holds direct shareholding:
Associated Companies: Associated companies are entities over which the Group has significant
influence but not control. Percentage of direct holding
2022 2021
Subsidiary Companies: Companies in which the Holding Company owns over 50% of voting
rights, or companies directly controlled by the Holding Company: - GEL Utility Limited (note 1.3.1.6) 45 45
- Sindh Engro Coal Mining Company Limited (note 1.3.1.7) 11.9 11.9
- Pakistan Energy Gateway Limited (note 1.3.1.8) 33.3 33.3
- Siddiqsons Energy Limited (note 1.3.1.9) 19 19

1.3.1.1 Engro Powergen Qadirpur Limited (EPQL) is a public listed company incorporated in Pakistan on 1.3.1.3 Engro Energy Services Limited (EESL) was established as a wholly owned subsidiary of EEL
February 28, 2006 with the primary objective to undertake the business of power generation, on June 01, 2018 with the primary objective of analyzing potential opportunities in the power
distribution, transmission and sale. EPQL completed construction and testing of its 217.3 MW sector and undertaking service related contracts for Independent Power Projects (IPPs) based
combined cycle power plant and commenced commercial operations on March 27, 2010. The on feasibility of new ventures and to provide operations and maintenance services to IPPs.
electricity generated is transmitted to the National Transmission and Dispatch Company (NTDC)
under the Power Purchase Agreement (PPA) dated October 26, 2007, which is valid for a period 1.3.1.4 Engro Power International Holding B.V. (EPIH), was established as a wholly owned subsidiary
of 25 years. of EEL on June 26, 2014 with the objective to incorporate, participate, manage and supervise
businesses and companies.
On August 12, 2020, EPQL, along with other Independent Private Power Producers (“IPPs”)
representing the 2002 Power Policy projects (collectively referred to as the “Parties”), signed a EPIH has two wholly owned subsidiaries namely Engro Power Services Holding B.V. (EPSH)
Memorandum of Understanding (MOU) with the Committee for negotiations with IPPs. The and Engro Power Investments International B.V. (EPII) both based in Netherlands. EPSH has a
Board of Directors of EPQL in their meeting dated August 17, 2020 in-principle approved the wholly owned subsidiary namely Engro Power Services Limited (EPSL) established in Nigeria
terms of the MoU. In line with the understanding reached in the MOU, EPQL and CPPA - G (the with the objective to carry on business as power generation, transmission, distribution and
“Parties”) entered into a Master Agreement on February 11, 2021, based on the terms of the servicing company. EPSL has a joint venture EngroGen Energy Services Limited established in
MOU, which also included that all undisputed outstanding amounts due and payable to EPQL Mauritius.
under the PPA, as on November 30, 2020, would be paid in two (2) instalments [each instalment
comprising of one-third cash and two-thirds government issued Pakistan Investment Bonds 1.3.1.5 Kolachi Portgen (Private) Limited (KPPL) was established and incorporated in Pakistan on
(PIBs) and Sukuks]. Further, in the larger national interest, EPQL agreed to (prospectively) accept September 17, 2015, as a wholly owned subsidiary of EEL, with the objective to operate and
a reduction in the tariff component, whereby the Return on Equity (“RoE”) and the Return on own a Regasified Liquefied Natural Gas (RLNG) based power generation plant.
Equity During Construction (“RoEDC”) was to be fixed at 17% per annum in PKR on National
Electric Power Regulatory Authority (NEPRA) approved equity at Commercial Operations Date During the year, EEL received acceptance for the winding up of KPPL from the relevant
for RoE and RoEDC, calculated at USD / PKR exchange rate of PKR 148/ USD, with no future authorities under the Companies (Easy Exit) Regulations, 2014. Accordingly, the Group has
USD indexation. However, the then existing RoE and RoEDC, together with the applicable written off its investment in KPPL amounting to Rs. 100.
indexations, were to apply until the date the applicable exchange rate under the then Tariff
reached PKR 168 / USD and instalments were received by EPQL, whereupon the Revised RoE
1.3.1.6 GEL Utility Limited (GEL) is a private limited company in Nigeria with the objective of generation
and RoEDC were to become applicable and would apply for the remainder of the term of the
and distribution of energy, power and other related services and has undertaken a project of
PPA. In addition to this, fuel and operations and maintenance cost have been considered as
72 MW triple redundancy captive power plant, which commenced commercial operations
single consolidated item and any savings, if determined, from July 1, 2021 will be shared in the
ratio of 60:40 between CPPA and EPQL. During the year, EPQL received both installments on from November 21, 2014. EEL holds 12,272,727 ordinary shares of Naira 1 each in GEL
January 6, 2022 and June 30, 2022 aggregating to Rs. 8,147,368. Accordingly, the revised tariff representing a 45% (2021: 45%) equity stake.
has been notified by NEPRA with effect from July 1, 2022.
1.3.1.7 Sindh Engro Coal Mining Company Limited (SECMC) was formed under a Joint Venture
1.3.1.2 Engro Powergen Thar (Private) Limited (EPTL) was established on September 23, 2014 with the Agreement (JVA), dated September 8, 2009, between the Government of Sindh (GoS), EEL
primary objective to develop 2 x 330 MW mine mouth power plants at Thar Block II, Sindh for and the Holding Company. The aforementioned JVA is consequent to the selection of SECMC
power generation, distribution, transmission and sale. The electricity generated is transmitted to as GoS’s joint venture partner, through an International Competitive Bidding process, for the
NTDC under the Power Purchase Agreement (PPA) dated May 04, 2015. This agreement is valid development, construction and operations of an open cast lignite mine in Block-II of Thar Coal
for a period of 30 years. As at December 31, 2022, EEL holds 50.10% (2021: 50.10%) of the Field, Sindh (the Project). SECMC achieved its CoD for Phase I and Phase II of the project on
issued capital of EPTL while the balance shares are held by CMEC Thar Power Investment July 10, 2019 and October 1, 2022, respectively. SECMC has entered into Offshore
Limited (35%), Habib Bank Limited (9.5%) and Liberty Mills Limited (5.4%). EPTL achieved its agreements with China Machinery Engineering Corporation (CMEC) and Onshore agreement
Commercial Operations Date (COD) on July 10, 2019. with China East Resource Import and Export Corporation (CERIEC) dated December 21, 2017
for expansion of mine to supply coal to the power plants. In its 79th meeting, Board of
During the year, on March 2, 2022, an explosion occurred on the coal conveyor belt system Directors of SECMC approved the plan to expand the mine to 12.2 million tonnes per annum
which feeds the coal into the power plant. The power plant was under schedule maintenance to cater to coal off-take requirements of Lucky Electric Power Company Limited (LEPCL) and
where one of the units was already shutdown and other was operational. For safety reasons, instructed the management to finalize all modalities for this expansion. EEL holds 11.9%
EPTL's management decided to shutdown the other unit as well. Post rehabilitation work of the (2021: 11.9%) equity stake in SECMC.
coal conveyor belt system, operations from one of the units were resumed in April 2022, while
the other unit came online in May 2022. EPTL utilized forced outage allowance and continued to 1.3.1.8 Pakistan Energy Gateway Limited (PEGL) is a special purpose vehicle incorporated jointly with
bill Capacity Purchase Price. For rehabilitation works, an aggregate of Rs. 903,388 had been Shell Gas B.V. and Pakarab Fertilizers Limited for the purpose of developing a private
incurred and insurance claim has been lodged under the policy for the recovery of the same integrated LNG terminal, with each of the three subscribers / shareholders having a 33.3%
which has been acknowledged by the insurance company. All related financial impacts have shareholding. PEGL is yet to commence its business operations.
been incorporated in these consolidated financial statements as at the reporting date.

1.3.1.9 EEL entered into a Joint Venture Agreement (JVA), dated May 04, 2018 with Siddiqsons Limited EEF has obtained a General Trading License issued by Jafza Jebel Ali Free Zone and is engaged
(SL) and Arif Habib Equity (Private) Limited (AHEPL) for the joint development of approximately in the business of trading.
330 MW of coal-fired power generation facility in Thar Block - II, District Tharparkar, Sindh
through a joint venture company, namely Siddiqsons Energy Limited (SEL). The JVA became 1.3.5 Elengy Terminal Pakistan Limited
effective from May 26, 2018 as per the terms of which EEL, AHEPL and SL, were initially required
to have shareholding proportions equal to 19%, 19% and 62% respectively in their mutual Elengy Terminal Pakistan Limited (ETPL), is a public unlisted company, incorporated in Pakistan
capacity as the members of SEL. As at December 31, 2022, EEL has subscribed to 38,392,920 on January 4, 2012. The principal business of ETPL is to establish and operate a terminal for
(2021: 38,392,920) ordinary shares of Rs. 10 each of SEL. EEL in its Board meeting held on handling, re-gasification, storage, treatment and processing, along with import, export and
August 12, 2021 decided to resign from the Project Management Agreement with SEL in view of trading of Liquefied Natural Gas (LNG), Re-gasified Liquefied Natural Gas (RLNG), Liquid
the significant project delays to achieve financial close of the power project. Accordingly, an Petroleum Gas (LPG), Natural Gas Liquid (NGL) and all other related liquids, gases and chemical
impairment loss of Rs. 383,929 was recognized in 2021, representing the write-down of carrying and petroleum products.
amount of investments in SEL determined with reference to fair value less cost of disposal.
1.3.5.1 Engro Elengy Terminal (Private) Limited (EETPL) is a wholly owned subsidiary of ETPL. The
In addition, the Group has also recognized provision of Rs. 81,911 (2021: Rs. 182,801) and Rs. principal business of EETPL is to establish and operate LNG Terminal including a jetty, pipeline
163,822 (2021: Rs. 128,638) against the performance guarantees given by EEL and with all machinery and equipment and supporting facilities for the receipt, storage and
Engineering, Procurement and Construction contractors' liability of SEL, respectively, on the re-gasification of LNG.
basis of shareholding proportion in SEL.
1.3.6 Engro Fertilizers Limited
1.3.2 Engro Eximp Agriproducts (Private) Limited
Engro Fertilizers Limited (EFert), is a public listed company, incorporated in Pakistan on June 29,
Engro Eximp Agriproducts (Private) Limited (EEAPL) is a private limited company, incorporated in 2009. The principal activity of EFert is manufacturing, purchasing and marketing of fertilizers,
Pakistan on November 3, 2009. The principal activity of EEAPL is to produce, manufacture and seeds and pesticides and providing logistics services.
trade all kinds of raw, processed and prepared food products including agriculture, dairy and
farming products. EEAPL has set up a rice processing plant in District Sheikhupura, which 1.3.6.1 In 2017, EFert Agritrade (Private) Limited (EAPL) was incorporated as a wholly owned subsidiary
commenced commercial production in 2011. of EFert to carry out trading and distribution of imported fertilizers as part of business
reorganization. EFert transferred its business of trading and distribution of imported fertilizers to
1.3.3 Engro Infiniti (Private) Limited EAPL.
Engro Infiniti (Private) Limited, (EInfiniti) was incorporated as a wholly owned subsidiary in 1.3.7 Engro Polymer and Chemicals Limited
Pakistan on December 29, 2017. The primary objective of EInfiniti is to analyze potential
opportunities inside and outside Pakistan and to make available digital assets and ventures Engro Polymer and Chemicals Limited (EPCL), is a public listed company, incorporated in
related to intellectual capital, data collection and analytics of every kind and any activities relating Pakistan. The principal activity of EPCL is to manufacture, market and sell Poly Vinyl Chloride
to or ancillary thereto. (PVC), Vinyl Chloride Monomer (VCM), Caustic soda and other related chemicals. It is also
engaged in the supply of surplus power generated from its power plants to EFert.
1.3.3.1 Engro Digital Limited (EDL) was a public unlisted company, incorporated in Pakistan on October
29, 2017 under the Companies Act, 2017 (the Act). EDL was established with the primary Following are the subsidiaries of EPCL:
objective of analyzing potential opportunities and making available digital and technology Percentage of shareholding
services and products inside and outside Pakistan. 2022 2021
The Board of EDL in its meeting held on February 16, 2022 decided to amalgamate EDL with
and into EInfiniti, in accordance with the Scheme of Amalgamation (the Scheme) with effect from - Think PVC (Private) Limited (note 1.3.7.1) 100 100
March 31, 2022. The scheme was approved by SECP on July 1, 2022. As a result, EDL - Engro Peroxide (Private) Limited (note 1.3.7.2) 100 100
amalgamated with EInfiniti on March 31, 2022 through transfer to and vesting in EInfiniti, the - Engro Plasticizer (Private) Limited (note 1.3.7.3) 100 100
cancellation of EDL shares and the dissolution of EDL without winding up.
1.3.4 Engro Eximp FZE 1.3.7.1 Think PVC (Private) Limited (TPPL) was incorporated in Pakistan on November 6, 1999, as a
wholly owned subsidiary of EPCL. TPPL's principal activity was to purchase, market and sell Poly
Engro Eximp FZE (EEF) was incorporated in the Jebel Ali Free Zone, Emirate of Dubai, on August Vinyl Chloride (PVC), PVC compounds, Caustic soda and other related chemicals. However,
4, 2011 and operates under a trade license issued by the Jebel Ali Free Zone Authority. EEF is a TPPL is now focused on marketing of PVC products through its branded outlet instead of trading
wholly owned subsidiary of the Holding Company. in PVC products.

1.3.7.2 Engro Peroxide (Private) Limited (EPPL) was incorporated in Pakistan on July 22, 2019, as a 2.1 Basis of preparation
wholly owned subsidiary of EPCL. The main objective of EPPL is to manufacture and market
Hydrogen Peroxide and related chemicals. 2.1.1 These consolidated financial statements have been prepared under the historical cost
convention as modified by remeasurement of certain financial assets and financial liabilities,
1.3.7.3 Engro Plasticizer (Private) Limited (EPPPL) was incorporated in Pakistan on July 22, 2019, as a including derivative financial instruments, at fair value, and recognition of certain staff retirement
wholly owned subsidiary of EPCL. EPCL is currently assessing the projects for which EPPPL will and other service benefits at present value.
be utilized.
2.1.2 Statement of compliance
1.3.8 Engro Connect (Private) Limited
These consolidated financial statements have been prepared in accordance with the accounting
Engro Connect (Private) Limited (ECPL) is a private limited company, incorporated in Pakistan on and reporting standards as applicable in Pakistan. The accounting and reporting standards
March 16, 2021 as a wholly owned subsidiary of the Holding Company. ECPL has been applicable in Pakistan comprise of:
established with the primary objective to engage in buying, building, maintaining and operating
telecommunication infrastructure. - International Financial Reporting Standards (IFRSs) issued by the International Accounting
Standards Board (IASB) as notified under the Companies Act, 2017 (the Act); and
1.3.8.1 Engro Enfrashare (Private) Limited (Enfrashare) was incorporated in Pakistan as a private limited
company on November 13, 2018. Enfrashare is principally engaged in buying, building, - Provisions of and directives issued under the Act.
maintaining and operating telecommunication infrastructure and any products and by products
and any activities relating to or ancillary thereto. On September 23, 2021, the Board of the Where provisions of and directives issued under the Act differ from the requirements of IFRSs,
Holding Company resolved for change in ownership of Enfrashare from Engro Infiniti (Private) the provisions of and directives issued under the Act have been followed.
Limited to Engro Connect (Private) Limited. Engro Connect (Private) Limited has met all
regulatory requirements in relation to the change in ownership and has acquired 100% ordinary 2.1.3 The preparation of consolidated financial statements in conformity with the above requirements
shares of Enfrashare from Engro Infiniti (Private) Limited. requires the use of certain critical accounting estimates. It also requires management to exercise
its judgement in the process of applying the Group's accounting policies. The areas involving
1.3.9 Engro Vopak Terminal Limited high degree of judgement or complexity, or areas where assumptions and estimates are
significant to the consolidated financial statements are disclosed in note 3.
Engro Vopak Terminal Limited (EVTL), a 50% share joint venture of the Holding Company and
Royal Vopak Netherlands B.V, is a public unlisted company incorporated in Pakistan on 2.1.4 Initial application of Standards, Amendments or an Interpretation to existing Standards
November 7, 1995. EVTL has been granted the exclusive concession, right and license to
design, finance, insure, construct, test, commission, complete, operate, manage and maintain a) Amendments to accounting and reporting standards that became effective during the year
an Integrated Liquid Chemical Terminal and Storage Farm at the South Western Zone of Port
Qasim on Build, Operate and Transfer (BOT) basis. There are certain amendments to published standards that are effective for the first time for
the year ended December 31, 2022; however, these are considered not to have a significant
1.3.10 FrieslandCampina Engro Pakistan Limited impact on the Group's financial reporting and operations, and therefore have not been
presented here.
FrieslandCampina Engro Pakistan Limited (FCEPL), is a public listed company, incorporated in
Pakistan on April 26, 2005. FCEPL is a subsidiary of FrieslandCampina Pakistan Holdings B.V., b) Standards, amendments to accounting and reporting standards that are not yet effective and
which is a subsidiary of Zuivelcoöperatie FrieslandCampina UA (the Ultimate Parent Company of have been early adopted by the Group
FCEPL).
IFRS 16 'Leases' - The amendment permits lessees, as a practical expedient, not to assess
The principal activity of FCEPL is to manufacture, process and sell dairy products, beverages, ice whether particular rent concessions occurring as a direct consequence of the Covid-19
cream and frozen desserts. FCEPL also owns and operates a dairy farm. pandemic are lease modifications and instead to account for those rent concessions as if they
are not lease modifications.
2. summary of significant accounting policies
The significant accounting policies applied in the preparation of these consolidated financial The Group has applied the practical expedient to all qualifying rent concessions granted in
statements are set out below. These policies have been consistently applied to all the years relation to office space acquired under rental basis. As a result, Rs. 12,729 (2021: Rs. 24,205)
presented, unless otherwise stated. has been recognized in the consolidated statement of profit or loss (note 25) to reflect
changes in lease payments arising from rent concessions that meet the conditions of the
practical expedient.

c) Standards, amendments to accounting and reporting standards that are not yet effective and Inter-company transactions, balances, income and expenses on transactions between group
have not been early adopted by the Group companies are eliminated. Profits and losses (unrealized) are also eliminated. Accounting
policies of the subsidiaries have been changed where necessary to ensure consistency with
The new standard and amendments to published standards that are not effective for the the policies adopted by the Group.
period beginning on January 1, 2022 are considered not to be relevant or to have any
significant effect on the Group's financial reporting and operations and, therefore, have not ii) Transactions with non-controlling interests
been disclosed in these consolidated financial statements.
The Group treats transactions with non-controlling interests that do not result in loss of control
2.1.5 Basis of consolidation as transactions with equity owners of the Group. The difference between fair value of any
consideration paid / received and the relevant share acquired / disposed off of the carrying
i) Subsidiaries value of net assets of the subsidiary is recorded in equity. Gains or losses to non-controlling
interests are also recorded in equity.
Subsidiaries are all entities over which the Group has the power to govern the financial and
operating policies generally accompanying a shareholding of more than one half of the voting iii) Disposal of subsidiaries
rights. The existence and effect of potential voting rights that are currently exercisable or
convertible are considered when assessing whether the Group controls another entity. When the Group ceases to have control or significant influence, any retained interest in the
Further, the Group also considers whether: entity is remeasured to its fair value, with the change in carrying amount recognized in the
consolidated statement of profit or loss. The fair value is the initial carrying amount for the
- it has power to direct the relevant activities of the subsidiaries; purposes of subsequent accounting for the retained interest as an associate, joint venture or
financial asset depending on the level of influence retained. In addition, any amounts
- it is exposed to variable returns from the subsidiaries; and previously recognized in other comprehensive income in respect of that entity are accounted
for as if the Group had directly disposed off the related assets or liabilities. This may mean that
- decision making power allows the Group to affect its variable returns from the subsidiaries. amounts previously recognized in other comprehensive income are reclassified to profit or
loss.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group.
They are de-recognized from the date the control ceases. These consolidated financial 2.2 Exploration and evaluation assets
statements include Engro Corporation Limited (the Holding Company) and all companies in
which it directly or indirectly controls, beneficially owns or holds more than 50% of the voting Exploration and evaluation assets in respect of area of interest includes license fee, detailed
securities or otherwise has power to elect and appoint more than 50% of its directors (the feasibility study and all other related studies to ensure bankability of the project including ancillary
subsidiaries). (operating and administrative) cost related thereto.
The Group uses the acquisition method of accounting to account for business combinations. The aforementioned expenditure supporting the technical feasibility and economic / commercial
The consideration transferred for the acquisition of a subsidiary is the fair value of the assets viability, are capitalized as exploration and evaluation assets, where:
transferred, the liabilities incurred and the equity interests issued by the Group. The
consideration transferred includes the fair value of any asset or liability resulting from a - such costs are expected to be recouped through successful development and exploration of
contingent consideration arrangement. Acquisition-related costs are expensed as incurred. the area of interest or alternatively, by its sale; or
Identifiable assets acquired and liabilities assumed (including contingent liabilities) in a
business combination are measured initially at their fair values at the acquisition date. On an - exploration and / or evaluation activities in the area of interest have not yet reached a stage
acquisition-by-acquisition basis, the Group recognizes any non-controlling interest in the which permits a reasonable assessment of the existence, or otherwise of economically
acquiree either at fair value or at the non-controlling interest’s proportionate share of the recoverable reserves, and active and significant operations in, or in relation to, the area are
acquiree’s identifiable net assets. continuing.
If the business combination is achieved in stages, the acquisition date carrying value of the Capitalized exploration and evaluation expenditure is recorded at cost less impairment charges,
acquirer's previously held equity interest in the acquiree is re-measured to fair value at the if any. As asset is not available for use, it is not depreciated, however, an estimate of the
acquisition date; any gains or losses arising from such re-measurement are recognized in the recoverable amount of asset is made for possible impairment on an annual basis.
consolidated statement of profit or loss.
Cash flows associated with exploration and evaluation expenditure are classified as investing
Goodwill is initially measured as the excess of the aggregate of the consideration transferred activities in the consolidated statement of cash flows.
and the amount of non-controlling interest over the fair value of the net identifiable assets
acquired and liabilities assumed. If this is less than the fair value of the net assets of the
subsidiary acquired in the case of a bargain purchase, the difference is recognized in the
consolidated statement of profit or loss.

2.3 Development properties The Group reviews and adjusts (if required) the appropriateness of the rate of depreciation, useful
life and residual value used in the calculation of depreciation on a regular basis.
Development expenditure represents expenditure incurred in area in which economically
recoverable resources have been identified. Such expenditure comprises costs directly 2.4.2 Dredging expenditure
attributable to the construction of a mine and related infrastructure.
Dredging expenditure is categorized into capital dredging and major maintenance dredging.
Once a development decision has been taken, the carrying amount of the exploration and Capital dredging is expenditure, which creates new harbour and deepens or extends the basin
evaluation asset is transferred to development expenditure and classified under non-current in front of jetty in order to allow access to larger ships. This expenditure is capitalized and is being
assets as 'development properties'. depreciated over a period of 30 years.
Capitalized development properties expenditure is recorded at cost less impairment, if any. As Major maintenance dredging is expenditure incurred to restore the depth to its previous
the asset is not available for use, it is not depreciated; however, an estimate of the recoverable condition. The management estimates that maintenance dredging has an average service
amount of asset is made for possible impairment on an annual basis. potential of 5 years. Maintenance dredging is regarded as a separate component and is
capitalized and depreciated over a period of 5 years on straight line basis.
Cash flows associated with development properties are classified as investing activities in the
consolidated statement of cash flows. 2.5 Capital spares
2.4 Property, plant and equipment Spare parts and servicing equipment are classified as property, plant and equipment rather than
stores, spares and loose tools when they meet the definition of property, plant and equipment.
2.4.1 Owned assets These are valued at weighted average cost less impairment except for items in transit which are
stated at invoice value plus other charges paid thereon till the reporting date. For items which
These are stated at historical cost less accumulated depreciation and impairment losses, if any, are slow moving and / or identified as surplus to the Group's requirements, adequate provision
except for free-hold land and capital work in progress which are stated at cost less impairment is made for any excess book value over estimated realizable value. Upon utilization, the capital
losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of spares and servicing equipment are depreciated over their useful life, or the remaining life of
the items including borrowing costs. The cost of self constructed assets includes the cost of principal asset, whichever is lower.
materials and direct labour, any other costs directly attributable to bringing the asset to a working
condition for its intended use, and the costs of dismantling and removing the items and restoring 2.6 Intangible assets
the site on which they are located. Purchased software that is integral to the functionality of the
related equipment is capitalized as part of that equipment. Capital work in progress mainly a) Computer software and licenses
comprises of expenditure incurred and advances made in respect of operating fixed assets in the
course of their erection, installation and acquisition. i) Acquired
Where major components of an item of property, plant and equipment have different useful lives, Costs associated with maintaining computer software programmes are recognized as an
they are accounted for as separate items of property, plant and equipment. expense when incurred. However, costs that are directly attributable to identifiable software
and have probable economic benefits exceeding the cost beyond one year, are recognized
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as an intangible asset. Direct costs include the purchase cost of software (license fee) and
as appropriate, only when it is probable that future economic benefits associated with the item related overhead cost.
will flow to the Group and the cost of the item can be measured reliably. The carrying amount of
the replaced part is derecognized. All other repairs and maintenance are charged to the Following initial recognition, computer software and licenses are carried at cost less
consolidated statement of profit or loss during the financial period in which they are incurred. accumulated amortization and impairment losses, if any.
Disposal of asset is recognized when significant risk and rewards incidental to ownership have Expenditure which enhances or extends the performance of computer software beyond its
been transferred to buyers. Gains and losses on disposals are determined by comparing the original specification and useful life is recognized as a capital improvement and added to
proceeds with the carrying amount and are recognized within ‘other operating expenses / the original cost of the software.
income’ in the consolidated statement of profit or loss in the financial year of disposal.
Computer software and license cost treated as intangible assets are amortized from the
Depreciation is charged to the consolidated statement of profit or loss using the straight line date the software is put to use on a straight-line basis over their respective useful lives,
method, except for catalyst whose depreciation is charged on the basis of number of production ranging from 4 years to 10 years.
days, whereby the cost of an operating asset less its estimated residual value is written off over
its estimated useful life. Depreciation on addition is charged from the month following the month The amortization on additions, if any, is charged from the month following the month in
in which the asset is available for use and on disposals upto the preceding month of disposal. which the asset is available for use and on disposals upto the month of disposal.

ii) Internally generated In determining the lease term, management considers all facts and circumstances that create an
economic incentive to exercise an extension option or not to exercise a termination option.
The cost of an internally generated intangible asset comprises all directly attributable costs Extension options (or periods after termination options) are only included in the lease term if the
necessary to create, produce and prepare the asset to be capable of operating in the lease is reasonably certain to be extended (or not terminated).
manner intended by management. After initial recognition, internally generated intangible
assets are carried at cost less accumulated amortization and impairment losses, if any. The lease liability is initially measured at the present value of the lease payments that are not paid
These are amortized on straight-line basis over a period upto 5 years. The amortization on at the commencement date, discounted using the interest rate implicit in the lease, or if that rate
additions, if any, is charged from the month following the month in which the asset is cannot be readily determined, the Group's incremental borrowing rate.
available for use and on disposals upto the preceding month of disposal.
Lease payments include fixed payments less any lease incentives received, variable lease
Expenditure on research (or the research phase of an internal project) is recognized as an payments that are based on an index or a rate which are initially measured using the index or a
expense in the period in which it is incurred. rate as at the commencement date, amounts expected to be payable by the Group under
residual value guarantees, the exercise price of a purchase option, if any, if the Group is
Development costs incurred on specific projects are capitalized when all the following reasonably certain to exercise that option and payments of penalties for terminating the lease, if
conditions are satisfied: the lease term reflects the lessee exercising that option, less any lease incentives receivable. The
extension and termination options are incorporated in determination of lease term only when the
- Completion of the intangible asset is technically feasible so that it will be available for use Group is reasonably certain to exercise these options.
or sale;
The lease liability is subsequently measured at amortized cost using the effective interest rate
- The Group intends to complete the intangible asset and use or sell it; method. It is remeasured when there is a change in future lease payments arising from a change
in fixed lease payments or an index or rate, change in the Group's estimate of the amount
- The Group has the ability to use or sell the intangible asset; expected to be payable under a residual value guarantee, or if the Group changes its
assessment of whether it will exercise a purchase, extension or termination option. The
- The intangible asset will generate probable future economic benefits. Among other corresponding adjustment is made to the carrying amount of the right-to-use asset, and is
things this requires that there is a market for the output from the intangible asset or for recorded in the consolidated statement of profit or loss if the carrying amount of right-to-use
the intangible asset itself, or if it is to be used internally, the asset will be used in asset has been reduced to zero.
generating such benefits;
A change in scope of a lease, or the consideration for a lease, that was not part of the original
- There are adequate technical, financial and other resources to complete the terms and conditions of the lease is accounted for as a lease modification. The lease modification
development and to use or sell the intangible asset; and is accounted for as a separate lease if modification increases the scope of lease by adding the
right to use one or more underlying assets and the consideration for lease increases by an
- The expenditure attributable to the intangible asset during its development can be amount that is commensurate with the stand-alone price for the increase in scope adjusted to
measured reliably. reflect the circumstances of the particular contracts, if any. When the lease modification is not
accounted for as a separate lease, the lease liability is remeasured and corresponding
b) Rights for future gas utilization adjustment is made to right of use asset.
Rights for future gas utilization represents premium paid to the Government of Pakistan for The right-of-use asset is initially measured based on the initial amount of initial measurement of
allocation of 100 MMCFD natural gas for a period of 20 years for EFert's Enven plant. The the lease liability adjusted for any lease payments made at or before the commencement date,
rights are being amortized from the date of commercial production on a straight-line basis plus any initial direct costs incurred and an estimate of costs to be incurred to dismantle and
over the remaining allocation period. remove the underlying asset or to restore the underlying asset or the site on which it is located,
less any lease incentive received. The right-of-use asset is depreciated on a straight line method
2.7 Leasing activities as a lessee over the lease term as this method most closely reflects the expected pattern of consumption of
future economic benefits. The right-of-use asset is reduced by impairment losses, if any, and
Lease liabilities and right-of-use assets: adjusted for certain remeasurements of the lease liability.
At inception of a contract, the Group assesses whether a contract is, or contains, a lease based The Group has elected to apply the practical expedient not to recognize right-of-use assets and
on whether the contract conveys the right to control the use of an identified asset for a period of lease liabilities for short term leases that have a lease term of 12 months or less and leases of low
time in exchange for consideration. Lease terms are negotiated on an individual basis and value assets. The lease payments associated with these leases is recognized as an expense on
contain a wide range of different terms and conditions. a straight line basis over the lease term.

2.8 Leasing activities as a lessor Investment in joint venture / associates is accounted for using the equity method of accounting.
Under the equity method, the investment is initially recognized at cost and the carrying amount
The Group enters into lease arrangements with respect to its LNG infrastructure for receipt, is increased or decreased to recognize the investor's share of profit or loss of the investee after
storage and regasification of LNG. the date of acquisition. The Group's investment in joint venture / associates includes goodwill
identified on acquisition. The Group determines at each reporting date whether there is any
Leases for which the Group is a lessor are classified as finance or operating leases. Whenever objective evidence that the investment in joint venture / associate is impaired. If this is the case,
the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the Group calculates the impairment loss as the difference between the recoverable amount of
the contract is classified as a finance lease. All other leases are classified as operating leases. joint venture / associates and its carrying value and recognizes the loss in the consolidated
statement of profit or loss.
When the Group is an intermediate lessor, it accounts for the head lease and the sublease as two
separate contracts. The sublease is classified as a finance or operating lease by reference to the In respect of an interest in a joint operation, the Group recognizes its assets, including its share
right-of-use asset arising from the head lease. of any assets held jointly; its liabilities, including its share of any liabilities incurred jointly; its
revenue, including its share of the output arising from the joint operation; its expenses, including
Rental income from operating leases is recognized on a straight-line basis over the term of the its share of any expenses incurred jointly.
relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are
added to the carrying amount of the leased asset and recognized on a straight-line basis over 2.11 Financial assets
the lease term.
2.11.1 Classification, initial recognition and measurement
Amounts due from lessees under finance leases are recognized as receivable at the amount of
the Group's net investment in the leases. Finance lease income is allocated to accounting Financial assets are classified into appropriate categories on initial recognition and are
periods so as to reflect a constant periodic rate of return on the Group’s net investment subsequently measured at amortized cost, at fair value through other comprehensive income or
outstanding in respect of the leases. at fair value through profit or loss. The management determines the classification of financial
assets into appropriate categories based on the Group’s business model for managing the
When a contract includes lease and non-lease components, the Group applies IFRS 15 to financial assets and the contractual terms of the cash flows.
allocate the consideration under the contract to each component.
A financial asset is measured at amortized cost if both of the following conditions are met:
2.9 Impairment of non-financial assets
a) the financial asset is held within a business model whose objective is to hold financial
Assets that are subject to depreciation / amortization are reviewed at each reporting date to assets in order to collect contractual cash flows; and
identify circumstances indicating occurrence of impairment loss or reversal of previous
impairment losses. An impairment loss is recognized for the amount by which the asset’s b) the contractual terms of the financial asset give rise on specified dates to cash flows that
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an are solely payments of principal and interest on the principal amount outstanding.
asset's fair value less cost to sale and value in use.
A financial asset is measured at fair value through other comprehensive income if both of the
An impairment loss is reversed if there is a change in the estimates used to determine the following conditions are met:
recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that would have been determined, net of a) the financial asset is held within a business model whose objective is achieved by both
depreciation or amortization, if no impairment loss had been recognized. collecting contractual cash flows and selling financial assets; and
2.10 Investments in Joint Arrangements and Associates b) the contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding.
Joint arrangements are arrangements in which the Group has contractually agreed sharing of
control, which exists only when decisions about the relevant activities require unanimous consent A financial asset is measured at fair value through profit or loss if it is not measured at amortized
of the parties sharing control. cost or at fair value through other comprehensive income.
Joint arrangements are classified as joint operations or joint ventures depending upon the rights All financial assets are recognized at the time when the Group becomes a party to the
and obligations arising from the joint arrangement. The Group classifies a joint arrangement as contractual provisions of the instrument. Financial assets at amortized cost are initially
joint operation when the Group has the rights to the assets, and obligations for the liabilities, recognized at fair value and are subsequently measured at amortized cost using the effective
relating to the arrangement. The Group classifies a joint arrangement as a joint venture when it interest method. The amortized cost is reduced by impairment losses, if any. Interest income and
has the rights to the net assets of the arrangement. impairment losses are recognized in profit or loss. Financial assets carried at fair value through

other comprehensive income are initially and subsequently measured at fair value, with gains and A financial liability is derecognized when the obligation under the liability is discharged or
losses arising from changes in fair value recognized in other comprehensive income. Financial cancelled or expired. Where an existing financial liability is replaced by another from the same
assets carried at fair value through profit or loss are initially recorded at fair value and transaction lender on substantially different terms, or the terms of an existing liability are substantially
costs are expensed in the consolidated statement of profit or loss. Realized and unrealized gains modified, such an exchange or modification is treated as a derecognition of the original liability
and losses arising from changes in the fair values of the financial assets and liabilities held at fair and the recognition of a new liability, and the difference in respective carrying amounts is
value through profit or loss are included in the profit or loss in the period in which they arise. recognized in the consolidated statement of profit or loss.
Upon initial recognition, the Group can elect to irrevocably classify its equity investments as 2.11.5 Offsetting financial instruments
equity instruments designated at fair value through other comprehensive income when they
meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held Financial assets and liabilities are offset and the net amount is reported in the consolidated
for trading. The classification is determined on an instrument-by-instrument basis. Gains and statement of financial position when there is a legally enforceable right to offset the recognized
losses on these financial assets are never recycled to profit or loss. Dividends are recognized as amounts and there is an intention to settle either on a net basis, or realize the asset and settle the
other income in profit or loss when the right of payment has been established, except when the liability simultaneously. The legally enforceable right must not be contingent on future events and
Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in must be enforceable in the normal course of business and in the event of default, insolvency or
which case, such gains are recorded in other comprehensive income. Equity instruments bankruptcy of the Group or the counterparty.
designated at fair value through other comprehensive income are not subject to impairment
assessment. 2.12 Hedging relationships
2.11.2 Derecognition The Group currently accounts for two types of hedging relationships:
Financial assets are derecognized when the rights to receive cash flows from the assets have Fair value hedge
expired or have been transferred and the Group has transferred substantially all the risks and
rewards of ownership. On derecognition of a financial asset, in its entirety, the difference between Fair value hedge is a hedge of the exposure to changes in fair value of a recognized asset or
the asset’s carrying amount and the sum of the consideration received and receivable is liability or an unrecognized firm commitment, or a component of any such item, that is
recognized in the profit or loss or other comprehensive income, as the case maybe. attributable to a particular risk and could affect the consolidated statement of profit or loss.
2.11.3 Impairment of financial assets The Group accounts for fair value hedging relationships as follows:
The Group assesses on a forward looking basis the expected credit losses associated with its (a) the gain or loss on the hedging instrument is recognized in profit or loss (or other
debt instruments carried at amortized cost and at fair value through other comprehensive comprehensive income, if the hedging instrument hedges an equity instrument for which the
income. The impairment methodology applied depends on whether there has been a significant Group has elected to present changes in fair value in other comprehensive income).
increase in credit risk. For trade debts, the Group applies the simplified approach permitted by
IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the (b) the hedging gain or loss on the hedged item shall adjust the carrying amount of the hedged
receivables except for debts due from the Government of Pakistan as a consequence of circular item (if applicable) and be recognized in profit or loss. If the hedged item is a financial asset
debt which were initially exempted from the application of Expected Credit Loss model under (or a component thereof) that is measured at fair value through other comprehensive income,
IFRS 9 by the Securities and Exchange Commission of Pakistan (SECP) vide S.R.O 985(I) / 2019 the hedging gain or loss on the hedged item is recognized in profit or loss. However, if the
dated September 2, 2019 for a limited period of three years till June 30, 2021. On September hedged item is an equity instrument for which the Group has elected to present changes in
13, 2021, October 24, 2022 and January 20, 2023, the SECP further extended the fair value in other comprehensive income, those amounts remain in other comprehensive
aforementioned exemption till June 30, 2022, June 30, 2023 and December 31, 2024, income. When a hedged item is an unrecognized firm commitment (or a component thereof),
respectively. the cumulative change in the fair value of the hedged item subsequent to its designation is
recognized as an asset or a liability with a corresponding gain or loss recognized in profit or
2.11.4 Financial liabilities loss. When the hedged item is derecognized, the unamortized fair value is recognized
immediately in profit or loss.
The Group recognizes a financial liability in its consolidated statement of financial position when,
and only when, it becomes party to the contractual provisions of the instrument. At initial Cash flow hedge
recognition, the Group measures a financial liability at its fair value minus, in the case of a financial
liability not at fair value through profit or loss, transaction costs that are directly attributable to the Cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a
acquisition or issue of the financial liability. Subsequently, financial liabilities are stated at particular risk associated with all, or a component of, a recognized asset or liability (such as all or
amortized cost. some future interest payments on variable-rate debt) or a highly probable forecast transaction,
and could affect profit or loss.

The Group accounts for cash flow hedging relationships as follows: Net realizable value signifies the estimated selling price in the ordinary course of business less all
estimated costs of completion and costs necessarily to be incurred in order to make the sales.
(a) the separate component of equity associated with the hedged item (cash flow hedge reserve) Provision is made for slow moving and obsolete stocks, where considered necessary.
is adjusted to the lower of the following (in absolute amounts):
2.15 Trade debts, contract assets and other receivables
(i) the cumulative gain or loss on the hedging instrument from inception of the hedge; and
Trade debts and other receivables are recognized initially at the amount of consideration that is
(ii) the cumulative change in fair value (present value) of the hedged item (i.e. the present unconditional unless they contain significant financing components, in which case they are
value of the cumulative change in the hedged expected future cash flows) from inception recognized at fair value plus directly attributable transaction costs, if any. The Group holds trade
of the hedge. debts and other receivables with the objective to collect contractual cash flows and, therefore,
measures them subsequently at amortized cost using effective interest method. A provision for
(b) the portion of the gain or loss on the hedging instrument that is determined to be an effective impairment is established under the simplified model stipulated in IFRS 9. Under this model,
hedge [i.e. the portion that is offset by the change in the cash flow hedge reserve calculated expected credit losses are measured based on lifetime expected loss allowance for all trade
in accordance with (a)] is recognized in other comprehensive income. debts and other receivables. The Group measures expected credit losses on trade debts and
other receivables in a way that reflects:
(c) any remaining gain or loss on the hedging instrument [or any gain or loss required to balance
the change in the cash flow hedge reserve calculated in accordance with (a)] is hedge a) an unbiased and probability-weighted amount that is determined by evaluating a range of
ineffectiveness, that is recognized in profit or loss. possible outcomes;
(d) the amount that has been accumulated in the cash flow hedge reserve in accordance with (a) b) the time value of money; and
is accounted for as follows:
c) reasonableness and supportable information that is available without undue cost or effort at
(i) if a hedged forecast transaction subsequently results in the recognition of a non-financial the reporting date about past events, current conditions and forecasts of future economic
asset or non-financial liability, or a hedged forecast transaction for a non-financial asset or conditions.
a non-financial liability becomes a firm commitment for which fair value hedge accounting
is applied, the Group removes that amount from the cash flow hedge reserve and includes The amount of provision is charged to the consolidated statement of profit or loss. Trade debts
it directly in the initial cost or other carrying amount of the asset or the liability. and other receivables considered irrecoverable are written-off.
(ii) for cash flow hedges other than those covered by (i), that amount is reclassified from the Exchange gains and losses arising on translation of receivables in foreign currency are added to
cash flow hedge reserve to profit or loss as a reclassification adjustment in the same their respective carrying amounts.
period or periods during which the hedged expected future cash flows affect profit or loss.
A contract asset is recognized for the Group's right to consideration in exchange for goods or
(iii) however, if that amount is a loss and the Group expects that all or a portion of that loss will services that it has transferred to a customer. If the Group performs its obligation by transferring
not be recovered in one or more future periods, it immediately reclassifies the amount that goods or services to a customer before the customer pays consideration or before payment is
is not expected to be recovered to profit or loss as a reclassification adjustment. due, the Group presents the amount as a contract asset, excluding any amounts presented as
a receivable.
2.13 Stores, spares and loose tools
2.16 Cash and cash equivalents
These are valued at weighted average cost except for items in transit which are stated at invoice
value plus other charges incurred thereon till the reporting date. For items which are slow moving Cash and cash equivalents in the consolidated statement of cash flows includes cash in hand
and / or identified as surplus to the Group's requirements, adequate provision is made for any and in transit, cheques in hand, balances with banks in current, deposit and saving accounts,
excess
Description and book value
Sold toover estimated realizable value. The Cost
Relationship GroupAccumulated
reviews the carryingSaleamount
Net book Gain / of
(loss) other short term highly liquid investments with original maturities of three months or less and
method ofstores
disposal and spares on a regular basis and provision
with the is made for depreciation
obsolescence, value if any.
proceeds short-term borrowings other than term finance.
purchaser & impairment
2.14 Stock-in-trade
Assets having net book value of Rs. 500 each or more
-------------------------------------Rupees------------------------------------- 2.17 Share capital
Plant and machinery
These are valued at the lower of cost and net realizable value. Cost is determined using weighted Ordinary shares are classified as equity and recognized at their face value. Incremental costs
Bidding average methodPenta except for raw material, and
Waste Management certain
External party purchased
707,594 products
682,887 in transit
24,707 which 25,851
50,558 are directly attributable to the issue of new shares or options are shown in equity as a deduction, net
stated at cost (invoice value) plus other charges incurred thereon till the reporting date. Cost in
Services Company of tax, from the proceeds.
Write Off
relation to finished goods includes applicable
Crescent Metal Trading
Recovery through Insurance Claim
purchase cost
External party
External party
46,065
90,081
and44,453
manufacturing
8,714
1,612
81,367
expenses.
261,228
-
The
259,616
(81,367)
cost of work in process includes material
Recovery through Insurance Claim and proportionate
External party conversion
362,825 27,039 costs.
335,786 - (335,786)
1,206,565 763,093 443,472 311,786 (131,686)
Vehicles
232 Mr. Muhammad Junaid Zuberi Employee 3,323 1,177 2,146engro corporation
2,743 limited
597 annual report 2022 233
enabling growth Mr. Arsalan Naeem Employee 3,156 894 2,262 2,321 59 enabling growth
Ms. Sadia Zahid Employee 2,656 677 1,979 2,463 484
Mr. Arshad Naveed Employee 2,579 548 2,031 1,907 (124)
Mr. Tanvir Ahmed Khan Employee 2,653 645 2,008 2,091 83
2.18 Borrowings 2.21 Deferred income
Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are Amount received on account of operating lease rental income for terminal is recognized as
subsequently carried at amortized cost; any difference between the proceeds (net of transaction deferred income where not earned and credited to the consolidated statement of profit or loss in
costs) and the redemption value is recognized in the consolidated statement of profit or loss over the relevant period of provision of services for recognition of rentals on straight line basis.
the period of borrowings using the effective interest method.
2.22 Contract liability
Borrowings are removed from the consolidated statement of financial position when the
obligation specified in the contract is discharged, cancelled or expired. The difference between A contract liability is recognized for the Group’s obligation to transfer goods or services to a
the carrying amount of a financial liability that has been extinguished or transferred to another customer for which the Group has received consideration (or an amount of consideration is due)
party and the consideration paid, including any non-cash assets transferred or liabilities from the customer. If a customer pays consideration, or the Group has a right to an amount of
assumed, is recognized in the consolidated statement of profit or loss as other income or finance consideration that is unconditional (i.e. a receivable), before the Group transfers a good or service
costs. to the customer, the Group shall present the contract as a contract liability when the payment is
made or the payment is due (whichever is earlier).
Borrowings are classified as current liabilities unless the Group has an unconditional contractual
right to defer settlement of the liability for at least 12 months after the reporting date. 2.23 Provisions
Exchange gains and losses arising in respect of borrowings in foreign currency are added to the Provisions are recognized when the Group has a present legal or constructive obligation as a
carrying amount of the borrowing. result of past events, is probable that outflow of an economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are
2.19 Government grant not recognized for future operating losses. Provisions are reviewed at each reporting date and
adjusted to reflect current best estimate.
Government grant is recognized where there is reasonable assurance that the grant will be
received and all attached conditions will be complied with. When the grant relates to an expense 2.24 Share based payment transaction
item, it is recognized as income on a systematic basis over the periods that the related costs, for Cash-settled share-based payments to employees are measured at the fair value of the liability.
which it is intended to compensate are expensed. When the grant relates to an asset, it is The fair value determined of the cash-settled share-based payments is recognized as an
recognized as income in equal amounts over the expected useful lives of the related asset. employee compensation expense on a straight-line basis over the vesting period. Until the liability
is settled, the fair value of the liability is remeasured at the end of each reporting period and at the
Government grant includes any benefit earned on account of a government loan obtained at date of settlement, with all changes in fair value recognized in the consolidated statement of profit
below market rate of interest. The loan is recognized and measured in accordance with IFRS 9 or loss for the period.
“Financial Instruments”. The benefit of the below-market rate of interest shall be measured as the
difference between the initial carrying value of the loan determined in accordance with IFRS 9 2.25 Income tax
and the proceeds received.
The tax expense for the year comprises current and deferred tax. Tax expense is recognized in
Government grant that has been awarded for the purpose of giving immediate financial support the consolidated statement of profit or loss, except to the extent that it relates to items
to the Group is recognized in the consolidated statement of profit or loss of the period in which recognized in other comprehensive income or directly in equity, in which case, the tax expense
the Group qualifies to receive it. is also recognized in other comprehensive income or directly in equity, respectively.
Government grant that compensates the Group for expenses incurred is recognized in the 2.25.1 Current
consolidated statement of profit or loss on a systematic basis in the same period in which the
expenses are recognized. Government grants are deducted in reporting the related expenses. Provision for current taxation is based on the taxable income for the year calculated on the basis
of the tax laws enacted or substantively enacted at the reporting date, and any adjustment to tax
2.20 Trade and other payables payable in respect of previous years.
Trade and other payables are recognized initially at fair value and subsequently measured at 2.25.2 Deferred
amortized cost using the effective interest method.
Deferred tax is recognized using the balance sheet method, providing for all temporary
These are classified as current liabilities if payment is due within one year or less (or in the normal differences between the carrying amounts of assets and liabilities for financial reporting purposes
operating cycle of the business if longer). If not, they are presented as non-current liabilities. and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are
expected to be applied to the temporary differences when they reverse, based on the tax laws
Exchange gains and losses arising from translations in respect of liabilities in foreign currency are that have been enacted or substantively enacted by the reporting date. Deferred tax is charged
added to the carrying amount of the respective liabilities. or credited in the consolidated statement of profit or loss, except to the extent that it relates to
the items recognized directly in equity, in which case it is recognized in equity.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will The Group also operates a defined benefit funded pension scheme for EFert's management
be available against which temporary difference can be utilized. Deferred tax assets are reviewed employees. The pension scheme provides life time pension to retired employees or to their
at each reporting date and are reduced to the extent that it is no longer probable that the related spouses. Contributions are made annually to these funds on the basis of actuarial
tax benefit will be realized. recommendations. The pension scheme has been curtailed and effective from July 1, 2005, no
new members are inducted in this scheme. Actuarial gains on curtailment are recognized
2.26 Retirement and other service benefits immediately once the certainty of recovery is established.
2.26.1 Defined contribution plans In June 2011, the Group gave a one time irrevocable option to selected members of EFert's
Management Permanent Employees' (MPT) Defined Benefit Gratuity Fund and Defined
A defined contribution plan is a post - employment benefit plan under which the Group pays fixed Contribution Pension Fund to join a new MPT Employees' Defined Contribution Gratuity Fund
contribution into a separate entity and will have no legal or constructive obligation to pay further (the Fund), a defined contribution plan. The present value, as at June 30, 2011, of the defined
amounts. Obligations for contributions to defined contribution plans are recognized as an benefit obligation of those employees, who accepted this offer, were transferred to this Fund.
employee benefit expense in the consolidated statement of profit or loss when they are due. Furthermore, from July 2011 onwards, the monthly contributions to Defined Contribution
Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction Pension Fund of such employees were discontinued.
in future payments is available.
2.26.3 Employees' compensated absences
The Group operates
The Group accounts for compensated absences on the basis of unavailed leave balance of each
- defined contribution provident funds for its permanent employees. Monthly contributions are employee at the end of the year.
made both by the Group and employees to the fund at the rate of 10% of basic salary;
2.26.4 Other benefits - Service Incentive Plan
- defined contribution pension funds for the benefit of management employees. Monthly
contributions are made by the Group to the fund at the rate ranging from 12.5% to 13.75% Annual provision is made under a service incentive plan for certain category of experienced
of basic salary; and employees to continue in the Group’s employment. The provision is made on the basis of
management’s estimates of incentives to be paid to employees on the fulfillment of criteria given
- defined contribution gratuity funds for the benefit of management employees. Monthly in the incentive plan.
contributions are made by the Group to the fund at the rate of 8.33% of basic salary.
2.27 Foreign currency transactions and translation
2.26.2 Defined benefit plans
2.27.1 These consolidated financial statements are presented in Pakistan Rupees, which is the Group’s
A defined benefit plan is a post-employment benefit plan other than the defined contribution functional and presentation currency. Amounts presented in these consolidated financial
plan. The Group's net obligation in respect of defined benefit plans is calculated by estimating statements have been rounded off to the nearest thousand, unless otherwise stated. Foreign
the amount of future benefit that employees have earned in return for their service in current and currency transactions are translated into the functional currency using the exchange rates
prior periods; that benefit is discounted to determine its present value. The calculation is prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the
performed annually by a qualified actuary using the Projected Unit Credit Method. settlement of such transactions and from the translation at year-end exchange rates of monetary
assets and liabilities denominated in foreign currencies are recognized in the consolidated
Remeasurements (actuarial gains / losses) in respect of defined benefit plans are recognized statement of profit or loss and property, plant and equipment as explained in note 4.3.
directly in equity through other comprehensive income.
2.27.2 The results and financial position of all the Group entities (none of which has the currency of a
Contributions require assumptions to be made of future outcomes which mainly include increase hyper-inflationary economy) that have a functional currency different from the presentation
in remuneration, expected long-term return on plan assets and the discount rate used to convert currency are translated into the presentation currency as follows:
future cash flows to current values. Calculations are sensitive to changes in the underlying
assumptions. - assets and liabilities for each consolidated statement of financial position items presented are
translated at the closing rate at the reporting date;
The Group operates defined benefit funded gratuity schemes for management employees and
non-management employees of EFert. - income and expenses for each consolidated statement of profit or loss item are translated at
average exchange rates (unless this average is not a reasonable approximation of the
cumulative effect of the rates prevailing on the transaction dates, in which case income and
expenses are translated at the rate on the dates of the transactions); and

- all resulting exchange differences are recognized as a separate component of equity. - Revenue from re-gasification and transportation of Liquefied Natural Gas (LNG) to Sui
Southern Gas Company Limited (SSGCL) under LNG operations and Services Agreement
2.28 Revenue / Income recognition (LSA) is recognized on the following basis:
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the - Utilization revenue on the basis of Re-gasified LNG throughput to SSGCL over time.
Group and the amount of revenue can be measured reliably. Revenue is measured at fair value - Operations and maintenance revenue over time.
of the consideration received or receivable. Revenue is recognized on the following basis:
- Revenue from tower infrastructure provisioning is recognized on straight line basis over the
- The Group recognizes revenue at a point in time as or when performance obligations are non-cancellable agreement period, regardless of whether the payments from customers are
satisfied by transferring the control of product to customer. Control, depending on received, in equal monthly amounts during the contract term. The Group considers all fixed
contractual terms, is considered to be transferred either when the product is directly uplifted elements of the relevant contractual escalation provisions in calculating the straight-line
by the customer from the Group's premises or when it is delivered by the Group at customer revenue. Revenue for cancellable agreements are recorded at the amounts invoiced to the
premises. customers, as per the agreement.
- Revenue from contracts and long term service agreements is recognized as or when - Revenue from operations and maintenance services for telecommunication infrastructure is
performance obligations are satisfied by transferring control of promised services to a recognized when services are rendered as the performance obligations are generally met
customer, and control either transfers over time or at a point in time. Where, revenue over over time as customer simultaneously receives and consumes benefits of services as and
time is recognized based on the percentage of completion method, the stage of completion when the services are performed by the Group. The Group generally uses output method to
is assessed by milestones which ascertain the completion of the proportion of contract work measure progress towards satisfying a performance obligation. The Group recognizes
or the performance of services provided in the agreement. revenue at the amount of the Group's right to invoice as per the agreements with the
customers if the Group’s right to invoice the customers is based on the value of services
- Income on bank deposits and other financial assets is recognized on an accrual basis. transferred and the amount invoiced represents the value transferred to the customers.
- Dividend income on investments is recognized when the Group's right to receive such - Deferred incentive revenue is recognized based on the present value of discount provided by
payment has been established. the Group in its bundled contracts with the customers. The unwinding of discount on
deferred incentive revenue is recognized as finance cost in the consolidated statement of
- Operation and maintenance fee under various contracts is measured at fair value of the profit or loss. Subsequent amortization of deferred incentive revenue is credited to revenue
consideration received or receivable and is recognized on accrual basis when services are on a systematic basis.
rendered i.e. performance obligations are fulfilled in accordance with the terms of
agreements. - Revenue from energy support services is recognized by the Group through bills on a pass
through basis as the Group does not consider that it controls the specific services before their
- Revenue from supply of electricity to Central Power Purchasing Agency (Guarantee) Limited delivery to customers. Accordingly, the Group recognizes revenue arising from pass through
(CPPA-G), the sole customer of Engro Powergen Qadirpur Limited (EPQL) and Engro billings on net basis.
Powergen Thar (Private) Limited (EPTL), is recognized when the following performance
obligations are satisfied: The payment term varies from 15 to 180 days depending on the credit worthiness of the Group's
customers.
- Capacity revenue is recognized based on the capacity made available to CPPA-G; and
- Energy revenue is recognized based on the Net Electrical Output (NEO) delivered to 2.29 Borrowing costs
CPPA-G.
Borrowing costs are recognized as an expense in the period in which they are incurred except
Capacity and Energy revenue is recognized based on the rates determined under the where such costs are directly attributable to the acquisition, construction or production of a
mechanism laid down in the Power Purchase Agreements (PPAs). qualifying asset in which such costs are capitalized as part of the cost of that asset. Borrowing
costs includes exchange differences arising on foreign currency borrowings to the extent these
- Consultancy fee is recognized at the time the services are rendered. are regarded as an adjustment to borrowing costs and net gain / loss on the settlement of
derivatives hedging instruments. All other borrowing costs are charged to the consolidated
- Delayed payment charges on overdue trade receivables are recognized on an accrual basis. statement of profit or loss.

2.30 Research and development costs In case of acquisition of group of assets and liabilities, the Group allocates the purchase
consideration to individual assets and liabilities on the basis of their relative fair value at the
Research and development costs are charged to income as and when incurred, except for date of purchase. For determination of fair value, the Group takes into account its principle
certain development costs which are recognized as intangible assets when it is probable that the ability to generate economic benefits by either using the asset in its highest and best use or
developed project will be a success and certain criteria, including commercial and technical by selling it to another customer. Estimation of highest and best use is made on basis of
feasibility have been met. estimated net cash in flows associated with the assets or group of assets. The consideration
for selling it to another customer is based on the fair market value after adjusting the impacts
2.31 Earnings per share of obsolescence.
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic b) Investments at fair value through profit or loss / other comprehensive income
EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Holding
Company by the weighted average number of ordinary shares outstanding during the period. The Group determines fair value of certain investments by using quotations from active
Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and market and conditions and information about the financial instruments. These estimates are
the weighted average number of ordinary shares outstanding for the effects of all dilutive potential subjective in nature and involve some uncertainties and matters of judgment.
ordinary shares.
c) Provision for stock-in-trade
2.32 Dividend and appropriation to reserves
The Group regularly reviews the net realizable value of stock-in-trade to assess any
Dividends and appropriations to reserves are recognized in the consolidated financial statements diminution in the respective carrying values. Net realizable value is determined with reference
in the period in which these are approved. to estimated selling price less estimated expenditure to make the sales.
2.33 Segment reporting d) Income taxes
Operating segments are reported in a manner consistent with the internal reporting provided to In making the estimates for provision for current income taxes payable by the Group, the
the chief operating decision-maker. The chief operating decision-maker, who is responsible for management considers the applicable laws and the decisions / judgments of appellate
allocating resources and assessing performance of the operating segments, has been identified authorities on certain issues in the past. Accordingly, the recognition of current and deferred
as the Board of Directors of the Holding Company that makes strategic decisions. taxes is made taking into account these judgments and the best estimates of future results
of operations of the Group.
3. critical accounting estimates and judgments
e) Provision for retirement and other service benefits obligations
Estimates and judgments are continually evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under The present value of these obligations depend on a number of factors that are determined on
the circumstances. The Group makes estimates and assumptions concerning the future. The actuarial basis using a number of assumptions. Any changes in these assumptions will
resulting accounting estimate will, by definition seldom equal the related actual results. The impact the carrying amount of these obligations.
estimates and assumptions that have a significant risk of carrying a material adjustment to the
carrying amounts of assets and liabilities within the next financial year are as follows: f) Impairment of investment in associates and joint venture
a) Property, plant and equipment and intangibles In making an estimate of future cash flows from the Group’s financial assets including
investment in joint venture and associates, the management considers future dividend
The Group annually reviews appropriateness of the method of depreciation and amortization, stream and an estimate of the terminal value of these investments.
useful life and residual value used in the calculation of depreciation and amortization. Further,
where applicable, an estimate of the recoverable amount of asset is made for possible g) Impairment of financial assets
impairment on an annual basis. These calculations require the use of estimates. Any change
in these estimates in the future, might affect the carrying amount of the respective item of The Group uses external credit ratings to determine default rates for trade debts, net
property, plant and equipment and intangibles, with a corresponding effect on the investment in lease, short-term investments, other financial assets at amortized cost and
depreciation and amortization charge, and impairment. balances with banks to calculate expected credit losses. The amount of expected credit
losses is sensitive to changes in circumstances and of forecast economic conditions. The
Group's historical credit loss experience and forecast of economic conditions may also not
be representative of the customer's actual default in future.

h) Provision for slow-moving stores and spares ii) Discount rate
The Group regularly reviews the provision for slow moving stores and spares to assess the The rate used on transition to discount future lease payments under TCP represent EETPL's
consumption of stores and spares, thereby ensuring that slow moving items are provided for. incremental borrowing rate. The rate has been estimated using LIBOR rates available in the
lease currency and adjusted to reflect the underlying lease term based on observable inputs.
i) Tariff adjustment determination
l) Provision for decommissioning costs
As per the mechanism laid out in National Electric Power Regulatory Authority's (NEPRA)
decision dated June 15, 2022, EPTL seeks adjustment for fuel price, cost of power The timing of recognition of provision for decommissioning costs requires the application of
purchase, operation and maintenance cost and unrecovered cost including non-recoverable judgment of existing facts and circumstances, which can be subject to change. In
dues written-off. EPTL's monthly / quarterly / annual submissions of tariff adjustment are determining the present value of the provision for decommissioning costs, assumptions and
approved / determined by NEPRA on a time to time basis, resulting in provisional amounts estimates are made in relation to discount rates, the expected cost to decommission and
being recognized by the Group based on its judgement and interpretation of NEPRA remove the equipment from the site and the expected timing of those costs.
decision, till the determination from NEPRA is received.
m) Revenue recognition
j) Contingencies and provisions
Revenue on long-term service agreements / construction contracts is recognized based on
Significant estimates and judgments are being used by the management in accounting for the percentage of completion method. The Group reviews the appropriateness of the stage
contingencies and provisions relating to legal and taxation matters being contested at various of completion through milestones / cost incurred which ascertain the completion of a
forums based on applicable laws and the decisions / judgments. proportion of the contract work or the performance of services provided.
k) Right of use asset and corresponding lease liability n) Share based payment transaction
IFRS 16 requires the Group to assess the lease term as the non-cancellable lease term in line The fair value of share-based compensation expense arising from the Long-term Incentive
with the lease contract together with the period for which the Group has extension options Plan (LTIP) is estimated using an appropriate option pricing model. It is recognized as
which the Group is reasonably certain to exercise and the periods for which the Group has expense from the date of grant over the vesting period with a corresponding increase in
termination options for which the Group is not reasonably certain to exercise. liability. Market conditions upon which vesting is conditioned, are taken into account when
estimating the fair value at measurement date. Vesting conditions, other than market
The rate used on transition to discount future lease payments represents the Group's conditions, are not taken into account when estimating the fair value at the measurement
incremental borrowing rate. date, instead, these are taken into account by adjusting the number of instruments included
in the measurement of the transaction amount.
With specific reference to EETPL's arrangement under Time Charter Party (TCP) and LNG
operations and Services Agreement (LSA), significant estimates further included: 2022 2021
-------------Rupees---------------
i) Classification of lease
The classification of lease of terminal required use of estimates of cash flows during the 4. property, plant and equipment
contract period, margins, residual values and allocation of amounts under daily capacity
charges to lease and non-lease components and determine minimum lease payments at the Operating assets, at net book value (note 4.1) 300,654,940 257,997,137
inception of lease from terminal and sublease of right-of-use asset. As a result the lease of Capital work in progress
terminal has been determined as an operating lease as significant risk and rewards relating to - Expansion and other projects (note 4.7) 24,839,815 20,265,122
the same remain with EETPL at the end of the lease term, taking into account the useful life Capital spares and standby equipment 4,382,473 3,892,279
and fair value of terminal assets, minimum lease payments, residual value and the 329,877,228 282,154,538
assessment that customer is not likely to exercise purchase option.

(Amounts in thousand) Plant and Furniture, fixtures
Land Building on Pipelines Machinery Catalyst and equipment Vehicles Aircraft Jetty Dredging Total
4.1 Operating assets Freehold Leasehold Freehold leasehold Owned Owned Leased Owned (note 4.8)
land land (note 4.8)
---------------------------------------------------------------------------------------------------------------------------------- Rupees ----------------------------------------------------------------------------------------------------------------------------------
As at January 1, 2021
Cost 344,168 699,144 10,078,670 1,871,752 3,123,607 285,795,965 1,982,247 6,621,617 21,723 3,589,686 624,228 5,309,282 3,048,524 323,110,613
Accumulated depreciation - (212,651) (2,448,829) (743,792) (1,438,999) (76,294,730) (1,592,536) (2,000,559) (21,002) (911,373) (8,695) (1,083,754) (1,115,712) (87,872,632)
Accumulated impairment - (121,622) - (595,858) - (1,793,717) - (86,091) - - - - - (2,597,288)
Net book value 344,168 364,871 7,629,841 532,102 1,684,608 207,707,518 389,711 4,534,967 721 2,678,313 615,533 4,225,528 1,932,812 232,640,693

Opening net book value 344,168 364,871 7,629,841 532,102 1,684,608 207,707,518 389,711 4,534,967 721 2,678,313 615,533 4,225,528 1,932,812 232,640,693
Amortization of revaluation surplus (note 4.4) - 2,488 - - - (32,581) - - - - - - - (30,093)
Additions including transfers 39,140 - 4,200,516 653,527 150,047 16,953,999 - 6,087,067 - 951,501 - - - 29,035,797
Transfer from right-of-use asset (note 5) - - - - - - - - - 5,596 - - - 5,596
Capitalization of exchange loss

by the subsidiary company (note 4.3) - - - - - 8,432,804 - - - - - - - 8,432,804
Reclassification to intangible assets - - - - - (58,327) - - - - - - - (58,327)
Assets classified from held for sale

Cost - - - - - 400,930 - - - - - - - 400,930
Accumulated depreciation - - - - - (62,732) - - - - - - - (62,732)
Accumulated impairment - reversal - - - - - (271,144) - - - - - - - (271,144)
- - - - - 67,054 - - - - - - - 67,054
Disposals / Write offs

Cost - - - - (1,285) (256,663) - (130,105) - (65,812) - - - (453,865)
Accumulated depreciation - - - - 959 151,661 - 87,098 - 12,020 - - - 251,738
Accumulated impairment - - - - - - - - - - - - - -
- - - - (326) (105,002) - (43,007) - (53,792) - - - (202,127)
Depreciation charge (note 4.4) - (51,347) (422,859) (71,841) (78,776) (9,387,978) (114,645) (879,914) - . (546,564) (34,778) (174,825) (130,733) (11,894,260)
Net book value 383,308 316,012 11,407,498 1,113,788 1,755,553 223,577,487 275,066 9,699,113 721 3,035,054 580,755 4,050,703 1,802,079 257,997,137
Cost 383,308 696,656 14,279,186 2,525,279 3,272,369 311,236,127 1,982,247 12,578,579 21,723 4,480,971 624,228 5,309,282 3,048,524 360,438,479
Accumulated depreciation - (259,022) (2,871,688) (815,633) (1,516,816) (85,593,779) (1,707,181) (2,793,375) (21,002) (1,445,917) (43,473) (1,258,579) (1,246,445) (99,572,910)
Net book value 383,308 316,012 11,407,498 1,113,788 1,755,553 223,577,487 275,066 9,699,113 721 3,035,054 580,755 4,050,703 1,802,079 257,997,137
(Amounts in thousand) Plant and Furniture, fixtures

Land Building on Pipelines Machinery Catalyst and equipment Vehicles Aircraft Jetty Dredging Total
Freehold Leasehold Freehold leasehold Owned Owned Leased Owned (note 4.8)
land land (note 4.8)
---------------------------------------------------------------------------------------------------------------------------------- Rupees ----------------------------------------------------------------------------------------------------------------------------------
Opening net book value 383,308 316,012 11,407,498 1,113,788 1,755,553 223,577,487 275,066 9,699,113 721 3,035,054 580,755 4,050,703 1,802,079 257,997,137
Amortization of
revaluation surplus (note 4.4) - 2,488 - - - (32,581) - - - - - - - (30,093)
Additions including transfers - - 4,972,806 22,975 967 14,423,713 402,520 9,731,952 3,284 683,386 2,634,870 9,724 369,996 33,256,193
Capitalization of exchange loss

by the subsidiary company
(note 4.3) - - - - - 23,282,056 - - - - - - - 23,282,056
Disposals / Write offs

Cost - - (43,968) (63,117) - (2,086,344) - (85,354) - (291,576) - - - (2,570,359)
Accumulated depreciation - - 4,723 63,117 - 1,641,846 - 34,666 - 106,430 - - - 1,850,782
Accumulated impairment - - - - - - - - - - - - - -
- - (39,245) - - (444,498) - (50,688) - (185,146) - - - (719,577)
Depreciation charge (note 4.4) - (46,368) (630,389) (77,806) (83,368) (10,923,777) (222,384) (1,588,676) (1,134) (546,208) (152,073) (175,096) (141,794) (14,589,073)
Reversal of impairment (note 4.5) - 111,943 - 310,120 - 1,036,234 - - - - - - - 1,458,297
Net book value 383,308 384,075 15,710,670 1,369,077 1,673,152 250,918,634 455,202 17,791,701 2,871 2,987,086 3,063,552 3,885,331 2,030,281 300,654,940
Cost 383,308 696,656 19,208,024 2,485,137 3,273,336 346,855,552 2,384,767 22,225,177 25,007 4,872,781 3,259,098 5,319,006 3,418,520 414,406,369
Accumulated depreciation - (302,902) (3,497,354) (830,322) (1,600,184) (94,908,291) (1,929,565) (4,347,385) (22,136) (1,885,695) (195,546) (1,433,675) (1,388,239) (112,341,294)
Net book value 383,308 384,075 15,710,670 1,369,077 1,673,152 250,918,634 455,202 17,791,701 2,871 2,987,086 3,063,552 3,885,331 2,030,281 300,654,940
No.
Annual rate of of production
depreciation (%) - 1 to 30 2.5 to 10 2.5 to 10 2 to 6 2.5 to 30 days 5 to 33 20 5 to 25 14.3 3.33 3.33 to 20
4.2 The details of immovable fixed assets (i.e. land and buildings) which are in the name of the Group As at December 31, 2022, the following indicators triggered the management of EEAP to
as follows: re-assess the recoverable amount of its property, plant and equipment:
Description of assets Address Total area of - devaluation of Pak Rupee against the USD; and
land in Acres - significant increase in steel prices during the years.
Daharki plant and colony District Ghotki, Sindh 734.00 Based on the aforementioned factors, management engaged its valuation expert to determine
Zarkhez plant land Port Qasim, Karachi 112.50 the fair values of property, plant and equipment of EEAP. The re-assessment was carried out
Rice processing plant 13-KM Sheikhupura Road, Lahore 62.95 using the market approach under IFRS 13 (level 2). As a result of this re-assessment, impairment
LNG Terminal South Western Industrial Zone, 13.18 reversal of Rs. 1,458,297 has been recognized in these consolidated financial statements.
Port Qasim, Karachi
Power plant and Deh Belo Sanghari, Ghotki, Sindh 41.50 4.6 The details of operating assets disposed / written-off during the year are as follows:
associated buildings
Colony land Colony Road, Daharki, Ghotki, Sindh 16.40
Leasehold land Thar Block II, Islamkot District, Sindh 215.00 Description and
method of disposal
Sold to Relationship
with the
Cost Accumulated
depreciation
Net book
value
Sale
proceeds
Gain / (loss)
Leasehold land EZ/I/P-II-I Eastern Zone, Bin Qasim, Karachi 121.92 purchaser & impairment
Production facilities EZ/I/P-II-I Eastern Zone, Bin Qasim, Karachi 3.26 Assets having net book value of Rs. 500 each or more
-------------------------------------Rupees-------------------------------------
Storage facilities EZ/I/P-II-I Eastern Zone, Bin Qasim, Karachi 2.21
Administration facilities EZ/I/P-II-I Eastern Zone, Bin Qasim, Karachi 0.60 Plant and machinery
Bidding Penta Waste Management External party 707,594 682,887 24,707 50,558 25,851
4.3 The Securities and Exchange Commission of Pakistan (SECP), through its S.R.O. 986(1)/2019 Services Company
dated September 2, 2019, partially modified its previously issued S.R.O. 24/(1)/2012 dated Crescent Metal Trading External party 46,065 44,453 1,612 261,228 259,616
Recovery through Insurance Claim External party 90,081 8,714 81,367 - (81,367)
January 16, 2012 and granted exemption to all companies that have executed their power Write Off Recovery through Insurance Claim External party 362,825 27,039 335,786 - (335,786)
purchase agreements before January 1, 2019, from the application of IAS 21 'The Effects of 1,206,565 763,093 443,472 311,786 (131,686)
Changes in Foreign Exchange Rates' to the extent of capitalization of exchange differences.
Accordingly, during the year, the Group has capitalized exchange loss of Rs. 23,282,056 (2021: Vehicles
Rs. 8,432,804) arising on foreign currency borrowings of EEL (and its subsidiaries) to the cost of
the related property, plant and equipment. Mr. Muhammad Junaid Zuberi
Mr. Arsalan Naeem
Employee
Employee
3,323
3,156
1,177
894
2,146
2,262
2,743
2,321
597
59
Ms. Sadia Zahid Employee 2,656 677 1,979 2,463 484
2022 2021 Mr. Arshad Naveed Employee 2,579 548 2,031 1,907 (124)
-------------Rupees--------------- Mr. Tanvir Ahmed Khan Employee 2,653 645 2,008 2,091 83
Mr. Jalal-uddin Akbar Employee 2,655 113 2,542 2,599 57
Mr. Abdus Samad Employee 2,775 511 2,264 2,263 (1)
4.4 Depreciation charge for the year has been allocated as follows: Mr. Muhammad Hassan Sabih Employee 2,596 225 2,371 2,314 (57)
Mr. Muhammad Mustafa Fahim Employee 2,555 342 2,213 2,587 374
Cost of goods sold (note 35.1) 11,885,090 11,070,934 Mr. Zahid Amin Shah Employee 3,654 259 3,395 3,550 155
Capital work in progress 5,686 4,485 Mr. Umed Ali Mallah Employee 3,240 1,331 1,909 1,974 65
Cost of services rendered (note 35.2) 2,026,426 398,397 Mr. Arsalan Bhatti Employee 2,660 901 1,759 1,914 155
Mr. Abid Ilyas Employee 3,570 708 2,862 3,199 337
Selling and distribution expenses (note 36) 154,212 138,007 By Group policy to existing /
Mr. Abdul Karim Mari Employee 3,076 392 2,684 2,833 149
Administrative expenses (note 37) 547,752 312,530 resigned / retired
Mr. Nadir Salar Qureshi Employee 5,607 5,046 561 6,800 6,239
14,619,166 11,924,353 executives / employees
Mr. Adeel Ibrahim Employee 2,717 731 1,986 2,140 154
Mr. Rehman Ahmed Employee 3,520 249 3,271 3,165 (106)
Mr. Ammad Hassan Employee 2,669 265 2,404 2,493 89
Mr. Nadir Nasim Employee 2,785 592 2,193 2,395 202
4.5 In 2015, EEAP’s management, taking cognizance of the significant losses suffered by EEAP, as Mr. Eram Hassan Employee 15,058 13,552 1,506 11,000 9,494
Mr. Eram Hassan Employee 9,202 4,432 4,770 8,600 3,830
an indicator of impairment, conducted an impairment test of its rice processing plant. The Mr. Fahad Dar Employee 5,554 2,203 3,351 3,428 77
recoverable amount so determined was less than the carrying value of the plant and machinery, Mr. Zain Farooq Employee 2,882 245 2,637 2,841 204
thereby resulting in an impairment loss of Rs. 3,384,000 which was recognized in the Mr. Shahbaz Ahmed Khan Employee 5,554 2,282 3,272 4,258 986
Mr. Iftikhar Ahmed Dar Employee 3,240 1,285 1,955 2,036 81
consolidated statement of profit or loss for the year ended December 31, 2015. Subsequently, Mr. Khawaja Jawwad Hassan Employee 3,267 1,296 1,971 2,332 361
during the year ended December 31, 2018, EEAP made a reversal of impairment by Rs. Mr. Asad Shaikh Employee 4,505 1,085 3,420 2,544 (876)
315,000. Mr. Abdullah Zubair Employee 3,074 653 2,421 2,615 194
Mr. Zouhair Ansari Employee 2,750 662 2,088 2,420 332
Mr. Mubeen Ashfaque Employee 3,393 577 2,816 2,958 142
Mr. Muhammad Ashar Employee 2,772 785 1,987 2,438 451
Mr. Sualeh Qamar Employee 5,507 858 4,649 5,498 849
Miss Tabinda Employee 3,625 359 3,266 3,275 9
Mr. Mehboob Ahmed Khan Employee 2,749 544 2,205 2,480 275
246 engro corporation limited annual report 2022 Mr. Tanveer Ali Employee 2,731 267 2,464 2,584 247120
enabling growth Mr. Syed Abbas Raza Employee 13,830 3,527 10,303 enabling growth
10,232 (71)
Mr. Muhammad Babar Mobeen Employee 2,753 741 2,012 2,073 61
Mr. Syed Zain Ali Kazmi Employee 3,497 892 2,605 2,973 368
Mr. Noman Anis Employee 2,689 343 2,346 2,547 201
Mr. Fahad Dar Employee 5,554 2,203 3,351 3,428 77
Mr. Zain Farooq Employee 2,882 245 2,637 2,841 204
Mr. Shahbaz Ahmed Khan Employee 5,554 2,282 3,272 4,258 986
Mr. Iftikhar Ahmed Dar Employee 3,240 1,285 1,955 2,036 81
Mr. Khawaja Jawwad Hassan Employee 3,267 1,296 1,971 2,332 361
(Amounts in thousand) Mr. Asad Shaikh Employee 4,505 1,085 3,420 2,544 (876) (Amounts in thousand) 2022 2021
Mr. Abdullah Zubair Employee 3,074 653 2,421 2,615 194 -------------Rupees---------------
Mr. Zouhair Ansari Employee 2,750 662 2,088 2,420 332
Mr. Mubeen Ashfaque Employee 3,393 577 2,816 2,958 142
Mr. Muhammad Ashar Employee 2,772 785 1,987 2,438 451
4.7 Capital work in progress
Mr. Sualeh Qamar Employee 5,507 858 4,649 5,498 849
Miss Tabinda Employee 3,625 359 3,266 3,275 9 Leasehold land 72,788 32,000
Mr. Mehboob Ahmed Khan Employee 2,749 544 2,205 2,480 275 Plant and machinery 15,863,184 13,289,369
Mr. Tanveer Ali
Mr. Syed Abbas Raza
Employee
Employee
2,731
13,830
267
3,527
2,464
10,303
2,584
10,232
120
(71)
Building and civil works including pipelines 1,088,866 1,267,733
Mr. Muhammad Babar Mobeen Employee 2,753 741 2,012 2,073 61 Furniture, fixtures and equipment 269,964 536,102
By Group policy to existing / Mr. Syed Zain Ali Kazmi Employee 3,497 892 2,605 2,973 368 Advances to suppliers (note 4.7.2) 5,706,243 1,852,623
resigned / retired Mr. Noman Anis Employee 2,689 343 2,346 2,547 201 Capital stores and spares 1,747,581 279,026
executives / employees Mr. Umair Muhammad Siddiq Employee 2,712 459 2,253 2,467 214 Aircraft - 2,578,022
Mr. Muhammad Raza Tariq Employee 3,264 46 3,218 3,208 (10)
Mr. Ahsan Employee 14,606 8,834 5,772 18,083 12,311
Internally generated intangible asset 19,911 30,144
Mr. Syed Manzoor Hussain Zaidi Employee 13,410 760 12,650 13,558 908 Other ancillary cost 71,278 400,103
Mr. Faiq Hasnain Employee 3,029 430 2,599 2,746 147 24,839,815 20,265,122
Ms. Anum Irfan Employee 2,721 540 2,181 2,108 (73)
Mr. Suleman Malik Employee 3,437 623 2,814 2,976 162 4.7.1 Balance as at January 1 20,265,122 26,166,617
Mr. Munawar Saeed Employee 2,723 644 2,079 1,993 (86)
Mr. Muhammad Danial Employee 3,248 2,148 1,100 2,493 1,393
Additions during the year 37,588,841 23,557,055
Mr. Khalid Employee 3,315 1,098 2,217 2,337 120 Borrowing cost capitalized during the year 42,669 27,645
Mr. Syed Aqeel Abbas External party 10,839 4,309 6,530 4,833 (1,697) Reclassification 28,791 -
Mr. Syed Hassan Raza External party 15,645 6,356 9,289 6,667 (2,622) Transferred to:
Bidding Mr. Muhammad Imran ul Haq External party 7,822 3,178 4,644 3,333 (1,311)
- operating assets (32,813,372) (28,148,457)
Mr. Tahir Saleem External party 42,410 21,144 21,266 4,200 (17,066)
Mr. Muhammad Fayyaz External party 1,137 262 875 363 (512)
- intangible assets (261,360) (1,160,673)
287,396 103,025 184,371 202,248 17,877 - capital spares (10,876) (155,043)
Write-off - (22,022)
December 31, 2022 1,493,961 866,118 627,843 514,034 (113,809) Balance as at December 31 24,839,815 20,265,122
December 31, 2022 420,099 245,027 175,072 220,613 (45,541)
4.7.2 This mainly represents advance paid to suppliers for purchase of operating assets. It also
includes Rs. 636,268 paid as advance representing EFert's share in respect of a joint operation
related to Pressure Enhancement Facility (PEF), as disclosed in note 59 to these consolidated
financial statements.
4.8 These include jetty and plant and machinery subject to operating lease having net book value of
Rs. 3,885,331 (2021: Rs. 4,050,703) and Rs. 1,882,324 (2021: Rs. 1,784,522), respectively.

5. right-of-Use Asset 5.1 This represents right-of-use asset recognized against lease agreements entered into by the
Holding Company, Enfrashare and EPCL in respect of office space, tenanted sites and storage
tanks, respectively.
Office space,
Storage
rented premises
tanks
Buildings Vehicals Total 5.2 Depreciation charge for the year has been allocated as follows:
and tower sites
-----------------------------------------------Rupees------------------------------------------------- 2022 2021
-------------Rupees---------------
As at January 1, 2021
Cost 5,328,797 3,097,058 66,704 5,849 8,498,408 Cost of goods sold (note 35.1) 449,662 419,364
Accumulated depreciation (642,641) (830,212) (33,542) (253) (1,506,648)
Net book value 4,686,156 2,266,846 33,162 5,596 6,991,760 Cost of services rendered (note 35.2) 603,671 354,230
Capital work in progress 17,723 23,630
Year ended December 31, 2021 Selling and distribution expenses (note 36) 25,299 -
Administrative expenses (note 37) 245,086 244,739
Opening net book value 4,686,156 2,266,846 33,162 5,596 6,991,760 1,341,441 1,041,963
Additions (note 5.1) 3,702,031 172,777 - - 3,874,808
Transfer to operating assets (note 4.1) - - - (5,596) (5,596)
Depreciation charge for the

year (note 5.2) (605,827) (419,364) (16,772) - (1,041,963)
Closing net book value 7,782,360 2,020,259 16,390 - 9,819,009
Cost 9,030,828 3,269,835 66,704 5,849 12,373,216

Accumulated depreciation (1,248,468) (1,249,576) (50,314) (5,849) (2,554,207)
Net book value 7,782,360 2,020,259 16,390 - 9,819,009
Opening net book value 7,782,360 2,020,259 16,390 - 9,819,009

Additions (note 5.1) 4,724,381 - 126,874 - 4,851,255
Depreciation charge for the

year (note 5.2) (861,458) (449,662) (30,321) - (1,341,441)
Closing net book value 11,645,283 1,570,597 112,943 - 13,328,823
Cost 13,755,209 3,269,835 193,578 - 17,218,622

Accumulated depreciation (2,109,926) (1,699,238) (80,635) - (3,889,799)
Net book value 11,645,283 1,570,597 112,943 - 13,328,823
Rate of depreciation 5 - 33 10 - 20 10

-------------Rupees---------------
6. intangible assets 6.1 Amortization charge for the year has been
Software Rights for allocated as follows:
and future gas Total
licenses utilization Cost of goods sold (note 35.1) 28,543 37,176
-----------------------Rupees---------------------- Cost of services rendered (note 35.2) 10,889 63
Capital work in progress - 191
As at January 1, 2021 Selling and distribution expenses (note 36) 4,371 4,756
Administrative expenses (note 37) 368,457 202,797
Cost 1,924,983 102,312 2,027,295 412,260 244,983
Accumulated amortization and impairment (889,671) (50,343) (940,014)
Net book value 1,035,312 51,969 1,087,281
6.2 This mainly includes cost incurred in respect of OneSAP project, which is being amortized over a period
Year ended December 31, 2021 of 8 years.
2022 2021
-------------Rupees---------------
Opening net book value 1,035,312 51,969 1,087,281 7. long-term investments
Additions including transfers (note 6.2) 1,632,561 - 1,632,561
Investments in Joint Venture and Associates:
Write offs / disposals
Cost (100,795) - (100,795) Joint venture company - Engro Vopak Terminal
Accumulated amortization 24,260 - 24,260 Limited (EVTL) - (notes 7.1 to 7.4) - -
(76,535) - (76,535)
Investment in associates (notes 7.5 to 7.8):
Amortization charge for the year (note 6.1) (239,872) (5,111) (244,983)
2,351,466 46,858 2,398,324 - FrieslandCampina Engro Pakistan Limited (FCEPL)
306,075,948 (2021: 306,075,948) ordinary shares
of Rs. 10 each 29,516,748 28,574,139
Less: Provision for impairment (note 7.5) (1,224,304) (1,224,304)
Cost 3,456,749 102,312 3,559,061 28,292,444 27,349,835
Accumulated amortization and impairment (1,105,283) (55,454) (1,160,737) - Sindh Engro Coal Mining Company Limited (SECMC)
Net book value 2,351,466 46,858 2,398,324 - 191,643,025 (2021: 191,643,025) ordinary shares of
Rs.10 each [Percentage of holding
Year ended December 31, 2022 11.9% (2021: 11.9%)] - (note 7.6) 7,163,979 6,190,488
Opening net book value 2,351,466 46,858 2,398,324 - Others
Additions including transfers (note 6.2) 288,497 - 288,497 Gross carrying value as at December 31 1,860,187 1,860,187
Less: Impairment recognized thereagainst (1,327,684) (1,327,684)
Amortization charge for the year (note 6.1) (407,150) (5,110) (412,260) 532,503 532,503
Others (note 7.9) 92,320 144,244

Closing net book value 2,232,813 41,748 2,274,561 36,081,246 34,217,070
As at December 31, 2022 7.1 Details of investment in EVTL are as follows:
Cost 3,745,246 102,312 3,847,558 At beginning of the year - -

Accumulated amortization and impairment (1,512,433) (60,564) (1,572,997)
Net book value 2,232,813 41,748 2,274,561 Add: Share of profit for the year (note 41) 1,222,769 1,175,457
Less: Provision adjustment in respect of tax

Annual rate of amortization (%) 6.67% - 33.33% 5% contingency (note 28.6) (290,269) (20,457)
Less: Dividend received during the year (932,500) (1,155,000)

7.1.1 As a result of share of profit for the year, the provision for tax contingency amounting to Rs. 1,089,727 7.5 FrieslandCampina Engro Pakistan Limited (FCEPL) is a public listed company, incorporated in Pakistan.
previously set off against the carrying value of the Group's investment has increased by Rs. 290,269 The Holding Company holds 39.9% shareholding in FCEPL. The principal activity of FCEPL is to
representing difference between the share of profit and dividend received by the Group. Accordingly, the manufacture, process and sell dairy products, beverages, ice cream and frozen desserts. Earlier in 2016,
net provision set off against the carrying value of the Group's investment in EVTL now amounts to Rs. the Holding Company partially disposed-off its investment in FCEPL resulting in it being recognized as an
1,379,996 (2021: Rs. 1,089,727). associate and the retained interest in FCEPL valued at fair value on the date of disposal in accordance
with the requirements of IFRS. As per the accounting policy of the Group, investment in associates is
7.2 As at December 31, 2022, the Holding Company held 45,000,000 ordinary shares (2021: 45,000,000 carried at cost in the consolidated financial statements which is adjusted for post-acquisition changes in
ordinary shares) of EVTL representing 50% of the issued, subscribed and paid-up capital of EVTL. net assets.
7.3 Cases for the tax year 2003 to tax year 2011 of EVTL to determine as to whether the income of EVTL is An impairment loss of Rs. 1,224,304 was recognized in the consolidated financial statements for the year
liable to be taxed under the Normal Tax Regime (NTR) or Final Tax Regime (FTR) are pending in the ended December 31, 2019, based on the Holding Company's assessment of the recoverable amount of
Honorable Supreme Court of Pakistan (SCP) and the High Court of Sindh (HCS). In this respect, EVTL has the investment. However, based on the Holding Company's assessment as at December 31, 2022, no
disclosed a contingent liability amounting to Rs. 4,124,049, in its financial statements, representing further impairment charge is required to be recognized in respect of this investment.
potential tax liability that EVTL may have to recognize if the aforementioned cases are decided against
EVTL. 7.6 Details of material investments in associated companies are as follows:
On the basis of legal advice, the Group has recognized its proportionate share of the aforementioned, 2022 2021
amounting to Rs. 2,062,024 (2021: Rs. 2,062,024). This potential tax liability has been adjusted by the Particulars FCEPL SECMC FCEPL SECMC
Group against the carrying value of its investment in EVTL to the extent of it being 'Nil' and the balance ------------------------------Rupees------------------------------
amount has been recognized as a provision (note 28.6), depicting the Group's constructive obligation to
bear the potential exposure. At beginning of the year 27,349,835 6,190,488 26,639,774 4,384,236
7.4 The summary of financial information of EVTL as of December 31, is as follows: Add:
- Investment in associates - - - 474,839

- Share of profit for
Statement of financial position Statement of profit or loss and other comprehensive the year (note 41) 983,804 1,008,703 719,827 1,331,413
income - Reversal of profits - (35,212) - -
Particulars 2022 2021 Particulars 2022 2021 - Share of other comprehensive loss (41,195) - (9,766) -
------------ Rupees ------------ ------------ Rupees ------------ 942,609 973,491 710,061 1,331,413
28,292,444 7,163,979 27,349,835 6,190,488
Cash and cash equivalents 494,198 1,003,886 Revenue 5,503,117 4,430,160
Current financial liabilties (excluding

trade and other payables) 503,724 392,721 Depreciation and 285,551 271,955
amortization
Non-current financial liabilities
(excluding trade and other payables) 748,219 976,376 Interest income 154,141 51,344
Non-current assets 3,633,484 3,367,371

Current assets 2,990,253 1,890,857
Non-current liabilities (1,344,162) (1,429,488) Income tax expense 1,506,406 955,157
Current liabilities (2,484,790) (1,614,492)
2,794,785 2,214,248
Group's share at 50% (2021: 50%) 1,397,393 1,107,124 Total comprehensive

Provision against tax contingency (1,379,996) (1,089,727) income for the year 2,445,537 2,350,915
Others (17,397) (17,397)
Carrying amount - -

7.7 The summary of financial information / reconciliation of associated companies in which the Group holds 7.9 This amount is net of loss of Rs. 51,081 (2021: gain of Rs. 39,248) arising on remeasurement of
material investment as of December 31, is as follows: investment.
Particulars FCEPL SECMC
8. deferred taxation
2022 2021
2022 2021 2022 2021 Assets Liabilities Assets Liabilities
--------------------------------------------Rupees--------------------------------------------- ----------------------------------------Rupees----------------------------------------
Revenue 73,473,687 52,094,197 51,491,274 39,221,368

Engro Corporation Limited 101,660 - 73,537 -
Engro Fertilizers Limited - 8,154,634 - 11,942,999
Profit after tax 2,465,673 1,804,078 8,476,494 11,175,432
Engro Energy Limited - 1,462,365 6,809 1,038,707
Engro Polymer and Chemicals Limited - 2,130,680 - 2,029,290
Other comprehensive loss (103,246) (24,478) - -
Elengy Terminal Pakistan Limited - 1,547,614 - 1,231,789
Net effect of consolidation adjustments - 99,921 - 13,864
Total comprehensive income 2,362,427 1,779,600 8,476,494 11,175,432
- - - -
101,660 13,395,214 80,346 16,256,649
Non-current assets 12,914,115 11,867,687 97,212,818 87,056,319
Current assets 21,832,496 15,270,425 104,472,423 75,731,535

Total assets 34,746,611 27,138,112 201,685,241 162,787,854 2022 2021
-------------Rupees---------------
Less: 8.1. Credit / (debit) balances arising on account of:
Non-current liabilities 1,229,288 2,448,015 74,711,753 60,899,766
- Accelerated depreciation allowance 21,799,207 18,061,981
Current liabilities 20,827,652 14,362,853 66,060,879 49,156,078
- Recoupable carried forward tax losses - (19,245)
Total liabilities 22,056,940 16,810,868 140,772,632 110,055,844
- Provisions (7,639,445) (1,727,308)
- Net investment in lease 18,910,802 14,064,429
- Lease liability (19,035,924) (14,301,989)
Net assets 12,689,671 10,327,244 60,912,609 52,732,010
- Right of use asset 320,150 51,765
- Share issuance cost, net of equity (65,149) (57,830)
Group's share in % 39.9% 39.9% 11.9% 11.9% - Others (996,087) 104,500
13,293,554 16,176,303
Group's share of net assets 5,063,180 4,120,571 7,248,600 6,280,382
9. financial assets at amortized cost
Recognition of investment at fair value 24,337,818 24,337,818 - -
Others 115,750 115,750 (84,621) (89,894) Investment in Term Deposit Receipts (note 9.1) 1,317,506 3,092,784
Provision for impairment (1,224,304) (1,224,304) - - Investment in Term Finance Certificates (note 9.2) 261,000 500,000
Carrying amount 28,292,444 27,349,835 7,163,979 6,190,488 Investment in Pakistan Investment Bonds (note 9.3) 2,204,759 -
3,783,265 3,592,784
7.8 The comparison between quoted fair value and carrying amount of listed associated company is given
below: 9.1 The amount is net of current portion amounting to Rs. 2,722,683 (2021: Rs. 2,086,711). These denote
Term Deposits Receipts aggregating to USD 35,000 maintained with Dubai Islamic Bank Pakistan
Name of entity Place of business Measurement Limited. These carry profit at the rate of six months LIBOR + 0.89% per annum and are due to mature in
method Quoted fair value Carrying amount six equal semi-annual installments of USD 5,833 each, starting from July 15, 2021 and ending on January
2022 2021 2022 2021
15, 2024.
-------Rupees------- -------Rupees-------
9.2 Represents investment in Term Finance Certificates amounting to Rs. 261,000 (2021: Rs. 500,000)
FrieslandCampina Engro 5th Floor, The Harbour Front Equity method 20,109,190 25,933,815 28,292,444 27,349,835
Pakistan Limited Building, Plot No. HC-3, Block-4,
carrying markup at the rate of 3 months KIBOR with a margin of 1.6%.
Scheme No.5, Clifton, Karachi"
9.3 These bonds carry interest at the rates ranging between 13.04% to 17.57% per annum and have maturity
terms ranging between two to five years.

10. derivative financial instruments 11.2 Enfrashare is party to an agreement that conveys the right to use energy equipment. This arrangement is
classified as finance lease, with Enfrashare as the lessor. Finance lease - gross investment and net
As at December 31, 2022, Enfrashare has outstanding interest rate swap agreements with Standard investment in lease includes deferred incentive income of Rs. 367,522 (2021: Rs. 521,106) and Rs.
Chartered Bank Pakistan Limited for notional amounts aggregating to Rs. 5,000,000 to hedge its interest 152,519 (2021: Rs. 152,519) respectively, offered to the customer on signing of multiple contracts
rate exposure on floating rate borrowings from various lenders. Under the swap agreements, Enfrashare accounted for as a single arrangement as disclosed in note 26.1 to these consolidated financial
would receive 3 month KIBOR on respective notional amounts and will pay fix rates. Details of these swap statements. The deferred incentive income represents discounted rentals offered to the customer for the
agreements are as follows: above mentioned finance lease arrangement.
Fair value as at
December 31, December 31, 11.3 Lease rentals received during the year aggregate to Rs. 10,929,793 (2021: Rs. 8,381,832).
2022 2021
Notional amount Effective date Termination date Fixed rate ----------------------Rupees----------------------

------Rupees------ 2022 2021
-------------Rupees---------------
1,000,000 July 2, 2021 June 3, 2026 9.85% 158,797 28,313
12. long-term loans, advances, deposits and
other receivables
4,000,000 July 2, 2022 June 3, 2026 10.35% 578,522 64,492
- considered good
737,319 92,805
Loans and advances to
- Executives (notes 12.1 to 12.4) 113,903 166,333
- Other employees (notes 12.2 and 12.4) 42,408 105,221
2022 2021 Deposits to suppliers 194,978 9,988
-------------Rupees------------- 351,289 281,542
11. net investment in leases
Undiscounted lease payments analysed as: Less: Current portion shown under current assets (note 16) (111,057) (200,052)
240,232 81,490
Recoverable after 12 months 72,143,936 65,539,801
Recoverable within 12 months 11,760,764 9,225,520 Receivable from Sui Southern Gas Company
83,904,700 74,765,321 Limited (SSGCL) (note 12.5) 869,985 923,654
Less: Current portion shown under current assets (note 16) (64,168) (49,082)
Less: Unearned finance income (26,061,002) (25,557,176) 805,817 874,572
Net investment in lease 57,843,698 49,208,145
Direct cost on Floating, Storage & Regasification
Net investment in lease analysed as: Unit (FSRU) (note 12.6) 1,297,737 1,297,737
Less: Accumulated amortization (677,708) (591,192)
Recoverable after 12 months 52,160,406 45,203,623 620,029 706,545
Recoverable within 12 months 5,683,292 4,004,522
57,843,698 49,208,145 Security deposits (note 12.7) 224,548 99,969
Other receivables (note 12.8) 1,926,162 853,660
Maturity analysis of undiscounted net investment in lease: 3,816,788 2,616,236
Within 1 year 11,760,764 9,186,597 12.1 Reconciliation of the carrying amount of loans
Between 1 and 2 years 11,776,622 9,186,597 and advances to executives:
Between 2 and 3 years 11,620,709 9,211,141
Between 3 and 4 years 11,493,870 9,186,597 Balance as at January 1 166,333 372,420
Between 4 and 5 years 11,493,870 8,958,626 Add: Disbursements 254,650 143,702
Later than 5 years 25,758,865 29,035,763 Less: Repayments / Amortization (307,080) (349,789)
83,904,700 74,765,321 Balance as at December 31 113,903 166,333
11.1 EETPL entered into lease arrangement with respect to its LNG infrastructure for receipt, storage and
regasification of LNG. EETPL's implicit rate of return on net investment in lease is 11.52% per annum.

12.8 This represents accrued infrastructure equalization revenue of Enfrashare amounting to Rs. 1,926,162
12.2 Long term loans include:
(2021: Rs. 853,660) related to the effect of fixed escalation claims that is spread on straight line basis over
the non cancellable lease term and invoices for this amount have not been raised at the reporting date by
- interest free service incentive loans to executives and other employees according to the Group's policy,
Enfrashare.
repayable in equal monthly installments over a five years period or in one lump sum payment at the end 2022 2021
of such period, and are secured to the extent of the provident fund balance and retirement benefits, if -------------Rupees---------------
vested, of the respective employees; 13. stores, spares and loose Tools
- interest free loans given to workers pursuant to Collective Labour Agreement; and Consumable stores 10,526,425 10,035,794
Spares and loose tools including
- advances to employees for car earn out assistance, long term incentive and house rent advance. in-transit Rs. 73,784 (2021: Rs. 20,122) 624,777 534,592
11,151,202 10,570,386
12.3 The maximum amount outstanding at the end of any month from the executives of the Group aggregated Less:
Provision for surplus and slow moving items (note 13.1) (1,316,388) (1,260,255)
to Rs. 120,215 (2021: Rs. 233,816). 9,834,814 9,310,131
12.4 The carrying values of these financial assets are neither past due nor impaired. The credit quality of these 13.1 Provision for surplus and slow moving items
financial assets can be assessed with reference to no defaults in recent history. Balance as at January 1 1,260,255 1,071,934
Charge for the year - net (note 35.1) 84,591 195,262
12.5 In 2014, Engro Elengy Terminal (Private) Limited (EETPL) entered into LNG Operations and Services Written off during the year (28,458) (6,941)
Agreement (LSA) with Sui Southern Gas Company Limited (SSGCL). As per the terms of the LSA, EETPL Balance as at December 31 1,316,388 1,260,255
was required to construct / build a pipeline (SSGCL Branch Pipeline) and transfer it to SSGCL upon
commissioning of the LNG Project and recover the cost of construction through capacity charges to be 13.2 During the year, the Group has directly written off stores, spares and loose tools amounting to Rs. 25,975
billed to SSGCL over the term of the LSA. EETPL constructed and transferred the SSGCL Branch (2021: Rs. 98,719).
Pipeline to SSGCL on March 29, 2015, for which the Certificate of Acceptance has been received from 2022 2021
SSGCL. The receivable represents construction costs incurred in this respect, net of recoveries. -------------Rupees---------------
14. stock-in-trade
12.6 On June 19, 2015, EETPL received a notice from Model Customs Collectorate (the ‘Custom Authorities’)
Raw and packaging materials (note 14.1) 9,894,583 11,761,709
seeking information on import of FSRU and contending that the import attracts all leviable duties and Unprocessed rice 1,202,364 3,532,912
taxes i.e. custom duty and advance income tax. EETPL was of the view that the FSRU had been Fuel stock 537,232 165,860
classified as plant, machinery and equipment vide SRO 337(I)/2015 dated April 22, 2015 and accordingly, Work-in-process 133,161 177,862
along with sales tax, custom duty is also exempt under SRO 678(I)/2004 dated August 7, 2004, read with
condition (vii) relating to clause 2(a), being of the nature of import-cum-export or temporary import of Finished goods:
plant, machinery and equipment. - own manufactured products (notes 14.1 and 14.2) 9,469,340 7,351,417
- Purchased and packaged products (notes 14.1 and 14.2) 9,313,718 8,669,441
Further, since EETPL’s profits and gains are exempt from income tax for 5 years from the date of 18,783,058 16,020,858
commercial operations, EETPL is also entitled to exemption from collection of advance income tax. The
Less: Provision for impairment against
Customs Authorities were not in agreement with EETPL’s views on the same and to treat import of FSRU stock-in-trade (note 14.3) (307,609) (146,194)
for 15 years as a temporary import. EETPL in response filed a suit before the High Court of Sindh (HCS) 30,242,789 31,513,007
which through its order dated June 29, 2015 had restrained Customs Authorities from the collection of
custom duty and advance income tax. 14.1 Includes:
The Court, in judgement passed on May 26, 2016, held EETPL liable to custom duty and remanded the - materials in transit amounting to Nil (2021: Rs. 2,484,420); and
matter related to advance income tax to Customs Authorities with directions. EETPL, in response to the
aforementioned judgement and demand raised by Customs Authorities, has paid an amount of Rs. - inventories amounting to Rs. 3,437,422 (2021: Rs. 2,872,148) held at storage facilities of third parties.
1,325,103 in respect of custom duty. This is being amortized over the term of 15 years, on the basis of
prudence. 14.1.1 During the year, raw materials and finished goods amounting to Rs. 237,549 (2021: Rs. 49,265) were
directly written off.
12.7 These mainly represent security deposits paid by Enfrashare to service providers in respect of utility
connections. 14.2 Includes stock-in-trade costing Rs. 4,079,147 (2021: Nil) carried at net realisable value, amounting to
Rs. 3,651,147 (2021: Nil).

287,396 103,025 184,371 202,248 17,877
December 31, 2022 1,493,961 866,118 627,843 514,034 (113,809)
December 31, 2022 420,099 245,027 175,072 220,613 (45,541)

-------------Rupees---------------
14.3 Provision for impairment against stock-in-trade
15.7 During the year, the Group has directly written off trade debts amounting to Rs. 2,204 (2021: Nil).
Balance as at January 1 146,194 231,661
Charge for the year - net 179,507 111,129 15.8 As at December 31, 2022, trade debts aggregating to Rs. 41,232,104 (2021: Rs. 37,711,229) were past
Written off during the year (18,092) (196,596) due but not impaired. These relate to various customers for which there is no recent history of default.
Balance as at December 31 307,609 146,194 Ageing analysis of these trade debts is as follows:
2022 2021
15. trade debts -------------Rupees---------------
Considered good
- secured (notes 15.1 to 15.3) 67,536,108 57,923,818 - Upto 3 months 33,434,497 24,462,914
- unsecured 3,659,355 604,953 - 3 to 6 months 7,100,949 7,870,592
71,195,463 58,528,771 - More than 6 months 696,658 5,377,723
41,232,104 37,711,229
Considered doubtful (note 15.5) 350,069 338,007
71,545,532 58,866,778
15.9 Details of amounts due from associated undertakings / related parties are as follows:
Less: Provision for impairment (note 15.6) (350,069) (338,007) 2022 2021
71,195,463 58,528,771 -------------Rupees---------------
15.1 Includes trade debts of EPQL and EPTL aggregating to Rs. 61,326,079 (2021: Rs. 51,601,480) due from - GEL Utility Limited 49,073 49,849
Central Power Purchasing Agency Guarantee Limited (CPPA-G), alongwith delayed payment charges - Tenaga Generasi Limited 198,966 98,158
which are secured by a guarantee from the Government of Pakistan under the Implementation 248,039 148,007
Agreements and as such are considered good. This is inclusive of overdue trade debt of Rs. 41,155,626
(2021: Rs. 37,108,764) carrying mark-up at the rate of 3 months KIBOR plus 2% to 4.5% per annum.
15.10 The ageing analysis of past due receivables from associated undertakings / related parties is as follows:
15.2 Includes an amount of Rs. 2,637,756 (2021: Rs. 1,783,800) due from SSGCL, in respect of finance
2022 2021
income on net investment in lease, operating lease rentals, utilization / regasification services and -------------Rupees---------------
operations and maintenance services.
15.3 Includes an amount of Rs. 6,309 (2021: Rs. 472,177) in respect of export sales. - Upto 3 months 16,940 96,880
- 3 to 6 months 57,022 -
15.4 As at December 31, 2022, trade debts aggregating to Rs. 29,963,359 (2021: Rs. 20,817,542) were - More than 6 months 51,629 49,849
neither past due nor impaired. 125,591 146,729
15.5 As at December 31, 2022, trade debts aggregating to Rs. 350,069 (2021: Rs. 338,007) were past due 15.11 The maximum amount due from related parties at the end of any month during the year aggregates to
and impaired and have been provided for. Rs. 288,128 (2021: Rs. 222,715).
2022 2021
15.6 The movement in provision during the year is as follows: -------------Rupees---------------
16. loans, advances, deposits and prepayments
2022 2021
-------------Rupees--------------- Current portion of long term loans and advances to
executives and other employees (note 12) 111,057 200,052
Advances to executives and other employees (note 16.1) 4,150 5,824
Balance as at January 1 338,007 84,792 Current portion of receivable from SSGCL (note 12) 64,168 49,082
Add: Provision for doubtful debts - net (note 39) 12,426 289,094 Advances and deposits 4,626,833 2,190,836
Trade debts written off (364) (35,879) Prepayments:
Balance as at December 31 350,069 338,007 - insurance 682,125 1,372,697
- freight 164,876 38,251
- others 1,196,505 1,163,963
6,849,714 5,020,705

16.1 Represents interest free advances given to executives and other employees for house rent, in accordance During 2017, another subsidy scheme was announced by the GoP, effective July 01, 2017. Under the
with the Group’s policy. new subsidy scheme, aforementioned rates were replaced with Rs. 100 per 50 kg bag for Urea only. This
subsidy scheme was effective till June 30, 2018. In line with the notification issued for the said scheme,
16.2 The carrying values of loans and advances are neither past due nor impaired. The credit quality of these Ministry of National Food Security and Research has appointed third party auditors for verification of
financial assets can be assessed with reference to no defaults ever. subsidy claims which is underway.
2022 2021 2022 2021
-------------Rupees--------------- -------------Rupees---------------
17. other receivables
Receivable from Government of Pakistan (GoP) against: Subsidy receivable from the Government of Pakistan - net
- Sales tax refunds 15,999,317 11,012,377
- Subsidy (note 17.1) 6,523,493 6,523,493 Gross subsidy receivable from the GoP 6,523,493 6,523,493
Less: Provision against doubtful receivable (note 17.3) (155,127) (155,127)
22,522,810 17,535,870 Less: Loss allowance on subsidy receivable from
Less: Loss allowance on subsidy receivable the GoP (note 17.2) (2,319,548) (1,796,612)
from GoP (notes 17.1.1 and 17.2) (2,319,548) (1,796,612) 4,048,818 4,571,754
Less: Provision for impairment (note 17.1) (155,127) (155,127)

20,048,135 15,584,131 17.1.1 The movement in loss allowance on subsidy receivable from the GoP is as follows:
2022 2021
Delayed payment charges (note 17.4) 9,868,982 7,075,436 -------------Rupees---------------
Workers' profits participation fund 401,745 310,518
Reimburseable costs from CPPA in respect of:
- Workers' profits participation fund (note 17.8) 2,712,723 2,082,205 Balance as at January 1 1,796,612 1,238,912
- expenses 32,627 21,827 Loss allowance for the year 522,936 557,700
2,745,350 2,104,032 Balance as at December 31 2,319,548 1,796,612
Receivable from:
- Dawood Hercules Corporation Limited 265 - 17.2 As required under IFRS 9, an entity is required to assess changes in credit risk by taking into account the
- Engro Foundation 112 30,973 time value of money, reasonable and supportable assumptions regarding past events, current conditions,
- Thar Foundation 1,451 5,625
- Sindh Engro Coal Mining Company Limited 17,246 17,001 forecast of future events and economic conditions attached to its receivable and recognize expected
- Thar Power Company Limited 3,483 1,811 credit loss, if any, based on this, EFert has recomputed expected credit loss amounting to Rs. 2,319,548
- FrieslandCampina Engro Pakistan Limited 1,753 40,724 (2021: Rs. 1,796,612) on subsidy receivable giving consideration to the time value of money, based on
- China East Resources Import and Export Corporation 100,305 93,305 expected recovery of subsidy receivable. EFert, however, is confident of full recovery of the subsidy
Insurance claim receivable (note 1.3.1.2) 365,825 - amount from the GoP.
Claims receivable - net 620,364 76,650
Retirement benefit funds 125,797 92,830 17.3 As at December 31, 2022, specific provision in respect of subsidy amounts to Rs. 155,127 (2021: Rs.
Others (notes 17.7 and 17.9) 1,603,525 304,148 155,127).
35,962,591 25,780,784
17.4 This represents mark-up on overdue trade debts relating to EPQL and EPTL, of which Rs. 7,467,066
17.1 During 2015, the Government of Pakistan (GoP) had notified payment of subsidy on sold product (2021: Rs. 5,329,041) is overdue.
at the rate of Rs. 500 per 50 kg bag of Di-Ammonia Phosphate (DAP), Rs. 217 per 50 kg bag of Nitrophos
(N) and Nitrogen, Phosphorous and Potassium (NPK) fertilizers (based on phosphorous content). This 17.5 The ageing analysis of past due receivables from associated undertakings / related parties are as follows:
subsidy scheme was effective till May 27, 2016.
2022 2021
-------------Rupees---------------
During 2016, another subsidy scheme was announced by the GoP effective June 25, 2016 whereby
subsidy was payable on sold product at the rate of Rs. 156 per 50 kg bag of Urea, Rs. 300 per 50 kg bag
of DAP and for Nitrophos 22:20 & 18:18 grade (based on phosphorus content) and NPK fertilizers (based Upto 3 months 20,384 133,896
on phosphorus content). 3 to 6 months 1,672 19,405
More than 6 months 40,970 79,738
63,026 233,039

17.6 The maximum amount due from related parties at the end of any month during the year amounts to Rs. 19.2 These bonds carry interest at the rates ranging between 14.84% to 17.66% per annum (2021: ranging
2,230,389 (2021: Rs. 1,301,195). upto 11.33%) and maturity on various dates between 1 to 12 months.
17.7 As at December 31, 2022, receivables aggregating to Rs. 54,730 (2021: Nil) were impaired and have 19.3 These bonds carry yield of 12.75% to 17.56% per annum and have maturity terms ranging between 2 to
been provided for in full. 10 years.
17.8 This includes outstanding invoiced amount of Nil (2021: Rs. 170,219) which is overdue for more than 6 19.4 This amount is net of loss amounting to Rs. 854,981 arising on remeasurement of Pakistan Investment
months. Bonds.
17.9 This includes non-adjustable sales tax of Rs. 740,888 (2021: Nil) relating to the project phase of EPTL, 19.5 These Treasury Bills carry interest at the rates ranging between 14.75% to 16.87% (2021: ranging upto
which, as per the Tariff Decision (note 34.2.1) is allowed to be claimed as a pass-through item from 11.35%) per annum and maturing on various dates between 3 to 10 months.
CPPA-G under the PPA, if disallowed by the relevant authorities.
19.6 These represent placements with banks and Term Deposit Receipts carrying interest at the rates ranging
2022 2021
-------------Rupees--------------- between 13.15% to 16.00% (2021: ranging upto 12.95%) per annum and maturing on various dates
18. contract assets between 1 to 10 months.
Capacity Purchase Price component of 2022 2021
tariff - EPTL (note 18.1) 12,130,839 5,452,510 -------------Rupees---------------
Unbilled revenue 1,993,454 1,034,595 20. cash and bank balances
14,124,293 6,487,105
Cash in hand 13,589 12,104
18.1 This includes unbilled revenue in respect of Capacity Purchase Price (CPP) component of tariff as per the
Balances with banks in:
Power Purchase Agreement (PPA), for the period July 10, 2019 (date of CoD) to December 31, 2021.
- deposit accounts (notes 20.1 and 20.2) 38,108,828 35,710,235
2022 2021 - deposit accounts - islamic (note 20.3) 483 973
-------------Rupees--------------- - current accounts 6,863,727 4,704,362
19. short-term investments 44,973,038 40,415,570
At fair value through profit or loss
Cheques / Demand drafts in hand - 67,927
Investment in units of mutual funds (note 19.1) 17,166,688 20,005,901 44,986,627 40,495,601
Pakistan Investment Bonds (note 19.2) 1,799,903 -
At fair value through other comprehensive income 20.1 Local currency conventional deposits carry return ranging from 4.5% to 16.5% (2021: 2.14% to 9.35%)
per annum.
Pakistan Investment Bonds (notes 19.3 and 19.4) 29,380,322 -
20.2 Includes Rs. 11,889,207 (2021: Rs. 8,536,344) held in foreign currency bank accounts and carry return
At amortized cost ranging upto 2.75% (2021: 0.10%) per annum.
Treasury bills (note 19.5) 25,326,017 15,835,381
Pakistan Investment Bonds (note 19.2) 2,924,976 6,905,851 20.3 These are shariah compliant bank balances and carry profit at rates ranging from 4% to 9.1% (2021:
Fixed income placements / Term deposit receipts (note 19.6) 9,507,561 39,624,918 2.94% to 4.22%) per annum.
37,758,554 62,366,150
86,105,467 82,372,051 21. share capital
21.1 Authorized capital
19.1 This represents investment in 111,900,826 units (2021: 601,850,292 units) of mutual funds having cost
amounting to Rs. 17,138,858 (2021: Rs. 20,005,901). 2022 2021 2022 2021
-------(Number of shares)------- --------------(rupees)--------------
700,000,000 700,000,000 Ordinary shares of Rs. 10 each 7,000,000 7,000,000

Installments 2022 2021
Note Mark-up Number Commenced/ -------------Rupees-------------
21.2 Issued, subscribed and paid-up capital Commencing from
23.1 Islamic finances
2022 2021 2022 2021
-------(Number of shares)------- ---------------(Rupees)--------------- Sukuk 23.1.1 3 months KIBOR + 0.9% 5 half yearly July 10, 2024 - 8,667,709
Bilateral loan 23.1.2 6 months KIBOR + 0% 6 half yearly July 15, 2021 2,710,751 4,517,917
Ordinary shares of Rs. 10 each
197,869,804 197,869,804 fully paid in cash 1,978,699 1,978,699 Islamic long term financing facility (ILTFF) 23.1.3 SBP rate + 1.2% 32 quarterly December 14, 2022 1,868,317 1,927,386
Islamic Temporary Economic Refinance Ranging from SBP June 2023 to
Ordinary shares of Rs. 10 each Facility (ITERF) 23.1.4 rate + 0.75% to 1% 32 quarterly September 2023 1,716,699 663,115
378,293,426 378,293,426 issued as fully paid bonus shares 3,782,933 3,782,933 Loan under diminishing musharaka agreement 23.1.5 3 months KIBOR + 0.4% 6 half yearly June 28, 2023 400,000 400,000
Syndicated Long Term Islamic Financing
576,163,230 576,163,230 5,761,632 5,761,632 Facility 23.1.6 3 months KIBOR + 0.3% 12 quarterly March 27, 2028 8,730,846 -
Loan under diminishing musharaka agreement 23.1.7 3 months KIBOR + 0.3% 16 quarterly March 30, 2026 6,000,000 -
Islamic Facility Agreements 23.1.8 3 months KIBOR + 3.5% 20 half yearly June 1, 2020 3,322,900 3,581,305
21.3 As at December 31, 2022, Dawood Hercules Corporation Limited and associated companies held Meezan Bank Limited 23.1.9 3 months KIBOR + 0.93% 20 quarterly November 1, 2023 4,500,000 4,500,000
214,469,810 and 39,038,015 (2021: 214,469,810 and 39,038,015) ordinary shares in the Holding Meezan Bank Limited - Facility 2 23.1.10 3 months KIBOR + 0.4% 28 quarterly September 1, 2025 3,000,000 -
Faysal Bank Limited 23.1.11 3 months KIBOR + 0.4% 28 quarterly December 1, 2025 1,000,000 -
Company, respectively. 33,249,513 24,257,432
23.2 Conventional finances
21.4 These fully paid ordinary shares carry one vote per share and right to dividend. MCB Bank Limited - Facility 1 23.2.1 3 months KIBOR + 0.95% 20 quarterly October 1, 2022 1,000,000 1,000,000
Bank Alfalah Limited 23.2.2 3 months KIBOR + 0.8% 20 quarterly March 1, 2023 1,000,000 1,000,000
Habib Bank Limited - Facility 1 23.2.3 3 months KIBOR + 0.95% 20 quarterly April 1, 2023 1,700,000 1,700,000
22. maintenance reserve Habib Bank Limited - Facility 2 23.2.4 3 months KIBOR + 0.7% 20 quarterly December 1, 2023 2,000,000 2,000,000
MCB Bank Limited - Facility 3 23.2.5 3 months KIBOR + 0.4% 28 quarterly August 1, 2025 2,000,000 -
In accordance with the Power Purchase Agreement (PPA), EPQL is required to establish and maintain a Habib Bank Limited - Facility 3 23.2.6 3 months KIBOR + 0.4% 28 quarterly December 1, 2025 2,500,000 -
United Bank Limited 23.2.7 3 months KIBOR + 0.4% 28 quarterly December 1, 2025 1,500,000 -
separate reserve fund (the Fund) with a depository institution for payment of major maintenance
Facilities of EFert - Senior lenders
expenses. Any interest income resulting from the depository arrangements of the Fund is to remain in the
Fund to the extent of any shortfall from the contractual limit. Allied Bank Limited 23.2.11 3 months KIBOR + 0.35% 16 half yearly June 8, 2023 312,042 312,042
Allied Bank Limited 23.2.11 3 months KIBOR + 0.35% 6 half yearly June 17, 2023 1,000,000 1,000,000
National Bank of Pakistan 23.2.9 & 23.2.11 6 months KIBOR + 0.2% 4 half yearly June 30, 2022 500,000 1,000,000
Under the PPA, 1/24th of the annual operating and maintenance budget of the power plant less fuel Allied Bank Limited
Allied Bank Limited
23.2.9 & 23.2.11
23.2.9 & 23.2.11
6 months KIBOR + 0.2%
3 months KIBOR + 0.2%
4 half yearly
6 half yearly
June 30, 2022
June 16, 2022
1,050,000
1,666,667
2,100,000
2,500,000
expenses is required to be deposited into the Fund on each capacity payment date until such reserve MCB Bank Limited 23.2.9 & 23.2.11 6 months KIBOR + 0.05% 4 half yearly March 29, 2021 - 750,000
equals to nine such deposits. After the second agreement year and thereafter, the Fund may be MCB Bank Limited 23.2.9 & 23.2.11 3 months KIBOR + 0.25% 6 half yearly June 27, 2022 2,083,333 2,500,000
MCB Bank Limited 23.2.9 & 23.2.11 6 months KIBOR + 0.20% 4 half yearly December 25, 2021 1,500,000 3,000,000
re-established at such other level that EPQL and CPPA-G mutually agree. MCB Bank Limited 23.2.10 & 23.2.11 3 months KIBOR + 0.50% 16 quarterly January 25, 2023 - 151,800
MCB Bank Limited 23.2.10 & 23.2.11 3 months KIBOR + 0.50% 16 quarterly January 21, 2023 - 235,335
Habib Bank Limited 23.2.10 & 23.2.11 3 months KIBOR + 1.00% 36 quarterly March 21, 2023 - 9,015
In 2012 EPQL, due to uncertain cash flows resulting from delayed payments by CPPA-G has, as per Habib Bank Limited 23.2.10 & 23.2.11 3 months KIBOR + 1.00% 36 quarterly March 29, 2023 - 11,048
8,112,042 13,569,240
flexibility available under the PPA, reduced the amount deposited in a schedule bank, which has been
invested in Treasury Bills having a face value of Rs. 49,321 (2021: Rs. 49,321) as at December 31, 2022. JS Bank Limited SBP Rate + 2% 20 quarterly September 23, 2019 30,000 50,000
Bank Alfalah SBP Rate + 2% 20 quarterly May 1, 2012 78,740 83,455
Till such time the amount is deposited again to the required level, EPQL has unutilized short term financing National Bank of Pakistan 23.1.8 3 months KIBOR + 3.5% 20 half yearly June 1, 2020 2,603,491 2,805,952
available to meet any unexpected maintenance requirement that may arise in the foreseeable future. HBL - led consortium 23.1.8 3 months KIBOR + 3.5% 20 half yearly June 1, 2020 14,135,615 15,234,870
Allied Bank Limited 23.2.12 6 months KIBOR + 0.8% 4 half yearly June 15, 2022 515,295 1,048,235
MCB Bank Limited - Syndicate facility 23.2.13 3 months KIBOR + 0.7% 20 quarterly December 1, 2023 3,500,000 3,500,000
2022 2021 40,675,183 41,991,752
-------------Rupees-------------- TERF Loans - EFert
Allied Bank Limited 23.2.10 1.50% Various March 30, 2023 676,310 676,310
23. borrowings Habib Bank Limited
MCB Bank Limited
23.2.8 & 23.2.10
23.2.8 & 23.2.10
2.00%
1.50%
Various
Various
January 29, 2023
January 13, 2023
799,841
3,472,602
35,592
2,835,660
- Secured (Non-participatory) 4,948,753 3,547,562
45,623,936 45,539,314
23.3 Foreign currency borrowings and others
Islamic finances (note 23.1) 33,249,513 24,257,432
Conventional finances (note 23.2) 45,623,936 45,539,314 International Finance Corporation (IFC) 23.3.1 6 months LIBOR + 3.25% 6 half yearly July 15, 2021 3,913,259 5,114,204
Deutsche Investitions und
Foreign currency borrowings and others (note 23.3) 106,825,744 94,394,828 Entwicklungsgesellschaft 23.2.9, 23.2.11 & 23.3.4 6 months LIBOR + 3.75% 9 half yearly December 15, 2019 755,646 1,178,246
Allied Bank Limited (Bahrain) 23.2.12 & 23.3.2 6 months LIBOR + 3% 6 half yearly June 13, 2022 1,945,047 2,297,496
185,699,193 164,191,574 China Development Bank Corporation (CDBC)
China Construction Bank Corporation (CCBC)
and Industrial and Commercial Bank of
Less: Current portion shown under current liabilities (27,699,919) (23,110,031) China Limited (ICBCL) 23.3.3 6 months LIBOR + 4.2% 20 half yearly December 21, 2015 105,576,723 91,915,325
112,190,675 100,505,271
Less: Government grant (note 24) (1,825,480) (1,263,327) Less: Transaction costs 23.3.5 (5,364,931) (6,110,443)
156,173,794 139,818,216 106,825,744 94,394,828

23.1.1 In 2019, EPCL issued listed sukuk bonds of Rs. 8,750,000 to eligible institutional and other investors 23.1.8 EPTL has entered into the following loan agreements:
by way of private placement for a period of 7.5 years. However, during the year, EPCL has repaid the
entire issue amount and is currently in the process of delisting of sukuk bonds from PSX as at the - Rupee Facility Agreement with a consortium of banks led by Habib Bank Limited for an aggregate
reporting date. amount of Rs. 17,016,000. As at December 31, 2022, the outstanding balance of the borrowing was
Rs. 14,135,615 (2021: Rs. 15,234,870).
23.1.2 In 2019, EPCL entered into a musharaka agreement with Dubai Islamic Bank Pakistan Limited (DIBPL).
The borrowing is secured by way of hypothecation charge over present and future fixed assets of EPCL - Bilateral Facility Agreement with National Bank of Pakistan for an aggregate amount of Rs.
(except land and building) to the extent of Rs. 1,199,450, ranking subordinate and subservient to the 3,134,000. As at December 31, 2022, the outstanding balance of the borrowing was Rs. 2,603,491
charges created in favour of the existing creditors, and a lien and a right of set-off over the Term Deposit (2021: Rs. 2,805,952).
Receipt maintained with DIBPL.
- Islamic Facility Agreements with Meezan Bank Limited, Faysal Bank Limited and Habib Bank Limited
23.1.3 In 2020, EPCL obtained Islamic Long Term Financing Facility (ILTFF) of the State Bank of Pakistan for an aggregate amount of Rs. 4,000,000. As at December 31, 2022, the outstanding balance of
(SBP) through Musharaka agreement entered with financial institutions to finance its PVC III expansion the borrowing was Rs. 3,322,900 (2021: Rs. 3,581,305).
project. This is secured by way of hypothecation charge over present and future fixed assets of EPCL
(excluding land and building), to the extent of Rs. 2,437,500 which shall rank pari passu with the These loans are secured primarily through first ranking hypothecation charge over project assets of
charges created in favour of the existing creditors. EPTL. Further, the shareholders of EPTL have committed to provide cost overrun support for 10% of
entire debt and pledge shares in favour of the Security Trustee.
23.1.4 In 2021, EPCL obtained Islamic Temporary Economic Refinance Facility (ITERF) of SBP for a period of
10 years (including 2 years grace period) through Musharaka agreement entered with financial This includes Rs. 1,550,000 and Rs. 200,000 borrowed from Habib Bank Limited, a related party in
institutions of Rs. 1,000,000 to finance its capital expenditure. The borrowing is secured by way of respect of Rupee Facility agreements and Islamic Facility Agreements, respectively.
hypothecation charge over present and future fixed assets of EPCL (excluding land and building), to the
extent of Rs. 1,250,000 which shall rank pari passu with the charges created in favor of existing 23.1.9 In November 2021, Enfrashare entered into a secured long term musharka financing facility extended
creditors. During the year, EPCL further received Rs. 217,685 on account of ITERF loan facility. by Meezan Bank Limited for an amount up to Rs. 4,500,000. Facility availed as at December 31, 2022
is of Rs. 4,500,000 (2021: Rs. 4,500,000). The total tenor of loan is seven years from the date of
In 2021, EPPL entered into musharaka agreements aggregating to Rs. 650,000 under the ITERF of disbursement of finance with two years grace period for principal portion. The financing facility is
SBP. The borrowing is secured by way of hypothecation charge over present and future movable fixed secured against first pari passu hypothecation charge over current assets and fixed assets (excluding
assets of EPPL (except land and building), which shall rank pari passu with the charges created in favor land and building) of Enfrashare.
of existing creditors.
23.1.10 In September 2022, Enfrashare entered into a secured long term musharka financing facility and
During the year, EPPL has entered into another musharaka agreement amounting to Rs. 3,500,000 secured facility extended by Meezan Bank Limited for an amount up to Rs 3,000,000. Facility availed
under the ITERF of SBP. The borrowing is secured by way of hypothecation charge over plant and as at December 31, 2022 is of Rs. 3,000,000 (2021: Nil). The total tenor of loan is ten years from the
machinery of EPPL with 20% margin. date of disbursement of finance with 3 years grace period for principal portion. The financing facility is
secured against first pari passu hypothecation charge over current assets, receivables and fixed assets
23.1.5 In 2021, EPCL made a draw down of Rs. 400,000 under Diminishing Musharka agreement entered (excluding land and building) of Enfrashare.
with Bank of Khyber to finance its long term expenditure. The borrowing is secured by way of
hypothecation charge over present and future fixed assets of EPCL (excluding land and building), to the 23.1.11 In December 2022, Enfrashare entered into a secured long term musharaka agreement and secured
extent of Rs. 500,000 which shall rank pari passu with charges created in favor of existing creditors. facility extended by Faysal Bank Limited for an amount up to Rs. 1,000,000. Facility availed as at
December 31, 2022 is of Rs. 1,000,000 (2021: Nil). The total tenor of loan is ten years from the date of
23.1.6 On December 28, 2022, EPCL made a draw down of Rs. 8,750,000 under syndicate long term Islamic disbursement of finance with 3 years grace period for principal portion. The financing facility is secured
financing facility to finance buyback of sukuk bond (note 23.1.1). The borrowing is secured by way of against first pari passu hypothecation charge over current assets, receivables and fixed assets
hypothecation charge over present and future fixed assets of EPCL, to the extent of Rs. 11,666,667 (excluding land and building) of Enfrashare.
which shall rank pari passu with the charges created in favor of existing creditors.
23.2.1 In October 2020, Enfrashare entered into a secured long term financing facility extended by MCB Bank
23.1.7 On December 12, 2022, EPCL obtained loans amounting to Rs. 6,000,000 to finance its capital Limited for an amount up to Rs. 1,000,000. Facility availed as at December 31, 2022 is of Rs.
expenditure through Musharaka agreement entered with financial institutions for a period of 8 years 1,000,000 (2021: Rs. 1,000,000). The total tenor of loan is seven years from date of disbursement of
(including 3 years grace period). The borrowing is secured by the way of hypothecation charge of finance with two years grace period for principal portion. The financing facility is secured against first
present and future fixed assets of EPCL, to the extent of Rs. 7,833,333 which shall rank pari passu with hypothecation charge over current assets and fixed assets (excluding land and building) of Enfrashare.
the charges created in favor of existing creditors.

23.2.2 In March 2021, Enfrashare entered into a secured long term financing facility extended by Bank Alfalah In accordance with IFRS 9 Financial instruments, the Group has recognized these loans at their fair
Limited for an amount up to Rs. 1,000,000. Facility availed as at December 31, 2022 is of Rs. value and the differential markup as deferred government grant income, as mentioned in note 24 to the
1,000,000 (2021: Rs. 1,000,000). The total tenor of loan is seven years from the date of disbursement consolidated financial statements, which will be amortized and set off against finance cost over the
of finance with two years grace period for principal portion. The financing facility is secured against first period of the facilities.
pari passu hypothecation charge over current assets and fixed assets (excluding land and building) of
Enfrashare. 23.2.9 During the year, EFert made principal repayments of long-term finances to MCB Bank Limited, Allied
Bank Limited, National Bank of Pakistan and Deutsche Investitions-und Entwicklungsgesellschaft
23.2.3 In April 2021, Enfrashare entered into a secured long term financing facility extended by Habib Bank amounting to Rs. 2,666,667, Rs. 1,883,333, Rs. 500,000 and Rs. 721,083, respectively.
Limited for an amount up to Rs 1,700,000. Facility availed as at December 31, 2022 is of Rs. 1,700,000
(2021: Rs. 1,700,000). The total tenor of loan is seven years from the date of disbursement of finance 23.2.10 Further, during the year, after the approval of the SBP, term loans amounting to Rs. 407,198 were
with two years grace period for principal portion. The financing facility is secured against first pari passu converted to TERF loans.
hypothecation charge over current assets and fixed assets (excluding land and building) of Enfrashare.
23.2.11 All senior debts of Efert are secured by an equitable mortgage upon immovable property of EFert and
23.2.4 In December 2021, Enfrashare entered into a secured long term financing facility extended by Habib equitable charge over current and future operating assets excluding immovable property of EFert.
Bank Limited for an amount up to Rs. 2,000,000. Facility availed as at December 31, 2022 is of Rs.
2,000,000 (2021: Rs. 2,000,000). The total tenor of loan is seven years from the date of disbursement 23.2.12 The loans have been secured by way of the following:
of finance with two years grace period for principal portion. The financing facility is secured against first
pari passu hypothecation charge over current assets and moveable assets (excluding land and - First pari passu hypothecation charge over fixed asset (excluding land and building) of EETPL with
building) of Enfrashare. 25% margin (disbursement of loan made on ranking charges which will subsequently be upgraded
to Pari Passu within due course);
23.2.5 In August 2022, Enfrashare entered into a secured term finance agreement and secured facility
extended by MCB Bank Limited for an amount up to Rs. 2,000,000. Facility availed as at December - First Pari passu mortgage charge over immovable assets (including land and building) of EETPL with
31, 2022 is of Rs. 2,000,000 (2021: Nil). The total tenor of loan is ten years from the date of 25% margin (this security is condition subsequent, creation and perfection of this security shall be
disbursement of finance with 3 years grace period for principal portion. The financing facility is secured completed within due course);
against first pari passu hypothecation charge over current assets, receivables and fixed assets
(excluding land and building) of Enfrashare. - Assignment of EETPL's receivable / cashflows and any interests in the documents and contract
related to EETPL's operations; and
23.2.6 In December 2022, Enfrashare entered into a secured term finance facility and secured facility extended
by Habib Bank Limited for an amount up to Rs. 2,500,000. Facility availed as at December 31, 2022 is - Establishment and lien over debt payment account of EETPL.
of Rs 2,500,000 (2021: Nil). The total tenor of loan is ten years from the date of disbursement of finance
with 3 years grace period for principal portion. The financing facility is secured against first pari passu 23.2.13 In December 2021, Enfrashare entered into a secured syndicated long term musharka financing facility
hypothecation charge over current assets, receivables and fixed assets (excluding land and building) of and secured syndicated term finance facility extended by the Participants (i.e. MCB Bank Limited, The
Enfrashare. Bank of Punjab and Habib Metropolitan Bank Limited) for an amount up to Rs. 2,000,000 and Rs.
1,500,000 (2021: Rs. 2,000,000 and Rs. 1,500,000), respectively. Facilities availed as at December 31,
23.2.7 In December 2022, Enfrashare entered into a secured term finance agreement and secured facility 2022 are of Rs. 2,000,000 and Rs. 1,500,000 (2021: Rs. 2,000,000 and Rs. 1,500,000), respectively.
extended by United Bank Limited for an amount up to Rs. 1,500,000. Facility availed as at December The total tenor of loan is seven years from the date of disbursement of finance with two years grace
31, 2022 is of Rs. 1,500,000 (2021: Nil). The total tenor of loan is ten years from the date of period for principal portion. The financing facility is secured against first pari passu hypothecation
disbursement of finance with 3 years grace period for principal portion. The financing facility is secured charge over current assets, receivables and fixed assets (excluding land and building) of Enfrashare.
against first pari passu hypothecation charge over current assets, receivables and fixed assets
(excluding land and building) of Enfrashare. 23.3.1 In 2018, EPCL had entered into a financing agreement with IFC for a total of USD 35,000, the draw
down of which was made in December 2019. This is secured by way of hypothecation charge over
23.2.8 During the year, EFert acquired long term borrowings from Habib Bank Limited and MCB Bank Limited present and future fixed assets of EPCL (excluding land and building) to the extent of USD 43,750
amounting to Rs. 744,186 and Rs. 249,807 respectively under ""Temporary Economic Refinance which shall rank pari passu with the charges created in favour of existing creditors. The long term facility
Facility"" (TERF) introduced by SBP in 2020. These borrowings have the same charge as the agreement is subject to interest rate benchmark reforms, which are yet to transition.
borrowings from other Senior Lenders on operating assets. Mark-up is chargeable at concessional
rates ranging from 1.50% to 2.00% per annum and is payable in quarterly or semi-annual installments 23.3.2 In 2015, EETPL entered into a Common Terms Agreement (CTA) and financing agreements with Asian
starting from January 2023. Fair value adjustment arising on account of acquisition of these loans at Development Bank (ADB), International Finance Corporation (IFC), Askari Bank Limited and MCB Bank
below market rates has been recognised in the consolidated statement of profit or loss. Limited as arrangers and ADB, IFC, Allied Bank Limited (ABL), MCB and Pak Brunei Investment
Company Limited (PBICL) as lenders. In 2021, EETPL entered into a new financing arrangement with
ABL and prepaid the lenders of EETPL under the CTA through single payment.

-------------Rupees---------------
23.3.3 EPTL had entered into a USD Facility Agreement on December 21, 2015 with three commercial banks
24. government grant
namely China Development Bank Corporation, China Construction Bank Corporation and Industrial
Balance as at January 1 1,263,327 1,326,638
and Commercial Bank of China Limited for an aggregate amount of USD 621,000 for a period of 14 Add: Grant recognized on loan at below market interest rate 973,820 -
years. The facility is secured primarily through first ranking hypothecation charge over the project assets Less: Released to the consolidated statement of profit or loss 411,667 63,311
of EPTL. Further, the commitment of the shareholders of EPTL is same as more fully explained in note 1,825,480 1,263,327
23.1.8. As at December 31, 2022, the unutilised borrowings amount to USD 155,250 (2021: USD
100,915). Less: Current portion (353,201) (183,624)
1,472,279 1,079,703
23.3.4 On March 5, 2021, the Financial Conduct Authority (FCA) announced the dates on which the panel
bank submissions for all LIBOR settings will cease, after which LIBOR rates will no longer be available. 25. lease liabilities
The FCA confirmed that all LIBOR settings will cease to be provided by any administrator immediately
Balance at beginning of the year 59,274,424 55,530,667
after December 31, 2021 for 1-week and 2-month USD settings. This will not impact the Group's
foreign borrowings since the 6-month LIBOR is applicable on foreign currency borrowings which will be Additions in lease 4,814,223 3,869,212
discontinued after June 30, 2023. Add: Exchange loss 13,969,590 4,899,899
Add: Finance cost 5,931,308 4,582,127
23.3.5 These primarily represent payments made to China Export and Credit Insurance Bank (Sinosure), in Less: Lease rentals paid (12,560,002) (9,583,276)
connection with insurance cover obtained over financing arrangements relating to Chinese lenders, and Less: Rent concession on lease liability (12,729) (24,205)
payments to various financial institutions in respect of transaction and related cost for loan
arrangements. Transaction costs have been adjusted against related borrowings and is being Total lease liabilities 71,416,814 59,274,424
amortized over the term of the respective borrowings.
Less: Current portion shown under current liabilities (9,046,896) (6,111,288)
Balance at the end of the year 62,369,918 53,163,136
23.4 In view of the substance of the transactions, the sale and repurchase of assets under long term finance
have not been recorded in these consolidated financial statements.
25.1 This mainly represents EETPL's lease liability amounting to Rs. 54,833,722 (2021: Rs. 46,928,886). The
23.5 Following are the changes in long term borrowings for which cash flows have been classified as remaining term of the lease is 7 years and 3 months and EETPL's weighted average incremental
financing activities in the consolidated statement of cash flows: borrowing rate is 8.29% per annum.
2022 2021 2022 2021
-------------Rupees-------------- -------------Rupees---------------
26. deferred liabilities
Balance as at January 164,191,574 157,918,637 Retirement and other service benefits obligations 572,150 516,236
Deferred incentive revenue (note 26.1) 534,814 918,817
Add: Deferred liability on FSRU (note 26.2) 2,606,555 1,854,129
Borrowings availed during the year 26,773,322 21,234,460 Provision for dismantling and restoration cost (note 26.3) 497,490 293,606
Exchange loss 27,167,532 9,997,743 4,211,009 3,582,788
Amortization of transaction cost 885,074 1,015,851
Less: Less: Current portion shown under current liabilities (577,116) (736,953)
Repayment of borrowings (33,318,309) (25,863,034) 3,633,893 2,845,835
Management fee paid - (42,818)
Transaction costs - (69,265) 26.1 This primarily includes deferred incentive revenue of Rs. 488,755 (2021: Rs. 918,817) which has been
185,699,193 164,191,574 recorded in respect of the following agreements entered into by Enfrashare with its customers for
construction, maintenance and operation of telecommunication infrastructure and allied equipment,
Less: Current portion shown under current liabilities (27,699,919) (23,110,031)
provision of energy solutions and energy management services whereby Enfrashare provided a discount:
Less: Government grant (note 24) (1,825,480) (1,263,327)
Balance as at December 31 156,173,794 139,818,216 - in respect of service fee charged to it for an initial period of three years from the respective site
commencement date. The related discount was provided against discounted cash consideration
under the asset sale and purchase agreements. Present value of the discount amounted to Rs.
696,000. The said amount has been recognized as part of the total consideration against assets
acquired under the asset sale and purchase agreements and a corresponding deferred incentive
revenue has been recognized in this respect which is amortized over a three years period from the
site commencement date on the basis of monthly service fee accrued under the agreement.

- against total amount of consideration to be charged to the customers for provision of energy Aggrieved by the Judgment, EFert and EPCL filed review petitions before the SCP on various grounds,
solutions and energy management services. Present value of the discount amounted to Rs. 475,000. which were dismissed by the SCP on November 02, 2020, (“Review Decision”). However, the Review
The said amount has been recognized as part of the total consideration against assets acquired Decision noted that the Government of Pakistan is agreeable to recover the unpaid arrears in 48
under the asset sale and purchase agreements and a corresponding deferred incentive revenue has monthly installments instead of 24 monthly installments provided the time period for the projects was
been recognized in this respect which is amortized over a period of four and a half years on a extended to 12 months from 6 months; and (ii) upheld the validity of Section 8(2) of the Act. The SCP
systematic basis after accounting for the project completion date. protected the rights of the Industrial Sector (excluding Fertilizer Fuel Stock) to approach the appropriate
fora for enforcement of the exemption provided under the proviso to Section 8(2) of the 2015 Act.
26.2 Represents excess of billing over operating lease income in respect of Elengy Terminal. Income is
recognized over a straight line basis. EPCL and EFert have also filed suits before the High Court of Sindh (“HCS”) against collection of GIDC
on the grounds that factual determination of the GIDC passed-on to the customers is to be carried out.
26.3 Includes provision of Rs. 476,245 (2021: Rs. 293,606) recognized for cost of dismantling of The HCS granted interim stay to EPCL and EFert restraining the impleaded gas companies from taking
infrastructure and allied equipment for tenanted sites acquired by Enfrashare from Pakistan Mobile coercive action against EPCL and EFert for non-payment of GIDC installments till the finalization of the
Communications Limited (PMCL) and Deodar under sale and purchase agreement. The provision has matter.
been discounted at a real discount rate of 0.91% (2021: 1.08%) per annum.
Further, against the GIDC instalment invoice received from Sui Northern Gas Pipelines Limited (SNGPL)
2022 2021 to EFert on concessionary gas supplied under the fixed price Gas Sale and Purchase Agreement dated
-------------Rupees-------------- April 11, 2007 (“GSPA”), EFert approached the HCS to challenge this imposition. EFert has obtained a
27. long-term provisions stay order in its favour and the HCS has restrained SNGPL from taking any coercive action against
EFert on collecting GIDC on feed stock gas supplied under the GSPA. EFert's management has made
Provision for Gas Infrastructure Development
Cess (GIDC) (note 27.1) 27,939,393 26,165,260 an assessment (as confirmed by the legal advisor) that there are reasonable chances of a favourable
Provision for gas price revision (note 27.2) 517,392 517,392 outcome in relation to the legal proceedings filed against SNGPL for feed gas supplied under the GSPA.
28,456,785 26,682,652 Hence no provision on account of GIDC has been recorded by EFert in respect of feed gas received
under the GSPA.
Less: Current portion (25,503,815) (18,510,399)
2,952,970 8,172,253 The Institute of Chartered Accountants of Pakistan (ICAP) released financial reporting guidance on the
"Accounting of GIDC" via Circular No. 1/2021 dated January 19, 2021 (the Circular) which discusses
key accounting considerations for gas consumer companies. Keeping in view the financial reporting
27.1 The Honorable Supreme Court of Pakistan (“SCP”) through its judgment dated August 13, 2020 guidance of ICAP and giving due consideration to the latest available information and the expected
(“Judgment”) declared that the levy imposed under the Gas Infrastructure Development Cess (“GIDC”) timing of the settlement (i.e. in 48 monthly instalment commencing from August 2020, as referred to in
Act, 2015 (“the Act”) is valid and in accordance with the provisions of the Constitution of Pakistan 1973 the aforementioned decision on the review petition by the SCP), the Group has remeasured its
("the Constitution"). The SCP issued the following directions: previously undiscounted provision at its present value using the risk free rate to incorporate the effect
of the time value of money arising from the expected settlement based on an instalment plan and
- It restrained the Federal Government from charging further GIDC until such time that the GIDC accordingly, recognized remeasurement gain amounting to Rs. 2,904,978 in 2020. During the year, the
already collected and accrued (but not yet collected), is expended on projects listed under the Act; amount has been unwinded and resulted in remeasurement losses of Rs. 1,102,678 (2021: Rs.
1,401,519).
- As all industrial and commercial entities which consume gas for their business activities pass on the
burden to their customers, therefore, GIDC that has become due up to July 31, 2020, and has not 27.2 In 2017, EPCL had filed suits in the HCS, against the increase in tariff of natural gas sold to industries
been recovered so far, shall be recovered by the gas companies responsible under the Act to recover and captive power plants notified by Oil and Gas Regularity Authority (OGRA) vide SRO no.(1)/2016
from their consumers in twenty-four equal monthly installments, without the component of Late dated December 30, 2016, whereby EPCL cited the increase as illegal and unconstitutional. The HCS
Payment Surcharge (“LPS”); and granted an interim order in favour of EPCL which is still operational. However, EPCL has recognized a
provision for the period from December 2017 to September 2018.
- In case, no work is carried out on the gas infrastructure pipelines in the manner and / or time
specified in the Judgment, the purpose of levying GIDC shall be deemed to have been frustrated and
the Act would become completely in-operational and considered dead for all intents and purposes.
Pursuant to the Judgement, the gas suppliers began invoicing the GIDC instalments for recovery with
effect from August 01, 2020.

-------------Rupees--------------
28. trade and other payables 28.4 Includes accruals recorded in respect of the following related parties:
Creditors 11,140,873 14,031,323 2022 2021
Accrued liabilities (notes 28.1 to 28.5) 58,812,758 39,074,875 -------------Rupees--------------
Provision against tax contingency of EVTL
(notes 7.1.1, 7.3 and 28.6) 682,028 972,297
Advances from customers (note 28.7) 16,347,911 6,248,748 Engro Foundation - 150,000
Contractors' / suppliers' deposits and retention Sindh Engro Coal Mining Company Limited 7,561,786 4,231,636
money (note 28.8) 325,192 278,131 Reon Energy Limited 21,587 -
Workers' welfare fund 1,344,093 1,377,860 The Dawood Foundation 240 -
Workers' profits participation fund 2,557,527 1,533,031 Thar Power Company Limited 98,481 -
Sales tax payable 203,999 63,840 7,682,094 4,381,636
Payable to retirement benefit funds 308,732 278,053
Withholding tax payable 464,794 749,039
Payable to: 28.5 During the year, EFERT received a letter from one of its gas suppliers which indicated that the pricing
- Thar Power Company Limited 210,224 269,527 of gas supplied to EFERT from the aforementioned gas field would be higher of the applicable
- Empiric AI (Private) Limited - 4,112 Petroleum Policy or the gas price notified by the Oil and Gas Regulatory Authority (“OGRA”) for the
- Dawood Hercules Corporation Limited - 284,065 fertilizer sector and such charge shall be applicable from the date of execution of the Gas Sale and
- FrieslandCampina Engro Pakistan Limited 20,905 - Purchase Agreement (GSPA).
- FrieslandCampina Pakistan Holdings B.V. 932,367 734,033
- Sindh Engro Coal Mining Company Limited 31,327,765 28,312,314 In this regard, EFERT has submitted a formal response to the gas supplier. Without prejudice to the
- Engro Foundation 175,954 - foregoing and any admission of liability, the Group has on prudent basis, recorded a provision
- The Dawood Foundation 17,668 -
amounting to Rs. 2,380,450 (2021: Nil) in these consolidated financial statements.
Others (note 28.9) 616,999 759,211
125,775,973 95,232,315
2022 2021
-------------Rupees--------------
28.1 This includes accrual in respect of gas charges amounting to Rs. 605,671 (2021: Rs. 602,625).
28.6 The movement in provision is as follows:
28.2 On June 4, 2021, the HCS through its judgment upheld the Sindh Development and Maintenance of
Infrastructure Cess Act, 2017 (the Cess) promulgated retrospectively with effect from July 1, 1994 as Balance at the beginning of the year 972,297 992,754
valid and declaring it within the competence of provincial legislature. EFert and EPCL filed a petition
Provision adjustment in respect of tax contingency (note 7.1) (290,269) (20,457)
against the judgment before the Honorable Supreme Court of Pakistan (SCP) challenging the HCS
682,028 972,297
judgement. In September 2021, the SCP suspended the Judgement of HCS along with the recovery
of Cess. Management is confident that ultimate outcome of the case will come in its favor; however, on
prudence basis, has recognized a provision amounting to Rs. 4,869,100 (2021: Rs. 3,668,213) of the
28.7 This represents advances received by the Group from customers and distributors for goods to be
Cess in these consolidated financial statements.
delivered.
28.3 On June 10, 2021, EFert filed a Suit before the HCS in which it prayed that Sui Northern Gas Pipelines
28.8 This includes deposits amounting to Rs. 307,664 (2021: Rs. 269,452) which have been kept in
Limited (SNGPL) be directed to supply the contracted / committed volume of feed gas at
separate bank accounts. This also includes deposits amounting to Rs. 7,400 (2021: Rs. 4,900) which
concessionary pricing under the Gas Sale and Purchase Agreement (GSPA) and in accordance with the
are fully utilized in business in accordance with the requirements of written agreements and in terms of
Fertilizer Policy 2001, Instructions to Bidders and various Economic Coordination Committee
section 217 of the Companies Act, 2017.
decisions.
The HCS was pleased to grant an ad interim stay vide its order dated June 21, 2021, directing the
parties to maintain status quo with regard to disconnection of gas supply and pricing. EFert, without
prejudice to the pending Suit and any admission of liability, has on prudent basis recorded a provision
of Rs. 6,706,128 (2021: Rs. 2,494,496) in these consolidated financial statements.

28.9 Includes liability towards Long Term Incentive Plan (LTIP) amounting to Rs. 133,993 (2021: Nil). During 31.3 This represents export refinance facility obtained by EPCL and EEAP carrying mark-up at the rate of 3%
the year, the Board of Directors of the Holding Company approved LTIP for granting of cash-settled on rollover basis for six months. This facility is secured by floating charge over stocks and book debts
phantom shares to certain executive employees. Under the LTIP, the actual amount of phantom shares of EPCL and EEAP.
that may vest at exercise price of nil ranges from 0% to 121% of the awards, depending on the
outcomes of prescribed service and performance conditions over a three-year period. 32. dividend payable
Includes unclaimed dividend amounting to Rs. 240,325 (2021: Rs. 225,932) outstanding for more than
2022 2021
-------------Rupees-------------- 3 years from the date of declaration. Such unclaimed dividend is payable to the Federal Government
29. contract liabilities as per the Companies Act, 2017 (the Act), subject to fulfilment / clarification on certain pre-conditions
specified in the Act.
Contract liability 12,980,370 1,024,361
33. contingencies and commitments
29.1 Contract liability pertaining to the year 2021 represented unrecognized revenue in EPQL relating to contingencies
‘Monthly Energy Shortfall’ which CPPA-G is required to pay in the event net electrical output dispatched 33.1 In accordance with section 4C 'Super tax on high earning persons' introduced in the Income Tax
is lower than minimum monthly energy in accordance with Section 9.6 of the PPA. During the year, Ordinance, 2001 (the Ordinance) through the Finance Act, 2022, super tax at ten percent has been
EPQL has adjusted the contract liability against the related receivable. imposed on the specified sectors (including the fertilizer and chemical sector) in case the income
exceeds Rs. 300,000 for the year ended December 31, 2021 (tax year 2022) while for other sectors
29.2 Contract liability as at December 31, 2022 includes an amount of Rs. 12,964,194 relating to EPTL as super tax was levied at four percent. The Group filed a petition against the imposition of super tax
explained in notes 34.2.1 and 35.1.4. before the Sindh High Court (SHC). The SHC in its judgement dated December 22, 2022, declared that
2022 2021 “the super tax levy shall only be applicable from the tax year 2023” and the imposition of higher rate on
-------------Rupees-------------- the specified sectors as discriminatory. The Group’s management has recorded provision of super tax
30. accrued interest / mark-up for the year ended December 31, 2021 (tax year 2022), at the rate of four percent amounting to Rs.
Accrued interest / mark-up on: 2,604,907 in these consolidated financial statements (note 42.1) on account of prudence and, based
- long term borrowings 2,751,430 877,720 on professional advice, considers that the chances of additional super tax levy of six percent amounting
- short term borrowings 13,276 488,777 to Rs. 2,738,141 are remote and therefore no provision is recorded thereagainst in these consolidated
2,764,706 1,366,497 financial statements.
31. short-term borrowings 33.2 The Holding Company

Running finances utilized under mark-up 33.2.1 In the year 2017, FCEPL received an order from the Competition Commission of Pakistan, imposing a
arrangements (note 31.1) 30,260,600 14,370,100 penalty of Rs. 62,293 in respect of FCEPL’s marketing activities relating to one of its products. FCEPL
Shariah compliant short term finance (note 31.2) 2,250,000 3,000,000
Export refinance facility (note 31.3) 474,360 5,900,214 has filed an appeal against the aforementioned order. As per the terms of the Share Purchase
32,984,960 23,270,314 Agreement with FrieslandCampina Pakistan Holding B.V. (FCP), the Holding Company is required to
reimburse 51% of the amount together with all reasonable cost and expenses to FCP in case any such
penalty materializes. The Holding Company, based on the opinion of the legal advisor, is confident of a
31.1 The short-term running finances available to the Group from various banks under mark-up favourable outcome of the appeal, and accordingly, no provision has been recognized in these
arrangements amount to Rs. 44,155,000 (2021: Rs. 50,027,000). The rates of mark-up on these consolidated financial statements in this respect.
finances are KIBOR plus spread ranging from 0.0% to 13.1% (2021: 0.0% to 1.5%) per annum. The
aggregate running finances are secured by way of hypothecation of ranking floating charge over 33.2.2 In the year 2016, the Holding Company entered into a Share Purchase Agreement (SPA) with FCP for
present and future loans, advances, receivables, stocks, book debts and other current assets and the sale of 47.1% of the total issued shares of FCEPL. In accordance with the terms of the SPA, the
pledge over shares. Holding Company is required to pay to FCP, an amount equivalent to 47.1% of any tax liability (as
defined in the SPA) together with all reasonable costs and expenses incurred, in case any tax
31.2 EPTL has entered into a Musharaka agreement with Meezan Bank Limited as Investment Agent and contingency materializes. The Holding Company, based on the opinion of FCEPL’s tax and legal
issued Sukuks of face value of Rs. 3,000,000 (2021: Rs. 3,000,000) for a period of five years with a call advisors, is confident of favourable outcomes in respect of various tax matters being contested by
option exercisable towards the end of every year. These Sukuks are issued to cater the working capital FCEPL, and accordingly no provision has been recognized in these consolidated financial statements
requirements of EPTL and carry profit at the rate of 3 Months KIBOR plus 1.1% per annum, payable in this respect.
quarterly. The Sukuks are secured by way of first charge, ranking pari passu, over the project assets of
EPTL.

33.2.3 On March 28, 2022, and as supplemented from time-to-time Allied Bank Limited and Faysal Bank In respect of sales tax audits, during 2021, the tax department only issued a Show Cause Notice (SCN)
Limited have committed to provide Payment Service Reserve Account (PSRA) SBLCs amounting to US for TY 2017. EFert filed Constitutional Petitions before the High Court of Sindh (HCS) challenging the
Dollars 23,316 and Rs. 1,029,044 respectively on behalf of EEL, a wholly owned subsidiary, for its SCN issued for TY 2017 as well as the audit selection notices for TY 2017, 2018 and 2019. On
PSRA commitments related to EPTL in favour of their project lenders. These SBLCs are partially December 13, 2021, the HCS granted ad-interim orders in favour of EFert for all three tax years.
secured by pledging 53,000,000, 58,000,000 and 33,500,000 shares of EFert, EPCL and FCEPL
respectively. EFert's management considers, based on the legal / tax advisor’s opinion, that it has reasonable
grounds to defend the case and therefore will not be exposed to any additional liability in this respect.
33.2.4 Following are the details of securities pledged by the Holding Company:
33.3.2 In 2018, the tax department [i.e. Large Taxpayers Unit (LTU)] raised an order for the period June 2016
- Standby Letters of Credit (Equity SBLC) have been provided by EEL, a wholly owned subsidiary, to July 2017 with a demand of Rs.1,006,000 mainly on account of further sales tax to be charged on
through National Bank of Pakistan amounting to US Dollars 5,660 (2021: US Dollars 8,635) for its fertilizers sales to unregistered persons. EFert filed an appeal before the CIR(A) who disposed off the
equity commitments related to the SECMC, its associated company in favour of the Intercreditor appeal in favour of the tax department. Thereafter, EFert filed an appeal before the ATIR and it also
Agent (Habib Bank Limited) and the Project Company (i.e. SECMC). Equity SBLC will expire on earlier decided the same in favour of the tax department. EFert challenged the ATIR Order, to the extent of its
of (i) October 31, 2023; or (ii) fulfilment of sponsor obligations under Sponsor Support Agreements. ruling in relation to exemption from further sales tax, before the HCS by filing Sales Tax Reference
This has been secured by the Holding Company by pledging Treasury Bills. Application. On October 11, 2021, the HCS granted an ad-interim order restraining the tax department
from taking coercive action against EFert in respect of the recovery of the impugned demand. EFert's
- Standby Letter of Credit (Put Option SBLC) has been provided by EEL, a wholly owned subsidiary management believes that the chances of ultimate success are good, hence, no provision has been
company, through Allied Bank Limited amounting to US Dollars 21,070 (2021: US Dollars 21,070) in made in this respect in these consolidated financial statements.
favour of the Put Option Fronting Bank (Habib Bank Limited). The Put Option SBLC has been
furnished to meet sponsor obligations under Sponsor Support Agreement (Put Option SSA) and 33.3.3 In 2017, the High Court of Islamabad through its order dated June 8, 2017 held that the income derived
expires on earlier of (i) January 31, 2029; or (ii) fulfilment of sponsor obligations pursuant to Put by the Contractor from its contract with EFert is subject to tax as per Article 5(4) of Double Taxation
Option SSA. This guarantee was secured by pledging Holding Company's shares of EFert and Treaty between Pakistan and the Netherlands thus confirming the demand raised in the respective
FCEPL of quantities 97,000,000 and 25,000,000 respectively. orders aggregating to Rs. 1,178,391. In respect thereof, the Contractor preferred an appeal in the
Supreme Court of Pakistan (SCP). In 2019, the SCP decided the case on ex-parte basis against the
33.2.5 EETPL has issued SBLCs amounting to US Dollars 22,500 (2021: US Dollars 22,500). This has been contractor. In 2021, the SCP accepted the review application for the case restoration. During the year,
secured by the Holding Company by pledging Treasury Bills. the case has been heard announcing the appeal in favour of the Contractor. Detailed judgement is
awaited. No provision has been made by the Group in these consolidated financial statements.
33.3 Engro Fertilizers Limited and its subsidiary company
33.3.4 In 2015, EFert received a sales tax order from the tax department for the tax periods January 01, 2013
33.3.1 In 2021, the income tax department [i.e. Large Taxpayers Unit (LTU)] initiated income tax audits of EFert to December 31, 2013 pertaining to discharge of output tax liability, on assumed production of urea
u/s 177 of the Ordinance for the Tax Year (TY) 2015, 2016, 2018 and 2020 and sales tax audits u/s 25 amounting to Rs. 402,875 and on presumption that output tax liability is not being discharged by EFert
of the Sales Tax Act, 1990 for TY 2017, 2018 and 2019 in accordance with the sectoral audit directive on advances received from dealers amounting to Rs. 1,844,075. EFert filed an appeal thereagainst with
issued by FBR. As such, EFert received audit selection notices for all these years. the CIR(A) which decided the matters in favour of EFert. The department thereafter challenged the
decision of the CIR(A) with the ATIR, which is pending to be heard. No provision has been made by the
In respect of income tax audits, the tax department completed the audits and issued amendment Group in this respect in these consolidated financial statements.
orders for all tax years creating an aggregate demand of Rs. 18,566,262. Disallowances raised in the
orders mainly included credit entries in bank statements treated as revenue / suppressed sales, 33.3.5 EFert filed a constitutional petition in the HCS against the Ministry of Petroleum and Natural Resources
inadmissibility of expenses, proration of expenses to exempt income and chargeability of WWF and (MPNR), Ministry of Industries and Production (MIP) and Sui Northern Gas Pipeline Company Limited
Super Tax on the revised taxable income. EFert had filed an appeal before the Commissioner Inland (SNGPL) for continuous supply of 100 mmscfd gas per day to EFert's new plant (Enven) and to prohibit
Revenue (Appeals) (CIR(A)) against all amendment orders. During the year, the decision of the CIR(A) from suspending, discontinuing or curtailing the aforementioned supply. Through its order dated
has been received for all these years where the legal objections inter alia taken up on the selection / October 18, 2011, the HCS ordered that SNGPL should supply 100 mmscfd of gas per day to the
conduct of audit in this manner have been upheld. In these orders favorable decision has been made EFert’s new plant. However, five petitions have been filed in the SCP against the aforementioned order
on majority of the matters while maintaining inadmissibility of certain expenses and disallowance of of the HCS by SNGPL, MPNR, Agritech Limited, Pak Arab Fertilizers and Kohinoor Mills Limited
WPPF aggregating to Rs. 581,898. EFert has filed an appeal before Appellate Tribunal Inland Revenue alongwith twenty one other companies (mainly engaged in textile business). The aforementioned
(ATIR) against the unfavorable decision of CIR(A). petitions are pending for further hearing. EFert’s management, as confirmed by the legal advisor,
considers the chances of these petitions being allowed to be remote.
Subsequently, the tax department has issued appeal effect orders based on favorable CIR(A)’s decision
and has additionally maintained disallowance of amortization of intangibles aggregating to Rs. 194,148
as well as WPPF in the tax year 2018. Appeal before CIR(A) has been filed against these orders.

Further, EFert upon continual curtailment of gas after the aforementioned decision of the HCS has filed 33.4.1 The Sindh Finance Act, 1994, prescribed the imposition of an infrastructure fee at the rate of 0.5% of
an application in respect of Contempt of Court under Article 199 and 204 of the Constitution of the C&F value of all goods entering or leaving the province of Sindh via sea or air. The law for
Pakistan. EFert, in the aforementioned application has submitted that SNGPL and MPNR have failed to infrastructure fee thereafter was last amended through the Sindh Finance Act, 2014 according to which
restore full supply of gas to the EFert’s plant despite the judgment of the HCS in EFert’s favor. A show infrastructure fee will range from 0.9% to 0.95% of the total value of goods as assessed by the Custom
cause notice has also been issued against MPNR and SNGPL dated December 31, 2011 by the HCS. Authorities plus one paisa per kilometer against various slab of net weight of goods.
The application is pending for hearing and no orders have yet been passed in this regard.
On July 11, 2014, EETPL filed a petition against the aforementioned levy before HCS where it is
33.3.6 In 2013, EFert, along with other fertilizer companies, received a show cause notice from the currently pending. Earlier, HCS through an interim order on November 11, 2014 on petitions filed by
Competition Commission of Pakistan (CCP) for initiating action under the Competition Act, 2010 (2010 others, directed companies to clear the goods on paying 50% of the amount of levy and furnishing
Act) in relation to the alleged unreasonable increase in fertilizer prices. EFert has responded in detail that bank guarantee / security for the balance amount.
factors resulting in such increase were mainly due to imposition of infrastructure cess, sales tax and gas
curtailment. The CCP issued an order in March 2013, whereby it held that EFert has a dominant On June 4, 2021, the HCS through its judgement upheld the Sindh Development and Maintenance of
position in the urea market and that it has abused the same by unreasonable increases in urea prices Infrastructure Cess Act, 2017 ("the Cess") promulgated retrospectively with effect from July 01, 1994
during the period December 2010 to December 2011. The CCP also held another major fertilizer as valid and declaring it within the competence of provincial legislature. However, EETPL has paid 50%
company to be responsible for abusing its dominant position. Moreover, the CCP imposed a penalty of of the above levied cess and has provided bank guarantee amounting to Rs. 17,000 (2021: Rs. 17,000)
Rs. 3,140,000 and Rs. 5,500,000 on the EFert and the other fertilizer company, respectively. An appeal in favour of the Custom Authorities to comply with interim orders of the Court dated November 14,
has been filed before the Competition Appellate Tribunal (CAT) and a writ has been filed in the HCS 2014 for the above levied cess. EETPL has filed a petition against the judgement dated June 04, 2021
wherein stay has been granted in favour of the EFert restraining CCP and Federation of Pakistan (i.e. before SCP challenging the judgement dated June 04, 2021 before SCP. The SCP in its interim order
Respondents) from taking any coercive action. dated September 01, 2021 decided till further orders, operations of the impugned judgement of the
HCS dated June 04, 2021 and the recovery of the levy shall remain suspended and that EETPL will
In case of the other fertilizer company, the CAT has transferred the case back to the CCP for continue to comply with the interim order of HCS dated November 14, 2014. EETPL based on the
reassessment. EFert has also challenged the composition of the CAT before HCS and has secured an merits of the case and as per the opinion of its legal advisor, EETPL expects a favourable outcome on
interim order in its favour whereby the CAT is restrained from passing any final order against EFert the matter and accordingly no provision has been made on remaining 50% of the levy in these
during the pendency of the petition. EFert's management believes that the chances of ultimate success consolidated financial statements.
are very good, as confirmed by legal advisor, hence, no provision has been made in this respect in
these consolidated financial statements. 33.4.2 EETPL in connection with the import of Floating Storage and Regasification Unit (FSRU) received a
demand from Customs Authority amounting to Rs. 1,530,494 contending that the import of FSRU
33.3.7 All Pakistan Textile Processing Mills Association (APTMA), Agritech Limited (Agritech), Shan Dying & attracts payment of advance income tax. EETPL is of the view that the EETPL's profits and gains were
Printing Industries (Private) Limited and twenty seven others have each contended, through separate exempt from income tax for 5 years from the date of commercial operations. EETPL in response to the
proceedings filed before the Lahore High Court that the supply to EFert’s new plant is premised on the above demand filed an appeal based on which the Chief Commissioner Inland Revenue (CCIR) through
output from Qadirpur gas field exceeding 500 mmscfd by 100 mmscfd and, therefore, the Gas Sale its order dated August 22, 2016 remanded the case back to the concerned commissioner, which again
and Purchase Agreement (GSA) dated April 11, 2007 between EFert and SNGPL be declared void ab rejected the request for exemption against which EETPL filed an appeal before CCIR. In 2020, CCIR
initio because the output of Qadirpur gas field has infact decreased. Agritech has additionally alleged decided appeal against EETPL vide order dated July 24, 2020 against which EETPL filed an appeal
discrimination in that it is receiving less gas than the other fertilizer companies on the SNGPL system. before the HCS on August 6, 2020 and has obtained stay in this regard. EETPL based on the merits
EFert has out rightly rejected these contentions, and is of the view that it has a strong case for the of the case and as per the opinion of its legal advisor, expects a favorable outcome on the matter and
reasons that (i) 100 mmscfd gas has been allocated to EFert through a transparent international accordingly, no provision has been made in this respect in these consolidated financial statements.
competitive bidding process held by the Government of Pakistan, and upon payment of valuable
license fee; (ii) GSA guarantees uninterrupted supply of gas to the new plant, with right to first 100 33.4.3 In accordance with the clause 18.1 of the Time Charter Party and LNG Storage and Regasification
mmcfd gas production from the Qadirpur gas field; and (iii) both EFert and the Qadirpur gas field are Agreement (TCP) except for the bunkers present onboard the FSRU upon delivery at the
located in Sindh. Also neither the gas allocation by the Government of Pakistan nor the GSA predicates commencement of the term of TCP, EETPL is responsible for the bunkers used onboard the FSRU
the gas supply from Qadirpur gas field producing 100 mmscfd over 500 mmscfd. No orders have been during the term of TCP. EETPL is also required to ensure that at the end of the term of TCP, the FSRU
passed in this regard and the petition has also been adjourned sine die given that similar matter is contains bunkers in the same quantities that were present at the time of delivery at the commencement
pending in SCP. However, EFert’s management, as confirmed by the legal advisor, considers chances of the Term. In 2021, the FSRU was substituted for the purpose of dry docking and thereafter
of petitions being allowed to be remote. redelivered however no intimation was given to EETPL by master of ship under clause 18.3 for bunkers
and LNG remaining on board nor any amounts have been claimed by Excelerate Energy Middle East,
33.4 Elengy Terminal Pakistan Limited and its subsidiary company LLC (EE) so far during the term in this respect. Due to lack of information from EE and / or master of
the ship and interpretation of relevant clauses of TCP, EETPL reassessed its position and is of the view
that the amount of liability cannot be measured with sufficient reliability at this stage.

33.5 Engro Energy Limited and its subsidiary companies 33.8.3 In 2019, Engro Peroxide (Private) Limited, a subsidiary of EPCL, entered into a contract with Chematur
Engineering AB to establish a plant of Hydrogen Peroxide at a consideration of EUR 6,993. During the
33.5.1 On February 11, 2021, EPQL and CPPA signed Master Agreement, wherein it was agreed that the year, there was an increase in the project cost by EUR 662 due to increase in price of catalyst. As at
dispute related to alleged savings will be resolved through arbitration. In accordance with the Master December 31, 2022, outstanding commitment for civil works and equipment procurement amounts to
Agreement, EPQL and GoP signed the Arbitration Submission Agreement (ASA) on June 15, 2022. EUR 1,331 (2021: EUR 367).
Subsequently, the arbitrators have been appointed as per ASA. EPQL's management believes that
there are strong grounds that the matter will ultimately be decided in favour of the EPQL. 33.8.4 In 2021, Engro Peroxide (Private) Limited, a subsidiary of EPCL, entered into a contract with China
National Air Separation Engineering Company Limited for design, procurement and engineering
33.6 Engro Eximp Agriproducts (Private) Limited (EEAP) services for Hydrogen Peroxide Plant at a consideration of CNY 104,400. As at December 31, 2022,
outstanding commitment for civil works and equipment procurement amounts to CNY 70,592 (2021:
33.6.1 In 2017, the tax department had raised a demand of sales tax of Rs. 250,000 for not charging sales tax CNY 104,400).
on rice husk / rice bran for the tax year 2015. There was an error in the order as the department had
treated all the by-products falling under the category of rice bran or rice hull / husk; though in reality the 33.8.5 In 2021, Engro Peroxide (Private) Limited, a subsidiary of EPCL, entered into a contract with Etimaad
proportion of these two products among by-products is comparatively low while rice bran was Engineering (Private) Limited for construction and installation services in respect of Hydrogen Peroxide
admittedly exempt during that period. As the value of rice husk was wrongly taken, the CIR(A) has Plant at a consideration of Rs. 927,000. As at December 31, 2022, outstanding commitment amounts
vacated the order and demand but upheld the legal position regarding charging of sales tax on rice to Rs. 472,174 (2021: Rs. 741,600).
husk. EEAP has gone in appeal as it is of the view that the department is not treating husk correctly.
Currently, the matter is pending before the Appellate Tribunal and based on the opinion of its tax 33.8.6 In May 2022, Engro Peroxide (Private) Limited, a subsidiary of EPCL, entered into a contract with Suria
consultant, EEAP's management is confident of a favorable outcome of the appeal, and, accordingly Engineering (Private) Limited for purchase of Hydrogen Peroxide Steel Structure in respect of the
sales tax recoverable has not been reduced by the effect of aforementioned order. manufacturing plant for a consideration of Rs. 470,000. As at December 31, 2022, outstanding
commitment for equipment procurement amounts to Rs. 180,716 (2021: Nil)
33.7 Associated Companies and Joint Venture
33.8.7 EPCL has entered into operating lease arrangements with Al-Rahim Trading Company (Private) Limited
33.7.1 Details of material contingency which might affect share of profit from associates and joint venture is as for the storage and handling of Ethylene Di Chloride (EDC) in respect of which future lease
follows: commitments aggregate to Rs. 3,600 (2021: Rs. 2,500).
33.7.2 FCEPL has provided bank guarantees to The Government of Sindh, amounting to Rs. 323,386 (2021: 33.8.8 EETPL under the Time Charter Party and LNG Storage and Re-gasification Agreement with Excelerate
Rs. 268,387) in relation to Sindh Infrastructure Development Cess (SIDC). In 2021 SCP through its Energy Middle East, LLC (EE) has furnished SBLC through National Bank of Pakistan amounting to
order dated September 1, 2021 has directed that till further orders operation of the impugned USD 22,500 (2021: USD 22,500) to EE. This SBLC is valid till March 7, 2023 and is renewable annually.
judgement of the HCS dated June 4, 2021 which validated SIDC and its recovery shall remain The aforementioned guarantee is secured against the Holding Company owned Treasury Bills
suspended. SCP's order further stated that the petitioners (including FCEPL) shall keep the bank equivalent to 10% margin of the facility amount and a corporate guarantee and project assets of
guarantees already submitted with the Government of Sindh and shall furnish fresh bank guarantees EETPL.
equivalent to 100% of the amount of SIDC against release of all future consignments of imported
goods. 33.8.9 National Bank of Pakistan (NBP) has issued Standby Letter of Credit (Equity SBLC) worth USD 18,900
(in Pak Rupee equivalent) on behalf of EEL for its equity commitments related to SECMC in favour of
33.7.3 Commitments given by the associated companies and joint venture in respect of capital and the Inter-creditor Agent (Habib Bank Limited) and SECMC. The Equity SBLC has been furnished for
operational expenditure including bank guarantees amount to Rs. 2,418,431 (2021: Rs. 1,716,093). subscription and / or contribution of sponsor equity pursuant to the Sponsor Support Agreement (SSA)
Other commitments include arrangements in respect of standby letters of credit and Ijarah which are originally dated February 26, 2016, and amended and restated from time to time. Equity SBLC expire
not material to the Group. as per the terms of the SSA. The SBLC is secured through lien over cash or cash equivalent of the
Holding Company. As of December 31, 2022, the outstanding amount of SBLC is USD 5,600 (2021:
33.8 Commitments USD 8,635).
Details of commitments as at December 31, 2022 entered by the Group are as follows: 33.8.10 Allied Bank of Pakistan (ABL) has issued a Standby Letter of Credit (Put Option SBLC) worth USD
21,070 on behalf of EEL relating to EPTL in favour of the Put Option Fronting Bank (Habib Bank
33.8.1 Commitments in respect of capital and operational expenditure contracted but not incurred amount to Limited). The Put Option SBLC has been furnished to meet sponsor obligations under Sponsor
Rs. 43,204,163 (2021: Rs. 31,245,701). Support Agreement (Put Option SSA) dated March 22, 2016 and expires on earlier of (i) June 30, 2023
or (ii) on payment of the Maximum Amount. It is secured through lien over cash and cash equivalents
33.8.2 The aggregate facilities available to the Group for opening Letter of credits and bank guarantees, and of the Holding Company.
other commitments other than those disclosed elsewhere in these consolidated financial statements,
amount to Rs. 35,314,255 (2021: Rs. 28,424,600).

33.8.11 EEL has also provided sponsor support contractual commitment for cost overrun, among other - EPCL has availed aggregate facilities for issuance of performance guarantees by the banks on its
commitments, in favour of Senior Lenders amounting to cumulative USD 6,300 for SECMC Phase I and behalf as at December 31, 2022 amounting to Rs. 7,048,000 (2021: Rs. 5,148,000). The amount
Phase II Expansion pursuant to the Amended and Restated Sponsor Support Agreements (A&R SSA) utilized there against as at December 31, 2022 is Rs. 6,268,568 (2021: Rs. 3,336,182).
dated September 02, 2019 for SECMC and USD 41,600 pursuant to Amendment and Restatement
Sponsor Support Agreement dated February 12, 2016 in case of EPTL. The performance guarantees of Rs. 73,644 and Rs. 286,682 given in respect of Sindh Development
and Maintenance of Infrastructure Cess (SIDC) and greenfield application status of Engro Peroxide
Phase I and Phase II have been achieved; however, the cost overruns / commitment will be released (Private) Limited, respectively. With regards to greenfield status, the management of the EPCL is of
on finalization of Project Completion Document (PCD). PCD for Phase I has been filed with lenders and the view that if any payment on account of sales tax and income tax which amounts to Rs. 149,620
is expected to be concluded in 2023, following which PCD for Phase II will also be initiated. is required to be made to the Government authorities, the same will be recoupable in its tax returns
for future periods. Accordingly, no provision has been made in this respect.
33.8.12 Commitments in respect of rentals of storage tanks at EVTL for the handling of Ethylene aggregate to
USD 22,752 valid till 31 March 2026, Ethylene Di Chloride (EDC) aggregate to USD 11,602 valid till 31 - EEL, in order to provide the collateral to all the Bank Guarantees issued by Bank Alfalah Limited,
December 2028 and Vinyl Chloride Monomer (VCM) aggregate to USD 655 valid till 31 December Allied Bank Limited has issued counter guarantee on behalf of EEL amounting to Rs. 400,000 in favor
2023. of Bank Alfalah Limited.
33.8.13 In 2018, EEL took over the operations and maintenance of the power plant owned by Tenaga Generasi - Bank guarantees amounting to Rs. 2,496,126 (2021: Rs. 2,496,126) have been given by EPQL to
Limited (TGL) under an agreement signed between both parties. EEL needs to submit a performance Sui Northern Gas Pipelines Limited (SNGPL) representing an amount equivalent to three months
bond equivalent to USD 930 on an annual basis as per the agreement. The bond was furnished by EEL contractual quantities of gas in accordance with the terms of Gas Supply Agreement (GSA) between
on October 21, 2019 and was extended upto December 20, 2022. It is in the process of being EPQL and SNGPL.
renewed.
- National Bank Limited, Askari Bank Limited and Faysal Bank Limited, have issued guarantees of
33.8.14 On March 28, 2022, and as supplemented from time-to-time Allied Bank Limited and Faysal Bank Rs. 1,500,000, Rs. 1,000,000 and Rs. 2,066,800, respectively, expiring on December 31, 2023,
Limited have committed to provide Payment Service Reserve Account Standby Letter of Credit worth December 28, 2023 and July 6, 2024, respectively. Further, Meezan Bank Limited has issued three
USD 23,316 and Rs. 1,029,044 on behalf of EEL for its commitments related to EPTL in favor of their guarantees of Rs. 1,114,610, Rs. 900,000 and Rs. 485,000 each expiring on November 21, 2023,
Senior Lenders. December 27, 2023 and August 3, 2023 respectively. These guarantees have been issued on behalf
of EPTL in favour of SECMC to secure EPTL’s payment obligations under the Coal Supply
33.8.15 EEAP has entered into export selling contracts of 2,100 tons (2021: 26,202 tons) of Super Basmati Agreement. The SBLC issuing Banks have entered into a non-funded financing facility with EPTL as
Rice to various parties on a agreed terms for delivery on various date subsequent to the year end. The Junior Creditors and acceded the Intercreditor Agreement and security accordingly.
sales value of these open commitments at year end amounts to Rs. 619,103 (2021: Rs. 3,687,500).
33.9 For other tax related matters, refer note 42
33.8.16 Following bank guarantees have been extended by other companies of the Group: 2022 2021
-------------Rupees--------------
- EETPL has provided a Letter of Guarantee through National Bank of Pakistan amounting to Rs. 34. revenue
1,860,000 (2021: Rs. 1,620,000) and Rs. 930,000 (2021: Rs. 810,000) in favour of SSGCL to
guarantee performance of its obligations under the LNG Operations and Services Agreement (LSA). Own manufactured products (notes 34.1 and 34.2) 292,903,884 273,152,534
The aforementioned guarantee is secured against project assets of ETPL and the Holding
Company’s corporate guarantee. Both of the guarantees in favour of SSGCL are valid till April 30, Less:
2023 and are renewable annually. - Sales tax (23,991,695) (16,600,268)
- Discounts (2,297,964) (1,827,474)
(26,289,659) (18,427,742)
- EETPL has provided bank guarantee amounting to Rs. 1,952,145 (2021: Rs. 1,881,115) from MCB 266,614,225 254,724,792
Bank Limited and Rs. 1,322,483 (2021: Nil) from Bank Alfalah Limited, in favor of Nazir of the Court
to comply with the interim orders of the HSC. During the last year, tax department filed application to Purchased products 63,532,101 44,445,348
the HSC to adjust payment of advance tax against the bank guarantee provided above which was Services rendered (note 34.3) 31,209,905 18,592,513
duly allowed by the HSC. Less: Sales tax (4,928,705) (6,175,252)
89,813,301 56,862,609
- EFert has issued bank guarantees amounting to Rs. 9,117,070 (2021: Rs. 5,332,652) in favour of
third parties. 356,427,526 311,587,401

-------------Rupees---------------
34.1 Includes export sales amounting to Rs. 6,817,888 (2021: Rs. 7,916,927) in European, USA, Middle 35. cost of revenue
East and Afghanistan markets.
Cost of goods sold (note 35.1) 233,446,118 199,846,819
2022 2021 Cost of services rendered (note 35.2) 14,021,085 8,332,033
-------------Rupees-------------- Finance cost on lease liabilities 4,341,277 3,675,852
34.2 Includes revenue from sale of Energy which comprises of: 251,808,480 211,854,704
Capacity purchase price (note 34.2.1) 43,773,052 34,031,257 35.1 Cost of goods sold
Energy purchase price 50,761,902 53,087,941
94,534,954 87,119,198 Raw and packing materials consumed
including unprocessed rice (notes 35.1.2 and 35.1.4) 120,366,664 104,667,094
34.2.1 On June 15, 2022, National Electric Power Regulatory Authority (NEPRA) decided upon the Salaries, wages and staff welfare (note 35.1.3) 5,321,923 5,767,405
Fuel and power 28,561,919 25,642,334
Commercial Operations Date (COD) Adjustment Tariff (Tariff Decision), forming the basis on which future Operation and management - 3,730,876
indexations in the EPTL's tariff are to be made and the revenue is to be recognized with effect from the Repairs and maintenance 7,233,362 3,671,968
COD. EPTL believes that the aforementioned Tariff Decision is principally not in accordance with EPTL's Depreciation - Right-of-use asset (note 5.2) 449,662 419,364
Upfront Tariff issued by NEPRA dated March 13, 2015, and being aggrieved from the Tariff Decision, Depreciation (note 4.4) 11,885,090 11,070,934
EPTL had filed an appeal before the Appellate Tribunal - NEPRA on July 13, 2022 in accordance with Amortization (note 6.1) 28,543 37,176
the applicable legislation. Consumable stores 2,098,563 2,057,542
Staff recruitment, training, safety and other expenses 906,447 733,977
Further, EPTL had obtained a stay order from HCS against the above Tariff Decision till the finalisation Purchased services 3,058,878 2,040,589
of EPTL's appeal before the Appellate Tribunal - NEPRA. Accordingly, the Tariff Decision dated June 15, Storage and handling / product transportation 2,761,435 2,329,666
2022 also stands suspended. Travel 626,178 357,868
Communication, stationery and other office expenses 143,721 77,786
Insurance 2,819,284 2,351,378
In light of the aforementioned appeal filed and favorable advice from EPTL's legal counsel, EPTL's Rent, rates and taxes 241,754 259,316
management had assessed that it has strong legal grounds against certain disallowances made by Provision against surplus and slow moving spares (note 13.1) 84,591 195,262
NEPRA in the Tariff Decision and the Group has continued to recognize revenue in these consolidated Write-off of stores and spares (note 13.2) 25,975 98,719
financial statements in accordance with its interpretation of the relevant tariff provisions. Write-off of stock-in-trade (net of proceeds) (note 14.1.1) 237,549 49,265
Other expenses 128,842 64,249
However, there are certain adjustments disallowed in the Tariff Decision which are applicable on EPTL Manufacturing cost 186,980,380 165,622,768
post CoD and the Group had decided to recognize its impact in these consolidated financial
statements amounting to Rs. 2,338,389 which pertains to prior periods i.e. from July 10, 2019 till Add: Opening stock of work-in-process 177,862 135,688
December 31, 2021. Resultantly, the Group has recognized contract liability of Rs. 833,355. Less: Closing stock of work-in-process (note 14) 133,161 177,862
44,701 (42,174)
Cost of goods manufactured 187,025,081 165,580,594
34.3 This includes revenue from services rendered by EETPL which comprises of:
Add: Opening stock of finished goods
2022 2021 manufactured 7,351,417 7,588,920
-------------Rupees--------------
Less: Closing stock of finished goods
manufactured (note 14) 9,469,340 7,351,417
Operating lease rental income 1,261,205 983,699 (2,117,923) 237,503
Revenue from O&M services 4,125,807 3,137,001 Cost of goods sold
Finance income on sublease 6,139,802 5,153,362 - own manufactured product 184,907,158 165,818,097
Revenue from utilization / regasification services 4,882,042 3,685,727 - purchased product (note 35.1.1) 48,538,960 34,028,722
16,408,856 12,959,789
233,446,118 199,846,819
35.1.1 Cost of goods sold - purchased product
Opening stock (net of NRV) 8,523,247 1,020,662

Add: Purchases 49,469,428 41,531,307
Less: Closing stock (net of NRV) 9,453,715 8,523,247
48,538,960 34,028,722

-------------Rupees--------------
35.1.2 This includes an amount of Rs. 2,402,000 representing downward adjustment of inventory relating to 36. selling and distribution expenses
the Group’s subsidiary EEAP, identified during the third quarter of the current year based on an exercise
carried out by the management of EEAP to reconcile inventory balances as appearing in books and the Salaries, wages and staff welfare (note 36.1) 1,629,617 1,435,788
inventory available in warehouses. Staff recruitment, training, safety and other expenses 196,958 196,309
Product transportation and handling 5,448,535 4,684,979
Repairs and maintenance 19,225 10,258
35.1.3 This includes Rs. 396,648 (2021: Rs. 337,450) in respect of staff retirement benefits. Advertising and sales promotion 755,244 435,539
Rent, rates and taxes 554,666 577,379
35.1.4 This includes reversal of cost amounting to Rs. 12,130,839 to be charged by SECMC based on the Communication, stationery and other office expenses 49,988 31,004
decision given by Thar Coal Energy Board (TCEB) on December 29, 2022 related to the CoD stage tariff Travel 307,305 98,513
for 3.8 mtpa tariff true up of SECMC. Resultantly, the Group has also accounted for consequential Depreciation (note 4.4) 154,212 138,007
adjustment in revenue by the same amount and recognized contract liability of Rs. 12,130,839 (note 29). Depreciation - Right-to-use asset (note 5.2) 25,299 -
Amortization (note 6.1) 4,371 4,756
Purchased services 96,926 121,366
2022 2021 Others 83,504 85,393
-------------Rupees------------- 9,325,850 7,819,291
35.2 Cost of services rendered
Fixed expenses 2,539,978 1,852,227 36.1 This includes Rs. 137,130 (2021: Rs. 119,723) in respect of staff retirement benefits.
Variable expenses (note 35.2.2) 3,289,463 2,367,451
Operational and maintenance services 996,950 1,193,140 2022 2021
Depreciation (note 4.4) 2,026,426 398,397 -------------Rupees--------------
Depreciation - Right-of-use asset (note 5.2) 603,671 354,230 37. administrative expenses
Amortization (note 6.1) 10,889 63
Amortization of direct cost on FSRU 86,516 86,516 Salaries, wages and staff welfare (note 37.1) 4,993,768 3,101,845
Salaries, wages and staff welfare (note 35.2.1) 865,853 708,418 Staff recruitment, training, safety and other expenses 222,203 206,122
Fuel and power 2,143,452 541,992 Repairs and maintenance 87,440 58,929
Purchased services 160,218 199,453 Advertising 418,551 235,118
Communication and other office expenses 89,105 100,727 Rent, rates and taxes 525,279 378,876
Stores and spares consumed - 77,983 Communication, stationery and other office expenses 506,512 461,803
Repairs and maintenance 504,839 284,008 Travel 862,619 393,877
Travelling and entertainment 157,238 68,571 Depreciation - Right-of-use asset (note 5.2) 245,086 244,739
Security and other expenses 525,328 96,054 Depreciation (note 4.4) 547,752 312,530
Others 21,159 2,803 Amortization (note 6.1) 368,457 202,797
14,021,085 8,332,033 Purchased services 1,960,888 1,780,844
Directors' remuneration 479,698 228,848
Share based compensation expense (note 37.2) 133,993 -
35.2.1 This includes Rs. 39,718 (2021: Rs. 29,808) in respect of staff retirement benefits. Others 424,401 52,515
11,776,647 7,658,843
35.2.2 This includes Rs. 1,989,088 (2021: Rs. 1,724,391) in respect of royalty charges paid to Port Qasim
Authorities as per the LSA.
37.1. This includes Rs. 393,174 (2021: Rs. 285,187) in respect of staff retirement benefits.
37.2. This represents expense recognized for cash settled share based payment transactions of Rs. 133,993
(2021: Nil) (note 28.9).

(Amounts in thousand) 2022 2021 (Amounts in thousand) 2022 2021
-------------Rupees------------- -------------Rupees--------------
38. other income
Fee for:
Financial assets:
- audit of annual financial statements 20,236 17,390
Income on deposits / other financial assets 14,196,542 7,754,537 - review of half yearly financial information 5,238 5,149
Interest on amount receivable from SSGCL 161,969 170,749 - Special audits, certifications, review of compliance
Others - 4,378 with the Code of Corporate Governance and other
14,358,511 7,929,664 assurance & advisory services 48,587 30,192
Non financial assets: Taxation services 76,670 37,515

Reimbursement of expenses 5,153 4,507
Insurance claims 106,743 54,803 155,884 94,753
Gain on disposal of property, plant and equipment 260,370 3,458
Delayed payment charges on overdue receivables 5,233,201 3,702,727
Income from sale of spares / scrap 181,248 120,418 39.2 This includes an amount equal to 51% of the sales tax receivable of FrieslandCampina Engro Pakistan
Reversal of impairment of property, plant and Limited (FCEPL), an associated company, recognized in the financial years 2012 to 2016, which the
equipment (note 4.5) 1,458,297 - Holding Company is required to pay, under the Share Purchase Agreement (SPA) with
Others 275,490 416,317 FrieslandCampina Pakistan Holding B.V. (FCP), if the same is not recovered by FCEPL within six years
7,515,349 4,297,723 after it is recognized. Accordingly, on prudence basis, the Holding Company has recognized its liability
21,873,860 12,227,387 under the SPA equivalent to 51% of the sales tax receivable pertaining to FCEPL being sales tax short
39. other operating expenses recovered till December 31, 2022.
2022 2021
Workers' profits participation fund 2,006,619 2,566,039 -------------Rupees--------------
Workers' welfare fund 627,473 745,505 40. finance cost
Legal and professional charges 547,066 823,958
Human resource development 21,351 134,701 Interest / mark-up on:
Research and development 2,507,929 1,579,583 - long term borrowings 15,553,638 10,038,921
Auditors' remuneration (note 39.1) 155,884 94,753 - short term borrowings 3,588,937 1,253,956
Provision for doubtful debts (note 15.6) 12,426 289,094 Markup on Shariah compliant borrowings 151,940 136,315
Donations (note 55) 800,832 1,196,668 Interest on lease liabilities 1,537,633 906,275
Exchange loss 2,998,075 658,979 Unwinding of deferred incentive revenue 79,313 121,417
Impairment against long-term investment and Foreign exchange loss, net 789,319 344,883
off balance sheet obligation of investee company 71,146 691,371 Amortization of transaction costs 885,075 1,012,054
Write-off of property, plant and equipment 270 120,968 Financial / bank charges 1,770,705 1,112,736
Others (note 39.2) 285,877 334,062 Default surcharge on GIDC 503,733 156,583
10,034,948 9,235,681 Delayed payment charges 3,806,908 2,055,404
Others 77,038 135,514
28,744,239 17,274,058
39.1 Auditors' remuneration:
41. share of income from joint venture and associates
The aggregate amount charged in respect of auditors' remuneration, including remuneration of auditors
of foreign subsidiaries, is as follows: Joint venture:
Engro Vopak Terminal Limited

Share of profit before taxation 1,975,972 1,653,036
Less: Share of provision for taxation (753,203) (477,579)
1,222,769 1,175,457
Associates:
Share of profit from:

- Sindh Engro Coal Mining Company Limited 1,008,703 1,331,413
- FrieslandCampina Engro Pakistan Limited 983,804 719,827
1,992,507 2,051,240
3,215,276 3,226,697

-------------Rupees---------------
42. taxation In 2020, the Amendment Ordinance was laid down before the Parliament and enacted as Tax Laws
(Amendment) Act 2020 (the 2020 Act). The 2020 Act ratified the exemption on ICD restored by the
Current Amendment Ordinance, however, the provision granting exemption from application of withholding tax
- for the year (note 42.1) 20,570,800 18,402,348 on ICD, as previously deleted by Finance Act 2016, was not restored. Hence, in respect of the ICD
- for prior years (notes 42.1 to note 42.3) 6,512,742 (1,455,423)
27,083,542 16,946,925 received by the Holding Company from its subsidiaries during the year 2020, the Holding Company
obtained stay from the HCS against deduction of withholding of tax.
Deferred
- for the year (4,995,038) 1,716,380 Subsequently in 2021, the exemption of income tax on ICD was again withdrawn via Tax Laws (Second
- for prior years 1,174 (6,092) Amendment) Ordinance, 2021 in March 2021 and subsequently by Finance Act 2021. The Holding
(4,993,864) 1,710,288 Company has again challenged the amendment before the HCS and stay has been granted in this
22,089,678 18,657,213 respect. The management, on prudent basis, has recognized a tax charge of Rs. 9,218,658 (2021: Rs.
6,408,991) in these consolidated financial statements pertaining to periods during which exemption of
42.1 Includes super tax aggregating to Rs. 2,604,907 and Rs. 2,589,681 for the year ended December 31, income tax on ICD remained withdrawn.
2021 [(tax year 2022) (as explained in note 33.1)] and December 31, 2022 (tax year 2023) respectively,
on account of provision made in accordance with section 4C ‘Super tax on high earning persons' 42.4.2 Through the Finance Act 2015, levy of 'Super Tax for rehabilitation of temporarily displaced persons'
introduced in the Income Tax Ordinance, 2001 (the Ordinance) through Finance Act, 2022. under section 4B of the Ordinance was introduced for tax year 2015. The said levy was extended and
made applicable on succeeding years via subsequent Finance Acts upto financial year ended
The management of the Group believes that the tax authorities will file an appeal before the Supreme December 31, 2018. In the year 2019, through Finance Supplementary Act, 2019, the levy of Super
Court of Pakistan (SCP) against the decision of HCS. However, legal advisors have opined that there Tax is prescribed at zero percent from financial year ended December 31, 2019 onwards for companies
are reasonable chances that SCP will uphold the decision of HCS on the matter of 6% discriminatory other than banking companies.
super tax. Accordingly, the Group, based on legal advice, has recognized provision at the rate of 4%
for all eligible companies in the Group including those falling under the notified sectors for the year In 2020, the petition filed by the Holding Company along with other taxpayers against the imposition of
ended December 31, 2021 and 2022. Super Tax in the HCS was rejected vide order dated July 21, 2020. The Holding Company, in
consultation with its legal and tax advisors, has filed an appeal against the decision of the HCS in the
42.2 This includes an amount of Rs. 6,457,059 (2021: Nil) relating to the disallowance of GIDC provision by Supreme Court of Pakistan (SCP). Consequent to the High Court judgement, the tax authorities issued
the income tax department on account of non-payment. The Group has therefore recognized the prior notices to the Holding Company and subsequently framed orders for recovery of Super Tax for tax
year charge and a corresponding impact on deferred tax asset which shall be realized once the matter years 2017 to 2019 with total tax demand of Rs. 2,232,966. Appeal was filed against these orders with
is settled by the Court as disclosed in note 27. Commissioner Inland Revenue (Appeals) (CIR(A)) on certain contentions and factual grounds. The
CIR(A) has decided all appeals against the Holding Company and maintained the levy of Super Tax
42.3 During the year, the Holding Company's management has reassessed its income tax provisions based considering the HCS judgement. The Holding Company has filed a further appeal before the Appellate
on the finalization of its income tax assessments of prior tax years from 2011 to 2022 by the income Tribunal Inland Revenue (ATIR) which is pending to be heard.
tax department. Upon such assessment, the Holding Company's management has recognized a
reversal of tax provisions amounting in aggregate to Rs. 1,444,225 in these consolidated financial In November 2020, SCP granted leave to appeal and passed an interim order restraining the
statements. Respondents from taking any coercive action against the Petitioner taxpayers (including the Holding
Company) subject to them depositing 50% of the impugned outstanding tax amount.
Details of significant income tax matters are as follows:
The Holding Company has till date paid Super Tax amounting to Rs. 265,389 through adjustments of
42.4 The Holding Company excess tax refunds against the demand for tax years 2018 and 2019. Adequate provision for Super Tax
for the respective tax years is being maintained in these consolidated financial statements.
42.4.1 In 2016, an amendment was introduced in the Ordinance, via the Finance Act, 2016 imposing tax on
Inter-Corporate Dividends (ICD) which were previously exempt to companies designated as a Group 42.4.3 Following is the position of the Holding Company's open tax assessments:
under section 59B of the Ordinance. Subsequently, in December 2019, the exemption on ICD was
restored through amendment in the Ordinance vide Tax Laws (Second Amendment) Ordinance, 2019
(the Amendment Ordinance). However, in respect of the dividends received before the said
amendment, the Holding Company had challenged the imposition of tax on ICD in HCS and has been
granted a stay in this respect.

42.4.3.1 During the year, the Deputy Commissioner Inland Revenue (DCIR) - Audit has finalized the tax audit 42.4.3.5 In 2017, the ACIR through order dated June 13, 2017 amended the return for the tax year 2016
proceedings for tax year 2018 which is a “Group Return” filed under section 59AA of the Ordinance creating tax demand of Rs. 1,573,876 mainly on account of tax levied on inter-corporate dividend,
with its wholly owned subsidiaries EEL and EEAP. The Amended Order dated January 9, 2023, creates Super Tax including on exempt income and disallowance on account of allocation of expenses to
tax demand of Rs. 211,992 which is mainly on account of disallowances made of the provision dividend and capital gains including minimum tax paid under section 113 of the Ordinance. The CIR(A)
pertaining to retirement benefits in the case of the Holding Company, a portion of disallowance of while disposing off the Holding Company's appeal maintained the order of ACIR with respect to certain
‘Purchases’ for alleged non-withholding of taxes thereon in the case of EEAP and taxation of project issues which were further contested before the ATIR. During 2019, the ATIR in its order dated July 31,
management fee in the case of EEL as ‘services rendered’ at the rate of 7 percent vis a vis 8 percent 2019 has annulled the order of ACIR and validated the exemption on intercorporate dividend as well as
as per the return. the non-applicability of Super Tax on such exempt income whereas the issues relating to the levy of
Super Tax under section 4B and the carry forward of minimum tax have been linked to the pending
Super Tax under section 4B of the Ordinance has also been reworked to Rs. 321,581 in this order decisions of the HCS (where the matter is separately being contested by the Holding Company) and
based on the revised amounts of taxes determined. Moreover, the entire amount has been considered the carry forward under section 113(2)(c) has been linked to the decision of the SCP in the case of
recoverable despite the adjustments made. another taxpayer.
The Holding Company is in the process of filing an appeal against the order before the CIR(A). The Against the order dated June 13, 2017, the Holding Company had filed an application for rectification.
management of the Holding Company is confident of a positive outcome of the case. The ACIR through rectified order dated August 29, 2017 reduced the demand to Rs. 1,084,733.
Through the said order, the ACIR accepted the Holding Company’s contention relating to various
42.4.3.2 In 2020, the Assistant Commissioner Inland Revenue (ACIR) - Audit through order dated December 22, matters except the issue of allocation of expenses to capital gains. The Holding Company contested
2020 amended the return for the tax year 2017 by creating tax demand of Rs. 4,335,176 mainly on this matter in appeal before the CIR(A) who has maintained the order of ACIR through order dated
account of tax levied on undistributed profits under section 5A and Super Tax under section 4B. The December 18, 2018. The Holding Company filed an appeal before the ATIR against the CIR(A) order.
Holding Company had obtained stay from HCS against the levy of tax on undistributed profits, therefore
the said demand was not recoverable by the tax department. In April 2021, the HCS disposed of the In 2020, the Holding Company received appeal effect order dated November 20, 2020 issued by the
appeal against the levy of tax under section 5A as ultra vires to the Constitution. During the year, the ACIR giving effect to the findings of appellate orders of CIR(A) and ATIR by deleting the tax levied on
ACIR passed the order dated December 30, 2022 rectifying the earlier order in relation to the levy of tax inter-corporate dividends and Super Tax on exempt income which resulted in revised demand of Rs.
on undistributed profits. Thereafter, the demand of Rs. 4,335,176 was reduced and refundable of Rs. 149,257. Moreover, the issue of classification of income from interest on bank deposits and from
392,231 was determined. As normal recourse, the Holding Company filed an appeal against the order subordinated loans has been decided in the Holding Company’s favour as “Income from Business”.
of ACIR - Audit before the CIR(A) which has been heard on January 31, 2023 and is reserved for order.
The management of the Holding Company is confident of a positive outcome of the case. During the year, Appellate Order has been framed by the CIR(A) wherein the levy of Super Tax under
section 4B of the Ordinance has been maintained. An appeal has been filed before the ATIR which is
42.4.3.3 In 2020, the income tax department, in respect of the tax year 2014, amended the return by creating pending.
tax demand of Rs. 401,240 whereby the Additional Commissioner Inland Revenue (ACIR) has levied tax
on capital gains on disposal of shares of listed subsidiary, apportioned expenses against dividend In addition to the above, the ACIR issued a further amendment order dated November 24, 2020 for the
income, disallowed the classification of 'Interest Income' as "Income from Business” as well as not same tax year and determined additional income tax liability of Rs. 21,808 on account of capital gain
allowing the adjustment of brought forward capital losses and brought forward minimum tax paid under tax on debt securities. The same has been discharged by the Holding Company.
section 113(2)(c) of the Ordinance. As a normal recourse, the Holding Company filed an appeal against
the order of ACIR before the CIR(A). During the year, Appellate order has been framed by CIR(A) and 42.4.3.6 In 2013, the income tax department, in respect of the tax year 2011, determined additional income tax
favorable decision was made in respect of taxation of capital gains on disposal of shares of listed liability of Rs. 218,790 and raised a demand of Rs. 139,575 whereby DCIR - Audit disallowed allocation
subsidiary whereas other matters have been remanded back to the ACIR for reconsideration. of expenses against interest income and apportioned expenses against dividend income and capital
gains. The Holding Company filed an appeal with the CIR(A) who maintained the apportionment of
42.4.3.4 During 2017, the income tax department in respect of the tax year 2015, determined an additional expenses against dividend income and capital gains but allowed the allocation of administrative
income tax liability of Rs. 128,400, whereby, the ACIR - Audit has levied tax on inter-corporate expenses against interest income, thereby reducing the income tax liability to Rs. 184,191 and revised
dividends, Super Tax including on exempt income, the effects of classification of 'Interest Income' as the demand to Rs. 104,976. The Holding Company paid Rs. 53,250 there against and simultaneously
"Income from Other Sources" as well as not allowing the adjustment of the minimum tax paid under filed an appeal against the CIR(A) decision with ATIR which granted a stay to the Holding Company.
section 113(2)(c) of the Ordinance. In the year 2019, the CIR(A) vide order dated May 6, 2019 has During 2014, the ATIR issued an order whereby the aforementioned appeal was remanded back to the
maintained the matter relating to taxation of intercorporate dividend, Super Tax under section 4B, the assessing officers for denovo proceedings, thereby accepting the Holding Company's contention. The
classification of the interest income and carry forward of minimum tax for adjustment whereas the income tax department, in response there against, had filed an appeal with ATIR, which was dismissed
rectificatory matters including the levy of Super Tax on exempt income was remanded back. The during 2016.
Holding Company has preferred an appeal before ATIR on all issues adjudicated against it. The Holding
Company, based on the advice of its tax consultant, is confident that these matters will be decided in
favour of the Holding Company. However, on prudence, the Holding Company has recorded provision
against Super Tax.

In 2014, the income tax department in respect of tax year 2012, amended the assessment and raised 42.5.3 In 2020, the income tax department amended the assessment filed by EFert for tax year 2019. EFert
an additional demand of Rs. 250,773 on similar grounds as above. The Holding Company filed an filed an appeal before the CIR(A) against the disallowances, which mainly pertained to proration of
appeal against the said order with CIR(A), who based on ATIR's order for tax year 2011, has remanded expenses to exempt / FTR incomes, tax credit on investment in plant and machinery, disallowance of
back the order to assessing officers for denovo proceedings. deductible allowances for WWF / WPPF resulting in demand of Rs. 1,145,227 (additions to taxable
income of Rs. 3,305,905). In addition, the tax department raised demand for Super tax amounting to
During 2015, in respect of pending tax assessments for tax year 2011 and tax year 2012, the Holding Rs. 476,629.
Company received notices of demand amounting to Rs. 105,955 and Rs. 250,773, respectively,
whereby the Deputy / Additional Commissioner Inland Revenue – Audit again disallowed allocation of During the year, the appeal was heard by CIR(A) and favorable decision was passed mainly pertaining
expenses against interest income and apportioned expenses against dividend income and capital to proration of expenses to exempt income, tax credit on investment in plant and machinery, and
gains. The Holding Company filed appeals thereagainst before the CIR(A) and also obtained stays from disallowance of deductible allowances for WWF and WPPF, hence, reducing the aggregate demand to
the HCS from initiating any recovery proceedings in respect of both tax years. During 2016, in respect Rs. 294,586. EFert has filed appeal before ATIR against the unfavorable decision of CIR(A).
of both tax years, the CIR(A) accepted the Holding Company's plea and annulled the order passed by
the DCIR. In response, the DCIR filed appeals before the ATIR for rectification of the orders passed by Subsequently, the tax department has passed appeal effect order based on favourable CIR(A)’s
the CIR(A) for both tax years, which were subsequently dismissed. In 2017, the Holding Company decision and has maintained disallowance on deductible allowance for WPPF having tax impact of Rs.
reversed excess provision of Rs. 168,896 in respect of tax years 2011 and 2012 consequent to denovo 269,435. Appeal before CIR(A) has been filed against this matter.
proceedings after which the amended orders were passed in respect of the aforementioned tax years,
wherein, the Commissioner has maintained the classification of income from interest on bank deposits The Group maintains adequate provision in these consolidated financial statements and is confident of
and from subordinated loans as "income from other sources". In response, the Holding Company filed an ultimate favorable outcome on this amendment.
an appeal challenging this contention before the CIR(A). In January 2019, the CIR(A) passed the
appellate orders for both the years and has again remanded the matter to the assessing officer for 42.5.4 In 2019, the income tax department amended the assessment filed by EFert for the tax years 2015,
denovo proceedings. 2016 and 2017. EFert filed appeals before CIR(A) for disallowances made in the orders which mainly
included proration of expenses to exempt / FTR incomes, exchange loss disallowances, loss on
During 2020, the Holding Company received appeal effect orders both dated June 29, 2020 along with derivatives and losses purchased from EEAP under section 59B of the Ordinance, resulting in
notices of demand amounting to Rs. 75,308 and Rs. 112,681, respectively, whereby the Deputy / cumulative demand of Rs. 1,980,698 (cumulative addition of Rs. 16,173,826 to taxable income) for
Additional Commissioner Inland Revenue - Audit has again maintained the classification of income from these tax years. Subsequently, CIR(A) passed an order for tax years 2015, 2016 and 2017 maintaining
interest on bank deposits and from subordinated loans as “Income from Other Sources”. During the most of the additions made by taxation officer in the amendment order, whilst allowing deletion of
year, Appellate order was framed by CIR(A) and favorable decision was made in respect of classification expenses on allocation basis to exempt income and claim of exchange losses on realised basis. EFert,
of interest income as “Income from Business” and allocation of expenses to dividend income and as well as the tax department filed appeals against CIR(A)’s order before ATIR.
capital gains. The income tax department, in response thereagainst, had filed an appeal with ATIR,
which is still pending. Through order dated February 26, 2020, ATIR decided the amendment orders for TY 2015 and 2016
mainly in favor of EFert, except for certain disallowances including provisions on other receivables,
Subsidiary Companies retirement benefits and disallowance of loss on fair valuation of embedded derivative which were
maintained or remanded back to the tax department for verification. On June 01, 2020, the tax
42.5 Engro Fertilizers Limited (EFert) and its subsidiary company department filed reference application before HCS for questions of law arising out of the ATIR order.
42.5.1 Subsequent to the year end, EFert received an amendment order in respect of TY 2021, creating The Group maintains adequate provision in these consolidated financial statements and is confident of
disallowances having a tax impact of Rs. 916,584. The disallowances mainly pertain to disallowance of an ultimate favorable outcome on these amendments.
WPPF and minimum tax on stock-in-trade.
42.5.5 In 2018, EFert received recovery notice from the Federal Board of Revenue for payment of Super Tax,
EFert's management considers, based on its tax advisor’s opinion, that it has reasonable grounds to in accordance with Section 4B of the Ordinance for TY 2018. EFert filed a Constitutional Petition before
defend the case and therefore will not be exposed to any additional liability in this respect. the HCS challenging the notice as well as the vires of Section 4B of the Ordinance. An interim order was
granted in favour of EFert. On July 21, 2020, HCS held that of Section 4B was intra vires the
42.5.2 During the year, in respect of TY 2018, EFert received an order from ACIR restricting brought forward Constitution (HCS Judgment). Thereafter, EFert filed a Civil Petition for Leave to Appeal (CPLA) before
losses having a tax impact of Rs. 580,910. This disallowance has been made in the assessment orders the SCP challenging the HCS Judgment. The CPLA was filed by EFert only in relation to TY 2018 i.e.
relating to prior years which are pending in appeals. Certain errors have been made in relation to the year which was challenged before the HCS as well.
allowance of credits which are being taken up in rectification.
Pursuant to the HCS Judgement, the tax department passed orders to EFert for TY 2015 to 2019 in
EFert 's management, based on its tax advisor’s opinion, that it has reasonable grounds to defend the relation to recovery of Super Tax amounting in aggregate of Rs. 2,110,491. EFert filed appeals against
case and therefore will not be exposed to any additional liability in this respect. the orders before CIR(A).

On November 26, 2020, SCP granted leave to appeal and passed an interim order restraining the In previous years, the taxation department had filed reference applications in the HCS against the
Respondents from taking any coercive action against the Petitioner taxpayers (including the EFert) below-mentioned ATIR’s decisions in EFert’s favor. No hearing has been conducted to-date. The
subject to them depositing 50% of the impugned outstanding tax amount. reference application includes the following matters:
42.5.6 In 2015, the income tax department amended the assessment filed by EFert for tax year 2014. EFert ● Group Relief (Financial years 2006 to 2008): Rs. 1,500,847
filed an appeal before the CIR(A) against the disallowances, which mainly pertained to exchange gain ● Inter-Corporate Dividend (Financial years 2007 and 2008): Rs. 336,500
and loss, loss on derivatives and losses purchased from Engro Eximp Agriproducts (Private) Limited, an ● G.P. Apportionment (Financial years 1995 to 2002): Rs. 653,000
associate, under section 59B of the Ordinance resulting in demand of Rs. 1,231,201 (additions to
taxable income of Rs. 3,191,963). In addition, the tax department raised demand for the Alternative The Group maintains adequate provision in these consolidated financial statements and is confident of
Corporate Tax (ACT) through the same order, for which EFert specifically obtained a stay order. The an ultimate favorable outcome.
matter was heard by the CIR(A) and favorable decision was made in respect of exchange gain and loss
and acceptance of prior years tax refunds, whilst other additions made by the tax department in 42.6 Engro Polymer & Chemicals Limited (EPCL) and its subsidiary companies
respect of ACT, loss on derivatives and group relief under section 59B were maintained in the order.
EFert has filed an appeal against the order of CIR(A) before the Income Tax Appellate Tribunal which is 42.6.1 Through the notice dated January 20, 2020, ACIR raised issues inter alia with respect to the adjustment
pending to be heard. of carried forward minimum taxes from the tax liability of Tax Year 2019 and required EPCL to pay Rs.
552,331 being the amount short paid with the return. EPCL filed a Constitutional Petition in the HCS
challenging the notice, which through order dated February 4, 2020, dismissed the case based on the
The Group maintains adequate provision in these consolidated financial statements and is confident of
decision of the HCS in respect of another company. However, HCS directed the department to refrain
an ultimate favorable outcome on this amendment.
from passing the order on the bases of the aforesaid notice for a period of thirty days which was then
extended for further thirty days to enable EPCL to approach the SCP. EPCL has filed Civil Petition for
42.5.7 In 2014, the income tax department amended the assessment filed by EFert for tax years 2010 and
Leave to Appeal against HCS order in SCP, which was heard on March 18, 2020 and an interim stay
2011. EFert filed appeals thereagainst before ATIR against the said disallowances, which through its
has been granted to EPCL subject to the submission of Bank Guarantee equivalent to the order
decision provided relief in respect of certain items and confirmed certain disallowances in favor of the amount, which has been duly submitted by EPCL. EPCL based on the advice of its legal advisor, is
tax department. The said disallowances included the charge in respect of exchange gain and loss confident of a favorable decision. Accordingly, no provision is recognized in these consolidated financial
incurred for tax year 2010 and tax year 2011, and loss on derivative for tax year 2011 raising a demand statements.
in respect of these years in aggregate of Rs. 1,075,466. EFert had challenged the said decision before
the HCS. In the year 2020, the matter was heard, and was reserved for judgement. The Group 42.6.2 Through the Finance Act 2015, section 4B of the Ordinance was inserted which levied super tax at
maintains adequate provision in these consolidated financial statements and is confident of an ultimate specified rates on income for the tax year 2015. This levy was subject to the threshold of taxable
favorable outcome on these amendments. income of Rs. 500,000. The levy was extended uptil tax year 2020 vide subsequent Finance Acts.
Through Finance Supplementary Act, 2019, the levy of super tax has amended the rate of super tax to
42.5.8 As a result of merger of Engro Eximp (Private) Limited (EXIMP) with EFert, all pending tax issues of 0% from tax year 2020 and onwards for companies other than banking companies. On August 01,
EXIMP have been transferred to EFert. Major pending issue pertains to exercise of option to be taxed 2018, EPCL filed petition against the levy of super tax in the HCS and based on the opinion of its legal
under the Normal Tax Regime (NTR) by EXIMP for the years 2012 and 2013, resulting in an aggregate advisor, EPCL has made a provision for full amount of Super tax of Rs. 328,000. In 2020, super tax was
refund of Rs. 796,000. The tax department had not accepted the said treatment for tax year 2013, declared intra vires by HCS and has been declared a tax rightly introduced through Finance Act and
however, the matter was decided in favor of EFert by the Commissioner Income Tax Appeals (CIT(A)), vacated all the stays filed in this respect. Consequently, EPCL received various notices from tax
against which the tax department has filed an appeal with the ITAT. However, the department has given authorities for recovery of super tax for the tax years 2017 to 2019. EPCL filed appeal against the said
appeal effect order to the aforementioned favorable decision of the CIT(A) for tax year 2013. notices with CIR(A) whereby the action of Officer has been confirmed by CIR(A) for tax years 2017 to
2019. EPCL filed an appeal before Appellate Tribunal against the decision of CIR(A) which is pending
In 2019, in respect of tax year 2013, the matter was decided by the ITAT in favor of EFert and the adjudication.
department's appeal in this respect was rejected. EFert's management is confident for a favorable
outcome on this case. In the meanwhile, EPCL also filed petition in SCP against the order of HCS, which is pending
adjudication. In November 2020, the SCP conditionally granted stay subject to deposit of 50% of super
42.5.9 As a result of demerger in the year 2009, all pending tax issues of the then Holding Company, Engro tax demand.
Chemical Pakistan Limited had been transferred to EFert. Major issues pending before the tax
authorities are described below: 42.6.3 DCIR through order dated November 30, 2010 raised a tax demand of Rs. 163,206. The demand
arose as a result of disallowance of finance cost of Rs. 457,282, additions to income of trading liabilities
of Rs. 21,859 under section 34(5) of the Ordinance, disallowance of provision for retirement benefits of
Rs. 14,239, disallowance of provision against Special Excise Duty (SED) refundable of Rs. 36,687,
addition of imputed interest on loans to employees and executives of Rs. 20,599 and not considering
net loss.

In 2013, the ATIR issued an order whereby the aforementioned appeal was disposed of by accepting (BG) of equal amount with the Nazir of HCS. EETPL in compliance with the HCS directions is submitting
EPCL’s position except for additions on account of SED provision of Rs. 36,687 and imputed interest BG and, based on assessment, has recognized the current tax charge based on the withholding tax
on loans to employees and executives to the extent of Rs. 17,430, which were maintained. EPCL filed deductible considering this as a minimum tax liability of EETPL as per the applicable provisions of the
a reference with HCS against the additions maintained by ATIR. Likewise, the tax department has also Ordinance.
filed reference with HCS against the order passed by the ATIR in favour of EPCL. The Group, based on
the advice of EPCL's tax consultants, is confident that the ultimate outcome of the aforementioned 42.8 Engro Energy Limited (EEL) and its subsidiary companies
matters would be favorable and, accordingly, has not recognized the effects for the same in these
consolidated financial statements. 42.8.1 In 2021, the ACIR under section 122 (5A) of the Ordinance, amended the tax return for the tax year
2020 vide order dated September 28, 2021 (Rectified Order November 8, 2021) and made certain
42.6.4 DCIR through an order dated November 26, 2009, raised a tax demand of Rs. 213,172 from EPCL for additions and disallowances that primarily pertains to profit on debt on account of loans from the
tax year 2008. The demand arose as a result of additions on account of trading liabilities of Rs. 47,582 Holding Company claimed as a deduction and reciepts on account of project management services to
under Section 34(5) of the Ordinance, disallowance of provision for retirement benefits of Rs. 5,899; be taxed under Normal Tax Regime (NTR) / Minimum Tax Regime (MTR). EEL filed an appeal before
addition of imputed interest on loans to employees and executives of Rs. 16,069 to income, CIR(A) dated October 26, 2021, which is pending for hearing.
disallowance of finance cost of Rs. 134,414 and disallowance of adjustment of minimum tax paid for
tax years 2004 to 2007 against the above demand. 42.8.2 EPTL's income tax return for tax year 2020 has been amended under section 122(5) of the Ordinance.
The ACIR has issued order dated August 30, 2021, under which other income has been taxed which
EPCL filed an appeal against the aforesaid order before the CIR(A) but discharged the entire demand was partially treated by EPTL as exempt business income while the remaining was set-off against
through adjustment against assessed refunds of Rs. 180,768 and payment of the balance of Rs. business losses. This has resulted in a tax demand of Rs. 190,963. Based on the advice of its tax
32,404 ‘under protest’. Through the appellate order, the CIR(A) maintained certain additions advisor, EPTL has filed an appeal before CIR(A) dated September 8, 2021, for which hearing was held
aggregating Rs. 189,810 including finance cost amounting to Rs. 134,414 and remanded back the on December 29, 2022 and is reserved for order. EPTL based on the advice of its tax advisor, is
issue of imputed interest on loans to employees and executives and directed the DCIR to allow credit confident that chances of ultimate success are good, hence, no provision has been made in this
of the minimum tax charged for the period from tax years 2004 to 2007. An appeal against the said respect in these consolidated financial statements.
appellate order was filed by EPCL before the ATIR. The department also filed an appeal against the said
appellate order challenging the actions of the CIR(A). 42.8.3 In 2020, the ACIR under section 122 (5A), amended the tax return for the tax year 2017 vide order
dated November 30, 2020 and made certain additions and disallowances that primarily pertains to
In 2013, the ATIR issued an order whereby the aforementioned appeal was disposed of by accepting apportionment of administrative expenses against profit on debt and reciepts on account of project
EPCL’s position on all the disallowances made earlier except for additions on account of trading management services to be taxed under Normal Tax Regime (NTR) / Minimum Tax Regime (MTR). EEL
liabilities to the extent of Rs. 20,280 and minimum turnover tax for tax years 2004 to 2007 to the extent has filed an appeal before CIR(A) dated December 28, 2020, which was heard on December 31, 2021
of Rs. 26,992 which were maintained. and is pending adjudication.
In 2013, EPCL filed a reference with the HCS against the additions maintained by ATIR. Likewise, the 42.8.4 EEL's income tax return for the tax year 2016 was selected for audit under section 214C of the
tax department also filed reference with the HCS against the order passed by the ATIR in favor of the Ordinance. The DCIR after conducting audit made certain additions and disallowances, and hence,
EPCL. In 2018, the HCS disposed of EPCL's appeal on the ground that the issues raised by EPCL amended the return filed by EEL vide order dated November 2, 2018, framed under section 122(1)/(5)
requires factual verification whereas the petition of the tax department is still pending before the HCS. of the Ordinance. These additions primarily relate to treating reimbursement from subsidiary as
The Group based on the advice of EPCL's tax consultants, decided to accept the decision of the HCS services, additions on account of apportionment of administrative expenses and receipts on account
and accordingly, has recognized the provision of Rs. 108,882 in respect of additions maintained by of the project management services to be taxed under normal tax regime / minimum tax regime and
ATIR in these consolidated financial statements. resulted in tax demand of Rs. 80,888. EEL being aggrieved filed an appeal before the CIR(A). EEL also
approached the HCS for stay against recovery of demand which was duly granted till the adjudication
42.7 Elengy Terminal Pakistan Limited (ETPL) and its subsidiary company of appeal by the CIR(A).
42.7.1 EETPL's tax exemption period ended on March 28, 2020. In the post exemption period, EETPL applied ATIR annulled the order of DCIR and CIR(A) and the return position was reinstated vide appeal effect
for issuance of nil deduction certificate on the premise that its income from terminal services falls under order October 25, 2022. Appeal has been filed before the CIR(A) against the Order dated June 28,
clause 42 of Part IV of Second Schedule of the Ordinance. However, the Commissioner rejected the 2022 under section 4B of the Ordinance for the tax year 2016.
EETPL’s request. Thereafter, EETPL filed Revision Application with the Chief Commissioner Inland
Revenue, who maintained the action of the Commissioner. EETPL in consultation with the lawyer filed In 2019, EEL received an order from CIR(A) in which certain issues were remanded back to the DCIR
Constitution Petition before the HCS and through the interim orders HCS has directed SSGCL not to while the other issues were decided in favor of tax authorities. EEL filed an appeal before the ATIR on
withhold tax on payments made to EETPL, however, this is subject to submission of Bank Guarantee the issues decided against it which is currently pending. Based on the views of the tax advisors and

legal consultant of EEL, EEL's management is confident that EEL has a good case on merit and On March 15, 2022, the Classification Committee (CC) issued ruling, effective prospectively, on tea
expects a favorable outcome. Accordingly, no provision has been made in respect of the whiteners including 'Tarang'. CC therein reviewed its previous rulings and decided the matter against
aforementioned demand in these consolidated financial statements. the taxpayers. On October 28, 2022, the Lahore High Court (LHC) passed an order setting aside the
ruling dated March 15, 2022 and remanded back the case to the Collector of Customs to re-adjudicate
42.8.5 The ACIR through separate show cause notices dated December 11, 2017 and December 12, 2017, the matter as per the procedure prescribed under the law. Pursuant to the order of the LHC, if any
issued in respect of tax years 2012, 2013, 2015 and 2016, raised an issue with respect to the classification ruling is issued, the same would be applicable from the date of the final decision by the
inter-corporate dividend claimed as exempt. The ACIR also showed an intention to levy super tax on Collector of Customs. The Collector of Customs held various hearings and FCEPL has submitted its
dividend income for tax years 2015 and 2016. EEL challenged these notices before the HCS which has responses however decision of the Collector of Customs is pending. The Parties in LHC case have also
restrained the tax authorities from taking any coercive action including passing an order on the basis of further appealed the LHC's order in the SCP. Some dairy companies have further challenged LHC order
the said notices. Accordingly, no provision has been made in this respect in these consolidated financial in SCP on the ground that LHC direction to Collector of Customs to re-adjudicate the matter afresh is
statements. void and illegal.
42.8.6 EEL's income tax return for the tax year 2014 was selected for audit under section 214C of the 42.9.2 On January 29, 2009, DCIR reduced tax loss from Rs. 1,224,964 to Rs. 1,106,493 for the tax year
Ordinance. The DCIR after conducting the audit made certain additions and disallowances, and, hence 2007. Being aggrieved with the impugned order, FCEPL has filed appeal before the CIR(A) on March
amended the return filed by EEL vide order dated January 12, 2017, framed under section 122(1)/(5) of 11, 2009, which is pending for adjudication. However, FCEPL, based on the opinion of its tax
the Ordinance and raised a tax demand of Rs. 268,584. EEL being aggrieved filed an appeal before consultant, is confident of a favorable outcome of the appeal, and hence no provision has been
CIR(A). EEL also approached the HCS for a stay against recovery of said demand which was duly recognized in these consolidated financial statements.
granted till the adjudication of appeal by the CIR(A).
42.9.3 FCEPL in accordance with section 59B ‘Group Relief’ of the Ordinance had surrendered to Holding
In 2019, EEL received an order of CIR(A) in which certain issues were remanded back to the DCIR while Company, its tax losses amounting to Rs. 4,288,134 out of the total tax losses of Rs. 4,485,498 for the
other issues were decided in favour of tax authorities. EEL filed an appeal before the ATIR on the issues financial years ended December 31, 2006, 2007 and 2008 (i.e. tax years 2007, 2008 and 2009) for
decided against it which is currently pending. Based on the views of tax advisor and legal consultant of cash consideration aggregating to Rs. 1,500,847, being equivalent to tax benefit / effect thereof.
EEL, EEL's management believes that EEL has a good case on merits and expects a favourable
outcome. Accordingly, no provision has been made in respect of the aforementioned demand in these FCEPL had been designated as part of the Group of ECL by the Securities and Exchange Commission
consolidated financial statements. of Pakistan (SECP) through its letter dated February 26, 2010. Such designation was mandatory for
availing Group tax relief under section 59B of the Ordinance and a requirement under the Group
Associated Company and Joint Venture Companies Registration Regulations, 2008 notified by the SECP on December 31, 2008.
42.9 FrieslandCampina Engro Pakistan Limited (FCEPL) The ATIR, in respect of surrender of aforementioned tax losses by the FCEPL to the Holding Company
for the financial years ended December 31, 2006 and 2007, decided the appeals on July 1, 2010 in
Following is the position of FCEPL's open tax assessments: favor of the Holding Company, whereby, allowing the surrender of tax losses by FCEPL to the Holding
Company. The tax authority has filed reference application dated October 23, 2010 there against before
42.9.1 The DCIR issued show cause notices to FCEPL for sales tax on tea whitener and dairy drink product the HCS, which is under the process of hearings. On May 20, 2013, ATIR also decided similar appeal
i.e. ‘Tarang’ and ‘Omung’ respectively for year 2013 on October 17, 2017 and for years 2014, 2015 filed by the Holding Company for the year ended December 31, 2008 in favor of the Holding Company.
and 2016 on March 9, 2018 aggregating to Rs. 14,886,500 challenging the exemption / zero rating on FCEPL based on the merits of the case expects a favorable outcome of the matter.
these products. Against the show cause notices the FCEPL had filed Constitutional Petitions before
HCS for year 2013 on October 25, 2017 and for years 2014, 2015 and 2016 on March 15, 2018, and
had obtained an interim injunction against adverse action by tax authorities on the same day. The HCS
vide its order dated November 18, 2020 has upheld FCEPL’s view with respect to ‘Tarang’ in view of
the decision of the Classification Committee obtained by FCEPL on February 11, 2019. With respect to
‘Omung’ the HCS has suspended the notice, advising that the FBR may refer the matter to the
Classification Committee, for a decision afresh; and till such time no action can be taken against
FCEPL. The amount of show cause notices pertaining to 'Omung' aggregate to Rs. 1,480,841. In case
the Classification Committee (for Omung) decides against FCEPL, FCEPL can avail all legal remedies
available to it. FCEPL has filed an appeal against this decision with respect to Omung in the SCP.
Further, FBR has also challenged the order dated November 18, 2020 in the SCP. SCP disposed-off
cross appeals filed against the HCS order dated November 18, 2020. SCP has allowed the FECPL's
appeals and has set aside the notices related to Omung, whereas SCP dismissed the appeals of tax
department against 'Tarang'. After the SCP order, show cause notices issued to FECPL have been
completely set aside.

2022 2021
42.10 Relationship between tax expense and accounting profit -------------Rupees--------------
The tax on the Group's profit before tax differs from the theoretical amount that would arise using the Profit for the year, attributable to:
Group's applicable tax rate as follows: - continuing operations 24,331,981 27,912,231
- discontinued operations 71 29,283
2022 2021 24,332,052 27,941,514
-------------Rupees--------------
--------Number in thousands--------
Profit before taxation 68,200,884 71,239,689
Weighted average number of ordinary shares for
Tax calculated at the rate of 29% (2021: 29%) 19,778,256 20,659,510 determination of basic and diluted EPS 576,163 576,163
Effect of exemption from tax on certain income (5,716,960) (4,383,832)
Effect of applicability of Super tax, lower tax rate, Earnings per share in rupees - Basic and Diluted
Final Tax Regime and other tax credits / debits 1,520,586 2,129,559 - continuing operations 42.23 48.45
Prior year current and deferred tax charge 6,513,916 (1,461,515) - discontinued operations 0.00 0.05
Un-recoupable minimum turnover tax 4,870 5,298 42.23 48.50
Impact of change in tax rate (1,326,196) -
Tax effect of minimum tax liability on imports,
exports and local trading 897,734 541,986
Effect of surrender of tax losses (2,171,249) - 45. remuneration of CEO, directors and executives
Effect of expenses not allowed for tax 2,649,975 1,145,054
Others (61,254) 21,153 The aggregate amounts for remuneration, including all benefits, to chief executive and directors of the
Tax charge for the year 22,089,678 18,657,213 Holding Company and executives of the Group are given below:
2022 2021
43. profit from discontinued operations
Directors Executives Directors Executives
Chief Others Chief Others
As stated in note 1.3.3.1, the Board of Directors of EDL has decided to discontinue its operations. As Executive Executive
a result, financial performance of EDL has been classified as discontinued operations, a summary of
-----------------------------------------------------Rupees-------------------------------------------------------------
which is as follows:
2022 2021 Managerial remuneration 95,931 - 6,893,608 75,862 - 5,390,889
-------------Rupees-------------- Bonus 70,195 - 2,227,161 102,623 1,217,577
Retirement benefits funds - - 864,429 - - 705,922
Administrative expenses - (2,642) Fees - 136,242 53,474 - 103,458 -
Other operating expenses (197) (4,365) Advisory arrangement - 100,484 - - - -
Other income 268 32,389 Other benefits - - 467,584 - - 783,517
Profit from operations 71 25,382 Total 166,126 236,726 10,506,256 178,485 103,458 8,097,905
Finance cost - (7,308) Number of persons

Profit before taxation 71 18,074 including those who
Taxation - 11,209 worked part of the year 1 9 1,485 1 9 1,190
Profit for the year 71 29,283
Net cash inflow / (outflow) from operating activities 204 (21,688)
Net increase / (decrease) in cash generated by EDL 204 (21,688
(21,688)
45.1 The Group also makes contributions to pension and gratuity funds and provides certain household
44. earnings per share - basic and diluted items for use of some executives. The Group also provides certain household items for use of some
employees and Chief Executive. Cars are also provided for use of certain employees and directors. In
Basic earnings per share has been calculated by dividing the profit attributable to equity holders of the addition, directors of the Holding Company are also entitled for travelling benefits in respect of which
Group by weighted average number of ordinary shares in issue during the year. Rs. 318,498 (2021: Rs. 63,084) have been incurred. Further, an amount of Rs. 133,993 (2021: Nil) has
been recognized in these consolidated financial statements for the share based payment transactions.
As at December 31 , 2022, there is no dilutive effect on the basic earnings per share of the Group. Individual allocations of this amount will be determined upon completion of the vesting conditions.
Earnings per share is based on the following:

(Amounts in thousand) (Amounts in thousand) Defined Benefit Gratuity Defined Benefit Pension
Plan Funded Plan Funded (Curtailed)
45.2 Premium charged during the year in respect of directors indemnity insurance policy, purchased by the 2022 2021 2022 2021
Group, amounts to Rs. 506 (2021: Rs. 3,511). ---------------------Rupees---------------------
46.1.2 Consolidated Statement of Financial Position
46. retirement benefits reconciliation
46.1 Defined benefit plans Present value of defined benefit obligation 540,263 445,393 19,103 22,324
Fair value of plan assets (348,973) (333,472) (43,900) (42,821)
The Group offers a defined post-employment gratuity benefit to permanent management and Deficit / (Surplus) 191,290 111,921 (24,797) (20,497)
non-management employees. In addition, until June 30, 2005, EFert offered a defined Unrecognized asset - - 24,797 20,497
post-employment pension benefit to management employees in service which has been discontinued Net liability recognized in the consolidated
and the plan now only covers a handful of retired pensioners. statement of financial position 191,290 111,921 - -
The gratuity and pension funds are governed under the Trusts Act, 1882, Trust Deed and Rules of
Fund, the Act, the Ordinance and the Income Tax Rules, 2002.
Defined Benefit Gratuity Defined Benefit Pension
Responsibility for governance of plan, including investment decisions and contribution schedule lie with Plan Funded Plan Funded (Curtailed)
Board of Trustees of the Fund. 2022 2021 2022 2021
---------------------Rupees---------------------
The Group faces the following risks on account of defined benefit plans: 46.1.3 Movement in net liability recognized in
the Statement of Financial Position
Final salary risk - The risk that the final salary at the time of cessation of service is greater than what the
Group has assumed. Since the benefit is calculated on the final salary, the benefit amount would also Net liability at beginning of the year 111,921 35,966 - -
increase proportionately. Expense / (income) for the year 35,120 27,569 (2,278) (978)
Remeasurement loss to Other
Asset volatility - Most assets are invested in risk free investments of 3, 5 or 10 year Special Savings Comprehensive Income 44,249 58,542 2,278 978
Certificates, Regular Income Certificates, Defence Savings Certificates or Government Bonds. Payments made to outgoing members - (10,156) -
However, investments in equity instruments is subject to adverse fluctuations as a result of change in Net liability at end of the year 191,290 111,921 - -
the market price.
46.1.4 Movement in present value of defined
Discount rate fluctuation - The plan liabilities are calculated using a discount rate set with reference to benefit obligation
corporate bond yields. A decrease in corporate bond yields will increase plan liabilities, although this will
be partially offset by an increase in the value of the current plans’ bond holdings. As at beginning of the year 445,393 537,779 22,324 26,836
Current service cost 22,234 25,461 - -
Investment risks - The risk of the investment underperforming and not being sufficient to meet the Interest cost 52,335 45,479 2,400 2,118
liabilities. This risk is mitigated by closely monitoring the performance of investment. Benefits paid during the year (3,112) (214,711) (3,059) (3,192)
Remeasurement loss / (gain) to Other
Risk of insufficiency of assets - This is managed by making regular contribution to the Fund as advised Comprehensive Income 23,413 51,385 (2,562) (3,438)
As at end of the year 540,263 445,393 19,103 22,324
by the actuary.
In addition to above, the pension fund exposes the Group to Longevity Risk i.e. the pensioners survive
longer than expected.
46.1.1 Valuation results
The latest actuarial valuation of the defined benefit plans was carried out as at December 31, 2022,
using the Projected Unit Credit Method. Details of the defined benefit plans are as follows:

Defined Benefit Gratuity Defined Benefit Pension (Amounts in thousand)
2022 2021 2022 2021 46.1.10 The expected return on plan assets was determined by considering the expected returns available on
46.1.5 Movement in fair value of plan assets ---------------------Rupees--------------------- the assets underlying the current investment policy. Expected yields on fixed interest investments are
based on gross redemption yields as at the reporting date.
As at beginning of the year 333,472 511,969 42,821 38,820
Expected return on plan assets 39,449 43,371 4,678 3,096 46.1.11 Historical information of staff retirement benefits
Benefits paid during the year (3,112) (214,711) (3,059) (3,192)
Remeasurement (loss) / gain to Other 2022 2021 2020 2019 2018
Comprehensive Income (20,836) (7,157) (540) 4,097 -----------------------------Rupees-----------------------------
Defined benefit gratuity plans
As at end of the year 348,973 333,472 43,900 42,821
Present value of defined
46.1.6 Charge for the year benefit obligation (540,263) (445,393) (537,779) (517,729) (503,530)
Current service cost 22,234 25,461 - - Fair value of plan assets 348,973 333,472 511,969 306,420 364,649
Net Interest cost 12,886 2,108 (2,278) (978)
35,120 27,569 (2,278) (978) Deficit (191,290) (111,921) (25,810) (211,309) (138,881)
Defined Benefit Gratuity Defined Benefit Pension Defined benefit pension plan
Present value of defined
benefit obligation (19,103) (22,324) (26,836) (24,018) (24,600)
2022 2021 2022 2021
46.1.7 Principal actuarial assumptions used in Fair value of plan assets 43,900 42,821 38,820 38,277 38,104
the actuarial valuation
Surplus 24,797 20,497 11,984 14,259 13,504
Discount rate 13.25% 11.75% 13.25% 11.75%
Expected rate of return on plan assets
- per annum 13.25% 11.75% 13.25% 11.75%
46.1.12 Expected future cost / (reversal) for the year ending December 31, 2022 is as follows:
Expected rate of increase in future salaries 12.25% to 10.75% to (Rupees)
- per annum 13.25% 11.75% - -
Defined benefit gratuity plans 55,433
Defined Benefit Gratuity Defined Benefit Pension Defined benefit pension plan (3,087)
2022 2021 2022 2021
---------------------Rupees---------------------
46.1.8 Actual return on plan assets 19,572 36,214 7,581 7,193
46.1.9 Plan assets comprise of the following 2022 2021

Rupees (%) Rupees (%)
Defined Benefit Gratuity Plans
Debt 257,437 73.77% 240,397 72.09%
Equity 81,213 23.27% 92,699 27.80%
Others (including cash) 10,323 2.96% 376 0.11%
348,973 100% 333,472 100%
Defined Benefit Pension Plan
Debt 30,000 68.34% 42,821 100.00%
Others 13,900 31.66% - 0.00%
43,900 100% 42,821 100%

(Amounts in thousand) Defined Benefit Gratuity Defined Benefit Pension (Amounts in thousand)
2022 2021 2022 2021 46.2 Defined contribution plans
-----------------------Rupees-----------------------
46.1.13 Remeasurement recognized in Other 46.2.1 An amount of Rs. 944,603 (2021: Rs. 529,756) has been charged during the year in respect of defined
Comprehensive Income contribution plans maintained by the Holding Company.
2022 2021
Gain / (Loss) from change in -------------Rupees--------------
experience adjustments (22,983) (50,469) 1,332 (286) 47. cash generated from operations
Gain / (Loss) from change in Profit before taxation 68,200,884 71,239,689

financial assumptions (430) (916) 1,230 3,724 Add: Profit attributable to discontinued operations 71 29,283
Profit before taxation from continuing operations 68,200,955 71,268,972
Remeasurement of obligation (23,413) (51,385) 2,562 3,438
Adjustment for non-cash charges and other items:
Depreciation 14,619,166 11,889,284
Actual Return on plan assets 19,572 36,214 7,581 7,193 Depreciation on right-of-use asset 1,341,441 1,041,963
Expected Return on plan assets (39,449) (43,371) (4,678) (3,096) Amortization of intangible assets 412,260 244,983
Difference in opening fair value of plan assets (959) - (3,443) - Amortization of deferred income (360,721) (177,078)
Amortization of direct cost on FSRU 86,516 86,516
Remeasurement of plan assets (20,836) (7,157) (540) 4,097 Reversal of impairment of property, plant and equipment (1,458,297) -
Gain on disposal / write-off of property,
Effect of asset ceiling - - (4,300) (8,513) plant and equipment (260,370) (3,458)
Rent concession on lease liability (12,729) (24,205)
(44,249) (58,542) (2,278) (978)
Remeasurement loss on provision for GIDC (note 27.1) 1,102,678 1,401,519
Impairment of long term investment 35,212 691,371
46.1.14 Sensitivity analysis Financial charges 22,309,198 12,329,200
Default surcharge on GIDC (note 40) 503,733 156,583
Finance income on net investment in lease (6,139,802) (5,153,362)
The impact of 1% change in following variables on defined benefit obligation is as follows: Finance cost on lease liability 5,931,308 3,933,976
Income on deposits / other financial assets (14,358,511) (7,754,737)
Defined Benefit Gratuity Defined Benefit Pension Loss allowance on subsidy receivable from
Plan Funded Plan Funded (Curtailed) GoP (note 17.1) 522,936 557,700
Share of income from joint venture and
Increase in Decrease in Increase in Decrease in associates (note 41) (3,215,276) (3,226,697)
Assumption Assumption Assumption Assumption Foreign currency translation 3,787,394 707,197
------------------------------Rupees------------------------------ Working capital changes (note 47.1) 11,063,664 (26,136,852)
Discount rate 507,590 539,084 18,363 19,906 104,110,755 61,832,875
Long term salary increases 577,369 468,423 - - 47.1 Working capital changes
Long term pension increases - - 20,008 18,261
(Increase) / decrease in current assets
Gratuity Plans Pension Plan - Stores, spares and loose tools (524,683) (1,853,932)
46.1.15 Maturity Profile ----------------Rupees----------------- - Stock-in-trade 1,270,218 (12,476,649)
Time in years - Trade debts (20,303,880) (8,239,945)
1 72,110 3,370 - Loans, advances, deposits and prepayments (1,829,009) (181,043)
2 141,553 3,088 - Other receivables - net (10,338,918) (9,534,664)
3 45,410 2,810 (31,726,272) (32,286,233)
4 57,089 2,538 Increase in current liabilities
5-10 322,182 10,114
11-15 567,574 3,437 - Trade and other payables and provisions 42,789,936 6,149,381
16-20 706,977 1,121 11,063,664 (26,136,852)
20+ 2,787,164 445
Weighted average duration 8.09 3.87 t

-------------Rupees--------------
48. cash and cash equivalents 50. financial risk management
Cash and bank balances (notes 20 and 48.1) 44,986,627 40,452,829
Short term investments with original maturity 50.1 Financial risk factors
less than 3 months (note 19) 11,783,721 70,739,366
Short-term borrowings (30,174,299) (19,838,727) The Group's activities expose it to a variety of financial risks: market risk (including currency risk, interest
26,596,049 91,353,468 rate risk and other price risk), credit risk and liquidity risk. The Group's overall risk management
programme focuses on having cost efficient funding as well as to manage financial risk to minimize
earnings volatility and provide maximum return to shareholders.
48.1 Balances of Rs. 17,000 (2021: Rs. 17,000) held against bank guarantee in favor of custom authorities
to comply with interim orders of the Court and Rs. 40,752 (2021: Rs. 25,772) held against letter of
Risk management is carried out by the Group's Finance and Planning departments under policies
credit in favor of Custom Authorities have been excluded from cash and cash equivalents for the
approved by the Senior Management.
purpose of consolidated statement of cash flows.
2022 2021 a) Market risk
-------------Rupees--------------
49. financial instruments by category
i) Currency risk
49.1 Financial assets
- Financial assets at amortized cost Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
Financial asset at amortized cost 3,783,265 3,592,784 because of changes in foreign exchange rates.
Loans and advances 3,020,695 2,796,878
Net investment in lease 57,843,698 49,208,145 This exists due to the Group's exposure resulting from outstanding import payments, foreign
Trade debts 71,195,463 58,528,771 commercial transactions, foreign currency loan liabilities, related interest payments and foreign
Contract assets 14,124,293 6,487,105
Other receivables 16,848,807 12,261,027 currency bank accounts. A foreign exchange risk management policy has been developed and
Accrued income 2,269,306 633,633 approved by the management. The policy allows the Group to take currency exposure for limited
Short term investments 37,758,554 62,366,150 periods within predefined limits while open exposures are rigorously monitored. The Group
Cash and bank balances 44,986,627 40,495,601 ensures to the extent possible that it has options available to manage exposure, either through
251,830,708 236,370,094 forward contracts, options, interest rate swaps or prepayments, etc. subject to the prevailing
- Financial assets measured at fair value foreign exchange regulations.
through other comprehensive income
Pakistan Investment Bonds 29,380,322 -
At December 31, 2022, if the foreign exchange rate had weakened / strengthened by 1% against
Derivative financial instruments 737,319 92,805
Other investments 92,320 144,244 Pakistani Rupee with all other variables held constant, consolidated post tax profit for the year
30,209,961 237,049 would have been lower / higher by Rs. 59,820.
- Financial assets measured at fair value ii) Interest rate risk

through profit or loss
Mutual fund units 17,166,688 20,005,901 Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
Pakistan Investment Bonds 1,799,903 - fluctuate because of changes in market interest rates. The Group's interest rate risk arises from
18,966,591 20,005,901
short and long-term borrowings and short term investments. These are benchmarked to variable
49.2 Financial liabilities rates which expose the Group to cash flow interest rate risk.
- Financial liabilities measured at amortized cost The Group analyses its interest rate exposure on a regular basis by monitoring interest rate trends
Borrowings 216,858,673 186,198,561 to determine whether to enter into hedging alternatives.
Trade and other payables 104,857,649 84,009,447
Lease liabilities 71,416,814 59,274,424 As at December 31, 2022, if interest rates had been 1% higher / lower with all other variables held
Accrued interest / mark-up 2,764,706 1,366,497 constant, consolidated post tax profit for the year would have been lower / higher by Rs. 778,452,
395,897,842 330,848,929
mainly as a result of interest rate exposure on variable rate borrowings.

iii) Other price risk The Group monitors the credit quality of its financial assets with reference to historical performance
of such assets and available external credit ratings. The carrying values of financial assets which are
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate neither past due nor impaired are as under:
because of changes in market prices (other than those arising from currency risk or interest rate risk), 2022 2021
whether those changes are caused by factors specific to the individual financial instrument or its -------------Rupees--------------
issuer, or factors effecting all similar financial instruments traded in the market. The Group is exposed
to price risk on its mutual fund investments. Loans and advances 3,020,695 2,796,878
Trade debts 29,963,359 20,817,542
As at December 31, 2022, if net asset value had been 1% higher / lower with all other variables held Contract assets 14,124,293 6,487,105
constant, consolidated post tax profit for the year would have been lower / higher by Rs. 11,747. Other receivables 9,264,012 2,127,193
Short term investments 26,674,249 59,630,819
Bank balances 44,973,038 40,483,497
b) Credit risk Accrued income 2,269,306 633,633
130,288,952 132,976,667
Credit risk represents the risk of financial loss being caused if counter party fails to discharge an
obligation.
The credit quality of receivables can be assessed with reference to their historical performance with
no or negligible defaults in recent history. Investments in Pakistan Investment Bonds and Treasury
Credit risk arises from deposits with banks and financial institutions, trade debts, loans, advances,
Bills are government guaranteed. The credit quality of Group's bank balances and short term
deposits, bank guarantees and other receivables. The credit risk on liquid funds is limited because
investments can be assessed with reference to external credit ratings as follows:
the counter parties are banks with a reasonably high credit rating or mutual funds which in turn are
deposited in banks and government securities. The Group maintains internal policy to place funds
with commercial banks and mutual funds of asset management companies having a minimum short Bank / financial Institution Rating Rating
term credit rating of A1 and AM3 respectively. However, the Group maintains operational balances agency Short term Long term
with certain banks of lower rating for the purpose of effective collection of bank guarantees and to
cater to loan disbursements. ABL Asset Management Company Limited PACRA - AM1
Al Baraka Bank (Pakistan) Limited VIS A-1 A+
Allied Bank Limited PACRA A1+ AAA
The Group's fertilizer segment is exposed to concentration of credit risk on its trade debts by virtue Askari Bank Limited PACRA A1+ AA+
of all its customers being agri-based businesses in Pakistan. However, this risk is mitigated by Bank Alfalah Limited PACRA A1+ AA+
applying individual credit limits and by securing a majority of trade debts against bank guarantees Bank Al Habib Limited PACRA A1+ AAA
and inland letter of credits. Bank Islami Pakistan Limited PACRA A1 A
Bank of China FITCH F1+ A+
The Group's power segment is not exposed to any credit risk on its trade debts as these are secured Bank of Khyber PACRA A-1 A
by sovereign guarantee from the Government of Pakistan. CIMB Bank Berhad Moody's P-2 A3
Citibank N.A. Moody's P-1 Aa3
Dubai Islamic Bank Pakistan Limited VIS A1+ AAA
The Group's polymer / chemical segment is not materially exposed to credit risk on trade debts as Faysal Bank Limited PACRA A1+ AA
unsecured credit is provided to selected parties with no default in recent history and a major part is Habib Bank Limited JCR-VIS A1+ AAA
secured by bank guarantees. Habib Metropolitan Bank Limited PACRA A1+ AA+
HBL Asset Management Limited JCR-VIS AM1 AM1
The Group's terminal segment is not materially exposed to credit risk on trade debts, other and lease Industrial and Commercial Bank of China Moody P-1 A2
receivables from SSGC considering history, no default has been made by the customer and JS Bank Limited PACRA A1+ AA-
payments are received on a timely basis. Mashreq Bank Moody's P-2 Baa1
MCB Bank Limited PACRA A1+ AAA
MCB Islamic Bank Limited PACRA A-1 A
The Group's connectivity and telecom segment is not materially exposed to credit risk on balances Meezan Bank Limited JCR-VIS A1+ AAA
with banks and financial institutions, deposits, trade debts and other receivables. National Bank of Pakistan PACRA A1+ AAA
National Investment Trust Limited PACRA - AM1

Bank / financial Institution Rating Rating 50.2 Capital risk management

agency Short term Long term
The Group's objective when managing capital are to safeguard the Group's ability to continue as a
Pak Brunei Investment Company Limited JCR-VIS A1+ AA+ going concern in order to provide returns for share holders and benefit for other stake holders and to
Pak China Investment Company Limited JCR-VIS A1+ AAA maintain an optimal capital structure to reduce the cost of capital.
Pak Kuwait Investment Company (Private) Limited PACRA A1+ AAA
Pak Oman Investment Company Limited JCR-VIS A1+ AA+
Samba Bank Limited JCR-VIS A-1 AA The Group manages its capital structure and makes adjustments to it in the light of changes in
Silk Bank Limited JCR-VIS A2 A- economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend
Soneri Bank Limited PACRA A1+ AA- payment to shareholders or issue new shares.
Standard Chartered Bank (Pakistan) Limited PACRA A1+ AAA
Summit Bank Limited JCR-VIS A-3 BBB- The management seeks to maintain a balance between higher returns that might be possible with
The Bank of Punjab PACRA A-1+ AA+ higher levels of borrowings and the advantages and security afforded by a sound capital position.
UBL Fund Managers Limited JCR-VIS AM1 AM1
Mobilink Microfinance Bank PACRA A-1 A
Telenor Microfinance Bank PACRA A-1 A The regulatory regime in which the Group's power segment operates, renders the value of the equity
United Bank Limited JCR-VIS A1+ AAA to a bond given the guaranteed IRR of 15% with an indexation allowed under the Power Purchase
Agreement for changes in US $ / PKR exchange rate.
c) Liquidity risk The Group's strategy is to ensure compliance with agreements executed with financial institutions so
that the total long term borrowings to equity ratio does not exceed the lender covenants. The
Liquidity risk represents the risk that the Group will encounter difficulties in meeting obligations proportion of borrowing to equity at year end was:
associated with financial liabilities. 2022 2021
-------------Rupees--------------
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the
availability of funding through an adequate amount of committed credit facilities. Due to dynamic Borrowings (note 23) 183,873,713 162,928,247
nature of the business, the Group maintains flexibility in funding by maintaining committed credit lines Lease liabilities (note 25) 71,416,814 59,274,424
available. Total borrowings 255,290,527 222,202,671
Equity 240,583,957 242,799,687
The Group's liquidity management involves projecting cash flows and considering the level of liquid 495,874,484 465,002,358
assets necessary to meet these, monitoring liquidity ratios against internal and external regulatory Gearing ratio 51.48% 47.79%
requirements and maintaining debt financing plans.
The table below analyses the Group's financial liabilities into relevant maturity groupings based on the The Group finances its operations through equity, borrowings and management of working capital with
remaining period at the reporting date to contractual maturity dates. The amounts disclosed in the a view to maintaining an appropriate mix between various sources of finance to minimize risk.
table are the contractual undiscounted cash flows.
51. fair value estimation
2022 2021
Maturity Maturity Maturity Maturity The carrying value of all financial assets and liabilities reflected in the financial statements approximate
upto after Total upto after Total their fair values. The table below analyses financial instruments carried at fair value by valuation method.
one year one year one year one year The different level have been defined as follows:
--------------------------------------------- Rupees -------------------------------------------------------
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (level1);
Financial liabilities
- Inputs other than quoted prices included within level 1 that are observable for the asset or liability,
Borrowings 63,268,513 165,197,151 228,465,664 52,258,880 143,349,916 195,608,796
Trade and other payables 104,857,649 - 104,857,649 84,009,447 - 84,009,447
either directly (i.e. as prices) or indirectly (i.e. derived from prices) (level 2); and
Lease Liability 12,794,103 86,187,057 98,981,160 10,405,735 78,538,247 88,943,982
Accrued interest / mark-up 2,764,706 - 2,764,706 1,366,497 - 1,366,497 - Inputs for the asset or liability that are not based on observable market data (level 3).
183,684,971 251,384,208 435,069,179 148,040,559 221,888,163 369,928,722

(Amounts in thousand) Level 1 Level 2 Level 3 Total (Amounts in thousand)
------------------------Rupees------------------------
Type of segments Nature of business
Fair value through profit or loss Polymer This part of the business manufactures, markets and sells Poly Vinyl
- Mutual fund units - 17,166,688 - 17,166,688 Chloride (PVC), PVC compounds, Caustic soda and related chemicals all
- Pakistan Investment Bonds - 1,799,903 - 1,799,903 over Pakistan and few Central Asian countries. The Company carrying on
- 18,966,591 - 18,966,591 the polymer business is listed on Islamic Index.
Fair value through other
comprehensive income Terminal This part of the business includes operating and maintaining integrated
- Derivative financial instruments - 737,319 - 737,319 liquid chemical terminal and storage farm, and LNG terminal for receipt,
- Pakistan Investment Bonds - 29,380,322 - 29,380,322 storage and regasification of LNG.
- Other investments - 92,320 - 92,320
- 30,209,961 - 30,209,961 Power and mining This part of the business includes power generation, distribution,
As at December 31, 2021 transmission and sale of electricity in Pakistan and operations and
Fair value through profit or loss management services in Pakistan and Nigeria.
- Mutual fund units - 20,005,901 - 20,005,901
Connectivity and telecom This part of the business includes buying, building, maintaining and
Fair value through other operating telecommunication infrastructure and anciliary products and
comprehensive income services.
- Derivative financial instruments - 92,805 - 92,805
- Other investments 139,244 5,000 - 144,244 Other operations It includes management of investments in associates and joint ventures
139,244 97,805 - 237,049 by the Holding Company. It also includes investments made in foods and
dairy segment.
Level 2 fair value have been determined on the basis of PKRV rates and closing net asset values for
government securities and mutual fund units respectively. Management monitors the operating results of the abovementioned segments separately for the
purpose of making decisions about resources to be allocated and of assessing performance. Segment
There were no transfers amongst the levels during the year. Further, there were no changes in the performance is evaluated based on operating profit or loss which in certain respects, as explained in
valuation techniques during the year. table below, is measured differently from profit or loss in the consolidated financial statements.
Segment results and assets include items directly attributable to a segment.
52. segment reporting
52.1 A business segment is a group of assets and operations engaged in providing products that are subject
to risks and returns that are different from those of other business segments. The management has
determined the operating segments based on the information that is presented to the Board of
Directors of the Group for allocation of resources and assessment of performance. Based on internal
management reporting structure and products produced and sold, the Group is organized into the
following operating segments:
Type of segments Nature of business
Fertilizer This part of the business manufactures, purchases and markets fertilizers.
The operations of this segment includes a wide range of fertilizer brands,
besides urea, which primarily comprises of Engro Zarkhez, Zingro and
Engro DAP optimized for local cultivation needs and demand. Further, the
segment is a leading importer and seller of phosphate products which are
marketed extensively across Pakistan as phosphatic fertilizers. The
Company carrying on the fertilizer business is listed on Islamic Index.

52.2 The following information presents operating results regarding operating segments for the year ended
December 31, 2022 and asset information regarding operating segments as at
December 31, 2022:
Fertilizer Fertilizer
Polymer Polymer
Terminal Power andTerminal
mining Connectivity
Power andandmining
telecom Connectivity
Other operations
and telecom Elimination
Other operations
- net Elimination
Consolidated- net Consolidated
2022 2021 2022 2021 2022 2021 2022
2022 2021
2021 2022
2022 2021
2021 2022
2022 2021
2021 2022
2022 2021
2021 2022
2022 2021
2021 2022 2021
---------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------- Rupees ---------------------------------------------------------------------------------------------------------------------------------
Rupees ---------------------------------------------------------------------------------------------------------------------------------
Revenue from external customers Revenue
(note 34) from external customers (note 34)
At a point in time At a point in time 157,016,931 132,363,138 157,016,931

81,982,766 132,363,138
69,941,017 81,982,766- 69,941,017
- - - - - -- 118,822- 75,246,438
- 24,992,776
118,822 (66,392,063)
75,246,438 (20,764,564)
24,992,776 247,854,072
(66,392,063) 206,651,189
(20,764,564) 247,854,072 206,651,189
Over time Over time - - 76,817- 80,661- 16,408,856
76,817 12,959,789
80,661 83,069,965
16,408,856 87,525,307
12,959,789 9,094,633
83,069,965 4,370,455
87,525,307 9,094,633
- 4,370,455
- (76,817)- - - 108,573,454
(76,817) 104,936,212
- 108,573,454 104,936,212
157,016,931 132,363,138 157,016,931
82,059,583 132,363,138
70,021,678 82,059,583
16,408,856 12,959,789
70,021,678 83,069,965
16,408,856 87,525,307
12,959,789 9,094,633
83,069,965 4,489,277
87,525,307 75,246,438
9,094,633 24,992,776
4,489,277 (66,468,880)
75,246,438 (20,764,564)
24,992,776 356,427,526
(66,468,880) 311,587,401
(20,764,564) 356,427,526 311,587,401
Segment gross profit / (loss) Segment gross profit42,847,140

/ (loss) 44,074,160 23,379,899
42,847,140 24,035,625
44,074,160 23,379,899
5,611,632 24,035,625
4,281,671 29,371,094
5,611,632 24,139,901
4,281,671 3,830,597
29,371,094 2,085,645
24,139,901 22,930,852
3,830,597 21,273,670
2,085,645 (23,352,168)
22,930,852 (20,435,947)
21,273,670 104,619,046
(23,352,168) 99,454,725
(20,435,947) 104,619,046 99,454,725
Segment expenses - net off other Segment

income expenses -(14,979,123)
net off other income
(13,655,222) (14,979,123)
(5,029,383) (13,655,222)
(3,439,552) (5,029,383)
(546,548) (3,439,552)
(723,140) 2,267,909
(546,548) 1,096,415
(723,140) (795,503)
2,267,909 (929,772)
1,096,415 (8,235,648)
(795,503) (4,881,378)
(929,772) 1,135,225
(8,235,648) (4,881,378)
997,389 (26,183,071)
1,135,225 (21,535,260)
997,389 (26,183,071) (21,535,260)
Interest income Interest income 1,838,431 1,631,204 1,437,332

1,838,431 1,294,603
1,631,204 1,437,332
692,804 1,294,603
486,850 3,527,054
692,804 1,065,730
486,850 3,527,054
546,632 1,065,730
835,351 7,533,956
546,632 4,121,683
835,351 (1,217,698)
7,533,956 (1,510,136)
4,121,683 14,358,511
(1,217,698) 7,925,285
(1,510,136) 14,358,511 7,925,285
Finance cost (note 40) Finance cost (note 40)(2,621,808) (1,602,197) (3,091,904)
(2,621,808) (1,903,508)
(1,602,197) (3,091,904)
(965,141) (1,903,508)
(811,304) (18,846,137)
(965,141) (11,755,063)
(811,304) (3,603,487)
(18,846,137) (2,711,648)
(11,755,063) (3,603,487)
(847,870) (2,711,648)
(309,622) 1,232,108
(847,870) 1,819,284
(309,622) (28,744,239)
1,232,108 (17,274,058)
1,819,284 (28,744,239) (17,274,058)
Loss allowance on subsidy receivable

Lossfrom
allowance
GoP on subsidy
(522,936)
receivable from
(557,700)
GoP (522,936)
- (557,700)
- -- - - - - - -- -- - -- -- -- (522,936)
- (557,700)
- (522,936) (557,700)
Share of income from Share of income from

joint venture and associates (note joint
41) venture and associates (note
- 41) - -- -- 1,222,769
- 1,175,457
- 1,008,703
1,222,769 1,331,413
1,175,457 1,008,703
- 1,331,413
- 983,804
- 719,827
- 983,804
- 719,827
- 3,215,276
- 3,226,697
- 3,215,276 3,226,697
Reversal of impairment of property,Reversal

plant of impairment of property, plant
and equipment (note 4.5) and equipment (note 4.5) - - -- -- -- - - - - - -- -- 1,458,297
- -- 1,458,297
- -- 1,458,297
- -- 1,458,297 -
Income tax (charge) / credit (note 42)

Income tax (charge) (10,558,414)
/ credit (note 42) (8,797,588) (10,558,414)
(5,006,829) (4,926,657)
(8,797,588) (5,006,829)
(2,323,766) (1,672,342)
(4,926,657) (1,976,879)
(2,323,766) (1,230,392)
(1,672,342) (1,976,879)
308,915 (1,230,392)
139,515 (2,391,416)
308,915 (1,761,716)
139,515 (2,391,416)
(141,289) (1,761,716)
(408,033) (22,089,678)
(141,289) (18,657,213)
(408,033) (22,089,678) (18,657,213)
Segment profit / (loss) after tax Segment profit / (loss) after tax
- continuing operations - continuing operations
16,003,290 21,092,657 11,689,115
16,003,290 15,060,511
21,092,657 11,689,115
3,691,750 15,060,511
2,737,192 15,351,744
3,691,750
q 14,648,004
2,737,192 15,351,744
287,154 q 14,648,004
(580,909) 21,431,975
287,154 19,162,464
(580,909) (22,343,822)
21,431,975 (19,537,443)
19,162,464 (22,343,822)
46,111,206 52,582,476
(19,537,443) 46,111,206 52,582,476
Segment gain / (loss) - discontinued

Segment
operations
gain / (loss) - discontinued
- operations - -- -- -- - - - - - 71- 29,283- 71
- 29,283
- -- -- 71
- 29,283
- 71 29,283
16,003,290 21,092,657 11,689,115

16,003,290 15,060,511
21,092,657 11,689,115
3,691,750 15,060,511
2,737,192 15,351,744
3,691,750 14,648,004
2,737,192 15,351,744
287,225 14,648,004
(551,626) 21,431,975
287,225 19,162,465
(551,626) (22,343,822)
21,431,975 (19,537,443)
19,162,465 (22,343,822)
46,111,277 52,611,759
(19,537,443) 46,111,277 52,611,759
Segment assets Segment assets 145,413,332 132,818,383 145,413,332

85,400,579 132,818,383
77,985,743 85,400,579
74,971,634 64,339,032
77,985,743 292,796,191
74,971,634 243,371,269
64,339,032 60,974,587
292,796,191 44,859,768
243,371,269 92,570,122
60,974,587 83,543,972
44,859,768 (38,699,719)
92,570,122 (36,669,948)
83,543,972 713,426,726
(38,699,719) 610,248,219
(36,669,948) 713,426,726 610,248,219
Investment in joint venture / Investment in joint venture /

associates associates - - -- -- -- - 7,696,482 - 6,722,991 - 7,696,482
- 6,722,991
- 28,292,444
- 27,349,835
- 28,292,444
- 27,349,835
- 35,988,926
- 34,072,826
- 35,988,926 34,072,826
Total segment assets Total segment assets

145,413,332 132,818,383 145,413,332
85,400,579 132,818,383
77,985,743 85,400,579
74,971,634 64,339,032
77,985,743 300,492,673
74,971,634 250,094,260
64,339,032 60,974,587
300,492,673 44,859,768
250,094,260 120,862,566
60,974,587 110,893,807
44,859,768 (38,699,719)
120,862,566 (36,669,948)
110,893,807 749,415,652
(38,699,719) 644,321,045
(36,669,948) 749,415,652 644,321,045
Total segment liabilities Total segment liabilities

100,359,904 85,731,575 100,359,904
58,278,863 48,017,833
85,731,575 58,278,863
67,330,086 56,715,706
48,017,833 228,595,228
67,330,086 178,169,148
56,715,706 42,760,262
228,595,228 27,071,529
178,169,148 26,155,440
42,760,262 17,079,157
27,071,529 (14,648,088)
26,155,440 (11,263,590)
17,079,157 508,831,695
(14,648,088) 401,521,358
(11,263,590) 508,831,695 401,521,358
Capital expenditure Capital expenditure 8,377,514 10,567,296 9,095,716

8,377,514 10,567,296
3,600,670 9,095,716
463,889 3,600,670
102,530 4,671,204
463,889 1,469,212
102,530 17,626,696
4,671,204 4,323,274
1,469,212 17,626,696
495,244 4,323,274
437,001 495,244
- 437,001
- 40,730,263
- 20,499,983
- 40,730,263 20,499,983
Impairment of long term investment

Impairment of long term investment
- - -- -- -- - - - 383,829 - -- 383,829
- - -- -- -- - 383,829
- - 383,829
Depreciation Depreciation 3,256,411 2,884,200 2,934,134

3,256,411 2,251,063
2,884,200 2,934,134
442,703 2,251,063
400,486 6,486,824
442,703 5,718,469
400,486 2,276,585
6,486,824 1,156,702
5,718,469 2,276,585
563,950 1,156,702
520,327 563,950
- 520,327
- 15,960,607
- 12,931,247
- 15,960,607 12,931,247
Amortization of intangible assets (note

Amortization
6.1) of intangible181,908
assets (note 6.1)144,891 181,908
97,446 144,891
33,740 97,446
12,332 33,740
9,250 64,171
12,332 26,741
9,250 10,811
64,171 2,749
26,741 54,424
10,811 31,478
2,749 (8,832)
54,424 (3,866)
31,478 412,260
(8,832) 244,983
(3,866) 412,260 244,983

52.3 Revenue derived from CPPA-G which is in excess of 10% or more of the Group's revenue amounting S. No. Name of Related parties
Direct shareholding %
Relationship
to Rs. 82,548,083 (2021: Rs. 87,119,198), attributable to power and mining segment. of the Holding Company
53. transactions with related parties 49 Mr. Ismail Mahmud N/A Director of Group Company
50 Mr. Javed Akbar N/A Director of Group Company
51 Mr. Nazoor Ali Baig N/A Director of Group Company
53.1 Following are the details of associated undertakings and other related parties with whom the Group 52 Mr. Noriyuki Koga N/A Director of Group Company
entered into transactions or had agreements and arrangements in place during the year: 53 Ms. Ayesha Aziz N/A Director of Group Company
54 Mr. Shahab Qader N/A Key management personnel
55 Mr. Abdul Qayoom N/A Key management personnel
Direct shareholding % 56 Mr. Adil Mushtaq N/A Key management personnel
S. No. Name of Related parties Relationship 57 Mr. Ahsan Zafar Syed N/A Key management personnel
of the Holding Company
58 Mr. Aneeq Ahmed N/A Key management personnel
59 Mr. Asghar Ali Khan N/A Key management personnel
1 Dawood Hercules Corporation Limited 37.22% Holding Company 60 Mr. Athar Abrar Khawaja N/A Key management personnel
2 Arabian Sea Country Club N/A Associated Company 61 Mr. Eram Hasan N/A Key Management Personnel
3 Engro Foundation N/A Associated Company 62 Mr. Fahd Khawaja N/A Key management personnel
4 FrieslandCampina Engro Pakistan Limited 39.90% Associated Company 63 Mr. Farooq Barkat Ali N/A Key Management Personnel
5 Habib Bank Limited N/A Associated Company 64 Mr. Farooq Nazim Shah N/A Key Management Personnel
6 Javed Akbar Associates (Private) Limited N/A Associated Company 65 Mr. Imran Ahmed N/A Key Management Personnel
7 Mitsubishi Corporation N/A Associated Company 66 Mr. Jahangir Piracha N/A Key management personnel
8 Pakistan Institute of Corporate Governance (PICG) N/A Associated Company 67 Mr. Kalimuddin A Khan N/A Key management personnel
9 Pakistan Stock Exchange - PSX N/A Associated Company 68 Mr. Khawaja Bilal Hussain N/A Key Management Personnel
10 Reon Energy Limited N/A Associated Company 69 Mr. Khawaja Bilal Mustafa N/A Key Management Personnel
11 Siddiqsons Energy Limited N/A Associated Company 70 Mr. Khusrau Nadir Gilani N/A Key Management Personnel
12 Signify Pakistan Limited N/A Associated Company 71 Mr. Mahmood Siddiqui N/A Key management personnel
13 Sindh Engro Coal Mining Company Limited N/A Associated Company 72 Mr. Mohammad Omer N/A Key management personnel
14 Sui Southern Gas Company Limtited - SSGC N/A Associated Company 73 Mr. Mohammed Saqib N/A Key management personnel
15 Thar Foundation N/A Associated Company 74 Mr. Muhammad Idrees N/A Key Management Personnel
16 Thar Power Company Limited N/A Associated Company 75 Mr. Muhammad Majid Latif N/A Key Management Personnel
17 Vopak LNG Holding B.V., incorporated in the Netherlands N/A Associated Company 76 Mr. Muhammad Saad Khan N/A Key Management Personnel
18 Engro Vopak Terminal Limited 50% Joint Venture 77 Mr. Nadir Salar Qureshi N/A Key Management Personnel
19 Mr. Ghias Khan N/A Chief Executive Officer 78 Mr. Rizwan Masood Raja N/A Key Management Personnel
20 Mr. Mazhar Abbas Hasnani N/A Chief Financial Officer 79 Mr. Salman Hafeez N/A Key management personnel
21 Dawood Corporation (Private) Limited 0.01% Common Directorship 80 Mr. Shahzad Nabi N/A Key Management Personnel
22 Hagler Bailly Pakistan N/A Common Directorship 81 Mr. Shariq Abdullah N/A Key Management Personnel
23 Inbox Business Technologies Private Limited N/A Common Directorship 82 Mr. Sulaiman Ijaz N/A Key Management Personnel
24 Karachi School for Business & Leadership N/A Common Directorship 83 Mr. Syed Abbas Raza N/A Key management personnel
25 Overseas Investors Chamber of Commerce & Industry N/A Common Directorship 84 Mr. Syed Ali Akbar N/A Key management personnel
26 Pakistan Oxygen Limited N/A Common Directorship 85 Mr. Syed Ammar Shah N/A Key management personnel
27 Dawood Investments 2.01% Common Directorship 86 Mr. Syed Manzoor Hussain Zaidi N/A Key Management Personnel
28 Tenaga Generasi Limited N/A Common Directorship 87 Mr. Syed Mohsin Hassan N/A Key management personnel
29 The Dawood Foundation N/A Common Directorship 88 Mr. Syed Zaheer Mehdi N/A Key Management Personnel
30 The Karachi Education Initiative N/A Common Directorship 89 Mr. Tariq Zafar N/A Key Management Personnel
31 Mr. Abdul Samad Dawood 0.29% Director 90 Mr. Yusuf Siddiqui N/A Key Management Personnel
32 Mr. Hussain Dawood 2.90% Director 91 Ms. Ekta Sitani N/A Key Management Personnel
33 Mr. Khawaja Iqbal Hassan 0.01% Director 92 Ms. Fatima Khushnud N/A Key Management Personnel
34 Mr. Mohammad Abdul Aleem 0.04% Director 93 Ms. Nida Fatima Hashmi N/A Key management personnel
35 Mr. Rizwan Diwan N/A Director 94 Ms. Rabia Wafah Khan N/A Key management personnel
36 Mr. Shahzada Dawood 1.00% Director 95 Ms. Rizwana Halepoto N/A Key management personnel
37 Ms. Dominique Russo N/A Director 96 Ms. Shomaila Loan N/A Key Management Personnel
38 Ms. Henna Inam N/A Director 97 Mr. Vaqar Zakaria N/A Key Management Personnel
39 Ms. Sabrina Dawood 0.64% Director 98 Ms. Fauzia Viqar N/A Key Management Personnel
40 Ms. Azmeh Dawood 0.26% Daughter of director 99 Mr. Kaiser Bengali N/A Key Management Personnel
41 Mrs. Ayesha Dawood N/A Spouse of director 100 Ms. Nausheen Ahmed N/A Key Management Personnel
42 Mrs. Humera Aleem 0.01% Spouse of director 101 Mr. Kan Li N/A Key Management Personnel
43 Mrs. Kulsum Dawood 1.26% Spouse of director 102 Mr. Xiangwei Duan N/A Key Management Personnel
44 Dr. Shamshad Akhtar N/A Director of Group Company 103 Mr. Xinjie Wei N/A Key Management Personnel
45 Mr. Asad Said Jafar N/A Director of Group Company 104 Mr. Sami Aziz N/A Key Management Personnel
46 Mr. Asim Murtaza Khan N/A Director of Group Company 105 Mr. Wang Pu N/A Key Management Personnel
47 Mr. Feroz Rizvi N/A Director of Group Company 106 Mr. Amir Qasim N/A Key Management Personnel
48 Mr. Hideki Adachi N/A Director of Group Company

S. No. Name of Related parties

Direct shareholding %
Relationship
53.2 Details of transactions with related parties during the year, other than those which have been disclosed
of the Holding Company elsewhere in these consolidated financial statements, are as follows:
107 Engro Corporation Limited - MPT Employees DC Gratuity Fund N/A Post Employement Benefits 2022 2021
108 Engro Corporation Limited - MPT Employees DC Pension Fund N/A Post Employement Benefits -------------Rupees---------------
109 Engro Corporation Limited Gratuity Fund N/A Post Employement Benefits
110 Engro Corporation Provident Fund N/A Post Employement Benefits Parent Company
111 Engro Fertilizers Limited NMPT Gratuity Fund N/A Post Employement Benefits
112 Engro Fertilizers Limited Pension Fund N/A Post Employement Benefits
113 Engro Foods Employees Gratuity Fund N/A Post Employement Benefits
Dividend paid 7,291,974 7,720,913
Expense in connection with advisory agreement 14,617 117,000
Reimbursements to Parent company 16,098 -
Associated Companies
Purchases and services 51,083,731 45,600,457

Donations 671,184 818,262
Payments against EPC contract - 289,825
Short term loan received 2,849,878 3,500,000
Repayment of overdraft facility 3,609,879 500,000
Reimbursement to associated companies 323,324 215,927
Expenses paid on behalf of associated companies 310,277 544,219
Dividends paid / payable 537,680 920,842
Loans repaid 113,052 98,083
Finance costs 4,170,368 2,280,518
Joint Venture
Purchase of services 3,178,688 2,540,891

Reimbursements 78,865 35,041
Dividend received 932,400 1,155,000
Expenses paid on behalf of joint venture company 399,456 177,884
Dividend paid 1,078,176 -
Retirement funds
Contribution to retirement benefit funds 1,050,298 1,013,252
Directors
Dividend paid 1,259,953 1,201,160

Dividend paid to key management personnel 15,750 -
Advisory arrangement 100,484 -
Directors' fees 136,242 106,659
Others
Other benefits paid 147,844 136,252

Remuneration of key management personnel 1,514,454 1,298,203
Reimbursement to key management personnel 1,808 1,458

53.3 Details of related parties incorporated outside Pakistan with whom the Group had transactions or 56. production capacity
arrangements in place are as follows: Designed
Annual Capacity Actual Production
GEL Utility China China East Engro Power Engro Power Engro Power Engro Power Engro Vopak LNG
Limited Machinery Resources Services Investment Services International Eximp Holding B.V. 2022 2021 2022 2021
Engineering Import & Export Limited (EPSL) International B.V. Holding B.V. Holding B.V. FZE
Urea (note 56.1) Metric Tons 2,275,000 2,275,000 1,954,528 2,104,722
Corporation Corporation (EPII B.V.) (EPSH B.V.) (EPIH)
Country of NPK (note 56.1) Metric Tons 100,000 100,000 137,075 144,564
Incorporation Nigeria People's People's United PVC Resin (note 56.1) Metric Tons 295,000 295,000 239,000 243,000
Republic of Republic of Netherlands Netherlands Netherlands Netherlands Arab Netherlands EDC (note 56.1) Metric Tons 127,000 127,000 102,000 94,000
China China Emirates Caustic soda (note 56.1) Metric Tons 106,000 106,000 97,000 92,000
% of holding 45% N/A N/A 100% 100% 100% 100% 100% N/A
(indirectly (indirectly through (indirectly (indirectly (Subsidi- (Associate)
Caustic flakes (note 56.1) Metric Tons 20,000 20,000 9,000 8,000
(indirectly (indirectly (indirectly
Basis of through through through through subsidiary) through through ary) VCM (note 56.1) Metric Tons 254,000 254,000 219,000 203,000
Relationship subsidiary) subsidiary) subsidiary) subsidiary) subsidiary) subsidiary) Power (note 56.2) Mega Watt Hours 7,139,758 7,141,295 4,454,614 5,076,068
Power Mega Watt 66 66 55 55
54. contributory retirement funds Milling / Drying unit of rice
processing plant (note 56.3) Metric Tons 414,000 414,000 87,856 148,839
The employees of the Group participate in the Provident Fund maintained by the Holding Company.
Monthly contributions are made both by the companies in the Group and the employees to the fund
maintained by the Holding Company at the rate of 10% of basic salary. 56.1 Production planned as per market demand and in house consumption needs.
The investments out of the provident funds have been made in accordance with the provisions of 56.2 Output produced by the plants of EPQL and EPTL is dependent on the load demanded by NTDC and
Section 218 of the Companies Act, 2017 and the conditions specified there under. plants' availability.
55. donations 56.3 Three months season design capacity and production is dependent on availability of rice paddy.
55.1 Donations include the following in which the Directors of the Holding Company or Group companies 56.4 The annual regassification capacity of EETPL as service provider to SSGCL is 4.5 MTPA and there has
are interested: been no shortfall during the year.
Director Interest Name of donee 2022
in Donee -----Rupees----- 57. number of employees of the group
Number of Average number of
Ghias Khan Director Engro Foundation 497,218 employees as at employees during the year
December December December December
55.2 During the year the Group made / accrued the following donations which are above Rs. 1,000 or 10% 31, 2022 31, 2021 31, 2022 31, 2021
of each component's total amount of donation:
Management employees 2,342 2,297 2,290 2,217
Non-management employees 472 469 471 469
Engro Foundation 497,218
2,814 2,766 2,761 2,686
Thar Foundation 167,619
R. B. Udhawdas Tarachand Hospital,DC Office, Shikarpur 49,728 58. seasonality
Prime Minister Flood Relief Fund 22,845
The Group's fertilizer business is subject to seasonal fluctuations as a result of two different farming
Flood Relief 12,582 seasons viz, Rabi (from October to March) and Kharif (from April to September). On an average, fertilizer
NED University of Engineering & Technology 9,890 sales are more tilted towards Rabi season. The Group manages seasonality in the business through
Developments in Literacy 2,150 appropriate inventory management.
The Kidney Centre Post Graduate 2,000
Lady Dufferin Hospital 1,500 The Group's agri business is subject to seasonal fluctuation as majority of paddy / unprocessed rice is
procured during the last quarter of the year which is the harvesting period for all rice varieties grown in
Strengthening Participatory Organization 1,213
Pakistan. However, rice is sold evenly throughout the year. The Group manages seasonality in the
Behbud Foundation 1,000 business through appropriate inventory management.

59. interest in joint arrangements 61. listing of subsidiary companies, associated companies and joint venture
During the year, EFert, Fauji Fertilizer Company Limited (Fauji) and Fatima Fertilizer Company Limited
(FATIMA) (collectively the Fertilizer Manufacturers) entered into a Framework Agreement dated Name of Subsidiaries Financial year end
November 30, 2022 (the Agreement) for Gas Pressure Enhancement Facilities (PEF) project. Under the Engro Fertilizers Limited (EFert) December 31
Agreement, the Fertilizer Manufacturers have decided to jointly develop and install pressure
EFERT Agritrade (Private) Limited (EAPL) December 31
enhancement facilities at Mari Petroleum Company Limited's (MPCL's) delivery node to sustain the
current level of pressure of gas supply from HRL reservoir of MPCL. Engro Polymer and Chemicals Limited (EPCL) December 31
Think PVC (Private) Limited December 31
All decisions with respect to the development and operations of PEF would be made only with Engro Peroxide (Private) Limited December 31
unanimous consent of the Fertilizer Manufacturers. Accordingly, PEF arrangement would be classified Engro Plasticizer (Private) Limited December 31
as a 'Joint Arrangement' in accordance with IFRS 11 - Joint Arrangements. Further, PEF would not be
established through a separate legal entity and consists of an asset i.e. PEF facility which will be jointly Engro Energy Limited (EEL) December 31
owned and operated by the Fertilizer Manufacturers, hence, the joint arrangement for establishment Engro Power Services Limited (EPSL) December 31
and operations of PEF has been classified as a 'Joint Operation' in these consolidated financial Engro Power International Holding B.V. (EPIH) December 31
statements. Current cost sharing percentages in PEF of EFert, Fauji and FATIMA are 33.9%, 47.7% and Engro Power Services Holding B.V. (EPSH B.V.) December 31
18.4%, respectively. The Group has recognized its share of jointly held asset in these consolidated
Engro Power Investment International B.V. (EPII B.V.) December 31
financial statements.
Engro Powergen Qadirpur Limited (EPQL) December 31
60. non-adjusting event after reporting date Engro Powergen Thar (Private) Limited (EPTPL) December 31
60.1 The Board of Directors of the Holding Company in its meeting held on February 15, 2023 has proposed Elengy Terminal Pakistan Limited (ETPL) December 31
a final cash dividend of Rs. 1 per share for the year ended December 31, 2022 amounting to Rs. Engro Elengy Terminal (Private) Limited (EETPL) December 31
576,163 for approval of the members at the Annual General Meeting to be held on March 30, 2023. Engro Eximp FZE (FZE) December 31
Engro LNG FZE (ELNG) December 31
60.2 The members of the Holding Company in its meeting held on January 26, 2023 have approved
purchase / buy-back by the Holding Company upto an aggregate number of 70,000,000 issued Engro Eximp Agriproducts (Private) Limited (EEAPL) December 31
ordinary shares of the Holding Company, having paid-up / face value of Rs. 10 each, representing Engro Connect (Private) Limited December 31
approximately 12.1% of the total issued and paid-up ordinary shares of the Holding Company, at the Engro Infiniti (Private) Limited December 31
spot / current share price acceptable to the Holding Company prevailing during the purchase period,
Engro Enfrashare (Private) Limited December 31
through the stock exchange.
Engro Energy Services Limited (EESL) December 31
Name of Joint Venture

Engro Vopak Terminal Limited (EVTL) December 31
Name of Associates
FrieslandCampina Engro Pakistan Limited (FCEPL) December 31
Sindh Engro Coal Mining Company Limited (SECMC) December 31
Gel Utility Limited (GEL) December 31
Siddiqsons Energy Limited (SEL) June 30
Pakistan Energy Gateway Limited (PEGL) December 31
Magboro Power Company Limited (MPCL) December 31

61.1 Set out below is summarised financial information for each subsidiary that has Non-Controlling 62. corresponding figures
Interests (NCI). The amounts disclosed for each subsidiary are before inter-company eliminations: Corresponding figures and balances have been rearranged and reclassified, wherever considered
necessary, for the purpose of comparison and better presentation, the effects of which are not material.
2022
EPQL EPTPL ETPL EFert EPCL
63. date of authorization for issue
------------------------------------------------Rupees------------------------------------------------
Total Assets 24,161,647 272,636,155 74,971,632 145,413,332 85,400,580 These consolidated financial statements were authorized for issue on February 15, 2023 by the Board
of Directors of the Holding Company.
Total Liabilities 11,056,858 206,364,041 67,330,086 100,359,904 58,278,865
Total Comprehensive Income 1,460,181 16,264,068 2,468,981 15,993,161 11,689,115
Total Comprehensive Income

allocated to NCI 454,262 8,115,770 1,086,352 6,993,809 5,121,001
Accumulated NCI 4,105,813 33,580,023 3,350,938 19,618,902 13,106,710
Cash and cash equivalents (5,934,338) 19,751,100 4,027,769 (4,096,566) 3,453,356
Cash (utilized in) / generated from

- operating activities 4,281,667 23,887,877 5,209,228 31,634,356 21,734,401
- investing activities (544,366) 6,766 (463,889) (18,926,865) (8,753,830)
- financing activities (4,963,631) (27,808,130) (3,828,703) (29,181,275) (15,550,460)
Dividend paid / payable to NCI (1,410,279) (12,078,738) (1,078,335) (7,883,006) (6,619,089)
Interest of NCI 31.11% 49.90% 44% 43.73% 43.81%
2021
EPQL EPTPL ETPL EFert EPCL
------------------------------------------------Rupees------------------------------------------------
Total Assets 27,444,638 223,245,066 64,339,032 132,818,383 77,966,040
Total Liabilities 11,266,830 157,734,827 56,715,706 85,731,575 47,998,130
Total Comprehensive Income 1,593,433 14,154,879 1,561,735 21,053,202 15,060,511
Total Comprehensive Income

allocated to NCI 495,445 7,063,635 687,163 9,832,729 6,573,746
Accumulated NCI 5,061,830 37,542,991 3,342,921 20,508,099 14,604,798
Cash and cash equivalents (4,708,006) 21,717,985 3,901,720 12,377,216 6,304,008
Cash (utilized in) / generated from

- operating activities 374,796 29,225,940 3,082,098 14,611,502 14,569,087
- investing activities (108,518) (1,372,270) (102,530) 16,027,644 (9,341,299)
- financing activities (1,368,880) (16,036,280) (2,396,996) (23,388,309) (13,334,631)
Dividend paid / payable to NCI 327,397 - 329,060 9,050,857 5,061,651

Interest of NCI 31.11% 49.90% 44% 43.73% 43.81% Director Chief Financial Officer President & CEO

proxy form
I/We
of being a member of ENGRO
CORPORATION LIMITED and holder of Ordinary Shares as per
share(Number of Shares)
Register Folio No. and/or CDC Participant I.D. No.
and Sub Account No. , hereby appoint of
or failing him/her of
as my/our proxy to vote for me/us and on my/our behalf at the Annual General Meeting of the
Company to be held on the 30th day of March, 2023, and at any adjournment thereof.
Signed this day of 2023.
WITNESSES:
1.Signature:
Name:
Address:
CNIC or
Signature
Passport No.
Signature should agree with the
2.Signature: specimen registered with the Company.
Name:
Address:
CNIC or
Passport No.
Note: Proxies, in order to be effective, must be received by the Company not less than 48 hours
before the meeting. A Proxy holder may not need to be a member of the Company.
CDC Shareholders and their proxies are each requested to attach an attested photocopy of their
Computerized National Identity Card or Passport with this proxy form before submission to the
Company.
annual report 2022 337

enabling growth
standard request form
circulation of annual audited accounts
The Share Registrar Dated: _________________

Engro Corporation Limited.
FAMCO Associates (Pvt.) Ltd.
8-F, Near Hotel Faran
Nursery, Block-6, P.E.C.H.S., Shahra-e-Faisal
KARACHI.
E-mail: [email protected]
2023 30 Telephone No. (9221) 3438 0101-5, 3438 4621-3
Dear Sir,
2023 Subject: Request for Hard Copy of Annual Report of Engro Corporation Limited.
I, ________________________________ S/o, D/o, W/o ________________________ being a registered

shareholder of Engro Corporation Limited with the particulars as mentioned below would request that
my name be added to the list of Shareholders of the Company who opt for delivery of a hardcopy of
the Annual Report of the Company and hereby request you send to me the Annual Report in hard copy
form at my registered address as contained in the member register instead of providing the same
through email.
Particulars
Name of Shareholder
Folio No. / CDC ID No.
CNIC/NICOP/ Passport No.
Land Line Telephone No. (if any)
Cell No. (if any)
Yours truly,
___________________________
Shareholder’s Signature
Copy to:
Company Secretary
8th Floor, The Harbour Front, Dolmen City
HC-3, Block 4, Clifton, Karachi-75600.


Engro

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engrocorp

The General Manager

For and on behalf of

To ensure prosperity for

Bank Al-Habib Limited Earnings per Share

Meezan Bank Limited auditors Cash Flow from Operations

02 engro corporation limited annual report 2022 03

Engro Friesland Engro Engro Elengy Engro

Engro Engro Engro

06 engro corporation limited annual report 2022 07

community ...nurtures passion to serve country,

08 engro corporation limited annual report 2022 09

Fertilizer Polymer 83,070

Engro Corporation Energy Employees

10 engro corporation limited

illuminated nearly 9,000,000* lives

operationalized carried out

*calculated using avg 6.4 people per household

12 engro corporation limited annual report 2022 13

Not pictured: Dominique Russo (Independent Director)

18 engro corporation limited annual report 2022 19

Mr. Abdul Aleem was Director and Chairman of

20 engro corporation limited annual report 2022 21

22 engro corporation limited annual report 2022 23

Mr. Hassan has previously served as a Member

He holds a diploma in Accountancy from the

24 engro corporation limited annual report 2022 25

Ms. Dominique Russo brings two decades of

26 engro corporation limited

Ghias Khan His leadership has helped position Engro

28 engro corporation limited annual report 2022 29

Today, we are humbled to be known as a

“RESOLVED THAT, approval of the members of Engro Corporation Limited (the

32 engro corporation limited annual report 2022 33

34 engro corporation limited annual report 2022 35

36 engro corporation limited annual report 2022 37

Sr. No Name of Associated Company

38 engro corporation limited annual report 2022 39

Amount in thousands Amount in thousands

40 engro corporation limited annual report 2022 41

42 engro corporation limited annual report 2022 43

(i) Category-wise amount of investment:

Financing limits for each associated company is as follows:

Name of Associated Company Amount in PKR

Engro Fertilizers Limited 12 billion

(iv) Particulars of collateral or security to be obtained in relation to the proposed investment:

44 engro corporation limited annual report 2022 45

training and education

46 engro corporation limited annual report 2022 47

agricultural value chain

environmental stewardship Percentage of Percentage of

48 engro corporation limited annual report 2022 49

Finance – 22.66% 12.43%

50 engro corporation limited annual report 2022 51

52 engro corporation limited annual report 2022 53

54 engro corporation limited

56 engro corporation limited

58 engro corporation limited annual report 2022 59

Each entity within Engro is committed to creating sustainable

With a dream of an uplifted society with health and education

62 engro corporation limited annual report 2022 63

V. We remain focused on building a sustainable import substitution model and an export-oriented