Roshan Packages : Transmission of Annual Report 2022

Head Office:

325 G-III, M. A Johar Town, Lahore. Pakistan | [phone] [e-mail] | www.roshanpackages.com.pk

TOWARDS A CIRCULAR ECONOMY

roshanpackagesltd RoshanPackages.LTD Roshan Packages Limited

ANNUAL REPORT 2022

ANNUAL REPORT 2022

In the linear economy, raw natural resources are taken, transformed into products and disposed off. On the other hand, a circular economy model aims to close the gap between the production and the natural ecosystems' cycles, ultimately eliminating 'waste'. Companies cannot create a circular economy on their own, and our stakeholders have an important role to play. We hope that along with our stakeholders, we can participate in this program in order to re-use, reduce and recycle, ultimately playing our part in fighting against climate change.

About This Report

Contents: This Report contains relevant background information about Roshan Packages Limited, and presents a comprehensive review of the Company's performance during the FY 2021-22, and its future plans. The financial data and figures are complemented by graphs, charts, and analyses to provide data visualization and necessary explanations. The write-ups capture the important aspects of the Company's operations in narrative form. The topics covered and where to find them in the Report have been provided on the next page.

Scope and Boundary: The Report covers the period from July 01, 2021 to June 30, 2022. However, subsequent events and developments up to the date of printing of the Report have been included, where relevant, to keep the information up-to-date. Financial analyses and reviews are based on the financial information contained in the approved Audited Financial Statements for the year ended June 30, 2022, with relevant comparative information. The Financial Statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. Additional data and information have been included in line with the best corporate reports criteria prescribed by the Joint Committee of The Institute of Chartered Accountants of Pakistan / Institute of Cost and Management Accountants of Pakistan and the Pakistan Stock Exchange. The information contained in the forward looking statements is valid only till the date of publication of this Report. There have not been any significant changes to the scope, boundary and reporting basis since the last reporting date.

External Assurances/Reviews: The Financial Statements have been audited and the Statement of Compliance with the Listed Companies (Code of Corporate Governance) Regulations 2019, has been reviewed by the Company's statutory auditors M/s. EY Ford Rhodes, Chartered Accountants, and their reports are a part of this Annual Report.

Disclaimer: All forward-looking statements are management's present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Forward looking statements should not be relied upon for making investment or other decisions as the statements reflect conditions only as of the date they were made.

Towards A Circular Economy

Conscious of our contribution to society and the environment, we seek to

continually expand our horizons while keeping sustainability and

diversity at the heart of our efforts.

Our cover, a crumpled piece of paper surrounded by lush leaves, represents the importance that we as a company place on waste as a solution to climate degradation. In particular, we believe in reusing and recycling waste paper and paper products to create packaging solutions following the principles of a Green Circular Economy.

Pulp and paper is the 3rd largest industrial polluter of air, water and soil and when it rots, it emits methane gas which is 25 times more toxic than CO2. Moreover, 42% of all global wood harvest is used to make paper i.e. paper production is one of the main causes of deforestation. Worse of all, demand for paper is expected to double before 2030.

However, the solution is simple and has been available for decades: recycling. Recycling 1 tonne of paper saves around 1400 liters of oil, 26,500 liters of water and 17 trees as well combating pollution and climate change caused by deforestation. In an effort to highlight this solution and the importance RPL places on it, we have chosen this simple yet effective image to represent us this year.

As the climate crisis deepens, we must all, as consumers, producers and individuals, play our part. As companies set ambitious goals to use more recycled content in their packaging, there is more need than ever for partnerships and investments. Together, we must develop the infrastructure and processes that allow us to recover high-quality material that can be used for recycled packaging, since Pakistan in particular lags behind the world.

Roshan Sun Tao Paper Mills (Pvt) Ltd (RSTPML), a subsidiary of Roshan Packages Limited, is set to become one of the largest recycling paper mills in Pakistan and aims to actively drive the changes needed to transform the Pakistani recycling system and move towards a circular economy. At RSTPML, we aim to collect waste from large companies and supply chains and reuse it to make recycled paper and ultimately recycled packaging, offering clean, green and innovative packaging solutions to our customers.

In the linear economy, raw natural resources are taken, transformed into products and disposed off. On the other hand, a circular economy model aims to close the gap between the production and the natural ecosystems' cycles, ultimately eliminating 'waste'. Companies cannot create a circular economy on their own, and our stakeholders have an important role to play.

We hope that along with our stakeholders, we can participate in this program in order to re-use, reduce and recycle, ultimately playing our part in fighting against climate change.

Our strategy to make this a reality is closed-loop recycling model: a process where waste is collected, recycled and then used again to make the same product it came from.

To stretch the use of recovered paper as a raw material in papermaking, it is imperative that paper is source segregated and collected from reliable sources. This means that every source

plays a crucial part in the paper recycling and paper making process's success and to achieve high recovery percentages of paper.

Through our collaboration, we hope that the used corrugated boxes we collect from supply chains, will be recycled and turned into new corrugated boxes in our packaging division, creating a real closed-loop solution for our customers.

As one of the leading packaging companies in Pakistan, with over 20 years of experience in recycling and waste management, we will try our best to find a way to make 100% of the resources you send us into something useful once more. Thus, reducing waste sent to landfill and reducing company's impact on the environment.

Table Of Contents		Table Of Contents
Section 1: Corporate Profile	06	Section 3: Financial Overview	52
Year at a Glance	07	Analysis of Financial Ratios and Summary	54
Company Story	08	Statement of Wealth Generated and Distributed	60
Geographical Presence	10	Dupont Analysis	61
Our Legacy	11	Free Cash Flows	62
Our Strategy	12	Share Price Sensitivity Analysis	63	0
Our Differentiation	13	Section 4: Stand Alone Financial Statements	64
00.
Major Products	14	Directors' Report	66	00.
RoshPack	16	Pattern of Shareholding	74	00.
Vision of Quality and Innovation	21	Corporate Social Responsibility	78	00.00.
Awards and Achievements	22	Risk and Opportunities	94	00.
Sustainability Reporting	24	Auditors Assurance Report on Compliance	95	00.
Section 2: Corporate Governance and Management	32	Statement of Compliance	96	00.
Company Information	34	Auditor's Report	100	00.
00.
Organogram	35	Financial Statements	105
Directors' Profile	36	Section 5: Consolidated Financial Statements	154	0
Board Committees	38	Director's Report	156	00.
Corporate Calendar	41	Auditor's Report	159	00.
00.
Chairman Review Report	42	Financial Statements	164	00.
Role of Chairman	43	Section 6: 19th Annual General Meeting	214	00.
Message from Chief Executive Officer	44	Notice of AGM (English)	216	00.
Role of Chief Executive Officer	46	Section 7: Urdu Content & Forms	224	00.
00.
Code of Conduct	48	Director's Report (Urdu)	231
Shareholders' Engagement	51	Notice of AGM (Urdu)	233
		Forms (Urdu & English)	234