Form ofProxy Pattern ofShareholding Notes totheFinancial Statements Statement ofChangesinEquity Statement ofCashFlows Statement ofProfitorLossandOtherComprehensiveIncome Statement ofProfitorLoss Statement ofFinancialPosition Auditors' Report totheMembers (CodeofCorporateGovernance)Regulations,2019 ofCompliancecontainedinListedCompanies Review Report ontheStatement (CodeofCorporateGovernance)Regulations,2019 Statement ofCompliancewithListedCompanies Graphical Illustration Decade ataGlance Horizontal Analysis Vertical Analysis Statement of Value Added &itsDistribution Directors’ Report Chairman’s Review Notice of Annual GeneralMeeting Shareholders Information Customers &ProductRange Company Profile Organization Structure Board Committees Board ofDirectors Company Information Core Values Code ofConduct Vision /Mission CONTENTS 104 71 70 69 68 67 66 61 60 58 56 54 52 50 49 27 23 16 15 14 12 09 06 05 04 03 02 11 01 ANNUAL REPORT 2020 02 BOLAN CASTINGS LIMITED to developandgrow. and other stakeholders, operate safely and encourage our employees systems so as to consistently meet the expectations of our customers We willpursueandcontinuouslyimprove ourqualitymanagement Quality Policy mission. ultimate and goals immediate its achieving for and profitability productivity,the improve to opportunities all of use make and Bolan Castings Limited will remain proactive in combating all threats Corporate Strategy thebestinterestofshareholders. while serving markets,export and local in diversification throughgrow to and high qualityvalueaddedproducts tothesatisfactionofcustomers To technology byofferingcompetitive bemarket leaderinfoundry Mission based engineeringproducts. To be a player in the global market by providing high quality foundry Vision SAFETY,HEALTH&ENVIRONMENT CORPORATE STRATEGY/QUALITYPOLICY VISION /MISSION Health l l l l Safety l l l Environment l l l l cannot betaken tofindasafewaydoourwork. time that important so not is production that believe We his fellowemployees. of welfare and safety the for and welfare, own his for both safely,working for responsible is employee individual Each We believethatallindustrialinjuriescanbeprevented. importance. paramount of is employees its of welfare and safety the that believes Limited Castings Bolan of management The is currently working is to currently achieve the environmental standards. The Company is committed to improve the environment and operational activitiesareenvironment friendly. plant Company's the that so made are efforts Continued that ittakes careoftheenvironment. ensure to efforts out all making is Limited Castings Bolan Insurance Scheme. Health and Life Group under insured are employees All provides medicalfacilitiesforitsemployees. which site plant the at clinic a has Limited Castings Bolan annual medicalcheckup. an through go Limited Castings Bolan of employees All Limited. Good health of employees is important very to Bolan Castings l l Company shallensurethathe/she: the of employee other and management director,senior Every Standards ofConduct and otheremployeesoftheCompany. management senior directors, the all to applicable is Code This Applicability and otheremployeesintheirdealingsonbehalfoftheCompany. management senior directors, of expected conduct standardsof integrity.describe Company's to the is Code this of purpose The compromisedGroupnever as and well as Company the of image fairly, diligently and courteously and in a manner that enhances the honestly,dealings business their conduct expectedto are openly, The directors, senior management and all other employees of BCL requirements. with allapplicablelegalandregulatory to conductbusinesswithhonestyandintegrityincompliance policy BCL's stakeholders.is other It and shareholders suppliers, of business conduct in its relationships with associates, customers, Bolan Castings Limited is (BCL) committed to the highest standards Purpose CODE OFCONDUCT in order toseek guidancefrom theBoard. promptlydisclosed be should interest of conflict a involve, to expected be reasonably may or involves that situation between personalinterestandtheCompany'sinterest.Any conflict a create might that activity any in engage not Shall business activitiesoftheCompany. third party, to,the which areinconsistentwith,orcontrary other customer,any indirectly,a vendor,or with supplier or directly either activities, business in engage not Shall l l l l l including otherrequirementsincidental thereto. policies, internal and standards guidelines, agreements, regulations, rules, laws, applicable all with comply Shall provide suchinformationtoothers. not shall and benefit personal other or financial for public, made is Company,it the before to pertaining information Shall refrainfrom insidertradingandshallnotusematerial opportunities andgain. business purpose, and shall not use them to pursue personal Company's the for effectively and reasonably utilized them have and assets propertyand Company's protectthe Shall or benefit. such confidential information is used for personal advantage no that ensure shall and mandated legally or authorized is business associates of the Company, except when disclosure or suppliers Company,customers, the its by her / him to entrusted information of confidentiality the maintain Shall person forpersonalgain. any influence manner any in or intimidate induce, harass, Shall notusehis/herrespectivepositiontoforce, coerce, 03 ANNUAL REPORT 2020 04 BOLAN CASTINGS LIMITED .Ethics&Integrity 1. .Responsibility 5. CustomerFocus 4. Excellence 3. ContinualImprovement 2. CORE VALUES standards. establish and maintain the highest professional and personal course the honest andethicalbehaviourinallouractivities.Choosing demonstrate will and achieved are Weresults how care do customers through quality and timely of delivery our products. our of satisfaction complete ensure citizen, corporate by manner responsible highly a in affairs our manage Wewill grow. customer that believe and organization customer-driven a are We with ourstakeholders. on us and is essential for maintaining long-term relationships can we do it better?". The quality we of do everything reflects thanasking"isitgoodenough?",wemustask,"how Rather competition. exceed and meet must products Our need. customers our to responds that product quality a provide activities. our of aspect every in excellence to committed are We profitability. and productivity increase to improvements seeking for processesall evaluate constantly to effort ongoing an is It workers. and involvesallemployeesfrom theCEOtoshopfloor functions all improve continually that activities to refers It the better'. The philosophyofcontinualimprovement isthe'changefor of theday’forcompetitivesuccess. manufacturing, in involved processes all in improvement Continual ensuring satisfaction Each that we take care of the environment, are a good of highest integrity is our intent and we will we and intent our is integrity highest of engineering one of us must make maximum efforts to efforts maximum make must us of one is our strength and motivates us to us motivates and strength our is or business management is ‘order .Teamwork 6. .MutualRespect 7. Responsiblity we will we We putalotofemphasisonteamworkbyrecognizingthat manner. exceptionalan in tasks performing diligently and team a as operational excellence willbeachievedbyworkingtogether thrive andmeetthechallengessetbyourcustomers. will workforce well-trained and motivated, highly secure, reward.A financial and growthprofessional development, leadership training, for opportunities provides and business. Ourworkenvironment respectsindividualtalents interest inthosewithwhomweworkanddo greatest asset and we will strive to exhibit care, concern and our are People Limited. Castings Bolan of member each W shareholders, ourfamiliesandoneother includes ourcustomers,suppliers,contractors,regulators, We haverespectforallstakeholders ofourbusinesswhich Ethics e care about the professional and personal well being of being well personal professionaland the about care e Excellence achieve more through teamwork. We feel that feel We teamwork. through more achieve Integrity BCL Team Work Customer . Focus Improvement Respect Continual Mutual Web Site Registered Office Share Registrar Bankers Legal Advisors Auditors Chief FinancialOfficer Company Secretary Board ofDirectors COMPANY INFORMATION www E-mail: [email protected] Fax :+92-853-363292 Tel :+92-853-364033,363296 Balochistan,Pakistan District Lasbela, Main RCDHighway, HubChowki, Fax: +92-21-34326053 Tel: +92-800-23275 Main Shahrah-e-F CDC House,99-B,Block-B,S.M.C.H.S. Limited CDC SharesRegistrarServices Bank ALHabibLimited Askari BankLimited F Meezan BankLimited Dubai IslamicBankPakistanLimited CharteredAccountants Bank AlfalahLimited MCB BankLimited Habib BankLimited M/s. RizwanManaiAssociates Advocate &Latif M/s. Latif M/s. A.F. Ferguson &Co. Syed SajidAli Mr. ArafatMushir r ai mn Director Director Director Director Director Director Mr. AamirAmin Syed JavaidAshraf Syed MuhammadIrfanAqueel Mr. UddinAnsari Laeeq Mr. SohailBashirRana Mr. KhalidHashmi Latif r ia he iaiChiefExecutive Chairman Mr. NisarAhmedMirani Mr. SikandarM.Khan aysal BankLimited .bolancastings.com aisal, Karachi 05 ANNUAL REPORT 2020 06 BOLAN CASTINGS LIMITED BOARD OFDIRECTORS Mr. LatifKhalidHashmi No CommitteeMembership Mr. Nisar Ahmed Mirani Chairman ofBoard's CommitteeforSupervision Mr. Sikandar M.Khan Currently noexternal appointment Currently National Management Foundation and Arabian Sea Country Club National ManagementFoundation andArabianSeaCountry TIPEG Intertrade DMCC, Pakistan Foundry Association and Director of NAMAL College, Chairman of Millat Tractors Ltd., Millat Equipment Ltd., Millat Industrial Products Ltd., External Appointments Committee Membership April 27,2016 Appointment Member ofAudit CommitteeandBoard's CommitteeforSupervision Committee Membership June 13,1993 Appointment External Appointments Committee Membership July 03,1982 Appointment TIPEG IntertradeDMCC Director of Millat Tractors Ltd., Millat Equipment Ltd., Millat Industrial Products Ltd., External Appointments Non ExecutiveDirector Chief ExecutiveOfficer Chairman /NonExecutiveDirector BOARD OFDIRECTORS Member ofAudit CommitteeandHumanResource andRemuneration Committee Syed MuhammadIrfan Aqueel Committee Member of Board's Committee for and Supervision Human Resource and Remuneration Mr. LaeeqUddin Ansari Member ofBoard's CommitteeforSupervision Mr. SohailBashir Rana Tools, Dies&MouldsCentre(KTDMC) Chief Executive OfficerofMillatTractors Ltd.andDirectorofMillatEquipmentLtd.,Karachi Intertrade DMCC,EtimaadEngineering(Pvt.)Ltd. Director ofMillatTractors Ltd.,MillatEquipmentIndustrialProducts Ltd.,TIPEG Intertrade DMCC,HyundaiNishatMotor(Pvt.)Ltd. Director ofMillatTractors Ltd.,MillatEquipmentIndustrialProducts Ltd.,TIPEG External Appointments Committee Membership October 28,2014 Appointment External Appointments Committee Membership June 13,1993 Appointment External Appointments Committee Membership June 13,1993 Appointment Non ExecutiveDirector Executive Director Non ExecutiveDirector 07 ANNUAL REPORT 2020 08 BOLAN CASTINGS LIMITED BOARD OFDIRECTORS Manufacturing CompanyLimited. Wheels Limited,Mitchell’sFruit Farm Limited,BataPakistanIndusDyeingand Chief FinancialOfficerofNationalInvestmentTrust LimitedandDirectorofBalochistan Member ofAudit Committee Mr. Aamir Amin Chairman ofAudit CommitteeandHumanResource andRemunerationCommittee Syed Javaid Ashraf Director ofKarachiTools, Dies&MouldsCentre(KTDMC) External Appointments Committee Membership March 18,2020 Appointment External Appointments Committee Membership October 28,2014 Appointment Independent Director Independent Director l l l l l l Terms ofReference Members Chairman Composition ofCommittee Audit Committee BOARD COMMITTEES of thecompany. Ensuring coordination between the internal and external auditors management's responsethereto. externaland by auditors issued letter management of Review (in theabsenceofmanagement,wherenecessary). audits andanymatterthattheauditorsmaywishtohighlight final and frominterim arising observations major of auditors external with discussion and audit external the Facilitating communication andpublication. Review of announcements preliminary of results prior to external Com (vi) standards. accounting applicable with Compliance (v) Any (iv) Goingconcernassumption. (iii) Signifi (ii) Majorjudgmentalareas. (i) focusing on: Directors, Boardof the by approvalcompany, their to prior the of statements financial interim and annual of Review company's assets. the safeguard to measures appropriate of Determination r ai mnIndependentDirector Non-Executive Director Mr. AamirAmin Syed MuhammadIrfanAqueel ydJvi srfIndependentDirector Mr Syed JavaidAshraf vi Allrelatedpartytransactions. (vii) ai hldHsm Non-Executive Director KhalidHashmi . Latif and regulatory requirements. and regulatory pliance with these regulations and other statutory other and regulations these with pliance hne i acutn plce ad practices. and policies accounting in changes at dutet rslig rm h audit. the from resulting adjustments cant l l l l l l l l l l audit reports. internal and directors boardof the by endorsement to prior Review of the company's statement on internal control systems adequate andeffective. payments, assets and liabilities and the reporting structure are and receipts sales, and purchases of recordingappropriate and timely for systems accounting controls, operational and Ascertaining that the internal control systems including financial power andmanagement'sresponsethereto. of abuse and corruption fraud, by characterized activities of investigations internal of findings major of Consideration appropriately placedwithinthecompany. is and resources adequate has function audit internal the that ensuring and procedures and framework reporting plan, audit audit, internal of extent and scope the of Review by theboard ofdirectors. Consideration of any other issue or matter as may be assigned itshallrecordotherwise thereasonsthereof. acts it where and committee audit the of recommendations the to consideration due give shall directors of board The external auditors in addition to audit of its financial statements. permissible to berenderedthecompanyby any service of provision the fees, audit removal, their auditors, external of appointment the directors of board the to Recommend measures. mitigating and remedial instituting recommend and matters other and financial improprietiesin potential or audit committeeinconfidence,concerns,ifany, aboutactual forstaffandmanagementtoreport Review ofarrangement of significantviolationsthereof. Monitoring compliance with these regulations and identification requirements. statutory relevant with compliance of Determination other external body. any to or auditors external the to matter any of remittance in consultation with the chief executive officer and to consider investigations on any matter specified by the board of directors, other or studies money for projects,value special Instituting 09 ANNUAL REPORT 2020 10 BOLAN CASTINGS LIMITED Chairman Board's Committee for Supervision (BCS) Board's CommitteeforSupervision l l l l l l Terms ofReference Members BOARD COMMITTEES Mr. SikandarM.Khan making recommendationsforchange. and Company the of structure Toorganizational the review between alldepartmentsoftheCompany. To ensure active co-ordination, cooperation and communication To ensure successful achievement of objectives of the Company. policies andprocedures. plan, corporate strategy,the of implementation Toensure against budget,forecastsandpreviousyearonmonthlybasis. technical, financial and administrative aspects of the Company, To review and monitor the periodic operating activities regarding contribute to planning the strategic direction of the Company. to Executives Senior Company's the Tofor forum a provide r ae di naiExecutive Director Non-Executive Director Non-Executive Director Mr. UddinAnsari Laeeq Mr. SohailBashirRana Mr. KhalidHashmi Latif Chairman /Non-Executive Director l l Terms ofReference Members Chairman Human Resource andRemuneration(HR&R)Committee l Mr. L board. resourcethe human to Recommending policies management (both executive andnon-executive directors). directors of remuneration determining for framework policy a approval and consideration for board the to Recommend IndependentDirector Syed MuhammadIrfanAqueel Syed JavaidAshraf audit. chief financialofficer, andheadofinternal companysecretary development, compensation(includingretirementbenefits)of evaluation, selection, the board the to Recommending aeeq UddinAnsari Non-Executive Director Executive Director ORGANIZATION STRUCTURE 11 ANNUAL REPORT 2020 12 BOLAN CASTINGS LIMITED COMPANY PROFILE l l management facilities. quality & production following with plants foundry two has BCL PRODUCTION FACILITIES and suppliedtovariouscustomers. developed successfully been have castings of types different 200 far,than So more iron. ductile and grey in castings automotive / tractor of year per tons 16,000 than producesmore plant The other similarcastings. / buscastingslike Brake DrumsandHubswithalarge numberof TransmissionHousings, Centre Heads, truck Cylinder and Cases Blocks, Cylinder as such castings tractor manufacturing is foundry The approximately 20,000squaremeters. of area covered a with plot meters Balochistan Hub, at located is foundry The FOUNDRY 1993. Limited and the employees of Bolan Castings Limited on 13th June, group of management under a joint collaboration of Millat Tractors a to over handed and privatised was Company The Balochistan. Karachi on the main R.C.D. Highway, Hub Chowki, District Lasbella, was started in July, 1986. The plant is located about 40 Kms from Company (FMD), United Kingdom (U.K) and commercial production Design & Management Foundry of assistance the with 1986 June in commissioned was plant The Pakistan. of Government (PACO) under the administrative control of Production,of Ministry Limited Corporation Automobile Pakistan by company limited public a July,as 15th 1982 on incorporated was Company The Pakistan. in kind its of foundry leading the be to claim rightly can Limited market major a holding and foundry equipped well and modern a Being INTRODUCTION 1.5 tonsfurnaces. two through melting Induction Coreless InductionFurnaces. Twinof and Cupolas Blast Cold Duplex melting facilities consisting share of the tractor and automotive castings, Bolan Castings on a 100,000 square 100,000 a l l l l l l l l coatings andrefractoriness. all incomingmaterial,metalliccharge, Ferro alloys,sands,resins, use equipment and techniques to check finished good. at Laboratories the plant of dispatch the to supply materials raw from process complete the of Control System" thatcoversinspection "Quality a developed has foundry The "We pourqualityintocastings". is motto our and responsibility our is Quality expectations. meet that services providingproductsand and value and performance quality asunderstandingthecustomer'sexpectations, agreeingon impr We believe that quality and a relentless commitment to continuous QUALITY MANAGEMENT/PROCESSCONTROL improvement. productivity enhancement, new products development and processes products, the of improvement beginning, is engaged in research, quality very the from Limited, Castings Bolan improvements. product and process are Experimentation andinnovativestudies RESEARCH &DEVELOPMENT l ovement areessentialtooursuccess.T constantly undertaken for both for undertaken constantly CAD/CAM process. through boxes core and tooling patterns of maintenance A separate Pattern Making Shop for development, repair and Finishing Shop for shot blasting, fettling, grinding and painting. Cores andColdBox coremakingmachines. Resin coated sand Plant, Continuous Mixer, Shell Cores, CO2 Sand Washing Plants. New SandPreconditioningPlant. moulding line. the to mixes sand predetermined delivers automatically demand on which plant sand green computerized Fully 250 mmbox size. / 250 x 550 x 650 of line moulding pressure high Another mm box size. One high pressure moulding line of 1150 x 800 x 300 / 300 of Plantequipmentetc. maintenance and fabrication the for workshop ancillary An o thisend,wedefine POLLUTION CONTROL analysisforimprovements.maintained forupto-date monitored An integrated Preventive Maintenance Plan is regularly & effectively PRODUCTIVE MAINTENANCE have beenachieved. standardshigh control, quality effective and strict of result a As by metallography, andactualchemicalanalysis. spectrometry Checks during manufacturing are supplemented by sample checking 100% checked. are depends safety which on those and parts Critical techniques. appropriate with inspection and checks of array an undergo products Finished checks. integrated of series a in employed are systems response rapid process, manufacturing the During Dust, CoreCoating,Adhesive etc. Materials & consumables likeRaw Pig Iron, Coke, Bentonite, Cold imported valued high using Pakistan in foundry only the is BCL l l l l l l l l the following: through pollution air the reduce to given is attention Maximum of ouremployeesandequipments: safety the for place in are following The INDUSTRIAL &PERSONALSAFETY COMPANY PROFILE Adequate soundproofing ofhighnoisemachines. Safety protective provided totheworkforce. covers allareasoftheplant. which system, fighting fire Effective Maximum plantationattheopenareasoffactory. Dust catchersingrindingarea. for shotblastingandsandplant. cabin closed filter bag through emissions dust of Reduction and coreplant. Scrubbers forairbornemissionatnewsandpreconditioning Wet sludgetankforcupolaemissions. to keep the plant operative. Computerized data is data Computerized operative. plant the keep to Jamshoro andotherEngineeringInstitutionsinaplannedmanner. Technology, Karachi, Mehran University & of Engineering & Technology,Engineering of University NED of Engineering Materials visits etc., to the students of factory Metallurgical Engineering and B T EDUCA ENGINEERING / EDUCATION FOUNDRY FOR SUPPORT follow upsisourstrength. Regular complaints. customer all dealing for system effective an has BCL NO COMPROMISEONQUALITYISOURCLAIM l l l l employed fortheeffectivecontr F COMPUTERIZA INTEGRATEDDOCUMENTATION/ REPORTING THROUGH auditors. QSPs areregularlymonitoredthrough in-houseandindependent & SOPs All spirit. and letter in implemented effectively being is System Management ISO-Quality the Limited, Castings Bolan At Quality ManagementSystem. ISO of version 9001-2015 ISO on Company has now acquired certification The 1999. April in certificate QMS foundr first the was Limited Castings Bolan ISO CERTIFICATION to participateintheschemeandgetincentive. encourage employee every and other concerned staff of the Company Limited Castings Bolan at strategy prime the is Improvement Continual SUGGESTION SCHEME ully computerized documentation & reporting system has been has system reporting & documentation computerized ully o improve thelevelofknowledgeinfieldfoundr CL is providing technical support through regular internships, regular through support technical providing is CL All workareassufficientlyventilated. Flammable materialadequately protected from sunandheat. Controlled admittancetoproduction site. Protective coverforcuttingmachines. y visits TION in Pakistan to obtain ISO-9002 for bench mark performance and competitiveness. We competitiveness. and performance mark bench for to customers along with daily feed back and continuous TION ol, timelyactionandtransparency y practice, . 13 ANNUAL REPORT 2020 14 BOLAN CASTINGS LIMITED 8. Steeringbox cover 7. Oilsump480 6. Hubs 5. Trumpet 480 4. Bearingcover 3. Front axlesupport 2. Differentialcase 1. Axlecasing b. FiatTractors 26. Shifttowercover LH/RH 25. Diff. carrier 24. Axlecover 23. Shifttower 22. Water bodyoutlet240 21. Water body385 20. Front axlesupport385 19. Front axlesupport240 18. Flywheel385 17. Flywheel240 16. Linkrocker 15. Axlehousing385 14. Axlehousing240 13. Fork clutchrelease 12. Sleeve 11. Oilsump385 10. Oilsump240 9. Box hydraulic 8. Hydraulicliftcover 7. Differentialcases 6. Bearingcaps 5. Timing gears 4. Centrehousing 3. Transmission case 2. Cylinderhead 1. Cylinderblock a. MFTractors Tractor Industry PRODUCT RANGE . HemaIndustries,Turkey Tractors. Al-Ghazi Limited . MillatTractors Limited Tractors CUSTOMERS CUSTOMERS &PRODUCTRANGE a. HinoTrucks/Buses Automobile Industry Motors . Afzal . MasterMotorsCorporationLtd. . GhandharaIndustriesLtd. . GhandharaNissanLtd. . HinoPakMotorsLtd. Automobiles 1. Brake drums e. DaewooTrucks/Buses 1. Brackets d. MasterTrucks 2. Exhaustmanifold 1. Brake drums&hubs c. IsuzuTrucks/Buses 1. Brake drums&hubs b. NissanTrucks/Buses 4. Pulleys 3. Bracket injectionpump 2. Springstoppers&brackets 1. Brake drums A Full Tractor Assembly BCL Castings BCL 7. Sealcovers 6. Suctionchambers 5. Pumphousing 4. Adopter flanges 3. Baseplates 2. Pumpbases 1. Pumpheads a. Pumps Engineering Industry . Al-IntizamInternational . InfinityEngg.Ltd. . MecasEngg.Ltd. . AlsonsIndustries(Pvt.)Ltd. . BaluchistanWheelsLimited . MillatEquipmentLimited . HMAPumps(Pvt.)Ltd. Engineering/Others 1. Castiron wheel g. Al-IntizamInternational 5. Hubs 4. Brake drums 385 carrier 3. Planetary 375 carrier 2. Planetary 240 carrier 1. Planetary f. InfinityEngg.Ltd. 1. L-shape large e. MecasEngg.Ltd. 1. BombShell d. AlsonsIndustries 1. Blankholderdies c. WheelRims 385 carrier 3. Planetary 375 carrier 2. Planetary 240 carrier 1. Planetary b.Millat EquipmentLimited The of eachyearatCompany'sRegisteredOffice. October in normally (AGM) Meeting General Annual holds BCL Annual GeneralMeeting by post.AnnualAccounts arealsoplacedonCompany'swebsite. The Company dispatches the Annual Accounts to its Shareholders week ofsuchdemand. one within cost, of free addresses registered their at demand, on However, thequarterlyaccountscanbeprovided toshareholders, post. by same the sending of throughinstead website Company's shareholders to accounts quarterly its transmits Company The on Wednesday, October28,2020at12:00hours. Chowki, District Baluchistan, Lasbela, Pakistan, through video link, Highway,Hub RCD Company,Main the of Office Registered The 38thAnnualGeneralMeeting is scheduledtobeheldatthe on matterstobedecidedatthemeeting. Voteto encouraged Proxyare by they attend, to unable are they However,meeting. the attend to if encouraged are Shareholders information toShareholdersfortheirconvenience. The Notice of AGM contains an memorandum explanatory providing and Lahore. Daily EnglishandUrdu newspapershavingcirculation inKarachi of each issue one in published also and AGM of date the before l l l l each year: shareholders for Reports Financial Periodic four produces BCL Periodic FinancialReports of theCompany'svalueandprospects. all informationreasonablyrequiredtomake informedassessments have they that so Shareholders its to standardcommunication of high a providing to committed is (BCL) Limited Castings Bolan SHAREHOLDERS INFORMATION Annual Reportupto30 Third QuarterlyReportupto31 31 Yearlyupto Half Report / Quarterly Second First QuarterlyReportupto30 Notice of AGM is sent to all Shareholders at least 21 days 21 least at Shareholders all to sent is AGM of th June. th st September March st December website fortheshareholderstoraiseanycomplaint. Designated contacts and email address are provided on company’s Shareholders Complaint Website: Email: [email protected] Fax: (92-21)34326053 Tel: (Toll Customer Support Services Free) (23275) 0800-CDCPL S.M.C.H.S., MainShahrah-e-Faisal, Karachi-74400. CDC House,99-B,Block-B, Limited, CDC SharesRegistrarServices totheCompany'sSharesRegistrar: address shouldbereferred payments dividend shares, ordinary Company's the of holdings concerning Enquiries Shareholders Enquiries the principalmark Quarterly price ranges of BCL shares on the Pakistan Stock Exchange, Price Ranges Relations’ sectionisalsoavailableonthewebsite. Company are also posted on this site. Further, a dedicated ‘Investor its of The website has general information about the Company and details website, A widerangeofinformationaboutB Web Presence October 14,2020shallbetreatedintime. on hours working of close by hereunder given address the at Company the of Registrar Share orderof in office received the at 15, willremainclosedfr The SharetransferbooksofBCL Books Closure Fourth (Apr- Third (Jan-20-Mar-20) Second (Oct-19-Dec-19) Quarter First (July-19-Sep-19) 2020 to October 28, 2020 both days inclusive. Transfersinclusive. days both 2020 28, October to 2020 (Rs.) product range. The quarterly and annual reports of the of reports annual and quarterly The range. product 100.00 120.00 140.00 160.00 www.cdcpakistan.com www.bolancastings.com. 20.00 40.00 60.00 80.00 - 20 -June- 41.54 83.75 0521 0721 2019 2018 2017 2016 2015 Market Value Vs.Break-up et inwhichthestockistraded,were: and notification of shareholders' change of change shareholders' of notification and 20 aktVle(R.Sae)BreakupValue (Rs./Share) Market Value (Rs./Share) ) 39.46 40.75 Value of Shares ------Rupees 60 32.00 56.00 27.82 50.85 29.21 61.00 28.10 40.85 High 150.88 50.04 2020 CL isavailableatCompany's 116.64 Low 55.74 33.28 37.30 89 35.52 58.95 55.00 84.00 64.10 103.95 94.00 139.78 ihLow High om October 2019 48.23 8.23 2020 15 ANNUAL REPORT 2020 16 BOLAN CASTINGS LIMITED 2 To confirmtheminutesof37thAnnualGeneralMeetingheld 1. ORDINARY BUSINESS A. at 1200hourstotransactthefollowingbusinesses: Wednesday,on link, 2020 throughvideo 28, Pakistan, October Balochistan, Lasbela, Highway,District RCD Chowki, Main Hub Castings LimitedwillbeheldatRegisteredOfficeoftheCompany Notice is hereby given that 38th Annual General Meeting of Bolan .To and approveratify the transactions out carried in the normal 5. SPECIALBUSINESS B. are proposed tobeelected. which one male independent and one female independent directors 2020 thenumberofDirectorstobeelectedshallsevenout 15, September on held meeting its Boardin the by resolved As To elect seven Directors as fixed by the Board of Directors for 4. and 2021 30, June ending year Tothe for auditors appoint 3. NOTICE OFANNUALGENERALMEETING . on October23,2019. resolution: June course ofbusinesswithGr and Mr. AamirAmin. Mr. Uddin Laeeq Ansari, S. M. Irfan Aqueel, Syed Javaid Ashraf Mustafa Khan, Mr. Khalid Latif Hashmi, Mr. Sohail Bashir Rana, a termofthreeyears.TheretiringDirectorsareMr. Sikandar to fixtheirremuneration. report thereon. Auditors' and report review,Directors' Chairman's the with together 2020 30, June ended year the for Company the of To receive, consider and adopt the audited financial statements 30, 2020 by passing the following resolution as a special October 28,2020at12:00p.m. oup companiesfortheyearended i DeletionofArticle9.10. ii) Article existing the for Article new following of Substitution i) and isherebyamendedinfollowingmanner: be Company the of Association of Articles the RESOLVEDthat To consider, and if thought fit, pass following resolutions, with 7. regard. this in required be may as documents such all and any sign and actions all and takeany to authorized hereby is and be Company the of Executive Chief RESOLVEDthe FURTHER that during theyearendingJune30,2021. to be carried out in normal course of business with Group companies hereby authorizedtoapprove outand allthetransactionscarried is and be Company the of Executive Chief the RESOLVEDthat approve to Company the of Executive Chief Toauthorize 6. hereby ratifiedandapproved. financial statementsfortheyearendedJune30,2020beandare the to 34 note in disclosed as companies Group with business of course normal in out RESOLVEDcarried transactions the that h proe f mlmnig h aoead resolution. aforesaid the implementing of purpose the or incidental documents for as may be necessary all necessary to fulfillalllegal,corporateand procedural formalities andfile authorized hereby are / is and be Company the of Secretary FURTHER RESOLVED that Chief Executive and / or Company Act, 2017." with the provisions contained in section 153(i) of the Companies line in apply not shall shares qualification of requirement the other specialinterestsbyvirtueofcontractualarrangements, or creditor a representing or person natural a not is which Rs.10/-. However, in case of a Director representing a member of value face the of Company the of Capital the in share one as definedinCompaniesAct, 2017,shallbe holding atleast provided that qualification of an elected independent director, warrant, circumstances the as office the of holding the to filing ofintentiontocontesttheelectiondirectorsorprior the to prior Rs.25,000/-, of value face the than less not of Company the of Capital the in shares of holding the be shall "The qualificationofanelectedaswellappointedDirector 9.09: in theArticlesofAssociationCompany: or without modification as a special resolution for amendments modification, asaspecialresolution: 30, 2021 by passing the following resolution, with or without of business with Group companies during the year ending June transactions out carried and to be out carried in normal course u ArafatMushir CompanySecretary October 06,2020 Hub 5. Any person who seeks to contest election to the office of office the to election contest to seeks who person Any 5. change any notify promptly to requested are Members 4. Duly executed proxies in order to be effective must be received 3. meeting the at vote and attend to entitled member A 2. The Share Transfer Books of the Company shall remain closed 1. Notes : .To transact any other business with the permission of the Chair. 8. OTHERBUSINESS C. NOTICE OFANNUALGENERALMEETING election asadirectoralongwiththefollowing: for himself offer to intention his of notice a meeting of date file withtheCompany, notlater thanfourteendaysbeforethe otherwise, or Director retiring is he whether shall, Director form. if sharesareheldinbookentry Services, Account Participant/Investor respective the to and Limited,ifsharesareheldinphysicalform Registrar Services Share CDC M/s. Registrar Share our to addresses their in section (6)ofSection137theCompaniesAct, 2017. before themeeting,computedinmannerprovided insub hours 48 least at Company the of Office Registered the at of requirements of Section 138 of the Companies Act, 2017. / corporation by a representative duly authorized in pursuance company a of case in proxyor by or personally either given be Votemay behalf. her / his on vote and meeting may appointanothermemberashis/herproxy toattendthe 2020 shall be treated in time to attend and vote at the meeting. 14, October on hours working of close by Karachi-74400 Shahrah-e-Faisal, Main S.M.C.H.S., Block-B, 99-B, House, CDC Limited, Services Registrar Share CDC M/s. Registrar inclusive). Transfers received in order at the office of our Share from ii.) A detailed profile as required under SECP's SRO No. SRO SECP's under required profileas detailed A ii.) Form 28-Consenttoact as directorprescribedunder i.) October 15, 2020 to October 28, 2020 (both days (both 2020 28, October to 2020 15, October before theelection. of, interalia,placementonthewebsiteofcompany 1196(I)/2019 dated October 03, 2019, for the purpose section 167ofCompaniesAct, 2017. By Order oftheBoar d ofDirectors 6. CDC Account Holders will further have to follow the under the follow to have further will AccountHolders CDC 6. declaration additional Director,an Independent of case In iv.) He/sheorhisherspouseisnotengaged inthebusinessof f) He / she has not defaulted in payment of any loan to a banking e) His/hernameisborneon the registerofnationaltaxpayers. d) (7) seven than more in director a as serving not is she / He c) He / she is not ineligible to become a Director of the Company b) He / she is a member of the Company. (Number of shares held a) of Pakistan. 26, 2000issuedbytheSecuritiesandExchange Commission mentioned guidelines as laid down in Circular 1 dated January as containedinSection166oftheCompaniesAct. confirming thathe/shequalifiesthecriteriaofindependence officer ofanycorporatebrokerage house. or sponsor,director a not is she / he brokerageand Stock exchange.stock that by defaulter a as declared been not has ExchangeStock a of member a being or Institution Financial company, a Development Financial Institution or Non Banking (National Tax Number(NTN)bementioned). company. holding listed a of subsidiaries listed the in directorships the excludingLimited Castings Bolan including companies listed under anyapplicablelawsandregulations. number, bementioned). account / id participant CDC or Folionumber the alongwith .For appointingproxies: B. For attendingthemeeting: A. i. Declarationconfirmingthat: iii.) ) In case of individual, the account holder or sub account i) Directors' of Board entity,the corporate of case In ii) In case of individual, the account holder or sub-account i) holder it has been provided earlier) at the time of the meeting. of thenomineeshallhavetobeproduced (unless resolution / power of attorney with specimen signature or original passport at the time of attending the meeting. Card(CNIC) Identity National Computerized original holder requirement. shall shall submit the proxy form as per the above the per as form proxy the submit authenticate his identity by showing his showing by identity his authenticate 17 ANNUAL REPORT 2020 18 BOLAN CASTINGS LIMITED .ParticipationintheAnnualGeneralMeeting 7.

2020. 22, October p.m.) (5:00 hours business of close the by address e-mail mentioned above the on AGM the of items agenda the to are also encouraged to send their comments / suggestions, related business hours (5:00 p.m.) on October 22, 2020. The shareholders are receivedattheabovee-mailaddressbyorbeforecloseof shareholders the with shared be will credentials login and link video The NOTICE OFANNUALGENERALMEETING Account No. Folio / CDC thr SECP,the pandemic, Covid-19 of outbreak the of view In and corporate fulfillments shall apply mutatis mutandis. mutatis apply shall fulfillments corporate and link andtheattendancesaccordingly, theaboverequirements In pursuance of the of arrangement the meeting through video to register their following particulars by sending an e-mail at e-mail an sending by particulars following their register to To attend the AGM through video link, members are requested video linkfacility. through AGM this convene to arranged has Company the our valued shareholders and to ensure maximum participation, of videolinkfacility. Accordingly, inthebesthealthinterestof avoid large gatheringatoneplaceandconsidertheprovision to companies listed to advised has 2020, March17, dated 31, 2020togetherreadwithearlierCircular No.05of2020 [email protected]. v) In case of corporate entity, the Board of Directors' of Board entity,the corporate of case In v) or CNIC original her / his produce shall proxy The iv) Attested iii) i i ough The proxy form shall be witnessed by two persons whose ) Company. shall have to be submitted along with proxy form to the signature specimen with attorney of resolution/power original passportatthetimeofmeeting. the proxy form. with furnished proxybe the shall and owner beneficial on theform. names, addresses and CNIC numbers shall be mentioned Bolan Castings whose its another Circular No. 25 of 2020 dated August dated 2020 of 25 No. Circular another its Company Limited Name e-mails, containing all the requested particulars, copies shares held No. of of CNIC or the passport of the aeCI CellNo. CNIC Name Address Email .PaymentofCashDividendElectronically 9. submissionofCNIC Mandatory 8. 0 rnmsin f nul iaca Saeet through Statements Financial Annual of Transmission 10. 1 1 . Transmission of Annual Financial Statements through email through Statements Financial TransmissionAnnual of . CD/D member. respective the to future the in dividend of payment the of to provide the aforesaid requirements will result in withholding if shares Account are form. held Failurein Services book entry held inphysicalformortotherespectiveParticipant/Investor are shares if Registrar Share Company's any,Number,to if Number,Cell Address,(vi) & Code Name, Landline (vii) and Bank Account Number, (iii)IBAN(iv)BankName,(v)Branch to provide thedetailscontaining(i)Title ofBankaccount,(ii) shareholders. In view of foregoing the shareholders are requested mode directly in to the bank account designated by the entitled dividend payableincashshallonlybepaidthr As per provision of Section 242 of Companies Act, 2017 any form. held inbookentry ifsharesare respective Participant/InvestorAccount Services the to or form physical in shares hold you if Registrar Share to kindly provide legible copy of your valid CNIC to Company's dividend is withheld due to aforesaid reason, you are requested cash your case In CNIC. valid their of copy providedthe yet withhold cash dividend payment to shareholders who have not also will future in and withheld has company the Act,2017, 2017 Regulations, As perclause6oftheCompanies(DistributionDividends) The SecuritiesandExchange Commissionof Pakistanvideits Company the of website www.bolancastings.com . the at placed been the year ended June 30, 2020 along with related reports have for Company the of Further,statements financial annual the to theCompany. can send request for printed copy of the Annual Report-2020 reports to the shareholders in the form of CD. Any shareholder related the and Statements Financial the containing 2020 In view of the above the Company has sent its Annual Report- AGM. the in shareholders Company's the approvedby been subsequently has same the and addresses registered their at CD/DVD/USBthrough members its to etc report directors' financial position,profit orlossaccount,auditors'reportand have SECP allowed VD/USB through its SRO 470(I)/2016 dated May 31, 2016 31, May dated 470(I)/2016 SRO its through companies to circulate the annual statement of statement circulateannual to the companies read with Section 242 of the Companies the of 242 Section with read ough electronic 2 VideoConferenceFacility 12. 3 Postal Ballot 13. NOTICE OFANNUALGENERALMEETING Company's website. give theirconsentontheStandard RequestForm availableon can facility this avail to wish who Members e-mail. through members its to meeting general annual of notice with along report directors' and report auditors' account, loss or profit companies tocirculate annualstatementoffinancialposition, SRO 787(1)/2014 dated September 08, 2014 has permitted ar the therefore and requirements the to prejudice Without Balochistan District Lasbela, Hub Chowki, Main RCDHighway Bolan CastingsLimited Registered OfficeAddress oftheCompany: at ______. No. ______hereby opt for video conference facility Account CDC / No Folio Register per as Share(s) Ordinary a memberofBolanCastingsLimited,holder______I / We, ______of ______being AGM. before days (7) seven atleast Company the of above, pleasefillthefollowingandsubmittoregisteredoffice facility,per conferencing as video avail to like would you If the facility. access to needed information complete the with along AGM conference facility venue at least 5 days before the date of the video the regarding members intimate will Company The such facilityinthatcity. of availability to subject city that in facility conference video a arrange will Company the meeting, of date to prior days 7 to participate in the meeting through video conference at least 10% or more shareholding residing at a geographical location, Company receives consent from members holding in aggregate the if 2014, of 10 Circular SECP with read together 2017 Act, Companies the of 132 Section of requirements the of n poeue otie i te frsi regulations. aforesaid the in contained procedure and requirements the accordancewith in e-voting, through vote exerciseto allowed be will of members right Act2017, their to the requirements of Section 143 and 144 of the Companies the Pursuant toCompanies(Postal Ballot) Regulations2018,for rangements purpose of election of directors and agenda item subject item agenda and directors of election of as described in "Note 7" above, keeping in view 1) ACT STATEMENT UNDERSECTION134(3)OFTHECOMPANIES companies. Group the in shareholding and directorships common their The Directorsareinterestedintheresolutiontoextent of ratification. approvaltheir / for shareholders the before placed being are companies Group with 2020 30, June ended year financial the during conducted transactions the above, the of view In Annual GeneralMeeting. the in shareholders the approvedby be to have transactions final approval/ratification by the shareholders. Therefore, these these transactionsinthenormalcourseofbusinesssubjectto had authorized the Chief Executive of the Company to approve therefore, in the last Annual General Meeting, the share holders directors could not be formed for approval of these transactions, of quorum the companies, Group the in shares of holding and directorship common their to due transactions these in interested were Directors Company's of majority the As per as basis. Boardquarterly on AuditCommittee the of recommendation the by approved be to required were Parties) (Related companies Group with business of course normal in out carried transactions the 2019, Regulations, Governance) Corporate of (Code Companies Listed the course ofbusiness.Asperprovision ofRegulationNo.15 outtransactionswithGr carried During the financial year ended June 30, 2020, the Company Agenda ItemNo.5-RelatedPartyTransactions proposed withintheagenda. shall also be applicable to the e-voting for the special business directors of election for e-voting to respect with regulations aforesaid the in contained procedure and requirements The will be allowed to exercise their right of vote through e-voting. March 17, 2020, for the purpose of special business, members dated 2020 Circularof earlier 05 an No. with read together its anotherCircular No.25of2020datedAugust 31,2020 Further, pursuant to the directions issued by the SECP through , 2017 oup companiesinthenormal 19 ANNUAL REPORT 2020 20 BOLAN CASTINGS LIMITED )AgendaItemNo.6-Authorization toCEOforRelated Party 2) NOTICE OFANNUALGENERALMEETING The Company shall be carrying out transactions with Groupwith transactions out carrying be shall Company The T in the absence of formation of required quorum for the purpose, and Boardbasis approvalthe quarterly of by on requirement of these transactions. Therefore, in order to the satisfy aforesaid quorum of directors will not be formed for the required approval the companies, Group the in shareholding and directorship common their to due transactions these in interested be year endingJune30,2021.AsthemajorityofDirectorswill companies Maintenance ofRelatedRecords) Regulations,2018isasunder: TransactionParty (Related Companies the of 5(1) Regulation under required as transactions party Related the of information The muto rnatos(s)12592204,6 ,6,1 29,634 7,364,711 42,060 1,255,932,210 Amount ofTransactions (Rs.) conditions oftransactions Detail, description,termsand rcn oiyAtMutuallyAgreed Pricing Policy transactions Time frameordurationofthe personnel inrelatedparty managers orkey managerial interest orconcernofdirectors, information offinancialorother concern alongwithcomplete Nature of relationship, interest or directors concerned personsor Names oftheinterestedor ransactions aeo eae ate iltTatr iie MillatEquipmentLimited MillatTractors Limited Name ofRelatedParties in the normal course of business during the financial confirmed orders Sale ofgoodsagainst 30-06-2020 From 01-07-2019 to price Syed MuhammadIrfanAqueel Mr. UddinAnsari Laeeq Mr. SohailBashirRana Mr Mr . Latif KhalidHashmi . Latif . SikandarM.Khan Common directorshipandthe shareholding orders against confirmed Purchase ofgoods 30-06-2020 From 01-07-2019to price At MutuallyAgreed companies. Group the in shareholding and directorships common their The Directorsareinterestedintheresolutiontoextent of during thefinancialyearendingJune30,2021. out carried in normal course of business with Group companies be to and out carried transactions the approve to Executive throughout the year, the shareholders may authorize the Chief transactions these of approval routine ensure to order In next AGM for the purpose of seeking the ratification/approval. in presented be will companies Group with transactions the confirmed orders Sale ofgoodsagainst 30-06-2020 From 01-07-2019to price At MutuallyAgreed Syed MuhammadIrfanAqueel Mr. UddinAnsari Laeeq Mr. SohailBashirRana Mr. KhalidHashmi Latif Mr. SikandarM.Khan Common directorshipandthe shareholding orders against confirmed Purchase ofgoods 30-06-2020 From 01-07-2019to price At MutuallyAgreed s and s NOTICE OFANNUALGENERALMEETING )Article9.09oftheArticles AssociationoftheCompanyis i) Reasons forchange i) 3) i Article 9.10 ii) ii) Article 9.10 is proposed to be deleted in order to align the align orderto in deleted be to proposed is 9.10 Article ii) pr in shares of holding the be shall Director a of qualification The Article 9.09 shares ofrequisitevalue. holding interest representing Director of case in relaxable The document highlighting the proposed amendments is amendments proposed the highlighting document The of whichisproposed hereby. shares as contained in the Articles of Association the alteration qualification of requirements the with compliance in them qualification shares which are required to be acquired/hold by The Directorsareinterestedintheresolutiontoextent of framework. provisions ofthelawandregulatory the of DirectorsinitsmeetingheldonSeptember15,2020with The aforesaidamendmentshavebeenapproved bytheBoard Statement bytheBoard h sm wti to ots rm i appointment. his from months two within same the before act may qualification a hold to required is who director A of theCompaniesAct, 2017. Articles inlinewiththeprovisions containedinsection153(i) shares forthem. qualification minimum the fixing by directors independent Agenda ItemNo.7-AmendmentsinArticlesofAssociation oposed the understanding capital of the Company of the value of Rs.25,000/- of value the of Company the of capital acquiring to be substituted to facilitate the election of election the facilitate to substituted be to his qualification, but shall in any case acquire that the same are in line with the applicable Existing Article Comparative Analysis )SelectionofIndependentDirectors 4) Deletion ofArticle9.10 ii) )Article9.09 i) is a young, confident, dynamic, enthusiastic, educated and self Marchsince He Castings 2020. Bolan Board of Directors of representing NationalInvestmentTrust Limited(NITL)onthe and Director Independent as serving is Amin Aamir Mr. Mrs.Tabassum Rana Mr. AamirAmin 2. 1. Act, 2017isasunder: selection asrequiredundersection166(3)oftheCompanies their for justification and selected directors of names The authorized bySECP. this AGMfrom thedatabankmaintainedbyinstituteduly in 2017 Act, Companies the of 159 section under elected be to female) one and male (one candidates two following selected has company the 2019, Regulations, Governance) clause As per Section 166 (1) of the Companies Act, 2017 read with closed holidays)andGazettedholidays. (being Sundays excludingSaturdaysand hours office during inspection for Company the of office Registered at available Act, 2017. with the provisions contained in section 153(i) of the Companies line in apply not shall shares qualification of requirement the other specialinterestsbyvirtueofcontractualarrangements, or creditor a representing or person natural a not is which Rs.10/-. However, in case of a Director representing a member of value face the of Company the of Capital the in share one least at holding be shall Act,2017 Companies in defined as provided thatqualificationofanelectedindependentdirector warrant, circumstances the as office the of holding the to filing ofintentiontocontesttheelectiondirectorsorprior the to prior Rs.25,000/-, of value face the than less not of shall be shall Director appointed as well as elected an of qualification The 6(1) the holding of shares in the Capital of the Company the of Capital the in shares of holding the and 7 of Listed Companies (Code of Corporate of (Code Companies Listed of 7 and Proposed Amendments 21 ANNUAL REPORT 2020 22 BOLAN CASTINGS LIMITED NOTICE OFANNUALGENERALMEETING Limited and Indus Dyeing and Manufacturing Company Limited. Pakistan Bata FruitLimited, FarmMitchell's Limited, Wheels Balochistan of Directors Boardof the on NITL representing also is He Committee. Investment of member and Affairs and as also Head serving of Corporate Governance & Corporate Mr. AminisCFOofNational Investment Trust Limited(NITL) Information SystemsAuditor (CISA). of Chartered Accountants of Pakistan (ICAP) and also a Certified Mr. Amin is a Chartered Accountant by profession from Institute easily.challenges entrepreneurial take to person motivated position ofJointDirector. She started her career as Research Analyst and rose to leadership Departments. Relations External and Finance Development Facilitation, and Support Business Engineering, policy, she has worked with core policy Departments such as Monetary BankerCentral as career her In abroad. and locally courses management and banking several attended also She USA. University,Boston, Northeastern from Planning and Policy Economic in MS and University Karachi from Economics in Masters her did She Pakistan. of Bank State with working of Mrs. Tabassum has over Rana 34 years of extensive experience in achievingcompany'sobjectives. the boar I am pleased to present review on overall performance of Dear Shareholders, CHAIRMAN’S REVIEW d and effectiveness of the role played by the board of these committees are clearly defined by the Board.the by defined clearly are committees these of reference of terms The responsibilities. particular with committees three following established Boardhas the leadership and oversight effective provideorder to In met. and understood are others and shareholders its to obligations its that ensures and standards and values Company's the sets Board The managed. and and effective controls which enables risk to be assessed leadership to the Company within a framework of prudent entrepreneurial provide to is role Company.Its the The Board iscollectivelyresponsibleforthesuccessof two independentdirectors. including non-executivedirectors are six and director Company. Out of seven elected directors one is executive the of director a be to deemed CEO being of virtue elected directorsandaChiefExecutive Officerwhoby the Effective managementandgoodstewardship areledby Board anditsEffectiveness is placedonanyindividual. of relevant skills and experience so that no undue reliance The Board Committeescontaindirectorswithavariety l l l Board of Directors, which consists currently of seven Board's Committee for Supervision (BCS) Board's CommitteeforSupervision Human Resource and Remuneration (HR&R) Committee Audit Committee 23 ANNUAL REPORT 2020 24 BOLAN CASTINGS LIMITED effectively. more perform to order in improvements requiring areas the discussed also Board its committees operate effectively. Further, the and members Board,its the that concluded the evaluationprocess. Hence, theDirectors that no major issues and aroseobserved from The Board reviewed the result of questionnaire the Board. approvedduly questionnaire, by confidential a completing by Director each through performance of self-assessment a involved process The committees. and members its Board,the of performance the of evaluation of process structured and formal a out During the fiscal year 2020, the Board carried l l l l to: out annuallybytheBoard, whichisdesigned To that end, a performance evaluation is carried functioning. its improve may it which in areas and and collectively in order to its identify strengths its assessing to committed is Directors of Board The Performance EvaluationoftheBoard CHAIRMAN’S REVIEW short-and-long-term. the in addressed be can which change for priorities on agree Boardto enable and knowledge; Board of degree the Boardbetween and cohesion members interpersonal of level the receive, they credibility of the reports and information the Boardmeetings, at discussions the integrity oftheCompany, thequalityof evaluate the Directors' confidence in the responsibilities; their discharging are Directors the effectively how evaluate committees; and members its review the role of the Board of Directors, performance both individually both performance 10,000 12,000 14,000 16,000 18,000 economy At the end of the first half of FY20, Pakistan's Review Overall EconomicandIndustry result in enhanced orders for our castings. our for orders enhanced in result locally as well as globally, which hopefully will soaring is tractors for demand the as year fiscal upcoming the in trend the in reversal a witness will we that hoped is it and year However, market feedback is positivefornext Company.your of targets production and in sales of tractors has badly affected the sales and its vending in industry FY20. The decrease markettractor in decline visible a was There COVID-19. of impact adverse the mitigate to stimulus provideddistress a of time the at rate policy in cut and package stimulus Government's the situation, this In FY20. in missed contraction. Allmajoreconomictargets were growth a in resulted which economy the shattering up ended depression global with combined country the across all lockdowns The economy. Pakistan's of history the FY20, thusmakingthefiscalyeartoughestin of half second the in pandemic COVID-19 the by challenged was however period the during gained stability macroeconomic The (M.T.) -400,000 -300,000 -200,000 -100,000 100,000 200,000 300,000 2,000 4,000 6,000 8,000 (Rs.000) 0 0 11,368 71,640 0521 0721 2019 2018 2017 2016 2015 2015 4.22 seemed 39,420 0621 2018 2017 2016 2.95 8,436 Pre taxProfitability to be on the path to stability. 141,426 8.11 B B:Sales PBT: PBT Production 11,566 184,441 8.02 16,294 (310,120) (20.49) 2019 8,694 (259,617) (19.48) 2020 6,623 2020 (30.00) (20.00) (10.00) 0.00 10.00 20.00 30.00 Chairman Sikandar MustafaKhan excellent results. achieving towards significantly contributed efforts, consistent and vision strategies, whose Directors of Board the of support continued the for thankful extremely am I

DIRECTORS’ REPORT year endedJune30,2020. the for statements financial audited Company's present to pleased are Company your of directors The Dear Shareholders their Annual Report together with the with together Report Annual their (23.00) (18.00) (13.00) (Rs.) (8.00) (3.00) 12.00 2.00 7.00 last year. of million 424.500 Rs. against million 424.500 Rs. (15,600) were review under year the for Reserves General The (468,948) (271,688) forward Accumulated loss carried Other comprehensiveloss endedJune30,2020 Loss aftertaxationfortheyear A Financial Resultsfortheyearareasfollows: Financial Results of tractorsandautomotiveparts. Exchange. Its main business activity is to produce castings company limited public a as Pakistan in Yourincorporated is Company Company's Affairs the year2020. appropriationsfor makeany to not decided Directors the Keeping bytheCompanyin inviewthelossesincurred Dividends &Appropriations ccumulated lossbr 0521 0721 2019 2018 2017 2016 2015 financial 4.09 year ended June 30, 2020, the Boardof the 2020, 30, June ended year 2.25 Earnings Per Share and is listed on the Pakistan Stock Pakistan the on listed is and uh owr (181,660) ought forward 8.52 11.63 (Rs. 000) (20.83) (23.68) 2020 27 ANNUAL REPORT 2020 28 BOLAN CASTINGS LIMITED DIRECTORS’ REPORT due to Covid-19 and devaluation in Pakistani industries to overcome the economic challenges on government depends economy of revival The Future Prospects year.last of million 239.000 Rs. tax after after tax was Rs. 271.688 million against loss tax Rs.310.120millionoflastyear. Theloss before loss against million 259.617 Rs. was financial year under review, the loss before tax against Rs.51.258million of lastyear. Inthe year. The financial cost was Rs. 78.330 million last of million 125.794 Rs. against million 103.523 Rs. were expenses administrative and distribution selling, The year. last of million 149.777 Rs. of grossloss against million year.88.132 Rs. was grossloss The million againstRs.1,513.636oflast year the for Company the of revenues sales The Company's Performance loss. gross the towards contributed predominantly have factors these All prices. has resultedincreaseinrawmaterialandfuel of Pakistani Rupees against foreign currencies cost of borrowing. In addition, the devaluation high a and inflation prices, and yields crop worldwide lock down due to Covid-19, fall in tractors, the economic current slowdown, the of sales low to due challenges serious faced has part manufacturers. The tractors industry its as well as industry tractor the impacted has Pakistan in slowdown economic The M.T in the last year with 25% decline in sales. 9,646 against sold been has casting of M.T year with 24% production decline, while 7,280 during the year against 8,694 M.T in the last The 6,623 M.T of casting has been produced has volume sales productionand in reduction A Business Review s 2.3 e sae f rcdn year. preceding of share per 20.83 Rs. 30, June ended year the for share per loss The Earnings perShare been 2020 under review amounted to Rs. 1,332.568 identified in the fiscal year 2020. year fiscal the in identified were Rs. 23.68 as against loss of loss against as 23.68 Rs. were economic policies to facilitate the policies andplans: principal risks which are mitigated via specific following the to susceptible is Company risk managementandcontrol processes. The to Board ofDirectorsontheeffectiveness Audit department provides independent report Internal instruments. such of respect in risk marketexposureto significant no is there as the Company's financial instruments are limited Company. However, overallrisksarisingfrom our affecting risks principle mitigating and focus our maintain us helped have policies framework, coupledwithourinternalcontrol be increased. may risk such of level the that expected is it environment, political and economic to due in-stabilityofthePak-rupee value the current fluctuations currency is likely. However, seeing by posed risks materials, raw of imports on reliant being Company, the However, conditions, reducesoperationalrisksfurther. market favorable expected the as well absenceofanymajorcompetitorsas current the Furthermore, automobile. and tractors of demand lower except company the of can adversely impact the sales and profitability company does not foresee any major risks that the 2020-21, year fiscal of budget annual related to the agriculture and auto sector after policies governmental relevant the in occur assuming situation, socio-economic current the Given Business Risk sustainable to key the is management risk Effective Principle RisksandUncertainties adopting cost-cuttingmeasures. time same the at and avenues sales new for Additionally, your Company is also endeavoring health assuch. financial Company's your improve thus will economic performance.Thespillovereffects of terms in boost a experience will industry vending its and tractor the that believed is it approved an economic package for agriculture, recently has government the As Rupees. no major changes are expected to expected are changes major no business. Our risk management risk Our (280,000) (250,000) (250,000) (220,000) (190,000) (160,000) (130,000) (100,000) (Rs.000) (70,000) (40,000) (10,000) 110,000 140,000 20,000 50,000 80,000 adverse effects on financial performance. financial on effects adverse with the right planning to mitigate the possible takenbe will actions appropriate hence and mentioned. Contingency planning is a priority risks the by significantly affected be to of risk and therefore, your company is unlikely working to proactively monitor such indicators Finally, the Company's management is diligently profitability. company's the on impact negatively can that risk of factor a be to prove can business of line this in changes such, as and assemblers and manufacturers tractor of comprises audience primary Company's the Also, customers. containing assessment of credit-worthiness of and customers specific with transactions limiting exposures, credit monitoring by debts trade on risk credit the managed with high credit ratings. However, the company limited is fund liquid company's on risk credit The Credit Risk adjusted. be can position gap in changes significant where strategies management risk through period, given a in reprice or mature that liabilities and assets financial of / The Company manages to mitigate the interest Risk Interest /Mark-upRate mark-up rate risk, arising fromarising mismatches risk, rate mark-up 46,915 2015 2.77 because the counter parties are banks 25,870 0621 2018 2017 2016 1.94 Post Tax Profitability 97,776 5.61 A PAT :Sales PAT 133,402 5.80 (238,999) (15.78) 2019 (271,688) (20.39) 2020 (25.00) (20.00) (15.00) (10.00) (5.00) - 5.00 10.00 (%) DIRECTORS’ REPORT of We attach great importance to the maintenance Environmental Protection Measures locations oftheCompany. also to use energy-saving lighting device at all consumption in vehicles Company-owned and fuel minimize to directives issued also has gas and water. Furthermore, the management consumption of electricity,avoid unnecessary Company. Ouremployeesareencouragedto energy consumption in daily operations of the minimize to effort its continues Company the purpose, this For conservation. energy ener for need Country's the of aware well is BCL Energy Conservation conducted in this area are enumerated below: activities Various management. business good of element integral an is responsibility social corporate that considers BCL operate. we where community wider the and customers employees, our with deal we way manner.the in demonstrated is This conducting Your Companyrecognizestheimportanceof Corporate SocialResponsibility lines available. management and by keeping committed credit cash effective through risk this manages Company The facilities. credit committed of amount adequate an through funding of maintaining sufficient implies management risk liquidity Prudent Liquidity Risk particular: in ensured are following regard, this In operational activities are environment friendly. plant Company's the that so made are relating to the environment. Continued efforts requirements regulatory of compliance on emphasis the with conducted are operations initiatives which benefit the environment. Our encourage We protection. of environment measures and ideas the integrate a healthy living environment and consistently gy as well as its responsibility towards responsibility its as well as its business in a socially responsible cash and the availability l l l l at theexisting factory. o Disinfectant walk-through gates were placed measures: precautionary following the taken has Company The employees. the of pandemic COVID-19 for the health and safety during business operating for Government standard operating procedures advised by the Further,the with complied fully has BCL the clock. the round staff qualified with available are facilities Policy.aid Safety first necessary All per as taken are demonstration fighting fire time real and Regular material. flammable of area storage in fromSun heat direct against fire fighting system, Ventilation and Protection effective of Plant at availability ensures BCL System. Management Quality 2015 - 9001 ISO by certified and regulated Policy,duly Safety proper a have We work. our do to way safe a find takento be cannot time that We believe that production is not so important his fellowemployees. own welfare, and for the safety and welfare of his for safely,both working for responsible is employee individual Each prevented. be can injuries industrial all that believe employees believes that BCL the safety and welfare of its Occupational SafetyandHealth l l l l l Maintaining social distancing and work and distancing social Maintaining gloves. and mask face of Distribution Disinfection ofworkplaces. Temperature checking. the useofwastewater. through factory in plantation Maximum plant, and sand and blasting shot for cabin Closed bag, Reduction of dust emissions through filter plant, core at emission born air for Scrubbers emissions, cupola for tank sludge Wet from homestrategy. is of paramount importance. Weimportance. paramount of as well as to increase their satisfaction level. satisfaction their increase to as well as customers our to services quality providing of commitment our of proof a is which System Management Quality ISO of version Company has also acquired ISO 9001 - 2015 The 1999. April in certificate 9002 ISO was BCL the in first Pakistan foundry to obtain goods toitscustomers. finished of dispatch the to supply materials inspection ofthecompleteprocess from raw developed a Quality Control System that covers has BCL castings'. into quality pour 'We is that and meet services expectations. Our motto performance and value and providing products on agreeing expectations, customers' the understanding as quality define we end, this improvement areessentialtooursuccess.To continuous to commitment relentless and quality that believes Company The pr by satisfaction customers' ensures BCL Consumer Protection Measures government Hajjscheme. under year expenseevery Company's at Hajj perform workers)to two sent and are officer employees under which three employees (one its for Scheme Hajj a has Company The its employees. of majority a for schemes fund pension and Company has provident fund as well as gratuity The policies. and benefits employment post and in-service programmeemployee of to its employees. The Company has a balanced providesfacilities also medical Company the provides subsidized food at its canteen. Further, towards the employees' welfare. The Company measures taking always is Company The Collective Bargaining Agent (CBA). relationship believesinmaintainingcordialBCL industrial Industrial Relations oviding quality product at competitive prices. with its employees and their and employees its 29 ANNUAL REPORT 2020 30 BOLAN CASTINGS LIMITED DIRECTORS’ REPORT withholding taxagent. exchequeras national the to amount hefty a contributed also Furthermore,Company the duties. additional & regulatory custom, million as sales tax and Rs. 24.897 million as 242.158 Rs. tax, income as million 39.061 Rs. includes This duties. and taxes of way the hascontributedRs.306.116millionto BCL Contribution toNationalExchequer Boardbasis. the quarterly to on CEO the by of internal controls which is formally reported to giveamonthlycertificationoncompliance In addition to above, all employees are required throughout theCompany. these high values, which has been disseminated addressing keydocument the is Conduct of high standards of business integrity. Our Code with act they that and business Company's the to applicable regulations and laws the with comply and observe employees all It is a fundamental policy of the Company that requirements. applicable legalandregulatory all with honesty,compliance in and integrity Company thatweconductourbusinesswith the of success financial and reputation conduct. standardhigh business to committed is BCL Business Ethics and Measures Anti-Corruption child. their to employment provides Company the cases, such in then work to employees issuchthattheycannotcontinue the of disability the where and employment their of continuity the ensure to made effortis If employeesbecomedisabledevery in asafeworkingenvironment. aptitudes, provided that they can be employed and abilities accordancetheir in with person and employment the of supportive be to continues BCL Employment ofSpecialPersons national exchequer during the period by period the exchequerduring national W e believe that it is vital to the to vital is it that believe e advancement of disabled of advancement corporate of significance the of aware deeply is BCL report. this to annexed are auditors external the by Regulations, 2019 duly reviewed and certified Companies (CodeofCorporateGovernance) Listed the with compliance of Statements Company are expected to conduct themselves. the of employees other all and management senior directors, the which by standards the setting conduct, of code a developed Further,years. many for place Boardthe has and significant policy guidelines, have been in / mission statements, overall corporate strategy For achievement of these principles, our vision accountability. and transparency honesty, of standards high with accordance in and responsible is which manner a in objectives business towardsour directed achieving is framework continuous basis.OurCorporategovernance a on reviewed and monitored are which corporate governance policies and procedures, sound established has Board the 2019, (Code of Corporate Governance) Regulations, Companies Listed the with accordance In value. core competitiveness and increasing corporate our enhancing in help will end this to made been progresshave the that and governance efforts to improve and optimize our corporate the that and Company the of growth term is ofgreatimportancetothesustainablelong is convinced that sound corporate governance Company The value. corporate enhance and relationship shareholder maintain to means of sound corporate governance as an important governance. The Company regards the building corporate of optimization sustained of all shareholders and is dedicated to pursuing checks and balance and protecting the interest Governance Compliance with Compliance Corporate Governance governance the Code of Corporate of Code the in achieving effective achieving in (800,000) (600,000) (400,000) (200,000) 200,000 400,000 600,000 800,000 (Rs.000) b eae- 8 Female Male (b) (a) Total numberofDirectors comprises thefollowing: Company our of Directors of Board The and aChiefExecutive Officer. directors elected seven of consists currently performance withbroader perspective,which commitment and ambition to achieve goals of with objectives strategic out setting and the The Boar Board ofDirectors Muhammad Salman Husain Chawala during Chawala Husain Salman Muhammad Mr. by rendered services commendable most the on appreciations its record on place to wishes Directors of Board The asDirector.Amin wasco-opted Mr.place Aamir his in and Company the of Chawala resigned from the Board of Directors In March 2020 Mr. Muhammad Salman Husain Mr. L Executive Directors (Chairman) Directors Other Non-executiveMr. SikandarM.Khan SyedJavaidAshraf Names Directors Independent Composition Shareholder’s Equity&Returnon Shareholder’s - or Board of Directors is responsible to govern d StructureandChanges 476,605 0521 072018 2017 2016 2015 9.84 ganization by establishing broad policies 452,661 5.72 Equity 574,148 17.03 (CEO) Mr. NisarA.Mirani S. M.IrfanAqueel Mr. SohailBashirRana Mr. Khalid Latif Hashmi Mr Return onEquity 639,518 20.86 . AamirAmin aeeq Uddin Ansari 381,802 (62.60) 2019 94,393 2020 (287.83) -400 -300 -200 -100 0 100 200 300 400 DIRECTORS’ REPORT externally. Company the represents Chairman, the with stewardship of the Company's assets and jointly for responsible also is He Board. the by and financial objectives which have been agreed Company and to ensure of delivery the strategic the managing for responsible is CEO The are workingeffectively. organization and mechanisms are in place and its that and responsibilities and obligations that theboard functionsproperly, itmeetsits The roleChairman's primary includes ensuring direction oftheCompany. leadership and vision in developing the strategic The Chairman is responsible to provide overall Chairman andCEO. the of roles the between responsibilities of division clear a is There management. the and Board the between independence greater ensures functions of separation The respectively.Mirani A. Mr.Nisar and Khan Executive Officer are held by Mr. Sikandar M. Chief the and Chairman of position The Officer Executive Chief and Chairman Board ofDirectors. of the Company w.e.f. April 27, 2020, by the has been reappointed as Chief Executive Officer of Chief Executive Officer, Mr. Nisar A. Mirani, completion of After three years term of office them. from company the of success the and expected apositivecontributiontowards Director Mr.as welcomed Amin also Aamir his tenure as Director. The Board of Directors making decision. when stakeholders other and shareholders the Company as well as the interests of BCL's The Board takes intoaccounttheinterestsof achievement of Company's business objective. towards contribution and participation in itsobjectivetoaddvaluethrough effective committed firmly stands and laws corporate efficient of significance the Boardacknowledges The Board Process dischar ge of duties imposed by the by imposed duties of ge dealing with aspects of the business are business the of aspects with dealing papers working comprehensive and items agenda the with along meetings of Notice the CompanySecretary. and Officer Financial Chief the by attended also were meetings These purpose. this for Boardthe by elected director a by absence, over by the Chairman of the Board and, in his presided were meetings The 2019-20. year The Board met four times during the financial meetings. of program annual through those responsibilities discharges Board The sets. it managed and achieves the strategic objectives ensuring The Board isaccountabletoshareholdersfor Board Meetings l l l l l l l l l include: to the BoardSpecific responsibilities reserved Approving appointments to the Board, to the HeadofInternalAudit. and Secretary Company CFO,CEO, of the Board Committees and to the positions Committees; and Board's the of activities the Reviewing performance oftheCompany; safety and health environmental, the including responsibility social corporate to relating matters Reviewing place; development andsuccessionplansarein management appropriate that Ensuring Company; the of shares Issuing expenditure; Approving majoracquisitionsandcapital management; risk and control financial of systems Company's the Reviewing Approving annual and quarterly accounts; Approving annual budget and projections; that the Company is appropriately is Company the for smooth running of the Company affairs. Company the of running smooth for analysis Actual vs Budget of review periodic and Budgets Corporate Annual finalizing Additionally,for responsible also is CFO the He takes careofassetsandfinancingthereof. the annualandquarterlyfinancialstatements. with the Chief Executive Officer, for presenting accounting matters and also responsible, along and financial all on Board the advising The ChiefFinancialOfficerisresponsiblefor time stipulated within directors the amongst circulating and Meeting Board of minutes is also responsible Secretary for compiling the Company the Additionally with. complied followed andapplicablerulesregulations are Boardprocedures that ensuring for and advising theBoard onallgovernancematters for responsible is Secretary Company The acquired certification under the said program. have directors two and Regulations the in Company meet exemption criteria as contained of shareholders. At present, five directors behalf of the on Company the of affairs the managing regarding responsibilities and its directors to acquaint them with their duties Company conductsanorientationcoursefor year,a the in once least At responsibilities. their of aware fully are directors the All informed board. an from benefit can meeting the that so Boardeach of Meeting advance in Secretary Company the by Directors to distributed defined by the Board. The proceedings of proceedings The Board. the by defined clearly are committees these of reference particular Boar the objectives, desired achieve to order In Board Committees AGM. of Notice the in given is which of detail 2020, AGM takeensuing the at place to is years three of term fresh for Directors are The existing elected directors of the Company Election ofDirector retiring d hasestablishedthreecommitteeswith epniiiis Te em of terms The responsibilities. in October 2020. Election of Election 2020. October in 31 ANNUAL REPORT 2020 32 BOLAN CASTINGS LIMITED external audit. of completion after and Company the of in a quarter prior to approval of interim results once least at meets formally Committee The requirements. regulatory relevant other and with the best practices of corporate governance compliance the ensures also Committee The problems. controlinternal identified of rectification the internal control systems regularly and supervises Committee reviews the implementation on the Company's internal control systems. The Audit the optimizing in role important an plays internal audit function and also in supervising responsibilities its performs Committee The fee. audit of level their and auditors the of on dismissal or resignation appointment, Board the to recommendations makes and process audit external the Committee also considers the effectiveness of and the external auditors of the Company. The relationship is maintained between the internal appropriate an that ensures Committee the objectives, these pursuing In system. management risk controland internal sound a of maintenance the and process audit and ensure theintegrityoffinancialreporting Board,to the is to findings its reports which Committee, Audit the of role primary The Salman HusainChawala. Audit CommitteeinplaceofMr. Muhammad appointed Director Mr. Aamir Amin as Member has Directors of Board the 2020, April In Muhammad Irfan Aqueel, and Mr. Aamir Amin. Committee areMr. KhalidHashmi,Syed Latif Syed Javaid Ashraf. The other members of the Director Independent an by chaired is and directors including two independent directors Audit committee comprises four non-executive independence Toand fairness objectiveness, the guarantee Audit Committee of Directorsintheirmeetings. Board CommitteesarereportedtotheBoard DIRECTORS’ REPORT of the Audit Committee, the Committee, Audit the (30,000) (Rs.000) 170,000 270,000 370,000 470,000 570,000 70,000 (HR&R) Remuneration and Resource Human The Committee Human Resource andRemuneration(HR&R) CFO. to required where and directors members, all to circulated are meetings of minutes and AuditCommittee recordedSecretary by properly are meetings of proceedings The Company. the of cycles reporting and financial the with coincide to times four met Committee the 2019-20, year financial the During Controls. Internal to related matters the audit and with the Internal Auditors to discuss the from arising issue any on discussion the facilitate to Auditors External with meetings separate holds annually Committee The etn o te omte ws held. was Committee the of meeting a year the During audit. internal of head chief financialofficer, and companysecretary of compensation and evaluation selection, and policies management resource human directors, of remuneration determining for framework policy a formulating Boardin the The HR & R Committee is responsible to assist Aqueel. Irfan Muhammad Syed and Ansari Uddin Mr.Laeeq are committee the of members other the while Ashraf, Javaid Syed director The committeeischairedbyanIndependent 361,880 0521 0721 2019 2018 2017 2016 2015 Committee 337,936 459,423 comprises three directors. Reserves 524,793 267,076 2020 (20,333) l l l the Company consists of following constituent: of directors independent including directors The remuneration payable to the non-executive objectives. strategic its achieving in Company the lead to attractandretainqualifiedpeoplewhowill remuneration policy adopted has been designed The directors. independent including the Committeemetfourtimes. year,the During concerned. circulatedall to and recorded properly are meetings of heads alsoattendthemeetings.Theminutes monthly basis. The CEO and all departmental bi- or monthly a on performance operating the reviews also Committee Company.The the of aspects administrative and financial technical, regarding strategy and activities the monitoring for responsible is BCS The Uddin Ansari. Hashimi, Mr. Sohail Bashir and Rana Mr. Laeeq Members of the committee are Mr. Latif Khalid is chaired by Mr. Sikandar M. Khan. The other The Board's (BCS) Committee for Supervision (BCS) Supervision for Committee Board's members anddirectors. all to circulated are meetings of minutes oftheCommitteeand recorded bySecretary properly are meetings of proceedings The remuneration the adopted has Directors of Board The Directors Non-Executive of Policy Remuneration incurred. expenses actual of Reimbursement Remuneration for performing extra service. or Committee(s). Boardthe of meetings attending Feefor policy for non-executive directors DIRECTORS’ REPORT ubro esn 1 2 1 1 Number ofperson n loacs6,712 and allowances Managerial remuneration The Company maintains a sound system of system sound a maintains Company The operations. of efficiency and effectiveness the ensure and requirements; regulatory and statutory with compliance ensure maintained; are records accounting proper that ensure assets; safeguardCompany's the system The directors are responsible for the Company's Internal Controls is includedinthisDirectors'report. statement on corporate and financial reporting review.Directors' business and operational the includes which Accounts and report prospects through Chairman's review, Directors' and position Company's the of assessment to The Board satisfies that it has met its obligation Financial Reporting Accountability and Audit follows: as are remuneration directors' the of Details Aggregate Directors'Remuneration es--375 - - 1,338 - - - - 197 - 1,698 - 784 2,579 1,167 690 736 133 Others Fees Medical expenses Utilities House Rent Bonus present of internal controls which aims to: aims which controls internal a balanced and understandable and balanced a ------(Rupeesinthousand) xctv ietr&Non- Director Executive he xctv Independent Executive Chief ,3 838375 18,338 9,635 199- 11,939 Executive ietrDirector presented to the Board's Committee regularly. previous year. These forecasts and results are and forecasts budget, against periodically monitored is year the during performance Actualprocess. budget annual detailed a to subject are operations its and Company The effectiveness of the system of internal controls. delegated theresponsibilityforreviewing loss. The Audit Committee has been formally or misstatement material against assurance reasonable only provide therefore, can, and objectives ratherthantoeliminatetheserisks business Company's the of achievement the impede may that risks manage and evaluate internal controls, which is designed to identify, l l l l ensure that: sufficient andareappliedinsuchawayasto are implemented, and developed been have controls,they processes,and as the systems Auditmakewhether determine to possible it Internal the by done work the of scope The effectiveness. their increase to proposals making by them improvehelps also It governance. corporate and control management, risk for used approach to assess the processes and systems objectives by using a systematic and methodical the operations. BCL's It helps to achieve BCL's assurance Internal Audit's mission is to provide objective Internal Audit timely fashion; a in available and reliable authorized, is information operational and Financial adequately; Risks are defined, evaluated and managed protected adequately. and efficiently used economically, acquired are resources financial and material informational, Human, requirements are statutory respected; and Directives, policies, laws, regulations and and to increase the effectiveness of guidelines inthisregard. IFAC observed have they that confirmed have auditors the and regulations listing except accordancein the with services other with them have not been appointed to provide The external auditors or the persons associated Pakistan. of Accountants Chartered of Institute by adopted as ethics of code on AccountantsFederation(IFAC)of guidelines partners areincompliancewithInternational its all and firm the that and Company the of spouses and minor children do not hold shares their firm, the of partners the of any or they that confirmed Further,have Pakistan. they and registeredwithAudit OversightBoard of Institute of Chartered Accountants of Pakistan the of programme Review Control Quality the under rating satisfactory a given been have they that confirmed have Accountants Chartered Co., & Ferguson A.F. M/s. of Corporate Governance) Regulations 2019. Compliance with the Listed Companies (Code of Statement on reporting for 67,000 Rs. YearlyHalf for (c) and Review Scope Limited 738,000 forAnnualAudit, (b)Rs.202,000 financial year2020-2021,atafeeof(a)Rs. Chartered Accountants as the auditors for the A.F.Co., M/s. & of Ferguson appointment re- the recommend Directors of Board As appointment. eligible, theyhaveofferedthemselvesforre- Co., CharteredA F.A. M/s. auditors present The Ferguson& External Audit to playitsrole effectively. Internal Audit has the independence required organizational structure is designed to ensure The Directors. of Board the of Committee Audit the to directly reports Audit Internal suggested by the Audit Committee, the Committee, Audit the by suggested ccountants retireandbeing 33 ANNUAL REPORT 2020 34 BOLAN CASTINGS LIMITED (10.00) DIRECTORS’ REPORT shareholders, ondemand. financial statements can also be dispatched to quarterly However,the shareholders. its to The CompanydispatchestheAnnualReports placed onthewebsitesoonafterpublication. and Quarterly Financial Statements, which are with shareholders and others is Annual Report communication principal its fromthis, Apart contents endorse Company the of Directors The Chairman's Review part oftheDirectors'Report. the Companyactivitiesandformsanintegral with dealing Report Annual the in included interested website (www.bolancastings.com) a maintains Company The Other also. newspapers English and Urdu leading in published and shareholders to dispatched are information necessary and agenda of AGM,theNoticemeetingincluding participation. Atleast 21 days before the date and shareholders, Meeting anopportunitytocommunicatewith General Annual the considers Board The Meeting General Annual the of use Constructive Relations withshareholders (5.00) 10.00 15.00 20.00 25.00 5.00 - 20.48 0521 0721 2019 2018 2017 2016 2015 of person the Chairman's Review,is Chairman's which the 18.11 Price EarningRatio information on the Company. 17.71 norgs their encourages , which offers any offers which , 10.03 (1.79) (2.04) 2020 in responsibility its of aware fully Boardis The Corporate and Financial Reporting Framework g) There are no significant doubts upon the f) controlsinternal sound of is system The e) Reporting Financial International d) Appropriate accounting policies have been c) Proper books of accounts of the Company b) The financial statements, prepared by the a) are oftheviewthat: Company your of Directors The framework. last decadeisanne along withk of A keysummary operating and financial data Operating andFinancialSummary respect Governance) Regulations,2019. Corporate of (Code Companies Listed the in detailed as Governance Corporate of practices best the from departure material no been has There concern. Company's abilitytocontinueasagoing implemented andmonitored. effectively been has and design in statements. been followedinpreparationoffinancial Standards, as applicable in Pakistan, have judgment. prudent and reasonable on based statements andaccountingestimatesare financial the to notes the in stated as those for except statements financial of preparation in applied consistently have beenmaintained. equity. in changes and flows cash operations, its of results the affairs, of state its fairly present Company the of management of corporate and financial reporting ey ratiosoftheCompanyfor xed. eso udRs. 127.51 million Trading intheCompanyShares Pension Fund Gratuity Fund Provident Funds follows: as were progress) in (audit 2020 30, June on as accounts un-audited their on based Fund Pension and Fund Gratuity The values of investments of Provident Funds, Funds Benefits Retirement of Investment the Company. for Statements Financial the to 30 Note to refer Please Taxation he xctv Director SyedJavedAshraf Chief Executive Nisar A.Mirani to signthereportonitsbehalf. Mirani, Chief Executive Officer of the Company Syed Javed Ashraf, Director and Mr. Nisar A. approved the Directors' Report and authorized meeting The Board of Directors of the Company in its Approval andAuthorization categorized The patternofshareholdingsalongwiththeir Pattern ofShareholdings under review. in the shares of the Company during the period and spouses their executivesand Directors, The minor held children did not carry children out did any not trade carry On BehalfoftheBoard detail details regarding taxation of taxation regarding details n etme 1, 2020 15, September on is annexed to the report. the to annexed is Rs. 51.28million Rs. 68.00million

AND ITSDISTRIBUTION STATEMENT OFVALUEADDED Revenue Generated VALUE ADDITION PARTICULARS Bought-In MaterialandServices Income Tax Government Salaries, Wages andbenefits Employees Financial Charges Shareholders &Fund Providers DISTRIBUTION TO: Other Income Sales Tax eandi uses/(tlzdi prtos (4,3)(103.74) (244,433) Retained inBuisness/(UtilizedOperations) (1,349,484) 1,574,726 2429 107.90 254,229 235,611 2561 100 235,611 4,5 102.78 242,158 4,8 62.60 147,485 Rs. 000 10,368 201 5.12 12,071 830 33.25 78,330 002019 2020 %% 2708 100 287,088 (1,513,898) 1,784,277 (8,2)(65.28) (187,422) 1950 69.50 199,520 287,088 Rs. 000 7,4 94.27 270,641 2,3 77.93 223,731 7,2)(24.77) (71,121) 16,709 128 17.85 51,258 49 ANNUAL REPORT 2020 50 BOLAN CASTINGS LIMITED e nrae/(erae nCs n ahEuvlns 0,8 100.0 107,586 Net Increase/(Decrease)inCashandEquivalents oa qiyadLaiiis9314 100.0 933,114 Cash Generated/(UsedIn)from Operations Cash Flow Total EquityandLiabilities Net Revenue Operating results Property, PlantandEquipment Statement ofFinancialPosition VERTICAL ANALYSIS Short-Term Debts Cash Generated/(UsedIn)from InvestingActivities Cash Generated/(UsedIn)from FinancingActivities Total ShareHolder'sEquity Administrative &DistributionExpenses Cost ofsales Cash Generated/(UsedIn)from OperatingActivities Other Expenses Long-Term Investments Total Assets Long-Term Deposits Other Current Liabilities Other Current Trade andOtherPayables Finance cost Income Tax Expense Other Non-Current Assets Other Non-Current (Loss) /Profit fortheyear Current Assets Current Deferred TaxDeferred Asset Other income Long-Term Loan Total Liabilities Deferred Grant Deferred Employee BenefitsObligations Investment Income ,2,0 106.6 100.0 1,420,700 1,332,568 2168 (20.4) (271,688) 1353 7.8 103,523 1585 182.0 195,845 2891 24.5 228,901 9314 100.0 933,114 6,2 60.1 561,021 3,2 89.9 838,722 1,4 23.5 52.9 219,148 493,845 2,3 13.5 125,733 1,7)(0.9) (12,071) 7,6 69.1 74,369 2,0 24.4 26,207 830 5.9 78,330 789 1.9 17,889 740 1.9 17,460 999 9.6 89,959 433 10.1 94,393 891 0.7 0.1 8,911 1,457 700 6.5 7,010 R.00 % (Rs. 000) ,3 0.6 5,232 ,5 1.1 9,956 ,9 0.3 2,694 2020 - - - - - (0,8)79.4 (307,982) 0,6 67.7 800,465 (153 13.3 (51,543) - - - 11226 100.0 1,182,266 ,8,6 100.0 1,182,266 ,6,1 109.9 100.0 1,663,413 1,513,636 (9,4)50.6 (196,147) (8,8)100.0 (387,780) 2899 (15.8) (238,999) 1574 8.3 125,794 2926 21.9 259,216 (826 7.3 (28,256) 0,1 68.4 808,414 8,0 32.3 381,802 3,4 11.3 133,449 0,4 51.4 607,845 R.00 % (Rs. 000) 1,3 1.0 15,135 128 3.4 51,258 751 1.5 17,581 111 4.7 71,121 968 4.2 49,618 706 8.2 97,056 154 0.1 1,574 2019 ,1 0.5 5,616 ,3 0.3 3,936 ------

- VERTICAL ANALYSIS 10688 100 8516 100 9507 100 12362 100.0 1,203,672 100.0 925,007 100.0 895,116 100.0 1,056,898 ,9,3 0. 17408 100 13346 100 16578 100.0 1,695,718 100.0 1,333,476 100.0 1,744,098 85.7 100.0 1,971,729 2,299,931 ,5,9 0. 8516 100 2,0 0. 12362 100.0 1,203,672 100.0 925,007 100.0 895,116 100.0 1,056,898 1934 56 9,2 . 569 57 7,6 4.7 79,569 5.7 75,619 5.4 93,721 5.6 129,384 2261 2. 8,4 07 1449 1. 8,5 15.5 187,058 19.9 184,429 20.7 184,942 22.0 232,681 1408 (2.) 0,9 4. 1,8 2. 5,5)37.3 (55,650) 128.6 414,988 142.4 206,191 (123.6) 114,048 R.00 % (Rs. 000) (596 6. 1,0) 79 (271 (.) - - 100.0 9.1 (149,104) (13,565) (7.1) 100.0 (5.7) 322,778 (22,771) (18,453) 100.0 (7.9) (13.0) 144,847 (11,403) (18,834) 100.0 60.6 73.5 (92,236) (55,906) (67,766) 3,0 . 9,7 . 2,7 . 4,1 2.8 46,915 1.9 25,870 5.6 97,776 5.8 133,402 3,1 05 5418 6. 5,6 89 4665 39.6 476,605 48.9 452,661 64.1 574,148 60.5 639,518 7,4 31 4,6 17 5,6 12 4,9 78.8 948,799 71.2 658,260 71.7 641,461 73.1 772,745 1,8 95 2,6 59 7,4 11 2,6 60.4 6.9 727,067 49.3 83,091 51.1 592,917 11.6 472,346 29.6 107,523 35.9 274,202 11.9 320,968 14.0 106,661 39.5 125,501 9.5 417,380 21.6 100,305 228,378 1,1 . 849 05 ,5 . 1,5 0.7 12,354 0.7 9,156 0.5 8,499 0.4 10,317 3,3 3.) 7,8 2. 6,0 1. 1559 90.9 (135,539) 112.8 364,002 120.9 175,083 (34.1) 31,436 2018 109 22 360 25 350 10 476 1.5 2.7 24,726 46,319 0.3 1.0 2.5 5,086 13,550 33,138 0.2 2.5 0.6 3,060 43,650 10,996 0.6 2.2 0.5 10,724 51,039 12,507 0.6 13,808 031 19 600 29 900 64 108 4.2 1.4 51,098 16,718 6.4 2.5 59,030 23,288 2.9 4.8 26,020 42,694 1.9 2.9 20,361 31,110 787 74 122 91 994 86 474 2.9 34,724 8.6 79,954 9.1 81,212 7.4 77,807 161 01 ,4 . 124 01 1 0.0 811 0.1 1,204 0.1 1,740 0.1 1,621 450 00 ------0.0 405.0 ,9 . 563 06 ,9 . 516 0.4 5,126 0.5 4,999 0.6 5,643 0.6 6,194 ,9 . 191 02 ,6 . 1,0 0.9 11,208 0.6 5,668 0.2 1,951 0.4 4,291 ------,9,7 59 11260 8. ,0,6 88.8 1,506,268 89.4 1,192,600 85.9 1,497,470 R.00 % (Rs. 000) 2017 R.00 % (Rs. 000) 2016 R.00 % (Rs. 000) 2015 51 ANNUAL REPORT 2020 Investment Income Deferred Grant Deferred Employee BenefitsObligations Short-Term Financing Long-Term Loan Total Liabilities Other Income (Loss) /Profit BeforeIncomeTax Deferred TaxDeferred Asset Current Assets Current Other Non-Current Assets Other Non-Current (Loss) /Profit fortheyear Operating (Loss)/Profit Reserves Total Shareholder'sEquity Total Assets Other Current Liabilities Other Current Trade andotherPayables Total EquityandLiabilities Cash Generated/(UsedIn)from FinancingActivities Other Expenses Administrative &DistributionExpenses Long-Term Investments Income Tax Expense Finance Cost Long-Term Deposits Cash Generated/(UsedIn)from InvestingActivities Cash Generated/(UsedIn)from OperatingActivities Gross (Loss)/Profit Cost ofSales Share Capital

52 BOLAN CASTINGS LIMITED Property, PlantandEquipment Statement ofFinancialPosition Cash Generated/(UsedIn)from Operations Cash Flow Net Revenue Operating results e nrae/(erae nCs n ahEuvlns 0,8 127.7 107,586 Net Increase/(Decrease)inCashandEquivalents HORIZONTAL ANALYSIS ,2,0 (14.6) 1,420,700 ,3,6 (12.0) 1,332,568 2168 13.7 (271,688) (30.0) (181,287) 2967 (16.3) (259,617) 1353 (17.7) 103,523 9314 (21.1) 933,114 (11.7) 228,901 1585 199.8 195,845 1,2 - (30.6) 29.5 114,725 561,021 125,733 3,1 (21.1) 4.8 64.2 933,114 (18.8) 838,722 219,148 493,845 2,3)(107.6) (20,333) 8,3)(41.2) (88,132) 1,7)(117.0) (12,071) 7,6 124.1 74,369 9,9 (75.3) 94,393 2,0 100.0 26,207 (Rs. 000) 830 52.8 78,330 999 81.3 100 89,959 17,889 740 (0.7) 17,460 891 (41.1) 8,911 147 (7.4) 1,457 700 (113.6) 7,010 ,3 (6.8) 5,232 ,5 1.1 9,956 2020 ,9 100 2,694 - - - - - Inc./ (dec.) year figure vs last % 11226 11.9 1,182,266 ,6,1 (15.6) 1,663,413 ,8,6 11.9 1,182,266 ,1,3 (34.2) 1,513,636 (0,8)1,079.7 (307,982) (9,4)272.0 (196,147) (8,8)(320.4) (387,780) 1977 (145.6) (149,777) 2899 (279.2) (238,999) (231.4) (258,862) 3010 (268.1) (310,120) 1574 (2.8) 125,794 2926 11.4 259,216 3182 (40.3) 381,802 (153 (23.9) (51,543) (826 100.0 (28,256) 6,7 (49.1) 267,076 1,2 - 4.6 114,725 808,414 3,4 33.0 166.2 133,449 607,845 0,6 91.8 800,465 1,3 46.7 15,135 128 309.8 51,258 968 (36.2) 49,618 706 376.7 97,056 751 (43.5) 17,581 111 39.3 71,121 154 (2.9) 1,574 ,1 (9.3) 5,616 ,3 (8.3) 3,936 (Rs. 000) ------

2019 (100.0) Inc./ (dec.) year figure vs last % HORIZONTAL ANALYSIS (Rs. 000) 2018 10688 1. 8517 (.) 2,0 2.) ,0,7 16.9 1,203,672 (23.2) 925,007 (3.2) 895,117 18.1 1,056,898 ,5,9 81 9,1 32 2,0 2.)12362 16.9 1,203,672 (23.2) 925,007 (3.2) 895,117 18.1 1,056,898 ,7,2 17 ,9,7 56 ,9,0 2.)15628 32.9 52.6 1,506,268 1,695,718 (20.8) (21.4) 1,192,600 1,333,476 25.6 30.8 1,497,470 1,744,098 31.7 31.9 1,971,729 2,299,931 6958 1. 7,4 68 4261 (.) 7,0 8.2 476,605 (5.0) 452,661 26.8 574,148 11.4 639,518 2261 2. 8,4 . 8,2 14 8,5 (3.5) 187,058 (1.4) 184,429 0.3 184,942 25.8 232,681 1408 4. 0,9 03 4498 857 5,5)(140.1) (55,650) 845.7 414,988 50.3 206,191 44.7 114,048 1934 3. 371 2. 569 (.)7,6 5.5 79,569 (5.0) 75,619 23.9 93,721 38.1 129,384 (596 100 (143 100 (271 100 - - (403.8) (594.1) - (149,104) (13,565) 316.5 36.0 100.0 322,778 (22,771) (18,453) 55.1 100.0 2.1 144,847 (11,403) (18,834) 163.7 100.0 259.8 (92,236) (55,906) (67,766) 1,2 1475 - 1,2 1475 - 11.1 114,725 361,880 24.6 - (6.6) 948,799 114,725 (30.6) 337,936 - 658,260 35.9 (2.6) 459,423 114,725 641,461 14.2 - 20.5 524,793 114,725 772,745 3,0 64 776 280 580 (49 695 (144.5) 46,915 (149.0) 71,640 (240.4) (44.9) 117,959 (45.0) 25,870 (38.5) 39,420 278.0 72,557 258.8 97,776 110.1 141,426 36.4 152,422 30.4 133,402 29.2 184,441 196,948 1,8 00 2,6 3.)4236 (50 2,6 23.4 (21.8) 727,067 33.4 83,091 (35.0) 592,917 29.4 (53.8) 472,346 107,523 274,202 (32.0) (1.5) 320,968 (54.2) 105,957 125,501 30.0 (5.3) 82.0 417,380 100,305 228,378 2,0 31 4,2 51 4,7 2.)1940 (962.9) 189,450 (25.6) 140,876 75.1 246,628 33.1 328,202 1,1 14 849 (.)916 (59 234 (2.1) 12,354 (25.9) 9,156 (7.2) 8,499 21.4 10,317 3,3 20 1503 5. 6,0 6. (3,3)(392.5) (135,539) 368.6 364,002 51.9 175,083 82.0 31,436 031 (18 601 (59 900 1. 5,9 (17.4) 36.8 51,098 16,718 15.5 39.3 59,030 23,288 (55.9) 83.3 26,021 42,694 (21.8) (27.1) 20,361 31,110 787 (.)8,1 . 7,5 3. 3,2 59.0 34,724 130.3 79,954 1.6 81,212 (4.2) 77,807 109 1. 4,5 2. 1,5 4.)2,2 (39.4) (25.7) 24,726 46,319 (45.2) (28.5) 13,550 33,138 222.1 (66.8) 43,650 10,996 16.9 13.7 51,039 12,507 388 2. 1,2 5. 300 (98 ,8 (100.0) 5,086 (39.8) 3,060 250.5 10,724 28.8 13,808 450 ------405.0 161 (.) ,4 45 ,0 86 1 9.1 811 48.6 1,204 44.5 1,740 (6.8) 1,621 ,9 . 563 1. 499 (.)516 33.1 5,126 (2.5) 4,999 12.9 5,643 9.8 6,194 ,9 16 ,5 5.)568 (94 128 (12.9) 11,208 (49.4) 5,668 (53.2) 2,655 61.6 4,291 ------Inc./ (dec.) year figure vs last % (Rs. 000) 2017 Inc./ (dec.) year figure vs last % (Rs. 000) 2016 Inc./ (dec.) year figure vs last % (Rs. 000) 2015 Inc./ (dec.) 53 year figure vs last

ANNUAL REPORT 2020 % Other Liabilities Unappropriated (accumulatedloss)/profit Premium onissuanceofRightShare Property, PlantandEquipment Cash UsedInfrom FinancingActivities Less: LongTerm Debts Less: Current Liabilities Less: Current Unrealized GainonLongTerm Investment General Reserves Others-Non Current Assets Others-Non Current (Loss) /Profit fortheyear (Loss) /Profit beforetax Operating (Loss)/Profit Net Working Capital Gross (Loss)/Profit

54 BOLAN CASTINGS LIMITED Current Assets Current FINANCIAL POSITION e aia mlyd94,393 ofCashFlows Summary Net CapitalEmployed hrhles qiy94,393 Share Capital REPRESENTED BY: Shareholders' Equity e hnei ahadCs qiaet 107,586 Net ChangeinCashandEquivalents Cash Generated/(UsedIn)from Cash Generated/(UsedIn)from OperatingActivities Revenue from contractswithcustomers INCOME Year ended30thJune DECADE ATAGLANCE Investing Activities 1,332,568 (468,948) (271,688) (259,617) (181,287) (161,928) 143,193 722,949 561,021 424,500 114,725 210,166 228,901 (88,132) 26,207 74,369 12,156 11,960 97,884 0021 0821 0621 2013 2015 2016 2017 2018 2019 2020 17,889 7,010 15366 22991 17408 13346 16578 11127 17594 17459 1,946,677 1,724,539 1,745,974 1,111,227 1,695,718 1,333,476 1,744,098 2,299,931 1,513,636 7521 3293 2413 3732 6726 5362 7439 5492 402,024 504,912 734,399 563,652 687,216 387,392 234,113 332,973 745,231 (8,8) 9,3) 4,4 2,7 1914 4,8 2601 (5,7)87,161 (155,375) (206,001) 49,081 (149,104) 322,778 144,847 (92,236) (387,780) 3182 6958 5418 4261 4665 4031 5715 5044 522,145 540,444 547,125 440,311 476,605 452,661 574,148 639,518 381,802 (8,6) 257 (447 (1,0) 8,9) 1779 1,8 564 78,522 35,654 10,585 (117,789) (85,994) (116,507) (14,427) 62,527 (181,660) 78,205 46,608 123,799 22,261 69,003 167,176 (105,525) 33,421 124,372 46,914 82,775 (146,343) 25,870 71,640 (83,989) 97,776 39,420 117,959 72,557 133,402 141,426 184,441 152,422 (238,999) 196,948 (310,120) (258,862) (0,8) 146 1503 3402 (3,3) 636 (7,0) 1739 186,039 (107,379) (179,106) 46,336 (135,539) 364,002 175,083 31,436 (307,982) (4,7) 2,0 4,2 4,7 8,5 2,5) 6,9 9,8 235,196 190,789 160,699 (21,956) 189,450 140,876 246,628 328,202 (149,777) 1467 5,7 874 8,1 786 7,1 241 2,9 14,277 27,599 32,431 74,116 67,816 82,318 68,714 51,471 114,637 4706 7394 6103 5765 5646 4609 5041 5321 587,268 583,261 590,411 466,009 516,456 537,615 661,003 723,924 437,036 8844 7275 6141 6820 9879 7160 10288 8999 739,686 819,929 1,072,818 761,620 948,799 658,260 641,461 772,745 808,414 4450 4450 4450 4450 4450 4450 4150 3550 323,500 385,500 104,296 411,500 104,296 424,500 104,296 424,500 114,725 522,145 424,500 114,725 540,444 424,500 114,725 547,125 424,500 114,725 440,311 114,725 424,500 476,605 452,661 114,725 574,148 639,518 381,802 2926 2261 1492 1449 1707 1395 2951 2065 235,330 240,645 219,561 193,925 187,057 184,429 184,942 232,681 259,216 (153 (776 (884 (843 (355 276 (,2) 3,3)(24,950) (32,439) (6,026) 2,746 (13,565) (18,453) (18,834) (67,766) (51,543) (826 (596 (143 (271 - - (089 (557 (73,927) (15,557) (20,869) - - (22,771) (11,403) (55,906) (28,256) 1,8 560 3,9 778 1,1 ,1 ,8 ,3 3,671 12,156 12,156 2,838 12,156 8,588 12,156 6,719 12,156 11,218 12,156 17,788 12,156 37,194 12,156 65,124 25,610 12,156 42,817 12,081 43,286 25,698 39,851 84,953 86,855 84,406 55,234 6,8 3,7 0,4 7,6 6,8 9,6 3,1 1,1 337,662 315,017 338,419 197,968 261,583 270,868 407,347 439,771 63,183 ------0421 2011 2012 2014 (Rupees inthousand) Dividend (%) Bonus Shares(%) Dividend Yield Ratio (%) Dividend Yield Ratio Assets Turnover % Ratio WIP Inventory TurnoverWIP Inventory -(days) Assets Turnover -(times) Net Sales(MT) Finished Goods Inventory TurnoverFinished GoodsInventory -(days) Debt-Equity Ratio Creditors Turnover (days) Ratio Fixed AssetsTurnover -(times) EBITDA (%)(Earningbeforeinterest,tax, ( Loss)/Profit beforeIncomeTax toSales(%) depreciation&amortization) At theyearend Capacity Ratio (%) Capacity Ratio Average Dividend (Rupeespershare) Dividend Cover Operating Cycle Earning Yield -yearendprice(%) Earnings pershare-EPS(Rs.) Quick Ratio Quick Ratio Dividend Payout(%) ( Loss)/Profit fortheyeartoSales(%) Return onAssets% Price Earning Ratio -yearendprice Price EarningRatio Lowest Production CapacityAttained(MT) Return onEquity(%) Debtors Turnover (days) Ratio Equity Turnover -(times) LEVERAGE RATIOS Highest SHARE PRICE-(RS.) Break upvalueofaShareRs.10/-each MARKET VALUE RATIOS Gross (Loss)/Profit (%) PROFITABILITY RATIOS Production CapacityInstalled(MT) PRODUCTION /Sales Raw Material Inventory Turnover MaterialInventory Raw -(days) ACTIVITY RATIOS Current Ratio Ratio Current LIQUIDITY RATIOS DECADE ATAGLANCE (287.83) 13,200 (20.39) (23.68) (19.48) (16.00) (11.56) (49.10) 0.37:1 0.78:1 (29.12) 14.12 44.42 61.00 6,623 48.23 27.82 6,839 (2.04) (6.61) 2020 5.82 8.23 1.43 0.70 5.48 22 31 99 25 50 ------5 2 1 2 9 4 0 2 9 9 19 24 50 43 39 22 41 29 - 21 .1 24 .9 - - 53 3.06 5.33 - - 2.39 2.45 3.31 2.14 - 197 6.0 286 12 13 00 40 09 52.25 50.90 44.00 50.02 91.35 91.25 218.68 169.00 139.78 1,0 320 1,0 320 1,0 320 1,0 320 13,200 13,200 13,200 13,200 13,200 13,200 13,200 13,200 13,200 2019 (57) .0 56 .4 27 95) .7 27 4.02 2.70 1.27 (9.50) 2.77 1.94 5.61 5.80 (15.79) (08) 16 .2 22 .9 (.0 21 .7 7.50 4.47 2.13 (9.20) 4.09 2.25 8.52 11.63 (20.83) (04) .2 81 .6 42 1.7 19 .0 6.36 4.00 1.91 (13.17) 4.22 2.96 8.11 8.02 (20.49) (26) 08 70 .2 98 2.7 40 .2 14.98 8.62 4.07 (23.97) 9.84 5.72 17.03 20.86 (62.60) (52) .9 99 .4 56 53) .1 86 10.00 8.60 15.30 6.31 11.92 (5.37) 5.34 5.66 (25.55) 3.84 4.88 9.97 5.53 9.59 5.65 (15.25) 9.97 (55.89) 05: .91 10: .71 05: .01 09: .11 1.12:1 1.84:1 0.71:1 1.62:1 0.91:1 1.46:1 0.50:1 1.35:1 0.55:1 1.38:1 0.77:1 1.7:1 1.00:1 2.7:1 0.79:1 2.32:1 0.50:1 1.08:1 2.2 26 1.2 .0 .0 (02) .8 42 7.91 4.28 1.68 (10.25) 3.90 2.80 10.92 12.62 (20.22) 8.5 163 2.4 6.0 6.2 3.4 3.3 3.5 43.75 38.75 38.63 39.74 62.12 65.30 128.84 126.33 87.85 3.0 166 5.8 4.5 8.5 3.0 4.0 3.0 49.00 37.50 40.00 36.00 83.75 40.75 150.88 116.64 37.30 8,694 3.2 8.6 3.0 3.5 3.9 2.5 3.5 2.0 35.25 26.60 33.25 29.45 32.89 39.35 39.00 83.66 35.92 3.8 5.4 5.5 3.6 4.4 3.8 5.6 5.2 50.06 51.82 52.46 14,895 38.38 12,094 41.54 11,921 7,342 39.46 10,966 50.05 8,602 55.74 11,199 33.28 14,723 9,215 4.0 6.0 4.0 7.4 131 2.1 6.9 7.4 70.00 74.84 66.99 120.91 103.14 78.74 41.00 60.00 45.00 (.9 1.3 1.1 1.1 2.8 (.1 2.2 83 6.53 8.39 20.62 (3.91) 20.48 18.11 17.71 10.03 (1.79) (.0 1.7 1.4 1.6 1.7 (.8 92 10 12.08 11.06 9.20 (1.98) 11.17 10.56 14.14 14.27 (9.90) 39 .0 30 .5 35 .2 31 .9 3.73 3.19 3.19 2.52 3.56 2.95 3.04 3.60 3.96 58 .8 94 .3 90 .3 79 .7 7.80 7.17 7.95 5.73 9.07 7.23 9.43 9.88 5.84 12 .8 19 .4 14 .8 13 .8 1.97 1.58 1.32 1.08 1.41 1.44 1.95 2.18 1.28 07 .6 05 .9 07 .3 07 .3 1.97 0.63 0.76 0.93 0.71 0.69 0.51 0.46 0.78 .9 .6 .2 .1 .4 .1 .1 .3 0.28 0.53 0.91 1.01 1.24 0.61 0.22 0.36 1.59 2 0 2 4 3 6 7 8 58 48 73 96 33 44 21 10 24 3 0 3 5 4 5 3 5 48 45 39 45 47 55 35 30 33 5 4 4 4 3 8 8 7 63 47 81 88 36 84 49 34 55 1 3 1 4 1 8 1 0 7 10 12 18 17 24 13 13 15 6 2 8 6 6 6 3 9 123 97 93 65 86 64 88 123 66 ------1 - 15 - 20 10 1.50 - 2.00 - - - - 20 - - 10 2.00 - 1.00 50 - 5.00 25 2.50 - - - - 2.0 5.9 4.4 4.0 - - 4.4 20.00 44.74 - - 48.90 44.44 58.69 21.50 - - 46 .0 22 .5 - - 22 5.00 2.24 - - 2.05 2.25 1.70 4.65 - 0821 0621 2013 2015 2016 2017 2018 1,9 156 847 1,6 ,7 224 1,0 16,278 12,800 12,264 8,575 11,368 8,437 11,566 16,294 042012 2014 55 ANNUAL REPORT 2020 2011 56 BOLAN CASTINGS LIMITED GRAPHICAL ILLUSTRATION (Rs.000) 1,000,000 1,100,000 1,300,000 1,500,000 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 (100,000) (Rs.000) 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 100,000 300,000 500,000 700,000 900,000 0 687,216 187,058 Property PlantEquipment 1,203,672 0521 0721 2019 2018 2017 2016 2015 0521 0721 2019 2018 2017 2016 2015 1.41 39,851

0521 0721 2019 2018 2017 2016 2015

Current Liabilities 67,816 948,799 387,392 184,429 925,007 1.44

84,953 Assets Turnover 82,318 658,260 Total Assets Liabilities 234,113 sesAssetsTurnover Assets 895,116 184,942 1.95 Other Non-CurrentAssets

86,855 68,714 641,461 1,056,898 332,973 232,681 2.18 Other -Deffered

84,406 51,471 772,745 1,182,266 745,231 1.28 259,216 Current Assets

55,234 114,637 808,414 933,114 2020 1.43 722,949 228,901 (Times) 2020

115,773 2020 143,193 561,021 0.00 0.50 1.00 1.50 2.00 2.50 (Rs.000) (35.00) (30.00) (25.00) (20.00) (15.00) (10.00) (Times) (%) (5.00) 10.00 15.00 100,000 150,000 200,000 250,000 300,000 10.00 11.00 12.00 13.00 14.00 15.00 0.00 5.00 50,000 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 3.90 - 0521 0721 2019 2018 2017 2016 2015 0521 0721 2019 2018 2017 2016 2015 3.56 187,058 0521 0721 2019 2018 2017 2016 2015 9.07 2.80 184,429 2.95 7.23 Fixed AssetsTurnover Fixed Assets Return onAssets Equity Turnover 10.92 184,942 9.43 3.04 Fixed AssetsTurnover 232,681 12.62 9.88 3.6 259,216 5.84 (20.22) 3.96 228,901 5.82 2020 (29.12) 14.12 2020 2020 (Times) 0.00 2.00 4.00 6.00 8.00 10.00 12.00 GRAPHICAL ILLUSTRATION (%) (Rs.000) (Rs.000) (60.00) (50.00) (40.00) (30.00) (20.00) (10.00) 10.00 20.00 0.00 (300,000) (200,000) (100,000) 100,000 200,000 300,000 (200,000) (100,000) 100,000 200,000 300,000 - - 4.88 0521 0721 2019 2018 2017 2016 2015 189,450 117,959 0521 0721 2019 2018 2017 2016 2015 11.17 0521 0721 2019 2018 2017 2016 2015 140,876 5.53 Gross Margin Profit-GP 72,557 10.56 Gross Profit Earning Yield Operating Profit 246,628 5.65 152,422 14.14 328,202 9.97 G.P margin% 196,948 14.27 (149,777) (9.90) (55.85) (258,862) (88,132) (6.61) 2020 (181,287) (49.10) 2020 2020 (15.00) (10.00) (5.00) 10.00 15.00 20.00 25.00 5.00 - (%) (Rs.000) (Days) (Days) 10 20 30 40 50 60 70 80 90 1,000,000 1,500,000 2,000,000 2,500,000 0 10 15 20 25 30 35 40 45 50 500,000 5 - 47 0 0521 072018 2017 2016 2015 17 0521 0721 2019 2018 2017 2016 2015 33 1,695,718 43 10,966 Raw Material 0521 0721 2019 2018 2017 2016 2015 55 Sales Value -SalesTonnage 24 44 1,333,476 Inventory TurnoverInventory 39 8,602 Debtors Turnover Sales Value I FinishedGoods WIP 35 13 1,744,098 11,199 21 30 30 2,299,931 13 14,723 Sales Tonnage 41 10 33 1,513,636 2019 9,215 15 29 24 1,332,568 6,839 2020 31 2020 2020 22 5 10,000 12,000 14,000 16,000 25 2,000 4,000 6,000 8,000 0 57 (MT) ANNUAL REPORT 2020 58 BOLAN CASTINGS LIMITED FOR THEYEARENDEDJUNE30,2020 GOVERNANCE) REGULATIONS,2019 LISTED COMPANIES(CODEOFCORPORATE STATEMENT OFCOMPLIANCEWITH 2 The Board hasformedcommitteescomprisingofmembers givenbelow: Board. the of approval 12. before statements financial the endorsed duly Officer Executive Chief and Officer Financial Chief 11. including Audit, Internal of Head and officer,Secretary financial Company chief of appointment the approved has Board The 10. r the However,attended directors. have its directors programfor two training any arrange not Boarddid the year the During 9. The Board has a formal policy and transparent procedures for remuneration of directors in accordance with the Act and these 8. . ThemeetingsoftheBoard werepresidedoverbytheChairmanand,inhisabsence,adirectorelectedBoard forthi 7. AllthepowersofBoard havebeendulyexercised anddecisionsonrelevantmattershavebeentaken bytheBoard/ shareho 6. TheBoard hasdevelopedavision/missionstatement,overallcorporatestrategyandsignificantpoliciesofthe Company. The 5. throughoit disseminate takento been have appropriatesteps that ensured has and Conduct of Code a prepared has company The 4. asadirectoronmorethansevenlistedcompanies,includingthis Thedirectorshaveconfirmedthatnoneofthemisserving 3. ThecompositionofBoard isasfollows: 2. Thetotalnumberofdirectorsare8(eight)asperthefollowing: 1. The companyhascompliedwiththerequirementsofRegulationsinfollowingmanner: training inpreviousyearsandfivedirectorsmeetexemption criteriaascontainedintheRegulations; )Audit Committee: a) Regulations; the of requirements relevant with complied and employment of conditions and terms and remuneration of meetingBoard; The Board hascompliedwiththerequirementsofAct andtheRegulationswithrespecttofrequency, recording andcirculating mi empowered bytherelevantprovisions oftheAct andtheseRegulations; the company; mainta is updating or approval of date their with along policies significant the of particulars recordof complete that ensured the Companyalongwithitssupportingpoliciesandprocedures; erstwhile Code2012wasinplacepursuanceofListingRegulationsPakistanStockExchange. th when elected Board the of size overall of view in keeping sufficient considered two as directors independent of number The * - 8 : : Female Director b. MaleDirectors a. r ai mnMember Member Chairman Member Mr. AamirAmin S. M.IrfanAqueel Mr. Khalid Hashmi Latif Syed JavaidAshraf xctv ietr Mr. UddinAnsari Laeeq Mr. SikandarM.Khan Names SyedJavaidAshraf Executive Directors Non-executive Directors Independent Directors Category Mr. NisarA.Mirani(CEO) S. M.IrfanAqueel Mr. SohailBashirRana Mr. KhalidHashmi Latif Mr. AamirAmin Regulations; s purpose. Board has company; equired lders as ined by ined nutes their ut e 9 Explanation fornon-compliancewithrequirements,otherthanregulations3,6,7,8,27,32,33and36arebelow: 19. 16. The statutory auditors of the company have confirmed that they have been given a satisfactory ratingundertheQualityCont auditorsofthecompanyhaveconfirmedthattheybeengivenasatisfactory Thestatutory 16. an experienced qualified, suitably is audit internal of head The function. audit internal effective an up set Boardhas The 15. Thefrequencyofmeetings(quarterly/yearly)thecommitteeswereasperfollowing: 14. compliance for committee the to advised and documented formed, been have committees aforesaid the of reference of terms The 13. GOVERNANCE) REGULATIONS,2019 LISTED COMPANIES(CODEOFCORPORATE STATEMENT OFCOMPLIANCEWITH 18. We confirm that all requirements of regulations 3, 8, 27, 32, 33 and 36 of the Regulations have been complied with. However with. complied been have Regulations the of 36 and 33 32, 27, 8, 3, regulations of requirements all that Weconfirm 18. acco exceptin services other provide to appointed been not have them with associated persons the or auditors statutory The 17. .Nmnto omte 29(1) Explanation No RegulationNo. 5 NominationCommittee 2. RepresentationofMinorityshareholders 1. Requirement S. No. October 28,2020;and held be Boardto the of election reconstitution/next on Company the on applicable be would 7 and 6 regulations of requirements September 15,2020 30(1) Chairman M.KHAN SIKANDAR RiskManagementCommittee 3. with thecompany'spoliciesandprocedures. ) HRandRemunerationCommittee: b) guidelines inthisregard; IFA observed have they that confirmed have auditors the and requirement regulatory other any or Regulations these Act, the with ordirectorofthecompany; company secretary executiveofficer,officer,interna chief financial of the chief head of children) non-dependent and dependent parent, (spouse, close a not are audit the in involved firm the of partners the and they that and Pakistan of Accountants Chartered of Institute by adopted as ethics of code (IFAC)Accountantson of guidelines Federation International with compliance in are partners their AuditBoardwith Oversight they registered that and Pakistan, AccountantsPakistan of Chartered of of program Institute the of of directorsbyproxy solicitation facilitated bytheBoard tocontestelection The minoritymembersasaclassshallbe h or a osiueters aaeettheBoard accordingly. to theBoard. management procedures andpresent areport outareviewofeffectivenessrisk to carry thetermsofreferenceHR&RCommitteewill as itmaydeemappropriate initscircumstances, committee, ofsuchnumberandclassdirectors, The Board mayconstitutetheriskmanagement appropriate initscircumstances. number andclassofdirectors,asitmaydeem designated asthenominationcommittee,ofsuch The Board mayconstituteaseparatecommittee, ui omte Quarterly Yearly Member Chairman Member HR &RemunerationCommittee Audit Committee S. M.IrfanAqueel Mr. UddinAnsari Laeeq Syed JavaidAshraf ietr ersnig ioiy shareholders. minority representing director to performtherequistefunctions.Inthisregards, The Board intends to designate HR & R Committee performs the requisite functions and apprises and functions requisite the performs BoardnextMeeting. in amended accordinglybe The Internal Audit Department of the Company the of Department Audit Internal The n itne t cnet lcin as election contest to intended one d conversant d rol Review relative l audit, l rdance and all and , the , the on C . 59 ANNUAL REPORT 2020 INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF BOLAN CASTINGS LIMITED

Review Report on the Statement of Compliance Contained in Listed Companies (Code of Corporate Governance) Regulations, 2019

We have reviewed the enclosed Statement of Compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2019 (the Regulations) prepared by the Board of Directors of Bolan Castings Limited for the year ended June 30, 2020 in accordance with the requirements of regulation 36 of the Regulations.

The responsibility for compliance with the Regulations is that of the Board of Directors of the 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 any non-compliance with the requirements of the Regulations. A review is limited primarily to inquiries of the Company's personnel and review of various documents prepared by the Company to comply with the Regulations.

As a part of our audit of the financial statements we are required to obtain an understanding of the 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 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.

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 June 30, 2020.

Chartered Accountants Karachi

Dated: September 30, 2020

A. F. FERGUSON & CO., Chartered Accountants, a member firm of the PwC network State Life Building No. 1-C, I.I. Chundrigar Road, P.O. Box 4716, Karachi-74000, Pakistan Tel: +92 (21) 32426682-6/32426711-5; Fax: +92 (21) 32415007/32427938/32424740;

KARACHI LAHORE ISLAMABAD INDEPENDENT AUDITOR’S REPORT

To the members of Bolan Castings Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the annexed financial statements of Bolan Castings Limited (the Company), which comprise the statement of financial position as at June 30, 2020, and the statement of profit or loss, the statement of profit or loss and other comprehensive income, the statement of changes in equity, the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information, and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of the audit.

In our opinion and to the best of our information and according to the explanations given to us, the statement of financial position, statement of profit or loss, 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 forming part thereof conform with the accounting and reporting standards as applicable in Pakistan and give the information required by the Companies Act, 2017 (XIX of 2017), in the manner so required and respectively give a true and fair view of the state of the Company's affairs as at June 30, 2020 and of the loss and other comprehensive loss, the changes in equity and its cash flows for the year then ended.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants as adopted by the Institute of Chartered Accountants of Pakistan (the Code) and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, 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 financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

A. F. FERGUSON & CO., Chartered Accountants, a member firm of the PwC network State Life Building No. 1-C, I.I. Chundrigar Road, P.O. Box 4716, Karachi-74000, Pakistan Tel: +92 (21) 32426682-6/32426711-5; Fax: +92 (21) 32415007/32427938/32424740;

KARACHI LAHORE ISLAMABAD Following is the Key audit matter:

How the matter was addressed S. No. Key Audit Matter in our audit

(i) Deferred Tax Asset

(Refer note 7 to the financial statements)

Under International Accounting Standard 12 Our audit procedures amongst others include the "Income Taxes", the Company is required to review following: recoverability of the deferred tax assets recognized in the statement of financial position at each obtained understanding of the income taxes reporting period. process, and evaluated the design and tested management's controls over the calculation of the Recognition of deferred tax asset is dependent on deferred tax asset and the review of the future management's estimate of availability of sufficient recoverability; future taxable profits against which carried forward losses and tax credits can be utilized. The future tested management's computation of un-used tax taxable profits are based on approved projections. losses for which deferred tax asset has been This estimation involves a degree of uncertainty recognized; and requires judgement in relation to the future cash flows and also involves assessment of timing analyzed the requirements of Income Tax of reversal of un-used tax losses. Ordinance, 2001, in relation to above and considering the ageing analysis, expiry periods As at June 30, 2020, the Company has recognized of relevant deferred tax assets and tax rates enacted net deferred tax asset amounting to Rs. 95 million in consultation with our in-house tax specialist; mainly on account of unused tax losses. assessed the reasonableness of taxable profits We considered this as a key audit matter due to projections along with the assumptions such as the inherent uncertainty in forecasting the amount growth rate, production patterns, future revenue and timing of future taxable profits and the reversal and costs; of temporary differences and significant management judgement regarding assumptions tested mathematical accuracy of future projections used in this area. and the use of appropriate tax rate applicable on temporary differences; and

assessed the appropriateness of management's accounting for deferred taxes and the accuracy of related disclosures in accordance with the accounting and reporting standards. Information Other than the Financial Statements and Auditor's Report Thereon

Management is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Board of Directors for the Financial Statements

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 requirements of Companies Act, 2017 (XIX of 2017) and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Board of directors are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that 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 misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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 evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

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 Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are 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 to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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.

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, 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) no Zakat was deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980).

The engagement partner on the audit resulting in this independent auditor's report is Syed Fahim ul Hasan.

A. F. Ferguson & Co. Chartered Accountants

Karachi

Date: September 29, 2020 66 BOLAN CASTINGS LIMITED T T oa qiyadlaiiis933,114,448 Total equityandliabilities Contingencies andcommitments The anne Non-current liabilities Non-current LIABILITIES Capital andreser EQUITY ANDLIABILITIES Non-current assets Non-current ASSETS AS AT JUNE30,2020 STATEMENT OFFINANCIALPOSITION Cur Cur tlast 933,114,448 otal assets tllaiiis 838,721,898 otal liabilities eerdgat19 17 grant Deferred Reserves netre 11 Inventories ogtr on19 18 portionoflong-termdeposits Current Long-term loan ogtr eois18 16 Long-term deposits Share capital trs pr at n os ol 10 Stores, sparepartsandloosetools on n dacs13 12 14 Trade depositsandshort-termprepayments Loans andadvances Trade receivables ogtr on 6 5 4 Long-term loans Long-term investment Property, plantandequipment ahadbn aacs15 Cash andbankbalances hr-emfnnig22 21 19 9 Short-term financing Unclaimed dividend portionoflong-termloan Current Employee benefitsobligations rd n te aals20 Trade and otherpayables Refunds duefrom theGovernment-salestax Other receivables ogtr eois8 7 9 Employee benefitsprepayment Long-term deposits taxasset Deferred Taxation -paymentslesspr rent assets rent liabilities x ed notes1to42formanintegralpartofthesefinancialstatements. ves he xctv ChiefFinancialOfficer Chief Executive ovision Director Note 23 561,020,531 722,948,655 493,845,173 114,725,290 123,843,606 219,147,937 115,773,243 172,157,921 228,900,903 220,833,567 372,093,917 (20,332,740) 89,958,811 17,888,910 17,459,875 94,392,550 28,228,101 95,524,645 25,301,704 6,408,170 5,231,810 8,326,869 3,487,166 5,661,925 2,693,712 4,077,790 Rupees 2020 806,454 348,074 722,221 829,000 152,002 1,182,266,418 1,182,266,418 808,413,927 745,230,635 607,845,445 114,725,290 126,274,513 800,464,880 133,449,279 381,801,538 267,076,248 130,691,149 307,234,973 259,215,767 202,416,056 373,852,491 12,821,986 49,618,043 11,301,343 17,580,625 55,234,245 80,580,627 15,847,317 11,832,931 5,616,202 3,524,426 1,516,553 3,806,541 Rupees 411,485 310,037 836,000 2019 - - - Administrative e te noe28 The annex Other income noetxepne30 Income taxexpense Loss beforetax itiuincs 26 Distribution cost iac ot29 Finance cost Operating loss eeu rmcnrcswt utmr 24 Revenue from contractswithcustomers FOR THEYEARENDEDJUNE30,2020 STATEMENT OFPROFITORLOSS oto ae 25 Gross loss Cost ofsales osprsae31 Loss pershare Loss fortheyear ed notes1to42formanintegralpartofthesefinancialstatements. pne 27 xpenses he xctv ChiefFinancialOfficer Chief Executive Director Note (1,420,700,485) 1,332,568,120 (259,617,477) (181,287,386) (271,688,324) (38,176,292) (65,346,781) (78,330,091) (88,132,365) (12,070,847) 10,368,052 Rupees 2020 (23.68) (1,663,413,135) 1,513,636,182 (310,120,122) (149,776,953) (258,861,928) (238,999,489) (49,354,120) (76,439,969) (51,258,194) 16,709,114 71,120,633 Rupees 2019 (20.83) 67 ANNUAL REPORT 2020 68 BOLAN CASTINGS LIMITED oa opeesv osfrteya (287,408,988) Total comprehensivelossfortheyear OtherComprehensiveIncome(FVTOCI)-note5 The anne Remeasurementsofemployeebenefits-note9 Items notpotentiallyreclassifiabletoProfit orLoss Other comprehensiveincome/(loss): Loss fortheyear FOR THEYEARENDEDJUNE30,2020 AND OTHERCOMPREHENSIVEINCOME STATEMENT OFPROFITORLOSS Investmentatfairvaluethrough Unrealisedlossonrevaluationof Impactofdefer x ed notes1to42formanintegralpartofthesefinancialstatements. red tax he xctv ChiefFinancialOfficer Chief Executive Director (271,688,324) (15,599,914) (21,971,710) 6,371,796 Rupees (120,750) 2020 (229,035,164) (238,999,489) (13,529,750) 23,494,075 29,672,711 (6,178,636) Rupees 2019 Net cashgeneratedfrom /(usedin)financingactivities Net cashgeneratedfr C Net increase/(decrease)incashandequivalents Net cashgeneratedfr C CASH FLOWSFROMOPERATING ACTIVITIES FOR THEYEARENDEDJUNE30,2020 STATEMENT OFCASHFLOWS ahadcs qiaet tedo h er33 Cash andcashequivalentsatendoftheyear Theannex Cash andcashequivalentsatbeginningoftheyear ASH FLOWSFROMINVESTINGACTIVITIES ASH FLOWSFROMFINANCINGACTIVITIES Pr Mark-up paid Increase inlong-termdeposits-net Pr Dividend received Purchase ofproperty, plantandequipment Investment intermdepositreceipts Return receivedonsavingsanddepositaccounts ahgnrtdfo ue n prtos32 Cash generatedfrom /(usedin)operations Employee benefitspaid Income taxpaid Decrease inlong-termloans Dividend paid oceeds from disposalofproperty, plantandequipment oceeds from long-termloan ed notes1to42formanintegralpartofthesefinancialstatements. om /(usedin)investingactivities om /(usedin)operatingactivities he xctv ChiefFinancialOfficer Chief Executive Director Note (491,293,203)

(598,879,659) 195,844,673 107,586,456 (77,019,011) (39,060,580) 26,244,547 74,368,747 26,207,287 Rupees (2,404,590) (5,142,663) 7,010,422 7,957,941 2020 (260,672) 575,000 882,071 (37,260) 7,000 - (454,180) (307,981,583) (196,146,975) (598,879,659) (211,099,176) (387,780,483) (61,205,765) (34,401,667) (10,463,417) (28,255,825) (28,255,825) (51,543,075) (65,621,854) (1,357,670) Rupees 8,542,577 2019 862,500 711,793 10,000 - 69 ANNUAL REPORT 2020 70 Final cashdividend@25%fortheyear T BOLAN CASTINGS LIMITED year endedJune30,2019 Total comprehensivelossforthe otal comprehensivelossforthe h ereddJn 0 00 1,9,1) 1070 (57064 (15,720,664) (15,720,664) (120,750) (15,599,914) ------theyearendedJune30,2020 -Othercomprehensivelossfor endedJune30,2020 -Lossfortheyear year endedJune30,2020 ne ue3,21 - - - (86133 - (86133 (28,681,323) (28,681,323) - (28,681,323) - - - ended June30,2018 ne ue3,21 - - - (3,9,8) 289949 (238,999,489) 9,964,325 (238,999,489) - 9,964,325 (13,529,750) (238,999,489) 23,494,075 ------theyearendedJune30,2019 -Othercomprehensivelossfor endedJune30,2019 -Lossfortheyear Theannexed notes1to42formanintegralpartofthesefinancialstatements. Balance asatJuly1,2018 FOR THEYEARENDEDJUNE30,2020 STATEMENT OFCHANGESINEQUITY aac sa ue3,22 147520 1,5,8 2,0,0 489825 1,5,7 2,3,4)94,392,550 (20,332,740) 11,959,875 (468,948,295) 424,500,000 12,155,680 114,725,290 Balance asatJune30,2020 Balance asatJune30,2019 he xctv ChiefFinancialOfficer Chief Executive ------( 147520 1,5,8 2,0,0 25660 2,1,7 2,9,3 639,518,025 524,792,735 25,610,375 62,526,680 424,500,000 12,155,680 114,725,290 147520 1,5,8 2,0,0 116007 1,8,2 6,7,4 381,801,538 267,076,248 12,080,625 (181,660,057) 424,500,000 12,155,680 114,725,290 Capital Share - - - (8,8,3) 1070 (8,0,8)(287,408,988) (287,408,988) (120,750) (287,288,238) ------(1,0,1) 1,2,5) 290514 (229,035,164) (229,035,164) (13,529,750) (215,505,414) - - - premium Share Capital General Director Revenue Unappropriated (Accumulated Reserves Rupees) Profit / loss) (7,8,2) 216834 (271,688,324) (271,688,324) - (271,688,324) ------revaluation of investment at Gain/(Loss) fair value on Sub Total Total 1.1 Impact COVID-19 onthefinancialstatements ImpactCOVID-19 1.1 THECOMPANY ANDITSOPERATIONS 1. THEYEARENDEDJUNE30,2020 FOR NOTES TOANDFORMINGPARTOFTHEFINANCIALSTATEMENTS 2.1.1 2.1 2. SIGNIFICANT ACCOUNTINGPOLICIES SIGNIFICANT 2. The Company is a subsidiary ofMillatTractorsThe Companyisasubsidiary Limited(theParentCompany). Balochistan, Pakistan. The Stock Exchange (PSX).TheCompanymanufacturesandsellscastingsfortractorsautomotiveparts. Bolan Castings Limited (the Company) is a public limited company incorporated in Pakistan on July 15, 1982 and listed on the Pa and directivesissuedundertheCompanies Act, 2017 havebeenfollowed. Where provisions ofanddirectivesissued undertheCompaniesAct, 2017differfrom theIFRSStandards orIFAS, theprovisions Provisions ofanddirectives issuedundertheCompaniesAct, 2017. - under notified as Pakistan of Accountants Chartered of StandardsAccountingInstitute (IFAS) Financial the Islamic by issued - - The accountingandreportingstandar These the virushasresultedinauthoritiesimplementingnumer markets.global of and spread local The impact and evolve to continue virus) (the pandemic COVID-19 the surrounding events The Statement ofcompliance Basis ofpreparation estimate theoverallimpactsonbusiness. to closely very situation the monitor to continues Company the time, same the At due. come they as obligations and requirements cap working anticipated its meet to liquidity current improveits will refunds tax income of realization subsequent and company existed that triggered impairment of its assets. Further, the Company believes the availability of subsequent sales orders from 19. note in The Companyhasassessedtherecoverabilityofitsassetsforimpairmentandconcludedthat,asatJune30,2020,nosuchindic disclosed as salaries and wages of payment the for scheme refinance the under obtained was loan long-term A - Declineinproduction andrevenue; - of theCompanyincludefollowing: with the directives issued by the provincial government. The extent of the impact of the virus on the operational and financial orderfromin days 2020 19 march17, of compl April period to to a 2020 for 30, plant its down shutting and continuity business The Company activated its response plan accordingly which included prioritizing the health and safety of its employees while ma quarantines, andshutdowns. consistently appliedtoalltheyearspresented,unlessother The principalaccountingpoliciesappliedinthepreparationofthesefinancialstatementsaresetoutbelow. Thesepoliciesha geographical location and address of the Company's business unit, including plant is RCD Highway, Hub Chowki, District Lasbela, the CompaniesAct, 2017;and notified undertheCompaniesAct, 2017; International FinancialReportingStandard (IFRSStandards) issuedbythe InternationalAccounting Standards Board (IASB)as financial statements have been prepared in accordance with the accounting and reporting standardsPakistan. reporting in accordanceand applicable in accounting as prepared the been with have statements financial ds applicableinPakistancompriseof: ous measurestotr wise stated. y tocontainthevirus,suchastravelbansandrestrictions, performance the parent intaining ve been kistan ation ital of y 71 ANNUAL REPORT 2020 72 BOLAN CASTINGS LIMITED . Property, plantandequipmentdepreciation 2.3 Overallvaluationpolicy 2.2 .. Changesinaccountingstandards, interpretationsandpronouncements 2.1.2 NOTES TOTHEFINANCIALSTATEMENTS These financial statements have been prepared underthehistoricalcostconventione These financialstatementshavebeenprepared Standards, interpretationsandamendmentstopublishedapproved c) up tothemonthimmediatelyprecedingdisposal.Assets’residualvaluesandusefullivesarereviewed,adjustedifappr dispos on and use to put is asset the which in month fromthe charged is additions on Depreciation statements. financial the to work-in-pr Property, plant and equipment are stated at cost less accumulated depreciation and impairment (if any) except freehold land and )Standards, interpretationsandamendmentstopublishedapproved a) Gains andlossesondisposalofproperty, plantandequipmentarerecognisedintheStatementofProfit orLoss. are capitalisedandtheassetssoreplaced,ifany, areretired. Maintenance andnormalrepairsarecharged toStatementofProfit Majorrenewalsandimprovements orLossasandwhenincurred. the assetsarewrittendowntotheirrecoverableamount. amou exceedrecoverable values estimated the carrying the where existsand indication such any If recoverable. be not may value valueofoperatingassetsarereviewedforimpairmentwheneventsorchangesincircumstances indicatethattheca The carrying at eachStatementofFinancialPosition date. )Standards, interpretationsandamendmentstopublishedapproved b) accountingstandar IFRS 16'Leases' accountingstandards thatbecameeffectiveduringtheyearandrelevant but areconsiderednottoberelevanttheCompany'sfinancialstatementsandhencehavebeendetailedhere. There arecertainamendmentsandinterpretationthatmandator 2019 areconsiderednottoberelevantCompany'sfinancialstatementsandhencehavebeendetailedhere. The IFRS 16'Leases'-replacespreviousleasestandar accountingstandar The managementhasassessedthatthenewstandard doesnothaveanysignificantimpactonitsfinancialstatements. are shorttermandlowvalueleases. exceptionly The recognised. are rentals pay to liability financial a and item) leased the use to right standard,(the asset an new the Under removed. is leases finance and operating between distinction the as Position, Financial of Statement the on ogress whicharestatedatcost.Depreciationiscalculatedusingthereducingbalancemethodratesgiveninnote4 new standard, amendments and interpretations that are mandatory for accounting periods beginning on or after July 1, July after or on beginning periods accounting for mandatory are that interpretations and standard,amendments new ds thatarenotyeteffectivebutrelevant ds thatareeffectivebutnotrelevant d: IAS17Leases.Itwillresult y foraccountingperiodbeginningonorafterJuly1,2020 x cept asdisclosedintheaccountingpolicynotes. in almostallleasesbeingrecognised opriate,

capital rrying ons nt, als . Inventories 2.6 2.5.2 2.5.1 Incometax 2.5 Intangibleassetsandamortisation 2.4 NOTES TOTHEFINANCIALSTATEMENTS deferred taxliabilityissettled. deferred o realised is asset tax deferred related the when apply expectedto are Positionand Financial date of Statement the by enacted taxisdeterminedusingratesandprevailinglawfortaxationonincomethathavebeenenacted orsubstant Income. Deferred Comprehensive Other and Loss or Profit of Statement and Loss or Profit of Statement the in credited or charged is tax Deferred differences,unusedtaxlossesandcreditscanbeutilised. which thedeductibletemporary availabl be will profits taxable future that probable is it that extent the to recognised is asset tax deferred and differences and taxisaccountedforusingthebalancesheetliabilitymethodonalltemporar Deferred taxation onincome,usingprevailingtaxratesaftertakingintoaccountcreditsandrebatesavailable,ifany f law prevailing the accordancewith year,in the determined for income taxable the on based is taxation current for charge The that thecostofsuchassetcanbemeasuredreliably. Thesearestatedatcostlessaccumulatedamortisationandimpairment,if An intangibleassetisrecognisedifitprobable thatfutureeconomicbenefitsattributabletotheassetwill flowtotheCo Items in transit are valued at cost comprising invoice value plus other charges incurred thereon. Items intransitarevaluedatcostcomprisinginvoicevalueplusothercharges incurred make sale. in incurred be to necessarily cost less business of course ordinary the in price selling estimated the is value realisable Net direct costs.Provision ismadeforslow movingandobsoleteitemswherevernecessary. Stores, sparepartsandloosetools,except itemsintransit,are statedatmovingaveragecost.Costcomprisesinvoicevaluea materials andappropriate portionof production overheads. raw of cost include goods finished and process in work of Cost thereon. paid charges other and value invoice represents transit weighted Inventories arevaluedatthelowerofcostandnetrealisablevalue.Costrawmaterialworkinprocess isdeterminedus Deferred Cur the assetsarewrittendowntotheirrecoverableamount. amou exceedsrecoverable value estimated the carrying the where existsand indication such any If recoverable. be not may value valueofintangibleassetsarereviewedforimpairmentwheneventsorchangesincircumstances indicatethatthec The carrying Intangible assetsareamortisedusingthestraight-linemethodoveraperiodofthreeyearsorlicenseperiod,whicheverissho overhead cost. re and cost implementation asset, intangible the of purchasecost the include costs Direct assets. intangible as recognised are Costs thataredirectlyassociatedwithidentifiablesoftwareandhaveprobable economicbenefitsexceeding thecostbeyondone rent liabilities and their carrying amounts liabilities in and the their financial carrying statements. tax Deferred liability is generally recognised for all taxa average basis and cost of finished goods is determined using the First In First Out (FIFO) method. Cost for inventory-in- for Cost method. (FIFO) Out First In First the using determined is goods finished of cost and basis y differencesarisingbetweentaxbaseofassets . ble temporary mpany and e against e nd other orderto rter. arrying ing the any year, lated r the r ively nt, . or 73 ANNUAL REPORT 2020 74 BOLAN CASTINGS LIMITED .. Compensatedabsences 2.7.3 Definedbenefitplans 2.7.2 Definedcontributionplans 2.7.1 Employeebenefits 2.7 NOTES TOTHEFINANCIALSTATEMENTS both bytheCompanyandemployees,tofundatrateof10%perannumbasicsalary. made, are contributions monthly Equal employees. eligible all providentfor fund approvedan contributory operates Company The they aredue. whe expense benefit employee as recognised are contributions The periods. prior and current the in service employee to relating legal orconstructiveobligationtopayfurthercontributionsifthefunddoesnotholdsufficientassetsallemployees Past service costsarerecognisedimmediatelyinStatementof Profit orLoss. Past service or credittoOtherComprehensiveIncomeintheperiodswhichthey occur. Positionimmediately,Financial of char Statement a the with in recognised are remeasurements of result a as arising amount The UnfundedgratuityschemeforalloftheCompany'seligiblenon-executive employees.Provisions aremadeannuallytocover iii) Funded gratuityschemefor gradescaleupto all oftheCompany'seligibleexecutive employeesappointedundertheoldsalary ii) executive and employees non-executive all including employees eligible Company's the of all for scheme pension Funded i) The Companyoperatesthefollowingschemes: benefits willbepaidandthathavetermstomaturityapproximating tothetermsofrelatedemployeebenefitobligation. the which in currency the in denominated are These bonds. Government on rates market the or bonds corporate quality high of interest using flows cash future estimated the discounting by determined is obligation benefit defined the of value present The usingtheprojected unitcreditmethod. calculated annuallybyindependentactuary of thedefinedbenefitobligationatendreportingperiodlessfairvalueplanassets.Theob contribution plan.TheliabilityrecognisedintheStatementofFinancialPosition inrespectofdefinedbenefitplanisthepr on Defined benefitplansdefineanamountofpensionorgratuitythatemployeewillreceiveonafterretirement,usuallydep A definedcontributionplanisaunderwhichtheCompanypays fix earned. in whichtheleavei balance ofleaveintheperiod The Companyaccountsforcompensatedabsencesofitsemployeeson unavailed one or more factors, such as age, years of service and compensation. A defined benefit plan is a plan that is not a defined a not is that plan a is plan benefit defined A compensation. and service of years age, as such factors, more or 30, 2020,usingthe‘Projected UnitCreditMethod’. outasatJune obligations underthescheme,asperactuarialvaluation.Themostrecentvaluationofschemewascarried outasatJune30,2020,usingthe‘Projectedvaluation oftheschemewascarried UnitCreditMethod’. recent most The valuation. actuarial per as scheme, the under obligations cover to annually made are Provisions 2006. using the‘Projected UnitCreditMethod’. 2020, 30, June at as out carried was valuation actuarial latest The valuation. actuarial the of basis the on employees and gradescaleupto2006.Contributionsaremadetothefundbybothemployer employees appointedundertheoldsalary ed contributionsintoa separate entity. TheCompanyhasno the benefits esent value ligation is endent rates ge n s . Trade andotherpayables 2.9 .4FinancialInstruments-Initialrecognitionandsubsequentmeasurement 2.14 2.13 Dividendsandappropriation togeneralreserve 2.12 Revenuerecognition 2.11 2.10 Cashandcashequivalents 2.8 NOTES TOTHEFINANCIALSTATEMENTS Trade atcostwhichisthefairvalueofconsiderationtobepaidinfutureforgoodsand se andotherpayablesarecarried with originalmaturitiesofthreemonthsorlessandshort-termfinancing. cash and cash equivalents comprise cash in hand, balances with banks on savings current, and deposit accounts, short-term inves market practice. t with consistent is which days, 90 to up of term credit a with made are sales the as present deemed is financing of element No Return/interestonbankdepositsarerecognisedaccrualbasis. - DividendincomeisrecognisedwhentheCompany'srighttoreceivedividendestablished. - Salesarerecorded upontransferoftitletothecustomers,whichgenerallycoincides withphysicaldelivery. - is nounfulfilledobligationthatcouldaffectthecustomer'sacceptanceofproduct. Revenueisrecognisedasfollows: Revenue isrecognisedwhencontrol ofthegoodshastransfer the amount can be made. However, provisions are reviewed at each financial position date and adjusted to best reflect e current of r a as obligation constructive or legal a has PositionCompany Financial the of when Statement the Provisionsin recognised are intheStatementofFinancialPositionCash andcashequivalentsarecarried atcost.F A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity i equity or liability financial a and entity one of asset financial a to rise gives that contract any is instrument financial A transactions the of dates the at exchangeprevailing the rates using Rupee Pak into converted are transactions Foreigncurrency Foreign transactionsandtranslation currency arerecognisedinthefinancialstatementsperiodwhichtheseapp Dividends andappropriation togeneralreserves Provisions another entity position date.Exchange differences,ifany, arerecognisedintheStatementofProfit orLoss. monetar past events, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate o estimate reliable a and obligation the settle to required be will benefits economic of outflow an probablethat is it events, y assets and liabilities in foreign currencies are translated into Pak Rupee at the rates of exchange prevailing at the financi the exchangeat of prevailing rates the at Rupee Pak into translated are currencies foreign in liabilities and assets y . r ed, beingwhentheproductsare deliveredtothecustomer, andthere or thepurposesofStatementCashFlows, nstrument r stimate. vices. tments r oved. esult . All he of al f 75 ANNUAL REPORT 2020 76 BOLAN CASTINGS LIMITED .41Financialassets 2.14.1 NOTES TOTHEFINANCIALSTATEMENTS FVTPL areinitiallyrecorded atfair value andtransactioncostsareexpensed intheStatementofProfit orLoss.Realisedand with gainsandlossesarisingfrom changesinfairvaluerecognisedothercomprehensiveincome/(loss).Financialassetsca recognised inthestatementofprofit atFVTOCIareinitiallyandsubsequentlymeasuredfa orloss.Financialassetscarried ar losses impairment and any.income if Interest losses, impairment by reduced is cost amortised The method. interest effective using cost amortised at measured subsequently are and value fair at recognised initially are cost amortised at assets Financial instrument. the of provisions contractual the to party becomes Company the when time the at recognised are assets financial All c) Fair value through profit or loss (FVTPL) - Financial assets, that are not measured at amortised cost or at fair value througvalue fair at or cost amortised at measured not are that Fairassets, throughFinancial value - profit(FVTPL) loss or c) the both meets it if FVTOCI at measured is asset financial A - (FVTOCI) income comprehensive other through value Fair b) )Amortised cost - A financial asset is measured at amortised cost if it meets both the following conditions and is not designa a) model formanagingthefinancialassetandcontractualcashflowcharacteristicsofasset. income (FVTOCI)orfairvaluethr Financial assets are classified at initial recognition and subsequently measured at amortised cost, fair value through other co Initial recognition result from defaulteventsthatarepossible within12monthsafterthereportingdate. instrument. For allotherfinancialassets,expected creditlossesaremeasuredatanamountequalto12months’ECLsi.e.ECL finan a of life expected the over events default possible all from result that ECLs the are ECLs time Life receive). to expects Co the that flows cash and contract accordancethe in with entity the to due flows cash between difference the (i.e. shortfalls received andreceivableisrecognisedinStatementofProfit orLoss. On derecognition of a financial asset, in its entirety, the amount difference and between the the sum asset’s of carrying the c ownersh rewardsof and risks the all substantially transferred has Company the and transferred been have or expired have assets fr flows cash receive to rights the when derecognised are assets Financial arise. they which in period the in Loss Profitor of gains andlossesarisingfrom changesinthefairvalueoffinancialassetsandliabilitiesheldatFVTPLareincludedt credit The Companyrecogniseslifetimeexpected creditlossesfortradereceivablesthat donotconstituteafinancingtransaction.Ex Impairment offinancialasset losses other comprehensiveincomeoninitialrecognition,areclassifiedasfairvaluethrough profit orloss(FVTPL). the contractualtermsgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestthe - the financialassetisheldwithinabusiness modelwhoseobjectiveisachievedbybothcollectingcontractualcashflows - following conditionsandisnotdesignatedasaFVTPL; the contractualtermsgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestthe - itisheldwithinabusinessmodelwhoseobjectivetohold assetstocollectcontractualcashflows;and - as aFVTPL; principal amountoutstanding; and sellingthefinancialassets; principal amountoutstanding; (ECLs) are a probability weighted estimate of credit losses. Credit losses are measured as the present value of all cash all of value present the as measured are losses Credit losses. credit of estimate probabilityweighted a are (ECLs) ough pr ofit orloss(FVTPL).Themeasurementbasisisdeterminedby reference toboththebusiness he Statement mprehensive onsideration unrealised ir value, rried at rried om the om pected mpany s that the cial ted ip. h e .5Governmentgrants 2.15 .42Financialliabilities 2.14.2 2.16 Transaction costs 2.14.4 .43Offsetting 2.14.3 NOTES TOTHEFINANCIALSTATEMENTS Government grants relating to costs and are recognised deferred in the Statement of Profit to or Loss over the period necessary measurement. under these aremeasuredatamortisedcostusingtheeffectiveinterestratemethod.Afinancialliabilityisderecognisedwheno Financial liabilitiesarerecognisedinitiallyatfairvaluelessanydirectlyattributabletransactioncost.Subsequenttoini instru the provisionsof contractual the to party becomes Company the when time the at recognised are liabilities financial All these withthecoststhattheyareintendedtocompensate. Lease liability and right-of-use asset Lease liabilityandright-of-use The corresponding adjustment is made to the carrying amount of the right-of-use asset,orisrecorded amountoftheright-of-use inprofit orlossifthe adjustmentismadetothecarrying The corresponding to be payable under a residual value guarantee or its assessment of whether it will exercise a purchase, extension or terminati is a change in future payments arising from a change in fixed payments or an index or rate, Company's estimate of the amount ex when remeasured is It method. rate interest effective the using cost amortised at measured subsequently is liability lease The when theCompanyisreasonablycertaintoexercise theseoptions. any leaseincentivesreceivable.Thepurchase, extension andterminationoptionsareincorporatedindeterminationofleaseter leas the terminating exercisefor guarantees, penalties value purchaseof residual a payments under of option, lessee price the by payable be to expected amounts rate a or index an on based are that payment variable payments, fixed include payments Lease rate. discounted using the interest rate implicit in the lease, or if that rate cannot be readily determined, the Company's increment date commencement the at paid not are that payments lease the of value present the at measured initially is liability lease The use ofanidentifiedassetforaperiodtimeine contr to right the conveys it i.e. lease a contains, or is, contract a whether assesses Company the contract, a of inception At Transaction onafinancialinstrument'stransferor disposal arenotincludedinthefinancial costsexpected tobeincurred they areimmediatelyrecognisedinprofit orlossoninitialrecognition. valu fair frominitial deducted the or to added not are costs transaction FVTPL, at measured are that Forinstruments financial as partofinterestincomeusingtheeffectivemethod. instruments at not FVTPL, carried including at instruments FVTOCI. carried For debt instruments, the transaction costs are reco finan all to applies This recognised. originally amount the from deducted are costs such liabilities, financial For recognised. or When afinancialassetorliabilityisnotmeasuredatFVTPL,transactioncoststhataredirectlyattributabletothe settle theliabilitysimultaneously. the realize to or basis net a on settle to intention an is there also and transaction the set-off to enforceableright legally amounts isrecognisedinthestatementofprofit orloss. respective in difference liability,the new and a of recognition the and liability original the of de-recognition a as treated modific exchangeor an such modified, substantially are liability existing an of terms the or terms, different substantially on amount of right-of-use assetisreducedtozero.amount ofright-of-use A financial asset and financial liability is off-set and the net amount is reported in the statement of financial position when position financial of statement the in reported is amount net the and off-set is liability financial and asset financial A issue the are added to or deducted from the initial fair value. For financial assets, such costs are added to the amount originally amount the to added are costs such assets, financial For value. fair initial the from deducted or to added are liability is discharged or cancelled or expired. Where an existing financial liability is replaced by another from the same len xchange forconsideration. tial recognition, al borrowing acquisition on option. strument's there asset and asset bligation carrying carrying ation is ation m only

pected gnised e, less e, match e, but e, ol ment. there cial is a is der the , 77 ANNUAL REPORT 2020 78 BOLAN CASTINGS LIMITED 3. CRITICAL ACCOUNTINGESTIMATES CRITICAL ANDJUDGEMENTS 3. Functional andpresentation currency 2.17 .PROPERTY, ANDEQUIPMENT PLANT 4. NOTES TOTHEFINANCIALSTATEMENTS Capital work-in-progress -note4.4 Operating assets-note4.1 estimates. The preparation of financial statements in conformity with approved accounting standards requires the use of certain critical a oftheCompany.These financialstatementsarepresentedinPakRupeewhichisthefunctionalcurrency incurred. a these which in Loss or Profit of Statement the in period the in payments associated recognises and assets low-value of leases assetsandleaseliabilitiesforshorttermleasesthathaveaof12monthsor The Companydoesnotrecogniseright-of-use of-use assetisreducedbyimpairmentlosses,ifany, andadjustedforcertainremeasurementsoftheleaseliability. over theleasetermasthismethodmostcloselyreflectsexpected patternofconsumptionfutureeconomicbenefits.Ther No criticaljudgementhasbeenusedinapplyingaccountingpolicies. financial statements. the in disclosed amounts the on impact material a have not would estimates of outcome in change the that believes Management of futureeventsthatarebelievedtobereasonableunderthecircumstances. expectatincluding factors, experienceother historical and on based are and evaluated continually are judgements and Estimates ii. Property, plantandequipment i. statements areasfollows: areas involvingahigherdegreeofjudgementorcomplexity, orareaswhereassumptions andestimatesaresignificanttothefin assetisdepreciatedonastraigh the underlyingasset(ifany)ortorestoresiteonwhich it islocated.Theright-of-use the commencementdateandanyincentivereceived,plusinitialdirectcostsestimateoftodismantle,removeorr asset The is right-of-use initially measured based on the initial amount of the lease liability adjusted for any payments made i.Definedbenefitplans iii. is determined. Deferred taxes aremeasuredatthetaxratesthatexpectedis determined.Deferred toapplytheperiodwhenassetisrealised outcome final such which in period provisionthe tax in income the impact recorded,will initially differences were such that decisions ofappellateauthoritiesoncertaincasesissuedinthepast.Wherefinaloutcomeisdifferentfr the Company,and the laws by tax taxespayable income income for estimates current the considers making management In F depreciation. of calculation the in used life useful and depreciation of rate the of appropriateness reviews Company The these obligationsandtheunderlyingassumptionsaredisclosedinnote9respectively. incometaxes anddeferred Current assumptions. various using basis actuarial on determined are that factors of number a on depend obligations these of value present The of financialpositiondate. or the liability is settled, based on the tax rates (and tax laws) that have been enacted or substantively enacted at the state urther whereapplicable,anestimateofrecoverableamountassetsismadeforpossibleimpairmentonannualbasis. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. The policies. accounting Company's exercisethe to processapplying management the of requires in also judgement its Any changes in these assumptions will impact the carrying amount of these obligations. The present value of value present The obligations. these of amount carrying the impact will assumptions these in changes Any 228,900,903 219,240,502 9,660,401 Rupees 2020 8,160,401 259,215,767 251,055,366 om theamounts Rupees t linemethod 2019 at or before ccounting estore ancial less, ment ight- ions re . The detailsofoperatingassetssoldareasfollows: 4.2 Operatingassets 4.1 NOTES TOTHEFINANCIALSTATEMENTS Year endedJune30,2019 AtJune30,2020 Netbookvalue Ntbo au ,7,5 88859 144414 4132 65940 8032 2,1,3 251,055,366 27,112,735 890,392 766,924,041 44,938,100 5,159,214 6,589,450 481,342 13,055,366 1,535,079 194,434,134 612,477,080 18,868,559 87,080,448 2,678,754 2,678,754 Netbookvalue A Cost AtJune30,2019 Depreciation rateperannum% Dsoasa e okvle-nt . 23961 - (,4) 42053 (6,588,287) (4,270,563) - 251,055,366 27,112,735 (28,083,154) (8,043) (6,949,937) 890,392 (385,391) 6,589,450 - (654,414) 481,342 (49,786) 194,434,134 18,868,559 (2,309,681) (17,968,234) 2,678,754 (2,075,392) - - - Closingnetbookvalue Depreciationcharge -note4.3 Disposalsatnetbookvalue-note4.2 Dsoasa e okvle-nt . 54429 (5,464,229) (5,464,229) - - - (27,255,224) (4,942,091) (269,787) (648,485) - 251,055,366 (44,808) 27,112,735 890,392 (19,463,193) - (1,886,860) 6,589,450 - - 481,342 194,434,134 18,868,559 - 2,678,754 Closingnetbookvalue Depreciationcharge -note4.3 Disposalsatnetbookvalue-note4.2 Additions (atcost) Openingnetbookvalue 09 88609 1,6,0 658276,588,287 6,588,287 12,267,802 18,856,089 7,957,941 5,464,229 6,674,571 12,138,800 Adamjee Insurance CompanyLimited- Mr. KhawajaQasim -Exemployee Insuranceclaim Mr. MuhammadMuneer -Exemployee CompanyPolicy Mr. MumhammadNiaz -Exemployee CompanyPolicy Mr. Tariq Mahmood -Exemployee CompanyPolicy 1,265,000 CompanyPolicy 780,386 707,777 2019 696,773 780,386 542,223 800,000 696,773 756,614 2020 1,250,000 965,200 800,000 840,227 1,537,000 Motor vehicles 965,200 450,000 1,537,000 304,800 1,250,000 valueoflessthanRs.500,000each 1,270,000 Aggregate ofassetshavingbook Motor vehicle Motor vehicle Motor vehicle Motor vehicle Motor vehicle 755,689,830 33,538,300 5,159,214 13,055,366 - 1,535,079 612,642,669 87,080,448 2,678,754 2,678,754 - Additions /transfers(atcost) Openingnetbookvalue Accumulated depreciation Cost Year endedJune30,2020 Description cmltddpeito - ccumulated depreciation 68400 28384 39016 4,507,359 3,950,136 2,893,864 6,844,000 ------Rupees 5,294,800 Cost 26874 1,8,9 7,3,3 3,3 ,4,6 2,0 74545 219,240,502 17,445,415 620,605 5,940,965 436,534 175,136,530 16,981,699 2,678,754 26874 1,8,9 7,3,3 3,3 ,4,6 2,0 74545 219,240,502 17,445,415 620,605 5,940,965 436,534 175,136,530 16,981,699 2,678,754 ------Rupees------Freehold land Accumulated - 01 01 020 30 10 10 10 10 - depreciation 37077 15403 3,450,582 1,514,093 3,780,707 freehold land Building on (00879 (3,0,3) 10855 (,1,0) 45869 (60285 (536,449,328) (16,092,885) (4,538,609) (7,114,401) (1,098,545) (437,506,139) (70,098,749) (82189 (1,4,4) 10377 (,6,1) 42882 (78535 (515,868,675) (17,825,365) (4,268,822) (6,465,916) (1,053,737) (418,042,946) (68,211,889) 2,8,7 5,6,1 3,2 ,9,5 ,7,8 58165 222,482,850 35,851,635 1,275,783 6,297,457 531,128 155,360,019 20,488,074 4587 5,5,3 5,5 ,8,0 63,243,957 2,481,600 - 954,450 - 59,352,030 455,877 Book value - 1559 - - - 7900 904,589 739,000 - - - 165,589 - machinery Plant and proceeds Sale Furniture and fittings Mode of disposal equipments Office optr Motor Computers Gulberg 3,Lahore Eden Center, GhalibRoad, Branch 31,C-1, Particulars of Purchaser Vehicles ------Total 79 ANNUAL REPORT 2020 80 BOLAN CASTINGS LIMITED 5.1 LONG-TERM INVESTMENT 5. Depreciationfortheyearhasbeenallocatedasfollows: 4.3 5.2 4.4.1 Capitalwork-in-progress 4.4 . Particularsofimmovableproperty (i.e.landandbuilding)inthenameofCompanyareasfollows: 4.5 4.4.1.1 NOTES TOTHEFINANCIALSTATEMENTS Cost ofsales-note25 This representsequityinvestmentinBaluchistanWheelsLimitedrepresenting 287,500(2019:287,500)quotedor Balance atbeginningoftheyear Income (FVTOCI) Fair Value Through OtherComprehensive Balance atendoftheyear A Distribution cost-note26 There arenoinvestmentsinassociated companiesorundertakings. -transfer Unrealised lossonrevaluation Opening balance Closing balance Transfers duringtheyear A - Softwareunderdevelopment This representsadvancegivenduringtheyearagainstpurchase ofmotorvehicles. - Motorvehiclesnote4.4.1.1 Rs. 10/-eachwhichcomprise2.16%(2019:2.16%)ofthetotalordinar As atJune30,capitalwork-in-progress represents: dministrative e dditions duringtheyear anRDHgwy u hwi auatrn aiiy2.322.93 22.93 Manufacturingfacility Main RCDHighway, HubChowki, Balochistan,Pakistan DistrictL Locations red toequity asbella xpenses -note27 immovable Usage of pr operty y shares. T (in acres) otal Area 25,696,813 17,459,875 17,580,625 27,255,224 9,660,401 1,500,000 8,160,401 1,168,808 9,660,401 8,160,401 1,500,000 (120,750) Rupees Rupees 389,603 2020 2020 - (in acres) Covered Area dinary sharesof dinary (13,529,750) (44,528,237) 26,060,173 17,580,625 31,110,375 42,490,045 10,198,593 28,083,154 8,160,401 1,517,236 8,160,401 8,160,401 Rupees Rupees 505,745 2019 2019 - o h er ,7,9 6,371,796 6,371,796 - (6,178,636) (6,178,636) - - - - 87,164,281 - - (405,018) - 15,165,314 1,039,241 6,984,179 - 92,425,865 - Balance asatJune30,2020 921,292 fortheyear comprehensiveincome Credit toother orlossfortheyear (7,222,117) Credit toprofit 2,293,740 Balance asatJune30,2019 (24,848,251) fortheyear comprehensiveincome (Charge) /credittoother orlossfortheyear (Charge) /credittoprofit Balance asatJuly01,2018 DEFERREDTAX ASSET 7. LONG-TERM LOANS 6. 7.1 6.1 6.2 NOTES TOTHEFINANCIALSTATEMENTS are securedagainstretirementbenefitsandrecoverableinmonthlyinstallmentsoveraperiodoffiftymonths. - acceleratedtaxdepreciationallowance Credit balancearisinginrespectof: - Employeesnotes6.1&6.2 Considered goodandsecured - pr Debit balancearisinginrespectof: - Cur - provision foremployeebenefits Balance atbeginningoftheyear Repayments Disbursements Analysis of change in deferred tax Analysis ofchangeindeferred amountofloanstoemployees: Reconciliation ofcarrying - taxloss These represent interest free loans given to employees for the purchase of motorcycles in accordance with the Company's policy. Balance atendoftheyear ovision forcompensatedabsences rent portionofloanstoemployees depreciation (01793 32763 9,4,6 ,9,9 53844 95,524,645 15,358,474 8,991,699 98,044,762 80,580,627 8,986,678 3,247,663 8,023,420 (30,117,953) 92,425,865 3,215,032 (32,070,368) Accelerated ------Rupees------tax 19245 3,3 ,1,9 6,7 8,572,222 - 968,279 5,618,897 32,631 1,952,415 Provision for compensated absences a osUnapproved Tax Loss (non-executive) gratuity 125,642,598 fund (30,117,953) Employee Benefits 95,524,645 98,044,762 24,350,173 1,514,000 3,247,663 1,000,000 1,502,000 1,514,000 (685,000) (988,000) Rupees Rupees 829,000 2020 2020 Effect of acturial gain or loss 112,650,995 (32,070,368) 80,580,627 92,425,865 17,010,098 (1,037,745) 1,502,000 3,215,032 1,000,000 1,539,745 1,502,000 (666,000) Rupees Rupees 836,000 2019 2019 Total

These 81 ANNUAL REPORT 2020 82 BOLAN CASTINGS LIMITED 9.3 9.2 7.3 7.2 . Statementoffinancialpositionreconciliation 9.4 9.1 EMPLOYEE BENEFITS 9. LONG-TERM DEPOSITS 8. NOTES TOTHEFINANCIALSTATEMENTS the plansasperactuarialvaluationarefollows: Detai ProjectedMethod. the Credit using Unit out carried were 2020 30, June at as plans the of valuations actuarial latest The employees oftheCompany. are trustees all and trustees the appoints Trustees.Company of The Board the with rests schedules, contribution and decisions Tax Income Trust2017, Act,include Companies mainly 1882, which Act, regulations local by governed are trusts in held assets Plan outasatJune30,2020. yearandthelatestactuarialvaluationwascarried outevery plans iscarried t of valuation Actuarialnon-executive employees. eligible all for scheme non-executives'gratuity benefit defined unfunded and scheme overthelasttwofinancialyears.TheCompanyhasconcluded to thelossesincurred relat Company the of losses tax carried-forward to relates which million 98.04 Rs. of amount an include assets tax deferred The taxassethasbeenrecognisedusingtheexpected applicablerateof29%. Deferred atJune30-note9.5 benefitobligation Present valueofdefined atJune30-note9.6 F (Deficit) /surplus As statedinnote2.7,theCompanyoperatesthreedefinedbenefitplans(ThePlans)namelyappr anymark-up. These includeRs.3.57million(2019:3.02million)depositsmadetoutilitycompanies.donotcarry recognised ontaxlossesandminimumamountstoRs.105.79million. asset tax Deferred date. expiry no have and indefinitely forward carried be can which million 16.89 Rs. to amounting asset tax the estimatedfuturetaxableincomebasedonapproved businessplansandbudgetsoftheCompany. Thelossesincludedeferre air valueofplanassets Rules, 2002 and Rules under the Trust deeds of the Plans. Responsibility for governance of the Plans, including investment including Plans, the of governance for Responsibility Plans. the Trustof the deeds under Rules and 2002 Rules, for all eligible employees, approved funded defined benefit executives' gratuity scheme for all eligible executiveemployees eligible all for scheme executives'gratuity benefit defined funded approved employees, eligible all for (8,2,6) 2,7,6)(29,839,850) (25,977,765) (187,626,665)

(01891 2,0,0 (29,839,850) 25,301,704 (60,118,961) 2,0,0 12949 - 51,279,469 127,507,704 ------Rupees P ension uddU-uddUn-Funded Un-Funded Funded Executives' Gratuity 2020 Executives' Gratuity Non- (3,3,5) 4,9,4)(32,194,949) (45,690,145) (131,839,352) 144628 5,2,7 - 57,523,076 114,416,258 that the deferred assetswillberecoverableusing that thedeferred (74304 1,3,3 (32,194,949) 11,832,931 (17,423,094) Pension Funded oved fundeddefinedbenefitpension Executives' Gratuity 2019 Executives' Gratuity Non- hese ls of ls not ing d . RemeasurementrecognisedinOtherComprehensiveIncome 9.8 MovementintheFair valueofplanassets 9.6 . MovementinthePresentvalueofdefinedbenefitobligation 9.5 . ExpenserecognisedinProfit orLoss 9.7 NOTES TOTHEFINANCIALSTATEMENTS Remeasurements xeinelse gis Experience losses/(gains) Balance asatJuly1 ofplanassets Remeasurement offairvalue Past service cost Past service Pr Expense recognisedin Balances asatJuly1 Cur Benefits paid Remeasurement Employee Contributions Balance asatJune30 e neetcs icm)Net interestcost/(income) Interest cost intotheplan Contributions paid Benefits paidbytheplan Past ser Current service costs service Current Remeasurement Interest income Balance asatJune30 Employee Contributions ofit orLoss rent ser vice costs vice costs 144628 5,2,7 - 57,523,076 114,416,258 176665 2,7,6 29,839,850 25,977,765 187,626,665 118932 4,9,4 32,194,949 45,690,145 131,839,352 175774 5,7,6 - 51,279,469 127,507,704 (19684 (89280 (2,641,096) (18,962,880) (11,936,834) (19684 (89280 - (18,962,880) (11,936,834) ------Rupees 4,5,1 1,9,1)(5,693,992) (12,993,312) 40,659,014 1,3,0 ,4,2 4,399,602 5,142,027 17,936,608 4,3,2 76450 (5,693,992) (7,664,570) 47,137,428 1,5,3 ,8,5 - 6,882,155 15,659,739 (,7,1) 53872 - (5,328,742) (6,478,414) 71748 (,6,7)(5,693,992) (7,664,570) 47,137,428 4,030,044 17315 17303 1,580,387 1,773,043 1,753,175 19311 5836 - 508,376 1,993,191 64844 53872 - 5,328,742 6,478,414 17315 17303 1,580,387 1,773,043 1,753,175 ,7,6 17018 4,399,602 (1,740,128) 2,276,869 Pension 8696 - - - 896,936 8696 - - - 896,936 - - uddU-uddUn-Funded Un-Funded Funded Executives' Gratuity 2020 3,1 5,979,989 32,915 ------Executives' Gratuity Non- ,4,6 0,7 - 206,975 3,845,269 1,6,7 38317 - 63,883,197 114,261,275 ,9,2 - - 1,095,724 ,3,0 8,5 - 784,055 2,435,101 00294 52694 - - 5,236,934 10,012,944 (12,174,135) (9,543,517) 38529 (0,7)- (206,975) (3,845,269) ,9,2 - - 1,095,724 - - 5,287,495 - - 144628 5,2,7 - 57,523,076 114,416,258 118932 4,9,4 32,194,949 45,690,145 131,839,352 158998 4,7,9 26,228,631 48,174,899 165,839,978 (85587 43512 4,527,984 4,355,122 (38,555,817) 4,527,984 4,148,147 (42,401,086) (24106 41817 4,527,984 4,148,147 (42,401,086) 1,9,4 ,7,1 2,034,585 3,776,718 14,496,140 (,4,1) 1,7,3)(7,244,261) (12,174,135) (9,543,517) 68539 3430 8,682,595 304,300 6,835,309 23213 17456 1,360,515 1,764,516 2,352,113 44316 (,6,1)2,034,585 (1,460,216) 4,483,196 23213 17456 1,360,515 1,764,516 2,352,113 Pension Funded - - 5,287,495 - - Executives' Gratuity 2019 Executives' Gratuity Non- 83 ANNUAL REPORT 2020 84 BOLAN CASTINGS LIMITED

.1Actuarial assumptions 9.11 9.13 9.12 (asset) asatJuly1 Netrecognisedliability/(asset) 9.9 Pr paidduringtheyear .0Planassetscomprisesoffollowing: 9.10 9.14 NOTES TOTHEFINANCIALSTATEMENTS Remeasurements recognised Discount rateatJune30 F Future pensionincreases Net recognisedliability/ plan. W plan. framework thathasbeendevelopedtoachievelong-terminvestments areinlinewiththeobligationsunderRetirementb In caseofthefundedplans,Companyensuresthatinvestment positions aremanagedwithinanasset-liabilitymatching( Mortality wasassumedtobeSLIC(2001-2005)table. Expense recognisedin investment policy. Expectedyieldsonfixed interestinvestments are basedongross redemptionyields asatthebalancesheetd Contribution made/benefits totheF (asset)asatJune30 Recognised liability/ Debt instruments Company believesthatgovernmentbondsofferthebestreturnsover longtermwithanacceptablelevelofrisk. The bonds. government of consists 2019 and 2020 in assets of portion large A assets. of level overall the on impact material a would investment single any of failure the that such diversified, well are Investments risk. its manage to derivatives use not does Company The periods. fromprevious risks its manage to processesused the changed not has Company The obligations. plan how the duration and the expected yield of the investments are matching the expected cash outflows arising from the retirement moni actively Company The due. fall they as payments benefit the match that maturities with securities interest fixed long-term The expected returnonplanassetswasdeterminedby considering thee noe Income inOtherComprehensive Equity andmutualfunds Cash atBank T uture salar otal asatJune30 ofit orLoss ithin this framework, the Company’s ALM objective is to match assets to the retirement benefit obligations by investing in investing by obligations benefit retirement the to assets match to is objective ALM Company’s the framework, this ithin und y increases 127,507,704 180090 5,3,4 - 50,037,649 118,010,990 ------Rupees 17,423,094 6,1,6 2,0,0)29,839,850 (25,301,704) 60,118,961 (,9,9) 5836 (2,641,096) (508,376) (1,993,191) 40,659,014 40004 3,1 5,979,989 32,915 4,030,044 27660 - - - - 1,241,820 6,720,034 2,776,680 Pension .0 .0 8.50% 8.50% 8.50% .0 - 8.50% - 8.50% 0.00% 8.50% uddU-uddUn-Funded Un-Funded Funded (18291 32,194,949 (11,832,931) (29332 (5,693,992) (12,993,312) 5,7,6 - 51,279,469 Executives' Gratuity 2020 Executives' Gratuity Non- xpected returnsavailableontheassetsunderlyingcur 0,3,8 63325 - 56,383,285 108,135,087 ,5,0 ,3,9 - 1,139,791 4,555,002 17619 - - - 1,726,169 144628 5,2,7 - 57,523,076 114,416,258 (85587 43512 4,527,984 4,355,122 (38,555,817) 5,7,0 1,0,9)26,228,631 (15,708,298) 51,578,703 1,2,9 1,3,3)32,194,949 (11,832,931) 17,423,094 (,3,0) 7405 (7,244,261) (784,055) (2,435,101) 68539 3430 8,682,595 304,300 6,835,309 Pension 42%1.5 14.25% 14.25% 14.25% 42%1.5 14.25% 14.25% 14.25% .0 - - 0.00% Funded Executives' Gratuity 2019 Executives' Gratuity Non- not have not benefit ate. ALM) enefit rent tors .5Sensitivityanalysisforactuarialassumptions 9.15 NOTES TOTHEFINANCIALSTATEMENTS uueslr nrae .0 61038 (5,599,237) 6,150,358 1.00% is unlikely tooccur, When calculating thesensitivity ofthedefined andchangesinsomeoftheassumptions maybecorrelated. The abovesensitivityanalysesarebasedonachangeinanassumptionwhileholdingallotherassumptionsconstant.Inpractice There isnosignificantchangeintheobligationiflifeexpectancy increasesby1year. increases Future salary Discount rate at June 30 1.00% (17,912,228) 20, (17,912,228) 1.00% Discount rateatJune30 The methodsandtypesofassumptionsusedinpreparingthesensitivityanalysisdidnotchangecomparedtopreviousperiod. the statementoffinancialposition. projected unitcreditmethodattheendofreportingperiod)hasbeenappliedaswhencalculatingliabilitiesrecognise wi calculated obligation benefit defined the of value (present method same the assumptions, actuarial significant to obligation The sensitivityofthedefinedbenefitobligationtochangesinweightedprincipalassumptionsis: advice.Expenseofthedefinedbenefitplaniscalculatedbyactuary.funds according totheactuary's conductsseparatevaluationsforcalculatingcontributionratesandtheCompanycontributes tothepensionandgrat The actuary Rs. 6.68millionandNil,respectively. b expectedto is 2021 30, June ending year the for executives'fund and gratuity fund pension the to contribution Company's The assumption Change in

assumption nraei Decreasein Increase in uesRupees Rupees

benefitobligation Impact ondefined assumption 968,116 d within benefit th the th , this uity e 85 ANNUAL REPORT 2020 86 BOLAN CASTINGS LIMITED 9.19 .6Historicalinformationforthefiveyearsisasfollows: 9.16 .8Theweightedaveragedurationoftheplansareasfollows: 9.18 9.17 NOTES TOTHEFINANCIALSTATEMENTS Surplus /(Deficit) assetsgain/(loss) Experience adjustmentsonplan obligations-(gain)/loss Experience adjustmentsonplan assets-gain/(loss) Experience adjustmentsonplan obligations-(gain)/loss Experience adjustmentsonplan Fair valueofplanassets (60,118,961) Executives' gratuityfund Deficit Fair valueofplanassets benefitobligation Present valueofthedefined Non-Executives' gratuity fund Pension fund obligations-(gain)/loss Experience adjustmentsonplan benefitobligation Present valueofthedefined benefitobligation Present valueofthedefined beginning oftheperiod,forreturnsoverentireliferelatedobligation. the at fund, the of portfolio asset the upon depends and marketexpectations the on based is assets plan on return expected The Figures in this note are based on the latest actuarial valuation carried outasat June30,2020. Figures inthisnotearebasedonthe latestactuarialvaluationcarried Non-e Ex Pension fund ctvs rtiyfn 7.99 ecutives' gratuityfund euie'gaut 7.99 xecutives' gratuity (187,626,665) ------Rupees 127,507,704 (25,977,765) (29,839,850) 47,137,428 51,279,469 (7,664,570) (5,693,992) 25,301,704 5,328,742 6,478,414 2020 (24106 (07656 (,9,6)31,405,711 (1,797,764) (10,756,516) (42,401,086) (3,3,5) 158998 (6,6,8)(159,537,041) (167,462,285) (165,839,978) (131,839,352) 144628 142125 143848 112,475,832 114,368,468 114,261,275 114,416,258 (74304 (15873 (30387 (47,061,209) (53,093,817) (51,578,703) (17,423,094) (56015 (81489 (60208 (53,571,304) (56,002,038) (48,174,899) (45,690,145) (21499 (62861 (81766 (23,155,700) (28,117,696) (26,228,631) (32,194,949) 1,3,3 57828 1,7,1 (9,736,973) 17,272,218 15,708,298 11,832,931 5,2,7 38317 7,7,5 43,834,331 73,274,256 63,883,197 57,523,076 (,4,6) 47818 (,9,5)(1,797,404) (4,198,158) (4,718,178) (3,845,269) 41817 17620 (8,2)1,498,850 (489,624) 1,776,270 4,148,147 45794 (,0,8) ,1,4 (889,487) 3,719,840 (1,708,083) 4,527,984 (0,7) 3137 2,6,7 (13,955,828) 28,169,070 (331,367) (206,975) 2019 2018 No.ofyears 2017 7.99 2016 12.1 1 INVENTORIES 11. 11.2 11.1 2 TRADERECEIVABLES 12. STORES,SPARE PARTS ANDLOOSETOOLS 10. NOTES TOTHEFINANCIALSTATEMENTS Work inpr - MillatTractors Limited These representamountsduefr 2019:Rs.23.96million) materials(includingintransitRs.45.41million; Raw - MillatEquipmentsLimited - othersnote12.3 Finished goods include inventories which have been written-down to net realisable value by Rs. 7.48 million (2019: Rs. 15.16 mi Inventories includeRs.48.25million(2019:88.16million)heldwiththird parties. - relatedpartiesnotes12.1&12.2 Due from: Considered good 2019:Rs.0.01million) Stores (includingintransitRs.18.2million; Hard coke, dieselandkerosene oil 2019:Rs.3.19million) Loose tools(includingintransitNil; 2019:Rs.0.51million) Spare parts(includingintransitRs.0.23million; Finished goods-note11.2 ocess om followingrelatedparties: 123,843,606 172,157,921 90,809,516 17,955,554 28,228,101 10,272,547 13,313,343 71,380,507 36,787,605 11,702,349 17,955,554 66,384,958 14,963,447 6,253,205 2,362,151 Rupees Rupees 2020 2020 153,843,917 113,386,566 130,691,149 126,274,513 111,883,479 113,386,566 307,234,973 127,604,613 17,304,583 13,382,953 76,869,646 31,177,820 25,786,443 1,503,087 4,844,094 Rupees Rupees 2019 2019 llion). 87 ANNUAL REPORT 2020 88 BOLAN CASTINGS LIMITED 3 LOANSANDADVANCES 13. 12.3 12.2 14.1 TRADEDEPOSITSANDSHORT-TERM PREPAYMENTS 14. 13.2 13.1 NOTES TOTHEFINANCIALSTATEMENTS Current portionofloanstoemployees-note6 Current Considered good Not yetdue As atJune30,2020,theageanalysisofthesetradereceivablesisasfollows: Rs. 297.96million). The maximumaggregateamountduefrom therelatedpartiesatend ofanymonthduringtheyearwasRs.239.24million(2019: -3to6months -Upto3months Past due -3to6months -Upto3months Past due -morethan12months -6to9months Not yetdue As atJune30,2020,theageanalysisofthesetradereceivablesisasfollows: These trade deposits and prepayments are mainly against subscription fee and security deposits. They do not carry anymark-up. These tradedepositsandprepayments aremainlyagainstsubscriptionfeeandsecuritydeposits.Theydo notcarry Security deposits anymarkup. These advancesdonotcarry Prepayments - suppliers - employeesnotes13.1&13.2 Advances to: Company alsopr The advancestoemployeesaregivenmeetbusinessexpenses Further, andaresettledaswhen the expenses areincurred. t ovides advanceforpersonalmedicale xpenses toitsemployees. 10,272,547 17,955,554 16,170,541 1,886,913 7,840,236 1,785,013 2,432,311 1,785,013 7,641,869 5,878,914 1,762,955 8,326,869 Rupees Rupees 327,904 126,000 722,221 458,721 263,500 685,000 2020 2020 91,494 -

905,064 113,386,566 111,520,499 10,393,837 17,304,583 11,757,274 10,635,343 11,301,343 5,547,309 1,363,437 1,866,067 9,772,456 961,003 310,037 263,500 862,887 666,000 Rupees Rupees 2019 2019 46,537 - - he 17.1. RESERVES 17. 16.1 SHARECAPITAL 16. CASHANDBANKBALANCES 15. bnssae bonusshares Ordinary sharesofRs.10each Ordinary Issued,subscribedandpaidupcapital 15.1 15.3 15.2 consideration paidincash NOTES TOTHEFINANCIALSTATEMENTS Authorised share capital - current accounts-note15.1 - current bankson: With This representsunrealisedgainon investment insharesofBaluchistanWheelsLimited. General Revenue reserves Share premium Capital reserves sharesofRs.10eachwereheldbyMillatTractorsAs atJune30,2020,5.67million(2019:million)ordinary Limited(hol A

These includecur Company) alongwithdirectors,representing49.33%(2019:49.33%)oftotalissued,subscribedandpaidupcapital. Cash inhand - termdepositreceiptsnotes15.2and15.3 - savingsaccountsnote15.2 FVTOCI -note17.1 Gain onrevaluationofInvestmentat These areunderlienwithabankforissuanceofguaranteeinfavourSuiSouthernGasCompanyLimited. per annum. markupattherateof6.5%to7.3%(2019:4.5%10.25%) andcarry These accountsaremaintainedundermarkuparrangement ccumulated loss 11,472,529 15,000,000 6,740,875 4,731,654 002019 2020 002019 2020 -----Number ofshares------Number ofshares----- rent accounthavingbalanceofRs.0.97million(2019:0.96million)maintainedwithIslamicBanks. 4,731,654Sharesallottedas 6,740,875Sharesallottedfor 11,472,529 15,000,000 Ordinary sharesofRs.10each Ordinary (468,948,295) 150,000,000 424,500,000 114,725,290 (20,332,740) (44,448,295) 12,155,680 67,408,750 11,959,875 47,316,540 Rupees 6,408,170 6,353,474 3,856,200 1,781,702 Rupees Rupees 2020 2020 2020 715,572 Rupees 2020 54,696 150,000,000 (181,660,057) 267,076,248 424,500,000 114,725,290 242,839,943 12,155,680 47,316,540 67,408,750 12,821,986 12,646,423 12,080,625 Rupees 3,856,200 4,673,063 4,117,160 Rupees Rupees 2019 2019 2019 175,563 Rupees 2019 ding 89 ANNUAL REPORT 2020 90 BOLAN CASTINGS LIMITED 18.1 20.1 19.1 8 LONG-TERM DEPOSITS 18. 0 TRADEANDOTHERPAYABLES 20. 19.2 LONG-TERM LOAN 19. NOTES TOTHEFINANCIALSTATEMENTS These These includeRs.0.02million(2019:Nil)duetoParentCompanyand Rs.0.02million(2019:Nil)duetoMillatEquipmentLimit Work Compensated absences-note20.2 Less: Current portionshownunder Less: Current A This represents loan obtained under the State Bank of Pakistan's Refinance Scheme 'Payment of Wages and Salaries to the Workersthe to Salaries Wagesand of 'Payment Scheme Refinance Pakistan's of Bank State the under obtained loan represents This Deposits from employees Others Income taxdeductedatsource Accrued liabilities-note20.5 Security deposits-note20.4 Creditors -note20.1 - 20 IAS under grant government as for accounted been has which interest below-market of benefit of value the represents This cur grant-note19.2 Deferred Pr Opening Less: Current portion Less: Current Accrued mark-up value ofmotorvehiclesandfiveyearsagainstbookcyclesprovided tothemasperCompanypolicy (related party). and starting from January 2021. The loan is secured by way of hypothecation of plant and machinery and current assetsoftheCompan andcurrent 2021.Theloanissecuredbywayofhypothecationplantandmachinery starting from January Government grants. dvances fr oceeds duringtheyear rent liabilities ers' Profit ParticipationFund -note20.3 Employees represent interest free deposits received from employees. The amount is adjustable within a period of six years against book against years six of period a within adjustable is amount The employees. from received deposits free interest represent om customers of Business Concerns'. mark-up It at carries the rate of 1% per annum and is repayable in 8 equal quarterly installments, 219,147,937 154,973,453 11,198,838 14,607,723 26,244,547 17,888,910 22,637,927 (2,693,712) (5,661,925) 5,231,810 7,119,740 1,630,037 6,751,782 6,038,264 (806,454) Rupees 225,063 Rupees Rupees 2020 2020 2020 3,374 - . 133,449,279 11,086,319 80,380,979 18,557,456 10,820,757 5,616,202 8,726,122 2,762,952 6,027,687 (411,485) 908,996 202,324 Rupees Rupees Rupees 2019 2019 2019 3,374 - - - - - ed y. DIVIDEND UNCLAIMED 21. 20.4 02Compensatedabsences 20.2 20.5 2 SHORT-TERM FINANCING 22. 21.1 20.3 NOTES TOTHEFINANCIALSTATEMENTS Under Musawamahfacility arrangement -note22.2 arrangement Balance atbeginningoftheyear These represent deposits obtained from customers which are kept in a separate bank account in compliance with section 217 of th of 217 section with compliance in account bank separate kepta are in which fromcustomers obtained deposits represent These Balance atendoftheyear Amount paidtotheTrustees ofthefund Balance atbeginningoftheyear These Under mark-upar Short-term runningfinancefacilities Secured Balance atendoftheyear Claims receivedandsettled Dividend declaredduringtheyear The Company is in the process of depositing the amount to a separate profit bearing account maintained with a scheduled bank as bank scheduled a with maintained account bearing profit separate a to amount the depositing of process the in is Company The Workers' Profit ParticipationFund Balance atbeginningoftheyear Balance atendoftheyear Payments madeduringtheyear Charge fortheyear Under IstisnacumW Under Musharakafacility Interest char Companies A required bytheamendmentmadeinCompaniesA by ParentCompanyandcr include Rs. 4.59 million (2019: Rs. 5.03 million) due to Parent Company in respect of remuneration of Chief Executive paid Executive Chief of remuneration of respect in Company Parent to due million) 5.03 Rs. (2019: million 4.59 Rs. include ged duringtheyear ct, 2017. rangement -note22.1 akala oss char ged totheCompany. ct, 2017thr ough Companies(Amendment)Ordinance, 2020. 493,845,173 418,845,173 75,000,000 11,086,319 11,198,838 (2,943,692) 3,524,426 3,056,211 3,487,166 Rupees Rupees Rupees (37,260) 2020 2020 2020 3,374 3,374 - - - - - 150,000,000 607,845,445 364,751,743 (10,379,104) (28,255,825) 21,335,658 28,681,323 11,086,319 71,758,044 (1,619,754) 3,098,928 3,531,113 9,174,960 3,524,426 9,899,694 482,784 Rupees Rupees Rupees 2019 2019 2019 3,374 e 91 ANNUAL REPORT 2020 92 BOLAN CASTINGS LIMITED 22.1 23.1.1 CONTINGENCIES 23.1 CONTINGENCIESANDCOMMITMENTS 23. 22.3 23.2.1 COMMITMENTS 23.2 23.1.2 22.2 NOTES TOTHEFINANCIALSTATEMENTS Rs. 200 million), Habib Bank Limited amounting to Rs. 100 million (2019: Rs. 100 million) and Faysal Bank Faysal and million) 100 Rs. (2019: million 100 Rs. to amounting Limited Bank Habib million), 200 Rs. These representrunningfinancefacilitiesobtainedfrom BankAlfalahLimitedamountingtoRs.200million(2019: for are secured by way of hypothecation of plant and machinery and current assetsoftheCompany. andcurrent are securedbywayofhypothecationplantandmachinery arrangements The annum. per 1.25%) to 0.5% plus KIBOR month 1 (2019: 1.60% to 1% plus KIBOR month 1 Limited amounting to Rs. 100 million (2019: Rs. 100 million). The mark-up rates on these facilities range between Limited The CompanyhasalsoobtainedfinanceunderIstisnacumWakala from arrangement DubaiIslamicBankPakistan (June 30,2019:Rs.5.06million). million 0.65 Rs. to amount 2020 30, June at as expenditure capital of respect in commitments aggregate The been madeinthesefinancialstatements. provisionno has therefore, and Company the of favour in given be will decision that confident is advisor legal its of views the on based Company the of management The million). 45 Rs. (2019: million 48 Rs. to amounts suit the profitsunder of claimed account exposure on The hearing. pending is it where 2019 21, November on Hub from claims of Rs. 50 million to Rs. 100 million. Hence, the case of the Company to was Session transferred Court, order.said courts the session suspended of limit the November,enhanced In Balochistan of Government 2019, which Court, High Balochistan before Company the by challenged was order original The Judge. Civil Senior were framedandthePlaintiffhadproduced hiswitnesses.HoweversuitwasdecreedagainsttheCompanyby encroachmentalleged whatsoever.the claim disputes issues the filed, was Company the of statement written The and land of piece said the to ownership claims encroachment.Company alleged The such for fromCompany the profits mesne sought also has Plaintiff The 2003. year purchasedin he that him to belonging poles 34 - roads Plaintiff) (the Agha Hussain Altaf Balochistan, Hub at Judge Civil Senior the before Company the against filed suit a In amount. this for statements financial these in made been provisionhas no therefore, and Company the of favour in given be will decision final the that confident is consultant, Company,tax the its of of management views the on based The heardyet. been not has Tribunalwhich Appellate Revenue the Inland orderbefore the against appeal filed (Appeals) who declared the order in original as time and barred annulled it. Subsequently, the Income Tax Department Commissioner the before challenged was order said The million. 6.02 Rs. by Company the by claimed refund In 2014,theCompanyreceivedareassessmentor unutilised atyearendwasRs.820.90millionand1,000(2019:906.15500)respectively. Rs. and million 900 Rs. to amounted 2020 30, June at as guarantees and credit of letters opening for facilities The million). assetsoftheCompany.assets andcurrent AmountutilisedasatJune30,2020isRs.75million(2019:150 plus0.65%)perannum.Itissecuredbywayofhypothecationcharge overfixedplus 2%(2019:6monthsKIBOR the 3.86 million (2019: 1,000 million and Rs. 3.86 million) respectively out of which the amount remaining amount the which of out respectively million) 3.86 Rs. and million 1,000 (2019: million 3.86 tax year 2008. The Department had revised the return filed by the Company and reduced the income tax income the reduced and Company the by filed return the revised had Department The 2008. year tax amounting toRs.75million claims that in the year 2004 the Company allegedly encroached upon the land measuring 5 acres - 2 - acres 5 measuring land the upon encroached allegedly Company the 2004 year the in that claims (2019: Rs.150million). der, from theIncomeTax Department,inrespectofreturnfiled The profit rateonthis facility is6monthsKIBOR 25.2 25.1 5 COSTOFSALES 25. 24.1 REVENUEFROMCONTRACTSWITHCUSTOMERS 24. NOTES TOTHEFINANCIALSTATEMENTS F Stores, sparepartsandloosetoolsconsumed Salaries, wagesandbenefits-notes25.1&25.2 Closing workinprocess -note11 Manufacturing e Travelling andconveyance Outsourced jobcontractors Machining expenses Hard cok Cost ofgoodsmanufactured These includeRs.14.81million(2019:14.64million)inrespect of staffwelfaree and definedcontributionplansrespectively These includeRs.9.24million(2019:14.09million)and3.11 million(2019:Rs.3.44million)inrespectofdefinedbe Closing stockoffinishedgoods-note11 Opening stockoffinishedgoods Opening workinprocess Others Entertainment Training Opening stock materialsconsumed Raw the netsales. Sales toParentCompanyamountingRs.1,255.93million(2019:1,424.30million)accountfor94.25%94.1%)of Gross revenue Closing stock-note11 Purchases -Salestax -Salesreturns Less: Vehicle runninge Insurance Repairs andmaintenance Depreciation uel andpower e, dieselandkerosene oilconsumed xpenses xpenses . xpenses. 1,420,700,485 1,359,480,830 1,332,568,120 1,662,233,347 (329,665,227) (242,158,359) 710,251,713 112,414,510 126,281,800 117,458,989 127,604,613 638,406,121 647,217,312 153,843,917 (66,384,958) (14,963,447) (90,809,516) (87,506,868) 99,821,154 97,997,462 14,650,162 25,786,443 25,696,813 30,749,035 Rupees 1,834,079 1,577,227 5,536,435 3,008,430 2020 Rupees 2020 532,461 847,564 1,663,413,135 1,657,195,179 1,513,636,182 1,862,430,137 (127,604,613) (153,843,917) (348,793,955) (270,640,613) 135,425,003 159,081,616 108,002,038 767,610,855 161,463,026 137,801,619 113,337,810 133,822,569 807,368,729 772,051,899 149,402,873 (25,786,443) (78,153,342) 22,631,565 26,060,173 33,825,272 Rupees 2,196,687 2,427,579 1,798,278 6,008,022 4,618,203 2019 Rupees 2019 693,876 nefit 93 ANNUAL REPORT 2020 94 BOLAN CASTINGS LIMITED 27.1 73Auditors' remuneration 27.3 ADMINISTRATIVE EXPENSES 27. DISTRIBUTIONCOST 26. 27.2 26.2 26.1 NOTES TOTHEFINANCIALSTATEMENTS Sales promotion Depreciation Others Training Entertainment Auditors' remuneration-note27.3 Subscription Insurance These includeRs.0.68million(2019:1.45million)and0.820.87inrespectofdefinedben Salaries, wagesandbenefits-notes26.1&26.2 Audit fee Salaries, wagesandbenefits-notes27.1&27.2 Legal andprofessional char Freight char Out ofpocket e andothercertifications Fee forreviewofhalfyearlyfinancialinformation These includeRs.0.14million(2019:0.22million)inrespectofstaffwelfaree These includeRs.1.7million(2019:1.64million)inrespectofstaffwelfaree Vehicle runninge Depreciation Repairs andmaintenance Utilities Travelling andconveyance Outsourced jobcontractors and definedcontributionplansrespectively Others Insurance These includeRs.0.13million(2019:0.28million)and0.120.17inrespectofdefinedben and definedcontributionplansrespectively ges xpenses xpenses ges . . xpenses. xpenses. 34,474,475 65,346,781 46,474,680 38,176,292 2,040,907 1,280,280 2,444,705 3,012,689 1,280,280 1,168,808 1,621,076 2,482,468 4,576,596 389,603 212,422 894,663 871,743 639,469 326,500 702,500 251,280 134,908 504,056 265,001 Rupees Rupees Rupees 2020 2020 2020 34,524 - 40,895,542 76,439,969 58,166,108 49,354,120 2,032,264 1,061,740 2,286,165 6,483,773 1,061,740 1,517,236 1,545,839 1,438,898 2,414,348 3,157,130 505,745 257,170 840,043 813,135 803,538 297,000 669,000 106,355 527,634 931,000 Rupees Rupees Rupees 2019 2019 95,740 10,426 2019 efit efit 9 FINANCECOST 29. 30. 29.1 8 OTHERINCOME 28. 30.1 30.2 NOTES TOTHEFINANCIALSTATEMENTS Income from financialassets INCOME TAX EXPENSE Mark-up onshort-termfinancing-note29.1 This includesRs.21.36million(2019:9.43million)mark-uppaidonIslamicmodeoffinancing. Return onsavingsanddepositaccounts T The -fortheyear Current Reconciliation betweentaxexpense andaccountingprofit. Scrap sales Income from non-financialassets ax andFinalT Ex Liabilities nolongerrequiredwrittenback Defer -forprioryears Miscellaneous income Interest onworkers' pr andequipment Bank charges Gain ondisposalofpr Dividend income Company has computed tax current for the year under sections 113 and 150 of the Income Tax Ordinance, 2001 i.e. Minimum change loss red ax Regimerespectively. operty, plant ofits participationfund 78,330,091 73,069,278 12,070,847 20,643,069 20,074,772

(8,572,222) 10,368,052 8,910,981 2,493,711 4,681,339 5,593,686 1,457,071 Rupees Rupees 2020 2020 823,584 579,474 575,000 882,071 568,297 - - (71,120,633) (87,164,281) 16,709,114 15,134,821 51,258,194 48,750,948 11,708,949 16,043,648 16,082,226 1,954,290 1,658,884 1,574,293 Rupees Rupees 2019 2019 802,000 365,578 482,784 669,582 862,500 711,793 (38,578) 95 ANNUAL REPORT 2020 96 BOLAN CASTINGS LIMITED 31. 2 CASHGENERATED FROM/(USEDIN)OPERATIONS 32. 31.1 NOTES TOTHEFINANCIALSTATEMENTS Effect oftaxcredit Effect ofprioryearstax Effect ofchangeintaxrate Effect offinaltaxregime Income taxe Effect ofminimumtax W Increase in current liabilities Increase incurrent Loss for the year attributable to ordinary shareholders Loss fortheyearattributabletoordinary LOSS PERSHARE Accounting lossbeforetax Depreciation Adjustments for non-cash charges andotheritems Loss beforetax Effect ofunutilisedtaxlosses Tax atapplicabletaxrateof29%(2019:29%) Gain ondisposalofproperty Non-cash employeebenefitse Loans andadvances Loss pershare-Basicanddiluted T Other receivables Dividend income Return onsavingsanddepositaccounts Mark uponshort-termfinancing and 2019whichwouldhaveanyeffectonthelosspershareifoptiontoconvertise Diluted losspersharehasnotbeenpresentedastheCompanydidhaveanyconvertibleinstrumentsinissueatJune30,2 Refunds duefrom theGovernment-salestax Trade depositsandshort-term prepayments Stores, sparepartsandloosetools assets Decrease incurrent EFFECT ONCASHFLOWDUETOWORKINGCAPITAL CHANGES Inventories T rade andotherpayables rade receivables eighted averagenumberofsharesinissueduringtheyear xpense fortheyear , plantandequipment xpense x (271,688,324) (259,617,477) (259,617,477) (153,200,809) ercised. 195,844,673 259,397,091 102,463,048 106,416,668 135,077,052 (75,289,068) 19,988,522 89,648,391 12,070,847 66,883,544 10,042,948 27,255,224 11,472,529 15,695,315 73,069,278 (2,493,711) 1,168,479 2,974,474 2,430,907 Rupees Rupees 2020 2020 (412,184) (575,000) (882,071) 568,297 (80,448) (23.68) - - (238,999,489) (196,146,975) (310,120,122) (310,120,122) (220,509,615) (71,120,633) (89,934,835) (61,362,824) 18,920,452 18,312,502 15,822,204 28,083,154 11,472,529 49,233,732 89,610,507 83,992,507 (2,967,602) (1,154,381) (1,954,290) (1,245,247) (7,480,767) (6,682,987) 3,020,680 6,050,138 Rupees Rupees 2019 2019 (120,750) (862,500) (711,793) (38,578) (16,163) (20.83) - 020 4 RELATED PARTY DISCLOSURES 34. CASHANDEQUIVALENTS 33. 34.1 NOTES TOTHEFINANCIALSTATEMENTS - P Employee benefitfunds: rba e lbPaymentofmembershipfeeforaDirector - ArabianSeaClub eainhpwt h aueo rnatos2020 Saleofgoods Natureoftransactions - MillatTractors Limited Holding Company: Relationship withthe outwithrelatedpartiesduringtheyear: The followingtransactionswerecarried Cash andbankbalances (MTL) Short-term financing - Pr K payables respectively. Thesearesettledinor The relatedpartystatusofoutstanding balancesasatJune30,2020and2019isincludedintradereceivables andtradeot - MillatIndustrialProduct Limited xctvs rtiyfn Benefitspaidonbehalfofthefund Contributions - Executives' Gratuityfund - Executives' Gratuityfund iltEupet iie Saleofgoods - MillatEquipmentsLimited Associated company: ey managementpersonnel: opn Rupees Company ninfn Contributions ension fund vdn udContributions ovident fund Dividend paid Expenses incurred byMTL on Expenses incurred Pur P employeebenefitspaid Salaries andothershortterm Purchase ofgoods Purchase ofgoods behalfofCompany dinary courseofbusiness. dinary ost retirementbenefits chase ofgoods 1,255,932,210 (491,293,203) (493,845,173) 18,962,880 39,035,575 2,551,970 1,993,190 4,047,794 7,364,711 9,663,974 Rupees 2020 573,159 508,376 42,060 10,170 29,634 - - 13,267,980 18,612 1,424,300,241 (598,879,659) (607,845,445) 12,174,135 44,318,958 11,809,538 1,486,158 8,965,786 2,435,101 4,487,946 6,780,716 Rupees Rupees 2019 2019 562,286 784,055 10,984 - her 97 ANNUAL REPORT 2020 98 BOLAN CASTINGS LIMITED 36. PLANT CAPACITY PLANT ANDPRODUCTION 36. 34.2 35.2 35.1 REMUNERATION OFCHIEFEXECUTIVE,EXECUTIVEDIRECTORANDEXECUTIVES 35. NOTES TOTHEFINANCIALSTATEMENTS A Installed capacity Number ofpersons Capacity utilisation Others less thanthebudgetedproduction. N/A 49.33% Commondirectorship ParentCompany ArabianSeaClub 3 MillatTractors Limited 2 1 S.No. CompanyNameBasisofassociation Aggreg Following /agreementinplace. aretherelatedpartieswithwhomCompanyhadenteredintotransactionsorhavearrangement Medical e activity subsequenttheretoresulted indecreasemark andageneraldeclineineconom Due toshutdownofplantfor19daysasaresultthelockdowncurtail spreadofCOVID-19 iltIdsra rdc iie omndrcosi N/A Commondirectorship MillatIndustrialProduct Limited 4 Utilities Bonus are asfollows: Executive and Director ExecutiveExecutive, Chief of remuneration for statements financial the in charged amounts aggregate The with thetermsofemployment. accordancein cars maintained Company the providedwith also are Executives certain and Director ExecutiveExecutive, Chief The 375,000 (2019:Rs.375,000). Rs to amounted year the during meetings Directors Boardof attending for non-executivedirectors 2 to fee above, to addition In House rent andallowances Managerial remuneration Retirement benefits ctual pr oduction xpenses iltEupetLmtdGr Millat EquipmentLimited ------Rupees 9,635,140 1,167,464 6,711,577 196,631 690,283 736,180 133,005 002019 2020 he Eeuie xctvsDrco Executives Executives Director Chief Executives - 1 - 1,0,3 11,600,131 2278 292,738

2,462,959 6,581,449 1,132,351 424,550 706,084 et demandforCompany'spr omndrcosi N/A Common directorship oup Company/ 1 11,939,350 18,337,817 1,697,778 2,578,896 1,337,684 784,109 002019 2020 - - 1 2,665,530 305,758 - 1,3,3 19,834,239 11,539,522 oducts andthereforetheactualproduction was 1,318,698 1,515,791 2,488,940 002019 2020 13,200 1 50.17% 6,623 11,062,618 1,304,296 2,579,214 6,226,736 Metric tons 312,000 573,159 002019 2020 67,213 ate %ofShareholding - 4 2,600,820 2,530,291 6,147,877 13,446,874 1,225,796 312,000 562,286 13,200 67,804 65.86% 8,694 ic 4 s . 8 NUMBEROFEMPLOYEES 38. 7 PROVIDENTFUNDRELATED DISCLOSURE 37. 39.2 Financial assets and liabilities by category andtheirrespective maturities Financialassetsandliabilitiesbycategory 39.2 39.1 39. NOTES TOTHEFINANCIALSTATEMENTS -P Number ofemployeesatJune30 managing financialrisktominimiseearningsvolatilityandproviding maximumreturntoshareholders. wel as funding effective cost having programmeon management focuses risk overall Company's The risk. liquidity and risk credit -Contractual accordance withthepr All investmentsincollectiveinvestmentschemes,listedequityanddebtsecuritiesoutofprovident fund havebeenmade te eevbe - - - 3804 - 3804 348,074 348,074 - 28,228,101 28,228,101 - 6,408,170 348,074 770,268 28,228,101 - - - - 770,268 - 5,637,902 - - - 5,637,902 Cash andbankbalances Other receivables Trade receivables ue3,21 85923 - 85923 182282 2,2,6 6,1,7 169,045,241 160,515,978 60,062,465 22,223,166 3,276,955 54,424,563 138,292,812 8,529,263 22,366,665 3,276,955 32,057,898 - 829,000 5,637,902 17,459,875 - 17,459,875 2,447,955 17,459,875 - - 8,529,263 5,637,902 - - June 30,2019 - - June 30,2020 - T Loans andadvances Amortised Cost Long-term investments FVTOCI FINANCIAL ASSETS A * Thisincludes129(2019:153)numberoffactor The Financial riskfactors FINANCIAL RISKMANAGEMENTOBJECTIVESANDPOLICIES -Permanent ** Thisincludes136(2019:158)numberoffactor -Contractual aedpst - rade deposits verage numberofemployeesduringtheyear Company's activities expose it to variety of financial risks: market risk (including price risk, currency risk and interest and risk currency risk, price (including marketrisk risks: financial of variety to it expose activities Company's ermanent ovisions ofsection218theCompaniesAct, 2017andtheconditionsspecifiedthereunder. ------Rupees up toone Maturity year Interest /Markup after one Maturity bearing y employees year y employees u-oa Sub-total Sub-total - - 2350 40770 43120 4,341,290 4,341,290 4,077,790 263,500 - - up toone Maturity year Non-mark upbearing Non-interest / after one Maturity year 2020 * 151 * 144 142 149 2 2 2019 rate Total in 174 172 179 177 risk), l as l 2 2 99 ANNUAL REPORT 2020 100 BOLAN CASTINGS LIMITED i Creditrisk (i) i)Liquidityrisk (ii) NOTES TOTHEFINANCIALSTATEMENTS The managementdoesnotexpect anylossesfrom non-performance bythesecounterparties. The bank balances represent low credit risk as they are placed with banks having good credit ratings assigned by credit rating Other receivablesconstitutemainlyrefundsfrom theGovernment,therefore,arenotexposed toanysignificantcreditrisk. Loans andadvancestoemployeesare not exposed toanymaterialcreditrisk,sincetheseare secured againsttheirretirementb Deposits havebeenplacedmainlywithutilitycompanies,henceexposed tonosignificantcredit risk. were pastduebutnotimpaired.Trade receivablesmajorlypertaintorelatedparties forwhomthereisnosignificantriskofd accordance with limitssetbythemanagement.AsofJune30,2020,tradereceivablesRs.4.22million(2019:13.62mill r worthiness credit external or internal on based set are limits risk Individual factors. other and experiences past positions, For trade receivables, internal risk assessment process determines the credit quality of the customers, taking into account the (2019: Rs.151.29million). milli 42.55 Rs. to amounted risk credit to subject are which assets financial the million), 169.05 Rs. (2019: million 60.06 Rs. contracted. The contracted. perform to failed parties counter if date reporting the at recognised be would that loss accounting the represents risk Credit manages liquidityriskbymaintaining sufficientcashandbankbalancestheavailabilityoffinancingthr Liquidity riskisthethatanentity willencounterdifficultiesinmeetingobligationsassociatedwithfinancial liabilit (551,043,127) 3,487,166 48,273,055 16,606,964 6,038,264 3,487,166 31,666,091 493,845,173 - 6,038,264 (599,316,182) - - 5,231,810 205,496,385 806,454 205,496,385 720,088,368 112,242,923 - 3,487,166 June 30,2019 - 5,616,202 (599,316,182) - 106,626,721 - 607,845,445 June 30,2020 - Letters ofcredit/guarantee: 205,496,385 732,417,823 - - 215,021,815 - OFF STATEMENT OFFINANCIALPOSITIONITEMS 5,231,810 - 209,790,005 607,845,445 June 30,2019 517,396,008 17,888,910 - 493,845,173 499,507,098 - - June 30,2020 - ON STATEMENT OFFINANCIALPOSITIONGAP - 493,845,173 5,661,925 June 30,2019 June 30,2020 Short-term financing Unclaimed dividend Trade andotherpayables Long-term loan Deposits FINANCIAL LIABILITIES maximum exposure to credit risk is equal to the carrying amount of financial assets. Out of total financial assets of assets financial total of Out assets. financial of amount carrying the to equal is risk credit exposureto maximum ------Rupees up toone Maturity (493,869,196) year Interest /Markup after one Maturity bearing year (78890 (1,5,0)(7,3,0) 71485 105722 (672,355,358) (160,597,252) 17,134,855 (177,732,107) (511,758,106) (17,888,910) 1,8,1 35085 - - - 23,550,835 - - - 23,550,835 17,888,910 u-oa Sub-total Sub-total up toone Maturity year Non-mark upbearing Non-interest / after one Maturity year ough bankingar ies. TheCompany rangements. ir financial agencies. Total atings in atings efault. enefits. ion) on as 97,702,786 77,483,342 ii Market risk (iii) i)Fair valueoffinancialinstruments (iv) NOTES TOTHEFINANCIALSTATEMENTS )PriceRisk a) - Inputs for the asset or liability that are not based on observable market data(level3). Inputsfor theassetorliabilitythatarenotbasedonobservable - - Inputs other than quoted prices included within level 1 that are observable fortheassetorliability, Inputsotherthanquotedpricesincludedwithinlevel1thatare observable eitherdirectly(i.e. - Quotedprices(unadjusted) inactivemarkets foridenticalassetsorliabilities(level1); - The fairvaluehierarchy hasthefollowinglevels: classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the value of all financial assets and The liabilities carrying reflected in these financial statements approximate their fair value atfairvalue. of BaluchistanWheelsLimitedwhicharecarried quot exceptin cost investment amortised for at carried are liabilities financial and assets financial all 2020, 30, June at As orestimatedusinganothervaluationtechnique. price isdirectlyobservable most Fair valueisthepricethat wouldbereceivedtosellanassetorpaidtransferaliabilityinorderly transactioninth risk Currency b) )Interestraterisk c) advantageous) prices ma in changes to due fluctuate will instrument financial froma flows cash future or value fair the that risk the is risk Price or indirectly(i.e.derivedfrom prices)(level2);and to theindividualfinancialinstrumentoritsissuer, orfactorsaffectingallsimilarfinancialinstrumentstradedinthemark (2019: Rs.5.99million),mainlyasaresultofhigher/lowerinterestexpense onfloatingrateborrowings. million 4.92 approximatelyRs. by lower / higher been have would year the for tax before loss constant, held variables other the all with points basis 100 by varied rate interest the had and million), 607.85 Rs. (2019: million 493.85 Rs. of liabilities At June30,2020,theCompanyhadvariableinterestbearingfinancialassetsofRs.1.78million(2019:8.53million)and financing availedatvariableratesexpose theCompanytocashflowinterestraterisk. Short-term 19). (note loan term long and 15) (note receipts deposit term and accounts savings in bank at cash 22), (note mark e risk is Currency the risk that the fair value or future cash flows from a financial instrument will fluctuate due to changes in Interest rate risk is the risk that the fair value or future cash flows from a financial instrument will fluctuate due to chang to due fluctuate will instrument financial froma flows cash future or value fair the that risk the is risk rate Interest mentioned percentages perannum. the by basis average on moved have rates years) (five historically that fact the to due used been have exchangerates foreign balance sheetdateandassumesthisis thepositionforafulltwelve-monthperiod.Thevolatilitypercentages formovementin the at as only Company the of balances exchange foreign outstanding the at looks rates exchange foreign of sensitivity The result offoreignexchange denominatedtradeandotherpayables. losses/gainsontranslation offoreigncurrency a as million), 0.4 Rs. (2019: million 0.79 Rs. by lower / higher been have would year the for tax before loss constant, held variables other all with currency foreign against 2% by strengthened weakened/ had Rupee Pak the if 2020, 30, June at As risk. and otherpayablesofRs.39.54million(2019:22.5million)areexposed toforeigncurrency xchange rates. Currency riskarisesmainlywhere receivablesand xchangepayables exist rates.Currency inforeigncurrency. AsatJune30,2020,trade et interest rates. The Company’s interestrateriskarisesfromet interestrates.TheCompany’s short-termfinancingwhichincludesrunningfinancefacilities (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific factors by caused are changes those whether risk), currency or risk rate frominterest arising those than (other market at the measurement date under current market condition (i.e. an exit price) regardless of whether that whether regardlessof price) exit an (i.e. marketcondition current under date measurement the marketat s. The Company measurements. e principal(or ed shares ed as prices)

et. foreign es rket in 101 ANNUAL REPORT 2020 102 BOLAN CASTINGS LIMITED 0 CAPITAL RISKMANAGEMENT 40. NOTES TOTHEFINANCIALSTATEMENTS Financial Assets Financial Assets FVOCIinvestments fairvaluemeasurementof Recurring FVOCIinvestments fairvaluemeasurementof Recurring ett aia ai 84.41% 605,380,388 Debt tocapitalratio Total capital The oa qiy94,392,550 Total equity e et510,987,838 Net debt Cash andbankbalances-note15 The losses. capital in decline by driven mainly is ratio equity to debt in sourcesappropriateincrease various The between finance. mix of 30, 2020: valu fair at measured class) (by assets hierarchyfinancial value Company's fair the the of within analyses table following The The debttocapitalratiosasatJune30,2020and2019werefollows: capital. provide returnsforshareholdersandbenefitotherstakeholders andtomaintainan optimalcapitalstructuretoreducethe Short-term financing-note22 Long-term loan Company's Company finances its operations through equity, borrowings and management of working capital with a view to maintaining an maintaining to view a with throughcapital equity,operations working its of finances management and borrowings objectives when managing capital are to safeguard the Company's ability to continue as a going concern in orderin concern to going a as continue to safeguardability to Company's are the capital managing when objectives ------Rupees ------Rupees 1,5,7 17,459,875 - - 17,459,875 1,8,2 - - 17,580,625 Level 1 Level 1 Level 2 Level 2 2019 2020 493,845,173 23,550,835 (6,408,170) ee Total Level 3 Total Level 3 Rupees 2020 976,824,997 381,801,538 595,023,459 607,845,445 (12,821,986) 17,580,625 Rupees 2019 60.91% e at June at e due to due cost of - 2 DATE OFAUTHORISATION 42. CORRESPONDINGFIGURES 41. NOTES TOTHEFINANCIALSTATEMENTS These financialstatementswereauthorisedforissueonSeptember15,2020bytheBoard ofDirectorstheCompany. effects ofwhicharenotmaterial. th necessary,comparison, wherever of reclassified, purpose and the for rearranged been have balances and figures Corresponding Chief Executive Director Chief FinancialOfficer e 103 ANNUAL REPORT 2020 104 BOLAN CASTINGS LIMITED *There isnoshareholdingintheslabsnotmentioned. AS AT JUNE30,2020 PATTERN OFSHAREHOLDING Shareholders 21 14259 114,725,290 11,472,529 1221 No. of 9 0 ,2 92,200 1,447,800 9,220 144,780 500 100 101 1 534 199 4 0150 0,4 6,080,480 1,440,860 608,048 144,086 5000 1000 1001 501 242 164 110110013121,331,920 3,375,130 133,192 337,513 15000 10000 10001 5001 11 45 50 00 526852,360 85,236 20000 15001 5 00 50 703670,630 67,063 25000 20001 3 50 00 100810,000 81,000 30000 25001 3 00 50 220322,700 32,270 35000 30001 1 00 50 474447,940 44,794 45000 40001 1 50 00 628962,780 96,278 50000 45001 2 50 00 770677,000 67,700 70000 65001 1 350 300 ,0,7 53,069,790 9,250,000 11,300,000 8,000,000 4,882,760 3,000,000 5,306,979 925,000 2,582,660 1,130,000 800,000 1,663,690 488,276 1,443,590 300,000 5310000 1,021,000 258,266 1130000 925000 166,369 800000 144,359 490000 102,100 5305001 300000 1125001 260000 920001 170000 795001 145000 485001 105000 295001 255001 1 165001 1 140001 1 100001 1 1 1 1 1 1 1 rmTo From Size ofHolding Total Shares Held Rupees Amount AS ATJUNE30,2020 CATEGORIES OFSHAREHOLDERS .o atclr Percentage % Particulars S.No. GeneralPublic 6 Modarabas&MutualFunds 5 InsuranceCompanies 4 Banks,DevelopmentFinanceInstitutions,Non-BankingCompanies 3 AssociatedCompanies,Undertakingsand Related Parties 2 NIT&ICP 2 DirectorsandtheirSpouse(s)MinorChildren 1 Share holdersholding10%ormore 7 Others 8 b. F .Lcl19 043 34.90 4004135 1191 a. Local ydJvi srf1 796 0.16 17,936 1 Syed JavaidAshraf C m.PninFn rs 4,7 0.40 46,278 1 Emp.PensionBCL Fund Trust ydMhma ra qel1 ,0 0.02 2,500 1 Syed MuhammadIrfanAqueel r iadrMsaaKa 1639 1.45 166,369 1 Mr. L Mr. SikandarMustafaKhan T Foreign Companies iltTatr iie 53699 46.26 5,306,979 1.09 125541 10 Millat Tractors Limited b. Miscellaneous a. JointStockCompanies Millat T r ae di nai1 ,2 0.03 1.26 3,120 144,359 1 1 Mr. UddinAnsari Laeeq Mr. SohailBashirRana tl 12 1,7,2 100.00 11,472,529 1221 otals rin - - - oreign tfKai ahi1 220 0.28 32,270 1 atif KhalidHashmi atr iie 53699 46.26 5,306,979 1 ractors Limited Shareholders ------70 0.24 27900 2 0236.98 800273 2 8764.26 488716 2 0132.67 306153 6 Shares Held 105 ANNUAL REPORT 2020

3. .Signature: 2. Signature: 1. WITNESSES: ______asmy/ourproxy toattendandvotefor me /usandonmy /ourbehalfatthe38 ______of district the in ADDRESS) (FULL ______of (NAME) ______Miss / Mrs. / Mr. appoint hereby ______of______No. holder Shares a ______and LIMITED CASTINGS BOLAN of members / member a being of______district the in ADDRESS) (FULL ______of (NAME) ______I/We Signed this ______day of ______2020 ______of day ______this Signed 2020 at1200Hoursand/oranyadjournmentthereof. of theCompanytobeheldatRegisteredOffice,MainRCDHighway, BalochistanonWednesday, HubChowki,DistrictLasbela, Octob 2. 1. Important: Proxy Form Passport No: CNIC or Address: Name: Passport No: CNIC or Address: Name: member isacorporation/company eitherunderthecommonseal,orhandofanyofficerattorney soauthorised. District Lasbela, Balochistannotlessthan48hoursbeforethetimeofholding ofthemeeting. District Lasbela, This The vote insteadofhim/her and attend proxyto a appoint to entitled is Company the of Meeting General Annual the at vote and attend to entitled member A instrument appointing a proxy should be signed by the member (s) or by his / her attorney duly authorised in writing, or if the if or writing, in authorised duly attorney her / his by or (s) member the by signed proxybe a should appointing instrument Proxy Form, duly completed, must be deposited at the Registered Office of the Company,Highway,the RCD Chowki, of Main Hub Office Registered the at deposited be must completed, Proxyduly Form, . Folio No./CDCAccount No. signature registeredwiththeCompany) (Signature shouldagreewithspecimen Five Rupees Signature Revenue Stamp on th AnnualGeneralMeeting er 28,

ANNUAL REPORT 2020