PRODUCTIVITY is never an accident. It is always the result of a COMMITMENT to excellence, intelligent planning and focused effort. — Paul J. Meyer Company INFORMATION Board of Directors As on June 30, 2014 1. Mr. Miffah Ismail, Chairman COMPANY SECRETARY (Non-executive Director) Fozo <apadia Raffay 2. Mr. Zuhalr SiddIgui (Executive Director) AUDITORS 3. Agha Sher Shah Mis Deloitte Yousuf Adil, (t-cleoendent. Non-executive Director) Chartered Accountants 4. Mr. Muhammad AM Hameed (ershvhile M. Yousuf Adil Saleern and Co., t.No^.oyeit D‘oc-ott Chartered Accountants) 5. Mirza Mahmood Ahmad (No--erecAve Deect0‘. REGISTERED OFFICE SSGC House. 6. Mr. Arshad Mb= Sir Shah Suleman Road, (Nor.-executive Director) Guishan-e-lqoal, Block 14, • Karachi - 75300, Pakistan. 7. Mr. Saleem Zamindar Non•execurrve Directcxi CONTACT DETAILS 8. Mr. Mobln Saulat Ph: 0092-21-9902-1000 (Non-executive Directo-) Fax: 0092-21-9923-1702 9. Nawabzada Rlaz Nosherwani Email: [email protected] (Non-executive Ditectot) Web: ,,,,weessgc.com.ok 10. Sardar Rizwan Kehar (Non-executive Directct) SHARES REGISTRAR 11. Ms. Azra Mujtaba Central Depository Company of Pakistan INon-execulve Director) CDC House, 99-B, Block 8, SMCHS, 12. Mr. AamIr Amin Main S-Larah-e-Faisal, !Non-executive Director) Karachi, Pakistan. 13. Mr. M. Raeesuddln Paracha LEGAL ADVISOR Non.croc_rive D,recton M/s Haidermota and Co., 14. Mr. Mohammad BIIaI Shelkh Barrister-at-Law and Corporate Counsels on-executive Director) 41,111111111.81* ""dh./Pg•) • 'tot Contents 05 Core Values 06 Thematic Values 09 Board of Directors and Committees 39 General Overview 43 Chairman's Review and Directors' Report 82 Financial Statements 83 Auditors' Report to the Members 154 Consolidated Financial Statements 155 Auditor Report to the Members 229 statistical Information Form of Proxy S SS NIS_ a aZ a a a a at- om a a a ai, um a_ an s, 111L_Nlat4„ < r lo 111_WIS711 no mu m Co WWI1111 .8" 5 ABOUT THE COVER Where there is a will, there is a wayl Ever the optimists, we at SSGC see an opportunity In every challenge, and rf Is this attitude that helps us overcome any obstacle that may come in our way. We are never intimidated by challenges but with a clearly defined plan, we move forward towards achieving the set objective. The year under review was a testing time for us The widening natural gas demand-supply gap and Unaccounted- for-Gas (UFG) continued to be the two major challenges faced by the Company. Yet we ventured on. As we move into the next year, we are already aware of challenges that stand in our way. We have a game pion in place and our human resource is determined to make things happen by channelizing our energies In those areas that require our Immediate attention. VISION and MISSION I VISION MISSION To be a model utility, providing quality service To meet the energy requirements of customers by maintaining a high level of ethical and through reliable. envIronmont-friendty and professional standards and through optimum sustainable supply of natural gas, while use of resouces. conducting company business protessialallY, efficiently, ethicaly and with responsibility to all our stakeholders, community and the nation. Core Values TEAMWORK EXCELLENCE CREATIVITY INTEGRITY • TRANSPARENCY RESPONSIBILITY TO STAKEHOLDERS Banking on Human RESOURCE In these taxing times. the Company is banking on its human resource, Its most valuable asset. Our people's dedlc:atton, perseverance, integrity and ownership will surety take the Company forward. Following an Aggressive APPROACH The Company Management and the staff are both determined to face up the obstacles that stand in their way, not by taking the normal route but through a dynamic approach that may require taking bold steps. Board of 10 Profiles of Board of Directors - As on June 30, 2014 Directors and Committees 13 In session snapshot of the present Board of Directors This section profiles the Board of Directors as on June 30, 2014, snapshot of the present Board of Directors in 14 Profiles of the present Board of Directors session, and respective profdes of these Directors In addition, the section covers the snapshots of the present Board of Directors and respective Committees of 22 Snapshots of present Board of Directors and the Company's Board. respective committees The section also lists down the function of the Committees of the Board (as on June 30, 2014) and provides at a glance, information about the Attendance of 32 Committees of the Board - As on June 30, 2014 Directors at Board meetings during the year. This section also canes the 'Notice of 60th Annual General Meeting' 34 Notice of 60th Annual General Meeting 36 Attendance of Directors at Meetings www.ssgc CCM pk BOARD OF DIRECTORS As on June 30, 2014 .11 Miftah Ismail Chairman M• Mittah Ismail -ods a PhD in Public Firence and Political Economy from the:Whalen Scnool of Buress. university of Pennsylvania A profess[onal economist. Mr. Ismail was associates with the Intemamnal Monetary Fund .:110:. bairn retum:ng to Pakistan. Mr. lama I is also CEO and Direc:or at Ismail Industries Ltd., Pakistan's largost confectionery company He is also u Dirocter of Astroplastics !Pvt.) Ltd.. Delrnare Foods and Pakistan latemational Ate! Corporation Zuhair Siddiqui Managing Director f A highy expel enced professicta i^ difforent areas & management. pro: to becoming Ile Company's Managing Director. Mr. Lila:. S ddiqut was DMD (Corpo•ate Ser.ccesi c-argo of Management Services (MSI. Informatior Technology ill) and Customer SCI'ViCOS' (CS} divsiors Before joining SSGC. 1* Sid:tour was associated oath Civil Avatio- Au:iority. Agha Sher Shah Director p %-leha Si-or Shah ti r C•-.aurnan rd Chief Execatnie of Band-n Sugar Milts. Prior to ^is current role. he was sonic), POI t1olio lvfanager of a multi-pillion dollar partial a i- Ab Dhabi Investmer. Authority IADIAI. one ryi the world's largest sovereign wealth funds. Mi. Shinn stated his career as an hvestment Anays-. covering consume', rergy and finance sectors 01 the SW b0C n tie U.S. Egaty Market. Muhammad Arif Hameed ; Director Mr Munantn3d kit Harneeri. C‘ief Executive and MD. S..1 Norlir Gas Pte'ine Ltd iSNGPLI is a !!,edraocat eng Fier professor% •eg stored w r•-• Pa•astan Engineer ng Council Mr I firmed ^as 36 years n` expe7ience r the natofal gas industry. part cuary in the ola-ning, dosgnirs urslitio:-on and operation of transmission and distributior networks in Pakistan. 60'n ANNUAL REPORT 2014 Mirza Matimood Atimad Director A barrister wtth a crecbr spann rg over 24 wars. M r Maned Atlirkie 6 a Danner at &Into and MUM. Advocates and Sol caors -triad has represented a number of nubile and private sector companies. Mr Ahmad has a BA and t Le from the University of Punjab and LLIVIrrnm the University of Cambcdge. Arshad Mirza Director Mr Arshad Nina pined evil some in ;lye District Management Group in 1%3. aher cornoleuno a Masters in Pubtac AdininsVation from Ouaide Aram Universay. Islamabad Mr. Mara has %gist experience in rxibbc admnstraticr, and po‘cy. He 6 Currently seev'ng as Si..ctary. Mnstw of Per!oleum and Natura; IttLkeznacris. and he has served as maa3gcyA ()rector of Govern/Tern Hddrgs Private Lrnacd and HOocarben Ce.eigYnefit Institute 0 Pakistan. Mr Mirza has also been the Director on the Boards of Pakistan re:roleurn Limited. Su' Northern Gas Pipelines Limited, Oil and Gas Development Company I mired and Pak Arab Raillery Ltd. Salaam Zamindar Director Mr Seem Zarnrida has mix 21 wars of experience in four cocinnes at Investment maraariment• bcard level general management and international banking. Mi. 7.arnindar servos on the Board of Directors of several Publclv Estee and private tamed cornpan I to has an MBA from Durham University Business School, UK. Mobin Saulat Director 14vV Motel Satan s Managing Director rd Chef Executive Officer CEO' of Inter State Gas Systems Rot Ltd. IISGSI Mr Sada: has over 20 wars of experience in commeroai and professional environments n Pakistan and atxoad. He has served as the Company Secretary and Finance Director of the Islamabad Electric Supply Corporation (IESCO1 Pvt. Ltd. Mr. Sallial was elected as the first Chairman of Board of Directors of TAPI rPv:.1 Limited foi mod by the Consortium of Turkmenistan, Afghanistan, Pakistan and India for the execution ard operation of TAPI Pipeline Project, 19 Nawabzada Riaz Nosherwani Director A scion of BalochistanS eminent Nosherwani ferny. Nawabzada Rwe Noshenvarf specialces an the field of minerals and natural resources. He is the owner of Charkohan Mina- in a.eta and Royal Minerals Corporation and KSN associates m Karadi, SUI SOUTHERN GAS COMPANY LIMITED www.ssgc.com.pk Sardar Rizwan Kehar Director Sardar Rowan Kehar has over 36 years of expeience in Pacistan and USA in various fields including hi-ter. inzemateelal tarticr9. finance. management agnaureadconsultrg. Mr. Kehar roes a Bachelors (ewe in Enaneenng and Masters Degrees in niormaticn Systems and France. He .s also an MBA in Marketing. Azra MujtabL Director Ms. Airs Vuiabe has served as Additonal France Se'aeta-y. Minir.yof Governme-t of Paestary She has also hod vanous senior management pos tons including Member (SP&S) at Feoeral Board of Revenue, Commissioner (TFC/IPI. Commerce! Counselo; Embassy of Pakistan in Italy, Deputy Secretary at Prime Minster's Secretariat anc Additions' Drecor at Central Boarnl o' Revenue She has served as Director on the Board of Pak star Stec. Mills. 4 Aamir Amin Director It 11 Mr. Aamir Amin has a °vacated wcenerce of over 12 years n franca! services i-dustry. Mr. Amin joinee National Investment Trust Limited in July 2006 as Controller Accounts and was elevated to the position of Feed of Finance n January 2008.