ANNUAL REPORT | 2020 1 Pearl-Continental Hotel, Lahore CONTENTS 4 Vision & Mission Statements 5 Corporate Information 6 Corporate Objectives 8 Board of Directors 10 Notice of Annual General Meeting 12 Chairman’s Review 22 Directors’ Report 28 Key Operating and Financial Data 29 Horizontal Analysis 30 Vertical Analysis 31 Statement of Value Addition and its Distribution 34 Statement of Compliance with Listed Companies (Code of Coporate Governance) Regulations, 2019 38 Independent Auditors’ Report to the members on the Audit of the unconsolidated financial statements 43 Independent Auditors’ Review Report to the members on the Statement of Compliance contained in Listed Companies (Code of Coporate Governance) Regulations, 2019 44 Unconsolidated Statement of Financial Position 46 Unconsolidated Statement of Profit or Loss 47 Unconsolidated Statement of Comprehensive Income 48 Unconsolidated Statement of Cash Flows 49 Unconsolidated Statement of Changes in Equity 50 Notes to the Unconsolidated Financial Statements 111 Pattern of Shareholdings 112 Disclosure to Pattern of Shareholdings 116 Consolidated Directors’ Report 118 Independent Auditors’ Report to the members on the Audit of the consolidated financial statements 124 Consolidated Statement of Financial Position 126 Consolidated Statement of Profit or Loss 127 Consolidated Statement of Comprehensive Income 128 Consolidated Statement of Cash Flows 129 Consolidated Statement of Changes in Equity 130 Notes to the Consolidated Financial Statements Pearl-Continental Hotel, Lahore PAKISTAN SERVICES LIMITED Vision Statement We are committed to dynamic growth and service excellence built upon our heritage of traditional hospitality. We strive to consistently meet and surpass guests’, employees’ and other stakeholders’ expectations. We feel pride in making efforts to position Pakistan in the forefront of the international arena. Mission Statement Secrets to our sustained leadership in hospitality are Excellence and Dynamism through offering competitive and innovative high quality value added services to our guests and business partners. To meet the challenges of modern business, we constantly upgrade our operations and services in line with latest technological facilities. As a responsible corporate citizen, maintaining the highest level of governance, ethical standards and prudence. Keeping close-watch at socio-political environment to make use of all available growth opportunities through aggressive and proactive approach. Believe in strong and professional workforce by providing challenging and rewarding environment and equal respect to all through creating the sense of participation towards the success of our vision. 4 ANNUAL REPORT | 2020 CORPORATE INFORMATION Pearl Continental Hotels, a chain owned, operated and franchised by Pakistan Services Limited, sets the international standards for quality hotel accommodation across Pakistan and AJ&K and manages 7 luxury hotels in Karachi, Lahore, Rawalpindi, Peshawar, Bhurban, Muzaffarabad, Malam Jabba; comprising 1,543 rooms. It also owns another small hotel with 32 rooms in Lahore city. BOARD OF DIRECTORS COMPANY SECRETARY Mr. Sadruddin Hashwani Chairman Mr. Mansoor Khan Mr. Murtaza Hashwani CEO Mr. M. A. Bawany AUDITORS Mr. Shakir Abu Bakar M/s KPMG Taseer Hadi & Co. Syed Haseeb Amjad Gardezi Chartered Accountants Mr. M. Ahmed Ghazali Marghoob 6th Floor, State Life Building No. 5 Jinnah Ms. Ayesha Khan Avenue, Blue Area Islamabad. Mr. Rohail Ajmal Mr. Shahid Hussain LEGAL ADVISOR M/s Liaquat Merchant & Associates AUDIT COMMITTEE Mr. M. Ahmed Ghazali Marghoob Chairman BANKERS Mr. Shahid Hussain National Bank of Pakistan Ms. Ayesha Khan The Bank of Punjab Habib Bank Limited HUMAN RESOURCE & REMUNERATION Soneri Bank Limited COMMITTEE United Bank Limited Mr. M. Ahmed Ghazali Marghoob Chairman Askari Bank Limited Mr. Murtaza Hashwani JS Bank Limited Ms. Ayesha Khan Muslim Commercial Bank Limited Silk Bank Limited Faysal Bank Limited NOMINATION COMMITTEE Standard Chartered Bank (Pakistan) Limited Mr. Murtaza Hashwani Chairman Industrial and Commercial Bank of China Mr. M. A. Bawany Dubai Islamic Bank ( Pakistan) Limited Syed Haseeb Amjad Gardezi Mr. Shakir Abu Bakar REGISTERED OFFICE 1st Floor, NESPAK House, RISK MANAGEMENT COMMITTEE Sector G-5/2, Islamabad. Mr. Murtaza Hashwani Chairman Tel: +92 51-2272890-8 Mr. M. A. Bawany Fax: +92 51-2878636 Syed Haseeb Amjad Gardezi http://www.psl.com.pk Mr. Shakir Abu Bakar http://www.pchotels.com Mr. Rohail Ajmal http://www.hashoogroup.com CHIEF FINANCIAL OFFICER SHARE REGISTRAR Mr. Javed Iqbal M/s THK Associates (Private) Limited 1st Floor, 40-C, Block-6, P.E.C.H.S, Karachi. 5 PAKISTAN SERVICES LIMITED CORPORATE OBJECTIVES Code of Conduct The smooth and successful flow of processes and operations can not be achieved without the active participation and concerned efforts of all the employees of the Company. Discipline and professional working environment largely depends on behavior and attitude of the employees. Hence the Company has established its own standards of: Confidentiality Attendance and punctuality Working relationships Discussion topics Behavior and Attitude-in-General Core Values Innovation Growth and development for all Listening and two-way interaction Competence and contribution as the only basis for job Encouragement security Enterprise Promotion from within Participation Learning environment and opportunities Motivation Provision for world-class education and training Initiative Aligning people with latest technological trends Trust Recognition and Reward Cooperation Achievement orientation Integrity Appreciation Dignity Setting ever-rising standards of performance Respect Performance-based evaluation Candidness Incentives Support Teamwork Sense of ownership Empowerment Strategic Objectives Sustain potential market share through managed average daily rate Ensure successful completion of all expansion projects Seek improvement in employees’ competencies and enhancing performance goals Continue achieving sales growth to support long term plan Reinforce all areas of security risks to Company’s assets and guests 6 Pearl-Continental Hotel, Karachi BOARD OF DIRECTORS Mr. Sadruddin Hashwani Mr. Murtaza Hashwani Mr. M.A. Bawany Mr. Shakir Abu Bakar Syed Haseeb Amjad Gardezi Mr. M. Ahmed Ghazali Marghoob Ms. Ayesha Khan Mr. Shahid Hussain Mr. Rohail Ajmal STATutoRY OFFICERS Mr. Javed Iqbal Mr. Mansoor Khan Syed Nehal Ahmed Zaidi Chief Financial Officer Company Secretary Head of Internal Audit PAKISTAN SERVICES LIMITED NOTICE OF 61st ANNUAL GENERAL MEETING Notice is hereby given that the 61st Annual General Meeting of Pakistan Services Limited will be held on Wednesday, October 28, 2020 at 11:00 a.m. at Islamabad Marriott Hotel to transact the following business: 1. To confirm the minutes of the Extraordinary General Meeting held on March 26, 2020. 2. To receive, consider and adopt the Audited Financial Statements together with the Directors’ and the Auditors’ Reports thereon for the year ended June 30, 2020. 3. To appoint Auditors for the year 2020-21 and fix their remuneration. 4. To consider any other business with the permission of the Chair. By Order of the Board Mansoor Khan Islamabad: September 30, 2020 Company Secretary Notes: A. Any member of the Company entitled to attend and vote at the Annual General Meeting may appoint another member as his/ her proxy to attend and vote instead of him/her except in case of a corporate entity which may appoint a proxy who may not be a member. Proxies must be received at the Registered Office of the Company not less than 48 hours before the time of holding the Meeting. B. The Share Transfer Books of the Company will remain closed from October 22, 2020 to October 28, 2020 (both days inclusive). C. Shareholders are requested to notify the Company’s Share Registrar, M/s. THK Associates (Private) Limited, 1st Floor, 40-C, Block-6, P.E.C.H.S., Karachi, of any change in their address. D. CDC Account Holders will further have to follow the under-mentioned guidelines as laid down in Circular 01 dated January 26, 2000 issued by the Securities and Exchange Commission of Pakistan. a. For Attending the Meeting: i) In case of individuals, the account holders or sub-account holders whose registration details are uploaded as per the CDC Regulations, shall authenticate their identity by showing their original Computerized National Identity Card (CNIC) or original passport at the time of attending the meeting. ii) In case of corporate entity, the Board of Directors’ Resolution / Power of Attorney with specimen signature of the nominee shall be produced (unless it has been provided earlier) at the time of the meeting. b. For Appointing Proxies: i) In case of individuals, the account holders or sub-account holders whose registration details are uploaded as per the CDC Regulations, shall submit the proxy form as per the above requirement. ii) The Proxy Form shall be witnessed by two persons whose names, addresses and CNIC numbers shall be mentioned on the form. iii) Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished with the Proxy Form. iv) The proxy shall produce his original CNIC or original passport at the time of the meeting. 10 ANNUAL REPORT | 2020 v) In case of corporate entity, the Board of Directors’ Resolution / Power of Attorney with specimen signature shall be submitted (unless it has been provided earlier) along with Proxy Form to the Company. E. As per the provisions of Section-242 of the Companies Act, 2017