Annual Report 2022

Pakistan

www.siemens.com.pk
Content

Our Profile Information for stakeholders Our Company

P. 4 P. 8 P. 9
Our Four Strategic Priorities Key Operating and Financial Data Company Information
P. 10
Chairman‘s / Directors‘ Profile
P. 14
Chairman‘s Review Report
P. 15
Directors‘ Report
P. 22
Board Committees and Terms of
Reference

Sustainability at Siemens Financial Report Shareholders‘ Information

P. 26 P. 30 P. 77
Sustainability and Corporate Auditors‘ Review Report Pattern of Shareholding
Citizenship at Siemens P. 31 P. 78
Statement of Compliance Categories of Shareholders
P. 33 P. 79
Auditors‘ Report Notice of Annual General Meeting
P. 37 P. 86
Statement of Financial Position ‫ڈائریکٹرزرپورٹ‬
P. 38 P. 87
Statement of Profit or Loss ‫چیئرمینکیجائزہرپورٹ‬
P. 39
Statement of Comprehensive Income
P. 40
Statement of Cash Flows Proxy Form ‫پراکسیفارم‬
P. 41
Statement of Changes in Equity Dividend Mandate Form
P. 42
Notes to the Financial Statements Request Form for Annual Report and
Notices through E-mail
 Our Four Strategic Priorities

Customer impact
We are taking impact to the next level,
aiming to anticipate what our customers
need before they even know they need it.

4 SIEMENS ANNUAL REPORT 2022

 Our Four Strategic Priorities

Empowered people
Authority for decision making should be
delegated to where it is needed, at the
lowest possible level. Freedom to act is
directed by guiding principles.

SIEMENS ANNUAL REPORT 2022 5

 Our Four Strategic Priorities

Technology with purpose

We shape and apply our technology to
transform our customers’ industries and
solving the world’s most pressing issues.

6 SIEMENS ANNUAL REPORT 2022

 Our Four Strategic Priorities

Growth mindset
We can shape what and who we want to
become. The “hand we’ve been dealt” at
birth is only our starting point. The rest is up
to us.

SIEMENS ANNUAL REPORT 2022 7

 Key Operating and Financial data

Six Years Summary 2022 2021 2020 2019 2018 2017

(Rupees in ‘000)
Trading Results
New orders 39,320,527 22,251,029 12,508,542 15,849,831 23,612,363 11,964,608
Net turnover 21,484,209 14,348,950 12,805,375 16,672,924 19,522,120 14,552,923
Export of goods and services 467,389 412,742 243,602 301,025 277,070 122,049
Contracts executed outside Pakistan 30,331 189,842 794,936 1,360,682 3,415,066 1,918,556
Gross profit 4,989,358 2,424,641 890,448 2,502,658 3,301,949 2,434,092
Operating profit / (loss) - excluding gain on sale of
assets classified as held for sale 2,612,529 1,112,280 (55,437) 1,431,148 2,276,409 1,315,504
Gain on sale of assets classified as held for sale -
before tax - 247,851 - - - -
Profit / (loss) before tax 2,589,562 1,390,055 (226,684) 1,198,487 2,233,661 1,451,968
Profit / (loss) after tax 1,680,849 850,005 (496,015) 709,468 1,159,220 1,103,396
Earnings before interest, taxes, depreciation and
amortisation (excluding gain on sale of assets
classified as held for sale) 2,805,342 1,324,293 146,895 1,600,862 2,473,235 1,589,118
Final dividend 379,364 379,364 82,470 379,364 618,528 618,528

Financial Position
Share capital 82,470 82,470 82,470 82,470 82,470 82,470
Reserves and Retained Earnings 7,109,059 5,723,827 4,886,187 5,904,974 5,695,699 5,244,134
Property, plant and equipment 326,151 300,355 279,935 378,120 388,095 312,647
Net current assets 6,321,240 5,068,831 4,125,236 4,232,193 4,329,885 3,571,478
Long-term / deferred liabilities 491,672 642,437 858,151 90,033 170,904 68,668

Investors Information
Gross profit ratio 23.22% 16.90% 6.95% 15.01% 16.91% 16.73%
EBITDA Margin to sales 13.06% 9.23% 1.15% 9.60% 12.67% 10.92%
Return on equity / capital employed 23.37% 14.64% -9.98% 11.85% 20.06% 20.71%
Inventory turnover ratio (in times) 3.88 4.03 3.49 2.95 3.53 3.60
Inventory turnover ratio (no. of days) 94 91 105 124 104 101
Debtor turnover ratio (in times) 1.95 1.56 1.49 1.97 3.04 3.24
Debtor turnover ratio (no. of days) 187 235 244 186 120 113
Creditor turnover ratio (in times) 2.12 1.94 2.00 2.09 2.20 1.58
Creditor turnover ratio (no. of days) 172 188 183 175 166 231
Operating cycle (no. of days) 108 137 166 135 57 (17)
Total assets turnover ratio (in times) 1.05 0.90 0.85 0.97 1.20 1.00
Fixed assets turnover ratio (in times) 68.58 49.45 38.92 43.52 55.72 52.59
Current ratio 1.41 1.45 1.51 1.41 1.36 1.39
Quick / acid test ratio 1.27 1.33 1.41 1.29 1.25 1.22
Cash dividend per share (Rs) 46 46 10 46 75 75
Dividend yield ratio 0.07 0.08 0.02 0.07 0.08 0.10
Interest cover ratio 44.66 42.25 (0.27) 6.01 28.98 89.49
Breakup value per share (Rs) 872.01 704.05 602.48 726.01 700.64 645.88
Market value per share (Rs) 700 582 585 645 902 757
Share price during the year
High (Rs) 819 710 865 992 1,154 1,570
Low (Rs) 547 476 455 515 708 650
Earnings / (loss) per share (Rs) 203.81 103.07 (60.14) 86.03 140.56 133.79
Profit / (loss) before tax in percent to sales 12.05% 9.69% -1.77% 7.19% 11.44% 9.98%
Profit / (loss) after tax in percent of sales 7.82% 5.92% -3.87% 4.26% 5.94% 7.58%

Cash Flows
Net cash flow from operating activities (249,366) 2,017,041 890,897 942,633 (3,195,999) (624,268)
Net cash flow from investing activities (113,844) 176,507 (68,550) (140,220) (197,888) (28,645)
Net cash flow from financing activities (564,521) (227,405) (145,741) (616,239) (613,325) (984,662)
Net change in cash and cash equivalents (927,731) 1,966,143 676,606 186,174 (4,007,212) (1,637,575)

8 SIEMENS ANNUAL REPORT 2022

Company Information

Registered & Head Office Other Information

Siemens (Pakistan) Engineering Co. Ltd. Company Secretary
B-72 Estate Avenue, S.I.T.E., Karachi-75700 Khurram Muhammad Siddique
Phone: +92 (0)21 32574910-19
UAN: +92 (0)21 111-077-088 Auditors
http://www.siemens.com.pk EY Ford Rhodes, Chartered Accountants
Progressive Plaza, Beaumont Road
Board of Directors P.O. Box 15541, Karachi 75530
Pakistan
Chairman of the Board Phone: +9221 35650007-11
Karl Stefan Werner UAN: +9221 111-113937 (EYFR)

Non-Executive Directors Bankers

Oliver Spierling BNP Paribas (Dubai)
Adnan Afridi Citibank N.A.
Harald Griem Deutsche Bank AG
Habib Bank Limited
Independent Directors Standard Chartered Bank, UAE
Qazi Sajid Ali Standard Chartered Bank (Pakistan) Limited
Ayla Majid (Female Director)
Tax Advisor
Executive Director KPMG Taseer Hadi & Co.
Markus Strohmeier
Legal Advisor
Committees of the Board Mr. Umer Hayat
Audit Committee (Chaudhary Law Associates)
Ayla Majid (Chairwoman)
Karl Stefan Werner Registrar and Share Transfer Agent
Adnan Afridi THK Associates (Pvt.) Limited
Harald Griem Plot No. 32-C, Jami Commercial Street-2
D.H.A., Phase-VII, Karachi
Human Resource and Remuneration Pakistan
Committee UAN: +9221 111-000-322
Qazi Sajid Ali (Chairman)
Oliver Spierling Trading Symbol
Markus Strohmeier SIEM

Nomination Committee
Oliver Spierling (Chairman)
Markus Strohmeier

Management
Managing Director
Markus Strohmeier

Acting Chief Financial Officer

Syed Muhammad Ahsan Ghazali

SIEMENS ANNUAL REPORT 2022 9

 Chairman‘s / Directors‘ Profile

Stefan Werner Markus Strohmeier

Chairman Managing Director

Mr. Stefan Werner began his career with Siemens 38 years ago Mr. Strohmeier is the Managing Director of Siemens Pakistan.
where he spent 28 years working at Siemens Global and then He assumed his current role on July 1, 2020. Before that he was
later have moved to the middle east region, where as the CFO of Senior Executive Vice President, Regional Solutions and Services,
Siemens Qatar then later, Saudi Arabia. He is currently the CFO Smart Infrastructure, Siemens Middle East. Based in Dubai, UAE,
of Siemens Lead Country, UAE. He has held various leadership Mr. Strohmeier was instrumental in delivering Siemens Smart
positions throughout his career, from lead to commercial Building portfolio to EXPO2020Dubai, it’s EPC’s and country
department, to head of business segments, and a CFO to different pavilions. He supported customers in the region, like Dubai
departments and sectors within Siemens. Airports, EMAAR, MAF, WASL and many more, to build increasingly
digitalized infrastructure for smarter, safer and more energy
Mr. Werner is passionate about Siemens’ innovative solutions that efficient buildings. Between 2009 and 2017, Mr. Strohmeier was
places customers at the center and transforms their everyday, the CEO of Siemens LLC in the Sultanate of Oman, responsible
from healthcare, smart cities, to sustainable solutions. He is for developing some of the company’s most significant projects
known to bring his athletic sports spirit of healthy competition in the country, including Muscat Airport, Sohar Refinery exp.,
and teamwork to his work at Siemens. Sohar2, Barka3 and Sur IPPs with 3500 MW capacity.
Mr. Werner completed Studies of Economics with Diploma from
Mr. Strohmeier began his career with Siemens in Germany in
University Erlangen, Nuremberg in 1992
1990 for Public Communication Networks, and his assignments
have led him to Libya, Indonesia, Saudi Arabia and China. He
went on to head the Mobility and Energy Management Divisions
in Siemens Indonesia, in addition to his role as Board Member of
the same organization. During his tenure as CEO of Siemens LLC
in the Sultanate of Oman, he was directly heading the Divisions
Power and Gas, Building Technologies, Digital Factory and Process
Industries and Drives.

Mr. Strohmeier is an Electrical Engineer and graduated from

Höhere Technische Bundeslehranstalt in Klagenfurt Austria.

10 SIEMENS ANNUAL REPORT 2022

 Directors‘ Profile

Harald Griem Oliver Spierling

Director Director

Mr. Griem is currently head of Siemens Energy Assets, which Mr. Spierling is the Siemens’ General Counsel for Lead Country
mainly encompasses Siemens’ Energy businesses in Algeria, India, UAE. Mr. Spierling joined Siemens to set up the Legal Department
Indonesia and Pakistan. in UAE in 2007. Currently, he and his team focus on the Middle East
countries covering all legal topics pertaining to the business and
Mr. Griem has a Masters in Mechanical Engineering from the corporate functions.
Technische Universität, Munich, and a Doctorate in
Thermodynamics. He started his career with the house of Siemens Additionally, Mr. Spierling is CEO of Siemens Industrial Business
in 1992 at Siemens KWU, Erlangen, in the area of Boiler Technology Co. For Electrical, Electronic and Mechanical Contracting in Kuwait.
and then worked extensively in the Generation Service business
in various capacities until 2009. During the period, he held various Prior to joining Siemens, Mr. Spierling worked for a German law
roles in the Products and Service domain, handling Sales & firm in the UAE and has over 20 years of experience in the region.
Marketing, Strategic Planning, Business Development, and an He has a corporate commercial background with extensive
expanded portfolio in environmental protection. He is credited experience in M&A, Agency, and Corporate Governance.
with leading cross-functional and cross-cultural teams in Europe
and USA during various stints. In 2009, he took over as General Mr. Spierling has a master of law, having graduated from University
Manager, Generator Products (20-2,000 MW), leading a business of Hamburg in Hamburg, Germany.
with operating units in Germany, USA, China, and India.

From the Power generation space, he then moved to the High

Voltage transmission products business and took over
responsibility as Global Head for High Voltage Products.

In 2015, he moved to India as Head of the Energy Management

Division. The Division was the largest in Siemens Ltd. covering
Transmission and Distribution with 12 state of the art factories,
and enjoying market leadership in most products in the areas of
Electrification, Automation and Digitalisation. During that time,
Mr. Griem successfully brought his rich global experience to drive
the Division’s strategic growth programme in the country’s large
energy landscape.

SIEMENS ANNUAL REPORT 2022 11

 Directors‘ Profile

Adnan Afridi Qazi Sajid Ali

Director Independent Director

Mr. Adnan Afridi is at present Managing Director – National Mr. Ali worked with BASF for 29 years, which includes 8 years as
Investment Trust Limited. Director Finance and 12 years as Managing Director and Country
Head. He retired from BASF in March 2014. His educational
Mr. Afridi has over 28 years’ international experience in Change qualification is M.A., LLB. He joined Dadex Eternit Limited as Chief
Management, business transformation, innovation and Executive Officer in May 2014 and has served on the Board of
profitability enhancement in blue chip companies, public sector Dadex for 15 years, including 8 years as Chairman Audit Committee
and start-up situations. He has led a distinguished career in of Dadex. He left Dadex in June 2021.
financial services and capital markets including serving as
Member SECP Policy Board, Managing Director of the Karachi Mr. Ali has attended several training seminars / workshops / courses
Stock Exchange, CEO, Overseas Chamber of Commerce and from renowned national and international institutes and
Industry (OICCI), Chairman of National Clearing Corporation of universities which includes: Advance Management from University
Pakistan (NCCPL) and Board of Directors of Central Depository of Connecticut, USA, M-21 (Management-21st Century) from
Company (CDC). Mr. Afridi has a degree in Economics (A.B, Magna Michigan Business School, Michigan, USA, BMP (Basic Management
Cum Laude, 1992) from Harvard University and a degree in Program) from Singapore, AMP (Advance Management Program)
Corporate Law (JD, Magna Cum Laude in 1995) from Harvard Law from Singapore Executive Development Centre, USA and Hong
School. Mr. Afridi is an active supporter of charitable organizations. Kong, LS Seminars, Germany. He has represented Pakistan at the
He has served as the President of the Old Grammarians Society & I.L.O. & United Nation’s Conferences at New Delhi and Manila,
Trust and is currently Vice Chairman of the Board of Governors of International Personnel Management Conference, Washington
the Kidney Center and a member of the Board of Governors of D.C. USA & Bangkok, American Society for Training & Development
Shaukat Khanum Memorial Trust. He is also a Member of YPO (ASTD), Boston, USA, International Eye Bank Conference, Colombo,
Pakistan since 2008 and currently serving on the board of YPO- International Eye Bank Association, Washington and New York,
Gold Pakistan. USA.

Other Directorships and Offices Mr. Ali is President and Founder Member of Pakistan Eye Bank
Society which has established eye banks all over the country and
• Bank Al Habib Limited now constructed Eye and General Hospital in North Karachi. He
• Mari Petroleum Limited was elected twice as President of Pak German Business Forum. He
• International Industries Limited also held the position of President IMPA (International Personnel
• Dynea Pakistan Limited Management Association, Pakistan Chapter). He was founder
• Lotte Chemical Pakistan Limited President of German Pakistan Chamber of Commerce and Industry
• Biafo Industries Limited and remained President for 4 years.
• Bulk Transport Company (Pvt) Limited
• The Kidney Centre institute Other Directorships and Offices
• SECP Policy Board Member
• Shaukat Khanum Memorial Trust • Chairman SWAN International Pakistan (Private) Limited
• Director Pakistan Eye Bank Society
• PEBS Hospital

12 SIEMENS ANNUAL REPORT 2022

 Directors‘ Profile

Ayla Majid
Independent Director

Ms. Majid is the Founder & CEO of Planetive; and Managing

Director Financial Advisory Services at Khalid Majid Rehman
Chartered Accountants. She has over 20 years of experience in
financial advisory, mergers & acquisitions, energy transition,
infrastructure development and corporate governance. She is an
internationally acclaimed speaker and often speaks at global
platforms on: Energy Transition/Future of Energy, Emerging
Market Project Funding, Sustainable & Climate Finance, Digital
Transformation, Future of Work, Clean Tech, Governance, and
Diversity & Inclusion.

Ms. Majid is a member of the Global Future Council of Energy

Transition of the World Economic Forum; and World Economic
Forum’s Global Taskforce on Mobilizing Investment for Clean
Energy in Emerging Economies where she is contributing to the
sustainable energy transition policy, creating tools and
frameworks, and advocacy realms. In addition, she is an
Eisenhower Global Fellow 2021, and was selected as a Young
Global Leader of the World Economic Forum in 2015.

Academically, Ms. Majid holds MBA from Lahore University of

Management Sciences, LLB from University of London, and ACCA
qualification. She is also alumnus of Princeton University, Harvard
Kennedy School; University of Oxford, Nanyang Technological
University (Singapore) and National Defence University, Pakistan.
She has attended the “Enhancing Board Effectiveness, Directors
Training Programme” at the Lahore University of Management
Sciences.

Ms. Majid is at the forefront of creating agile governance

platforms while serving as board member for local and
international organizations.

Other Directorships and offices:

• Director of Abbott Laboratories (Pakistan) Limited

• Director of Govt Holdings Private Limited
• Director of TPL Insurance Limited
• Global Council Member of Association of Chartered Certified
Accountants – UK
• Member Board of Governors of The Helpcare Society (a non-
profit running “Teach a Child Schools” for under privileged
children)

SIEMENS ANNUAL REPORT 2022 13

 Chairman‘s Review Report

As we put behind us a challenging but rewarding year, I am pleased to present

the FY 2022 Annual Report to the stakeholders of Siemens Pakistan Engineering
Co. Ltd. and to comment on the Board’s effectiveness in guiding the Company
towards achievement of its aims and objectives.

The economy of Pakistan is passing through high inflationary and external

sector pressures due to higher commodity prices both in the international &
domestic market and exchange rate depreciation. Many challenges were faced
by businesses worldwide during the year including those emanating from the
Russia Ukraine conflict.

Besides above the Country is severely hit by floods which left approx. thirty
million people affected and homeless with shortage of food, water and shelter.
The Government is attempting to recuperate from the devastating situation of
the economy besides fighting with the flood aftermaths.

Further, new regulatory requirements to seek prior State Bank of Pakistan (SBP) approval for each import transaction
presents a significant challenge for the Company. However, despite all these obstacles, the team remained resilient and
agile to honour their commitments towards all the stakeholders.

An election of directors was held on January 13, 2022 to elect new board members. I express my gratitude to the
outgoing board for serving the Company to the best of their abilities. I can confirm that the current members of the
Board have extensive expertise in the areas of business management, strategy, finance, corporate governance, legal
and administration. Further, all members of the Board are cognizant of their fiduciary duty to the Company and its
shareholders and have ensured that this obligation is always kept top of mind.

During the year under review, the Board performed its duties diligently to uphold the best interests of the shareholders
of the Company. The Board continued to guide the affairs of the Company in an effective and efficient manner.

As Chairman of the Board, I affirm that all directors are encouraged to contribute and deliberate on strategic and
governance-related topics, and that inputs from the independent directors, the director representing minority
shareholders, and the directors having relevant expertise on such topics are consulted and given due consideration
before taking any decision. The Board and its Committees’ have ensured the evaluation and compensation of the Chief
Executive, Chief Financial Officer and Company Secretary as well as the evaluation of the Head of Internal Audit.

The Board has clearly defined the terms of reference of its committees, and the members are appointed after considering
their requisite skills and experience. Further, the Board and its committees met regularly during the year and exercised
their governance roles after due deliberation on each matter placed before them. The Board and its committees have
in place a formal process for annual self-evaluation, to ensure that the performance of the directors, collectively and
individually, remains highly satisfactory.

On behalf of the Board, I take this opportunity to thank our employees, shareholders, customers, and other stakeholders
for their utmost dedication, sustained support, and trust in the Company.

Sincerely,

Karl Stefan Werner

Chairman of the Board

14 SIEMENS ANNUAL REPORT 2022

Directors‘ Report

Dear Shareholders,
We, the undersigned, for and on behalf of the Board of Directors are pleased to present the Siemens (Pakistan) Engineering
Co. Ltd. (“Company”) annual report and the audited financial statements for the financial year ended September 30, 2022
(“FY 2022”), together with auditors’ report thereon.

The most recent financial year bode well for the Company. Despite, uncertain geo-political and economic situation, the
Company, with clear expectations of market and customer, did not compromise on the commitments and made a strong
societal impact by contributing in areas of intelligent infrastructure for buildings and distributed energy systems, automation
and digitalization in the process and manufacturing and power generation, transmission and distribution. Some key
performance trends on comparable basis with FY 2021 are mentioned below:

• Record new orders of Rs. 39.3 billion were recorded, as against the last year historic record of Rs. 22.3 billion. The
Energy Transmission business contributed the majority of new orders at Rs. 22.4 billion as compared to
Rs. 12.3 billion last year. A major portion of this win was contributed by energy transmission contact with K-Electric
of approximately Rs. 15.5 billion to build the KANUPP - K-Electric and Interconnection (KKI) 500/220 kV Grid Station.
Another major win in this year is the SAP license, implementation & maintenance contract for NTDC of Rs. 2.2 billion
recorded by our Digital Industries business.

• On account of healthy order backlog from last year, the Sales for the year increased by 50% or approximately
Rs.7.1 billion as compared to FY 2021 despite multiple challenges including logistics bottlenecks coupled with central
bank restrictions on imports in view of precarious foreign exchange position of the country. The sales revenue was
led by Energy Transmission business, which recorded an increase of Rs 4.1 billion as compared to FY 2021.

• For the year, the Company posted an overall profit before tax of Rs. 2.6 billion which includes a significant part from
unrealized gain recorded on measurement of foreign currency embedded derivatives amounting to Rs 1.5 billion. The
value of unrealized gain is highly sensitive to the movement of Pakistan Rupee in subsequent periods. Further, the
Company’s profitability was adversely impacted by the expected credit losses recognized during the year aggregating
Rs. 871 million owing mainly due to peculiar geopolitical / regional factors in Energy Transmission Business.

An overview of the key indicators is presented here:

Key Performance Indicators FY 2022 FY 2021
Rupees in millions
Net sales and services 21,484 14,349
Operating profit 2,613 1,360
Profit before income tax 2,590 1,390
Net profit for the year 1,681 850
Earnings per share (Rupees) 203.81 103.07

Appropriations
Following is the summary of appropriations made during FY 2022:
(Rupees in millions)
Accumulated profits as at October 1, 2021 856
Net profit after taxation for FY 2022 1,681
Final dividend of Rs. 46 (460%) per share for FY 2021 (379)
Accumulated profits as at September 30, 2022 2,158

For details of movement in other reserves please refer to Statement of Changes in Equity in the financial statements.

Dividend
Keeping in view the Company’s financial performance and future cash flow requirements, the Board is pleased to recommend
a final cash dividend of Rs. 46 per ordinary share.

SIEMENS ANNUAL REPORT 2022 15

 Directors‘ Report

Company Principle Activities and Business Segments

The Company operates through the business portfolios Smart Infrastructure, Digital Industries and Siemens Energy focusing
on the areas of power generation and distribution, smart grids and smart buildings, and automation and digitalization in the
process and manufacturing landscape.

Smart Infrastructure intelligently connects energy systems, buildings and industries to enhance the way we live and work
through greater efficiency and sustainability. Digital Industries helps its customers unlock their full potential as a partner
providing cutting-edge technologies for the automation and digitalization of discrete and process industries. The Siemens
Energy value chain includes generation, transmission, new energy business, industrial applications and renewables.

Risks, Uncertainties and Mitigations

The Company is exposed, inter alia, to the following general risks which are mitigated through specific response plans:

A) Operational risks
The operational risks are related to project management (such as timely completion of the projects and change in
estimates/plan costs), EHS, and supply chain management.

The Company addresses these risks in the course of its business by dedicating resources with requisite skills and
expertise. The management determines risk response strategies for such risks, which include an “avoid, transfer, reduce,
or accept” strategy.

B) Financial risks
Financial risk has been described in detail in note 52 of the attached financial statements that include market, credit, and
liquidity risks.

C) Compliance risk
The Company has a zero-tolerance policy for non-compliant activities and behaviors. The Company further understands
that non-compliance with laws and regulations may result in imposition of penalties, debarment, black-listing, license
cancellation, etc. To mitigate such risks, the Company has implemented a very comprehensive and effective compliance
function.

Further, the Business Conduct Guidelines (BCG) clearly define the Company’s expectations from all directors, executives
and employees of the Company and from those with whom it conducts business. The Company encourages employees
and business partners to report compliance violations that they encounter with confidence that there will be no adverse
consequences for doing so. To facilitate the process, various reporting channels, such as the compliance helpdesk
“Tell Us”, have been established on the Company’s website.

Environment, Health, and Safety (EHS)

Protecting the environment, conserving our natural resources, fostering the health and performance of our employees, as
well as safeguarding their working conditions are core to our social and business commitment at Siemens. The challenges
posed by the pandemic has led the Company to adopt the ‘New Normal’ to answer the challenges of our time and to improve
the quality of life for generations to come.

In this regard, beginning this fiscal year, we have focused on the importance of the Degree Framework and Siemens EHS
Essentials such as electrical safety, well-being of our employees and road safety. It constitutes a 360-degree approach for all
stakeholders – our customers, our suppliers, our investors, our people, the societies we serve, and our planet. These topics
remain crucial in our effort to achieve Zero Harm Culture and “Healthy and Safe@Siemens“, which remain crucial EHS aspects.
We firmly believe that ensuring and behaving in a safe manner demonstrates discipline, which in turn leads to sustainable
development.

16 SIEMENS ANNUAL REPORT 2022

 Directors‘ Report

Corporate Social Responsibility

Good corporate citizenship has been an integral component of the Company philosophy since Werner von Siemens founded
the company in 1847. We have three focus areas for our corporate citizenship- work: Access to Technology, Access to Education
and Sustaining Communities. They emerged from our business strategy, core competencies, global targets for the betterment
of society, global megatrends (Demographics, urbanization, climate change, globalization, and digitalization), and stakeholder
dialogue. Our activities in Corporate Citizenship also contribute to advances in the SDGs across the board. Siemens attaches
great importance on environmental and climate protection undertaking an ongoing program to encourage its employees to be
more responsible in using resources.

As in previous years, in FY 2022 the Company has continued to work closely with the following organizations for fulfilling its
Social responsibility:
• Khubaib Foundation
• The Citizens Foundation (TCF)
• Indus Hospital & Health Network

Further, during the year the Company has contributed towards several social initiatives including engaging in relief activities
for flood activities, fostering health and well-being of employees and promoting secure and clean environment.

For details, please refer to the Sustainability and Corporate Citizenship section of the Annual Report.

Adherence to best practices of Corporate Governance

The Company is determined to meet and, wherever possible, exceed all legal and ethical requirements and to conduct all
business according to the highest standards and practices. The Board defines a path of continuous improvement by constantly
challenging existing processes. It also requires the Company to embrace change so that the Company is well-positioned when
new opportunities arise. This also means attracting the best talent in the marketplace and providing them with the skills and
opportunities required to excel.

For the purpose of clause 5.6.4. of the Rulebook of PSX, the Board has defined the expression “executives” to mean Managing
Director, Chief Financial Officer, Company Secretary, all direct reports of MD, CFO, and Company Secretary, relevant CFR staff
involved in closing and reporting activities, and all employees whose basic salary exceeds PKR 3.6 million in a financial year.

Composition of the Board and its Committees and number of Meetings and
attendance during the Financial Year
Composition of the Board and its committees, number of meetings of the Board and its committees, and attendance therein,
is as follows:
Human
Nomination
Resource and
Board Meeting Audit Meeting Meeting
Composition Remuneration
held/ Attended held/ Attended held/
Meeting held/
Attended
Attended
Mr. Manuel Kuehn* Non-Executive Director 2/2 2/2 N/A N/A
Mr. Markus Strohmeier MD - Executive Director 5/5 N/A 3/3 1/1
3/3
Mr. Qazi Sajid Ali Independent Director 5/5 N/A N/A
(Chairman)
Mr. Oliver Spierling Non-Executive Director 5/5 N/A 3/3 1/1
4/4
Ms. Ayla Majid Independent Director 5/5 N/A N/A
(Chairwoman)
Mr. Harald Griem Non-Executive Director 5/5 4/4 N/A N/A
Mr. Karl Stefan Werner** Non-Executive Director 3/3 2/2 N/A N/A
Mr. Adnan Afridi Non-Executive Director 4/4 3/3 N/A N/A
* Mr. Manuel Kuehn has resigned w.e.f. April 21, 2022
** Mr. Karl Stefan Werner was appointed to the Board of Directors and Audit Committee w.e.f. May 10, 2022 in place of Mr. Manuel Kuehn.

SIEMENS ANNUAL REPORT 2022 17

 Directors‘ Report

Directors’ Statements
We are pleased to state that:

a) The financial statements, prepared by the management of the Company, fairly represent its state of affairs, including the
result of its operations, cash flows and changes in equity;
b) Proper books of account have been maintained by the Company;
c) Appropriate accounting policies have been consistently applied in preparation of financial statements;
d) The accounting estimates are based on reasonable and prudent judgment.
e) International Accounting Standards (IAS) and International Financial Reporting Standards (IFRSs), as applicable in
Pakistan, have been followed in preparation of financial statements.
f) The system of internal control, including internal controls over financial reporting, is sound in design and has been
effectively implemented and monitored.
g) There are no significant doubts upon the Company’s ability to continue as a going concern; and
h) There has been no material departure from the best practices of corporate governance, as detailed in the Listed Companies
(Code of Corporate Governance) Regulations, 2019.

Statement of Compliance
The Company strictly adheres to the principles of corporate governance and has implemented all prescribed stipulations. The
same have been summarized in the enclosed statement of compliance with Listed Companies (Code of Corporate Governance)
Regulations, 2019 duly reviewed by the external auditors.

Directors’ Remuneration Policy

The Board has approved a Directors’ Remuneration Policy, which describes in detail the policy’s objectives and a transparent
procedure for determination of the remuneration packages of individual directors for attending meetings of the board and its
committees. Salient features, amongst others, of the Directors’ Remuneration Policy are as follows:

• Level of remuneration shall be commensurate with the needs of the business, strategic alignment and the best interests
of the Company and its shareholders.
• Level of remuneration shall be as per market practice of comparable companies/industry.
• While determining remuneration, no discrimination shall be made based on gender.
• Remuneration shall be sufficient to attract and retain qualified and skilled individuals on the board to govern the Company
successfully.
• Remuneration shall justify the time and expertise that is required to be spent by the directors to fulfil their responsibilities.
• Remuneration shall be sufficient to encourage value addition.
• Remuneration shall not be at a level that could be perceived to compromise the independence of the directors.
• Managing Director/Chief Executive Officer, Executive Director and Directors representing the majority shareholder will not
be entitled to any remuneration in accordance with the Articles of Association of the Company.
• Remuneration will be fixed for the entire term of the Board prior to each election of the directors (once every three years).
• Recommendation from Independent Consultant on level of remuneration to be fixed should be obtained for benchmarking.

Directors’ Remuneration
Details of aggregate amount of remuneration separately of executive and non-executive directors are disclosed in note 46 to
the financial statements.

18 SIEMENS ANNUAL REPORT 2022

 Directors‘ Report

Evaluation of the Board’s Performance

The Board has approved a formal policy and a process has been put in place for conducting annual performance evaluation of
the Board and its committees. The purpose of the evaluation is to ensure that the Board’s performance is measured with
reference to overall corporate objectives, governance structure of the Company, statutory and regulatory compliance,
effectiveness, collaboration and value addition. Performance evaluation for FY 2022 was conducted as per the process
approved by the Board, and overall performance and effectiveness of the Board is categorized as “strong”. All members of the
Board participated in performance evaluation and provided their feedback.

Composition of Board of Directors

The total number of directors is seven (7) as per the following:
• Male: Six (6)
• Female: One (1)

The composition of the Board is as follows:

Category Names
Independent Directors Mr. Qazi Sajid Ali
Ms. Ayla Majid
Non-Executive Directors Mr. Adnan Afridi
Mr. Oliver Spierling
Mr. Manuel Kuehn*
Mr. Karl Stefan Werner**
Mr. Harald Griem
Executive Director Mr. Markus Strohmeier
* Mr. Manuel Kuehn has resigned w.e.f. April 21, 2022
** Mr. Karl Stefan Werner was appointed to the Board of Directors and Audit Committee w.e.f. May 10, 2022 in place of Mr. Manuel Kuehn.

External Auditors
The current auditors, EY Ford Rhodes, Chartered Accountants (a member firm of Ernst & Young Global Limited) retire at the
conclusion of the upcoming Annual General Meeting, and being eligible, offer themselves for reappointment.

As recommended by the Audit Committee, the Board recommends their reappointment at a total remuneration of
Rs. 7.6 million (exclusive of sales tax) for FY 2023.

Corporate Status
The Company is a subsidiary of Siemens Aktiengesellschaft, Germany (Siemens AG), which is incorporated under the laws of
the Republic of Germany and holds 74.65% shares of the Company as at September 30, 2022.

Pattern of Shareholding
The Company is listed on Pakistan Stock Exchange Limited. The detailed pattern and categories of its shareholding including
shares held by directors and executives, if any, are annexed to the Annual Report.

SIEMENS ANNUAL REPORT 2022 19

 Directors‘ Report

Investments in retirement benefits

The Company maintains provident and gratuity funds for its permanent employees, which are regulated through the respective
board of trustees. The value of investments of these funds as per their respective audited financial statements, are as follows:

Rupees in millions
June 30, 2021 June 30, 2020 June 30, 2019
Provident Fund 669.301 574.432 499.715

September 30, 2021 September 30, 2020 September 30, 2019

Gratuity Fund 217.215 209.278 201.108

Post Balance Sheet Non-Adjusting Events and Significant Developments

during FY 2022
There have been no material changes or events from September 30, 2022, to the date of this report, which have an impact on
the financial statements, except for the following:

• The Board of Directors of the Company in their meeting held on October 4, 2022, approved, in principle, the sale of the
Company’s ERP value added reselling solution and service business. The sale is subject to applicable regulatory approvals;
and

• declaration of final dividend, which is subject to the approval of the Members of the Company at the forthcoming
Annual General Meeting, the effect of which will be reflected in the FY 2023 financial statements.

The Company’s Future Outlook

Despite two strong consecutive years the Board and management of the Company continues to closely monitor significant
risks that can impede the pace of progress including the political and economic situation of the country. New regulatory
requirements to seek prior State Bank of Pakistan (SBP) approval for each import transaction presents a significant challenge
for the Company. There is a risk that this situation may impact the Company’s ability to timely procure the machinery and
equipment required for execution of its orders in transmission and electrification & automation businesses. We are in close
coordination with our partner banks to mitigate the anticipated delays to the best extent possible given the position of
Country’s foreign exchange reserves. Further, the rapid devaluation of the currency over the past year is negatively impacting
economy.

While the Company has delivered good financial results for the year, future growth is heavily dependent upon improvement of
the economic situation. The Company is placed on a good footing for the upcoming year. With a solid backlog for revenue and
pipeline for sustained performance, the Company is optimistic for FY 2023 if the economic situation of the country is stabilized.
We continue to closely monitor the situation to ensure that appropriate decisions are taken to safeguard our business.

20 SIEMENS ANNUAL REPORT 2022

 Directors‘ Report

Acknowledgement
We take this opportunity to thank our valued customers who have continued to place trust in our products and services and
have provided sustained support in ensuring the progress of the Company. The Company is very proud of its employees for
their committed and passionate efforts, loyalty and dedication. We also greatly value the support and cooperation of all
stakeholders who are contributing towards the growth of our Company.

We would also like to extend our sincerest gratitude to our shareholders for the confidence and trust they have placed in us,
and for their unwavering support.

On behalf of the Board

Qazi Sajid Ali Markus Strohmeier

Director Managing Director

Karachi, November 24, 2022

Notes and Forward Looking Statement

This document contains statements related to our future business and financial performance and future events or developments
that may constitute forward-looking statements. These statements may be identified by words such as “expect,”
“look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. We
may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders. Such
statements are based on the current expectations and certain assumptions of management, of which many are beyond
Siemens’ control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described
in this report. Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur or
assumptions prove incorrect, actual results, performance or achievements may (negatively or positively) vary materially from
those described explicitly or implicitly in the relevant forward-looking statement. Siemens’ neither intends, nor assumes any
obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided
and percentages may not precisely reflect the absolute figures.

SIEMENS ANNUAL REPORT 2022 21

 Board Committees

Terms of Reference of Audit Committee 11. Instituting special projects, value for money studies or other
investigations on any matter specified by the board of directors,
The Terms of Reference for the Audit Committee shall be as follows: in consultation with the chief executive officer and to consider
remittance of any matter to the external auditors or to any
1. Determination of appropriate measures to safeguard the other external body;
company’s assets;
12. Determination of compliance with relevant statutory require-
2. Review of annual and interim financial statements of the ments;
company, prior to their approval by the Board of Directors,
focusing on: 13. Monitoring compliance with the regulations and identification
(i) major judgmental areas; of significant violations thereof;
(ii) significant adjustments resulting from the audit;
(iii) going concern assumption; 14. Review of arrangement for staff and management to report to
(iv) any changes in accounting policies and practices; audit committee in confidence, concerns, if any, about actual
(v) compliance with applicable accounting standards; or potential improprieties in financial and other matters and
(vi) compliance with these regulations and other statutory recommend instituting remedial and mitigating measures;
and regulatory requirements; and
(vii) all related party transactions. 15. Recommend to the board of directors the appointment of
external auditors, their removal, audit fees, the provision of
3. Review of preliminary announcements of results prior to any service permissible to be rendered to the company by the
external communication and publication; external auditors in addition to audit of its financial statements.
The board of directors shall give due consideration to the
4. Facilitating the external audit and discussion with external recommendations of the audit committee and where it acts
auditors of major observations arising from interim and final otherwise it shall record the reasons thereof; and
audits and any matter that the auditors may wish to highlight
(in the absence of management, where necessary); 16. Consideration of any other issue or matter as may be assigned
by the board of directors.
5. Review of management letter issued by external auditors and
management’s response thereto;

6. Ensuring coordination between the internal and external

auditors of the company;

7. Review of the scope and extent of internal audit, audit plan,

reporting framework and procedures and ensuring that the
internal audit function has adequate resources and is
appropriately placed within the company;

8. Consideration of major findings of internal investigations of

activities characterized by fraud, corruption and abuse of
power and management‘s response thereto;

9. Ascertaining that the internal control systems including

financial and operational controls, accounting systems for
timely and appropriate recording of purchases and sales,
receipts and payments, assets and liabilities and the reporting
structure are adequate and effective;

10. Review of the company’s statement on internal control systems

prior to endorsement by the board of directors and internal
audit reports;

22 SIEMENS ANNUAL REPORT 2022

Terms of Reference of Human Resources and Terms of Reference of the Nomination
Remuneration Committee Committee

The Terms of Reference for the Human Resource and Remuneration The Terms of Reference for the Nomination Committee shall be as
Committee shall be as follows: follows:

1. Recommend to the board for consideration and approval of a 1. Responsible for considering and making recommendations to
policy framework for determining remuneration of directors the Board in respect of the Board committees and the
(both executive and non-executive directors and members of chairmanship of the Board committees.
senior management). The definition of senior management
will be determined by the board which shall normally include 2. Responsible for keeping the structure, size and composition of
the first layer of management below the chief executive officer the Board under regular review and for making
level; recommendations to the Board with regard to any changes
necessary.
2. Undertaking annually a formal process of evaluation of
performance of the board as a whole and its committees either 3. Any other matter which is ancillary to the TOR mentioned
directly or by engaging external independent consultant and above.
if so appointed, a statement to that effect shall be made in the
directors’ report disclosing name, qualifications and major In case of any conflict in the Terms of Reference of the Nomination
terms of appointment; Committee with the terms of the Human Resource and
Remuneration Committee, the matter shall be referred to the Board
3. Recommending human resource management policies to the of Directors for decision.
board;

4. Recommending to the board the selection, evaluation,

development, compensation (including retirement benefits)
of chief operating officer, chief financial officer, company
secretary and head of internal audit;

5. Consideration and approval on recommendations of chief

executive officer on such matters for key management
positions who report directly to chief executive officer or chief
operating officer; and

6. Where human resource and remuneration consultants are

appointed, their credentials shall be known by the committee
and a statement shall be made by them as to whether they
have any other connection with the company.

SIEMENS ANNUAL REPORT 2022 23

Sustainability and
Corporate Citizenship
at Siemens
 Sustainability and Corporate Citizenship at Siemens

Sustainability at Siemens Corporate Citizenship at Siemens Pakistan

As in the previous years, in FY 2022 Siemens Pakistan has

continued to work closely with Organizations like Khubaib
Foundation, The Citizens Foundation (TCF) & Indus Hospital
& Health Network for fulfilling its social responsibility.

Khubaib Foundation

As a sustainable company, we aim to ensure profitable,

long-term growth, lasting value for all our stakeholders,
and a positive impact on the economy, society, and the
environment. We are convinced that sustainability, with its
various challenges throughout the world, creates many
new business opportunities for Siemens. Managing
sustainability within Siemens includes both the sustainable
development of Siemens and of the countries and societies
in which we operate, as well as the environment. It comes
down to do business in a responsible manner by evaluating Khubaib Foundation is committed to quality care and
business decisions at an early stage so that possible risks education of orphan children for which state of the art
can be mitigated responsibly, and potential opportunities hostel facilities and schools/Colleges have been established
can be supported. This is a company-wide endeavor that is at Skardu, Gilgit, Rara, (Muzaffarabad AJ&K), Haripur,
embedded in our business purpose, our corporate culture, Sargodha, Rawalpindi, Islamabad, and Muzaffargarh. There
our code of business conduct (Business Conduct Guidelines). is no alternative to home, but efforts are made to create a
Our decisions and activities are designed to create long- homely atmosphere by providing all essential facilities in
term value for present and future generations. the hostels. Over 1,250 Orphans and other 5,000 deserving
students are getting an education on regular basis.
Corporate Citizenship at Siemens
Philosophy of education hinges on three core components
Good corporate citizenship has been an integral component Academic, Spiritual and Physical Training. Siemens Pakistan
of the Company philosophy since Werner von Siemens has joined Khubaib Foundation in their mission to patronize
founded the company in 1847. We have three focus areas deserving children and to see them grow up as good
for our corporate citizenship Access to Technology, Access citizens and useful members of the society, leading a
to Education and Sustaining Communities. They emerged dignified and prosperous life.
from our business strategy, core competencies, global
targets for the betterment of society, global megatrends
(Demographics, urbanization, climate change, globalization,
and digitalization), and stakeholder dialogue. Our activities
in Corporate Citizenship also contribute to advances in the
SDGs across the board.

26 SIEMENS ANNUAL REPORT 2022

 13,000 teachers and principals, and over 17,400 employees.
Flood Relief Support
Approximately 94% of the Foundation‘s expenditure is
allocated to the Education program.

TCF has also played an active role in the recent catastrophe,

many of its schools were flooded or served as refuge for
displaced families; scores of students, staff members and
neighbors who had lost their homes and livelihoods and
needed massive contribution to deal with the situation.
Siemens Pakistan as part of its commitment to the society,
played part in alleviating the catastrophic situation in the
country by supporting TCF in the flood relief drive.

Since mid-June 2022, Pakistan has been hit by the torrential Indus Hospital & Health Network
monsoon rains that has resulted in massive floods in most
parts of the country. According to official figures provided
by National Disaster Management Authority, Pakistan
(NDMA) the massive floods have so far claimed around
1,033 lives and injured 1,527 people. The estimated
number of affected people is around 30 million, and around
1 million houses are totally or partially damaged leaving
behind millions in need of urgent shelter and other life’s
essentials.

As part of our commitment to benefit and contribute to the

society, we are determined to play our part in alleviating
the current catastrophic situation in the country. To address IHHN is providing emergency medical aid to the flood-
the issue Siemens Pakistan collaborated with following affected community in all over Pakistan, along with
NGOs to cater to immediate needs of the people. essential medicines, primary healthcare, and an array of
medical services, the units provide continuous counseling
to the displaced population who are suffering from a
The Citizen Foundation
barrage of illnesses, including mental health issues, malaria,
diarrhea, skin infections, urinary tract Infections, acute
respiratory infections, and gastroenteritis. Siemens feels a
social responsibility to help flood victims and stand side by
side in their hardships.

To support people in dire need and to accomplish our

commitment to corporate citizenship, employees of
Siemens Pakistan arranged a collection drive at all three
locations of Siemens premises. Employees donated cash
and other essential items like clean clothing, Non-perishable
food items, clean drinking water, Medicines, blankets,
TCF is a non-profit organization, and one of the largest hygiene kits and tents.
privately owned networks of low-cost formal schools in
Pakistan. The Foundation operates a network of 1,833 Charitable association, Siemens Caring Hands also
school units, educating 280,000 students through over supported Indus hospital in the flood relief campaigns.

SIEMENS ANNUAL REPORT 2022 27

Financial Report 2022
 EY Ford Rhodes UAN: +9221 111 11 39 37 (EYFR)
Chartered Accountants Tel: +9221 3565 0007-11
Progressive Plaza, Beaumont Road Fax: +9221 3568 1965
P.O. Box 15541, Karachi 75530 [email protected]
Pakistan ey.com/pk

INDEPENDENT AUDITORS’ REVIEW REPORT

To the members of Siemens (Pakistan) Engineering Co. Ltd. (the Company)

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 Siemens (Pakistan) Engineering Co. Ltd. for
the year ended 30 September 2022 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 30 September 2022.

Chartered Accountants
Place: Karachi
Date: 06 December 2022
UDIN: CR202210120aNKlwSC16

A member firm of Ernst & Young Global Limited

30 SIEMENS ANNUAL REPORT 2022

Statement of Compliance with Listed Companies
(Code of Corporate Governance) Regulations, 2019
Siemens (Pakistan) Engineering Co. Ltd.
For the year ended September 30, 2022

The Company has complied with the requirements of the Listed Companies (Code of Corporate Governance) Regulations, 2019
(here-in-after referred as ‘Code’) in the following manner:

1. The total number of directors is seven (07) as per the following:

• Male: Six (06)

• Female: One (01)

2. The composition of the Board is as follows:

Category Name
Independent Directors Mr. Qazi Sajid Ali
Ms. Ayla Majid (Female Director)
Non-Executive Directors Mr. Adnan Afridi
Mr. Oliver Spierling
Mr. Stefan Werner
Mr. Harald Griem
Executive Director Mr. Markus Strohmeier

NOTE: For the purpose of the rounding up of the fraction, the Company has not rounded up the fraction as one,
since as it currently stands, the Board has adequate skill set.

3. The directors have confirmed that none of them is serving as a director on more than seven listed companies, including
this Company.

4. The Company has prepared a Code of Conduct called “Business Conduct Guidelines” and has ensured that appropriate
steps have been taken to disseminate it throughout the Company along with its supporting policies and procedures.

5. The Board has developed a vision/mission statement, overall corporate strategy and significant policies of the Company.
The Board has ensured that complete record of particulars of the significant policies along with their date of approval or
updating is maintained by the Company.

6. All the powers of the Board have been duly exercised and decisions on relevant matters have been taken by Board /
shareholders as empowered by the relevant provisions of the Companies Act, 2017 and these Regulations.

7. The meetings of the Board were presided over by the Chairman. The Board has complied with the requirements of
Companies Act, 2017 and these Regulations with respect to frequency, recording and circulating minutes of meeting of
the Board.

8. The Board has a formal policy and transparent procedures for remuneration of directors in accordance with the Act and
these Regulations.

9. Five directors are duly certified from approved institutions as per the Directors’ Training requirements.

10. The Board has approved the appointment of Head of internal audit including her remuneration and terms and conditions
as well as change in remuneration of Chief Financial Officer and Company Secretary. The Board has complied with relevant
requirements of the Regulations.

11. Chief Financial Officer and Chief Executive Officer duly endorsed the financial statements before approval of the Board.

SIEMENS ANNUAL REPORT 2022 31

 12. The Board has formed following Committees comprising of members given below:

Members of Audit Committee Designation

Ms. Ayla Majid Chairwoman (Independent Director)
Mr. Adnan Afridi Non-Executive Director
Mr. Stefan Werner Non-Executive Director
Mr. Harald Griem Non-Executive Director

Members of Human Resource and Remuneration Committee Designation

Mr. Qazi Sajid Ali Chairman (Independent Director)
Mr. Oliver Spierling Non-Executive Director
Mr. Markus Strohmeier Executive Director

Members of Nomination Committee Designation

Mr. Oliver Spierling Chairman (Non-Executive Director)
Mr. Markus Strohmeier Executive Director

13. The terms of reference of the aforesaid Committees have been formed, documented and advised to the Committees for
compliance.

14. The frequency of meetings of the Committees were as per following:

a. Audit Committee: Four quarterly meetings during FY 2022 ended 30 September 2022

b. Human Resource and Remuneration Committee: Three meetings during FY 2022 ended 30 September 2022

c. Nomination Committee: One meeting during FY 2022 ended 30 September 2022

15. The Board has outsourced the internal audit function to Siemens AG who are considered suitably qualified and experienced
for the purpose and are conversant with the policies and procedures of the Company.

16. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the Quality
Control Review program of the Institute of Chartered Accountants of Pakistan and registered with Audit Oversight Board
of Pakistan, that they and all their partners are in compliance with International Federation of Accountants (IFAC)
guidelines on code of ethics as adopted by the Institute of Chartered Accountants of Pakistan and that they and the
partners of the firm involved in the audit are not a close relative (spouse, parent, dependent and non-dependent children)
of the Chief Executive Officer, Chief Financial Officer, Head of Internal Audit, Company Secretary or Directors of the
Company.

17. The statutory auditors or the persons associated with them have not been appointed to provide other services except in
accordance with the Companies Act, 2017, the Codes or any other regulatory requirement and the auditors have confirmed
that they have observed IFAC guidelines in this regard; and

18. We confirm that all requirements of regulations 3, 6, 7, 8, 27, 32, 33 and 36 of the Listed Companies (Code of Corporate
Governance), 2019 have been complied with.

Karl Stefan Werner Markus Strohmeier

Chairman of the Board Managing Director

32 SIEMENS ANNUAL REPORT 2022

 EY Ford Rhodes UAN: +9221 111 11 39 37 (EYFR)
Chartered Accountants Tel: +9221 3565 0007-11
Progressive Plaza, Beaumont Road Fax: +9221 3568 1965
P.O. Box 15541, Karachi 75530 [email protected]
Pakistan ey.com/pk

INDEPENDENT AUDITORS’ REPORT

To the members of Siemens (Pakistan) Engineering Co. Ltd.

Report on the Audit of Financial Statements

Opinion

We have audited the annexed financial statements of Siemens (Pakistan) Engineering Co. Ltd. (the Company),
which comprise the statement of financial position as at 30 September 2022, and the statement of profit or loss, the
statement of comprehensive income, the statement of cash flows, the statement of changes in equity 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, the statement of profit or loss, the statement of 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 30 September 2022 and of the profit, other comprehensive income, 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 Auditors’ 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 member firm of Ernst & Young Global Limited

SIEMENS ANNUAL REPORT 2022 33

 Following is the key audit matter:

Key audit matter How our audit addressed the key audit matter
Accounting for construction and engineering contracts
The Company earns a significant portion of its revenue Our key audit procedures amongst others included the
from construction and engineering contracts which is following:
recognized in accordance with IFRS 15 ‘Revenue from
Contracts with Customers’, generally over the time under We obtained an understanding of the Company’s processes
the percentage-of-completion method. and tested the design and operating effectiveness of
controls for project management in the bid and execution
The recognition of revenue on construction and phase of construction and engineering contracts including
engineering contracts, therefore, involves significant project reviews and controls addressing the timely
estimate with respect to stage of completion of contracts assessment of changes in cost estimates and complete /
and measurement of the amount of revenue considering timely recognition of such changes in project calculation.
the scope of deliveries, total estimated contract costs,
remaining costs to completion and total estimated contract We evaluated management’s estimates and assumptions
revenues etc. and its allocation to various components of of a sample of contracts by inspecting the terms and
performance obligation. In addition, revenues, total conditions of the contracts selected including contractually
estimated contract costs and profit recognition may deviate agreed milestones. Further, we also carried out inquiries of
significantly from original estimates based on new project management with respect to the development and
knowledge about the cost overruns and changes in project amendments of the projects, reasons for deviations
scope over the term of a contract. between planned and actual costs, and the current
estimated costs to complete the contracts.
We have identified this as a key audit matter due to
involvement of significant management’s estimate and We checked whether revenue was recognized in the correct
judgements in the determination of percentage-of- accounting period for the sample of projects selected for
completion and related revenue recognition. testing. We analyzed billable revenues and corresponding
cost of sales to be recognized considering the extent of
Refer notes 2.4, 3.15, 11, 20, 23, 24 and 30 to the financial progress towards completion and examined the accounting
statements. for the associated items in the statement of financial
position.

We considered the adequacy of the Company’s disclosures

in accordance with applicable financial reporting
framework in Pakistan.

A member firm of Ernst & Young Global Limited

34 SIEMENS ANNUAL REPORT 2022

Information Other than the Financial Statements and Auditors’ 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 auditors’ 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.

Auditors’ 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 auditors’ 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.

A member firm of Ernst & Young Global Limited

SIEMENS ANNUAL REPORT 2022 35

 • 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 auditors’ 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 auditors’ 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 auditors’ 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 comprehensive income, the
statement of cash flows and the statement of changes in equity together with the notes thereon have been
drawn up in conformity with the Companies Act, 2017 (XIX of 2017) and are in agreement with the books of
account and returns;

c) investments made, expenditure incurred and guarantees extended during the year were for the purpose of the
Company’s business; and

d) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the
Company and deposited in the Central Zakat Fund established under Section 7 of that Ordinance.

The engagement partner on the audit resulting in this independent auditors’ report is Omer Chughtai.

Chartered Accountants
Place: Karachi
Date: 06 December 2022
UDIN: AR202210120N5Kf7TPIV

A member firm of Ernst & Young Global Limited

36 SIEMENS ANNUAL REPORT 2022

Siemens (Pakistan) Engineering Co. Ltd.
Statement of Financial Position
As at September 30, 2022
2022 2021
Note (Rupees in ‘000)
Equity and liabilities

Share capital and reserves

Share capital
- Authorised
20,000,000 (2021: 20,000,000) Ordinary shares of Rs 10 each 200,000 200,000

- Issued, subscribed and paid-up 5 82,470 82,470

Reserves
Capital 6 624,192 624,192
Revenue 6 6,484,867 5,099,635
7,109,059 5,723,827
Total equity 7,191,529 5,806,297

Non-current liabilities
Long-term financing 7 - 31,441
Lease liabilities 8 48,307 80,324
Deferred liabilities 9 440,103 527,637
Retention money 3,262 3,035
491,672 642,437
Current liabilities
Trade and other payables 10 8,970,865 6,613,861
Contract liabilities 11 5,205,139 3,666,606
Current portion of non-current liabilities 12 66,240 170,958
Provisions 13 649,152 541,728
Taxation - net 14 574,729 329,418
Unclaimed dividend 28,892 33,380
15,495,017 11,355,951

Total liabilities 15,986,689 11,998,388

Contingencies and commitments 16

Total equity and liabilities 23,178,218 17,804,685

Assets

Non-current assets
Property, plant and equipment 17 326,151 300,355
Right-of-use assets 18 68,339 99,958
Long-term loans and trade receivables 20 609,767 396,636
Long-term prepayments 830 3,042
Deferred tax asset - net 21 356,874 579,912
1,361,961 1,379,903
Current assets
Inventories 22 2,165,764 1,352,302
Trade receivables 23 11,641,930 10,354,705
Contract assets 24 3,424,503 1,553,222
Loans and advances 25 490,183 129,788
Deposits and short-term prepayments 26 522,588 104,241
Derivative financial instruments 27 1,780,775 245,355
Other receivables 28 315,934 282,858
Cash and bank balances 29 1,474,580 2,402,311
21,816,257 16,424,782

Total assets 23,178,218 17,804,685

The annexed notes 1 to 58 form an integral part of these financial statements.

Markus Strohmeier Syed Muhammad Ahsan Ghazali Qazi Sajid Ali

Managing Director Chief Financial Officer Director

SIEMENS ANNUAL REPORT 2022 37

 Siemens (Pakistan) Engineering Co. Ltd.
Statement of Profit or Loss
For the year ended September 30, 2022

2022 2021
Note (Rupees in ‘000)

Net sales and services 30 21,484,209 14,348,950

Cost of sales and services 31 (16,494,851) (11,924,309)
Gross profit 4,989,358 2,424,641
17%
Marketing and selling expenses 32 (1,004,699) (828,269)
Allowance for expected credit losses 33 (871,479) (149,946)
General administrative expenses 34 (340,533) (313,909)
(2,216,711) (1,292,124)
-9%
Gain on disposal of assets classified as held for sale - 247,851
Other income 35 32,252 65,075
Other operating expenses 36 (192,370) (85,312)
Net other (operating expenses) / income (160,118) 227,614
Operating profit 2,612,529 1,360,131
9%
Financial income 37 36,351 63,621
Financial expenses 38 (59,318) (33,697)
Net finance (expense) / income (22,967) 29,924
Profit before income tax 2,589,562 1,390,055
10%
Income tax 39 (908,713) (540,050)
Net profit for the year 1,680,849 850,005

Basic and diluted earnings per share (Rupees) 40 203.81 103.07

The annexed notes 1 to 58 form an integral part of these financial statements.

Markus Strohmeier Syed Muhammad Ahsan Ghazali Qazi Sajid Ali

Managing Director Chief Financial Officer Director

38 SIEMENS ANNUAL REPORT 2022

Siemens (Pakistan) Engineering Co. Ltd.
Statement of Comprehensive Income
For the year ended September 30, 2022

2022 2021
(Rupees in ‘000)

Net profit for the year 1,680,849 850,005

Other comprehensive income for the year that will not be reclassified
to statement of profit or loss in subsequent periods:

Recognition of remeasurement gain on defined benefit plan 107,405 101,521

Deferred tax thereon (23,658) (31,416)
Other comprehensive income for the year - net of tax 83,747 70,105

Total comprehensive income for the year 1,764,596 920,110

The annexed notes 1 to 58 form an integral part of these financial statements.

Markus Strohmeier Syed Muhammad Ahsan Ghazali Qazi Sajid Ali

Managing Director Chief Financial Officer Director

SIEMENS ANNUAL REPORT 2022 39

 Siemens (Pakistan) Engineering Co. Ltd.
Statement of Cash Flows
For the year ended September 30, 2022

2022 2021
Note (Rupees in ‘000)
Cash flows from operating activities

Cash generated from operations 41 458,601 2,289,558

Payment to gratuity fund (69,176) (76,762)
Payment to Workers’ Profit Participation Fund (WPPF) (145,581) (46,000)
Payment to Workers’ Welfare Fund (WWF) (94) (17,686)
Financial expenses paid (29,094) (20,264)
Income tax paid (464,022) (111,805)
Net cash (used in) / generated from operating activities (249,366) 2,017,041

Cash flows from investing activities

Capital expenditure incurred (156,433) (139,333)

Proceeds from sale of property, plant and equipment 13,562 8,030
Proceeds from sale of assets classified as held for sale - net - 250,546
Financial income received 29,027 57,264
Net cash (used in) / generated from investing activities (113,844) 176,507

Cash flows from financing activities

Dividends paid (383,852) (82,681)

Repayment of long-term financing 7 (139,395) (107,202)
Repayment of lease liabilities 8 (41,274) (37,522)
Net cash used in financing activities (564,521) (227,405)

Net (decrease) / increase in cash and cash equivalents (927,731) 1,966,143

Cash and cash equivalents at beginning of the year 2,402,311 436,168

Cash and cash equivalents at end of the year 42 1,474,580 2,402,311

The annexed notes 1 to 58 form an integral part of these financial statements.

Markus Strohmeier Syed Muhammad Ahsan Ghazali Qazi Sajid Ali

Managing Director Chief Financial Officer Director

40 SIEMENS ANNUAL REPORT 2022

Siemens (Pakistan) Engineering Co. Ltd.
Statement of Changes in Equity
For the year ended September 30, 2022

Issued, Capital reserves Revenue reserves Total

subscribed Share Treasury Other General Remeasurement Accumulated
and paid-up premium shares capital reserves loss on profits
share capital reserve reserve defined benefit
plan - net of tax
-----------------------------------------------------------------(Rupees in ‘000)-----------------------------------------------------------------

Balance as at September 30, 2020 82,470 619,325 567 4,300 4,523,026 (350,000) 88,969 4,968,657

Final dividend @ Rs 10/- per Ordinary share of Rs 10/-

each for the year ended September 30, 2020 - - - - - - (82,470) (82,470)

Net profit for the year ended September 30, 2021 - - - - - - 850,005 850,005
Other comprehensive income for the year - - - - - 70,105 - 70,105
Total comprehensive income for the year - - - - - 70,105 850,005 920,110

Balance as at September 30, 2021 82,470 619,325 567 4,300 4,523,026 (279,895) 856,504 5,806,297

Final dividend @ Rs 46/- per Ordinary share of Rs 10/-

each for the year ended September 30, 2021 - - - - - - (379,364) (379,364)

Net profit for the year ended September 30, 2022 - - - - - - 1,680,849 1,680,849
Other comprehensive income for the year - - - - - 83,747 - 83,747
Total comprehensive income for the year - - - - - 83,747 1,680,849 1,764,596

Balance as at September 30, 2022 82,470 619,325 567 4,300 4,523,026 (196,148) 2,157,989 7,191,529

The annexed notes 1 to 58 form an integral part of these financial statements.

Markus Strohmeier Syed Muhammad Ahsan Ghazali Qazi Sajid Ali

Managing Director Chief Financial Officer Director

SIEMENS ANNUAL REPORT 2022 41

 Siemens (Pakistan) Engineering Co. Ltd.
Notes to the Financial Statements
For the year ended September 30, 2022

1. LEGAL STATUS AND OPERATIONS

Siemens (Pakistan) Engineering Co. Ltd. (the Company) was incorporated in Pakistan in the year 1953 under the Companies
Act, 1913 (now Companies Act, 2017). The Company is a public limited company and its shares are quoted on Pakistan Stock
Exchange Limited. The Company is principally engaged in the execution of projects under contracts and in manufacturing,
sale and installation of electronic and electrical capital goods. The Company’s registered office is situated at B-72, Estate
Avenue, S.I.T.E., Karachi. The geographical location of other offices and plant is given in note 55 to these financials statements.

2. BASIS OF PREPARATION

2.1 Statement of compliance

These financial statements have been prepared in accordance with the accounting and reporting standards as applicable in
Pakistan. The accounting and reporting standards applicable in Pakistan comprise of:

- International Financial Reporting Standards (IFRS) issued by the International Accounting Standard Board (IASB) as notified
under the Companies Act, 2017 (the Act);
- Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as are
notified under the Act; and
- Provisions of and directives issued under the Act.

Where provisions of and directives issued under the Act differ from IFRS, the provisions of and directives issued under the Act
have been followed.

2.2 Basis of measurement

These financial statements have been prepared under the ‘historical cost’ convention except as mentioned in the respective
notes to these financial statements.

2.3 Functional and presentation currency

These financial statements are presented in Pakistani Rupees (Rs) which is the functional currency of the Company and
figures are rounded off to the nearest thousand of rupees, unless otherwise specified.

2.4 Use of estimates, assumptions and judgements

The preparation of financial statements in conformity with accounting standards as applicable in Pakistan requires
management to make estimates, assumptions and judgements that affect the application of accounting policies and the
reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

These estimates are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which
the estimate is revised and in any future periods affected.

In preparing these financial statements, the significant estimates, assumptions and judgements made by the management
in applying accounting policies include:

- Contract liabilities (note 3.2)

- Provision for warranty obligations (note 3.3)
- Contingent liabilities (note 3.3)
- Method of depreciation and amortisation, residual values, useful lives and impairment on property, plant and equipment,
right-of-use assets and intangible assets (notes 3.5 to 3.7)
- Allowance for expected credit losses (loss allowance) on doubtful contract assets, deposits, trade and other receivables
(note 3.8.1)
- Provision for taxation and deferred taxation (note 3.9)
- Provisions against inventories (note 3.10)
- Actuarial assumptions for the gratuity scheme and provision thereagainst (note 9.1)
- Costs of completion of contracts in progress (notes 3.15 and 30.1); and
- Derivative financial instruments (note 3.17)
- Share based payment transactions (note 3.19)
- Determining the lease term of contracts and estimating the incremental borrowing rate (note 3.22)

42 SIEMENS ANNUAL REPORT 2022

 Notes to the Financial Statements

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies adopted in the preparation of these financial statements are set out below:

3.1 Employees’ retirement benefits

The Company’s retirement benefit plans comprise of defined benefit plans and a defined contribution plan.

3.1.1 Defined Benefit Plans

The Company operates an approved funded and unfunded gratuity scheme for all its regular permanent employees.

Provisions are made in the financial statements to cover obligations on the basis of actuarial valuation carried out annually
under the Projected Unit Credit method and are recognised in the statement of profit or loss. Remeasurement gains / losses
are recognised directly to equity through other comprehensive income (OCI) and are not reclassified to profit or loss in
subsequent periods.

3.1.2 Defined Contribution Plan

The Company also operates a provident fund scheme for all its regular permanent employees. Equal monthly contributions
are made to the fund, both by the Company and the employees at the rate of 10 percent of the aggregate of basic salary and
cost of living allowance, wherever applicable.

3.2 Contract liabilities

A contract liability is the obligation of the Company to transfer goods or services to a customer for which the Company has
received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before
the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or
the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company satisfies the
performance obligation under the contract.

It also includes refund liabilities arising out of customers’ right to claim amounts from the Company on account of contractual
delays in delivery of performance obligations and incentive on target achievements for dealers.

3.3 Provisions and contingent liabilities

A provision is recognised in the statement of financial position when the Company has a present (legal or constructive)
obligation as a result of past event and it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of obligation.

The Company accounts for its warranty obligations when the underlying products or services are sold or rendered. The
provision is estimated based on historical warranty data and a weighting of all possible outcomes against their associated
probabilities.

When it is probable that a contract’s costs will exceed total contract’s revenue, the expected loss is recognised as an expense
immediately.

A contingent liability is disclosed when there is a possible obligation that arises from past events and whose existence will
be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control
of the Company, or a present obligation that arises from past events but it is not probable that an outflow of resources
embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured
with sufficient reliability.

3.4 Non-current assets (or disposal group) classified as held for sale and Discontinued operations

Non-current assets (or disposal groups) are classified as held for sale if their carrying amounts will be recovered principally
through a sale rather than through continuing use. Such non-current assets (or disposal groups) are measured at the lower of
their carrying amount and fair value less costs to sell. Property, plant and equipment and intangible assets once classified as
held for sale are not depreciated or amortised.

A discontinued operation is a component of the Company’s business that has been discontinued or disposed off or is
held-for-sale. Classification as a discontinued operation occurs on disposal or when the operation meets the criteria to be
classified as held for sale, if earlier. When an operation is classified as a discontinued operation, the comparative profit and
loss account is restated as if the operation had been discontinued from the start of the comparative period.

SIEMENS ANNUAL REPORT 2022 43

 Notes to the Financial Statements

3.5 Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any,
except for capital-work-in-progress which are stated at cost less accumulated impairment losses, if any. Cost in relation to self
manufactured assets includes direct cost of materials, labour and applicable manufacturing overheads. If the cost of certain
components of an item of property, plant and equipment are significant in relation to the total cost of the item, they are
accounted for and depreciated separately.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to
arise from the continued use of the asset. Gains and losses on disposal of assets are taken to profit or loss.

Capital-work-in-progress consist of expenditure incurred in respect of operating fixed assets in the course of their acquisition,
construction and installation and advances made thereagainst. These are transferred to respective items of property, plant
and equipment on becoming available for use.

Repairs and maintenance are charged to profit or loss as and when incurred. Major renewals and improvements which
increase the asset’s remaining useful economic life or the performance beyond the current estimated levels are capitalized
and the assets so replaced, if any, are retired.

Depreciation is charged to profit or loss applying the straight-line method whereby, the cost of an asset is written off over
its estimated useful life. Depreciation on additions is charged from the month in which the asset is available for use and on
disposals upto the month of deletion, if not already fully depreciated. The residual value, depreciation method and the useful
lives of each class of property, plant and equipment are reviewed, and adjusted if appropriate, at each reporting date.

3.6 Right-of-use assets

The Company recognises right-of-use assets (ROU assets) at the commencement date of the lease (i.e., the date the underlying
asset is available for use). ROU assets are measured at cost less any accumulated depreciation and accumulated impairment
losses, and adjusted for any remeasurement of lease liabilities, if any. The cost of ROU assets includes the amount of lease
liabilities recognised, initial direct costs incurred, if any, and lease payments made at or before the commencement date less
any lease incentives received. Unless the Company is reasonably certain to obtain ownership of the leased asset at the end
of the lease term, the recognised ROU assets are depreciated on a straight-line basis over the shorter of its estimated useful
life and the lease term.

3.7 Intangible assets

Intangible assets having definite useful lives are stated at cost less accumulated amortisation and accumulated impairment
losses, if any. Intangible assets are amortised using the straight-line method over the estimated useful lives. Amortisation on
additions is charged from the month in which the asset is available for use and on disposals upto the month of deletion, if
not already fully amortised.

3.8 Impairment

3.8.1 Financial assets

The Company recognises an impairment for lifetime expected credit losses (loss allowance) for all financial assets, other than
those held at fair value through profit or loss. The Company applies a simplified approach to assess the loss allowance from
trade receivables, contract assets and other receivables by applying their lifetime expected credit losses. Loss allowances are
set up representing a forward-looking estimate of future credit losses involving significant judgment. Loss allowance is the
gross carrying amount less collateral, multiplied by the probability of default derived from internal rating grades and a factor
reflecting the loss in the event of default. Loss allowances are not recognized when the gross carrying amount is sufficiently
collateralized. However, in certain cases, the Company has also considered a financial asset to be in default when there is an
objective evidence of impairment including internal or external information indicates that the Company is unlikely to receive
the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company.

For other assets such as bank balances, deposits, etc., the Company also applies a low credit risk simplification and evaluates
whether these assets consider to have low credit risk using all reasonable and supportable information that is available
without undue cost and efforts including external credit ratings assesses by reputable agencies, etc.

3.8.2 Non-Financial assets

The carrying values of non-financial assets other than inventories and deferred tax assets are assessed at each reporting
date to determine whether there is any indication of impairment. If any such indications exist, then the recoverable amount
is estimated. An impairment loss is recognised, as an expense in profit or loss, for the amount by which an asset’s carrying
amount exceeds its recoverable amount.

44 SIEMENS ANNUAL REPORT 2022

 Notes to the Financial Statements

3.9 Taxation

3.9.1 Current

The charge for current taxation is based on taxable income at the current rates of taxation in accordance with Income Tax
Ordinance, 2001.

3.9.2 Deferred

Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount
of deferred tax provided is measured at the tax rates that are expected to apply to the period when the asset is realised or
the liability is settled, based on tax rates and the tax laws that have been enacted or substantively enacted by the date of
statement of financial position.

Deferred tax liability is recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible
temporary differences, carry forward of unused tax losses and unused tax credits. A deferred tax asset is recognised only
when it is probable that future taxable profits will be available against which the deductible temporary differences can be
utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
Deferred tax charged is recognised in profit or loss, however deferred tax relating to items recognised in OCI / Equity is
recognised directly in OCI / Equity.

3.10 Inventories

Inventories are valued at the lower of cost and net realisable value. Cost of finished goods, both manufactured and purchased,
raw material and components is determined on weighted average basis. The cost of work-in-process and finished goods
includes direct materials, labour and applicable production overheads. Inventories in transit are stated at invoice price plus
directly attributable charges incurred thereon up to the reporting date.

The Company reviews the carrying amount of inventories on an on-going basis and as appropriate, inventory is written down
to its net realisable value or provision is made for obsolescence if there is any change in usage pattern and / or physical form
of related inventory.

Net realisable value signifies the estimated selling price in the ordinary course of business less estimated cost of completion
and estimated costs necessarily to be incurred to make the sale.

3.11 Contract assets

Contract assets arise on long term construction contracts when the Company performs by transferring goods or services to
a customer before the customer pays consideration or before payment is due. It is measured at cost plus profit recognised to
date less progress billing and recognised losses; and any related loss allowance thereagainst. Cost includes all expenditures
related directly to specific projects and an allocation of fixed and variable overheads incurred.

The Company generally becomes entitled to invoice customers for execution of construction contract based on achieving a
series of performance-related milestones as per the respective contracts.

3.12 Cash and cash equivalents

Cash and cash equivalents are stated at cost and comprise of cash in hand, cheques in hand and deposits held with banks
subject to an insignificant risk of changes in value with less than three months maturity from the date of acquisition. Running
finance facilities availed by the Company, which are repayable on demand and form an integral part of the Company’s cash
management are considered as part of cash and cash equivalents for the purpose of statement of cash flows.

3.13 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the management.
Management monitors the operating results of its business segments separately for the purpose of making decisions about
resource allocation and performance assessment.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on
a reasonable basis. Unallocated items comprise mainly loans and borrowings and related expenses, cash and bank balances
and related income, corporate assets and tax assets and liabilities.

Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and
intangible assets other than goodwill.

SIEMENS ANNUAL REPORT 2022 45

 Notes to the Financial Statements

3.14 Foreign currencies

Foreign currency transactions are translated into Pakistani Rupees at exchange rates prevailing on the date of transaction. All
monetary assets and liabilities in foreign currencies are re-translated at the rates of exchange prevailing at the reporting date.
Exchange gains and losses are included in profit or loss. Non-monetary items that are measured in terms of historical cost in
a foreign currency are not re-translated.

3.15 Revenue recognition

(a) Revenue from contract with customers

Revenue from sale of goods is recognised at a point in time when the customer obtains control of the goods or services.

Service revenue is recognised over the contractual period or as and when services are rendered to customers.

The Contract revenue generated from execution of long term construction-type contracts is accounted for under the
percentage-of-completion method as the customer obtains control of the goods or services over the time. Contract
revenue and contract costs relating to such contracts are recognised as revenue and expenses respectively by reference
to stage of completion of contract activity at the reporting date. Stage of completion of a contract is determined by
applying ‘cost-to-cost method’ by reference to the proportion that contract cost incurred to date bears to the total
estimated contract cost. Contract revenue on construction contracts valuing less than Rs 10 million and / or duration
upto six months is recognised using completed contract method.

On contract inception and at each reporting date, the variable consideration element in a contract arising from penalty on
account of contractual delays (liquidated damages) is assessed. The resultant variable consideration, being immaterial
to the total revenue, is charged to cost of sales and services. Correspondingly, a refund liability is recognised against the
expected liquidated damages up to the contract completion.

When it is probable that contract costs will exceed total contract revenue, the expected loss is recognised as an expense
immediately. When the outcome of a construction contract cannot be estimated reliably, revenue is recognised only to
the extent of contract costs incurred that it is probable will be recoverable.

Contract modifications which may be a change in the scope or price (or both) are included in contract revenue to the
extent that they have been agreed with the customer and create enforceable rights and obligations.

(b) Other revenues

Commission income is recognised as it accrues. Financial income is recognised as it accrues, using the effective
mark-up rates.

3.16 Financial assets and liabilities

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.

Financial assets are classified, at initial recognition and subsequently measured at amortised cost, fair value through OCI or
fair value through profit or loss. This classification depends on the financial asset’s contractual cash flow characteristics and
the Company’s business model for managing them. With the exception of trade receivables, the Company initially measures
all financial assets at cost, which is the fair value of consideration given. Trade receivables are measured at the transaction
price determined under IFRS 15.

In order for a financial asset to be classified and measured at amortised cost, the financial asset gives rise on specified
dates to cash flows that are ‘solely payments of principal and interest’ (SPPI) on the principal amount outstanding and the
Company holds such financial assets with an objective to collect contractual cash flows. Financial assets at amortised cost
are subsequently measured using the effective interest rate (EIR) method and are subject to impairment. Gains and losses are
recognised in statement of profit or loss when the asset is derecognised, modified or impaired. .

Financial assets at fair value through profit or loss (FVTPL) include financial assets held for trading (including derivatives
unless they are designated as effective hedging instruments), financial assets designated upon initial recognition at FVTPL,
or financial assets mandatorily required to be measured at fair value. Financial assets with cash flows that are not solely
payments of principal and interest are classified and measured at FVTPL, irrespective of the business model. These are carried
in the statement of financial position at fair value with net changes in fair value recognised in profit or loss.

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as derivatives, as appropriate. All financial liabilities are recognised initially at fair value and, in the
case of loans and borrowings and payables, net of directly attributable transaction costs. These are subsequently measured
at fair value or amortised cost as the case may be. Gains or losses are recognised in profit or loss.

46 SIEMENS ANNUAL REPORT 2022

 Notes to the Financial Statements

The Company derecognises the financial assets and financial liabilities when it ceases to be a party to contractual provisions
of such instruments.

Financial assets and liabilities are offset and the net amount is reported in the financial statements only when there is legally
enforceable right to set-off the recognised amounts and the Company intends either to settle on a net basis, or to realise the
assets and to settle the liabilities simultaneously.

3.17 Derivative financial instruments

The Company uses derivative financial instruments to cover its exposure to foreign exchange arising from operational
activities, if possible. Any unrealised gain or loss from re-measuring the derivative financial instrument at fair value is
recognised in profit or loss.

Derivatives embedded in host contracts are accounted for as separate derivatives and recorded at fair value if their economic
characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading
or designated at fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair
value recognised in profit or loss.

3.18 Dividends

Dividend is recognised as a liability in the period in which it is approved.

3.19 Share based payment transactions

The fair value of the amount payable in cash to employees in respect of share based schemes is recognised as an expense,
with a corresponding increase in liabilities, over the period that the employees become entitled to payment. The liability is
remeasured at each reporting date and at settlement date. Any changes in the fair value of the liability are recognised as
salaries, wages and employee welfare expense in profit or loss.

3.20 Government grants

Government grant is recognised where there is reasonable assurance that the grant will be received and all attached conditions
will be complied with. The grant is related to an expense item, it is recognised in profit or loss on a systematic basis over the
periods that the related costs, for which it is intended to compensate, are expensed.

Deferred Government grant relates to the difference between the fair value of the loan at prevailing market interest rate and
the actual amount of financing at subsidised interest rate as obtained under SBP refinance scheme for payment of salaries and
wages. The grant is amortised over the period of loan and presented as reduction of related interest expense.

3.21 Ijarah contracts

Arrangements in which a significant portion of the risks and rewards of ownership is retained by the Muj’ir (lessor) and Ijarah
agreements have been entered into, are classified as Ijarah. Ijarah rentals paid under Ijarah agreements are charged to profit
or loss on a straight-line basis over the period of Ijarah.

3.22 Lease liabilities

The Company assess at contract inception whether a contract is, or contain a lease. That is, if the contract conveys the right
to control the use of an identified asset for a period of time in exchange for consideration. The Company acts as a lessee
and applies a single recognition and measurement approach for all the leases except for short-term leases and leases of low
value assets. The Company recognises lease liability to make lease payments and right-of-use assets representing the right
to use the underlying assets. At the commencement date of the lease, the Company recognises lease liabilities measured at
the present value of lease payments to be made over the lease term. The Company applies the short-term lease recognition
exemption to its short-term leases (i.e. those leases that have a lease term of 12 months or less from the commencement date
and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are
considered of low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a
straight-line basis over the lease term.

In calculating the present value of lease payments, the Company uses the incremental borrowing rate at the lease
commencement date. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is
a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment
to purchase the underlying asset.

SIEMENS ANNUAL REPORT 2022 47

 Notes to the Financial Statements

The Company determines the lease term as the non-cancellable term of the lease, together with any periods affected by an
option to extend or terminate the lease. After the commencement date, the Company reassess the lease term if there is a
significant event or change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the
option to renew the lease. Any change is accounted for as a change in estimate and applied prospectively with corresponding
change in ROU assets and lease liabilities.

3.23 Amendments to approved accounting standards effective during the year

The company has adopted the following amendments to IFRSs for financial reporting which became effective for the current
year:

Amendments to approved accounting standards

IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 - Interest Rate Benchmark Reform (Amendments)
IFRS 16 - Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendments)

The adoption of the above amendments to the approved accounting standards did not have any material effect on the
Company’s financial statements.

3.24 Amendments and improvements to approved accounting standards that are not yet effective

The following amendments and improvements to approved accounting standards as applicable in Pakistan would be effective
from the dates mentioned below against the respective standards, amendments or improvements:

Effective date
(annual periods
Amendment or Improvement beginning on or after)

IFRS 3 Reference to the Conceptual Framework (Amendments) January 01, 2022

IAS 16 Property, Plant and Equipment: Proceeds before Intended Use (Amendments) January 01, 2022
IAS 37 Onerous Contracts – Costs of Fulfilling a Contract (Amendments) January 01, 2022
IAS 1 Classification of Liabilities as Current or Non-current (Amendments) January 01, 2023
IAS 1 Disclosure of Accounting Policies (Amendments) January 01, 2023
IAS 8 Definition of Accounting Estimates (Amendments) January 01, 2023
IAS 12 Deferred tax related to Assets and Liabilities arising from
a single transaction (Amendments) January 01, 2023
IFRS 10 / IAS 28 Sale or Contribution of Assets between an Investor and
its Associate or Joint Venture (Amendment) Not yet finalised

Improvements to Accounting Standards Issued by the IASB (2018-2020 cycle)

IFRS 9 Financial Instruments - Fees in the ‘10 percent’ test for

derecognition of financial liabilities January 01, 2022
IAS 41 Agriculture - Taxation in fair value measurements January 01, 2022
IFRS 16 Leases: Lease incentives January 01, 2022

The above amendments and improvements are not expected to have any material impact on the Company’s financial
statements in the period of initial application.

Further, the following new standards have been issued by IASB which are yet to be notified by the SECP for the purpose of
applicability in Pakistan and are not expected to have any material impact on the Company’s financial statements in the period
of initial application.

IASB Effective date

(annual periods
Standard beginning on or after)

IFRS 1 First time adoption of IFRSs January 01, 2004

IFRS 17 Insurance Contracts January 01, 2023

48 SIEMENS ANNUAL REPORT 2022

 Notes to the Financial Statements

4. OPERATIONS IN AFGHANISTAN

Effective December 31, 2015, the Company ceased to participate in further business in Afghanistan due to withdrawal of sales
rights by Siemens AG for the Afghanistan territory. However, the Company will continue to execute the orders in hand as at
September 30, 2022 amounting to Rs 52.737 million (2021: Rs 58.703 million). Information relating to Afghanistan operations
is presented in note 54 to these financial statements.

5. ISSUED, SUBSCRIBED AND FULLY PAID-UP SHARE CAPITAL

Ordinary shares of Rs 10/- each

2022 2021 2022 2021
(No. of shares) (Rupees in ‘000)

6,217,780 6,217,780 Issued for cash 62,178 62,178

81,700 81,700 Issued for consideration other than cash 817 817
1,526,800 1,526,800 Issued as bonus shares 15,268 15,268
(56,683) (56,683) Treasury shares (567) (567)
477,440 477,440 Issued under a scheme of amalgamation 4,774 4,774
8,247,037 8,247,037 82,470 82,470

5.1 Siemens Aktiengesellschaft (Siemens AG, the parent company) held 6,156,782 Ordinary shares (2021: 6,156,782 Ordinary
shares) of Rs 10/- each of the Company as at September 30, 2022.

5.2 Voting rights, board selection, right of first refusal and block voting are in proportion to the respective shareholding.

5.3 Dividends and other appropriations

The Board of Directors have, in their meeting held on November 24, 2022 proposed a final cash dividend of Rs 46 per Ordinary
share of Rs 10/- each (2021: Rs 46/- per share), amounting to Rs 379.364 million (2021: Rs 379.364 million). This is subject to
the approval of the Members of the Company at the forthcoming Annual General Meeting, the effect of which will be reflected
in the Financial Statements for the year ending September 30, 2023.

2022 2021
6. RESERVES Note (Rupees in ‘000)

Capital
Share premium 6.1 619,325 619,325
Treasury shares reserve 6.2 567 567
Other capital reserve 4,300 4,300
624,192 624,192

Revenue
General reserves 4,523,026 4,523,026
Remeasurement loss on defined benefit plan - net of tax (196,148) (279,895)
Accumulated profits 2,157,989 856,504
6,484,867 5,099,635

6.1 This represents premium of Rs 50/- per share on the issue of 186,340 Ordinary shares of Rs 10/- each and Rs 70/- per share on
the issue of 223,608 Ordinary shares of Rs 10/- each during the years ended September 30, 1988 and 1990, respectively, and
premium of Rs 1,277/- per share on the issue of 477,440 Ordinary shares of Rs 10/- each under the scheme of amalgamation
during the year ended September 30, 2007. This amount was reduced by Rs 15.334 million on account of 56,683 Ordinary
shares of Rs 10/- each bought back by the Company during the year ended September 30, 2003.

6.2 This represents the amount by which the share capital of the Company was reduced on the buy back of 56,683 Ordinary
shares of Rs 10/- each and transferred from the distributable profits of the Company to treasury shares during the year ended
September 30, 2003. This reserve was created to comply with the requirements of Section 95A of the repealed Companies
Ordinance, 1984.

SIEMENS ANNUAL REPORT 2022 49

 Notes to the Financial Statements

2022 2021
7. LONG-TERM FINANCING Note (Rupees in ‘000)

Balance at beginning of the year 166,540 255,853

Accretion of interest during the year 7,077 17,889
Payments during the year (139,395) (107,202)
Balance at end of the year 7.1 34,222 166,540

Less: Current maturity of long-term financing 12 (34,222) (135,099)

- 31,441

7.1 This represents re-finance loan obtained from Standard Chartered Bank of (Pakistan) Limited at subsidised interest rate of
3.00% per annum under the State Bank of Pakistan (SBP) refinance scheme to support payment of salaries and wages. This is
secured against the joint hypothecation charges over inventories and trade receivables of the Company.

2022 2021
8. LEASE LIABILITIES Note (Rupees in ‘000)

Balance at beginning of the year 111,654 136,334

Accretion of interest during the year 9,945 12,842
Payments during the year (41,274) (37,522)
Balance at end of the year 80,325 111,654

Less: Current maturity of lease liabilities 12 (32,018) (31,330)

48,307 80,324

9. DEFERRED LIABILITIES

Defined benefit plan - gratuity fund 9.1 397,966 459,790

Share based benefits 47 26,004 52,786
Others 16,133 15,061
440,103 527,637

9.1 Defined benefit plan - gratuity fund

As stated in note 3.1.1 to these financial statements, the Company operates two retirement benefit plans (the plans) namely
approved funded gratuity scheme for all its permanent employees in Pakistan and an unfunded gratuity scheme for all its
permanent employees in Afghanistan.

Plan assets held in trust are governed by local regulations which mainly includes Trust Act, 1882, Companies Act, 2017,
Income Tax Rules, 2002 and Rules under the Trust deed of the Plan. Responsibility for governance of the Plans, including
investment and funding decisions and contribution schedules lies with the Board of Trustees. The Company appoints the
trustees and all trustees are employees of the Company.

The latest actuarial valuation was carried out on September 30, 2022 using the Projected Unit Credit Method, using the
following significant financial assumptions:
- Discount rate of 13% per annum compound (2021: 10.4%).
- Expected rate of increase in salaries 11.5% per annum (2021: 11.5%).
- For Pakistan SLIC (2001-05) mortality table was considered whereas, for Afghanistan because of the nature of the benefit
which is a lump sum payable on exit due to any cause, a combined single decrement rate has been used.

50 SIEMENS ANNUAL REPORT 2022

 Notes to the Financial Statements

The amounts recognised in the statement of financial position are as follows:

2022 2021
Pakistan Afghanistan Total Pakistan Afghanistan Total
Funded Unfunded Funded Unfunded
Note -------------------------------------------------(Rupees in ‘000)--------------------------------------------------

Fair value of plan assets 9.1.1 326,041 - 326,041 278,196 - 278,196

Present value of defined benefit obligation 9.1.2 (708,472) (15,535) (724,007) (724,910) (13,076) (737,986)
Deficit - recognised as liability in the
statement of financial position 9.1.3 (382,431) (15,535) (397,966) (446,714) (13,076) (459,790)

9.1.1 Movement in the fair value of plan assets

Opening balance 278,196 - 278,196 238,858 - 238,858

Interest income 29,328 - 29,328 23,947 - 23,947
Contributions made by the Company 69,176 - 69,176 73,365 - 73,365
Benefits paid (40,408) - (40,408) (70,776) - (70,776)
Remeasurement (loss) / gain 9.1.4 (10,251) - (10,251) 12,802 - 12,802
326,041 - 326,041 278,196 - 278,196

9.1.2 Movement in the present value of defined

benefit obligation

Opening balance 724,910 13,076 737,986 738,750 16,101 754,851

Current service cost 69,176 1,491 70,667 73,365 1,841 75,206
Interest expense 72,106 1,312 73,418 69,296 1,525 70,821
Benefits paid (40,408) - (40,408) (70,776) (3,397) (74,173)
Remeasurement gain 9.1.4 (117,312) (344) (117,656) (85,725) (2,994) (88,719)
708,472 15,535 724,007 724,910 13,076 737,986

9.1.3 Movement in net liability in the statement of

financial position is as follows:

Opening balance of liability 446,714 13,076 459,790 499,892 16,101 515,993

Expense recognised for the year 9.1.5 111,954 2,803 114,757 118,714 3,366 122,080
Contributions made by the Company (69,176) - (69,176) (73,365) - (73,365)
Benefits paid - - - - (3,397) (3,397)
Net remeasurement gain for the year
recognised in OCI 9.1.4 (107,061) (344) (107,405) (98,527) (2,994) (101,521)
382,431 15,535 397,966 446,714 13,076 459,790

9.1.4 Remeasurement (gain) / loss recognised in

statement of other comprehensive income:

Remeasurement of present value of defined

benefit obligation
Financial assumptions (132,759) (2,990) (135,749) (32,658) (794) (33,452)
Experience adjustments 15,447 (1,125) 14,322 (53,067) (2,709) (55,776)
Effect of changes in foreign exchange rates - 3,771 3,771 - 509 509
(117,312) (344) (117,656) (85,725) (2,994) (88,719)
Remeasurement of fair value of plan assets 10,251 - 10,251 (12,802) - (12,802)
(107,061) (344) (107,405) (98,527) (2,994) (101,521)

9.1.5 The following amounts have been charged in

the statement of profit or loss in respect of
these benefits:

Current service cost 69,176 1,491 70,667 73,365 1,841 75,206

Interest expense 72,106 1,312 73,418 69,296 1,525 70,821
Interest income on plan assets (29,328) - (29,328) (23,947) - (23,947)
111,954 2,803 114,757 118,714 3,366 122,080

SIEMENS ANNUAL REPORT 2022 51

 Notes to the Financial Statements

Pakistan - Funded Afghanistan - Unfunded

9.1.6 Major categories / composition of plan assets are as follows: 2022 2021 2022 2021
------------------------------------%------------------------------------

Treasury bills - 78 - -
Cash and cash equivalents 100 22 - -
100 100 - -

9.1.7 Sensitivity analysis for actuarial assumptions

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

Impact on defined benefit obligation

Pakistan Afghanistan
Assumptions 0.5% increase 0.5% decrease 0.5% increase 0.5% decrease
---------------------------------------------(Rupees in ‘000)------------------------------------------

Effect of change in discount rate (21,261) 22,495 (600) 645

Effect of change in future salary increases 22,702 (21,634) 651 (610)

9.1.8 The expected interest income on plan assets is taken as weighted average of expected investment return on different assets
of the gratuity fund.

9.1.9 During the year ending September 30, 2023, the Company plans to contribute to the defined benefit plan of Pakistan as per
the recommendation of the actuary amounting to Rs 66.730 million.

9.1.10 The defined benefit plans expose the Company to the actuarial risks such as:

Withdrawal and mortality risks - Withdrawal risk is the risk of higher or lower withdrawal experience than assumed. Mortality
risk is the risk that the actual mortality experience is different. Both risks depend on the beneficiaries’ service / age distribution
and the benefit.

Investment risk - The risk of the investment underperforming and not being sufficient to meet the liabilities. The risk is
mitigated by closely monitoring the performance of investments.

Longevity risk - The risk arises when the actual lifetime of retirees is longer than expectation. The risk is measured at the plan
level over the entire retiree population.

9.1.11 The weighted average duration of the defined benefit obligations is 6 years.

2022 2021
10. TRADE AND OTHER PAYABLES Note (Rupees in ‘000)

Trade creditors [including retention money of Rs 581.729 million

(2021: Rs 674.119 million)] 10.1 6,907,944 4,610,223
Accrued liabilities 1,384,543 1,402,362
Accrued interest 191,469 173,738
Workers’ Profit Participation Fund (WPPF) 9,112 15,580
Workers’ Welfare Fund (WWF) 229,349 176,186
Derivative financial instruments - 20,086
Withholding tax payable 27,244 21,740
Sales tax payable 121,534 117,543
Other liabilities 99,670 76,403
8,970,865 6,613,861

10.1 These include sums aggregating to Rs 1,518.889 million (2021: Rs 1,621.544 million) due to related parties.

52 SIEMENS ANNUAL REPORT 2022

 Notes to the Financial Statements

2022 2021
11. CONTRACT LIABILITIES Note (Rupees in ‘000)

Advances from customers

- for goods 1,355,811 648,253
- for projects and services 11.1 3,275,911 2,556,249
11.2 4,631,722 3,204,502

Unearned portion of revenue 185,861 129,915

Refund liabilities 387,556 332,189
5,205,139 3,666,606

11.1 This includes advance amounts due from a related party, Rousch (Pakistan) Power Limited having aggregate amount due of
Rs 264.223 million (2021: Rs 228.788 million) as per the contractual payment terms.

11.2 This includes billings in excess of Rs 1,279.149 million (2021: Rs 104.876 million) as per the contractual milestones.

2022 2021
12. CURRENT PORTION OF NON-CURRENT LIABILITIES Note (Rupees in ‘000)

Current maturity of long-term financing 7 34,222 135,099

Current maturity of lease liabilities 8 32,018 31,330
Current portion of deferred Government grant 12.1 - 4,529
66,240 170,958

12.1 Deferred Government grant

Balance at beginning of the year 4,529 15,785

Government grant amortised during the year (4,529) (11,256)
- 4,529

Warranties Losses on Total

sales contracts
13. PROVISIONS ------------------------------ (Rupees in ‘000) ------------------------------

2022
Balance at beginning of the year 504,477 37,251 541,728
Additional provision 132,000 132,708 264,708
Cost incurred (47,113) (14,443) (61,556)
Reversal of unutilised amounts (86,404) (9,324) (95,728)
Balance at end of the year 502,960 146,192 649,152

2021
Balance at beginning of the year 509,318 33,303 542,621
Additional provision 136,370 14,642 151,012
Cost incurred (73,914) (3,026) (76,940)
Reversal of unutilised amounts (67,297) (7,668) (74,965)
Balance at end of the year 504,477 37,251 541,728

2022 2021
14. TAXATION - NET (Rupees in ‘000)

Provision for taxation 2,189,776 1,757,480

Advance tax (1,615,047) (1,428,062)
574,729 329,418

SIEMENS ANNUAL REPORT 2022 53

 Notes to the Financial Statements

15. SHORT-TERM RUNNING FINANCES

15.1 Facilities for secured bank overdraft arranged with commercial banks in Pakistan aggregated to Rs 3,695 million
(2021: Rs 4,900 million) while interest rate ranges between 8.00% to 16.01% per annum (2021: 7.61% to 8.01% per annum).
These are secured against the joint hypothecation charges over inventories and trade receivables of the Company. As of
reporting date, these remained fully unutilized by the Company.

15.2 Facility for unsecured bank overdraft arranged with commercial bank in the United Arab Emirates (UAE) aggregated to
Rs 155.283 million (2021: Rs 116.567 million) at interest rate ranges between 3.70% to 3.74% per annum. As of reporting date,
this remained fully unutilized by the Company.

15.3 Facility is available from Siemens Financial Services (SFS) of Siemens AG, in respect of the projects in the United Arab Emirates
(UAE). The mark-up on this facility ranges between 4.53% and 5.06% per annum (2021: 0.91% and 1.56% per annum). As of
reporting date, this remained fully unutilized by the Company.

16. CONTINGENCIES AND COMMITMENTS

16.1 Contingencies

The Company is defending various suits filed against it in various courts in Pakistan for sums aggregating to
Rs 103.635 million (2021: Rs 284.518 million) related to its business operations. The Company’s management is confident,
based on the advice of its legal advisors, that these suits will be decided in Company’s favour and, accordingly, no provision
has been made for any liability against these law suits in these financial statements.

16.2 Commitments

16.2.1 As at September 30, 2022, capital expenditure contracted for but not incurred amounted to Rs 38.140 million
(2021: Rs 50.848 million).

16.2.2 Post dated cheques issued to the Collector of Customs against import duty aggregate to nil (2021: Rs 14.995 million).

2022 2021
16.2.3 Guarantees (Rupees in ‘000)

- limit 18,916,372 16,413,125

- utilised portion 16,580,399 12,944,617
- unutilised portion 2,335,973 3,468,508

16.2.4 Letters of credit

- limit 5,200,000 1,214,412

- utilised portion 4,444,805 1,212,298
- unutilised portion 755,195 2,114

16.2.5 The aggregate amount of commitments against various lease arrangements for rental premises arrangements are as follows:

2022 2021
Note (Rupees in ‘000)

- Not later than one year 5,761 4,318

17. PROPERTY, PLANT AND EQUIPMENT

Operating assets 17.1 296,280 244,418

Capital-work-in-progress 29,871 55,937
326,151 300,355

54 SIEMENS ANNUAL REPORT 2022

 17.1 Operating assets

As at October 1, 2021 During the year ended September 30, 2022 As at September 30, 2022
Cost Accumulated Net book Additions / Depreciation / Net book value Cost Accumulated Net book Depreciation
depreciation value (deletions) (on deletions) of disposals depreciation value rates

------------------------------------------------------------------------------------------- (Rupees in ‘000)------------------------------------------------------------------------------------------ %

Leasehold improvements 31,227 24,637 6,590 41,998 12,079 - 73,225 36,716 36,509 20 & 25
- -

Plant and machinery 314,819 229,932 84,887 26,118 15,232 - 336,617 240,844 95,773 10 & 100
(4,320) (4,320)

Furniture and fixtures 160,128 128,575 31,553 35,910 24,551 40 186,282 143,410 42,872 20, 25 & 100
(9,756) (9,716)

Office equipment 216,015 173,987 42,028 43,258 29,940 5,754 177,094 127,502 49,592 20 & 33.33
(82,179) (76,425)

Vehicles 198,422 149,634 48,788 25,806 20,452 - 218,112 163,970 54,142 25

(6,116) (6,116)

Tools and patterns 398,544 367,972 30,572 9,409 22,589 - 401,634 384,242 17,392 20, 50 & 100
(6,319) (6,319)

2022 1,319,155 1,074,737 244,418 182,499 124,843 5,794 1,392,964 1,096,684 296,280
(108,690) (102,896)

SIEMENS ANNUAL REPORT 2022

Notes to the Financial Statements

55
56
As at October 1, 2020 During the year ended September 30, 2021 As at September 30, 2021
Cost Accumulated Net book Additions / Depreciation / Net book value Cost Accumulated Net book Depreciation
depreciation value (deletions) (on deletions) of disposals depreciation value rates

SIEMENS ANNUAL REPORT 2022

------------------------------------------------------------------------------------------ (Rupees in ‘000) ------------------------------------------------------------------------------------------- %

Leasehold improvements 31,227 21,307 9,920 - 3,330 - 31,227 24,637 6,590 20

Notes to the Financial Statements

- -

Plant and machinery 316,756 215,984 100,772 - 15,486 399 314,819 229,932 84,887 10 & 100
(1,937) (1,538)

Furniture and fixtures 161,076 122,147 38,929 13,039 19,880 535 160,128 128,575 31,553 20, 25 & 100
(13,987) (13,452)

Office equipment 224,613 175,345 49,268 24,592 30,846 986 216,015 173,987 42,028 20 & 33.33
(33,190) (32,204)

Vehicles 182,961 165,542 17,419 43,451 11,473 609 198,422 149,634 48,788 25
(27,990) (27,381)

Tools and patterns 383,049 340,329 42,720 23,221 35,369 - 398,544 367,972 30,572 20, 50 & 100
(7,726) (7,726)

2021 1,299,682 1,040,654 259,028 104,303 116,384 2,529 1,319,155 1,074,737 244,418
(84,830) (82,301)

17.1.1 Operating fixed assets include items having an aggregate cost of Rs 883.210 million (2021: Rs 794.277 million) which have been fully depreciated and are still in use of the Company.
 Notes to the Financial Statements

17.2 The details of operating assets having net book value of Rs 500,000 and above sold during the year are as follows:

Original Accumulated Net book Sale Gain Mode of Name and address
cost depreciation value proceed disposal of purchaser

----------------------------- (Rupees in ‘000) ---------------------------

Office Equipment

IT server 2,185 1,602 583 1,068 485 Negotiation ATOS

2022 2021
18. RIGHT-OF-USE ASSETS Note (Rupees in ‘000)

Opening net book value 99,958 131,577

Depreciation for the year (31,619) (31,619)
Closing net book value 18.2 68,339 99,958

18.1 Gross carrying value basis

Cost 131,577 159,574

Accumulated depreciation (63,238) (59,616)
Net book value 68,339 99,958

Depreciation rates per annum 16% - 31% 16% - 31%

18.2 The right-of-use assets held by the Company comprise of properties including land and building, on rental arrangement basis
for its operations.

2022 2021
19. Depreciation and amortisation have been allocated as follows: Note (Rupees in ‘000)

Cost of sales and services 31.1 121,158 122,803

Marketing and selling expenses 32 29,197 23,068
General administrative expenses 34 6,107 2,521
156,462 148,392

20. LONG-TERM LOANS AND TRADE RECEIVABLES

Loans
Due from non-executive employees 20.1 4,585 2,194

Less: Receivable within one year shown under current assets 25 (1,775) (1,327)
Long term portion 2,810 867
Discounting to present value (489) (155)
2,321 712
Trade receivables
Considered good 607,446 395,924
Considered doubtful 222,154 75,851
23.2 829,600 471,775
Loss allowance (222,154) (75,851)
607,446 395,924

609,767 396,636

20.1 These represent interest free loans as per Company’s policy, payable over a period of one to four years. Any outstanding
amount due from an employee at the time of leaving the service of the Company is adjustable against the final dues including
the retirement benefits.

SIEMENS ANNUAL REPORT 2022 57

 Notes to the Financial Statements

2022 2021
21. DEFERRED TAX ASSET - NET Note (Rupees in ‘000)

Debit / (credit) balance arising in respect of:

Unadjusted tax credits / tax losses - 54,655
Provisions 189,044 190,934
Loss allowance 370,364 285,063
Remeasurement loss on defined benefit plan 34,792 58,450
Decelerated tax depreciation and amortisation 25,595 27,405
Lease liabilities 11,940 19,132
631,735 635,639

Derivative financial instruments (264,703) (38,599)

Right-of-use assets (10,158) (17,128)
(274,861) (55,727)

356,874 579,912

22. INVENTORIES

Raw materials and components 520,569 522,555

Work-in-process 1,191,025 621,990
Finished goods 211,621 186,323
1,923,215 1,330,868
Provision for slow moving and obsolete items (171,462) (189,513)
1,751,753 1,141,355
Goods-in-transit 414,011 210,947
2,165,764 1,352,302

23. TRADE RECEIVABLES

Considered good
Due from related parties 23.1 209,870 67,752
Due from others 11,432,060 10,286,953
11,641,930 10,354,705
Considered doubtful 1,458,266 1,067,770
23.2 13,100,196 11,422,475
Loss allowance (1,458,266) (1,067,770)
11,641,930 10,354,705

23.1 Represents amounts due from Rousch (Pakistan) Power Limited and Siemens Energy affiliates having aggregate amounts of
Rs 38.888 million (2021: Rs 10.085 million) and Rs 170.982 million (2021: Rs 57.667 million) respectively. Further, the
maximum aggregate amounts due at the end of any month during the year from Rousch (Pakistan) Power Limited and
Siemens Energy affiliates was Rs 39.004 million (2021: Rs 10.531 million) and Rs 171.025 million (2021: Rs 49.323 million)
respectively.

23.2 Information relating to trade receivable ageing is presented in note 50.2 to these financial statements.

2022 2021
24. CONTRACT ASSETS (Rupees in ‘000)

Considered good 3,424,503 1,553,222

Considered doubtful 534,852 257,449
3,959,355 1,810,671
Loss allowance (534,852) (257,449)
3,424,503 1,553,222

58 SIEMENS ANNUAL REPORT 2022

 Notes to the Financial Statements

2022 2021
25. LOANS AND ADVANCES Note (Rupees in ‘000)

Current portion of loans due from non-executive employees 20 1,775 1,327

Advances to:
Suppliers 470,861 99,251
Executive employees 25.1 13,598 21,193
Non-executive employees 3,949 8,017
488,408 128,461
490,183 129,788

25.1 This includes advance to key management personnel of Rs 0.011 million (2021: Rs 1.434 million). Further, the maximum
amount of advance to key management personnel outstanding at the end of any month during the year ended
September 30, 2022 was Rs 11.393 million (2021: Rs 3.692 million).

2022 2021
26. DEPOSITS AND SHORT-TERM PREPAYMENTS (Rupees in ‘000)

Deposits
Considered good 520,208 87,177
Considered doubtful 38,992 39,446
559,200 126,623
Loss allowance (38,992) (39,446)
520,208 87,177
Prepayments 2,380 17,064
522,588 104,241

27. DERIVATIVE FINANCIAL INSTRUMENTS

This represents the derivative contracts embedded in foreign currency host construction contracts entered into by the
Company with its customers and suppliers. The economic characteristics and risks of such embedded contracts are not closely
related to those of the host contracts and therefore are accounted for as separate derivatives and are carried at fair value
though profit or loss. Fair values of embedded foreign currency derivatives are based on forward exchange rates for the due
dates of the respective embedded derivatives.

2022 2021
28. OTHER RECEIVABLES Note (Rupees in ‘000)

Considered good
Due from related parties 28.1 1,912 4,020
Costs reimbursable from customers 243,482 194,841
Interest accrued 55,396 48,072
Others 15,144 35,925
315,934 282,858
Considered doubtful
Costs reimbursable from customers 30,087 15,230
Sales tax refundable 116,361 116,361
Others 88,262 88,658
234,710 220,249
550,644 503,107
Loss allowance (234,710) (220,249)
315,934 282,858

28.1 Represents amount due from Siemens Industry Software (Private) Limited, Siemens Gamesa Renewable Energy (Private)
Limited and Siemens Healthcare (Private) Limited having aggregate amounts due of Rs 1.912 million (2021: Rs 3.973 million),
Rs nil (2021: Rs 0.008 million) and Rs nil (2021: Rs 0.039 million) respectively. Further, the maximum aggregate amounts
due at the end of any month during the year from Siemens Industry Software (Private) Limited, Siemens Gamesa Renewable
Energy (Private) Limited and Siemens Healthcare (Private) Limited was Rs 1.912 million (2021: Rs 11.696 million),
Rs 0.934 million (2021: Rs 1.387 million) and Rs 0.982 million (2021: Rs 0.581 million) respectively.

SIEMENS ANNUAL REPORT 2022 59

 Notes to the Financial Statements

2022 2021
29. CASH AND BANK BALANCES Note (Rupees in ‘000)

With banks in
Current accounts 29.1 451,193 209,666
Deposit accounts 1,023,201 2,181,508
1,474,394 2,391,174
Cheque in hand - 10,503
Cash in hand 186 634
1,474,580 2,402,311

29.1 Includes security deposits of Rs 3.741 million (2021: Rs 4.266 million) from vendors kept in a special account maintained by
the Company with a scheduled bank.

2022 2021
30. NET SALES AND SERVICES Note (Rupees in ‘000)

Sales disaggregation by type of contracts

Execution of contracts 11,336,643 6,642,948
Sale of goods 7,201,504 4,550,016
Rendering of services 2,946,062 3,155,986
30.1 21,484,209 14,348,950
Sales tax 2,816,750 2,062,956
Gross sales and services 24,300,959 16,411,906
Sales tax (2,816,750) (2,062,956)
21,484,209 14,348,950

30.1 The transaction price are generally fixed as per the contract with customers. Any variable consideration is estimated by using
the most likely amount which is the single most likely amount in a range of possible consideration amounts.

In some cases, the transaction price needs to be allocated on the basis of relative stand-alone selling prices among the distinct
performance obligations. The best evidence of a stand-alone selling price is the observable price of goods or services when
the Company sells those goods or services separately in similar circumstances and to similar customers.

The revenue generated from execution of contracts is accounted for under the percentage-of-completion method wherein,
the plan costs are estimated. These estimates are based on the prices of materials and services applicable at that time,
forecasted increases and expected completion date at the time of such estimation. Such estimates are reviewed at regular
intervals. Any subsequent changes in the prices of materials and services compared to forecasted prices and changes in the
time of completion affect the results of the subsequent periods.

The payment terms are governed by the contractual rights and obligations as defined in the contracts with customers.
Generally, in case of sales of goods and rendering of services, the Company has the present right to payment when the same
has been delivered, rendered or accepted. Whereas, in case of execution of contracts, the right to payment is established on
achieving performance-related contractual milestones.

30.2 Revenue recognised during the year from the contract liability balance at the beginning of the year is Rs 1,714.994 million
(2021: Rs 238.914 million).

30.3 The following shows the most appropriate maturity time bands of transaction price allocated to performance obligations that
are unsatisfied (or partially unsatisfied) as at the end of the reporting year:

2022 2021
(Rupees in ‘000)

Subsequent 1st year 23,074,658 15,651,120

Subsequent 2nd year 11,285,626 4,804,004
Beyond 2nd year 11,874,613 8,100,035
46,234,897 28,555,159

60 SIEMENS ANNUAL REPORT 2022

 Notes to the Financial Statements

2022 2021
Note (Rupees in ‘000)

31. COST OF SALES AND SERVICES

Opening inventory of finished goods 22 186,323 212,438

Cost of goods manufactured and services rendered 31.1 14,277,509 10,781,382
Finished goods purchased 2,242,640 1,116,812
16,706,472 12,110,632
Closing inventory of finished goods 22 (211,621) (186,323)
16,494,851 11,924,309

31.1 Cost of goods manufactured and services rendered

Opening inventories
Raw materials and components 22 522,555 314,885
Work-in-process 22 621,990 327,244
Goods-in-transit 22 210,947 172,785
1,355,492 814,914
Purchase of goods and services 13,007,268 8,607,870
Salaries, wages and employees welfare 1,696,878 1,350,453
Gratuity 66,051 72,035
Provident fund contribution 39,737 33,264
Royalty 31.1.1 28,339 38,589
Research and development 3,994 2,165
Commission 14,621 15,469
Fuel, power and water 101,010 73,103
Repairs and maintenance 93,991 71,304
Rent, rates and taxes 146,705 82,605
Vehicle Ijarah rentals - 42
Liquidated damages on contracts 67,112 115,355
Provision for warranty - net 45,596 69,073
Provision for losses on sales contracts - net 123,384 6,974
Insurance 13,080 46,666
Reversal of provision for slow moving and obsolete items of inventories - net (18,051) (30,123)
Inventories written off 43,913 14,716
IT, networking and data communication 232,165 198,694
Depreciation and amortisation 19 121,158 122,803
Travelling and conveyance 234,406 156,133
Transportation 403,468 254,495
Stationery, telex and telephone 30,595 28,660
Security 40,329 29,007
Exchange gain - net (1,532,603) (85,534)
Legal and professional 15,418 6,222
Bank charges 96,426 75,417
Others 2,973 5,723
16,473,455 12,176,094
Closing inventories
Raw materials and components 22 (520,569) (522,555)
Work-in-process 22 (1,191,025) (621,990)
Goods-in-transit 22 (414,011) (210,947)
(2,125,605) (1,355,492)
14,347,850 10,820,602
Sale of scrap (70,341) (39,220)
14,277,509 10,781,382

31.1.1 Represents royalty payable to the parent Company, Siemens AG, having registered office in Wittlesbacherplatz 2, 80333
Munich, Germany.

SIEMENS ANNUAL REPORT 2022 61

 Notes to the Financial Statements

2022 2021
32. MARKETING AND SELLING EXPENSES Note (Rupees in ‘000)

Salaries and employees welfare 594,433 506,647

Gratuity 45,155 46,385
Provident fund contribution 25,278 23,954
Business support services 61,210 49,914
Fuel, power and water 17,667 15,909
Repairs and maintenance 16,458 11,541
Rent, rates and taxes 9,354 12,556
Vehicle Ijarah rentals - 359
Advertising and sales promotion 31,090 7,371
Insurance 3,102 8,082
Trade, other receivables and deposits written off 42,266 3,258
Discounting of long-term loans - net 334 (118)
IT, networking and data communication 93,783 75,144
Depreciation and amortisation 19 29,197 23,068
Travelling and conveyance 31,767 7,039
Transportation 4,403 2,710
Stationery, telex and telephone 13,149 8,864
Security 6,521 4,118
Legal and professional 4,327 3,319
Bank charges 13,648 10,878
Fees and purchased services 23,272 9,085
1,066,414 830,083
Commission income (33,866) (1,814)
Sale of scrap (27,849) -
1,004,699 828,269

33. ALLOWANCE FOR EXPECTED CREDIT LOSSES

Loss allowance on trade receivables - net 50.2 580,039 71,419

Loss allowance on contract assets - net 50.2 277,403 10,145
Loss allowance on deposits and other receivables - net 50.2 14,037 68,382
871,479 149,946

34. GENERAL ADMINISTRATIVE EXPENSES

Salaries and employees welfare 235,332 219,955

Gratuity 3,551 3,660
Provident fund contribution 811 900
Fuel, power and water 10,255 6,859
Repairs and maintenance 4,667 5,562
Rent, rates and taxes 10,445 15,971
Insurance 2,552 2,361
IT, networking and data communication 6,040 7,568
Depreciation and amortisation 19 6,107 2,521
Donations 34.1 7,000 1,637
Auditors’ remuneration 43 8,663 7,804
Travelling and conveyance 14,865 7,907
Stationery, telex and telephone 5,071 2,292
Security 8,906 7,572
Legal and professional 226 5,970
Fees and purchased services 16,042 15,646
340,533 314,185
Sale of scrap - (276)
340,533 313,909

34.1 Recipients of donations do not include any donee in which a director or their spouse had any interest.

62 SIEMENS ANNUAL REPORT 2022

 Notes to the Financial Statements

2022 2021
35. OTHER INCOME (Rupees in ‘000)

Gain on sale of property, plant and equipment - net 7,768 5,501

Insurance and other claims 300 8,543
Liabilities no longer payable written back 24,184 51,031
32,252 65,075

36. OTHER OPERATING EXPENSES

Workers’ Profit Participation Fund (WPPF) 139,113 61,580

Workers’ Welfare Fund (WWF) 53,257 23,732
192,370 85,312

37. FINANCIAL INCOME

Interest on other receivables 7,324 6,357

Income on amounts placed with banks under deposit accounts 29,027 57,264
36,351 63,621

38. FINANCIAL EXPENSES

Interest on long-term financing 2,548 6,633

Interest on lease liabilities 9,945 12,842
Interest on short-term running finances 32,747 464
Interest on other payables 14,078 13,758
59,318 33,697

39. INCOME TAX

Current
For the year 653,258 260,952
For prior year 56,075 -
709,333 260,952
Deferred 199,380 279,098
908,713 540,050

39.1 Reconciliation of income tax

Accounting profit 2,589,562 1,390,055

Enacted tax rate 29% 29%

Tax on accounting profit at enacted rate 750,973 403,116

Tax effect of income subject to lower tax rate 22,375 141,037
Super tax current year 79,290 -
Prior year tax 56,075 -
Foreign tax - (4,103)
908,713 540,050

40. BASIC AND DILUTED EARNINGS PER SHARE

There is no dilutive effect on the basic earnings per share of the Company, which is based on:

2022 2021
(Rupees in ‘000)
Net profit for the year 1,680,849 850,005

(No. of shares)
Weighted average number of Ordinary shares 8,247,037 8,247,037

(Rupees)
Basic and diluted earnings per share 203.81 103.07

SIEMENS ANNUAL REPORT 2022 63

 Notes to the Financial Statements

2022 2021
41. CASH GENERATED FROM OPERATIONS Note (Rupees in ‘000)

Profit before tax 2,589,562 1,390,055

Adjustment for non-cash items:
Depreciation and amortisation 19 156,462 148,392
Reversal of provision for slow moving and obsolete items
of inventories - net 31.1 (18,051) (30,123)
Loss allowance on trade receivables - net 33 580,039 71,419
Trade, other receivables and deposits written off 32 42,266 3,258
Inventories written off 31.1 43,913 14,716
Loss allowance on contract assets - net 33 277,403 10,145
Loss allowance on deposits and other receivables - net 33 14,037 68,382
Provision for warranty - net 31.1 45,596 69,073
Provision for losses on sales contracts - net 31.1 123,384 6,974
Discounting of long-term loans - net 32 334 (118)
Provision for Workers’ Welfare Fund (WWF) 36 53,257 23,732
Provision for Workers’ Profit Participation Fund (WPPF) 36 139,113 61,580
Gain on sale of property, plant and equipment - net 35 (7,768) (5,501)
Gain on sale of assets classified as held for sale - (247,851)
Liabilities no longer payable written back 35 (24,184) (51,031)
Gratuity 9.1.5 114,757 122,080
Financial expenses 38 59,318 33,697
Financial income 37 (36,351) (63,621)
Adjustment for other items:
Long-term loans and trade receivables (359,768) 2,546
Long-term deposits and prepayments 2,212 (3,042)
Retention money payable 227 (42,308)
Other non-current liabilities (25,710) 18,505
Working capital changes 41.1 (3,311,447) 688,599
458,601 2,289,558

41.1 Working capital changes

(Increase) / decrease in current assets

Inventories (839,324) (529,178)
Trade receivables (1,763,227) (2,339,640)
Contract assets (2,148,684) 645,302
Loans and advances (360,395) 53,008
Deposits and short-term prepayments (417,907) 21,595
Derivative financial instruments (1,535,420) (68,805)
Other receivables (40,229) (118,964)
(7,105,186) (2,336,682)
Increase / (decrease) in current liabilities
Trade and other payables 2,316,762 976,956
Contract liabilities 1,538,533 2,125,265
Provisions (61,556) (76,940)
3,793,739 3,025,281
(3,311,447) 688,599

64 SIEMENS ANNUAL REPORT 2022

 Notes to the Financial Statements

2022 2021
42. CASH AND CASH EQUIVALENTS Note (Rupees in ‘000)

Cash and bank balances 29 1,474,580 2,402,311

43. AUDITORS’ REMUNERATION

Audit fee 5,751 5,229

Fee for certifications, review of half
yearly interim financial information, code of corporate
governance and audits of retirement funds 1,912 1,625
Out of pocket expenses 1,000 950
8,663 7,804

44. PROVIDENT FUND

Investments out of provident fund have been made in accordance with the provisions of the Section 218 of the Act and the
rules formulated for this purpose.

45. EMPLOYEES 2022 2021

Total number of employees as of reporting date 576 536

Average during the year 547 529

46. REMUNERATION OF THE CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES

The aggregate amounts charged in these financial statements in respect of remuneration and benefits of the chief executive
and executives of the Company are as follows:

Chief Executive Executives

2022 2021 2022 2021
------------------------------(Rupees in ‘000)--------------------------------------

Salaries and allowances - fixed 95,758 75,218 1,283,662 911,387

Salaries and allowances - bonus 35,124 25,141 355,661 248,173
Retirement benefits and Company’s contribution
to provident fund 339 236 105,121 88,459
Perquisites and benefits:
- Medical / social security - 42 18,256 12,768
- Share based benefits 827 1,273 3,267 17,281
- Education fees (children) - - 3,328 3,644
- Club membership - - 144 149
132,048 101,910 1,769,439 1,281,861

1 1 254 193

46.1 The Chief Executive has been provided with cars along with security in accordance with the entitlements.

46.2 The aggregate amount charged in these financial statements in respect of directors’ fee paid to three non-executive directors
(2021: three) was Rs 4.450 million (2021: Rs 5.350 million).

46.3 Certain executives of the Company are also provided with accommodation, free use of Company’s cars, security and generating
set in accordance with their entitlements.

46.4 An amount of Rs 224.288 million (2021: Rs 194.947 million) was incurred on account of compensation to key management
personnel, the details of which are as follows:

2022 2021
(Rupees in ‘000)

Short-term benefits 221,569 179,229

Post-employment benefits 1,892 1,736
Share based benefits 827 13,982
224,288 194,947

SIEMENS ANNUAL REPORT 2022 65

 Notes to the Financial Statements

47. SHARE BASED BENEFITS

Certain employees are entitled to participate in the share based payment plans of Siemens AG. Siemens AG grants stock
awards as a form of share-based payment to the employees. These awards are subject to a restriction period of three to four
years. Stock awards forfeit if the employment with the Company terminates prior to the expiration of the restriction period
and can not be transferred, sold, pledged or otherwise encumbered.

The allocation of stock awards as a share-based payment has been increasingly tied to corporate performance criteria. The
target achievement for the performance criteria ranges between 0% and 200%.

Further, the Share Matching Plan gives employees an opportunity to invest in Siemens AG’s shares. After a holding period of
three years, the Company will match every three shares bought with one free share.

These stocks are remeasured to their fair value at each reporting date. Details of stock awards are as follows:

2022 2021
Number of Awards

Balance as at beginning of the year 8,921 6,762

Granted during the year 828 3,571
Expired / paid during the year (2,498) (1,412)
Balance as at end of the year 7,251 8,921

Total expenses for share based benefits during the year ended September 30, 2022 was Rs 11.283 million
(2021: Rs 46.837 million). The liabilities as of September 30, 2022 aggregated to Rs 56.894 million (2021: Rs 81.897 million)
and is reported under accrued and deferred liabilities.

48. TRANSACTIONS WITH RELATED PARTIES

Related parties comprise of Siemens AG (parent company), its subsidiaries and associates and other companies with
common directorship with significant influence on other companies, employees retirement benefit funds and key
management employees. Transactions with related parties are carried at agreed terms as approved by the Board of
Directors of the Company. Transactions with related parties can be summarised as follows:

2022 2021
Note (Rupees in ‘000)
Parent company
Sales of goods and rendering of services 5,984 13,368
Purchases of goods and receipt of services 2,331,208 2,090,481
Dividends paid 283,212 61,568

Associated companies
Sales of goods and rendering of services 607,457 523,670
Purchases of goods and receipt of services 3,971,271 3,253,500
Commission and allowances earned 33,866 1,814
Costs reimbursements 11,737 15,496
Financial expenses - net - 26
Financial income - net 150 -

Others
Dividends paid 481 11
Contribution to employees’ retirement benefit funds 135,002 131,484
Compensation to key management personnel 46.4 224,288 194,947

48.1 Amounts due from and due to related parties, amounts due from executives and remuneration of the Chief Executive, directors
and executives are disclosed in the relevant notes to these financial statements.

66 SIEMENS ANNUAL REPORT 2022

 Notes to the Financial Statements

48.2 During the year, the Company entered into various transactions, arrangements or agreements with related parties, including
those incorporated outside Pakistan. The Company has no shareholdings in any of the below mentioned companies.

Name and Country of Incorporation

Parent Company
Siemens AG, Germany

Affiliated / Group Companies

Dresser Rand Company, USA
Dresser Rand SAS, France
Dresser Rand Field Operations, UAE
ISCOSA Industries and Maintenance, Saudi Arabia
PT Siemens, Indonesia
Rousch (Pakistan) Power Ltd, Pakistan
Siemens Aktiengesellschaft, Austria
Siemens Capital Middle East Ltd., UAE
Siemens Circuit Protection, China
Siemens Doo Beograd, Serbia
Siemens Electrical Drives Ltd., China
Siemens Energy AB, Sweden
Siemens Energy Canada Ltd., Canada
Siemens Energy Global GmbH & Co. KG, Germany
Siemens Energy INC, USA
Siemens Energy Industrial, United Kingdom
Siemens Energy Kft., Hungary
Siemens Energy Limited, Saudi Arabia
Siemens Energy Limited, Thailand
Siemens Energy Limited, United Kingdom
Siemens Energy Limited, Vietnam
Siemens Energy LLC, Oman
Siemens Energy LLC, UAE
Siemens Energy Pte Ltd., Singapore
Siemens Energy S.R.L, Italy
Siemens Energy SAE, Egypt
Siemens Energy Sp. Zoo, Poland
Siemens Energy Unipessoal Lda, Portugal
Siemens Energy WLL, Qatar
Siemens Gamesa Renewable Energy (Private) Limited, Pakistan
Siemens Gas and Power GmbH & Co KG, Germany
Siemens Healthcare (Private) Limited, Pakistan
Siemens High Voltage Switchgear, China
Siemens Industrial LLC, UAE
Siemens Industry INC, USA
Siemens Industry Software (Private) Limited, Pakistan
Siemens International Trading Ltd., China
Siemens Ltd., Saudi Arabia
Siemens Ltd., Vietnam
Siemens Malaysia Sdn. Bnd, Malaysia
Siemens Middle East Limited, UAE
Siemens Power Automation Ltd., China
Siemens Pte. Ltd, Singapore
Siemens s.r.o., Czech Republic
Siemens SA, Portugal
Siemens Sanayi Ve Ticaret As, Turkey
Siemens SAS, France
Siemens SPA, Italy
Siemens Standard Motors Ltd., China
Siemens Switchgear Ltd. Shanghai, China
Siemens Transformer (Guangzhou), China
Siemens Transformer (Jinan) Co., China
Siemens Transformer (Wuhan) Company, China
Siemens WLL, Qatar
Trench Austria GmbH, Austria
Trench Germany GmbH, Germany
Trench Limited, Canada

SIEMENS ANNUAL REPORT 2022 67

 Notes to the Financial Statements

Actual Actual
Capacity Production Production
2022 2021
49. PLANT CAPACITY AND ACTUAL PRODUCTION

Switchgears (in numbers) 2,200 917 873

49.1 The under utilisation is mainly attributed to reduced demand.

50. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s financial liabilities mainly comprise of long-term financing, lease liabilities, trade and other payables and
short-term running finances. The main purpose of financial liabilities is to raise finance for the Company’s operations. The
Company’s financial assets comprise deposits, loans, trade and other receivables, contract assets and cash and bank balances.
The Company is exposed to market risk, credit risk and liquidity risk. No changes were made to policies, procedures and
objectives of the Company during the year ended September 30, 2022.

The Board of Directors has the overall responsibility for the establishment and oversight of the Company’s risk management
framework. The Board is responsible for developing and monitoring the Company’s risk management policies.

50.1 Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices such as foreign exchange rates, interest rates and equity price risks. The objective of market risk management
is to manage and control market risk exposures within an acceptable range.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates.

The Company manages its foreign currency risk by hedging its exposure to fluctuations on the translations into Rupees
through derivatives such as forward covers against its foreign currency denominated payables and receivables, where
possible in line with the regulations of State Bank of Pakistan. However, as of reporting date there were no such contracts.

The Company’s exposure to foreign currency risk in major currencies at their gross values is as follows:

2022 2021
(AED in ‘000)

Trade and other receivables 6,966 13,283

Cash and bank balances 3,307 4
Trade and other payables (474) (4,296)
9,799 8,991

2022 2021
(EUR in ‘000)

Trade and other receivables 11,049 7,663

Trade and other payables (10,083) (9,371)
966 (1,708)

2022 2021
(USD in ‘000)

Trade and other receivables 10,641 12,128

Cash and bank balances 1,879 2,552
Trade and other payables (5,281) (3,169)
7,239 11,511

68 SIEMENS ANNUAL REPORT 2022

 Notes to the Financial Statements

Sensitivity of the Company’s profit before tax to a reasonably possible change in exchange rate of currencies applied to foreign
currency assets and liabilities as at September 30, 2022 keeping all other variables constant is as follows:

2022 2021

Change in exchange rate + 1% 1%

Effect on profit before tax (Rs ‘000) + 23,857 19,186

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company’s exposure to the risk of changes in market interest rate relates primarily to the Company’s
running finances.

The Company’s policy is to keep its short-term running finances at the lowest level by effectively utilising the positive cash
and bank balances. Further, the Company also minimises the interest rate risk by investing in fixed rate investments like Term
Deposit Receipts and / or bank deposits, where possible.

At the reporting date, the interest rate profile of the Company’s interest bearing financial instruments was as follows:

2022 2021 2022 2021

Effective rates (%) (Rupees in ‘000)
Financial Assets

Bank balances (PKR) 9.40 5.69 8,317 13,148

Financial Liabilities

Long-term financing (PKR) 3.00 3.00 34,222 166,540

A change of 100 basis points (1%) in interest rates at the reporting date would have changed the Company’s profit before tax
for the year by the amount shown below, with all other variables held constant.

2022 2021

Effect on profit before tax (Rs ‘000) + 2,803 11,512

Equity price risk

Equity price risk is the risk of loss arising from movements in prices of equity investments. The Company is not exposed to
any equity price risk, as the Company does not have any investment in equity shares.

50.2 Credit risk

Credit risk represents the accounting loss that would be recognised at the reporting date if counter parties fail completely
to perform as contracted. It mainly comprise of trade and other receivables, contract assets, advances to suppliers, trade
deposits and bank balances. The Company’s maximum exposure to credit risk at the reporting date is as follows:

SIEMENS ANNUAL REPORT 2022 69

 Notes to the Financial Statements

2022 2021
(Rupees in ‘000)

Category - at amortised costs

Advances to suppliers 470,861 99,251
Trade deposits 520,208 87,177
Trade receivables 12,249,376 10,750,629
Contract assets 3,424,503 1,553,222
Other receivables 315,934 282,858
Bank balances 1,474,394 2,401,677
18,455,276 15,174,814

Concentration of credit risk

The sector wise analysis of receivables including trade receivables, contract assets, advances to suppliers, trade deposits and
other receivables based on their gross values is given below:

2022 2021
(Rupees in ‘000) % (Rupees in ‘000) %
Government sector
Energy 4,065,903 21 2,995,253 21
Housing 508,790 3 653,668 5
Aviation 413,657 2 403,977 3
Engineering 314,771 2 247,372 2
Civil works 282,397 2 322,876 2
Petroleum 198,290 1 138,582 1
Finance 7,238 0 251,882 2
Health and Education 1,215 0 7,219 0
Others 53,878 0 160,862 1
Sub-total 5,846,139 31 5,181,691 37

Private sector
Energy 10,769,351 56 8,149,455 57
Civil works 650,229 3 208,627 1
Finance 462,299 3 33,504 0
Fertilizer 223,380 1 79,694 1
Engineering 181,886 1 57,048 0
Petroleum 118,547 1 119,740 1
Housing 72,364 0 70,298 0
Sugar 70,340 0 61,293 0
Steel 69,933 0 5,644 0
Cement 50,609 0 11,281 0
Dealers and agents 46,601 0 44,792 0
Others 807,609 4 377,103 3
Sub-total 13,523,148 69 9,218,479 63
Total 19,369,287 100 14,400,170 100

Trade receivables

To mitigate the credit risk against trade receivables, the Company has a system of assigning credit limits to its customers
based on an extensive credit rating scorecards. Outstanding customer receivables are regularly monitored. The Company
endeavors to cover the credit risks on trade receivables, where possible, by restricting credit facility to the projects which
are financed by multilateral financial institutions and / or financed by special allocation of funds by the provincial / federal
governments. Business with customers is also secured by way of letters of credits, where possible. As at September 30, 2022,
trade receivables amounting to Rs 337.143 million (2021: Rs 1,005.016 million) were secured through letters of credit and
bank guarantees.

70 SIEMENS ANNUAL REPORT 2022

 Notes to the Financial Statements

The ageing of trade receivables at the reporting date is as follows: 2022 2021
(Rupees in ‘000)
Related parties
Not yet due 109,816 62,415
Past due 1-180 days 94,316 5,325
Past due 181-360 days 5,573 23
Past due 361-720 days 324 -
210,029 67,763

Others
Not yet due 9,426,708 8,442,394
Past due 1-180 days 1,876,947 1,675,492
Past due 181-360 days 508,340 369,927
Past due 361-720 days 582,411 137,849
Past due 721-1080 days 82,712 165,472
Over 1080 days 1,242,649 1,035,353
13,719,767 11,826,487

Less: Loss allowance (1,680,420) (1,143,621)

12,039,347 10,682,866

12,249,376 10,750,629

2022 2021
The movement in the loss allowance in respect of trade receivables during the (Rupees in ‘000)
year was as follows:

Balance at beginning of the year 1,143,621 1,087,001

Loss allowance during the year - net 580,039 71,419
Write offs (43,240) (14,799)
Balance at end of the year 1,680,420 1,143,621

The loss allowance in respect of trade receivables include Rs 0.159 million (2021: 0.01 million) held against trade receivables
due from related parties.

Contract assets
2022 2021
The movement in the loss allowance in respect of contract assets during the (Rupees in ‘000)
year was as follows:

Balance at beginning of the year 257,449 247,304

Loss allowance during the year - net 277,403 10,145
Balance at end of the year 534,852 257,449

Trade deposits and other receivables

The movement in the loss allowance in respect of trade deposits and other 2022 2021
receivables during the year was as follows: (Rupees in ‘000)

Balance at beginning of the year 262,582 194,200

Loss allowance during the year - net 14,037 68,382
Write offs (293) -
Balance at end of the year 276,326 262,582

Cash and bank balances

The Company keeps its surplus funds with Standard Chartered Bank (Pakistan) Limited which currently has long term and
short term rating of AAA and A1+ respectively.

SIEMENS ANNUAL REPORT 2022 71

 Notes to the Financial Statements

50.3 Liquidity risk

Liquidity risk is the risk that the Company will not be able meet its financial obligations as they fall due. Prudent liquidity risk
management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate
amount of committed credit facilities and the ability to close out market positions. Due to the dynamic nature of the Company’s
business, the treasury maintains flexibility in funding by maintaining availability under control committed credit lines. The
facilities available to the Company have been detailed in notes 15.1 to 15.3 to these financial statements.

The table below summarises the maturity profile of the Company’s financial liabilities as at the reporting date:

Carrying Less than 12

1 to 2 years 2 to 5 years
amount months

--------------------------------(Rupees in ‘000)----------------------------
Financial liabilities
2022

Long-term financing 34,222 34,222 - -

Lease liabilities 80,325 32,018 28,226 20,081
Retention money 3,262 - 3,262 -
Trade and other payables 8,583,626 8,583,626 - -
8,701,435 8,649,866 31,488 20,081

Financial liabilities
2021

Long-term financing 166,540 135,099 31,441 -

Lease liabilities 111,654 31,330 32,018 48,306
Retention money 3,035 - 1,974 1,061
Trade and other payables 6,282,812 6,282,812 - -
6,564,041 6,449,241 65,433 49,367

51. FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the
principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit price)
regardless of whether that price is directly observable or estimated using another valuation technique.

The carrying values of all financial assets and liabilities are estimated to approximate their fair values. As at September
30, 2022, the Company’s derivative financial instruments have been valued under level 2 of fair valuation hierarchy which
requires inputs other than quoted prices that are observable for the asset or liability, either directly (as prices) or indirectly
(derived from prices).

52. CAPITAL RISK MANAGEMENT

The Company’s objectives when managing capital is to safeguard the Company’s ability to continue as a going concern in
order to provide returns for shareholders and benefits for other stakeholders and to maintain a strong capital base.

The Company manages its capital structure by monitoring return on net assets and makes adjustment to it in the light of
changes in economic conditions.

The Company is not subject to externally imposed capital requirements.

As of the date of statement of financial position, the Company’s debt comprise of long-term interest bearing re-financing
obtained under SBP scheme. The Company has no material gearing risk in the current year nor any in the prior year.

72 SIEMENS ANNUAL REPORT 2022

 53. INFORMATION ABOUT OPERATING BUSINESS SEGMENTS

The Company is operating through three business portfolios, namely Smart Infrastructure, Digital Industries and Energy focusing on the areas of intelligent infrastructure for buildings and distributed energy systems, automation and
digitalization in the process and manufacturing and power generation and distribution.

53.1 The details of information about operating business segments is as follows:

(All rupees in ‘000)
Segment Smart Infrastructure Digital Industries Energy
Transmission Company as
Distribution Power Gen. Others Eliminations
Business Units Digital Grid Others Total Software Others Total Solutions & Total a whole
Systems & services
Services
2022 -----------------------------------------------------------------------------------------------------------------------------Rs ‘000---------------------------------------------------------------------------------------------------------------------------------

REVENUE
Sales to external customers 2,688,481 1,052,889 179,340 3,920,710 2,241,455 1,341,294 3,582,749 7,995,534 5,981,999 13,977,533 3,217 21,484,209
Inter-segment sales 241,893 343,427 18,217 603,537 - 11,663 11,663 - - - - (615,200) -
Total revenue 2,930,374 1,396,316 197,557 4,524,247 2,241,455 1,352,957 3,594,412 7,995,534 5,981,999 13,977,533 3,217 (615,200) 21,484,209

RESULT

Segment result (355,177) 78,339 5,842 (270,996) 9,271 (10,159) (888) 1,236,958 1,622,964 2,859,922 18,057 - 2,606,095
Financial expenses (45,560)
Financial income 29,027
Income tax (908,713)
Net profit for the year 1,680,849

OTHER INFORMATION

Capital expenditure 13,627 507 970 15,104 5,511 37,294 42,805 35,714 9,529 45,243 -

Depreciation 18,432 7,584 121 26,137 5,982 11,678 17,660 18,422 22,288 40,710 452

Non-cash expenses other than depreciation 514 (1,207) 196 (497) 1,574 985 2,559 2,307 (1,793) 514 (352)

ASSETS AND LIABILITIES

Segment assets 2,517,326 1,063,889 48,187 3,629,402 588,156 784,873 1,373,029 12,916,445 2,717,627 15,634,072 374,080 - 21,010,583

Segment liabilities 2,006,388 839,107 126,566 2,972,061 1,036,654 774,792 1,811,446 5,937,343 3,137,490 9,074,833 266,300 - 14,124,640

2021

REVENUE
Sales to external customers 2,290,270 639,185 162,926 3,092,381 1,773,503 1,542,866 3,316,369 3,892,299 3,952,867 7,845,166 95,034 14,348,950
Inter-segment sales 453,733 475,790 - 929,523 2,736 15,804 18,540 472 - 472 - (948,535) -
Total revenue 2,744,003 1,114,975 162,926 4,021,904 1,776,239 1,558,670 3,334,909 3,892,771 3,952,867 7,845,638 95,034 (948,535) 14,348,950

RESULT

Segment result 154,981 103,493 9,447 267,921 (20,077) 153,200 133,123 77,160 616,886 694,046 9,790 - 1,104,880
Gain on disposal of assets classified as held for sale 247,851
Financial expenses (19,940)
Financial income 57,264
Income tax (540,050)
Net profit for the year 850,005

OTHER INFORMATION

Capital expenditure 4,510 9,654 - 14,164 3,102 15,362 18,464 11,765 31,684 43,449 37

Depreciation and amortisation 19,199 8,554 51 27,804 7,249 8,538 15,787 24,206 25,076 49,282 650
Non-cash expenses other than
depreciation and amortisation 5,621 1,801 146 7,568 2,436 2,259 4,695 5,023 1,307 6,330 560

ASSETS AND LIABILITIES

SIEMENS ANNUAL REPORT 2022

Segment assets 2,411,504 645,177 56,445 3,113,126 500,135 717,247 1,217,382 8,949,624 871,273 9,820,897 388,764 - 14,540,169
Notes to the Financial Statements

Segment liabilities 1,658,382 720,687 105,950 2,485,019 653,716 702,976 1,356,692 4,368,000 1,582,851 5,950,851 389,302 - 10,181,864

73
 Notes to the Financial Statements

53.2 Geographical information

2022 2021
Revenues (Rupees in ‘000)

Pakistan 20,986,489 13,635,022

Afghanistan 30,331 189,842
United Arab Emirates 74,550 191,299
Oman 107,658 34,036
Iraq 89,714 120,639
Saudi Arabia 57,695 70,400
Libya 73,934 57,062
Qatar 28,758 25,890
Others 35,080 24,760
21,484,209 14,348,950

The revenue information above is based on the location of customers.

Non-current assets

Pakistan 1,004,774 799,540

United Arab Emirates - 67
Afghanistan 313 384
1,005,087 799,991

Non-current assets for this purpose consist of property, plant and equipment, right-of-use assets and other long-term assets
except for deferred tax asset (net).

53.3 Transfer prices between operating segments are on commercial terms and conditions.

53.4 Segment assets and liabilities

Reportable segments’ assets are reconciled to total assets as follows:

2022 2021
(Rupees in ‘000)

Assets for reportable segments 21,010,583 14,540,169

Corporate assets 336,181 282,293
Unallocated
Deferred tax asset - net 356,874 579,912
Cash and bank balances 1,474,580 2,402,311
Total assets as per statement of financial position 23,178,218 17,804,685

Reportable segments’ liabilities are reconciled to total liabilities as follows:

Liabilities for reportable segments 14,124,640 10,181,864

Corporate liabilities 275,048 406,761
Unallocated
Long-term financing 34,222 166,540
Deferred Government grant - 4,529
Trade and other payables 978,050 909,276
Taxation - net 574,729 329,418
Total liabilities as per statement of financial position 15,986,689 11,998,388

Segment assets include all operating assets used by a segment and consist principally of receivables, inventories and property,
plant and equipment, net of impairment and provisions but do not include deferred taxes. Segment liabilities include all
operating liabilities and consist principally of accounts payable, advances, lease liabilities, accrued and other liabilities.

74 SIEMENS ANNUAL REPORT 2022

 Notes to the Financial Statements

53.5 Segment performance is generally evaluated based on certain key performance indicators including business volume, gross
profit, marketing and selling expenses, profit from operations and free cash flows.

53.6 Financial income and expense (other than directly attributable to a contract) are not allocated to segments, as this type of
activity is driven by the central treasury function, which manages the cash position of the Company.

53.7 Two (2021: two) of the Company’s customers contributed Rs 6,656.210 million (2021: Rs 5,368.025 million) and each customer
individually exceeded 10% of the revenue.

54. OPERATIONS IN AFGHANISTAN

2022 2021
54.1 Results of the Afghanistan Operations (Rupees in ‘000)

Net sales and services 30,331 189,842

Cost of sales and services (165,703) (173,936)
Gross (loss) / profit (135,372) 15,906

Marketing and selling expenses (16,479) (14,444)

Allowance for expected credit losses (313,091) (16,667)
General administrative expenses (898) (4,330)
(330,468) (35,441)

Other operating income - net 3 6

Loss before tax (465,837) (19,529)

Income tax - 4,103

Net loss for the year (465,837) (15,426)

54.2 Cash flows from the Afghanistan Operations

Net cash (used in) / generated from operating activities (73,694) 326,543
Net cash used in investing activities (197) (162)
Net cash flows from Afghanistan Operations (73,891) 326,381

54.3 Assets of the Afghanistan Operations

Property, plant and equipment 313 384

Trade receivables 402,297 531,385
Contract assets - 168,522
Other receivables 2,120 1,554
Cash - 525
404,730 702,370

54.4 Liabilities of the Afghanistan Operations

Other non-current liabilities 40 124

Trade and other payables 838,372 883,408
Provisions 74,906 74,909
913,318 958,441

54.5 For segment reporting, operations in Afghanistan have been classified in Transmission Solutions and Services under Energy
business segment (note 53).

SIEMENS ANNUAL REPORT 2022 75

 Notes to the Financial Statements

55. The geographical location of Company’s offices and plant are given below:

Karachi Lahore Dubai

Head Office & Plant 15-A, 2nd floor, State Life Building Office No. 2006, 2nd floor
B-72 Estate Avenue, S.I.T.E Davis Road Al Waha Community Building
Nad Al Hamar Road

City Office Islamabad Afghanistan

Office Wing Suite No. 209(b) 10th floor, UBL Building House No. 635, Street No. 11
2nd floor, Park Towers, Clifton Jinnah Avenue, Blue Area Dar-ul-Aman Road, District 6
Kartahe Seeh
Kabul

56. EVENTS OCCURING AFTER BALANCE SHEET DATE

The Board of Directors of the Company in their meeting held on October 4, 2022, approved, in principle, the sale of the
Company’s ERP value added reselling solution and service business. The sale is subject to applicable regulatory approvals.
Since the criteria stated in IFRS-5 ‘Non-current Assets Held for Sale and Discontinued Operations’ have not been fully met till
the reporting date, accordingly, the afore-mentioned business has not been classified and presented as ‘Held for Sale’ in these
financial statements.

57. CORRESPONDING FIGURES

Certain corresponding figures have been reclassified and rearranged for the purpose of better presentation and comparison of
transactions in the financial statements of the Company, the effect of which is not material.

58. DATE OF AUTHORISATION

These financial statements were authorised for issue by the Board of Directors of the Company in the meeting held on
November 24, 2022.

Markus Strohmeier Syed Muhammad Ahsan Ghazali Qazi Sajid Ali

Managing Director Chief Financial Officer Director

76 SIEMENS ANNUAL REPORT 2022

Siemens (Pakistan) Engineering Co. Ltd.
Incorporation Number: CUIN 0000617
Pattern of holding of the Shares held by the Shareholders
As at September 30, 2022

Shareholding
Number of Shareholder Total Shares Held
From To

853 1 100 shares 22,934

419 101 500 shares 98,857

91 501 1,000 shares 70,503

71 1001 5,000 shares 143,173

12 5001 10,000 shares 80,752

2 10,001 15,000 shares 24,330

1 15,001 20,000 shares 18,923

1 20,001 25,000 shares 24,312

2 25,001 30,000 shares 52,950

1 30,001 35,000 shares 32,700

1 70,001 75,000 shares 70,031

1 75,001 80,000 shares 78,830

1 85,001 90,000 shares 86,308

1 115,001 120,000 shares 119,150

1 145,001 150,000 shares 148,131

1 705,001 710,000 shares 705,662

1 1,015,001 1,020,000 shares 1,018,371

1 5,450,001 5,455,000 shares 5,451,120

1461 8,247,037

SIEMENS ANNUAL REPORT 2022 77

 Siemens (Pakistan) Engineering Co. Ltd.
Categories of Shareholders
As on September 30, 2022

Particulars Shares held Percentage

DIRECTORS AND CHIEF EXECUTIVE 14,100 0.17%

Mr. Markus Strohmeier 13,050
Mr. Qazi Sajid Ali 500
Ms. Ayla Majid 550

Associated companies,undertakings and related parties

Siemens AG,Germany 6,156,782 74.65%

NIT and ICP

National Investment Trust 1,042,683 12.64%

Banks 130,959 1.59%

The Bank of Punjab 119,150
MCB Bank Limited 11,280
National Bank of Pakistan 529

Insurance Companies
Adamjee Insurance Co.Limited 148,131 1.80%

Modarabas and Mutual Funds

CDC-Trustees NIT-Equity Market Opportunity Fund 78,830 0.96%

Public Sector Companies

Pakistan National Shipping Corporation 6,930 0.08%

General Public 369,788 4.48%

Local 334,107
Foreign 35,681

Others 298,834 3.62%

Trustee National Bank of Pakistan Employees Pension Fund 86,308
IGI Investments (Private) Limited 70,031
Acacia Partners LP 32,700
Noman Abid Holdings Limited 25,850
Amin Tai (Private) Limited 27,100
Acacia Conservation Master Fund (Offshore) LP 6,682
Premier Fashion (Private) Limited 7,750
Acacia Institutional Partners LP 3,400
Trustee National Bank of Pakistan Employees Benevolent Fund Trust 3,029
Memon Securities (Private) Limited 18,923
United Trading & Manufacturing (Private) Limited 1,500
Siza (Private) Limited 1,440
Trustees Al-Badar Welfare Trust 864
FDM Capital Securities (Private) Limited 500
Acacia II Partners LP 500
Fikrees (Private) Limited 250
Spectrum Securities Limited-MF 10,000
MRA Securities Limited-MF 2,000
NH Capital (Private) Limited 5
Maple Leaf Capital Limited 1
IGI Finex Securities Limited 1

Total 8,247,037 100.00%

78 SIEMENS ANNUAL REPORT 2022

Notice of Annual General Meeting

Notice is hereby given that the Seventieth (70th) Annual General Meeting (“Meeting”) of the Members of Siemens (Pakistan)
Engineering Company Limited (the “Company”) will be held on January 12, 2023, at 11:00 a.m. at “The Dawood Foundation”
Business Hub, Ground Floor, Dawood Centre, M.T. Khan Road, Karachi to transact the following business:

ORDINARY BUSINESS

1. To confirm the minutes of the annual general meeting held on January 13, 2022.

2. To receive, consider and adopt the audited financial statements for the financial year ended September 30, 2022, and
reports of the auditors and directors thereon.

3. To consider and declare cash dividend of Rs. 46 per share (460%) for the financial year ended September 30, 2022.

4. To appoint EY Ford Rhodes, Chartered Accountants, as Auditors of the Company till conclusion of next annual general
meeting and to fix their remuneration for the financial year ending September 30, 2023. The present auditors EY Ford
Rhodes, Chartered Accountants, being eligible, have offered themselves for reappointment.

5. To transact such other ordinary business as may be placed before the meeting with the permission of the Chair.

By order of the Board of Directors

Khurram M. Siddique
Company Secretary Karachi: December 21, 2022

Notes:

Share Transfer Book Closure:

The Share Transfer Books of the Company shall remain closed from January 5, 2023 to January 12, 2023 (both days inclusive).
Transfers received in order at the office of the Company’s Share Registrar, THK Associates (Pvt.) Limited, Plot No.C-32, Jami
Commercial Street-2 D.H.A., Phase-VII, Karachi and email at [email protected] by the close of business (5:00 pm) on
January 4, 2023, will be considered in time for the purpose of Annual General Meeting. Final cash dividend, if any approved in
the Meeting, will be paid to Members whose name appears in the register of the Members on January 4, 2023.

Procedure and requirement for attending the Meeting and Appointing Proxies
Central Depository Company (“CDC”) account holders are required to follow the guidelines as laid down in Circular No.1 dated
January 26, 2000, issued by the Securities and Exchange Commission of Pakistan (“SECP”) and shall comply with following
requirements to the extent applicable.

A Member entitled to attend and vote may appoint another Member as his/her proxy to attend and vote on his/her behalf. A
Member shall not be entitled to appoint more than one proxy. Duly completed Proxy forms in order to be valid must be received
by the Share Registrar or at the Registered Office of the Company not less than 48 hours before the time of Meeting.

CDC account holders are also required to follow the guidelines as laid down in Circular No.1 dated January 26, 2000, issued by
the SECP and shall comply with following requirements to the extent applicable:

i) In case of individuals, the account holder or sub-account holder and/or the person whose securities are in group account
and their registration details are uploaded as per the regulations, shall submit the proxy form as per requirement notified
by the Company.
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/her original CNIC or original passport at the time of meeting.
v) Corporate entities shall submit the Board of Directors’ resolution/Power of Attorney with specimen signature along with
proxy form.

SIEMENS ANNUAL REPORT 2022 79

 Change of Address and Zakat Status
Members with physical shareholding are requested to promptly notify the Company’s Registrar of any change in their addresses
and also submit Non-deduction of Zakat form if applicable to them. Further, Members holding their shares through CDC are
requested to update their address and zakat status with their participants.

Submission of CNIC, Dividend Bank Mandate and Payment of Cash Dividend (e-dividend)
In accordance with the provisions of section 242 of the Companies Act 2017, a listed Company is required to pay cash dividend
only through electronic mode directly into the bank account designated by the entitled shareholders. Accordingly, the
shareholders are requested to provide the information on the dividend mandate form attached in the Annual Report and also
uploaded on the Company’s website - www.siemens.com.pk/investor.html. The Members who hold shares in dematerialized
form are requested to submit the dividend bank mandate form duly filled to their participant/investor account services in the
CDC.

In accordance with the directives of the SECP, the dividends of shareholders whose CNIC copies have not been received by the
Company shall not be electronically credited until receipt thereof. Therefore, the individual shareholders who have not
submitted their CNIC copies are requested to send the same at the earliest to the share registrar of the Company. Corporate
entities are requested to provide their NTN. While providing their CNIC/NTN, shareholders must quote their respective folio
numbers. The physical shareholders are requested to notify any change in their addresses to the share registrar of the Company
and in case of CDC shareholders to their broker (participant).

The corporate Members having CDC accounts are required to have their National Tax Number (NTN) updated with their
respective participants, whereas corporate Members having physical shares should send a copy of their NTN certificate to the
Share Registrar. The Members while sending NTN or NTN certificates, as the case may be, must quote the Company name and
their respective folio numbers.

Withholding Tax on Dividend

In compliance with Section 150 read with Division I of Part III of the First Schedule of the Income Tax Ordinance, 2001
withholding tax on dividend income will be deducted for ‘filer’ and ‘non-filer’ shareholders at 15% and 30% respectively. A ‘filer’
is a taxpayer whose name appears in the Active Taxpayers List (ATL) issued by the FBR from time to time and a ‘non-filer’ is a
person other than a filer. To enable the Company to withhold tax at 15% for filers, all shareholders are advised to ensure that
their names appear in the latest available ATL on FBR website, otherwise tax on their cash dividend will be deducted at 30% for
non-filers.

Withholding tax exemption from the dividend income shall only be allowed if a copy of valid tax exemption certificate is made
available to the share registrar of the Company by the first day of book closure.

In order to comply with FBR clarifications vide Letter No. 1(54) Exp/2014-132872-8 dated September 24th 2014 and their
subsequent letter No. C.No. 1(17) WHT/2011 dated December 1, 2014 for determining the shareholding ratio of the joint
account holders for deduction of withholding tax on dividend, Members are requested to provide shareholding proportions of
principal shareholder and joint holder(s) in respect of shares held by them to the Share Registrar in the following format:

Principal Shareholder Joint Shareholder(s)

Folio / CDC Total Shares Name CNIC Shareholding Name CNIC Shareholding
Account No. Proportion Proportion
(No. of Shares) (No. of Shares)

Annual Accounts of the Company

Annual accounts of the company for the financial year ended September 30, 2022 can be downloaded from the Company’s
website- www.siemens.com.pk/annual_report.html

Members are hereby informed that for electronic transmission of Annual Report, request form is provided in the Annual Report
and also uploaded on the Company’s website-www.siemens.com.pk/investor.html. Members who wish to avail this facility
are requested to submit the request form duly filled to the Share Registrar.

80 SIEMENS ANNUAL REPORT 2022

Video Conferencing Facility
The shareholders interested to participate in the meeting through video link are requested to register themselves on
[email protected] by providing following information along with valid copy of CNIC (both sides).

Name of Shareholder CNIC Number CDC Account No. / Folio No. Cell Number Email Address

Video-link and complete information necessary to access the facility will be shared with the Members/Proxies whose email
containing all the above particulars are received at the given email address by the close of business on January 10, 2023.

Members who are registered, after necessary verification, will be provided with the link on the same email address with which
they email the Company. The login facility will remain open from 10:45 a.m. till the end of the meeting.

The members can also provide their comments and questions for the agenda items of the AGM on email yousuf.shabbir@thk.
com.pk on or before January 10, 2023.

Voting through Postal and Ballot

Members may exercise their right to vote as per provision of the Companies (Postal Ballot) Regulations, 2018, subject to the
requirements of Section 143 and 144 of the Companies Act, 2017. Further details in this regard will be communicated to the
shareholders within legal time frame as stipulated under these said regulations, if required.

Miscellaneous
This notice has been sent to all Members of the Company in accordance with Section 134(1)(a) of the Companies Act, 2017.

For any query/problem/information, Members may contact the Share Registrar at the following address:

THK Associates (Pvt.) Limited Telephone No: 021-111-000-322 (Ext. 131)

Plot No.C-32, E-Mail: [email protected]
Jami Commercial Street-2 Contact Person: Mr. Yousuf Shabbir
D.H.A., Phase-VII, Karachi

SIEMENS ANNUAL REPORT 2022 81

 ‫راٹیرئٹنمےکوفادئںیمرسامہیاکری‬
‫ینپمکےناےنپلقتسمالمزنیمےئلیکرپاوڈیٹناوررگوجییٹیڈنفزاقمئایکےہوجہقلعتموبرڈآفرٹزیٹسےکزریااظتنمےہ۔‬
‫س�ٹ� ی�ٹم ن ٹ‬
‫انڈنفزیکرسامہیاکرییکادقارہقلعتمآڈٹدشہامایلیتا ��سدرجذلیےہ‪:‬‬
‫روےپ(نیلمںیم)‬
‫‪30‬وجن‪2019 ،‬‬ ‫‪30‬وجن‪2020،‬‬ ‫‪30‬وجن‪2021 ،‬‬
‫‪499.715‬‬ ‫‪574.432‬‬ ‫‪669.301‬‬ ‫رپوڈیٹنڈنف‬

‫‪30‬ربمتس‪2019،‬‬ ‫‪30‬ربمتس‪2020،‬‬ ‫‪30‬ربمتس‪2021،‬‬

‫‪201.108‬‬ ‫‪209.278‬‬ ‫‪217.215‬‬ ‫رگوجییٹڈنف‬
‫ٹن‬
‫وپٹسسنلیبٹیشانناڈی�جس��گاویسٹناورامہرشیپتفرباےئامیلاسل‬
‫اسل‪2022‬‬
‫‪2022‬‬
‫‪30‬ربمتس‪2022‬ےساسروپرٹیکاترخیکتوکیئایسیامہدبتایلیںایوااعقتںیہنوہےئنجاکارثامیلایبانت(‪)financialstatements‬رپڑپے‪،‬وساےئدنمرہجذلیےک‪:‬‬
‫ینپمکےکوبرڈآفڈارئرٹکیزےناوصیلوطررپ‪4،‬اوتکرب‪2022‬وکدقعنمہاےنپاالجسںیم‪،‬ینپمکیک‪ERP‬دقرےکااضہفیکانبءرپدوابرہرفوتخےکلحاوردخامتےکاکروابریکوظنمریدی۔سجیکرفوتخاکاالطق‬ ‫•‬
‫روگیرٹیلیوظنمرویںےسرشموطےہ؛اور‬
‫یمتحانمعفہمسقنم اکاالعن‪،‬وجآدنئہاسالہناعماالجسںیمینپمکےکربممان یکوظنمریےسرشموطےہ‪،‬سجاکارثامیلاسل‪2023‬ےکامیلایبانتںیماظرہوہاگ۔‬ ‫•‬

‫ینپمک ےکلبقتسماکرظنمانہم‬
‫رگناین رکات راتہ ےہ ۔ رہ درآدمی نیل دنی ےس رتشیپ‬
‫دو اانیمطن شخب اسولں ےک ابووجد ینپمک ےک وبرڈ اور ااظتنہیم کلم یک ایسیس اور اعمیش وصراحتل تیمس رتیق یک راتفر ںیم راکوٹ ےننب واےل امہ دخاشت یک رقبی ےس ش‬
‫� یف�یک� ن‬
‫اٹیٹس کنیب آف اپاتسکن یک وظنمری احلص رکےن اک این روگیرٹیلی اقتہض ینپمک ےک ےئل اکی امہ جنلیچ ےہ۔ اس ابت اک دخہش ےہ ہک ہی وصرت احل رٹانشیمسن اور ارٹکیل ی�� اور آوٹنشیم ےک اکروابر ںیم اےنپ آرڈرز رپ‬
‫لمع درآدم اور لیمکت ےک ےیل دراکر رنیشمی اور آالت وک ربوتق احلص رکےن یک ینپمک یک الصتیح وک اتمرث رک یتکس ےہ۔ مہ کلم ےک زرابمدہل ےک ذاخرئ یک وصراحتل ےک شیپ رظن وتمعق اتریخ وک ہنکمم دح کت مک رکےن ےک‬
‫ےیلاےنپاپررنٹوکنیبںےکاسھتلسلسمراےطبںیمںیہ۔زمدیہیہکزگہتش اسلےکدورانرکیسنیکزیتیےسدقرںیمیمکتشیعمرپیفنموطررپارثادنازریہےہ۔‬

‫ارگہچ ینپمک ےن احہیل اسل ےک ےئل اےھچ امیل اتنجئ شیپ ےیک ںیہ ‪ ،‬نکیل لبقتسم ںیم رتیق اعمیش وصراحتل یک رتہبی رپ رصحنم ےہ۔ اےلگ اسل ےک ےئل ینپمک حیحص راہ رپ اگزمن ےہ۔ ارگ کلم یک اعمیش وصراحتل مکحتسم ریہ وت‬
‫ینپمک ےک اپس وموجد ٓادمین اور لقتسم اکررکدیگ داھکےن ےک وماعق ےک انبء رپ ینپمک امیل اسل ‪ 2023‬ےک ےئل رُپ ادیم ےہ۔ مہ وصراحتل یک ابرکی ینیب ےس رگناین رکےت رےتہ ںیہ اتہک اکروابر یک افحتظ ےک ےئل انمبس‬
‫اورربوتقےلصیفےکادقاموک ینیقیانبایاجےکس۔‬
‫تش‬
‫ااہظ ِر�� ّ�رک‬
‫مہ اس ومعق ےس اےنپ اُن امتم اقِلب دقر اصرنیف اک رکشہی ادا رکےت ںیہ وہنجں ےن امہری ونصماعت اور دخامت رپ اانپ رھبوہس راھک اور اس ینپمک یک رتیق وک ینیقی انبےن ںیم لسلسم اعتون رفامہ ایک ےہ۔ ذٰہلا ینپمک وک اےنپ‬
‫المزنیمیکرُپزعماوررُپوجشوکوششں‪،‬وافداریاوراُنیکنگلرپتہبرخفےہ۔اِسرطحمہاُنامتماکیٹسوہڈلرزیک یھبامحتیاوراعتونیکتہبدقررکےتںیہوجامہریینپمکیکرتیقںیمرھبوپرہّصحےلرےہںیہ۔‬
‫ت �ز‬
‫ٓارخںیممہاےنپاُنامتم رئیشوہڈلرزاکیھبہہتدلےسرکشہیادارکاناچںیہےگوہنجںےن اینپریغ ُمزلِل َحاتیےکاسھتمہرپ اامتعداوررھبوےساکااہظرایکےہ۔‬

‫وبرڈیکاجبنےس‬

‫امرسکارٹسوریمہ‬ ‫اقیضاسدجیلع‬
‫گنجینمڈارئرٹکی‬ ‫ڈارئرٹکی‬

‫رکایچ‪،‬ونربم‪2022،24‬ء‬
‫ن‬
‫ایدداتش اور لبقتسم ےکوحاےل ےس ایبانت (ونسٹ اور افرورڈ لُک�گ اٹنمٹیٹس)‬
‫اسداتسوزیںیمامہرےلبقتسمےکاکروابر‪،‬امایلیتاکررکدیگاورلبقتسمےکوااعقتایرشیپتفےسقلعتمایبانتاشلمںیہوجلبقتسمےکوحاےلےسایبانتےکزجںیہ۔انایبانتیکانشتخاِناافلظےسیکاجیتکسےہ‬
‫ےسیج“وتعق”‪“،‬وتمہج”‪“،‬وتمعق”‪“،‬زعم‪“”،‬وصنمہب‪“”،‬نیقی‪“”،‬التش‪“”،‬ہنیمخت‪“”،‬آےگڑبانھ‪”،‬ایایسرطحےکمہینعماافلظ۔ایسرطحمہدرگیروپروٹںںیم‪،‬وشکشیپںںیماورصصحایاگتفن‪/‬رئیشوہڈلرزوکرفامہ‬
‫ن‬
‫رکدہومادںیملبقتسمےکوحاےلےسایبانتیھبدےےتکسںیہ۔اسرطحےکایبانتوموجدہوتاعقتاورااظتنمےکضعباےسی رفمووضںرپینبمںیہنجںیمےستہبےس یس�زےکاایتخرںیمںیہنںیہ۔ہی ایبانتدعتمد‬
‫رطخاتےسرشموطںیہنجںیم ریغینیقیوصراحتلاوروعالماشلمںیہنکیلاُنایبانتکتدحمودںیہن ںیہوجاِسروپرٹںیمایبنےیکےئگںیہ۔ارگاِنںیمےساکیایاکیےسزایدہرطخاتایریغینیقیوصراحتلدیپا‬
‫وہاجےئای اینبدیوتاعقتواعقہنوہںای رھپرفموےضطلغاثتبوہںوتالصاتنجئ‪،‬اکررکدیگایاکایمایبںاِنےسام ّدیوطررپ(یفنمایتبثم)فلتخموہیتکسںیہوجہک ہقلعتملبقتسمےکوحاےلےسایبانترپارثادنازوہیتکس‬
‫ی ن‬
‫۔س�زاِنشیپروتفںیکروینشںیموجاُنوتمعقایبانتےسفلتخمںیہ‪،‬اپڈٹیایرظناثینرکےناکہنوتارادہراتھکےہاورہنیہوکیئذہمداریوبقلرکاتےہ۔راؤڈنگنیکوہجےس‪،‬اسںیموہ ربمنزشیپےیکاجےتںیہ‬ ‫ںیہ‬
‫ُ ِ ی �ز‬
‫وجدرگیداتسوزیاتےکرفامہرکدہ کمانںیمیعطقوطررپاشلمںیہنوہےتکساوررشحدصیفقلطمادعادوامشریکواحضوطررپ اکعیسںیہنرکےتکس۔‬

‫‪82‬‬ ‫‪SIEMENS ANNUAL REPORT 2022‬‬

 ‫اشمرہہاسحطساکوہوجارفادیکینپمکوکاکایمیبےکاسھتالچےنیکاتیلہاوراقتیلبےکشیپرظنانےئلیکرپششکاورانوکینپمکےکاسھتڑجارےنھکےئلیکاکیفوہ۔‬ ‫•‬
‫اشمرہہاسوتقاوراہمرتےکاحلظےسافصنمہنوہوجڈارئرٹکیزاینپذہمدارایںوپریرکےنےئلیکرصفرکےتںیہ۔‬ ‫•‬
‫اشمرہہادقارںیمااضےفیکوحہلصازفایئےئلیکاکیفوہ۔‬ ‫•‬
‫اشمرہہاسحطساکہنوہوجڈارئرٹکیزوکوخداتخمریےسوھجمسہترکےناکااسحسدالےئ۔‬ ‫•‬
‫گنجینمڈارئرٹکی‪/‬فیچازگیویٹکیآرسیف‪،‬ازگیویٹکیڈارئرٹکیزاوررئیشوہڈلرزیکارثکتییکامندنئیگرکےنواےلڈارئرٹکیزینپمکےکآرزلکیٹآفاوسییسانشیےکاطمقبیسکاشمرہےےکالہںیہنںیہ۔‬ ‫•‬
‫ اشمرہہوبرڈیکلمکمدمتکتےئلیکرقمروہاگوجڈارئرٹکیزےکرہااختنبےسےلہپکتوہاگ(رہنیتاسلںیماکیابر)۔‬ ‫•‬
‫اشمرہےیکحطسرقمررکےنےئلیکدحےکنیعتےکےلسلسںیموخداتخمرریشموںیکافسراشتاحلصرکیلاجںیئ۔‬ ‫•‬

‫ڈارئرٹکیزاکاشمرہے‬
‫ازگیوٹکیاوراننازگیویٹکیڈارئرٹکیزےکاشمرہےیکومجمیعرمقیکالیصفتت‪،‬امیلایبانتےکونٹ‪46‬ںیماظرہیکیئگںیہ۔‬

‫وبرڈیکاکررکدیگیکصیخشت‬
‫وبرڈ ےن اکی اباضہطب اپیسیل یک وظنمری دی ےہ اور وبرڈ اور اس یک ویٹیمکں یک اسالہن اکررکدیگ اک اجزئہ ےنیل ےک ےیل اکی لمع رشوع رک دای ایگ ےہ۔صیخشت اک دصقم اس ابت وک ینیقی انبان ےہ ہک وبرڈ یک ومجمیع اکررکدیگ وک‬
‫اکروپرٹیاقمدص‪،‬ینپمکوگرسنینیکاستخ‪،‬اقونیناورروگیرٹیلیلیمعت‪،‬اتریث‪،‬اعتوناوردقرںیمااضےفےکوحاےلےساناپاجےئ۔امیلاسل ‪2022‬ےکےیلاکررکدیگیکاجچن‪،‬وبرڈیکرطفےسوظنمردشہلمعےک‬
‫اطمقبیکیئگاوروبرڈیکومجمیعاکررکدیگاوراتریثوک“وبضمط”ےکزُ رمےںیمراھکایگےہ۔وبرڈےکامتمربممانےناکررکدیگیکصیخشتںیمہّصحایل ےہاوراینپراےئےسٓااگہایکےہ۔‬

‫وبرڈآفڈارئرٹکیزیکلیکشت‬
‫دنمرہجذلیےکاطمقبڈارئرٹکیزیکلکدعتاداست(‪)7‬ےہ۔‬
‫رمد‪ :‬ھچ(‪)6‬‬
‫اخوتن‪ :‬اکی(‪)1‬‬
‫ک ٹ‬
‫انم‬ ‫�ی��یگ�ری‬
‫ٹ‬
‫انجباقیضاسدجیلع‬ ‫وخداتخمر ی �ز‬
‫ڈارئ�‬
‫رتحمہماعہلئامدج‬
‫انجبدعاننٓارفدیی‬ ‫اننازگیویٹکیڈارئرٹکیز‬
‫انجباوویلراریپسگنل‬
‫انجبونیملئ ٹوکنہ*‬
‫ن‬
‫انجبرکلاس��یف�واررن**‬
‫انجبریہاڈلرگمی‬
‫انجب امرسکارٹسوریمہ‬ ‫ازگیوٹکیڈارئرٹکی‬
‫انجب ونیملئ ٹوکنہےن‪21‬ارپلی‪2022،‬ءےس اٰیفعتسدایاھت۔‬ ‫*‬
‫ن‬
‫انجب رکلاس��یف�واررنوک‪10‬یئم‪2022،‬وکانجبونیملئوکنہیکہگجوبرڈآفڈارئرٹکیزاورآڈٹیٹیمکںیمرقتر ایکایگاھت۔‬ ‫**‬

‫ریبوینآڈرٹیز‬
‫�ن� ٹ ن ٹ‬
‫وموجدہآڈرٹیزایوایئوفرڈروہڈس‪،‬اچررٹڈااکؤ ��س(ارٹسناڈنیگنیولگلبڈٹیملیکربممرفم)آےنواےلاسالہناالجساعمےکااتتخمرپراٹیرئوہرےہںیہاورالہوہےنیکاینبدرپاوہنںےنوخدوکدوابرہرقترےئلیک‬
‫شیپایکےہ۔‬

‫آڈٹیٹیمکیکافسراشتےکاطمقبوبرڈ‪7.6‬نیلمروےپ(العوہزلیسسکیٹ) اشمرہے رپرباےئامیلاسل ‪2023‬انےکدوابرہرقتریکافسرشرکاتےہ۔‬

‫اکروپرٹیتیثیح‬
‫ینپمک ‪(Siemens Aktiengesellschaft, Germany‬سنمیس اے یج)اک ذیلی ادارہ ےہ وجرکلبپی آف رجینم ےک اقونن ےک تحت اقمئ ایک ایگ ےہ اور ‪30‬ربمتس‪2021‬ےک اطمقب ینپمک ےک ‪74.6%‬رئیشز یک احلم‬
‫ےہ۔‬

‫رئیشوہڈلگناکرطز‬
‫ٹ‬ ‫ٹ�‬
‫ینپمکاپاتسکنااٹسکاجنیچسکیڈٹیملںیملس��ڈےہ۔یلیصفترطزاوراسےکرئیشوہڈلگنیکک�ی�گ�رزیومشبلڈارئرٹکیزاورازگیویٹکیزےکاپسوموجدرئیشز‪،‬ارگوکیئےہ‪،‬اسالہنروپرٹےکاسھتکلسنمےہ۔‬

‫‪SIEMENS ANNUAL REPORT 2022‬‬ ‫‪83‬‬

 ‫اکروپرٹیوگرسننےکرتہبنیرطوقیںیکاپدنبی‬
‫ینپمک اےنپ امتم اقونین اور تاالخیق اقتوضں وک وپرا رکےن اور اہجں یھب نکمم وہ‪ ،‬اُن ےس تقبس ےل اجےن اور اکروابر وک اٰیلع رتنی ایعمرات اور رطوقیں ےک اطمقب الچےن ےک ےیل رُپزعم ےہ۔اس رطح وبرڈ وموجدہ لمع وک‬
‫�‬
‫لسلسمجنلیچرکےتوہےئ سل ُسلےکاسھترتہبییکراہنیعتمرکاتےہ۔اسلمعوکینپمکےسدبتیلیوبقلرکےنیکیھبرضورتےہ‪،‬اتہکبجےئنوماعقدیپاوہںوتینپمکایھچوپزنشیںیمٓااجےئ۔اساکبلطمہییھب‬
‫ےہہکابزار یکہگجےس رتہبنیٹنلیٹاینپرطفوتمہجرکاناوراُےسایسیاہمرںیتاوروماعقرفامہرکانےہوجاکیرتہبنیاکررکدیگےکےیلدراکر وہیتںیہ۔‬
‫�ئ�ی�ن ن ش‬
‫وبرڈےنقش‪5.6.4‬ےکدصقمےکےیل‪PSX‬یک ُرول ُ ب� ےکتحتظفل“ازگیویٹکی”یکرعتفی اسرطح رتبیتدیےہ’’گنجینیمڈارئرٹکی‪،‬فیچاف �ی��ل آرسیف‪،‬ینپمکرکیسرٹی‪MD،CFO،‬اورینپمکرکیسرٹییکامتم‬
‫رباہراتسروپرسٹ‪،‬ہقلعتم‪ CorporateFinancialReporting‬ہلمعوجولکزِگناورروپرگنٹرسرگویمںےسقلعتموہںاوروہ امتمالمزنیمنجیکاینبدیوخنتاہاکیامیلاسلںیم‪3.6‬نیلمروےپےسزایدہےہ”۔‬

‫وبرڈاوراسیکویٹیمکںیکلیکشت‪،‬وبرڈاوراسیکویٹیمکںےکاالجوسںیکدعتاد‪،‬اوراحرضییکلیصفتدرجذلیےہ‪:‬‬

‫عماوےضاک‬
‫ااسنینواسلئاور ُ‬
‫انزمدیگاکاالجسدقعنموہا‪/‬‬ ‫ٓاڈٹگنٹیمدقعنموہیئ‪/‬‬ ‫وبرڈاالجسدقعنموہےئ‪/‬‬
‫االجسدقعنمایکایگ‪/‬رشتک‬ ‫رتبیت‪/‬وپمکزنشی‬
‫رشتکیکیئگ‬ ‫رشتکیکیئگ‬ ‫رشتکیکیئگ‬
‫یکیئگ‬
‫‪N/A‬‬ ‫‪N/A‬‬ ‫‪2/2‬‬ ‫‪2/2‬‬ ‫اننازگیوٹکیڈارئرٹکی‬ ‫انجبونیملئوکنہ*‬
‫‪1/1‬‬ ‫‪3/3‬‬ ‫‪N/A‬‬ ‫‪5/5‬‬ ‫امیڈی‪-‬ازگیوٹکیڈارئرٹکی‬ ‫انجبامرسکارٹسوریمہ‬
‫‪3/3‬‬
‫‪N/A‬‬ ‫‪N/A‬‬ ‫‪5/5‬‬ ‫وخداتخمرڈارئرٹکی‬ ‫انجباقیضاسدجیلع‬
‫(رئیچنیم)‬
‫‪1/1‬‬ ‫‪3/3‬‬ ‫‪N/A‬‬ ‫‪5/5‬‬ ‫اننازگیوٹکیڈارئرٹکی‬ ‫انجباوویلراریپسگنل‬
‫‪4/4‬‬
‫‪N/A‬‬ ‫‪N/A‬‬ ‫‪5/5‬‬ ‫وخداتخمرڈارئرٹکی‬ ‫رتحمہماعہلئامدج‬
‫(رئیچوونیم)‬
‫‪N/A‬‬ ‫‪N/A‬‬ ‫‪4/4‬‬ ‫‪5/5‬‬ ‫اننازگیوٹکیڈارئرٹکی‬ ‫انجبریہاڈل ٹرگمی‬
‫ن‬
‫‪N/A‬‬ ‫‪N/A‬‬ ‫‪2/2‬‬ ‫‪3/3‬‬ ‫اننازگیوٹکیڈارئرٹکی‬ ‫انجبرکلاس��یف�واررن**‬
‫‪N/A‬‬ ‫‪N/A‬‬ ‫‪3/3‬‬ ‫‪4/4‬‬ ‫اننازگیوٹکیڈارئرٹکی‬ ‫انجبدعاننٓارفدیی‬
‫انجب ونیملئ ٹوکنہےن‪21‬ارپلی‪2022،‬ءےس اٰیفعتسدایاھت۔‬ ‫*‬
‫ن‬
‫انجب رکلاس��یف�واررنوک‪10‬یئم‪2022،‬وکانجبونیملئوکنہیکہگجوبرڈآفڈارئرٹکیزاورآڈٹیٹیمکںیمرقتر ایکایگاھت۔‬ ‫**‬

‫ڈارئرٹکیزاکاٹنمٹیٹس‬
‫�‬
‫مہ بمس�رتایبنرکےتںیہہک‪:‬‬

‫(افل)ینپمک یک ااظتنہیم یک اجبن ےس ایتر رکدہ امایلیت الیصفتت(‪)Financial Statements‬ںیم ینپمک ےک اعمالمت‪،‬آرپزنشی ےک اتنجئ‪،‬دقن روقامت ےک اہبؤ اور اوکییٹی ںیم دبتویلیں وک افشف وطر رپ شیپ ایکایگ‬
‫ےہ۔‬
‫ ‬ ‫(ب) ینپمکیکاجبنےساسحباتکباوراھکوتںوکدرتسوطررپرمبتایکایگےہ۔‬
‫(ج) امایلیتاٹنمٹیٹسیکایتریںیمدرتسااکؤگنٹناپل�یس�ی��زاکرموبطوطررپاالطقایکایگےہ۔‬
‫ ‬ ‫(د) نیباالوقایمامایلیتروپرگنٹےکایعمرات(‪ )IFRSs‬یکاینبدرپایترےئکےئگںیہ۔‬
‫(ر) دایلخرٹنکولاکاظنمعمامایلیتروپرگنٹرپادنروینرٹنکولاکاظنماےنپڈزیانئےکاابتعرےسمکحتسمےہاورومرثوطررپانذفاورامرٹینایکاجات ےہ۔‬
‫(س) دایلخرٹنکولاکاظنم‪،‬ومشبلامایلیتروپرگنٹرپادنروینرٹنکول‪،‬ڈزیانئےکاحلظےسدرتسےہاوراےسؤمرثرطےقیےسانذفایکایگےہاوراسیکرگناینیکیئگےہ۔‬
‫(ش) ینپمکےکوموجدہالصتیحےکاسھتاکماجری شرےنھکںیمیسکراکوٹاکوکیئہبشںیہنےہ۔‬
‫ن‬ ‫ٹ�‬
‫(ص) لس� ڈ� زینپمک(وکڈآفاکروپرٹیوگرسنن)روگیل�ی����ز‪2019‬ںیمدرجلیصفتےکاطمقباکروپرٹیوگرسننےکرتہبنیومعمالتےسوکیئامہ ارعاضںیہنایکایگےہ۔‬

‫کم�پلاسنئاکایبہین‬
‫شن‬ ‫ٹ�‬
‫ینپمکاہنتییتخسےساکروپرٹیوگرسننےکاوصولںیکاپدنبیرکیتےہاورامتموجمزہرشاطئانذفیکیئگںیہ۔اساکالخہصکلسنملس� ڈ� زینپمک(وکڈآفاکروپرٹیوگرسنن)روگیل�ی����ز‪2019‬ےکاسھتکلسنماٹنمٹیٹسآف‬
‫کم�پلاسنئںیموموجدےہسجاکریبوینآڈرٹیزےناباقدعہاجزئہایلےہ۔‬

‫ڈارئرٹکیزےکاشمرہےیکاپیسیل‬
‫وبرڈ ےن ڈارئرٹکیز ےک اشمرہے یک وظنمری دے دی ےہ سج ںیم اپیسیل ےک اقمدص اور ارفنادی وطر رپ ڈارئرٹکیز ےک وبرڈاور اس یک ویٹیمکں ےک االجس ںیم رشتک ےئلیک اشمرہے ےک جیکیپ ےک نیعت ےئلیک افشف رطہقی‬
‫ایبنایکایگےہ۔ڈارئرٹکیزےکاشمرہےیکاپیسیل یکدرگیالیصفتتےکالعوہاخصاخصاکنتدرجذلیںیہ‪:‬‬

‫اشمرہےیکحطساکروابریرضورایتےکاطمقب‪،‬تمکحیلمعیکتمسںیماورینپمکاوراسےکرئیشوہڈلرزےکرتہبنیافمدںیموہیگ۔‬ ‫•‬
‫اشمرہےیکحطساسمیتقبزینپمک‪/‬تعنصیکامرٹیکےکومعمالتےکاطمقبوہیگ۔‬ ‫•‬
‫اشمرہےاکنیعترکےتوتقسنجےکاحلظےسوکیئااتیمزںیہنرباتاجےئاگ۔‬ ‫•‬

‫‪84‬‬ ‫‪SIEMENS ANNUAL REPORT 2022‬‬

 ‫� ٹ‬
‫اج ےکس۔ ڈلٹیجی اڈنرٹسزی اےنپ اصرنیف وک اکی اپررنٹ ےک وطر رپ اینپ لمکم الصوتیحں وکاامعتسل رکےن ںیم دمد رکیت ےہ وج رجمد اور زریِ ریمعت وتعنصں یک آوٹنشیم اور ڈ ی � ج ی��لازئنشی ےک ےیل اُںیہن دجدی انکیٹولزیج رفامہ رکیت‬
‫ےہ۔‬

‫دخاشت‪،‬ریغینیقیتیفیکاوراخہمت‬
‫ینپمکوکدرجذلیومعیمدخاشتاکاسانمراتہےہنجوکوصخیصادسنادیرپورگامےکذرہعیمتخایکاجاتےہ‪:‬‬

‫ن‬ ‫��ی ٹ‬ ‫ن‬ ‫(افل) آرپلنشیدخاشت‬

‫م�� ن ٹ‬ ‫م�� ن ٹ‬
‫ آرپلنشیدخاشتاکقلعترپوٹکیج ی�جم��(ےسیجوتقرپرپو ج ک�سیکلیمکتاورینیمختالتگںیمردودبل)‪EHS،‬اورالپسیئنیچ ی�جم��اشلمںیہ۔‬

‫ینپمکاندخاشتاکادسناداکروابریلمعےکدورانںیموصخیصواسلئعمولطمہبالصتیحاوراہمرتےکاسھترکیتےہ۔ااظتنہیماےسیدخاشتےئلیکدخاشتیکوجایبتمکحیلمعاکنیعترکیتےہسجںیم“رگزی‪،‬‬
‫یلقتنم‪،‬یمکایوبقلرکان”یکتمکحیلمعاشلمےہ۔‬

‫(ب) امایلیتدخاشت‬
‫امایلیتدخاشتوککلسنمامایلیتوگوشاروںےکونٹ‪52‬ںیمالیصفتَایبنایکایگےہسجںیمامرٹیک‪،‬رکڈیٹاوروکیلڈییٹدخاشتاشلمںیہ۔‬

‫لمعدرآدمےکدخاشت‬ ‫(ج)‬
‫ل ٹن‬
‫س�‬
‫ینپمکیکرقمرہرسرگویمںاورروویںرپلمعدرآدمہنرکےنےئلیکرفصدعمربداتشیکاپیسیلوموجدےہ۔ینپمکہییھبیتھجمسےہہکوقانیناوروضاطبرپلمعدرآدمہنرکےنےکےجیتنںیمرجامہن‪،‬ارخاج‪،‬کیلب �گ‪،‬السنسئ‬
‫یکوسنمیخوریغہاکاسانموہاتکسےہ۔اےسیدخاشتےکاخےمتےئلیکینپمکےناکیاجعماورومرثلمعدرآدماکرطہقیءاکرانذفایکےہ۔‬
‫ٹ‬
‫ اس ےک العوہ زبسن ڈنکٹک اگڈیئ الزنئ (‪)BCG‬ںیم ینپمک یک ڈارئرٹکیز‪ ،‬ازگی�کی�ی��ی�وز اور ینپمک ےک درگی المزنیم اور نج ےک اسھت ینپمک اکروابر رکیت ےہ‪ ،،‬ان ےس وتاعقت واحض وطر رپ ایبن یک یئگ ںیہ۔ینپمک‬
‫المزنیماوراکروابریاپررنٹزےسیسکالخفورزییکاالطعدےنییکوحہلصازفایئرکیتےہاورانوکینیقیدالیتےہہکاسالخفورزیاکاامتعدےساقمہلبرکےنےسانرپوکیئرباارثںیہنڑپےاگ۔رطہقیءاکر‬
‫ںیموہستلےئلیکفلتخمزلنیچےسیجینپمکیکوبیاسٹئرپکم�پلاسنئپلیہڈکسی“‪”TellUs‬اقمئیکیئگےہ۔‬

‫‪)EHS‬‬
‫اموحایلت‪،‬تحص‪،‬اورافحتظ((‪EHS‬‬
‫ن‬
‫اموحلاوردقریتواسلئاکظفحت‪،‬اےنپالمزنیمیکتحصاوراُنیک اکررکدیگوکرفوغدانی‪،‬زیناُنےکاکم رکےنےکاموحلاکظفحت‪ ،‬یس�زںیمامہریامسیجاوراکروابریوایگتسباک اکیاینبدیہصحےہ۔وابےسدرشیپدوشارویں‬
‫ی ن‬
‫ےس ےنٹمن اور آدنئہ ولسنں ےک ےیل ایعمرِزدنیگ وک رتہب انبےن ےک ےیل ‘این ومعمل’ وک اانپای ےہ۔مہ ےن اس امیل اسل ےک آاغز ےس ڈرگی رفمی ورک اور س�ز ای اچی اسی ےک ولازامت‪،‬ےسیج یلجب ےک رطخات ےس آاگیہ‪،‬‬
‫المزنیمیکالفحووبہبداوررٹکفیوقانینیکاپدنبیرپوتہجرموکزیکےہ۔‬

‫ہیامتمنیقلعتمینعیاصرنیف‪،‬الپسرئز‪،‬رسامہیاکروں‪،‬ولوگں‪،‬اعمرشوںاورامہریزنیمےکےیل‪360‬ڈرگیزاوہیےساتیمہراتھکےہ۔ہیاکنت“رفصرضررچلک”اور“‪”HealthandSafety@Siemens‬ےکافنذےک‬
‫ےیلامہرکدارادارکےتںیہ۔ مہہیےتھجمسںیہہک اپدیئاررتیقاورمظنوطبضربرقاررےنھکےکےیل تحصاورافحتظےکاوصولںرپلمعرکانالزمےہ۔‬

‫اامتجیعامسیجذہمداری‬
‫وتق ےس الزیم رصنع ےہ بج ‪1847‬ںیم وررن وون سنمیس ےن اس ینپمک یک اینبد ریھک یھت۔امہری امسیج ذہم دارویں ےک اکومں ںیم نیت رمزکی وتہج ےک اریای ز ںیہ؛‬ ‫ایھچ اامتجیع امسیج ذہم داری ینپمک یک الفیفس اک اس‬
‫ن ٹ �ز‬
‫ویمک�۔ ہی امہری اکروابری تمکح یلمع‪ ،‬اینبدی اتیلہ‪ ،‬اعمرشے یک الفح ےئلیک اعیمل ادہاف‪ ،‬اعیمل حطس ےک ڑبے راحجانت (ڈومیرگاسکف‪ ،‬رہشاکری‪ ،‬اموحایلیت دبتیلی‪،‬‬
‫ی‬ ‫انکیٹولیج کت راسیئ‪ ،‬میلعت کت راسیئ اور اپدیئار‬
‫� ٹ‬
‫اعریگملتیاورڈ ی � ج ی��لازئنشی)اوراکیٹسوہڈلرزےکاسھتڈاالیئگںیمامنایںرےتہںیہ۔امسیجرہشیذہمدارویںںیمامہریرسرگایمںوپرےدرتفںیم ‪SDGs‬ںیمشیپرتفںیماشلمریتہںیہ۔سنمیساموحایلیتاور‬
‫ومیمسظفحتوکااہتنیئاتیمہداتیےہ اوراےنپالمزنیمیکاجبنےسواسلئیکزایدہذہمداریےکاسھتاامعتسلےئلیکوحہلصازفایئیکاجیتےہ۔‬

‫‪ FY2022‬ںیمینپمک ےنامسیجذہمدارییکادایگیئےکےلسلسںیمدرجذلیاداروںےکاسھترقیبیقلعتےساکمایک‪:‬‬

‫بیبخافٔوڈننشی‬ ‫•‬
‫دیزیٹسزنافؤڈننشی(‪)TCF‬‬ ‫•‬
‫اڈنساتپسہلاڈنیھتلیہٹینورک‬ ‫•‬

‫زمدی ربآں ‪ ،‬اسل ےک دوران ینپمک ےن الیسب ےک اتمرثنی یک ادمادی رسرگویمں ںیم رصموتیف ‪ ،‬تحص وک رفوغ دےنی اور المزنیم یک الفح و وبہبد اور وفحمظ اور اصف اموحل وک رفوغ دےنی تیمس دعتمد امسیج و اعمرشیت‬
‫ادقاامتںیمامہرکداراداایکےہ۔‬

‫زمدیالیصفتتےکےیلرباہرکماسالہنروپرٹےک ااکحتسم اوراکروپرٹیرہشتی(‪)SustainabilityandCorporateCitizenship‬ےکنشکیسےسروجعرکںی۔‬

‫‪SIEMENS ANNUAL REPORT 2022‬‬ ‫‪85‬‬

 ‫ڈارئرٹکیزروپرٹ‬

‫زعزیرئیشوہڈلرز‪،‬‬
‫م خت ت‬ ‫�‬
‫مہ‪ ،‬زریدیطختس‪ ،‬وبرڈآف ڈارئرٹکیز ےئلیک اور ان یک اجبن ےس بمس�رت سنمیس (اپاتسکن) ارئنیجنگن ینپمک ڈٹیمل(“ینپمک”)یک اسالہن روپرٹ اور آڈٹ دشہ امایلیت وگوشارے رباےئ امیل اسل ���مہ ‪30‬ربمتس ‪2022‬ا(“‪FY‬‬
‫‪)‘‘2022‬عمانرپآڈرٹیزیکروپرٹشیپرکےتںیہ۔‬

‫احہیلامیلاسلینپمکےکےیلوخش ٓادنئ اثتبوہا۔ ریغینیقیرغجاایفیئایسیساوراعمیشوصراحتلےکابووجد‪،‬ینپمکےن‪،‬امرٹیکاوررمٹسکیکواحضوتاعقتےکاسھت‪،‬دہعوامیپء رپوھجمسہتںیہنایک‪ ،‬اورریمعتاتاور وتاانیئیک‬

‫� ٹ‬
‫میسقتےکاظنم‪،‬آوٹنشیماورڈ ی �ج�ی�لازئنشیاوردادنمشناہنارفنارٹسرچکےکوبعشںںیمیلجبیکدیپاوار‪،‬رفایمہاورمیسقتےکلمعاورونیمرچکیفگنںیماعتونرکےکاکیوبضمطاعمرشیتارثڈاال۔امیلاسل‪2021‬ےکاقمےلب‬
‫ںیماکررکدیگےکھچکامہراحجانتدرجذلیںیہ ‪:‬‬

‫زگہتشاسلےکاتریخیراکیرڈ‪22.3‬نیلبروےپ ےکاقمےلبںیم ‪39.3‬نیلبروےپےکےئنآرڈرزاکوصحلےہ۔ سجںیمارنیجرٹانشیمسنےکاکروابراکےئنٓارڈرز یکارثکتیںیماعتون‪22.4‬نیلب روےپراہوج‬ ‫•‬

‫زگہتش اسل ےک ‪ 12.3‬نیلب روےپ اھت۔ اس ن ش‬
‫تقبس ںیم اکی ڑبا ہصح رقتًابی ‪ 15.5‬نیلب روےپ اک ‪ K-Electric‬ےک اسھت ارنیج رٹانشیمسن ےک راےطب ےک ذرےعی نکمم وہا ےہ وج رکایچ وینرئیلک اپور الپٹن‬
‫ک��یک ن‬
‫(‪)KANUPP‬ےسےک۔ارٹکیلکاورارٹن �� (‪500/200 kV )KKI‬رگڈانشیٹسیکریمعترپینبمےہ۔اساسلیکاکیاورڑبیتیج امہریڈلٹیجیاڈنرٹسزیےکاکروابرےکےئل‪ NTDC‬ےکےئل‬
‫‪SAP‬السنسئ‪،‬افنذاوردھکیاھبل اک ‪2.2‬نیلبروےپاکاعمدہہےہ۔‬

‫ےلھچپاسلےستبثمآرڈرےکابایقتیکوہجےسامیلاسل‪2021‬ےکاقمےلبںیم‪،‬احہیلاسلیکرفوتخںیم‪50‬دصیفوجہکمکوشیب‪7.1‬نیلبروےپےہاکااضہفوہاابووجداسےکہکالکٹسجیکراکووٹںتیمسکلم‬ ‫•‬
‫یک ریغیکلمرکیسنےکابتدےلیکوصراحتلےکشیپرظندرآدماترپرمزکیکنیبیکاپدنبایںیسیجدرگیدعتمدٓازاموشئں اکاسانمراہ۔رفوتخیکآدمینںیمرسرہفتسارنیجرٹانشیمسناکاکروابر راہ‪،‬سجںیمامیل‬
‫اسل‪2021‬ےکاقمےلبںیم‪4.1‬نیلبروےپاکااضہفراہ۔‬

‫ااسمل‪،‬ینپمکےن‪2.6‬نیلبروےپاکومجمیعانمعفلبقازسکیٹاظرہایک۔سجںیمریغیکلمرکیسنیکامیپشئرپراکیرڈدشہریغیقیقحافدئہاکاکیامہہصحاشلمےہسجیکامتیل‪1.5‬نیلبروےپںیہ۔ریغیقیقحانمعفیکدقر‬
‫لقنو شرحتکےکےئلااہتنیئاسحسےہ۔زمدیہیہک‪،‬ینپمکاکانمعفاسلےکدورانوتمعقمیلستدشہرکڈیٹاصقنانتےسربیرطحاتمرثوہا وجہکومجمیعوطررپ ‪871‬نیلم‬ ‫دعبازاں ادوارںیماپاتسکنروےپیک ن‬
‫�سم� ن‬
‫روےپےہ سجیکاینبدیوہجارنیجرٹا � ےکاکروابرںیموصخمص رغجاایفیئایسیس‪/‬العاقیئوعالماشلمںیہ۔‬

‫اینبدیااشرویںاکومعیماجزئہدرجذلیےہ‪:‬‬

‫امیلاسل‪2021‬‬ ‫امیلاسل‪2022‬‬ ‫اکررکدیگےکاَمہاِاشرےی(ا ِڈنرٹیکیز)‬

‫)‪(Rupees in ‘000‬‬
‫‪14,349‬‬ ‫‪21,484‬‬ ‫اخصل رفوتخاوردخامت‬
‫ن‬
‫‪1,360‬‬ ‫‪2,613‬‬ ‫ٓارپگنٹی ُماعف ‪( /‬اصقنن)‬
‫ن‬
‫‪1,390‬‬ ‫‪2,590‬‬ ‫لبقازامکنسکیٹ ُماعف ‪( /‬اصقنن)‬
‫ن‬
‫‪850‬‬ ‫‪1,681‬‬ ‫اسلےکےیلاخصل ُماعف ‪( /‬اصقنن)‬
‫‪103.07‬‬ ‫‪203.81‬‬ ‫یفرئیشآدمین‪( /‬اصقنن) (روےپ)‬

‫َ�ت خ‬
‫�ص�یص�ات‬
‫امیلاسل‪2022‬ےکدورانیکںیئگ اصیصختتاکالخہصدرجذلیےہ‪:‬‬
‫)‪(Rupees in ‘000‬‬
‫ش ن‬
‫‪856‬‬ ‫مکیاوتکرب‪2021‬کتعمج ُ�دہ ُماعف‬
‫‪1,681‬‬ ‫امیلاسل‪2022‬ےکےیلسکیٹےکدعباخصلانمعف‬
‫)‪(379‬‬ ‫امیلاسل‪2021‬ےکےیلیفرئیش‪46‬روےپ(‪)460%‬اکیمتحانمعف‬
‫‪2,158‬‬ ‫‪30‬ربمتس‪2022‬کتعمجدشہانمعف‬

‫درگیرزیروزںیملقنورحتکیکالیصفتتےئلیکرباےئرہمابینامایلیتوگوشارےںیماوکییٹیںیمدبتویلیںاکاٹنمٹیٹسالمہظحرکںی۔‬

‫انمعفہمسقنم‬
‫�‬
‫ینپمکیکامایلیتاکررکدیگاورلبقتسمںیمدقناہبؤیکرضورایتےکشیپرظن وبرڈ بمس�رت‪46‬روےپیفومعیمرئیشےکاسحبےسیمتحدقنانمعفہمسقنمیکافسرشرکاتےہ۔‬

‫ینپمکیکاینبدیرسرگایمںاوراکروابریہبعشاجت‬
‫� ٹ‬
‫ینپمکےک اجری اکروابری وپرٹ وفویلز ںیمارنیج‪،‬اامسرٹ ارفنا ارٹسرچک اورڈلٹیجی اڈنرٹسزیاشلم ےہ سج ںیم اپور رنجنشی اورڈرٹسی ویبنش‪،‬امسرٹڈلبزگناور امسرٹ رگڈز اور ونیمرچکیفگن ںیمآوٹنشیم اورڈ ی �ج�ی�لازئسی‬
‫رپ وتہج رموکز ریھک اجیت ےہ۔اامسرٹ ارفنارٹسرچک وخد اکراہن وطر رپ وتاانیئ ےک اظنم‪ ،‬امعروتں اور وتعنصں وک رموبط راتھکےہ اتہک زایدہ اکررکدیگ اور اپدیئاری ےک ذرےعی امہرے رےنہ اور اکم رکےن ےک رطےقی وک رتہب انبای‬

‫‪86‬‬ ‫‪SIEMENS ANNUAL REPORT 2022‬‬

 ‫رئیچنیمیکاجزئہروپرٹ‬

‫اکی لکشم نکیل انمعف شخب اسل ےک ااتتخم رپ ےھجم سنمیس اپاتسکن ارئنیجنگن ینپمک ڈٹیمل ےک اکیٹس وہڈلرز ےک اسےنم امیل اسل ‪ 2022‬یک اسالہن روپرٹ اور‬
‫ینپمکےکارغاضواقمدصےکوصحل یکرامنہیئںیموبرڈیکاافدتیرپرصبتہرکےتوہےئوخیشوسحمسوہریہےہ۔‬

‫اپاتسکنیکتشیعمنیباالوقایماوراقمیمامرٹیکںیماایشءیکدنلبوتمیقںاوررشحابمدہلںیمیمکیکوہجےساٰیلعارفاطزراورریبوینےبعشےکدابؤےسزگرریہ‬
‫ےہ۔روسویرکنیانتزہعےسےنلکنواےلارفادتیمساسلےکدورانداینرھبںیماکروابریاداروںوکدرگیتہباسرےوجنلیچںاکاسانمرکانڑپا۔‬

‫العوہ ازںی کلم الیسب یک ااتفد یک زد ںیم راہ سج ےک ےجیتن ںیم رقتًابی نیت رکوڑ ارفاد وخراک‪ ،‬اپین اور راہشئ یک یمک ےس اتمرث اور رھگوں ےس رحموم رےہ۔‬
‫وکحتمتشیعمیکاانملک وصراحتلاورالیسبیکدعبیکابتہاکرویں ےسےنلکنےکےیلوکششرکریہےہ۔‬

‫زمدی ہی ہک ‪ ،‬رہ درآدمی نیل دنی ےک ےئل اٹیٹس کنیب آف اپاتسکن (اسی یب یپ) یک یگشیپ وظنمری احلص رکےن یک یئن روگیرٹیلی رشط ےن ینپمک ےک درشیپ‬
‫اکی امہ جنلیچ رھک دای۔ اتمہ ‪ ،‬ان امتم راکووٹں ےک ابووجد ‪ ،‬امہری میٹ اےنپ امتم اکیٹس وہڈلرز ےک اسھت دہعوں اک ارتحام رکےن ےک ےئل وبضمط اور دعتسم‬
‫ریہ۔‬

‫وبرڈ ےک ےئن ربممان وک بختنم رکےن ےک ےئل ڈارئرٹکیز ےک ااختنابت ‪ 13‬ونجری ‪ 2022‬وک دقعنم ےئک ےئگ۔ ںیم ینپمک ےک دکبسوش وہےن واےل وبرڈ ےس اینپ‬
‫رتہبنی الصوتیحں وک اامعتسل رکےک دختم رس ااجنم دےنی رپ ااہظر رکشت رکات وہں۔ ںیم اس ابت یک دصتقی رکات وہں ےک وبرڈ ےک وموجدہ ربممان اکروابری‬
‫ااظتنم ‪ ،‬وصنمہب دنبی ‪ ،‬امایلت ‪ ،‬اکروپرٹی وگرسنن‪ ،‬اقونین اورااظتنیم اُومر ںیم اخرط وخاہ اہمرت رےتھک ںیہ۔ زمدی ربآں وبرڈ ےک امتم ربممان ‪،‬ینپمک اور اُس‬
‫ےکرئیشوہڈلرزیکاجبنوافداریاوردھجمساریےسرفاضئیکااجنمدیہےکاقلبںیہ۔اوراینپذہمداریوکہشیمہشیپرظنرےتھکںیہ۔‬

‫زریِاجزئہاسلےکدوراناکیٹسوہڈلرزےکرتہبنیافمدوکربرقاررےنھکےکےیلوبرڈےناےنپرفاضئوخبیبااجنمدےی۔وبرڈےنینپمکےکاعمالمت یکومرث‬
‫اورہجیتنزیخادنازںیمرامنہیئاجریریھک۔‬

‫وبرڈےکرئیچنیمیکتیثیحےسںیمدصتقیرکاتوہںہکامتمربممانیکاجبنےستمکحیلمعاوروگرسننےکوموضاعترپاینپراےئاورایخالتےکااہظر‬
‫یک وحہلص ازفایئ یک اجیت ےہ۔ یسک یھب ہلصیف یک وظنمری ےس ےلہپ وخد اتخمر ڈارئرٹکیز‪ ،‬ایتیلق رئیش وہڈلرز ےک امندنئہ ڈارئرٹکی اور اطمہقل رجتہب رےنھک واےل‬
‫پ ن‬
‫مکوںےنفیچازگیویٹکی‪،‬فیچانفسنآرسیفاورینپمکرکیسرٹیےکاکمیک‬ ‫ڈارئرٹکیزیک راےئاوروشمروںوکیھباشلمایکاجاتےہ۔زمدیہیےکوبرڈاوراسیک ی‬
‫صیخشتاوراشمرہےےکنیعتاورارٹنلنآڈٹرسرباہیکاکررکدیگیکاجچنرپاتلوکیھبینیقیانبایےہ۔‬

‫وبرڈ ےن اینپ ویٹیمکں یک وتعس اور دحود (رٹزم آف ررفیسن ) واحض وطر رپ ایبن رک دی ںیہ۔ ربممان اک رقتر اُن یک ولطمہب اہمرت اور رجتہب یک اینبد رپ ایک ایگ‬
‫ےہ۔ اسل ےک دوران وبرڈ اور اس یک ویٹیمکں ےک اباقدعیگ ےس االجس دقعنم وہےئ سج ےک دوران رہ شیپ رظن اعمےلم رپ رضوری وغرووخض ےک دعب ہلصیف‬
‫تایک ایگ۔ وبرڈ اور اس یک ایٹیمکں اسالہن اینپ اکررکدیگ اک ازوخد اجزئہ یتیل ںیہ سج ےک ذرےعی ہی اانیمطن ایک اج ات ےہ ہک ربممان یک ارفنادی اور ومجمیع اکررکدیگ‬
‫�‬
‫صلیشخبریہ۔‬

‫ںیموبرڈیکاجبنےساےنپالمزنیم‪،‬رئیشوہڈلرز‪ ،‬اصرنیفاوردرگیاکیٹسوہڈلرزاکانیکرپولخصامحتی‪،‬نگلاورلسلسمتنحماکرکشہیادارکاتوہں۔‬

‫صلخم‪،‬‬

‫ٹ‬
‫ن‬
‫رکلاس��یف�واررن‬
‫رئیچنیموبرڈ‬

‫‪SIEMENS ANNUAL REPORT 2022‬‬ ‫‪87‬‬

Proxy Form

I/We___________________________________________________________________________________________________________________________

of________________________________________________ in the district of _______________________________________________being a member

of Siemens (Pakistan) Engineering Co. Ltd. hereby appoint

______________________________________________________________ of______________________________________________________________

or failing him __________________________________________________ of______________________________________________________________

as my/our proxy to vote for me/us and my/our behalf at the Annual General Meeting of the company to be held at Karachi on January 12, 2023

and at any adjournment thereof.

Dated this___________________________ day of______________________

Signature of the shareholder_______________________________________

Folio No:________________________________________________________

CDS Account No:_________________________________________________

Witnesses:

1. Signature:_____________________________________________________

Name:________________________________________________________

Revenue
Address:______________________________________________________
Stamp
CNIC No.

2. Signature:_____________________________________________________

Name:________________________________________________________

Address:______________________________________________________

CNIC No.

Notes:

1. This proxy form duly completed and signed across five rupees revenue stamp must be deposited at the company’s registered office
not less than 48 hours before the time for holding the meeting.

2. Witnessed by two persons for CDC account holder only.

3. CDC account holder shall also submit attested copies of their CNIC/passport and that of the proxy.

4. The proxy of CDC account holder shall produce his/her original CNIC/passport at the time of the meeting.

5. In case of corporate entity, the Board’s resolution/power of attorney with specimen signature of the proxy shall be submitted along
with this form.
 ‫سیمنس(پاکستان) انجینئرنگکمپنیلمیٹڈ‬
‫پراکسیفارم‬
‫م‪/‬مہ–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––‬‫ںی‬

‫ہقلعتم–––––––––––––––––––––––––––––––––––––––––––––––––علض–––––––––––––––––––––––––––––––––––––––––––––––––––––‬
‫ںی ث ت‬ ‫ن نئ‬ ‫ن‬
‫حےس‬
‫��‬
‫ملےکربمموہےنیک ںی‬ ‫ںی‬
‫ا�رگنینپمک ڈ‬‫س�ںیم�س(اپاتسکن) ج ںی‬

‫––––––––––––––––––––––––––––––––––––––––––––––––––––ہقلعتم–––––––––––––––––––––––––––––––––––––––––––––––––––––‬
‫وک اںی�––––––––––––––––––––––––––––––––––––––––––––––––––ہقلعتم–––––––––––––––––––––––––––––––––––––––––––––––––––––‬
‫ےگ۔‬ ‫ووٹ ی ںی‬
‫د�ےگ۔‬
‫د�‬ ‫ہگجووٹ‬
‫ری‪/‬امہریہگج‬
‫مری‪/‬امہری‬‫م ی ںی‬
‫م‬ ‫م‬‫اعم ی ںی‬
‫االجساعم‬
‫اسالہناالجس‬
‫ےکاسالہن‬
‫ینپمکےک‬
‫واےلینپمک‬
‫وہےنواےل‬
‫دقعنموہےن‬
‫اسھتدقعنم‬
‫ےکاسھت‬ ‫یسک ی ںی‬
‫دبت�ےک‬
‫دبت�‬ ‫‪2016‬ءوکوک ی�ا ںیا�یسک‬
‫ونجری‪2023‬ء‬
‫‪12‬ونجری‬ ‫مومرہخ‬
‫ومرہخ‪26‬‬ ‫م‬‫رکایچ ی ںی‬
‫�وجوجرکایچ‬
‫�‬‫رکےت ہ ی ہ ںی‬
‫وہں‪/‬رکےت‬
‫رکاتوہں‪/‬‬
‫رقمررکات‬
‫ابتمدلرقمر‬
‫اانپابتمدل‬
‫وکوکاانپ‬

‫ںی ن‬
‫ٓاجاتبر�–––––––––––––––––––––ہقلعتمدن–––––––––––––––––––––‬

‫تنظ ث ئ‬
‫دس ںی ر‬
‫�وہڈلرز–––––––––––––––––––––––––––––––––––––––––––‬
‫ںی و‬
‫وفلربمن‪––––––––––––––––––––––––––––––––––––––––––––––––:‬‬
‫‪CDS‬ااکٔوٹنربمن‪––––––––––––––––––––––––––––––––––––––––––:‬‬

‫وگااہن‪:‬‬
‫دطختس––––––––––––––––––––––––––––––––––––––––––––––––––––––‬ ‫‪۱‬۔‬
‫انم‪–––––––––––––––––––––––––––––––––––––––––––––––––––––––:‬‬ ‫ن‬
‫ر�ںی ںی و‬
‫و�اپمٹس‬
‫ہتپ‪–––––––––––––––––––––––––––––––––––––––––––––––––––––––:‬‬
‫وقیمانشیتخاکرڈربمن‪:‬‬

‫دطختس––––––––––––––––––––––––––––––––––––––––––––––––––––––‬ ‫‪۲‬۔‬
‫انم‪–––––––––––––––––––––––––––––––––––––––––––––––––––––––:‬‬
‫ہتپ‪–––––––––––––––––––––––––––––––––––––––––––––––––––––––:‬‬
‫وقیمانشیتخاکرڈربمن‪:‬‬
‫ونسٹ‪:‬‬
‫ماالجسےکرشوعوہےنےکوتقےسمکازمک‪48‬ےٹنھگلبقالزیموطررپعمجرکا ںیا�اجےئ۔‬‫رسڈیٹکٹرپدطختسےکاسھتینپمکےکررٹسجڈدرتف ںی‬ ‫�ںی رپایسکافرملمکموطرےسرُپرکےکاپچنروےپیک ںی‬ ‫‪1‬۔‬
‫�جح�ںی�ث ت‬
‫رصف‪CDS‬ااکٔوٹنوہڈلرزےکےئلدوارفادےک � ںی�وگاہدطختسوہانرضوریےہ۔‬ ‫‪2‬۔‬
‫‪CDS‬ااکٔوٹنوہڈلرزوکاےنپاوراےنپرپایسکےکوقیمانشیتخاکرڈ‪/‬اپوپسرٹیکوفوٹاکیپیھبعمجرکاینوہیگ۔‬ ‫‪3‬۔‬
‫پث‬
‫�رکانوہاگ۔‬ ‫مرشتکےکوتقاانپالصوقیمانشیتخاکرڈ‪/‬اپوپسرٹ ںی‬ ‫‪CDC‬ااکٔوٹنوہڈلرےکرپایسکوکاالجس ںی‬ ‫‪4‬۔‬
‫موبرڈیکرقارداد‪/‬اپورٓافااٹرینعمرپایسکےکدطختساکومنہناسافرمےکرمہاہعمجرکاےنوہںےگ۔‬ ‫ںی �‬
‫اکروپر�ادارےوہےنیکوصرت ںی‬ ‫‪5‬۔‬
Dividend Mandate Form

THK Associates (Pvt.) Limited

Plot No. 32-C, Jami Commercial Street 2,

D.H.A., Phase VII,

Karachi-75500. Pakistan

I, Mr./Mrs./Ms.______________________________________________________S/O,W/O,D/O________________________________________________

hereby authorize Siemens (Pakistan) Engineering Co. Ltd. to directly credit cash dividend declared by it, if any, in the below mentioned

bank account:

i) Personal Information

Name of shareholder

Folio No. /CDC Participant ID A/C No.

CNIC No*

Passport No, (in case of foreign shareholder)**

Land Line Phone Number

Cell Number

E mail address

ii) Bank Details

Title of Bank Account

Name of Bank

Branch Name and Address

IBAN

ISO Country code

IBAN Check Digits

BBAN

Bank Identifier

Account Number

SEPA Member

__________________________

Signature of the Shareholder Date: _______________________

Request Form
for Annual Report and Notices through E-mail

THK Associates (Pvt.) Limited

Plot No. 32-C, Jami Commercial Street 2,

D.H.A., Phase VII,

Karachi-75500. Pakistan

Date: __________________________

Dear Sirs

I hereby instruct you to send from now onwards the Annual Report of Siemens (Pakistan) Engineering Co. Ltd. and all notices under

Companies Act, 2017 at my E-mail address given below:

________________________________________________________________

(E-mail address of the shareholder)

The above E-mail address will be recorded in the members register maintained under section 119 of the Companies Act, 2017. I will inform

the Company and the Registrar about any change in my E-mail address immediately. Henceforth, I will receive the Accounts and Notices

only on the above E-mail address, unless a hard copy has been specifically requested by me.

________________________________

(Signature)

Name of the shareholder:

_____________________________________________________________

Folio No: ________________________

(In case of physical shareholding)

CDC Account No.: ________________

Note: Individual CDC Account holders should submit copy of their Computerized National Identity Card (CNIC) along with this request form.
Jama Punji is an Investor
Education Initiative of
Securites and Exchange
Commission of Pakistan *Mobile apps are also available for download for android and iso devices
Karachi Islamabad Office Afghanistan Office
Head Office and Plant 10th Floor, UBL Tower, Siemens Afghanistan Branch,
B-72 Estate Avenue, S.I.T.E, Jinnah Avenue Blue Area, Darulaman Road, Karteh Seh,
Karachi-75700. Islamabad. House No: 635, Street No: 11,
Phone: +9221-32574910-19 Phone: +9251-2075444 District - 06 Kabul, Afghanistan.
UAN: +9221-111-077-088 Fax: +9251-2812162 Phone: +93 20 2500640 / 642
+9251-2812163 Fax: +93 20 2500641
Mobile: +93 799508840

Karachi Lahore Office Dubai Office

City Office 15-A, 2nd Floor, State Life Building, Overseas Office Dubai,
Office Wing Suite No 209(b), Davis Road, Al Waha Community Building,
2nd Floor, Park Tower, P.O. Box No. 293, Office No. 2005, 2nd Floor,
Shahrah-e-Firdousi, Clifton, Lahore-54000. Near Deira International School,
Karachi-75600. Phone: +9242-37319500 Nad Al Hamar Road,
Phone: +9221-35876391 Fax: +9242-36363126 P.O. Box # 35397, Ras Al Khor,
+9221-35876386 Dubai, U.A.E.
Phone: +971 4 2898071-75

Siemens (Pakistan) Engineering Co. Ltd. UAN: 111-077-088