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CONTENTS
Company Information
Performance of the Company at a Glance
Notice of Meeting
Report of the Directors
Mission Statement & Vision
Statement of Ethics and Business Practices
Statement of Compliance with Best Practices
, of Corporate Governance
Auditors' Report to the Members
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Statement of Changes in Equity
Notes to the Accounts
Pattern of Shareholding
COMPANY INFORMATION
BOARD OF DIRECTORS
	EBRAHIM HAJI KARIM - CHAIRMAN
	UMER HAJI KARIM-CHIEF EXECUTIVE
	ANWAR HAJI KARIM
	YAKOOB HAJI KARIM
	AHMED EBRAHIM
	PIR MUHAMMAD A. KALIYA
	ATHER HUSSAIN MEDINA
	IQBAL ISMAIL
AUDIT COMMITTEE
	PIR MUHAMMAD A. KALIYA - CHAIRMAN
	YAKOOB HAJI KARIM
	IQBAL ISMAIL
SECRETARY
	M. SALEEM AZIZ
BANKERS
	HABIB BANK LIMITED
	HABIB BANK AG ZURICH
	CITIBANK N.A.
	AMERICAN EXPRESS BANK LIMITED
	METROPOLITAN BANK LIMITED
	BANK AL-HABIB LIMITED
	MUSLIM COMMERCIAL BANK LIMITED
	NATIONAL BANK OF PAKISTAN
	BANK ALFALAH LIMITED
AUDITORS
	TASEER HADI KHALID & CO.
	CHARTERED ACCOUNTANTS
LEGAL ADVISORS
	TASAWUR ALI HASHMI
	ADVOCATES
REGISTERED OFFICE
	3RD FLOOR, KARACHI DOCK LABOUR BOARD
	BUILDING, 58-WEST WHARF ROAD,
	KARACHI-74000
FACTORY
	F.1,2,3, & F.13, 14 & 15,
	HUB INDUSTRIAL TRADING ESTATE,
	DISTRICT LASBELLA, BALOCHISTAN
PERFORMANCE OF THE COMPANY AT A GLANCE
						EIGHTEEN
			YEAR			MONTHS			YEAR
			ENDE			ENDED			ENDED
			DECEMBER			JUNE 30			JUNE 30
		1992	1993	1994	1995	1997	1998	1999	2000	2001	2002
STATISTICAL SUMMARY		Rupeees in million
Gross sales		833	1,143	1,409	1,699	2,054	1,170	1,013	1,558	1,880	1,899
Profit/(loss) before taxation		35	154	257	274	36	(8)	12	122	153	129
Taxation		4	5	6	7	9	5	1	38	56	39
Profit/(loss) after taxation		31	149	251	267	27	(13)	11	84	97	90
Gross assets employed		1,290	1,365	1,443	1,481	1,477	1,446	1,392	1,306	1,262	1,296
(including capital work-in-progress)
Paid-up capital		374	374	448	560	560	560	560	560	560	560
Shareholders' equity		416	565	816	985	1,012	999	969	997	996	974
EARNING AND PAY OUT		Rupees per share of Rs.10/- each
Earnings per share after taxation		1	4	6	5	0	(0)	0	2	2	2
Break-up value		11	15	18	18	18	18	17	18	18	17
Bonus shares		-	1:5	1:4	-	-	-	-	-	-	-
Cash dividend		-	-	-	2	-	-	1	1	2	2
*The net earning per share for the year ended June 30 1998 was negative
FINANCIAL RATIOS		Ratios
Current Assets : Current Liabilities		0.63:1	0.86:1	1.12:1	1.30:1	1.31:1	1.34:1	1.39:1	2.05:1	3.18:1	?RO-1
Long-term Debts : Equity		55:45	42:58	25:75	13:87	7:93	2:98	0:100	0:100	0:100	0:100
PRODUCTION		Tonnes
Polyester Staple Fibre		16,673	20,858	19,430	17,834	27,290	21,055	18,745	22,142	22,679	22,524
Polyester Chips		-	497	772	1,267	976	-		2,834	3,660	5,052
TOTAL		16,673	21,355	20,202	19,101	28,266	21,055	18,745	24,976	26,339	27,576
NOTICE OF MEETING
Notice is hereby given that the Seventeenth Annual General Meeting of Pakistan Synthetics Limited
will be held on Monday, 04 November 2002 at 5.00 p.m. at the Auditorium of the Institute of
Chartered Accountants of Pakistan, G-31, Block-8, Chartered Accountants Avenue, Clifton,
Karachi - Pakistan, to transact the following business:-
1. To confirm the minutes of the Sixteenth Annual General Meeting of the Company held on
29 December 2001. .
2. To receive, consider and adopt the Audited Accounts of the Company together with Directors'
and Auditors' Reports for the year ended 30 June 2002.
3. To approve the payment of a Final Dividend for the year ended 30 June 2002 as recommended
by the Board of Directors.
4. To appoint the Auditors of the Company and fix their remuneration.
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
Karachi: 25 September 2002
UMER HAJI KARIM
CHIEF EXECUTIVE
NOTICE OF MEETING
NOTES:-
1.    The Register of Members and the Shares Transfer Books of the Company will remain closed from
Monday, 21 October 2002 to Monday, 04 November 2002 (both days inclusive). Transfers received at the
Registered Office of the Company at the close of business on 19 October 2002 will be treated in time for the
purposes of determining the entitlement for the payment of proposed cash dividend to the transferees and to
attend the Annual General Meeting of the Company.
2.    A member of the Company entitled to attend and to vote at the meeting may appoint any other member as his/
her proxy to attend, speak and vote at the meeting on his/her behalf. Instrument appointing proxies, in order
to be effective, must be received at the Registered Office of the Company at 3rd Floor, Karachi Dock Labour
Board Building, 58-West Wharf Road, Karachi, duly stamped, signed and witnessed not less than 48 hours
before the time of holding the meeting.
3    Account holders and sub-account holders holding book entry securities of the Company in Central Depository
Company of Pakistan Limited, who wish to attend the Annual General Meeting, are requested to bring original
National Identity Card with copy thereof duly attested by their Bankers for identification purpose and should
present their CDC Account Number.
4.    Members are requested to notify the Company if there is any change in their addresses immediately.
CDC Account Holders will further have to follow the undermentioned guidelines as laid down in
Circular 1 dated January 26,2000 issued by the Securities and Exchange Commission of Pakistan:
A.   For Attending the Meeting:
i)     In case of individuals, the account holder orsub-account holderand/orthe person whose securities are in group
account and their registration details are uploaded as per the Regulations, shall authenticate his identity by
showing his original National Identity Card (NIC) or original passport at the time of attending the meeting.
ii)    In case of corporate entity, the Board of Directors' resolution/power of attorney with specimen signature of the
nominee shall be produced (unless it has been provided earlier) at the time of the meeting.
B.   For Appointing Proxies:
i)     In case of individuals, the account holder or sub-account holderand/orthe person whose securities are in group
account and their registration details are uploaded as per the Regulations, shall submit the proxy form as per
the above requirement.
ii)    The proxy form shall be witnessed by two persons whose names, addresses and NIC numbers shall be mentioned
on the form.
iii)    Attested copies of NIC or the passport of the beneficial owners and the proxy shall be furnished with the proxy
form.
iv)   The proxy shall produce his original NIC or original passport at the time of the meeting.
v)    In case of corporate entity, the Board of Directors' resolution/power of attorney with specimen signature shall
be submitted (unless it has been provided earlier) alongwith proxy form to the Company.
REPORT OF THE DIRECTORS FOR THE YEAR ENDED 30 JUNE 2002
The Directors of Pakistan Synthetics Limited are pleased to present the 17th Annual Report of
the Company together with the Audited Accounts for the year ended 30 June 2002.
BOARD OF DIRECTORS
Mr. Muhammad Aslam Motiwala, a Director of the Company resigned and Mr. Yakoob Haji Karim
was appointed as Director in his place . The Board places on record its appreciation of the valuable
services rendered by Mr. Motiwala. The Board also extends a warm welcome to Mr. Yakoob Haji Karim
as a Director. The Company would be benefitted by his active participation in the affairs of the
Company.
OVERVIEW
Inspite of difficult economic conditions during the year under review, and the closure of the plant
for about a month (from 18 August 2001 to 14 September 2001) for major overhauling and
maintenance, the overall performance of the Company remained satisfactory and the production,
turnover and profitability of your Company were maintained.
PRODUCTION
The Company produced 22,524 tons of Polyester Staple Fibre and 5,052 tons of Polyester Chips
during the year under review as against 22,679 tons of Polyester Staple Fibre and 3,660 tons of
Polyester Chips respectively in the corresponding last year.
FINANCIAL RESULTS
As stated above, the overall performance of the Company during the year under review was
satisfactory. The gross turnover increased to Rs. 1,899 million as against turnover of Rs. 1,880 million
in the corresponding last year, which was mainly due to an increase in the rate of sales tax from 15%
to 20% w.e.f. 18 June 2001. However, the net turnover decreased marginally from Rs. 1,624 million
to Rs. 1,573 million during the year under review, which was mainly due to lower in sales price of
Polyester Staple Fibre as compared to last year.
The prices of basic raw materials i.e. PTA & MEG remained volatile in international market during
the year under review. The price of PSF was revised in line with the raw materials cost.
By the grace of Almighty Allah, the Company earned a net profit, before taxation,
of Rs. 129.294 million compared to net profit, before taxation, of Rs. 153.318 million in the
last year. The net profit , after providing for taxation and prior year tax adjustment, worked
out to Rs. 89.755 million.
REPORT OF THE DIRECTORS FOR THE YEAR ENDED 30 JUNE 2002
Your Directors are pleased to propose the payment of cash dividend of Rs. 2.00 per share for
the year under review (2001 : Rs. 1.75 per share).
Accordingly, the following appropriations have been proposed:-
Net profit after taxation				(Rs. '000)
Unappropriated profit brought forward				89,755
Profit available for appropriation				2,994
Transfer from revenue reserve				92,749
				20,000
Appropriations:-				112,749
Final dividend @ Rs. 2.00 per share of Rs. 10 each
Unappropriated profit carried forward				112,080
				669
EARNINGS PER SHARE
The net earning per ordinary share of Rs. 10 each after providing for taxation for the year
ended 30 June 2002 was Rs. 1.60 (2001: Rs. 1.73).
FUTURE OUTLOOK
The Government reduced the effective protection of PSF by reducing duty on PSF from 25%
to 20% and including the import of PSF under the Duty and Tax Remission for Export (DTRE)
Scheme, as announced in the Federal Budget 2002-2003.
It would have resulted in import of PSF in the country thereby severely contracting the
market for domestic polyester staple fibre manufacturers and would have affected the viability of
this industry, if the Polyester Staple Fibre Manufacturers Group would not have taken up the
matter wih the authorities for corrective measures.
Polyester Staple Fibre Manufacturers Group submitted their point of view to the Ministry of
Finance, Government of Pakistan, Islamabad and we are pleased to note that the Government
reviewed its earlier decision and excluded PSF from the Duty and Tax Remission for Export
(DTRE) Scheme.
The recent expansion undertaken by the three largest producers of fibre has increased the
domestic capacity by more than 50% (230,000 tpa). Consequently, there will be an over capacity
of locally manufacured PSF for atleast 3 years and the local prices of PSF would be under
pressure.
The prices of PTA, which increased to US$ 645 per ton in the month of May 2002, reduced
to US$ 510 per ton during the month of August 2002. Similarly, the prices of MEG, which were
at US$ 570 per ton in the month of June 2002, reduced to US$ 470 per ton during the month of
August 2002. The prices of locally manufactured PSF were adjusted to match with the trend of
the prices of PTA and MEG.
REPORT OF THE DIRECTORS FOR THE YEAR ENDED 30 JUNE 2002
AUDITORS
Last year, your Directors took the initiative to adopt the policy to rotate the auditors every
three years and hence M/s. Taseer Hadi Khalid & Co., Chartered Accountants, were appointed
as Auditors of the Company for the year ended 30 June 2002.
The present Auditors, M/s. Taseer Hadi Khalid & Co., Chartered Accountants, retire and
being eligible offer themselves for re-appointment.
CODE OF CORPORATE GOVERNANCE
The 'Code of Corporate Governance' was recently introduced by the Stock Exchanges
in Pakistan in their Listing Rules at the instance of Securities & Exchange Commission of
Pakistan. Provisions of the Code relevant for the period from 2 May 2002 to 30 June 2002 have
been duly complied with and Management has initiated the necessary steps to ensure its full
implementation.
STATEMENTS ON CORPORATE AND FINANCIAL REPORTING FRAME WORK
a.   The financial statements, prepared by the management of the Company, present fairly its state
of affairs, the result of its operations, cash flows and changes in equity.
b.   Proper books of account of the Company have been maintained.
c.   Appropriate accounting policies have been consistently applied in preparation of finanacial
statements and accounting estimates are based on reasonable and prudent judgment.
d.   International Accounting Standards, as applicable in Pakistan, have been followed in preparation
of financial statements.
e.   The system of internal control is sound in design and has been effectively implemented and
monitored. The process of review will continue and any weaknesses in control will be removed.
f.    There are no significant doubts upon the Company's ability to continue as a going concern.
g.   There has been no material departure from the best practices of corporate governance, as
detailed in the listing regulations.
h.   Key operating and financial data of last ten years in summarized form is annexed on
Page No. 3.
i.    There were no outstanding taxes and levies as at 30 June 2002.
REPORT OF THE DIRECTORS FOR THE YEAR ENDED 30 JUNE 2002
j.    During the year five (5) meetings of the Board of Directors were held. Attendance of each
Director was as follows:-
Name of Director(s)			No. of Meetings
			Attended
Mr. Ebrahim Haji Karim			4
Mr. Umer Haji Karim			4
Mr. Anwar Haji Karim			4
Mr. Muhammad Aslam Motiwala			5
Mr. Ahmed Ebrahim			5
Mr. S. Zubair Ahmed			2
(Resigned from Directorship of the Company w.e.f. 18.01.2002)
Mr. Ather Hussain Medina			4
Mr. Pir Muhammad A. Kaliya			4
(Appointed Director of the Company on 08.10.2001)
Mr.lqbal Ismail			3
(Appointed Director of the Company on 24.01.2002)
Leave of absence was granted to Directors who could not attend the Board meetings.
k.   The Pattern of shareholding is annexed to Page No. 34.
I.    No trades in the shares of the Company were carried out during the year under review by
the directors, CEO, CFO, Company Secretary and their spouses and minor children.
ACKNOWLEDGEMENT
The Management would like to place on record its deep appreciation for the untiring
efforts and dedication shown by its employees for the progress of the Company during the year
under review.
For and on behalf of the
Board of Directors
Karachi: 25 September 2002
UMER HAJI KARIM
CHIEF EXECUTIVE
MISSION STATEMENT
OF
PAKISTAN SYNTHETICS LIMITED
Our Mission is to be a quality producer
of Polyester Staple Fibre, continuously
striving for excellence.
VISION