consolidated financial statements - ptcl › images › financial_files › ... · the management...

Consolidated Financial StatementsFor the year ended June 30, 2011

87 Annual Report 2011

88 Pakistan Telecommunication Group

Auditors’ Report to the Members on Consolidated Financial Statements

We have audited the annexed consolidated financial statements comprising consolidated statement of financial position of Pakistan Telecommunication Company Limited (the Holding Company) and its subsidiary company, Pak Telecom Mobile Limited as at June 30, 2011 and the related consolidated statement of comprehensive income, consolidated statement of cash flows and consolidated statement of changes in equity together with the notes forming part thereof, for the year then ended. We have also expressed separate opinion on the financial statements of Pakistan Telecommunication Company Limited. The financial statements of subsidiary company, Pak Telecom Mobile Limited, was audited by one of the joint auditors, A.F. Ferguson & Co., whose report has been furnished to us and our opinion, in so far as it relates to the amounts included for such company, is based solely on the report of the said joint auditor. These financial statements are the responsibility of the Holding Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

Our audit was conducted in accordance with the International Standards on Auditing and accordingly included such tests of accounting records and such other auditing procedures as we considered necessary in the circumstances.

In our opinion, the consolidated financial statements present fairly the financial position of Pakistan Telecommunication Company Limited and its subsidiary company as at June 30, 2011 and the results of its operations for the year then ended.


Consolidated Statement of Financial PositionAs at June 30, 2011

2011 2010 Note Rs ‘000 Rs ‘000

Equity and liabilities Equity Share capital and reserves Share capital 6 51,000,000 51,000,000 Revenue reserves Insurance reserve 2,385,532 2,113,704 General reserve 30,500,000 30,500,000 Unappropriated profit 23,669,848 24,461,054 56,555,380 57,074,758 Unrealized gain on available-for-sale investments 30,590 – 107,585,970 108,074,758 Liabilities Non-current liabilities Long-term loans from banks 7 11,000,000 13,000,000 Liability against assets subject to finance lease 8 83,439 – Payable to PTA against license fee 9 138,246 169,847 Long-term security deposits 10 1,646,400 1,295,008 Deferred taxation 11 15,498,413 10,633,651 Employees’ retirement benefits 12 17,018,391 15,676,877 Deferred government grants 13 3,631,585 1,632,701 Long-term vendor liability 14 3,188,375 10,459,040 52,204,849 52,867,124 Current liabilities Trade and other payables 15 34,306,442 33,697,723 Interest accrued 387,114 284,273 Short-term running finance 234,676 – Current portions of: Long-term loans from banks 7 9,000,000 – Liability against assets subject to finance lease 8 32,075 – Payable to PTA against license fee 9 42,984 1,935,288 Long-term vendor liability 14 3,232,951 5,980,398 Unearned income 1,592,680 1,855,127 Dividend payable 3,375,631 3,375,631 52,204,553 47,128,440

Total equity and liabilities 211,995,372 208,070,322

Contingencies and commitments 16

The annexed notes from 1 to 50 form an integral part of these consolidated financial statements.

Chairman


Consolidated Statement of Financial PositionAs at June 30, 2011

2011 2010 Note Rs ‘000 Rs ‘000

Assets Non-current assets Fixed assets Property, plant and equipment 17 156,173,748 151,782,342 Intangible assets 18 3,906,996 4,017,475

160,080,744 155,799,817

Long-term investments 19 107,553 108,910 Long-term loans 20 552,760 337,210

160,741,057 156,245,937

Current assets Stores, spares and loose tools 21 3,369,488 4,075,863 Stock-in-trade 22 577,434 385,199 Trade debts 23 9,434,885 10,385,233 Loans and advances 24 773,746 718,211 Deposits and prepayments 25 1,295,348 1,244,623 Accrued interest 26 377,822 456,523 Recoverable from tax authorities 27 13,317,194 7,747,957 Receivable from Government of Pakistan 28 2,164,072 2,164,072 Other receivables 29 504,042 1,080,279 Short-term investments 30 2,642,378 13,493,865 Cash and bank balances 31 16,797,906 10,072,560 51,254,315 51,824,385

Total assets 211,995,372 208,070,322

President & CEO


Consolidated Statement of Comprehensive IncomeFor the year ended June 30, 2011

2011 2010 Note Rs ‘000 Rs ‘000

Revenue 32 104,590,337 98,905,765

Cost of services 33 (68,684,962) (61,995,745)

Gross profit 35,905,375 36,910,020

Administrative and general expenses 34 (14,291,315) (12,514,871)

Selling and marketing expenses 35 (7,515,175) (7,744,153)

Other operating income 36 4,459,484 5,277,011

(17,347,006) (14,982,013)

Operating profit 18,558,369 21,928,007

Finance costs 37 (2,774,014) (3,293,496)

15,784,355 18,634,511

Share of (loss) / profit from an associate (1,357) 1,254

Profit before tax 15,782,998 18,635,765

Taxation:

Group (7,377,376) (6,888,502)

Associate – (439)

38 (7,377,376) (6,888,941)

Profit for the year 8,405,622 11,746,824

Other comprehensive income for the year Unrealized gain on available-for-sale investments - net of tax 30,590 –

Total comprehensive income for the year 8,436,212 11,746,824

Earnings per share - basic and diluted (Rupees) 39 1.65 2.30


Chairman President & CEO


Consolidated Statement of Cash FlowsFor the year ended June 30, 2011

Note 2011 2010 Rs ‘000 Rs ‘000

Cash flows from operating activities Cash generated from operations 41 43,084,799 43,438,939 Long-term security deposits 351,392 (183,756) Employees’ retirement benefits paid (1,924,391) (586,041) Payment of other VSS components (9,885) (5,323) Finance cost paid (2,553,382) (1,477,754) Income tax paid (7,818,210) (10,036,557)

Net cash inflows from operating activities 31,130,323 31,149,508

Cash flows from investing activities Capital expenditure (25,719,495) (28,113,075) Acquisition of a subsidiary - net of cash acquired – 3,990 Acquisition of intangible assets (514,795) (316,645) Proceeds from disposal of property, plant and equipment 245,313 247,333 Short-term investments – 1,221,886 Long-term loans - net (187,012) (53,655) PTA license fee (1,936,100) (257,653) Consideration paid related to acquisition of MAXCOM (31,912) – Investment in mutual funds (750,000) – Proceeds from sale of mutual funds 768,915 – Return on long-term loans and short-term investments 2,497,035 4,366,926 Government grants received 2,077,688 571,657 Dividend income on long-term investments 36,000 22,000

Net cash outflows from investing activities (23,514,363) (22,307,236)

Cash flows from financing activities Long-term loan received 7,000,000 4,000,000 Long-term vendor liability (10,018,112) (16,967,910) Liabilities against assets subject to finance lease (42,123) – Long-term loan paid – (100,949) Dividend paid (8,916,542) (13,188,458)

Net cash outflows from financing activities (11,976,777) (26,257,317)

Net decrease in cash and cash equivalents (4,360,817) (17,415,045) Cash and cash equivalents at the beginning of the year 23,566,425 40,981,470

Cash and cash equivalents at the end of the year 42 19,205,608 23,566,425




Consolidated Statement of Changes in EquityFor the year ended June 30, 2011

Issued, subscribed and paid–up capital Revenue reserves Unrealised gain on Insurance General Unappropriated available-for-sale Class “A” Class “B” reserve reserve profit investments Total

Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

Balance as at July 01, 2009 37,740,000 13,260,000 1,683,074 30,500,000 22,069,860 – 105,252,934

Total comprehensive income for the year Profit for the year – – – – 11,746,824 – 11,746,824 Other comprehensive income – – – – – – –

– – – – 11,746,824 – 11,746,824

Transfer to insurance reserve – – 430,630 – (430,630) – –

Transactions with owners:Interim dividend for the year ended June 30, 2010 @ Rs 1.75 per ordinary share of Rs 10 each – – – – (8,925,000) – (8,925,000)

Total transactions with owners – – – – (8,925,000) – (8,925,000)

Balance as at June 30, 2010 37,740,000 13,260,000 2,113,704 30,500,000 24,461,054 – 108,074,758

Total comprehensive income for the year Profit for the year – – – – 8,405,622 – 8,405,622 Other comprehensive income – – – – – 30,590 30,590

– – – – 8,405,622 30,590 8,436,212

Transfer to insurance reserve – – 271,828 – (271,828) – –

Transactions with owners:Interim dividend for the year ended June 30, 2011 @ Rs 1.75 per ordinary share of Rs 10 each – – – – (8,925,000) – (8,925,000)

Total transactions with owners – – – – (8,925,000) – (8,925,000)

Balance as at June 30, 2011 37,740,000 13,260,000 2,385,532 30,500,000 23,669,848 30,590 107,585,970




Notes to and Forming Part of the Consolidated Financial StatementsFor the year ended June 30, 2011

1. Legal status and nature of business1.1 Constitution and ownership The consolidated financial statements of the Pakistan Telecommunication

Company Limited and its subsidiaries (“the Group”) comprise of the financial statements of:

Pakistan Telecommunication Company Limited (PTCL)

Pakistan Telecommunication Company Limited (“the holding Company”) was incorporated in Pakistan on December 31, 1995 and commenced business on January 01, 1996. The Company is listed on Karachi, Lahore and Islamabad stock exchanges. The Company was established to undertake the telecommunication business formerly carried on by Pakistan Telecommunication Corporation (PTC). The business was transferred to the Company on January 01, 1996 under the Pakistan Telecommunication (Re-organization) Act, 1996 at which date the Company took over all the properties, rights, assets, obligations and liabilities of PTC except those transferred to National Telecommunication Corporation (NTC), Frequency Allocation Board (FAB), Pakistan Telecommunication Authority (PTA) and Pakistan Telecommunication Employees Trust (PTET). The registered office of the Company is situated at PTCL Headquarters, G-8/4, Islamabad.

As a consequence of PTCL’s privatization during 2006, 26 % of its shares were acquired by Etisalat International Pakistan LLC, based in the UAE.

Pak Telecom Mobile Limited (PTML)

PTML was incorporated in Pakistan on July 18, 1998, as a public limited company, to provide cellular mobile telephony services in Pakistan. PTML commenced its commercial operations on January 29, 2001, under the brand name of Ufone. It is a wholly owned subsidiary of PTCL. The registered office of PTML is situated at F-7 Markaz, Islamabad.

Maskatiya Communications (Private) Limited (MAXCOM)

On March 01, 2010 the holding Company acquired 100 % shares of MAXCOM. MAXCOM has been voluntarily wound up, effective June 01, 2011 based on a special resolution passed by the members of MAXCOM. The net assets of MAXCOM have been transferred to PTCL at a book value amounting to Rs 68,382 thousand and the goodwill related to acquisition of MAXCOM has been written off during the year.

1.2 Activities of the Group The Group provides telecommunication and broadband internet services in

Pakistan. PTCL owns and operates telecommunication facilities and provides domestic and international telephone services throughout Pakistan. PTCL has also been licensed to provide such services to territories in Azad Jammu and

Kashmir and Gilgit-Baltistan. PTML provides cellular mobile telephony services throughout Pakistan and Azad Jammu and Kashmir.

2. Statement of compliance These consolidated financial statements have been prepared in accordance

with the approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under the Companies Ordinance 1984, and provisions of and directives issued under the Companies Ordinance 1984. In case requirements differ, the provisions or directives of the Companies Ordinance 1984 shall prevail.

2.1 Adoption of new and revised standards and interpretations: The following amendments, revisions and interpretations to published accounting

standards were not effective during the year and have not been early adopted by the Group:

Effective date (annual periods beginning on or after)

IFRS 7 Financial instruments: Disclosures (Amendments) January 01, 2011 & July 01, 2011

IAS 1 Presentation of financial statements (Amendments) January 01, 2011 & July 01, 2012

IAS 12 Income taxes (Amendments) January 01, 2012

IAS 19 Employee benefits (Amendments) January 01, 2013

IAS 24 Related party disclosures (Revised) January 01, 2011

IAS 27 Separate Financial Statements (Revised) January 01, 2013

IAS 28 Investments in Associates and Joint Venture (Revised) January 01, 2013

IAS 34 Interim Financial Reporting (Amendments) January 01, 2011

IFRIC 13 Customer Loyalty Programmes (Amendments) January 01, 2011

IFRIC 14 The limit on a defined benefit asset, minimum funding requirements and their interaction (Amendments) January 01, 2011

The management anticipate that, except for the effects on the consolidated financial statements of amendments to IAS 19 “Employee Benefits”, the adoption of the above standards, amendments and interpretations in future periods, will have no material impact on the consolidated financial statements other than in presentation / disclosures. The application of the amendments to IAS 19 would result in the recognition of cumulative unrecognized actuarial gains / losses in other comprehensive income in the period of initial application, which cannot



be presently quantified on the date of the consolidated statement of financial position.

Further, the following new standards have been issued by the International Accounting Standards Board (IASB), which are yet to be notified by the Securities and Exchange Commission of Pakistan, for the purpose of their applicability in Pakistan:

Effective date (annual periods beginning on or after)

IFRS 1 First-time adoption of international financial reporting standards (Amendments) July 01, 2009

IFRS 9 Financial instruments January 01, 2013

IFRS 10 Consolidated financial statements January 01, 2013

IFRS 11 Joint arrangements January 01, 2013

IFRS 12 Disclosure of interests in other entities January 01, 2013

IFRS 13 Fair value measurement January 01, 2013

3. Basis of preparation These consolidated financial statements have been prepared under the historical

cost convention, except for the revaluation of certain financial instruments at fair value and the recognition of certain employees’ retirement benefits on the basis of actuarial assumptions.

4. Significant accounting judgements and estimates The preparation of consolidated financial statements in conformity with approved

accounting standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. Estimates and judgements are continually evaluated and are based on historic experience, including expectations of future events that are believed to be reasonable under the circumstances. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are as follows:

(a) Provision for employees’ retirement benefits

The actuarial valuation of pension, gratuity, medical and compensated leave absence plans (note 5.21) requires the use of certain assumptions related to future periods, including an increase in remuneration / medical costs, expected long-term returns on plan assets and the discount rate used to discount future cash flows to present values.

(b) Provision for income taxes

The Group recognizes tax provisions using estimates based upon expert opinions of its tax and legal advisors. Differences, if any, between the recorded income tax provision and the Group’s tax liability, are recorded on the final determination of such liability. Deferred income tax (note 5.20) is calculated at the rates that are expected to apply to the period when the differences reverse, based on tax rates that have been enacted or substantively enacted, by the date of the consolidated statement of financial position.

(c) Useful life and residual value of fixed assets

The Group reviews the useful lives and residual values of fixed assets (note 5.11) on a regular basis. Any change in estimates, may affect the carrying amounts of the respective items of property, plant and equipment and intangible assets, with a corresponding effect on the related depreciation / amortization charge.

(d) Provision for doubtful receivables

A provision against overdue receivable balances is recognized after considering, the pattern of receipts from, and the future financial outlook of, the concerned receivable party. It is reviewed by the management on a regular basis.

(e) Provisions and contingent liabilities

The management exercises judgment in measuring and recognizing provisions and the exposures to contingent liabilities related to pending litigation or other outstanding claims. Judgement is necessary in assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of the financial settlement. Because of the inherent uncertainty in this evaluation process, actual losses may be different from the originally estimated provision.

5. Summary of significant accounting policies The significant accounting policies adopted in the preparation of these

consolidated financial statements are set out below. These policies have been consistently applied to all the years for which financial information is presented in these consolidated financial statements, unless otherwise stated.

5.1 Consolidationa) Subsidiary Subsidiaries are entities over which the Group has the power to govern the

financial and operating policies generally accompanying a shareholding of



more than one half of the voting rights. The consolidated financial statements include Pakistan Telecommunication Company Limited and all companies in which it directly or indirectly controls, beneficially owns or holds more than 50% of the voting securities or otherwise has power to elect and appoint more than 50% of its directors. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date control ceases to exist.

The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value and amount of any non controlling interest in the acquiree. For each business combination, the acquirer measures the non controlling interest in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition costs incurred are expensed. If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value as at the acquisition date through profit and loss. Any contingent consideration to be transferred by the acquirer is recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration, which is deemed to be an asset or liability, will be recognized in accordance with IAS 39, either in profit or loss or charged to other comprehensive income. If the contingent consideration is classified as equity, it is remeasured until it is finally settled within equity.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value at the acquisition date, irrespective of the extent of any non controlling interest. The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in income.

Inter-company transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses on assets transferred are also eliminated and considered an impairment indicator of such assets. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

b) Associates Associates are all entities over which the Group has significant influence,

but not control, and generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, and are initially recognized at cost. The Group’s investment in associates includes goodwill identified on acquisition, net of any accumulated impairment loss.

The Group’s share of its associates’ post-acquisition profits or losses is recognized in the statement of comprehensive income, and its unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealized losses on the assets transferred are also eliminated to the extent of the Group’s interest and considered an impairment indicator of such assets. Accounting policies of the associates have been changed where necessary to ensure consistency with the policies adopted by the Group.

Dilution gains and losses arising in investments in associates are recognized in the statement of comprehensive income.

5.2 Functional and presentation currency Items included in the consolidated financial statements of the Group are measured

and presented using the currency of the primary economic environment in which the Group operates (the functional currency), which is the Pakistan Rupee (Rs).

5.3 Foreign currency transactions and translations Foreign currency transactions are translated into the functional currency, using

the exchange rates prevailing on the date of the transaction. Monetary assets and liabilities, denominated in foreign currencies, are translated into the functional currency using the exchange rate prevailing on the date of the consolidated statement of financial position. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation of monetary items at year-end exchange rates, are charged to income for the year.

5.4 Insurance reserve The assets of the holding Company are self insured, as the holding Company has

created an insurance reserve for this purpose. Appropriations out of profits to this reserve, are made at the discretion of the Board of Directors. The reserve may be utilized to meet any losses of the holding Company assets resulting from theft, fire, natural or other disasters.

5.5 Government grants Government grants are recognized at their fair values, as deferred income, when

there is reasonable assurance that the grants will be received and the Group will comply with the conditions associated with the grants.


Grants that compensate the Group for expenses incurred, are recognized on a systematic basis in the income for the year in which the related expenses are recognized. Grants that compensate the Group for the cost of an asset are recognized in income on a systematic basis over the expected useful life of the related asset.

5.6 Borrowings and borrowing costs Borrowings are recognized equivalent to the value of the proceeds received by

the Group. Any difference, between the proceeds (net of transaction costs) and the redemption value, is recognized in income, over the period of the borrowings, using the effective interest method.

Borrowing costs, which are directly attributable to the acquisition and construction of a qualifying asset, are capitalized as part of the cost of that asset. All other borrowing costs are charged to income for the year.

5.7 Trade and other payables Liabilities for creditors and other amounts payable are carried at cost, which is

the fair value of the consideration to be paid in the future for the goods and / or services received, whether or not billed to the Group.

5.8 Provisions Provisions are recognized when the Group has a present legal or constructive

obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount can be made. Provisions are reviewed at each consolidated statement of financial position date and are adjusted to reflect the current best estimate.

5.9 Contingent liabilities A contingent liability is disclosed when the Group has a possible obligation

as a result of past events, the existence of which will be confirmed only by the occurrence or non-occurrence, of one or more uncertain future events, not wholly within the control of the Group; or when the Group has a present legal or constructive 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.

5.10 Dividend distribution The distribution of the final dividend, to the Group’s shareholders, is recognized

as a liability in the consolidated financial statements in the period in which the dividend is approved by the Group’s shareholders; the distribution of the interim

dividend is recognized in the period in which it is declared by the Board of Directors.

5.11 Fixed assets(a) Property, plant and equipment

Property, plant and equipment, except freehold land, is stated at cost less accumulated depreciation and any identified impairment losses; freehold land is stated at cost less identified impairment losses, if any. Cost includes expenditure, related overheads, mark-up and borrowing costs referred to in note 5.6 that are directly attributable to the acquisition of the asset.

Subsequent costs, if reliably measurable, are included in the asset’s carrying amount, or recognized as a separate asset as appropriate, only when it is probable that future economic benefits associated with the cost will flow to the Group. The carrying amount of any replaced parts as well as other repair and maintenance costs, are charged to income during the period in which they are incurred.

Depreciation on assets is calculated, using the straight-line method, to allocate their cost over their estimated useful lives, at the rates mentioned in note 17.1.

Depreciation on additions to property, plant and equipment, is charged from the month in which the relevant asset is acquired or capitalized, while no depreciation is charged for the month in which the asset is disposed off. Impairment loss, if any, or its reversal, is also charged to income for the year. Where an impairment loss is recognized, the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less its residual value, over its estimated useful life.

The gain or loss on disposal of an asset, calculated as the difference between the sale proceeds and the carrying amount of the asset, is recognized in income for the year.

Assets subject to finance lease are stated at the lower of present value of minimum lease payments at inception of the lease period and their fair value less accumulated impairment losses and accumulated depreciation at the annual rates specified in note 17.1. The outstanding obligation under finance lease less finance charges allocated to future periods is shown as liability. Finance charges are calculated at interest rates implicit in the lease and are charged to statement of comprehensive income in the year in which these are incurred.



(b) Intangible assets

(i) Goodwill

Goodwill is initially measured at cost being the excess of the consideration transferred, over the fair value of subsidiary’s identifiable assets acquired and liabilities assumed.

After initial recognition, goodwill is measured at cost, less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed off, the goodwill associated with the operation disposed off is included in the carrying amount of the operation, when determining the gain or loss on disposal of the operation. Goodwill disposed off, in this circumstance, is measured based on the relative values of the operation disposed off and the portion of the cash-generating unit retained.

(ii) Licenses

These are carried at cost less accumulated amortization, and any identified impairment losses. Amortization is calculated, using the straight line method, to allocate the cost of the license over its estimated useful life specified in note 18 and is charged to income for the year.

The amortization on licenses acquired during the year, is charged from the month in which a license is acquired / capitalized, while no amortization is charged in the month of expiry / disposal of the license.

(iii) Computer software

These are carried at cost less accumulated amortization, and any identified impairment losses. Amortization is calculated, using the straight line method, to allocate the cost of the software over its estimated useful life, at the rate specified in note 18, and is charged to income for the year. Costs associated with maintaining computer software, are recognized as an expense as and when incurred.

Amortization on additions to computer software, is charged from the month in which the software is acquired or capitalized, while no amortization is charged for the month in which the software is disposed off.

5.12 Impairment of non-financial assets Assets that have an indefinite useful life, for example freehold-land, are not

subject to depreciation and are tested annually for impairment. Assets that are subject to depreciation are reviewed for impairment on the date of consolidated statement of financial position, or whenever events or changes in circumstances indicate, that the carrying amount may not be recoverable. An impairment loss is recognized, equal to the amount by which the assets’ carrying amount exceeds its recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and value-in-use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows. Non-financial assets that suffered an impairment, are reviewed for possible reversal of the impairment at each consolidated statement of financial position date. Reversals of the impairment loss are restricted to the original cost of the asset. An impairment loss, or the reversal of an impairment loss, are both recognized in the income for the year.

5.13 Stores, spares and loose tools

These are stated at the lower of cost and net realizable value. Cost is determined using the moving average method. Items in transit are valued at cost, comprising invoice values and other related charges incurred up to the date of the consolidated statement of financial position.

5.14 Stock-in-trade

Stock-in-trade is valued at the lower of cost and net realizable value. Cost comprises the purchase price of items of stock, including import duties, purchase taxes and other related costs. Cost is determined on a weighted average basis. Net realisable value is the estimated selling price in the ordinary course of business less estimated cost necessary to make the sale.

5.15 Trade debts

Trade debts are carried at their original invoice amounts, less any estimates made for doubtful debts based on a review of all outstanding amounts at the year end. Bad debts are written off when identified.

5.16 Financial instruments

Financial assets and liabilities are recognized when the Group becomes a party to the contractual provisions of the instrument and de-recognized when the Group loses control of the contractual rights that comprise the financial assets and in case of financial liabilities when the obligation specified in the contract is discharged, cancelled or expires. All financial assets and liabilities are initially recognized at fair value plus transaction costs other than financial assets and



liabilities carried at fair value through profit or loss. Financial assets and liabilities carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are charged to income for the year. These are subsequently measured at fair value, amortized cost or cost, as the case may be. Any gain or loss on derecognition of financial assets and financial liabilities is included in income for the year.

(a) Financial assets

Classification and subsequent measurement

The Group classifies its financial assets in the following categories: investments at fair value through profit or loss, held-to-maturity investments, loans and receivables and available for sale financial assets. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. Regular purchases and sales of financial assets are recognized on the trade date - the date on which the Group commits to purchase or sell the asset.

(i) Fair value through profit or loss

Financial assets at fair value through profit or loss, include financial assets held for trading and financial assets, designated upon initial recognition, at fair value through profit or loss.

Financial assets at fair value through profit or loss are carried in the consolidated statement of financial position at their fair value, with changes therein recognized in the income for the year. Assets in this category are classified as current assets.

(ii) Held-to-maturity

Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as held-to-maturity when the Group has the positive intention and ability to hold these assets to maturity. After initial measurement, held-to-maturity investments are measured at amortized cost using the effective interest method, less impairment.

(iii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments, that are not quoted in an active market. After initial measurement, these financial assets are measured at amortized cost, using the effective interest rate method, less impairment.

The Group’s loans and receivables comprise ‘Trade debts’, ‘Loans and advances’, ‘Deposits and prepayments’, ‘Accrued interest’, ‘Long term loans’, ‘Receivable from Government of Pakistan’, ‘Other receivables’ and ‘Cash and bank balances’.

(iv) Available-for-sale

Available-for-sale financial assets are non-derivatives, that are either designated in this category, or not classified in any of the other categories. These are included in non-current assets, unless management intends to dispose them off within twelve months of the date of the consolidated statement of financial position.

After initial measurement, available-for-sale financial investments are measured at fair value, with unrealized gains or losses recognized as other comprehensive income, until the investment is derecognized, at which time the cumulative gain or loss is recognized in income for the year.

Impairment

The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

(b) Financial Liabilities

Initial recognition and measurement

The Group classifies its financial liabilities in the following categories: at fair value through profit or loss and other financial liabilities. The Group determines the classification of its financial liabilities at initial recognition.

All financial liabilities are recognized initially at fair value and, in the case of other financial liabilities, also include directly attributable transaction costs.

Subsequent measurement

The measurement of financial liabilities depends on their classification as follows:

(i) Fair value through profit or loss

Financial liabilities at fair value through profit or loss, include financial



liabilities held-for-trading and financial liabilities designated upon initial recognition as being at fair value through profit or loss. The Group has not designated any financial liabilities upon initial recognition as being at fair value through profit or loss.

(ii) Other financial liabilities

After initial recognition, other financial liabilities which are interest bearing subsequently measured at amortized cost, using the effective interest rate method.

(c) Offsetting of financial assets and liabilities

Financial assets and liabilities are offset and the net amount is reported in the consolidated statement of financial position, if the Group has a legally enforceable right to set-off the recognized amounts, and the Group either intends to settle on a net basis, or realize the asset and settle the liability simultaneously.

5.17 Cash and cash equivalents Cash and cash equivalents are carried at cost. For the purpose of the consolidated

statement of cash flows, cash and cash equivalents comprise cash in hand and short-term highly liquid investments with original maturities of three months or less, and that are readily convertible to known amounts of cash, and subject to an insignificant risk of changes in value.

5.18 Revenue recognition Revenue comprises of the fair value of the consideration received or receivable,

for the provision of telecommunication, broadband and related services in the ordinary course of the Group’s activities and is recognized net of services tax, rebates and discounts.

The Group principally obtains revenue from providing telecommunication services such as wire line and wireless services, interconnect, data services, equipment sales and cellular operations. Equipment and services may be sold separately or in bundled packages.

Revenue is recognized, when it is probable that the economic benefits associated with the transaction will flow to the Group, and the amount of revenue, and the associated cost incurred or to be incurred, can be measured reliably, and when specific criteria have been met for each of the Group’s activities as described below:

(i) Rendering of telecommunication services

Revenue from telecommunication services comprises of amounts charged to

customers in respect of wire line and wireless services, equipment sales and interconnect, including data services. Revenue also includes the net income received and receivable from revenue sharing arrangements entered into with overseas and local telecommunication operators.

Revenue from telecommunication services is recognized on an accrual basis, as the related services are rendered.

Prepaid cards and electronic recharges allow the forward purchase of a specified amount of airtime by customers; revenue therefrom is recognized as the airtime is utilized. Unutilized airtime is carried in the consolidated statement of financial position as unearned income.

(a) Wireline and wireless services

Revenue from wire line business, mainly in respect of line rent, line usage and broadband, is invoiced and recorded as part of a periodic billing cycle.

Revenue from wireless business is recognized on the basis of consumption of prepaid cards which allow the forward purchase of a specified amount of airtime by customers; revenue is recognized as the airtime is utilized. Unutilized airtime is carried as deferred revenue.

(b) Data services

Revenue from data services is recognized when the services are rendered.

(c) Interconnect

Revenue from interconnect is recognized when the services are rendered.

(d) Equipment sales

Revenue from sales of equipment is recognized when the equipment is delivered to the end customer and the sale is considered complete. For equipment sales made to intermediaries, revenue is recognized if the significant risks associated with the equipment are transferred to the intermediary and the intermediary has no right of return. If the significant risks are not transferred, revenue recognition is deferred until sale of the equipment to the end customer by the intermediary or the expiry of the right of return.

(ii) Income on bank deposits

Return on bank deposits and investments is recognised using the effective interest method.



(iii) Dividend income

Dividend income is recognised when the right to receive payment is established.

5.19 Operating lease Leases in which a significant portion of the risks and rewards of ownership are

retained by the lessor are classified as operating leases. Payments made under operating leases are charged to statement of comprehensive income on a straight line basis over the period of the lease.

5.20 Taxation The tax expense for the year comprises of current and deferred income tax, and

is recognized in income for the year, except to the extent that it relates to items recognized directly in other comprehensive income, in which case the related tax is also recognized in other comprehensive income.

(a) Current

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the date of the consolidated statement of financial position. Management periodically evaluates positions taken in tax returns, with respect to situations in which applicable tax regulation is subject to interpretation, and establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.

(b) Deferred

Deferred income tax is accounted for using the balance sheet liability method, in respect of all temporary differences arising between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred income tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which the deductible temporary differences, unused tax losses and tax credits can be utilized.

Deferred income tax is calculated at the rates that are expected to apply to the period when the differences reverse, and the tax rates that have been enacted, or substantively enacted, by the date of the consolidated statement of financial position.

5.21 Employees’ retirement benefits

The Group operates various retirement / post retirement benefit schemes. The

plans are generally funded through payments determined by periodic actuarial calculations or up to the limits allowed in the Income Tax Ordinance, 2001. The Company has constituted both defined contribution and defined benefit plans.

The main features of the schemes operated by the Group in PTCL and its subsidiary - PTML are as follows:

PTCL(a) Defined contribution plan

The Company operates an approved funded provident plan covering its permanent employees. For the purposes of the plan, a separate trust, the “PTCL Employees’ GPF Trust” (the Trust), has been established. Monthly contributions are deducted from the salaries of employees and are paid to the Trust by the Company. Interest is paid at the rate announced by the Federal Government, and this rate for the year was 14% (2010: 14%) per annum. The Company contributes to the fund, the differential, if any, of the interest paid / credited for the year and the income earned on the investments made by the Trust.

(b) Defined benefit plans

(i) Pension plans

The Company operates an approved funded pension plan through a separate trust, the “Pakistan Telecommunication Employees’ Trust” (PTET), for its employees recruited prior to January 01, 1996 when the Company took over the business from PTC. The Company also operates an unfunded pension scheme for employees recruited on a regular basis, on or after January 01, 1996.

(ii) Gratuity plan

The Company operates an unfunded and unapproved gratuity plan for its New Terms and Conditions (NTC) employees and contractual employees.

(iii) Medical benefits plan

The Company provides a post-retirement medical facility to pensioners and their families. Under this unfunded plan, all ex-employees, their spouses, their children up to the age of 21 years (except unmarried daughters who are not subject to the 21 years age limit) and their parents residing with them and any other dependents, are entitled to avail the benefits provided under the scheme. The facility remains valid



during the lives of the pensioner and their spouse. Under this facility there are no annual limits to the cost of drugs, hospitalized treatment and consultation fees.

(iv) Accumulating compensated absences

The Company provides a facility to its employees for accumulating their annual earned leaves. Under this plan, regular employees are entitled to four days of earned leaves per month. Unutilized leave balances can be accumulated without limit and can be used at any time, subject to the Company’s approval, upto: (i) 120 days in a year without providing a medical certificate and (ii) 180 days with a medical certificate, but not exceeding 365 days during the entire service of the employee. Up to 180 days of accumulated leave can be encashed on retirement, provided the employee has a minimum leave balance of 365 days. Leaves are encashed at the rate of the latest emoluments applicable to employees, for calculating their monthly pension.

New Compensation Pay Grade (NCPG) employees are entitled to 20 leaves after completion of one year of service. Leaves can be accumulated after completion of the second year of service, upto a maximum of 28 days.

NTC / contractual employees are entitled to three days of earned leaves per month. Unutilized leave balances can be accumulated without limit. Up to 180 days of accumulated leaves can be encashed at the end of the employees’ service, based on the latest drawn gross salary.

The liability recognized in the consolidated statement of financial position in respect of defined benefit plans, is the present value of the defined benefit obligations at the date of the consolidated statement of financial position less the fair value of plan assets, if any, together with adjustments for unrecognized actuarial gains / losses, if any.

The defined benefit obligations are calculated annually, by an independent actuary using the projected unit credit method. The most recent valuations were carried out as at June 30, 2011. The present value of a defined benefit obligation is determined, by discounting the estimated future cash outflows, using the interest rates of high-quality corporate bonds that are nominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related liability. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions, in excess of the ‘corridor’ (10% of the higher of the fair value of the plan assets or the

present value of the defined benefit obligation) at the beginning of the current reporting year, are recognized in the statement of comprehensive income, over the expected average remaining working lives of employees participating in the defined benefit plan. Actuarial gains and losses arising on compensated absences are recognized immediately.

PTML(a) Defined contribution plan

The Company operates an approved contributory provident fund for all its permanent employees, and for which, contributions are charged to income for the year.

(b) Defined benefit plans

The Company operates the following defined benefit plans:

(i) Gratuity plan

The Company operates a funded gratuity plan for all permanent employees. Annual contributions to the gratuity fund are based on actuarial valuations by independent actuary. The defined benefit obligations is calculated annually using the projected unit credit method. The present value of defined benefit obligations is determined by discounting the estimated future cash outflows using interest rates of government bonds that are denominated in Pakistan rupee and have terms to maturity approximating to the terms of the related liability.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions in excess of the corridor limit as defined in IAS 19 are charged or credited in statement of comprehensive income over the expected remaining service life of employees.

(ii) Accumulating compensated absences

The Company provides a facility to its employees for accumulating their annual earned leaves. The liability is provided for on the basis of an actuarial valuation, carried out by independent actuary, using the projected unit credit method. The actuarial gains and losses are recognised in the statement of comprehensive income.

5.22 Operating segments

Operating segments are reported in a manner consistent with the internal reporting of the Group in note 47 to the consolidated financial statements.




6. Share capital 6.1 Authorized share capital

2011 2010 2011 2010 (Number of shares ‘000) Rs ‘000 Rs ‘000

11,100,000 11,100,000 “A” class ordinary shares of Rs 10 each 111,000,000 111,000,000

3,900,000 3,900,000 “B” class ordinary shares of Rs 10 each 39,000,000 39,000,000

15,000,000 15,000,000 150,000,000 150,000,000

6.2 Issued, subscribed and paid up capital

2011 2010 2011 2010 (Number of shares ‘000) Rs ‘000 Rs ‘000

3,774,000 3,774,000 “A” class ordinary shares of Rs 10 each 37,740,000 37,740,000 issued as fully paid for consideration other

than cash - note 6.3 and note 6.5.

1,326,000 1,326,000 “B” class ordinary shares of Rs 10 each 13,260,000 13,260,000 issued as fully paid for consideration other than cash - note 6.3 and note 6.6.

5,100,000 5,100,000 51,000,000 51,000,000

6.3 These shares were initially issued to the Government of Pakistan, in consideration for the assets and liabilities transferred from Pakistan Telecommunication Corporation (PTC) to the holding Company, under the Pakistan Telecommunication (Re-organization) Act, 1996, as referred to in note 1.1.

6.4 Except for voting rights, the “A” and “B” class ordinary shares rank pari passu in all respects. “A” class ordinary shares carry one vote and “B” class ordinary shares carry four votes, save for the purposes of election of directors. “A” class ordinary shares cannot be converted into “B” class ordinary shares; however, “B” class ordinary shares may be converted into “A” class ordinary shares, at the option, exercisable in writing and submitted to the Company, by the holders of three fourths of the “B” class ordinary shares. In the event of termination of the license issued to the holding Company, under the provisions of Pakistan Telecommunication (Re-organization) Act, 1996, the “B” class ordinary shares shall be automatically converted into “A” class ordinary shares.

6.5 The Government of Pakistan, through an “Offer for Sale” document, dated July 30, 1994, issued to its domestic investors, a first tranche of vouchers exchangeable for “A” class ordinary shares of the holding Company; subsequently, through an Information Memorandum dated September 16, 1994, a second tranche of vouchers was issued to international investors, also exchangeable, at the option of the voucher holders, for “A” class ordinary shares or Global Depository Receipts (GDRs) representing “A” class ordinary shares of the holding Company. Out of 3,774,000 thousand “A” class ordinary shares, vouchers against 601,084 thousand “A” class ordinary shares were issued to the general public. Till June 30, 2011, 599,514 thousand (2010: 599,506 thousand) “A” class ordinary shares had been exchanged for such vouchers.



6.6 In pursuance of the privatization of the holding Company, a bid was held by the Government of Pakistan on June 08, 2005 for sale of “B” class Ordinary shares of Rs 10 each, conferring management control. Emirates Telecommunication Corporation, UAE (Etisalat) was the successful bidder. The 26% (1,326,000,000 shares) “B” class ordinary shares, along with management control, were transferred, with effect from April 12, 2006, to Etisalat International Pakistan (EIP), UAE which is a subsidiary of Etisalat.

2011 2010 Note Rs ‘000 Rs ‘000

7. Long-term loans from banks

Secured

From banks 7.1 9,000,000 4,000,000 From consortia of banks 7.2 11,000,000 9,000,000

20,000,000 13,000,000 Current portion shown under current liabilities (9,000,000) -

11,000,000 13,000,000

7.1 From banks

Mark-up payment Due date of first 2011 2010 Name of banks Mark-up rate* arrangement Repayment method installment of principal Rs ‘000 Rs ‘000

Bank Al Habib Limited 3 months Quarterly payments Eight equal KIBOR + 1.80% commencing from June 2010 quarterly installments June 2013 1,000,000 1,000,000

MCB Bank Limited 3 months Quarterly payments Eight equal KIBOR + 1.70% commencing from March 2011 quarterly installments March 2014 3,000,000 –

Faysal Bank Limited 3 months Quarterly payments Eight equal KIBOR + 1.80% commencing from June 2010 quarterly installments June 2013 2,000,000 2,000,000

NIB Bank Limited 3 months Quarterly payments Eight equal KIBOR + 1.75% commencing from June 2010 quarterly installments June 2013 1,000,000 1,000,000

Summit Bank (formerly Arif Habib Bank) 3 months Quarterly payments Eight equal KIBOR + 1.80% commencing from September 2010 quarterly installments September 2013 1,000,000 –

Meezan Bank Limited 3 months Quarterly payments Eight equal KIBOR + 1.65% commencing from December 2010 quarterly installments December 2013 1,000,000 –

9,000,000 4,000,000

*The mark-up rate applicable to the above loans is the rate prevailing on the last business day prior to disbursement, and thereafter, prior to each quarter.

7.1.1 All the above referred loans are secured by way of a first charge, ranking pari passu, by way of hypothecation, over all present and future moveable equipment and other assets (excluding land, building and license), of PTML.


2011 2010 Note Rs ‘000 Rs ‘000

7.2 From consortia of banks Syndicated term financing - 1 7.2.1 4,500,000 4,500,000 Syndicated term financing - 2 7.2.2 4,500,000 4,500,000 Syndicated term financing - 3 7.2.3 2,000,000 –

11,000,000 9,000,000

7.2.1 This represents a term finance loan obtained by PTML from a syndicate of commercial banks. The loan is secured by a first charge ranking pari passu, by way of hypothecation, over all present and future assets (excluding

land and building) of PTML. The loan is repayable in July 2011.

The loan carries mark-up at the rate of 0.69 % over a simple average of 3 months KIBOR (2010: 0.69 % over a simple average of 3 months KIBOR), prevailing on the last five working days prior to the date of first disbursement, and thereafter, prior to the beginning of each quarterly period for the mark-up payment due at the end of that period.

7.2.2 This represents a term finance loan obtained by PTML from a syndicate of commercial banks. The loan is secured by a first charge ranking pari passu, by way of hypothecation, over all present and future assets (excluding

land and building), of PTML. The loan is repayable in July 2011.

The loan carries mark-up at the rate of 0.69 % over 3 months KIBOR (2010: 0.69 % over 3 months KIBOR), prevailing on the last working day prior to the date of first disbursement, and thereafter prior to the beginning of each quarterly period for the mark-up payment due at the end of that period.

7.2.3 This represents a term finance loan obtained by PTML from a syndicate of commercial banks. Rs 2,000 million were drawn upto June 30, 2011 out of total facility of Rs 4,000 million.

The loan is secured by a first charge ranking pari passu, by way of hypothecation, over all moveable fixed assets of PTML. The loan is repayable in eight equal quarterly installments starting June 2014.

The loan carries mark-up at the rate of 1.35 % over 3 months KIBOR (2010: 1.35 % over 3 months KIBOR), prevailing on the last working day prior to the date of first disbursement, and thereafter prior to each installment repayment date.



8. Liability against assets subject The minimum lease rental payments due under the lease agreements are payable in monthly installments up to December to finance lease 2017. These have been discounted at the annual applicable implicit rate of interest. The amount of future lease payments and

the period in which these will become due are as follows: 2011 2010 Note Rs ‘000 Rs ‘000

Gross obligation under finance lease Minimum lease payments due Not later than 1 year 36,630 – Later than 1 year and not later than 5 years 146,150 – Later than 5 years 52,674 –

235,454 – Finance charges allocated to future periods (119,940) –

Net obligation under finance lease 8.1 115,514 – Current portion shown under current liabilities (32,075) –

83,439 –

8.1 The present value of finance lease liabilities is as follows: Not later than 1 year 32,075 – Later than 1 year and not later than 5 years 71,093 – Later than 5 years 12,346 –

115,514 –

9. Payable to PTA against license fee PTCL 9.1 – 1,894,950 PTML 9.2 181,230 210,021 MAXCOM – 164

181,230 2,105,135 Current portion shown under current liabilities (42,984) (1,935,288)

138,246 169,847



2011 2010 Note Rs ‘000 Rs ‘000

9.1 Payable to PTA against WLL license fee - the holding Company Payable to PTA against WLL license fee 1,894,950 2,105,500 Present value adjustment (631,756) (631,756)

Present value of license fee payable 1,263,194 1,473,744 Imputed interest charged to date 631,756 631,756

1,894,950 2,105,500 Payment made during the year (1,894,950) (210,550)

– 1,894,950 Current portion shown under current liabilities – (1,894,950)

– –

9.2 Payable to PTA against license fee - PTML Payable to PTA against license fee 9.2.1 255,900 285,075 Imputed interest charged (33,520) (45,879)

Present value of license fee payable 222,380 239,196 Payment made during the year (41,150) (29,175)

181,230 210,021 Current portion shown under current liabilities (42,984) (40,174)

138,246 169,847

9.2.1 This represents a license fee, of USD 5,000 thousand, in respect of the PTML’s operations in AJK, payable to PTA in ten equal annual installments without any interest commencing June 2007 to 2016, in USD or equivalent Pak Rupees. Accordingly, at initial recognition, the aggregate amount payable was discounted to the present value of future cash flows at the rate of 6% per annum.

10. Long-term security deposits These represent non-interest bearing security deposits received from distributors, franchisees and customers that are refundable on termination of the relationship with the Group. PTCL has paid / adjusted a sum of Rs 79,187 thousand (2010: Rs 222,751 thousand) during the current year against balances of customers.



2011 2010 Note Rs ‘000 Rs ‘000

11. Deferred taxation The liability for deferred taxation comprises of timing differences relating to:

Accelerated tax depreciation / amortization 22,371,425 21,482,320 Provision for doubtful trade debts / stocks (5,455,302) (6,790,902) Provision for doubtful advances and receivables (114,158) (146,734) Unused tax losses (1,576,553) (3,909,262) Leased assets 7,623 – Others 265,378 (1,771)

15,498,413 10,633,651 The gross movement in the deferred tax liability during the year is as follows:

Balance as at July 01 10,633,651 7,205,377 Charge for the year 4,864,762 3,437,465 Deferred taxation as at March 01, 2010 of MAXCOM – (9,191)

15,498,413 10,633,651

12. Employees’ retirement benefits Pension obligations Funded 12.1 5,618,854 5,283,449 Unfunded 12.1 1,350,323 1,086,113

6,969,177 6,369,562

Gratuity Funded 12.1 80,071 71,314 Unfunded 12.1 628,804 498,256

708,875 569,570

Accumulating compensated absences 12.1 1,072,947 1,019,098 Post-retirement medical facility 12.1 8,267,392 7,718,647

17,018,391 15,676,877



12.1 The latest actuarial valuations of the Group’s defined benefit plans, were conducted at June 30, 2011 using the projected unit credit method. Details of obligation for defined benefit plans are as follows:

Accumu lating Pension Gratuity compensated Post-retirement Funded Unfunded Funded Unfunded absences medical facility Total 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

a) The amounts recognized in the consolidated statement of financial position: Present value of defined benefit obligations 65,980,987 62,752,225 1,313,614 1,139,102 281,750 209,446 515,026 423,702 1,072,947 1,019,098 9,326,900 7,807,167 78,491,224 73,350,740 Fair value of plan assets –note 12.3 (56,480,703) (53,521,666) – – (188,417) (115,814) – – – – – – (56,669,120) (53,637,480)

Deficit 9,500,284 9,230,559 1,313,614 1,139,102 93,333 93,632 515,026 423,702 1,072,947 1,019,098 9,326,900 7,807,167 21,822,104 19,713,260 Unrecognized actuarial (gains) / losses (3,881,430) (3,947,110) 36,709 (52,989) (13,262) (22,318) 113,778 74,554 – – (1,059,508) (88,520) (4,803,713) (4,036,383)

Liability as at June 30 5,618,854 5,283,449 1,350,323 1,086,113 80,071 71,314 628,804 498,256 1,072,947 1,019,098 8,267,392 7,718,647 17,018,391 15,676,877

b) Changes in the present value of defined benefit obligations: Balance as at July 01 62,752,225 53,610,885 1,139,102 932,231 209,446 152,555 423,702 314,871 1,019,098 1,084,390 7,807,167 6,448,686 73,350,740 62,543,618 Current service cost 515,736 542,494 132,290 137,708 68,721 62,566 109,430 103,717 54,874 60,000 101,554 64,186 982,605 970,671 Interest cost 7,530,269 6,433,306 136,692 111,868 25,133 18,307 50,844 37,785 122,292 130,127 936,860 773,842 8,802,090 7,505,235 Past service cost – 270,000 – – – – – – – – – – – 270,000 Actuarial (gains) / losses (431,751) 6,098,147 (89,698) (37,370) (2,335) 6,244 (44,588) (5,358) (76,429) (188,994) 970,988 955,960 326,187 6,828,629 Benefits paid (4,385,492) (4,202,607) (4,772) (5,335) (19,215) (30,226) (24,362) (27,313) (46,888) (66,425) (489,669) (435,507) (4,970,398) (4,767,413)

65,980,987 62,752,225 1,313,614 1,139,102 281,750 209,446 515,026 423,702 1,072,947 1,019,098 9,326,900 7,807,167 78,491,224 73,350,740

c) Charge for the year: Current service cost 515,736 542,494 132,290 137,708 68,722 62,566 109,430 103,717 54,874 60,000 101,554 64,186 982,606 970,671 Interest cost 7,530,269 6,433,306 136,692 111,868 25,133 18,307 50,844 37,785 122,292 130,127 936,860 773,842 8,802,090 7,505,235 Past service cost – 270,000 – – – – – – – – – – – 270,000 Expected return on plan assets (6,422,600) (6,512,558) – – (13,898) (9,849) – – – – – – (6,436,498) (6,522,407) Actuarial (gains) / losses – – – – 114 290 (5,364) (7,541) (76,429) (188,994) – (17,121) (81,679) (213,366) Contribution from deputationists (614) (175) – – – – – – – – – – (614) (175)

1,622,791 733,067 268,982 249,576 80,071 71,314 154,910 133,961 100,737 1,133 1,038,414 820,907 3,265,905 2,009,958

d) Significant actuarial assumptions at the date of the consolidated statement of financial position: Expected rate of return on plan assets 12% 13% 12% 10% Discount rate 14% 12% 14% 12% 14% 12% 14% 12% 14% 12% 14% 12% Future salary / medical cost increase 9% 9% 9% 9% 14% 12% 9% 9% 9-14% 9-10% 13% 11% Future pension increase 8% 8% 8% 8%

Average expected remaining working lives of members 13 years 13 years 17 years 16 years 12 years 12 years 6 years 6 years 14 years 14 years

Expected mortality rate EFU 61–66* EFU 61–66* EFU 61–66* EFU 61–66* Expected withdrawal rate Based on experience Based on experience Based on experience Based on experience

* Mortality table adjusted for Group’s experience



12.2 Historical information 2011 2010 2009 2008 2007

Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

Defined benefit pension plan - funded Present value of defined benefit obligations as at June 30 65,980,987 62,752,225 53,610,885 50,105,610 36,529,541 Fair value of plan assets as at June 30 (56,480,703) (53,521,666) (50,096,598) (48,441,436) (45,158,318)

Deficit / (surplus) in the plan 9,500,284 9,230,559 3,514,287 1,664,174 (8,628,777)

Experience adjustments on plan liabilities (gains) / losses (431,751) 6,098,147 953,077 778,679 2,581,597

Experience adjustment on plan assets - (losses) / gains (366,071) 1,115,117 (1,735,854) (522,664) 3,776,675

Defined benefit pension plan - unfunded

Present value of defined benefit obligations as at June 30 1,313,614 1,139,102 932,231 709,378 1,180,770

Experience adjustment on plan liabilities - (gains) / losses (89,698) (37,370) 83,101 1,764 (96,454)

Defined benefit gratuity plan - Funded Present value of defined benefit obligations as at June 30 281,750 209,446 152,555 106,094 71,363 Fair value plan assets at year end (188,417) (115,814) (82,072) (64,002) –

Deficit in the plan 93,333 93,632 70,483 42,092 71,363

Experience adjustment on plan liabilities - (gains) / losses (2,335) 6,244 3,196 4,645 2,326

Experience adjustment on plan assets - gains 6,607 2,659 5,930 1,464 –

Defined benefit gratuity plan - unfunded

Present value of defined benefit obligations as at June 30 515,026 423,702 314,871 251,226 111,444

Experience adjustment on plan liabilities - (gains) / losses (44,588) (5,358) (51,220) 41,126 (77,172)

Defined benefit accumulating compensated absences

Present value of defined benefit obligations as at June 30 1,072,947 1,019,098 1,084,390 880,970 1,910,834

Experience adjustment on plan liabilities - (gains) / losses (76,429) (188,994) 45,308 18,328 30,993

Defined benefit post-retirement medical facility

Present value of defined benefit obligations as at June 30 9,326,900 7,807,167 6,448,686 5,195,430 4,798,947

Experience adjustment on plan liabilities - losses / (gains) 970,988 955,960 940,121 (51,761) (274,176)



Pension funded Gratuity funded

2011 2010 2011 2010 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

12.3 Changes in the fair value of plan assets Balance as at July 01 53,521,666 50,096,598 115,814 82,072 Expected return on plan assets 6,422,600 6,512,558 13,898 9,849 Contributions during the year 1,288,000 – 71,313 51,460 Benefits paid (4,385,492) (4,202,607) (19,215) (30,226) Actuarial (losses) / gains on plan assets (366,071) 1,115,117 6,607 2,659

Balance as at June 30 56,480,703 53,521,666 188,417 115,814

Actual return on plan assets 6,056,529 7,627,675 20,505 12,507

The expected return on plan assets is based on market expectations, and depends upon the asset portfolio of funded plans, held at the beginning of the year, for returns over the entire life of the related obligations.

12.4 Major categories of plan assets as a percentage of total plan assets, are as follows: Pension funded Gratuity funded 2011 2010 2011 2010 (Percentage) (Percentage)

Special Savings Certificates 87 84 – – Pakistan Investment Bonds 1 6 – – Fixed and other assets 12 10 – – Debt instruments – – 81 83 Cash – – 19 17

Total 100 100 100 100

12.5 During the next financial year, the expected contribution to be paid to the funded pension plan and funded gratuity plan by the Group is Rs 1,883,438 thousand (2010: Rs 1,623,346 thousand) and Rs 88,820 thousand (2010: Rs 80,071 thousand) respectively.

12.6 Effect of increase / decrease in total medical cost trend rate The effect of 1% increase in the medical cost trend rate, on current service cost and interest cost, is Rs 31,033 thousand (2010:

Rs 22,523 thousand) and the effect of 1% decrease in the medical cost trend rate, on current service cost and interest cost, is Rs 26,301 thousand (2010: Rs 18,691 thousand).

The effect of 1% increase in the medical cost trend rate, on the present value of defined benefit obligations for medical cost, is Rs 2,765,426 thousand (2010: Rs 2,295,307 thousand) and the effect of 1% decrease in the medical cost trend rate, on the present value of defined benefit obligations for medical cost, is Rs 2,311,206 thousand (2010: Rs 1,904,949 thousand).



2011 2010 Note Rs ‘000 Rs ‘000

13. Deferred government grants Balance as at July 01 1,632,701 1,061,044 Received during the year 13.1 2,077,688 571,657 Amortization for the year (78,804) -

3,631,585 1,632,701

13.1 These represent grants received from the Universal Service Fund, as assistance towards the development of telecommunication infrastructure in rural areas, comprising telecom infrastructure projects for basic telecom access, transmission and broad band services spread across the country.

14. Long-term vendor liability This represents an amount payable to M/s Huawei, in respect of network equipment purchases, and comprises: 2011 2010 Note Rs ‘000 Rs ‘000

Obligation under acceptance of bills of exchange 5,798,800 12,629,543 Other accrued liabilities 622,526 3,809,895

6,421,326 16,439,438 Current portion shown under current liabilities (3,232,951) (5,980,398)

3,188,375 10,459,040

15. Trade and other payables Trade creditors 10,248,987 9,244,826 Accrued liabilities 15.2 8,540,610 6,264,269 Receipts against third party works 458,422 678,439 Income tax: Collected from subscribers 227,388 411,700 Deducted at source 383,148 302,998

610,536 714,698

Sales tax payable 778,735 1,650,608 Advances from customers 2,187,583 1,612,761 Technical services assistance fee 34.2 949,389 874,721 Retention money payable to contractors / suppliers 4,909,820 5,407,995 Payable to: Research and Development Fund 34.4 2,993,520 2,773,454 Universal Service Fund 1,874,355 3,523,508 Pakistan Telecommunication Authority 247,725 6,542 Unclaimed dividend 139,711 131,253 VSS benefits payable 45,849 55,734 Consideration payable related to acquisition of MAXCOM 35,484 67,396 Other liabilities 285,716 691,519

34,306,442 33,697,723



2011 2010 Rs ‘000 Rs ‘000

15.1 Trade and other payables include payable to the following related parties Trade creditors TF Pipes Limited 3,719 2,621 Etisalat - UAE 376,812 210,251 Etisalat - Afghanistan 12,659 – Telecom Foundation 10,118 49,365

403,308 262,237

Technical services assistance fee Etisalat - UAE 949,389 874,721

Retention money payable to contractors / suppliers Telecom Foundation 108,451 161,607

These balances relate to the normal course of business of the Group and are interest free.

15.2 These include a sum of Rs 706,618 thousand (2010: Rs 640,711 thousand), representing a provision against EOBI contributions payable, under the EOBI Act, 1976, for employees hired subsequent to the holding Company’s incorporation. The holding Company has withheld payments to EOBI, pending the settlement of the court case, as discussed in note 16.3. The provision made during the year is Rs 65,907 thousand (2010: Rs 67,556 thousand).

16. Contingencies and commitments Contingencies PTCL 16.1 A total of 1,684 cases (2010: 1,574 cases) have been filed against PTCL primarily involving subscribers and employees.

Because of the number of cases involved and their uncertain nature, it is not possible to quantify their financial impact at present. However, the management and PTCL’s legal advisors, are of the view that the outcome of these cases is expected to be favourable and a liability, if any, arising on the settlement of these cases is not likely to be material. Accordingly no provision has been made in these consolidated financial statements in this regard.

16.2 In 1995, the Government of Pakistan (GoP), in the interest of public safety, passed an order to close transmission of all messages, inter-alia, through card phone services and mobile telephone services, within and outside the city of Karachi. Telecard Limited, a pay card service provider, served a legal notice on the GoP, seeking a restoration of its services and claimed damages from the GoP, amounting to Rs 2,261,924 thousand. The GoP ordered the immediate restoration of Pay Card services, including rebate relief and discounts to all pay phone service providers. In view of the relief and discounts offered by the GoP, Telecard Limited withheld payments on account of their monthly bills to PTCL, and obtained a stay order from the Honorable Sindh High Court, for an amount of Rs 110,033 thousand against PTCL.



On the instructions of the Honorable Court, external consultants calculated the total amount of the rebate and discount, amounting to Rs 349,953 thousand, payable by PTCL to Telecard Limited for the period from January 1997 to August 2001. In the suit, final arguments of the parties are to be reheard. PTCL has also filed a counter claim against Telecard Limited for aggregate receivables, amounting to Rs 334,099 thousand, up to December 31, 2001. The management and PTCL’s legal advisors, are of the view that the outcome of the case is expected to be favourable. Pending the decision of the courts, no provision has been made in these consolidated financial statements.

In a similar case, Telefon, lodged a claim of Rs 97,337 thousand against PTCL. In the last hearing, held on May 09, 2006, issues were framed and a decision made to record evidence in subsequent hearings. The management and PTCL’s legal advisors, are of the view that the outcome of the appeal is expected to be favourable. Pending the decision of the court, no provision has been made in these consolidated financial statements.

16.3 In February 2007, The Employees’ Old age Benefits Institute (EOBI) served a demand notice on PTCL under section 12(3) of the Employees’ Old Age Benefits Act, 1976 (EOBI Act) for payment of PTCL’s and its employees’ contributions, amounting to Rs 1,496,829 thousand, for the period January 1996 to May 2005. In November 2010, EOBI served an additional demand notice for the payment of PTCL’s and its employees’ contributions, amounting to Rs 1,128,633 thousand, for the period June 2005 to October 2010, along with a statutory increase of Rs 564,316 thousand @ 2% per month. This resulted in an aggregate demand of Rs 3,189,778 thousand, for the period January 1996 to October 2010, for which a fresh demand notice was served by EOBI in January 2011. The management has filed a writ petition against this demand before the Honorable Islamabad High Court, which is pending adjudication. However, management and PTCL’s legal advisor are of the view that the case will be decided in the favour of PTCL. No provision has accordingly been made in these consolidated financial statements for employees hired prior to PTCL’s incorporation.

16.4 An assessment order was passed by the Taxation Officer, on the basis of a revised return for the tax year 2007, filed by PTCL on June 30, 2009, creating an additional demand of Rs 5,185,163 thousand, by disallowing certain expenses under section 122(5A) of the Income Tax Ordinance, 2001.

PTCL has filed an appeal against this order before the Commissioner Inland Revenue-Appeals (CIR-Appeals), who has granted relief of Rs 297,793 thousand. PTCL is in the process of filing an appeal to the ATIR against this order. No provision on this account has been made in these consolidated financial statements, as the management and the tax advisor of PTCL are of the view, that the matter will eventually be settled in favour of PTCL.

16.5 For tax year 2008, the Taxation Officer (TO) raised a demand of Rs 4,559,208 thousand, on the plea that PTCL has erroneously applied an average rate of tax, while deducting withholding tax from payments made to employees under the Voluntary Separation Scheme (VSS), as the required options before the concerned Commissioners of income tax, were not filed by such employees. The CIT-(Appeal) upheld the decision of TO and while disposing off the ensuing second appeal, the Honorable ATIR remanded the case back to the TO, for verification of filing of options before the concerned Commissioners, in the light of the related law. PTCL has also filed a reference application with the Honorable Islamabad High Court, which is pending adjudication. No provision on this account has been made in these consolidated financial statements, as the management and the tax advisor of PTCL are of the view, that the matter will eventually be settled in favour of PTCL.

16.6 For the tax year 2008, the Taxation Officer (TO) also raised a demand of Rs 4,111,590 thousand, by disallowing the commutation of Pension paid by PTCL to VSS optees, on the plea that PTCL has made this payment on behalf of the PTET, an approved Pension Fund.



The CIR (Appeals) upheld the order of the Taxation Officer, while deciding the appeal of the holding Company against order of the TO. PTCL filed an appeal before the Appellate Tribunal Inland Revenue (ATIR) against the order of CIR-Appeals which is pending for adjudication. Based on the hearing of ATIR, the management and tax advisor of PTCL are of the view, that the matter will eventually settle in the favour of PTCL. Accordingly, no provision has been accounted for in these consolidate financial statements.

16.7 During the year, the Taxation Officer has disallowed certain expenses for the tax year 2009, (under section 122(5A) of the Income Tax Ordinance, 2001), and created an additional demand of Rs 4,638,249 thousand, which was subsequently reduced to Rs 3,439,222 thousand, through rectification.

PTCL has filed an appeal against the order of the TO, before the CIR-Appeals, which is pending adjudication. No provision on this account has been made in these consolidated financial statements, as the management and the tax advisor of PTCL are of the view, that the litigation will eventually be settled in the favour of PTCL.

16.8 Based on an audit of the Federal Excise Duty (FED) returns submitted for the period from July 2004 to June 2009, the Deputy Commissioner of Inland Revenue (DCIR), raised a demand of Rs 1,018,568 thousand, on the premise that PTCL has claimed total input tax, without apportioning the same between allowable and exempt supplies, and that the exempt supplies were also not declared in these returns. PTCL is in appeal against the said order, before the CIR-Appeals and the Honorable Islamabad High Court has granted a stay order in this regard.

No provision on this account has been made in these consolidated financial statements, as the management and PTCL’s tax advisor consider, that based on the underlying legal and factual position, the litigation would eventually be settled in PTCL’s favour.

2011 2010 Rs ‘000 Rs ‘000

16.9 Bank guarantees and bid bonds issued in favour of: Universal Service Fund (USF) against government grants 3,082,697 3,087,311 Others 293,242 314,254

3,375,939 3,401,565

PTML

16.10 Letter of guarantee issued to PTA in compliance with license terms 12,293 60,600

16.11 PTML is contesting various claims made by the Income tax and Sales tax authorities before the Commissioner of Income Tax (Appeals), Income Tax Appellate Tribunal and Sales Tax Appellate Tribunal, Azad Jammu and Kashmir. These cases have either been decided in favour of PTML and now the Income tax department is in appeal before the High court or the case is pending but PTML is confident that this will result in a favourable outcome. No provision has been made theiragainst in these consolidated financial statements since the management believes that PTML has a prima facie valid claim.



2011 2010 Note Rs ‘000 Rs ‘000

16.12 Commitments - Group a) Letter of credit for purchase of stock 256,867 437,727

b) Commitments for capital expenditure

For network equipment 17,523,567 18,746,346 For others 197,987 221,093

17,721,554 18,967,439

17. Property, plant and equipment Operating fixed assets 17.1 134,582,399 133,823,255 Capital work-in-progress 17.6 21,591,349 17,959,087

156,173,748 151,782,342



17.1 Operating fixed assets Land Buildings on Computer and Leased Freehold Freehold Leasehold Lines and Apparatus, plant Office electrical Furniture and Submarine Network and - note 17.2 Leasehold land land wires and equipment equipment equipment fittings Vehicles cables allied systems Total Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

As at July 01, 2009 Cost 1,660,485 803,162 10,048,319 1,009,184 104,573,408 192,537,615 1,189,925 1,307,996 480,832 1,600,612 5,715,407 – 320,926,945 Accumulated depreciation – (264,393) (2,948,419) (376,619) (75,954,731) (104,366,396) (620,971) (742,256) (324,817) (1,210,542) (2,508,378) – (189,317,522) Net book value 1,660,485 538,769 7,099,900 632,565 28,618,677 88,171,219 568,954 565,740 156,015 390,070 3,207,029 – 131,609,423

Year ended June 30, 2010 Opening net book value 1,660,485 538,769 7,099,900 632,565 28,618,677 88,171,219 568,954 565,740 156,015 390,070 3,207,029 – 131,609,423 Assets of subsidiary acquired Cost – – – – – 64,390 2,404 4,014 3,587 – – – 74,395 Accumulated depreciation – – – – – (38,381) (607) (2,356) (1,145) – – – (42,489) – – – – – 26,009 1,797 1,658 2,442 – – – 31,906 Additions 683 124,495 175,010 – 1,859,648 27,410,469 73,848 980,755 10,127 57,986 24,548 – 30,717,569 Disposals Cost – (18,587) (502) – (144,353) (15,930,696) (11,924) (144,628) (7,546) (62,174) – – (16,320,410) Accumulated depreciation – 5,713 328 – 144,353 8,647,595 11,503 76,609 7,485 53,431 – – 8,947,017 – (12,874) (174) – – (7,283,101) (421) (68,019) (61) (8,743) – – (7,373,393) Depreciation charge for the year (151,890) (251,659) (25,225) (4,355,835) (15,256,596) (123,050) (441,499) (27,312) (146,638) (382,546) – (21,162,250) Net book value 1,661,168 498,500 7,023,077 607,340 26,122,490 93,068,000 521,128 1,038,635 141,211 292,675 2,849,031 – 133,823,255

As at July 01, 2010 Cost 1,661,168 909,070 10,222,827 1,009,184 106,288,703 204,081,778 1,254,253 2,148,137 487,000 1,596,424 5,739,955 – 335,398,499 Accumulated depreciation – (410,570) (3,199,750) (401,844) (80,166,213) (111,013,778) (733,125) (1,109,502) (345,789) (1,303,749) (2,890,924) – (201,575,244) Net book value 1,661,168 498,500 7,023,077 607,340 26,122,490 93,068,000 521,128 1,038,635 141,211 292,675 2,849,031 – 133,823,255

Year ended June 30, 2011 Opening net book value 1,661,168 498,500 7,023,077 607,340 26,122,490 93,068,000 521,128 1,038,635 141,211 292,675 2,849,031 – 133,823,255 Additions 233 66,978 339,793 – 1,878,997 14,354,411 12,793 1,145,205 6,943 194,142 4,087,738 157,637 22,244,870 Disposals Cost (900) (33,788) (620) – (18,791) (209,051) (2,524) (11,724) (3,383) (53,398) – – (334,179) Accumulated depreciation – 20,457 252 – 18,791 148,098 2,524 11,110 2,855 52,480 – – 256,567 (900) (13,331) (368) – – (60,953) – (614) (528) (918) – – (77,612) Depreciation charge for the year – (155,357) (261,294) (25,213) (4,177,150) (15,143,817) (66,055) (947,500) (23,490) (159,791) (428,104) (20,343) (21,408,114) Net book value 1,660,501 396,790 7,101,208 582,127 23,824,337 92,217,641 467,866 1,235,726 124,136 326,108 6,508,665 137,294 134,582,399

As at June 30, 2011 Cost 1,660,501 942,260 10,562,000 1,009,184 108,148,909 218,227,138 1,264,522 3,281,618 490,560 1,737,168 9,827,693 157,637 357,309,190 Accumulated depreciation – (545,470) (3,460,792) (427,057) (84,324,572) (126,009,497) (796,656) (2,045,892) (366,424) (1,411,060) (3,319,028) (20,343) (222,726,791) Net book value 1,660,501 396,790 7,101,208 582,127 23,824,337 92,217,641 467,866 1,235,726 124,136 326,108 6,508,665 137,294 134,582,399

Annual rate of depreciation (%) 1 to 20 2.5 2.5 7 10 to 33 10 33.33 10 20 6.67 to 8.33 13.33



17.2 As explained in note 1, the property and rights vesting in the operating assets, as at January 01, 1996, were transferred to PTCL from Pakistan Telecommunication Corporation, under the Pakistan Telecommunication (Re-organization) Act, 1996. However, the title to freehold land, was not formally transferred in the name of PTCL in the land revenue records. PTCL initiated the process of transfer of title to freehold land, in its own name, in previous years, which is still ongoing and shall be completed in due course of time.

17.3 During the current year, PTCL revised its estimate of the useful life of computer equipment, from 10 years to 3 years. Had the change in estimate not been made, the depreciation charge for the year would have been lower by Rs 146,450 thousand, whereas the profit before tax for the year would have been higher by the same sum.

17.4 Disposal of property, plant and equipment: The details of the disposals of property, plant and equipment, are as follows:

Accumulated Net Book Sale Mode of Particulars of Cost depreciation value proceeds disposal purchaser

Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

Freehold land 900 – 900 900 Sale Mrs Irshad Begum, Gujarawala

Leasehold 4,768 3,399 1,369 185 Auction Iftikhar-ud-Din, Karachi improvements 16,030 8,634 7,396 – Scrap M.Iftikhar Chaudhary, Lahore

Buildings

IT Building HQ 415 145 270 59 Auction Mr. Hakam Taj, Islamabad

Telephone exchange building 205 107 98 396 Auction Mr. M Sharif, Sukkur

Network and allied systems 282 50 232 232 Insurance claim EFU General Insurance Co, Karachi

13,887 12,829 1,058 1,527 Auction Inam Ur Rehman & Co, Karachi

79,087 24,215 54,872 54,872 Insurance claim EFU General Insurance Co, Karachi

Motor vehicles 1,162 852 310 310 Insurance claim EFU General Insurance Co, Karachi

Computer and accessories 469 63 406 406 Insurance claim EFU General Insurance Co. Karachi

Aggregate of others having net book values not exceeding Rs 50,000 216,974 206,273 10,701 186,426

334,179 256,567 77,612 245,313



2011 2010 Note Rs ‘000 Rs ‘000

17.5 The depreciation charge for the year has been allocated as follows:

Cost of services 33 20,221,074 20,279,048 Administrative and general expenses 34 1,128,848 822,126 Selling and marketing expenses 35 58,192 61,076

21,408,114 21,162,250

17.6 Capital work-in-progress Buildings 990,060 471,303 Lines and wires 5,356,202 5,918,700 Apparatus, plant and equipment 10,543,252 8,253,267 Advances to suppliers 17.8 4,070,209 2,826,450 Others 631,626 489,367

21,591,349 17,959,087

17.7 Movement during the year Balance as at July 01 17,959,087 13,297,795 Additions during the year 26,290,555 35,773,723 Transfers during the year (22,658,293) (31,114,404) CWIP of subsidiary acquired – 1,973

Balance as at June 30 21,591,349 17,959,087

Capital work-in-progress includes an amount of Rs 322,580 thousand (2010: Rs 337,985 thousand) in respect of direct overheads relating to development of assets.



17.8 This includes an advance of Rs 49,696 thousand (2010: Rs 61,659 thousand) given to Telecom Foundation, a related party. 2011 2010 Note Rs ‘000 Rs ‘000

18. Intangible assets Goodwill 26,424 26,424 Less: Written off on voluntary winding up of MAXCOM (26,424) – – 26,424

Other intangible assets 18.1 3,906,996 3,991,051

3,906,996 4,017,475

Frequency Licenses Software vacation charges Total Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

18.1 Other intangible assets As at July 01, 2009 Cost 4,588,988 810,350 342,000 5,741,338 Accumulated amortization (1,202,061) (141,834) (231,800) (1,575,695) Net book value 3,386,927 668,516 110,200 4,165,643

Year ended June 30, 2010 Opening net book value 3,386,927 668,516 110,200 4,165,643 Additions at cost – 316,645 – 316,645 Amortization for the year (234,942) (233,425) (22,870) (491,237) Closing net book value 3,151,985 751,736 87,330 3,991,051

As at July 01, 2010 Cost 4,588,988 1,126,995 342,000 6,057,983 Accumulated amortization (1,437,003) (375,259) (254,670) (2,066,932) Net book value 3,151,985 751,736 87,330 3,991,051

Year ended June 30, 2011 Opening net book value 3,151,985 751,736 87,330 3,991,051 Additions at cost – 514,795 – 514,795 Amortization for the year (234,654) (341,396) (22,800) (598,850) Closing net book value 2,917,331 925,135 64,530 3,906,996

As at June 30, 2011 Cost 4,588,988 1,641,790 342,000 6,572,778 Accumulated amortization (1,671,657) (716,655) (277,470) (2,665,782) Net book value 2,917,331 925,135 64,530 3,906,996



2011 2010 Note Rs ‘000 Rs ‘000

18.2 Breakup of net book values as at June 30, is as follows: Licenses - PTCL Telecom 18.3 94,747 104,722 WLL spectrum 18.3 2,371,695 2,550,695 WLL and LDI license 18.4 92,880 98,340 IPTV 18.5 495 2,475 Licenses - PTML 18.6 357,514 395,753

2,917,331 3,151,985

Software - PTCL Bill printing software 18.7 4,374 6,015 Billing and automation of broadband 18.7 26,873 36,085 SAP - Enterprise Resource Planning (ERP) system 18.8 445,063 280,699

Software - PTML 18.9 448,825 428,937

925,135 751,736 Frequency vacation charges 18.10 64,530 87,330

3,906,996 3,991,051 18.3 The Pakistan Telecommunication Authority (PTA) has issued a license to the holding Company to provide telecommunication

services in Pakistan for a period of 25 years commencing January 01, 1996 at an agreed license fee of Rs 249,344 thousand. During the year ended June 30, 2005, PTA modified the previously issued license to provide telecommunication services to include spectrum license at an agreed license fee of Rs 3,646,884 thousand. This license allowed the holding Company to provide the Wireless Local Loop services in Pakistan over a period of 20 years commencing October 2004. The cost of the license is being amortized on straight line basis over the period of the license.

18.4 The Pakistan Telecommunication Authority (PTA) has issued a license under section 5 of the Azad Jammu and Kashmir Council Adaptation of Pakistan Telecommunication (Re-organization) Act, 1996, Northern Areas Telecommunication (Re-organization) Act, 2005 and Northern Areas Telecommunication (Re-organization) (Adaptation and Enforcement) Order, 2006 to the holding Company to establish, maintain and operate a telecommunication system in Azad Jammu and Kashmir and Gilgit Baltistan for a period of 20 years commencing May 28, 2008 for an agreed license fee of Rs. 109,270 thousand. The cost of the license is being amortized on straight line basis over the period of the license.

18.5 PTCL acquired the IPTV license from Pakistan Electronic Media Regulatory Authority on October 01, 2006 for the agreed price of Rs 9,900 thousand. The cost of license is being amortized on straight line basis over the period of 5 years. IPTV license will expire on September 30, 2011.

18.6 ‘PTA has issued two licenses to PTML to establish, maintain and operate cellular services in Pakistan and Azad Jammu and Kashmir for a period of 15 years commencing May 1999 and June 2006 respectively.



18.7 The cost of the software is being amortized on a straight line basis over a period of 5 years.

18.8 This represents cost of the SAP - Enterprise Resource Planning (ERP) system with a useful life of 10 years, being amortized on straight line basis.

18.9 This represents machine independent IT software with a useful life of 3 years, being amortized on straight line basis.

18.10 Vacancy charges comprise the amount paid in the year 2000 to the Special Communication Organization, on initial vacation of their equipment and releasing the spectrum in favour of PTML. It has a useful life of 15 years.

18.11 The amortization charge for the year has been allocated as follows: 2011 2010 Note Rs ‘000 Rs ‘000

Cost of services 33 304,348 303,035 Administrative and general expenses 34 294,502 188,202

598,850 491,237

19. Long-term investments Investments in related party 19.1 23,653 25,010 Other investments 19.2 83,900 83,900

107,553 108,910

19.1 Investments in related party - unquoted Associate - unquoted

TF Pipes Limited 1,658,520 (2010: 1,658,520) ordinary shares of Rs 10 each Ordinary shares held 40% (2010: 40%) Cost 23,539 23,539 Post acquisition profit 114 1,471

23,653 25,010

19.1.1 The net assets of the associate - TF Pipes Limited are as follows: Total assets 103,556 95,006

Total liabilities 62,022 49,863

Revenue 182,599 145,146

Expenses 187,042 143,108

(Loss) / profit (3,393) 2,038



2011 2010 Note Rs ‘000 Rs ‘000

19.2 Other investments Available-for-sale investments - unquoted Thuraya Satellite Company 3,670,000 (2010: 3,670,000) ordinary shares of 1 Dirham each 63,900 63,900

Alcatel - Lucent Pakistan Limited 2,000,000 (2010: 2,000,000) ordinary shares of Rs 10 each 20,000 20,000

New ICO Global Communications (Holdings) Limited 218,207 (2010: 218,207) ordinary shares of USD 0.01 per share 104,708 104,708 Less: Impairment (104,708) (104,708)

– –

World Tel Assembly of Governors Participation Fund investment of USD 100,000 (2010: USD 100,000) 6,390 6,390 Less: Impairment (6,390) (6,390)

– –

83,900 83,900

20. Long-term loans - considered good Loans to employees - secured

PTCL 20.1 607,268 509,254 PTML 20.2 83,622 –

690,890 509,254 Current portion shown under current assets 24 (143,706) (172,244) Others 5,576 200

552,760 337,210

20.1 These loans and advances are for house building and purchase of motor cars, motor cycles and bicycles. Loans to gazetted

employees of the holding Company carry interest at the rate of 15% per annum (2010: 15% per annum), whereas, loans to employees other than gazetted employees are interest free. The loans are recoverable in monthly installments spread over a period of 5 to 10 years. These loans are secured against future pension payments of the employees.



This balance also includes a sum of Rs 4,774 thousand (2010: Rs 14,821 thousand), due from employees against the sale of vehicles, recoverable in monthly installments spread over a period of 1 to 2 years.

20.2 These represent interest free housing loans provided to eligible executive employees in accordance with PTML’s policy. The loans are secured against property located within Pakistan and owned by the employees. The loans are recoverable over a period of seven and a half years in equal installments.

20.3 Reconciliation of carrying amounts of loans to executives and other employees: PTCL As at July 01, 2010 Disbursements Repayments As at June 30, 2011 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

Executives 9,545 4,790 2,583 11,752 Other employees 499,709 211,884 116,077 595,516

509,254 216,674 118,660 607,268

As at July 01, 2009 Disbursements Repayments As at June 30, 2010 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

Executives 12,532 23 3,010 9,545 Other employees 443,067 194,244 137,602 499,709

455,599 194,267 140,612 509,254

2011 2010 Rs ‘000 Rs ‘000

PTML Related parties Chief Executive Officer 60,200 – Key management personnel 71,014 –

131,214 – Discounting to present value (47,592) –

83,622 –

These represent interest free housing loans provided to the eligible executive employees in accordance with PTML’s policy. The loans are secured against property located within Pakistan and owned by the employee. The loans are recoverable over a period of seven and half years in equal installments.



Reconciliation of loan to Chief Executive Officer and key management personnel

Chief Executive Officer Key management personnel 2011 2010 2011 2010 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

Balance as at July 01 – – – – Disbursements during the year 63,000 – 73,780 – Repayments during the year (2,800) – (2,766) –

Balance as at June 30 60,200 – 71,014 –

21. Stores, spares and loose tools Stores, spares and loose tools 21.1 3,896,680 4,704,186 Provision for obsolescence 21.2 (527,192) (628,323)

3,369,488 4,075,863

21.1 Stores, spares and loose tools include items which may be capitalized as a part of property, plant and equipment but are not distinguishable.

2011 2010 Note Rs ‘000 Rs ‘000

21.2 Provision for obsolescence Balance as at July 01 628,323 649,591 Provision during the year 33 73,992 102,761

702,315 752,352 Write-offs against provision (175,123) (124,029)

527,192 628,323

22. Stock-in-trade

SIM cards 160,002 181,970 Scratch cards 20,155 17,381 Mobile phones 453,999 185,848

634,156 385,199 Provision for slow moving stock and warranty against mobile phones (56,722) –

577,434 385,199



2011 2010 Note Rs ‘000 Rs ‘000

23. Trade debts PTCL - unsecured

Domestic Considered good 6,593,874 6,774,197 Considered doubtful 13,594,288 17,612,764

20,188,162 24,386,961

International Considered good 23.1 1,653,903 2,935,276 Considered doubtful 840,327 953,959

2,494,230 3,889,235

PTML Considered good - secured 23.2 639,564 294,270 Considered good - unsecured 23.1 547,544 365,594 Considered doubtful - unsecured 263,855 233,715

1,450,963 893,579

24,133,355 29,169,775 Others - unsecured Considered good – 15,897 Considered doubtful – 5,744

– 21,641

24,133,355 29,191,416 Provision for doubtful debts 23.3 (14,698,470) (18,806,183)

9,434,885 10,385,233

23.1 These include amounts due from the following related parties:

Etisalat - UAE 127,469 433,405 Etisalat - Afghanistan – 21,685

127,469 455,090

These amounts are interest free and are accrued in the normal course of business.



23.2 These are secured against customer and dealer deposits having an aggregate amount of Rs 905,656 thousand (2010: Rs 581,398 thousand). These also include unbilled revenue related to postpaid subscribers, aggregating to Rs 200,000 thousand (2010: Rs 163,315 thousand).

2011 2010 Note Rs ‘000 Rs ‘000

23.3 Provision for doubtful debts Balance as at July 01 18,806,183 19,189,596 Provision for the year 34 1,645,016 1,925,726 Provision transferred from MAXCOM – 5,744

20,451,199 21,121,066 Trade debts written off against provision (5,752,729) (2,314,883)

Balance as at June 30 14,698,470 18,806,183

24. Loans and advances Loans

Current portion of long-term loans to employees - considered good 20 143,706 172,244

Short-term loan - unsecured considered doubtful 24.1 9,964 9,964 Provision for short-term loan (9,964) –

– 9,964

143,706 182,208

Advances - considered good Advances to employees 24.2 40,101 27,933 Advances to suppliers and contractors 24.3 589,939 508,070

630,040 536,003

773,746 718,211

24.1 This represents a loan to Pakistan MNP Database (Guarantee) Limited, a related party, for working capital purposes, carrying interest at 17% (2010:17%) per annum. The loan was due for repayment on June 30, 2010. However, no repayment was received till June 30, 2011 and a full provision was made against this balance.

24.2 These include advances to Executives amounting to Rs 6,026 thousand (2010: Rs 9,409 thousand) and key management personnel of Rs 1,665 thousand (2010: Rs 1,350 thousand).

24.3 These include an advance of Rs 11,887 thousand (2010: Rs 6,841 thousand) given to TF Pipes Limited, a related party accrued in the normal course of business.



2011 2010 Rs ‘000 Rs ‘000

25. Deposits and prepayments Deposits Security deposits 63,553 58,471 Margin against letter of credit 21,748 160,123

85,301 218,594 Prepayments Site rentals 798,387 702,872 Maintenance 354,786 272,426 Others 56,874 50,731

1,210,047 1,026,029

1,295,348 1,244,623

26. Accrued interest Accrued profit on bank placements 315,199 396,877 Interest receivable on loans to executives 62,623 59,646

377,822 456,523

27. Recoverable from tax authorities Income tax 11,952,143 6,646,547 Sales tax 614,056 635,234

Federal Excise Duty 1,217,171 466,176 Provision for doubtful amount (466,176) –

750,995 466,176

13,317,194 7,747,957

28. Receivable from Government of Pakistan This represents the balance amount receivable from the Government of Pakistan, on account of its agreed share in the voluntary separation scheme, offered to the holding Company’s employees during the year ended June 30, 2008.



2011 2010 Note Rs ‘000 Rs ‘000

29. Other receivables Considered good

Due from related parties: Etisalat - UAE against secondment of employees 58,297 74,790 Pakistan Telecommunication Employees Trust 95,691 86,708 PTCL employees GPF Trust 64,124 286,757

Other receivables from: Vendors 113,067 184,902 Others 172,863 447,122

504,042 1,080,279

Considered doubtful 29.1 326,166 185,239 Provision for doubtful receivables (326,166) (185,239)

– –

504,042 1,080,279

29.1 Provision for doubtful receivables Balance as at July 01 185,239 185,239 Provision for the year 34 140,927 –

Balance as at June 30 326,166 185,239

30. Short-term investments Term deposits at amortized cost - maturity upto 3 months 30.1 2,356,872 13,238,949

Available-for-sale investments - at fair value - units of mutual funds 30.2 285,506 254,916

2,642,378 13,493,865



30.1 Term deposits Term Maturity Profit rate % 2011 2010 months Upto per annum Rs ‘000 Rs ‘000

Askari Bank Limited 3 August 28, 2011 13.30 2,356,872 – National Bank of Pakistan – 2,687,973 Bank Alfalah Limited – 3,551,458 The Bank of Punjab – 2,491,873 NIB Bank Limited – 4,507,645

2,356,872 13,238,949

2011 2010 Rs ‘000 Rs ‘000

30.2 Available-for-sale investments - at fair value 30.2.1 Units of mutual funds Units of open-end mutual funds: Pakistan Cash Management Fund 2,236,062 (2010: 2,013,768) units 114,411 102,059 NAFA Government Securities Liquid Fund 5,563,826 (2010: 5,011,856) units 57,638 51,493 BMA Empress Cash Fund 2,733,117 (2010: 2,416,129) units 28,844 25,691 Faysal Saving Growth Fund 546,288 (2010: 489,285) units 56,262 50,455 Askari Sovereign Cash Fund 281,564 (2010: 232,801) units 28,351 25,218

285,506 254,916

30.2.2 Movement in available-for-sale investments during the year:

Balance as at July 01 254,916 – Additions during the year 750,000 504,916 Sold during the year (768,9I5) (254,916) Gain on sale of units of open-ended mutual funds

transferred to income 18,915 4,916 Unrealized gain transferred to other comprehensive income 30,590 –

285,506 254,916




2011 2010 Note Rs ‘000 Rs ‘000

31. Cash and bank balances Cash in hand 28,256 26,069

Balances with banks Deposit accounts - local currency 31.1 & 31.2 14,893,448 6,346,454 Saving accounts 31.3 Local currency 84,948 2,027,680 Foreign currency 56,021 20,515

140,969 2,048,195 Current accounts

Local currency 1,453,073 1,358,156 Foreign currency USD 3,287 thousand (2010: USD 3,430 thousand) 282,160 293,686

1,735,233 1,651,842

16,797,906 10,072,560

31.1 The balances in deposit accounts, carry mark-up ranging between 5% and 13.7% (2010: 5% and 13.8%) per annum.

31.2 Deposit accounts include Rs 3,691,898 thousand (2010: Rs 3,682,831 thousand) under lien of bank, against letters of guarantee and letters of credit issued on behalf of the holding Company.

31.3 The effective interest / mark-up rate on saving accounts ranged between 5% to 11.5% (2010: 4% to 12.65%) per annum.

2011 2010 Note Rs ‘000 Rs ‘000

32. Revenue Domestic 32.1 99,387,711 91,958,760 International 32.2 5,202,626 6,947,005

104,590,337 98,905,765

32.1 Revenue is exclusive of Federal Excise Duty amounting to Rs 14,872,830 thousand (2010: Rs 14,593,713 thousand).

32.2 International revenue represents revenue from foreign network operators, for calls that originate outside Pakistan, and has been shown net of interconnect cost relating to the other operators and Access Promotion Charges, aggregating to Rs 11,241,321 thousand (2010: Rs 11,261,154 thousand).



2011 2010 Note Rs ‘000 Rs ‘000

33. Cost of services Salaries, allowances and other benefits 33.1 11,489,102 9,188,049 Call centre charges 303,815 199,061 Interconnect cost 10,691,717 10,797,066 Foreign operators cost and satellite charges 8,857,258 7,293,971 Network operating cost 4,853,804 3,309,326 Fuel and power 33.2 3,399,180 3,380,357 Communication 7,980 9,522 Cost of SIMs 703,702 625,376 Cost of prepaid cards 129,917 134,702 Discount on prepaid cards 2,039,140 1,749,481 Stores, spares and loose tools consumed 1,432,652 1,014,250 Provision for obsolete stores, spares and loose tools 21.2 73,992 102,761 Provision for slow moving stock 49,030 - Rent, rates and taxes 829,815 636,335 Repairs and maintenance 2,006,511 1,802,766 Printing and stationery 320,692 281,604 Travelling and conveyance 9,834 12,656 Depreciation of property, plant and equipment 17.5 20,221,074 20,279,048 Amortization of intangible assets 18.11 304,348 303,035 Annual license fee to PTA 959,338 873,163 Others 2,061 3,216

68,684,962 61,995,745

33.1 This includes Rs 2,673,648 thousand (2010: 1,617,133 thousand) in respect of employees’ retirement benefits.

33.2 This includes Rs 466,176 thousand (2010: Nil) in respect of provision against recoverable from tax authorities on account of Federal Excise Duty.



2011 2010 Note Rs ‘000 Rs ‘000

34. Administrative and general expenses Salaries, allowances and other benefits 34.1 2,255,784 1,953,737 Call centre charges 45,572 29,859 Fuel and power 255,842 254,427 Rent, rates and taxes 500,046 104,340 Repairs and maintenance 475,982 443,261 Printing and stationery 4,942 4,345 Travelling and conveyance 245,316 273,492 Technical services assistance fee 34.2 3,743,561 3,412,554 Legal and professional charges 271,016 193,013 Auditors’ remuneration 34.3 16,842 14,051 Depreciation of property, plant and equipment 17.5 1,128,848 822,126 Amortization of intangible assets 18.11 294,502 188,202 Research and development 34.4 220,230 321,921 Provisions: - against doubtful debts 23.3 1,645,016 1,925,726 - against doubtful receivables 29.1 140,927 – Donations 34.5 46,575 280 Goodwill written off 18 26,424 – Other expenses 2,973,890 2,573,537

14,291,315 12,514,871

34.1 This includes Rs 338,541 thousand (2010: Rs 251,121 thousand) in respect of employees’ retirement benefits.

34.2 This represents an amount payable to Etisalat - UAE, a related party, under a technical services agreement between the Group and Etisalat, for a period of five years, commencing October 01, 2006. The fee is charged at the rate of 3.5% of the Group’s consolidated annual revenue.

2011 2010 Rs ‘000 Rs ‘000

34.3 Auditors’ remuneration A. F. Ferguson & Co. Statutory audit including half yearly review 5,350 4,500 Tax services 3,542 3,026 Others 1,275 250

Ernst & Young Ford Rhodes Sidat Hyder Statutory audit including half yearly review 4,500 5,350 Tax services 1,925 – Others 250 925

16,842 14,051



34.4 This represents the Group’s contribution to the Information Communication Technology (ICT) Research and Development Fund, at the rate of 0.5% (2010: 1% and 0.5%) of its gross revenues less inter-operator payments and payments toward research and development activities in Pakistan, in accordance with the terms and conditions of its license to provide telecommunication services.

34.5 There were no donations during the year in which the directors or their spouses had any interest. 2011 2010 Note Rs ‘000 Rs ‘000

35. Selling and marketing expenses Salaries, allowances and other benefits 35.1 1,842,948 1,425,015 Call centre charges 30,381 19,906 Sales and distribution charges 1,443,971 1,614,841 Fuel and power 75,536 75,116 Printing and stationery 3,300 2,901 Travelling and conveyance 9,828 12,653 Advertisement and publicity 3,035,754 3,300,709 Mobile number portability fee 167,321 319,790 Net cost of handsets sold 50,155 80,233 GoP activation tax 418,209 472,341 Depreciation of property, plant and equipment 17.5 58,192 61,076 Others 379,580 359,572

7,515,175 7,744,153

35.1 This includes Rs 304,648 thousand (2010: 206,077 thousand) in respect of employees’ retirement benefits.

2011 2010 Rs ‘000 Rs ‘000

36. Other operating income Income from financial assets: Return on bank placements 2,418,334 4,018,189 Interest on long-term loans 8,361 4,909 Late payment surcharge from subscribers on over due bills 181,749 162,465 Dividend 36,000 22,000 Gain on sale of units of open-ended mutual funds 18,915 4,916

Income from non-financial assets: Gain on disposal of items of property, plant and equipment 167,701 137,753 Gain on sale of obsolete stores 63,264 45,238 Old liabilities written back 1,131,081 151,638 Secondment income from Etisalat 75,545 85,351 Amortization of deferred government grants 78,804 – Others 279,730 644,552

4,459,484 5,277,011


2011 2010 Note Rs ‘000 Rs ‘000

37. Finance costs Interest on:

Long-term loans from banks 2,330,736 955,472 Long-term liability 29,557 638,446 Short-term running finances 567 8,212 Finance lease 31,488 – Bank and other charges 263,711 390,955 Exchange loss - net 51,380 1,079,149 Imputed interest related to WLL license fee – 151,529 AJK license fee 12,359 66,407 Long-term loans 47,592 – Acquisition of MAXCOM 6,624 3,326

2,774,014 3,293,496

37.1 During the year finance costs of Rs 34,464 thousand (2010: Rs 378,248 thousand) were capitalized.

38. Taxation Current - for the year 1,989,923 3,451,037 - for prior year 522,691 –

2,512,614 3,451,037 Deferred 11 4,864,762 3,437,465

7,377,376 6,888,502 Share of tax of an associate – 439

7,377,376 6,888,941




38.1 Tax charge reconciliation The numerical reconciliation between the average effective tax rate and the applicable tax rate is as follows: 2011 2010 % %

Applicable tax rate 35.00 35.00

Effect of change in prior year’s tax 3.31 –

Tax effect of minimum tax not recognised as deferred tax asset 3.71 1.25

Tax effect of income taxed but eliminated on consolidation 3.60 –

Tax effect of amounts that are not deductible for tax purposes and others 1.12 0.72

11.74 1.97

Average effective tax rate charged to the statement of comprehensive income 46.74 36.97

2011 2010

39. Earnings per share - basic and diluted Profit for the year Rupees in thousand 8,405,622 11,746,824

Weighted average number of ordinary shares Numbers in thousand 5,100,000 5,100,000

Earnings per share Rupees 1.65 2.30

40. Non-funded finance facilities PTCL has non-funded financing facilities available with banks, which include facilities to avail letters of credit and letters of guarantee. The aggregate facility of Rs 18,125,000 thousand (2010: Rs 18,100,000 thousand) and Rs 5,000,000 thousand (2010: Rs 4,000,000 thousand) is available for letters of credit and letters of guarantee respectively, out of which the facility availed at the year end is Rs 7,350,770 thousand (2010: Rs 8,249,727 thousand). The letter of credit facility is secured by a hypothecation charge over certain assets of PTCL, amounting to Rs 11,650,333 thousand (2010: Rs 32,633,000 thousand).


2011 2010 Rs ‘000 Rs ‘000

41. Cash generated from operations Profit before tax 15,782,998 18,635,765 Adjustments for non-cash charges and other items: Depreciation and amortization 22,006,964 21,653,487 Provision for doubtful trade debts 1,645,016 1,925,726 Provision for doubtful receivables 140,927 – Provision for doubtful loans and advances 9,964 – Provision for doubtful recoverable from tax authorities 466,176 – Provision for obsolete stores, spares and loose tools 73,992 102,761 Provision for stock-in-trade 56,722 – Employees’ retirement benefits 3,265,905 2,009,958 Imputed interest on payment to PTA against WLL license fee – 221,262 Interest on long-term loans – (4,909) Gain on disposal of property, plant and equipment (167,701) (137,753) Unrealized gain on available-for-sale investments 30,590 – Dividend (36,000) (22,000) Return on bank placements (2,418,334) (4,018,189) Gain on sale of units of open-end mutual funds (18,915) (4,916) Amortization of USF grants (78,804) – Goodwill written off 26,424 – Liabilities written back (1,131,081) (154,638) Finance costs 2,668,418 1,478,316 Share of loss/(profit) from associate 1,357 (1,254) 42,324,618 41,683,616

Effect on cash flows due to working capital changes: (Increase) / decrease in current assets: Stores, spares and loose tools 632,383 1,023,367 Stock in trade (248,957) 85,474 Trade debts (694,668) (1,424,356) Loans and advances (94,037) 294,338 Deposits and prepayments (50,725) (410,517) Recoverable from tax authorities (729,817) (41,802) Other receivables 435,310 (80,771) (750,511) (554,267)

Increase / (decrease) in current liabilities: Trade and other payables 1,773,139 1,830,719 Unearned income (262,447) 478,871 1,510,692 2,309,590 43,084,799 43,438,939



2011 2010 Note Rs ‘000 Rs ‘000

42. Cash and cash equivalents Short-term investments 30 2,642,378 13,493,865 Cash and bank balances 31 16,797,906 10,072,560 Short term running finance (234,676) –

19,205,608 23,566,425

43. Remuneration of Directors, The aggregate amount charged in the financial statements for remuneration, including all benefits, to the Chairman, Chief Chief Executive and Executives Executive and Executives of the Group is as follows: Chairman Chief Executive Executives 2011 2010 2011 2010 2011 2010 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

Managerial remuneration – – 96,021 78,074 1,400,115 1,200,894 Honorarium 300 300 – – 2,051 2,965 Bonus – – – – 159,400 96,696 Retirement benefits – – – – 360,824 286,629 Housing – – – – 533,777 454,578 Utilities – – – – 96,855 79,652

300 300 96,021 78,074 2,553,022 2,121,414

Number of persons 1 1 1 1 872 778

The Group also provides free medical and limited residential telephone facilities to all its Executives including the Chief Executive. The Chairman is entitled to free transport and limited residential telephone facility, whereas the Directors of the Group are provided only with limited telephone facilities. Certain executives are also provided with Group maintained cars.

The aggregate amount charged in the consolidated financial statements for the year, as fee to 9 directors, (2010: 9 directors), is Rs 7,885 thousand (2010: Rs. 11,682 thousand) for attending Board of Directors and sub-committee, meetings.

44. Rates of exchange Assets in foreign currencies have been translated into Rupees at USD 1.1648 (2010: USD 1.1709) equal to Rs 100, while liabilities in foreign currencies have been translated into Rupees at USD 1.1648 (2010: USD 1.1682) equal to Rs 100.



45. Financial risk management 45.1 Financial risk factors The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, other price risk and interest

rate risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance.

Risk management is carried out by the Board of Directors (the Board). The Board has prepared a ‘Risk Management Policy’ covering specific areas such as foreign exchange risk, interest rate risk, credit risk and investment of excess liquidity. All treasury related transactions are carried out within the parameters of this policy.

(a) Market risk (i) Currency risk

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. Currency risk arises mainly from future commercial transactions or receivables and payables that exist due to transactions in foreign currencies.

The Group is exposed to currency risk arising from various currency exposures, primarily with respect to the United States Dollar (USD), Euros, Swiss Franc (CHF) and Australian Dollar (AUD). Currently, the Group’s foreign exchange risk exposure is restricted to the amounts receivable from / payable to the foreign entities. The Group’s exposure to currency risk is as follows:

2011 2010 Rs ‘000 Rs ‘000

USD Trade and other payables (4,722,690) (3,687,435) Long-term vendor liability (5,287,691) (10,676,940) License fee payable (181,125) (210,759) Trade debts 2,559,588 4,042,311 Cash and bank balances 336,973 294,493

Net exposure (7,294,945) (10,238,330)

EURO Trade and other payables (69,355) (53,683) Trade debts 36,354 30,459 Cash and bank balances 1,285 4,131

Net exposure (31,716) (19,093)

CHF Trade and other payables (7,395) (5,660)

AUD Loans and advances 2,337 1,850



The following significant exchange rates were applied during the year: 2011 2010

Rupees per USD Average rate 85.46 83.92 Reporting date rate 85.85 85.60

Rupees per EURO Average rate 114.76 116.45 Reporting date rate 124.89 104.62 Rupees per CHF Average rate 90.41 79.07 Reporting date rate 103.35 79.10

Rupees per AUD Average rate 84.95 74.00 Reporting date rate 92.19 72.96

If the functional currency, at the reporting date, had fluctuated by 5% against the USD, EURO, CHF and AUD with all other variables held constant, the impact on profit after taxation for the year would have been Rs 238,191 thousand (2010: Rs 327,000 thousand) respectively lower/ higher, mainly as a result of exchange gains / losses on translation of foreign exchange denominated financial instruments. Currency risk sensitivity to foreign exchange movements has been calculated on a symmetric basis.

(ii) Other price risk Other price risk represents the risk that the fair value or future cash flows of a financial instrument will fluctuate because of

changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.

The Group is exposed to equity securities price risk because of the investments held by the Group in money market mutual funds and classified on the statement of financial position as available for sale. To manage its price risk arising from investments in mutual funds, the Group diversifies its portfolio.

The other financial assets include available-for-sale investments of Rs 285,506 thousand (2010: Rs 254,916 thousand) which were subject to price risk.

If redemption price on mutual funds, at the year end date, fluctuate by 5% higher / lower with all other variables held constant, total comprehensive income for the year would have been Rs 14,275 thousand (2010: Rs 12,749 thousand) higher / lower, mainly as a result of higher / lower redemption price on units of mutual funds.

(iii) Interest rate risk Interest rate risk represents the risk that the fair value of future cash flows of a financial instrument will fluctuate because of

changes in market interest rates.



At the date of the consolidated statement of financial position, the interest rate profile of the Group’s interest bearing financial instruments is:

2011 2010 Rs ‘000 Rs ‘000

Financial assets Fixed rate instruments: Staff loans 607,268 509,254 Short-term investments - term deposits 2,356,872 13,238,949 Loan to Pakistan MNP Database (Guarantee ) Limited – 9,964 Bank balances-deposit accounts 9,000,000 1,550,000

Floating rate instruments Balances with banks - deposit accounts 5,893,448 4,796,454 - saving accounts 140,969 2,048,195

17,998,557 22,152,816 Financial liabilities

Floating rate instruments Liability against assets subject to finance lease 115,514 - Long - term loans from banks 20,000,000 13,000,000 Long - term vendor liability 1,035,096 12,629,543 Short term running finance 234,676 -

21,385,286 25,629,543 Fair value sensitivity analysis for fixed rate instruments

The Group does not account for any fixed rate financial assets and liabilities at fair value. Therefore, a change in interest rates at the date of consolidated statement of financial position would not affect the total comprehensive income of the Group.

Cash flow sensitivity analysis for variable rate instruments

If interest rates on variable rate instruments of the Group, at the year end date, fluctuate by 1% higher / lower with all other variables held constant, profit after taxation for the year would have been Rs 267,997 thousand (2010: Rs 111,713 thousand) higher / lower, mainly as a result of higher / lower markup income on floating rate loans/investments.



(b) Credit risk Credit risk represents the risk that one party to a financial instrument will cause a financial loss for the other party, by failing to

discharge an obligation. The maximum exposure to credit risk at the reporting date is as follows: 2011 2010 Rs ‘000 Rs ‘000

Long-term investments 83,900 83,900 Long-term loans 552,760 337,210 Trade debts 9,434,885 10,385,233 Deposits 85,301 218,594 Loans and advances 773,746 718,211 Accrued interest 377,822 456,523 Receivable from Government of Pakistan 2,164,072 2,164,072 Other receivables 504,042 1,076,515 Short-term investments 2,642,378 13,493,865 Bank balances 16,769,650 10,072,560

33,388,556 39,006,683

The credit risk on liquid funds is limited, because the counter parties are banks with reasonably high credit ratings. In case of trade debts the Group believes that it is not exposed to a major concentration of credit risk, as its exposure is spread over a large number of counter parties and subscribers.

The credit quality of cash and bank balances and short term investments that are neither past due nor impaired, can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rate:



Rating Rating Short term Long term Agency 2011 2010 Rs ‘000 Rs ‘000

National Bank of Pakistan A–1+ AAA JCR–VIS 3,960,627 3,940,843 Bank Alfalah Limited A1+ AA PACRA 2,641,487 3,228,919 MCB Bank Limited A1+ AA+ PACRA 29,020 125,136 Soneri Bank Limited A1+ AA– PACRA 22,554 3,701 Habib Metropolitan Bank Limited A1+ AA+ PACRA 4,966 38,425 The Bank of Punjab A1+ AA– PACRA 177,474 5,646,366 NIB Bank Limited A1+ AA– PACRA 1,081,653 5,033,791 Faysal Bank Limited A1+ AA JCR–VIS 8,575 283,444 Habib Bank Limited A1+ AA+ JCR–VIS 3,511,644 68,437 Askari Bank Limited A1+ AA PACRA 4,432,092 302,183 Allied Bank Limited A1+ AA PACRA 159,985 154,345 United Bank Limited A1+ AA+ JCR–VIS 4,924 864,643 KASB Bank Limited A2 A– PACRA 228 – Mybank Limited A2 A– PACRA – – Tameer Micro Finance Bank A–1 A JCR–VIS 141 – Bank Al – Habib Limited A1+ AA+ PACRA 1,694,079 318,504 Summit Bank Limited A–2 A JCR–VIS 3,537 – Dubai Islamic Bank A–1 A JCR–VIS 60,060 480,974 Citibank, N.A A–1 A+ S&P’s 196,036 1,110,883 HSBC Bank P–1 A1 Moody’s 1,416 67 Silkbank Limited * A–2 A– JCR–VIS 5,857 7,705 SME Bank Limited A–3 BBB JCR–VIS 645 22,498 Standard Chartered Bank (Pakistan) Limited A1+ AAA PACRA 33,574 453,384 Meezan Bank Limited A–1 AA– JCR–VIS 51,444 13 Emirates Global Islamic Bank Limited A–2 A– PACRA – 803 Arif Habib Bank A–2 A– PACRA 1,000,000 1,122,490 Samba Bank Limited A–1 A JCR–VIS – 100,000 Barclays Bank PLC A1+ AA– S&P’s 44,504 3,955 Mutual Fund – Arif Habib AM2 N/A PACRA 114,411 102,059 Mutual Fund – NAFA AM2 – N/A PACRA 57,638 51,493 Mutual Fund – BMA AM2 – N/A JCR 28,844 25,691 Mutual Fund – Faysal AM2 – N/A JCR 56,262 50,455 Mutual Fund – Askari AM3 N/A PACRA 28,351 25,218

19,412,028 23,566,425



Due to the Group’s long standing business relationships with these counter parties and after giving due consideration to their strong financial standing, management does not expect non-performance by these counter parties on their obligations to the Group. Accordingly, the credit risk is minimal.

* The bank has been placed on a watch list by the State Bank of Pakistan and the most recent rating was carried out in February 2011.

(c) Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.

The Group follows an effective cash management and planning policy to ensure availability of funds and to take appropriate measures for new requirements.

The following are the contractual maturities of financial liabilities as at June 30, 2011:

Carrying amount Less than one year One to five years More than five years Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

Long-term loans 20,000,000 9,000,000 11,000,000 – Liability against assets subject to finance lease 115,514 32,075 71,093 12,346 Payable to PTA against license fee 181,230 42,984 138,246 – Employees’ retirement benefits 17,018,391 – – 17,018,391 Long-term security deposits 1,646,400 – 740,744 905,656 Long-term vendor liability 6,421,326 3,232,951 3,188,375 – Trade and other payables 30,271,166 30,271,166 – – Interest accrued 387,114 387,114 – – Short-term running finance 234,676 234,676 – – Dividend payable 3,375,631 3,375,631 – –

79,651,448 46,576,597 15,138,458 17,936,393

The following are the contractual maturities of financial liabilities as at June 30, 2010:

Carrying amount Less than one year One to five years More than five years Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

Long-term loans 13,000,000 – 12,500,000 500,000 Payable to PTA against license fee 2,105,135 1,935,288 139,756 30,091 Employees’ retirement benefits 15,676,877 – – 15,676,877 Long-term security deposits 1,295,008 – 1,295,008 – Long-term vendor liability 16,439,438 5,980,398 10,459,040 – Trade and other payables 29,041,217 29,041,217 – – Interest accrued 284,273 284,273 – – Dividend payable 3,375,631 3,375,631 – –

81,217,579 40,616,807 24,393,804 16,206,968



45.2 Fair value of financial assets and liabilities The carrying values of all financial assets and liabilities reflected in the consolidated financial statements approximate their fair

values. Fair value is determined on the basis of objective evidence at each reporting date.

Available-for-sale Loans and receivables Total 2011 2010 2011 2010 2011 2010 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

45.3 Financial instruments by categories Financial assets as per statement of

financial position

Long-term investments 83,900 83,900 – – 83,900 83,900 Long-term loans – – 552,760 337,210 552,760 337,210 Trade debts – – 9,434,885 10,385,233 9,434,885 10,385,233 Loans and advances – – 143,706 182,208 143,706 182,208 Deposits – – 85,301 218,594 85,301 218,594 Accrued interest – – 377,822 456,523 377,822 456,523 Receivable from Government of Pakistan – – 2,164,072 2,164,072 2,164,072 2,164,072 Other receivables – – 504,042 1,080,279 504,042 1,080,279 Short-term investments 285,506 254,916 2,356,872 13,238,949 2,642,378 13,493,865 Cash and bank balances – – 16,797,906 10,072,560 16,797,906 10,072,560

369,406 338,816 32,417,366 38,135,628 32,786,772 38,474,444

Liabilities at fair value through profit and loss Other financial liabilities Total 2011 2010 2011 2010 2011 2010 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000 Rs ‘000

Financial liabilities as per statement of financial position

Long-term loans – – 20,000,000 13,000,000 20,000,000 13,000,000 Liability against assets subject to finance lease – – 115,514 - 115,514 - Payable to PTA against license fee – – 181,230 2,105,135 181,230 2,105,135 Employees’ retirement benefits – – 17,018,391 15,676,877 17,018,391 15,676,877 Long-term security deposits – – 1,646,400 1,295,008 1,646,400 1,295,008 Long-term vendor liability – – 6,421,326 16,439,438 6,421,326 16,439,438 Trade and other payables – – 30,271,166 29,041,217 30,271,166 29,041,217 Interest accrued – – 387,114 284,273 387,114 284,273 Short term running finance – – 234,676 234,676 234,676 234,676 Dividend payable – – 3,375,631 3,375,631 3,375,631 3,375,631

– – 79,651,448 81,452,255 79,651,448 81,452,255



45.4 Capital risk management The Board’s policy is to maintain an efficient capital base so as to maintain investor, creditor and market confidence and to

sustain the future development of Group’s business. The Board of Directors monitors the return on capital employed, which the Group defines as operating income divided by total capital employed. The Board of Directors also monitors the level of dividends to ordinary shareholders.

The Group’s objectives when managing capital are:

(i) to safeguard the group’s ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders; and

(ii) to provide an adequate return to shareholders.

The Group manages the capital structure in the context of economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Group may, for example, adjust the amount of dividends paid to shareholders, issue new shares, or sell assets to reduce the debt.

For working capital and capital expenditure requirements, the Group relies on internal cash generation and does not have any significant borrowings.

46. Transactions with related parties The Group’s related parties comprise of associated undertakings, employees’ retirement benefit plans and key management personnel. Amounts due from / (to) related parties are shown under receivables and payables. Remuneration of key management personnel is disclosed in note 43. Additionally, the Group had transactions with the following related parties during the year:

Associates TF Pipes Limited Emirates Telecommunication Corporation Etisalat International Pakistan Etisalat - Afghanistan

Employees’ benefit plans Pakistan Telecommunication Employees’ Trust PTCL Employees’ GPF Trust Telecom Foundation PTML - Employees’ Provident Fund PTML - Employees’ Gratuity Fund




Transactions between the Group and its related parties other than those which have been disclosed elsewhere in these consolidated financial statements are:

2011 2010 Rs ‘000 Rs ‘000

Associates Purchase of goods and services 1,278,756 1,763,280 Sale of goods and services 1,685,270 5,699,037 Dividend paid 2,088,450 4,176,900 Technical services assistance fee 3,743,561 3,412,554

47. Operating segment Information 47.1 Management has determined the operating segments based on the information that is presented to the Group’s Board of Directors for allocation of resources and assessment of performance. The Group is organised into two operating segments i.e. fixed line communications (Wire line) and wireless communications (Wireless). The reportable operating segments derive their revenue primarily from voice, data and other services.

47.2 The Group’s Board of Directors monitor the results of the above mentioned segments for the purpose of making decisions about the resources to be allocated and for assessing performance based on total comprehensive income for the year.

47.3 The segment information for the reportable segments is as follows:

Wire line Wireless Total Rs ‘000 Rs ‘000 Rs ‘000

Year ended June 30, 2011 Segment revenue 52,444,416 58,640,912 111,085,328 Inter - segment revenue (4,965,088) (1,529,903) (6,494,991)

Revenue from external customers 47,479,328 57,111,009 104,590,337

Segment results 5,662,027 2,743,595 8,405,622

Year ended June 30, 2010 Segment revenue 54,854,619 50,856,228 105,710,847 Inter - segment revenue (4,843,955) (1,961,127) (6,805,082)

Revenue from external customers 50,010,664 48,895,101 98,905,765

Segment results 8,740,244 3,006,580 11,746,824



Information on assets and liabilities of the segments is as follows: Wire line Wireless Total Rs ‘000 Rs ‘000 Rs ‘000

As at June 30, 2011 Segment assets 126,586,343 85,409,029 211,995,372

Segment liabilities 54,111,570 50,297,832 104,409,402

As at June 30, 2010 Segment assets 128,703,930 79,366,392 208,070,322

Segment liabilities 56,627,659 43,367,905 99,995,564

47.4 Other segment information is as follows: Year ended June 30, 2011

Depreciation 10,770,349 10,637,765 21,408,114 Amortization 58,847 540,003 598,850 Finance costs 207,723 2,566,291 2,774,014 Interest income 1,742,466 684,229 2,426,695 Income tax expense 4,969,400 2,407,976 7,377,376 Share of loss from associate 1,357 – 1,357

Year ended June 30, 2010 Depreciation 11,264,313 9,897,937 21,162,250 Amortization 45,223 446,014 491,237 Finance costs 387,111 2,906,385 3,293,496 Interest income 3,549,645 473,453 4,023,098 Income tax expense 4,443,419 2,081,356 6,524,775 Share of profit from associate 1,254 – 1,254

47.5 The Group’s customer base is diverse with no single customer accounting for more than 10% of net revenues.

47.6 The amount of revenue from external parties, total segment assets and segment liabilities is measured in a manner consistent with that of the financial information reported to the Group’s Board of Directors.



47.7 Breakdown of the revenue from all services by category is as follows:

2011 2010 Rs ‘000 Rs ‘000

Voice 78,046,831 84,558,457 Data 15,869,957 8,699,697 Other services 10,673,549 5,647,611

104,590,337 98,905,765

48. Corresponding figures The following corresponding figures have been reclassified for the purposes of better presentation:

Reclassification from component Reclassification to component Rs ‘000

Operating assets Intangible assets 300,494 Other receivables Deposits and prepayments 1,244,623 Administrative and general expenses Cost of services 102,761 Cost of services Selling and marketing expenses 319,790

49. Date of authorization for issue These consolidated financial statements were authorized for issue on September 07, 2011 by the Board of Directors of the holding Company.

50. General Figures have been rounded off to the nearest thousand Rupees unless otherwise specified.



Annexes


Pattern of ShareholdingAs at June 30, 2011

Having Shares Number of Number of From

1 100 25,754 2,550,150 101 500 9,513 2,930,371 501 1,000 3,063 2,689,118 1,001 5,000 3,288 8,653,873 5,001 10,000 724 5,914,962 10,001 15,000 261 3,329,025 15,001 20,000 184 3,435,854 20,001 25,000 121 2,877,628 25,001 30,000 73 2,111,141 30,001 35,000 38 1,257,549 35,001 40,000 37 1,445,039 40,001 45,000 20 862,890 45,001 50,000 65 3,232,193 50,001 55,000 17 893,721 55,001 60,000 17 999,205 60,001 65,000 7 450,400 65,001 70,000 10 688,804 70,001 75,000 16 1,182,100 75,001 80,000 8 617,500 80,001 85,000 4 334,866 85,001 90,000 5 437,913 90,001 95,000 2 187,500 95,001 100,000 40 3,995,500 100,001 105,000 6 615,857 105,001 110,000 7 759,336 110,001 115,000 6 676,400 115,001 120,000 3 359,000 120,001 125,000 8 988,073 125,001 130,000 2 259,500 130,001 135,000 4 533,500 135,001 140,000 3 420,000 140,001 145,000 1 142,000 145,001 150,000 9 1,343,700 150,001 155,000 8 1,212,842 155,001 160,000 2 319,500 160,001 165,000 2 327,500 165,001 170,000 3 506,700 170,001 175,000 2 350,000 175,001 180,000 3 532,014

Having Shares Number of Number of From 180,001 185,000 1 184,000 185,001 190,000 5 938,873 190,001 195,000 2 383,003 195,001 200,000 11 2,196,000 200,001 205,000 3 609,188 205,001 210,000 1 210,000 220,001 225,000 3 673,278 225,001 230,000 3 684,900 230,001 235,000 1 230,924 235,001 240,000 3 711,500 240,001 245,000 1 245,000 245,001 250,000 2 500,000 250,001 255,000 2 501,452 255,001 260,000 3 778,545 265,001 270,000 1 267,790 270,001 275,000 1 275,000 295,001 300,000 5 1,495,434 300,001 305,000 1 305,000 305,001 310,000 1 307,992 310,001 315,000 1 310,600 315,001 320,000 2 634,551 320,001 325,000 1 324,735 335,001 340,000 2 677,237 345,001 350,000 1 350,000 350,001 355,000 1 351,260 355,001 360,000 1 355,400 370,001 375,000 1 371,000 380,001 385,000 1 384,498 395,001 400,000 2 800,000 400,001 405,000 1 403,191 405,001 410,000 3 1,222,855 415,001 420,000 1 417,107 420,001 425,000 2 850,000 440,001 445,000 1 442,065 445,001 450,000 2 893,008 470,001 475,000 2 948,716 475,001 480,000 1 479,328 495,001 500,000 2 998,000 515,001 520,000 1 518,265

To ToShareholders ShareholdersShares Held Shares Held

152 Pakistan Telecommunication Company Limited



520,001 525,000 1 525,000 530,001 535,000 1 530,901 550,001 555,000 1 551,268 585,001 590,000 2 1,175,228 600,001 605,000 1 601,500 605,001 610,000 1 608,300 650,001 655,000 1 650,600 660,001 665,000 1 664,038 690,001 695,000 1 690,400 695,001 700,000 1 700,000 705,001 710,000 1 705,867 710,001 715,000 1 715,000 730,001 735,000 1 730,900 745,001 750,000 1 750,000 755,001 760,000 1 757,175 805,001 810,000 1 809,412 840,001 845,000 1 840,400 850,001 855,000 1 850,627 855,001 860,000 1 859,375 870,001 875,000 1 874,800 895,001 900,000 1 897,000 925,001 930,000 1 927,831 985,001 990,000 1 986,300 990,001 995,000 1 992,071 995,001 1,000,000 1 1,000,000 1,050,001 1,055,000 1 1,052,897 1,095,001 1,100,000 1 1,100,000 1,125,001 1,130,000 1 1,127,000 1,130,001 1,135,000 1 1,135,000 1,165,001 1,170,000 1 1,166,100 1,175,001 1,180,000 1 1,179,500 1,205,001 1,210,000 1 1,208,600 1,210,001 1,215,000 1 1,215,000 1,220,001 1,225,000 1 1,220,500 1,225,001 1,230,000 1 1,227,800 1,295,001 1,300,000 1 1,300,000 1,300,001 1,305,000 1 1,304,329 1,305,001 1,310,000 1 1,307,700 1,310,001 1,315,000 1 1,311,750


1,320,001 1,325,000 1 1,322,400 1,355,001 1,360,000 1 1,355,948 1,425,001 1,430,000 1 1,425,493 1,435,001 1,440,000 1 1,439,600 1,500,001 1,505,000 1 1,501,285 1,570,001 1,575,000 1 1,570,300 1,610,001 1,615,000 1 1,613,800 1,635,001 1,640,000 2 3,277,459 1,695,001 1,700,000 1 1,700,000 1,700,001 1,705,000 1 1,705,000 1,730,001 1,735,000 1 1,730,423 1,745,001 1,750,000 1 1,750,000 1,840,001 1,845,000 1 1,841,099 1,995,001 2,000,000 1 1,997,339 2,085,001 2,090,000 1 2,088,570 2,500,001 2,505,000 1 2,502,610 2,615,001 2,620,000 2 5,235,362 2,695,001 2,700,000 1 2,700,000 2,705,001 2,710,000 1 2,709,500 2,790,001 2,795,000 1 2,792,700 2,840,001 2,845,000 1 2,840,763 2,960,001 2,965,000 1 2,962,995 3,055,001 3,060,000 1 3,057,252 3,080,001 3,085,000 1 3,084,050 3,235,001 3,240,000 1 3,237,500 3,325,001 3,330,000 1 3,326,631 3,345,001 3,350,000 1 3,347,600 3,445,001 3,450,000 1 3,450,000 3,780,001 3,785,000 1 3,784,181 3,830,001 3,835,000 1 3,831,265 3,895,001 3,900,000 1 3,900,000 3,995,001 4,000,000 1 4,000,000 4,090,001 4,095,000 1 4,094,222 4,275,001 4,280,000 1 4,279,009 4,495,001 4,500,000 1 4,500,000 4,500,001 4,505,000 1 4,502,535 4,545,001 4,550,000 1 4,545,769 4,660,001 4,665,000 1 4,662,224 4,845,001 4,850,000 1 4,847,500

To ToShareholders ShareholdersShares Held Shares Held



5,545,001 5,550,000 1 5,547,705 5,985,001 5,990,000 1 5,985,639 6,670,001 6,675,000 1 6,673,089 6,910,001 6,915,000 1 6,913,500 7,195,001 7,200,000 1 7,199,800 8,145,001 8,150,000 1 8,145,568 8,470,001 8,475,000 1 8,472,675 8,670,001 8,675,000 1 8,670,434 10,220,001 10,225,000 1 10,225,000 11,045,001 11,050,000 1 11,047,600 11,060,001 11,065,000 1 11,063,531 11,700,001 11,705,000 1 11,701,984 13,655,001 13,660,000 1 13,656,638 13,875,001 13,880,000 1 13,875,543 18,625,001 18,630,000 1 18,627,614 21,430,001 21,435,000 1 21,433,984 31,310,001 31,315,000 1 31,310,208 55,310,001 55,315,000 1 55,312,149 55,890,001 55,895,000 1 55,893,800 56,760,001 56,765,000 1 56,760,074 196,385,001 196,390,000 1 196,387,991 407,805,001 407,810,000 1 407,809,524 918,190,001 918,195,000 1 918,190,476 2,974,680,000 2,974,685,000 1 2,974,680,002

Total 43,520 5,100,000,000


Catagories of shareholdersAs at June 30, 2011

Shareholders’ No. ofS.No. Category Shareholders No. of Shares Percentage

1 Directors, CEO & children 10 245,009 0.002 NIT & ICP 8 13,000,768 0.25

3 Banks, DFI & NBFI 31 60,224,464 1.19

4 Insurance companies 17 14,023,244 0.28

5 Modarabas & mutual funds 43 100,639,874 1.97

6 Public sector companies & corporations 1 56,760,074 1.11

7 General public (local) 42,700 73,385,168 1.44

8 General public (foreign) 364 482,200 0.01

9 Others 243 71,212,282 1.40

10 Government of Pakistan 5 3,172,647,793 62.21

11 Foreign companies 96 211,379,124 4.14

12 Holding more than 10% 2 1,326,000,000 26.00

Total 43,520 5,100,000,000 100.00

Trades in PTCL SharesThe Directors, Chief Executive Officer, Chief Financial Officer, Company Secretary and their spouses and minor children have not traded in PTCL shares during the financial year 2010-2011.

To Shareholders Shares Held


Details of Catagories of ShareholdersAs at June 30, 2011

1 DIRECTORS, CEO & CHILDRENS.No Name Holding

1 MR. ABDUL RAHIM A. AL NOORYANI 12 MR. ABDUL AZIZ A. AL SAWALEH 13 MR. FADHIL MUHAMMAD ERHAMA AL ANSARI 14 MR. ABDUL AZIZ H. TARYAM 15 DR. AHMED AL JARWAN 16 MR. SAEED AHMAD KHAN 17 MR. JAMIL AHMED KHAN 18 DR SYED ISMAIL SHAH 19 DR. WAQAR MASOOD KHAN 110 DR. WAQAR MASOOD KHAN CDC Account 245,000

Total 245,009

2 NIT & ICPS.No Name Holding

1 NATIONAL BANK OF PAKISTAN TRUSTEE WING 2,0002 INVESTMENT CORPORATION OF PAKISTAN 3,4003 NATIONAL BANK OF PAKISTAN TRUSTEE WING 1,0004 INVESTMENT CORPORTION OF PAKISTAN 1005 NATIONAL INVESTMENT TRUST LTD. 4006 INVESTMENT CORPORATION OF PAKISTAN 8007 NATIONAL BANK OF PAKISTAN-TRUSTEE DEPARTMENT NI(U)T FUND 8,145,5688 NATIONAL INVESTMENT TRUST LIMITED 4,847,500

Total 13,000,768

3 BANKS, DFI & NBFIS.No Name Holding

1 UNITED BANK LIMITED. 6002 CRESCENT INVESTMENT BANK LTD. 1,0003 CRESCENT INVESTMENT BANK LTD. 1,0004 CRESECENT INVESTMENT BANK LTD. 2005 MUSLIM COMMERCIAL BANK LIMITED 690,4006 THE BANK OF PUNJAB 1007 MCB BANK LIMITED 50,0008 PAKISTAN KUWAIT INVESTMENT CO. (PVT) LTD. 5,547,7059 INVEST CAPITAL INVESTMENT BANK LIMITED 260,00010 FAYSAL BANK LIMITED 13,875,54311 MEEZAN BANK LIMITED 1,166,10012 UNITED BANK LIMITED - TRADING PORTFOLIO 859,37513 BANK ALFALAH LIMITED 2,088,570

S.No Name Holding

14 THE BANK OF KHYBER 223,27815 NATIONAL BANK OF PAKISTAN 530,90116 NATIONAL BANK OF PAKISTAN 18,627,61417 SILKBANK LIMITED 1,215,00018 PAK-OMAN INVESTMENT COMPANY LTD. 850,62719 INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN 30,59720 ASKARI BANK LIMITED 4,094,22221 SME BANK LIMITED 8,60022 SAUDI PAK INV. CO. 3,900,00023 THE BANK OF PUNJAB, TREASURY DIVISION. 3,450,00024 FIRST CREDIT & INVESTMENT BANK LIMITED 2,50025 DAWOOD ISLAMIC BANK LIMITED 100,00026 PAK BRUNEI INVESTMENT COMPANY LIMITED 589,23227 PAIR INVESTMENT COMPANY LIMITED 525,00028 ESCORTS INVESTMENT BANK LIMITED 40,00029 ESCORTS INVESTMENT BANK LIMITED 5,90030 ESCORTS INVESTMENT BANK LIMITED 355,40031 INVEST CAPITAL INVESTMENT BANK LIMITED 1,135,000

Total 60,224,464

4 INSURANCE COMPANIESS.No Name Holding

1 PAKISTAN GUARANTEE INSURANCE CO.LTD. 1002 GULF INSURANCE CO. LTD. 1003 PREMIER INSURANCE LIMITED 115,0004 NEW JUBILEE INSURANCE COMPANY LIMITED 1,322,4005 EFU GENERAL INSURANCE LIMITED 200,0006 EFU LIFE ASSURANCE LTD 6,913,5007 NATIONAL INSURANCE COMPANY LIMITED 2,617,5628 PAKISTAN REINSURANCE COMPANY LIMITED 319,5009 ALPHA INSURANCE CO. LTD. 351,26010 RELIANCE INSURANCE COMPANY LTD. 120,00011 NEW JUBILEE LIFE INSURANCE CO.LTD 1,705,00012 HABIB INSURANCE CO.LIMITED 100,00013 CENTURY INSURANCE COMPANY LTD. 33,50014 EAST WEST LIFE ASSURANCE COMPANY LIMITED 50,00015 TAKAFUL PAKISTAN LIMITED 5,50016 ATLAS INSURANCE LIMITED 121,50017 ASKARI GENERAL INSURANCE CO. LTD. 48,322

Total 14,023,244


5 MODARABAS & MUTUAL FUNDSS.No Name Holding

1 L.T.V.CAPITAL MODARABA. 1002 FIRST EQUITY MODARABA 50,0003 TRUST MODARABA 10,0004 TRUST MODARABA 120,0005 B.F.MODARABA 57,0006 FIRST ALNOOR MODARABA 132,5007 FIRST ELITE CAPITAL MODARABA 52,0008 FIRST FIDELITY LEASING MODARABA 4,0009 JS VALUE FUND LIMITED 1,750,00010 CDC - TRUSTEE PICIC INVESTMENT FUND 2,840,76311 CDC - TRUSTEE JS LARGE CAP. FUND 4,000,00012 CDC - TRUSTEE PICIC GROWTH FUND 4,662,22413 CDC - TRUSTEE PAK STRATEGIC ALLOC. FUND 664,03814 CDC - TRUSTEE ATLAS STOCK MARKET FUND 192,00315 CDC - TRUSTEE MEEZAN BALANCED FUND 518,26516 CDC - TRUSTEE FIRST DAWOOD MUTUAL FUND 300,00017 CDC - TRUSTEE JS ISLAMIC FUND 425,00018 CDC - TRUSTEE JS AGGRESSIVE ASSET ALLOCATION FUND 150,00019 ASIAN STOCK FUND LIMITED 403,19120 CDC - TRUSTEE AKD INDEX TRACKER FUND 230,92421 SAFEWAY MUTUAL FUND LIMITED 296,80922 MC FSL - TRUSTEE JS KSE-30 INDEX FUND 59,43623 AL MEEZAN MUTUAL FUND LIMITED 1,311,75024 CDC - TRUSTEE MEEZAN ISLAMIC FUND 4,279,00925 CDC - TRUSTEE ATLAS ISLAMIC STOCK FUND 700,00026 CDC - TRUSTEE NAFA MULTI ASSET FUND 98027 CDC - TRUSTEE KASB STOCK MARKET FUND. 63,90028 CDC - TRUSTEE MEEZAN TAHAFFUZ PENSION FUND - EQUITY SUB FUND 159,50029 TRUSTEE - PPF EQUITY (SUB-FUND) 100,00030 CDC - TRUSTEE APF-EQUITY SUB FUND 100,00031 CDC - TRUSTEE JS PENSION SAVINGS FUND - EQUITY ACCOUNT 100,00032 CDC - TRUSTEE HBL - STOCK FUND 927,83133 CDC - TRUSTEE NAFA ISLAMIC MULTI ASSET FUND 20034 TRUSTEE PIPF EQUITY SUB - FUND 48,80035 CDC - TRUSTEE APIF - EQUITY SUB FUND 125,00036 MC FSL - TRUSTEE JS GROWTH FUND 13,656,63837 CDC - TRUSTEE KASB ASSET ALLOCATION FUND 298,62538 B.R.R. GUARDIAN MODARABA 25,00039 FIRST CAPITAL MUTUAL FUND LIMITED 63,50040 CDC - TRUSTEE NIT STATE ENTERPRISE FUND 55,312,14941 CDC - TRUSTEE NIT-EQUITY MARKET OPPORTUNITY FUND 5,985,63942 CDC - TRUSTEE FIRST HABIB STOCK FUND 203,10043 CDC - TRUSTEE LAKSON EQUITY FUND 260,000

Total 100,639,874


6 PUBLIC SECTOR COS. & CORP.S.No Name Holding

1 STATE LIFE INSURANCE CORP. OF PAKISTAN 56,760,074

Total 56,760,074

7 OTHERSS.No Name Holding

1 SIR.E.HAROON JAFFER & SONS (PVT) LTD. 1002 JAFFER BROTHERS (PRIVATE) LTD 16,7003 GRAND LEISURE CORP (PVT) LTD. 5004 AREEN INTERNATION (PVT) LTD. 1,0005 CAPITOL TRAVELS (PRIVATE) LTD. 2,0006 YUNAS METAL WORKS PVT LTD 5007 SIDCO CONSTRUCTION LTD. 2008 ARSHAD CORPORATION (PVT)LTD 3009 UNIVERSAL BRUSHWARES (PVT) LTD. 10010 ENVICRETE LTD. 50011 TAURUS SECURITIES LTD. 60012 WORLD TRADE CENTRE (PVT) LTD. 50013 M/S YUNAS ELECTRONICS AJK, PVT LTD 40014 YUNAS ELECTRONICS PAK (PVT) LTD 40015 EVERGREEN TRADERS 10016 SHADAB ENTER PRISES 10017 KHAQAN NAJEEB (PVT) SERVICE 20018 FIRST CAPITAL SECURITIES CORPORATION LTD 10019 NAZIR, SINDH HIGH COURT, REF.1674/1997 11,50020 IHSAN SONS (PVT) LTD. 50021 Y.S.SECURITIES AND SERVICES (PVT) LTD. 10022 AQEEL KARIM DHEDHI SECURITIES (PVT) LTD. 30023 Y.S. SECURITIES & SREVICES (PVT) LTD 70024 PRUDENTIAL SECURITIES LTD. 10025 PRUDENTIALL SECURITIES LTD. 10026 AL MAL SECURITIES & SERVICES LTD 10027 SAKHAWAT HUSSAIN BUKHARI (PVT)LTD 10028 FINEX SECURITIES LTD 10029 PRUDENTIAL SECURITIES.LTD 10030 KHADIM ALI SHAH BUKHARI & CO. LTD. 10031 INDOSUES W.I. CARR SECURITIES PVT. LTD. 30032 PREMIER CAPITAL MANAGEMENT PVT. LTD. 30033 FAWAD YOUSUF SECURITIES (PVT) LTD. 10034 ACE SECURTIES (PVT) LTD. 10035 MARS SECURITIES (PVT) LTD. 1,00036 ADAMJEE AUTOMOTIVE (PVT) LIMITED 2,00037 RAHAT SECURITIES LTD. 30038 ZAHID LATIF KHAN SECURITIES (PVT) LTD. 100


S.No Name Holding

39 KHADIM ALI SHAH BUKHARI & CO. LIMITED 10040 ZILLION CAPITAL SECURITIES (PVT) LTD. 10041 M.S. SECURITIES (PVT) LTD. 20042 ZAFAR SECURITIES (PVT) LTD. 20043 IGI FINEX SECURITIES LIMITED 144 Y.S. SECURITIES & SERVICES (PRIVATE) LIMITED 20,00045 TRUSTEE- TREET COR. LTD EMP. PROVIDENT FUND 10,00046 TRUSTEE- TREET CORPORATION LIMITED G.E. GRATUITY 10,00047 CAPITAL VISION SECURITIES (PVT) LIMITED 10048 KASB SECURITIES LIMITED 407,35549 TRUSTEES KUEHNE & NAGEL PAKISTAN SPF 20,00050 CRAFTSMAN (PVT) LTD (8095) 75,80051 AMIR FINE EXPORTS (PVT.) LTD. 37,50052 PAK KUWAIT TEXTILES LIMITED 30,00053 MOOSA,NOOR MOHAMMAD,SHAHZADA&CO.PVT.LTD 31,00054 TAURUS SECURITIES LIMITED 90055 TRUSTEE LEVER BROTHERS EMPLOYEES 100,00056 ELIXIR SECURITIES PAKISTAN (PVT.) LTD. 337,23757 SARDAR MOHAMMAD ASHRAF D BALUCH PVT. LTD 5,50058 TRUSTEES D.G.KHAN CEMENT CO. LTD. EMPLOYEES PROVIDENT FUND 240,00059 TRUSTEE, H.J.BEHRANA PARSI FIRE TEMPLE T 25,00060 TRUSTEES, SETH H.M. KHAJURINA TECH.TR.FN 2,00061 M.C. MAMA PARSI GIRL`S SEC. SCHOOL 40,00062 ZOROASTRIAN CO-OP. HOUSING SOCIETY LTD. 7,50063 STANDARD BEARER SECURITIES LIMITED 1,10064 TRUSTEE-MCB EMPLOYEES PENSION FUND 200,00065 FIRST CAPITAL EQUITIES LIMITED 34,00066 SHAFFI SECURITIES (PVT) LIMITED 17,15167 PRUDENTIAL SECURITIES LIMITED 20,40068 PRUDENTIAL SECURITIES LIMITED 20069 TRUSTEE-CRESCENT LEASING GRATUITY FUND 15,00070 MOOSANI SECURITIES (PVT) LTD. 124,57371 ABBASI & COMPANY (PRIVATE) LIMITED 10072 M/S S. FAZALILAHI & SONS (PVT) LTD 100,50073 M/S IHSAN INDUSTRIES (PVT) LIMITED 3,00074 CNPS ASSOCIAT (PVT) LTD 170,00075 LUCKY ENERGY (PVT) LTD. 50,00076 HASHOO HOLDINGS (PVT) LTD 200,00077 PREMIER FASHIONS (PVT) LTD 10,00078 SIZA (PRIVATE) LIMITED 230,00079 THE AGA KHAN UNIVERSITY FOUNDATION 475,00080 MOHAMAD AMIN BROS (PVT) LIMITED 13,00081 SITARA CHEMICAL INDUSTRIES LTD. 50,00082 EMPLOYEE’S OLD-AGE BENEFITS INSTITUTION 55,893,800

S.No Name Holding

83 TRUSTEES NRL OFFICERS PROVIDENT FUND 14,00084 BULK MANAGEMENT PAKISTAN (PVT.) LTD. 405,50085 SHAKOO (PVT) LTD. 50,00086 PAK GREASE MFG.(PVT) LTD. 70,50087 TRUSTEES ALOO&MINOCHER DINSHAW CHR.TRUST 40,00088 TRUSTEES SAEEDA AMIN WAKF 125,00089 TRUSTEES MOHAMAD AMIN WAKF ESTATE 150,00090 ISMAILIA YOUTH SERVICES 70,00091 JUPITER TEXTILE MILLS (PVT) LTD 50,00092 TRUSTEES AL-MAL GROUP STAFF PROVIDENT FN 5,00093 PAKISTAN HOUSE INTERNATIONAL LTD 142,00094 TRUSTEES ASIATIC P.R.NETWORK(PVT) EMP PF 2,00095 TRUSTEES OF FAROUKH&ROSHEN KARANI TRUST 20,00096 TRUSTEES ARTAL RESTAURANTS INT’L EMP P.F 2,00097 TRUSTEES WORLD MEMON FND.COMM.CEN.TRUST 50,00098 BANDENAWAZ (PVT) LTD 19,00099 TRUSTEES OF DHORAJI HOUSING&RELIEF TRUST 165,000100 AMIR FINE EXPORTS (PVT) LTD. 162,500101 TRUSTEES CHEVRON PAKISTAN LIMITED MNGT. STAFF PROVIDENT FUND 100,000102 MANG.COM.KARACHI ZARTHOSTI BANU MANDAL 17,000103 TRUSTEES HOMMIE&JAMSHED NUSSERWANJEE C.T 236,000104 TRUSTEES AKHTAR & HASAN(PVT)LTD.EMP.P.F 35,100105 AL NOOR MODARABA MANAGEMENT (PVT) LTD. 10,000106 TRUSTEES ADAMJEE ENTERPRISES STAFF P.F 2,000107 TRUSTEES ENGRO CORPORATION LTD. P.F 730,900108 TRUSTEES PERAC MNG&SUPERVISORY S.PEN FND 2,310109 TRUSTEES DUKE OF EDINBURGH’S AWARD F.PAK 5,000110 TRUSTEES QAMARUNNISA SHARIF WEL.TRUST 20,000111 TRUSTEES OF HAJI MOHAMMED WELFARE TRUST 150,000112 TRUSTEES MCB EMPLOYEES FOUNDATION 100,000113 PAKISTAN SERVICES LTD. 350,000114 PRINTEK (PRIVATE) LIMITED 3,000115 RELIANCE MERCHANDISING CORP (PVT) LTD 20,000116 TRUSTEES ENGRO CORPORATION LTD,G.F 305,000117 TRUSTEES ENGRO CORPORATION LTD.MPT EMP DEF.CONT P.FUND 715,000118 ASLAM SONS (PVT) LTD 186,569119 TRUSTEE GUL AHMED TEXTILE MILLS LTD EMP P.F 4,500120 TRUSTEES OF STATE OIL COMPANY LTD.EMPLOYEES P.F 25,000121 TRUSTEES OF GREAVES PAKISTAN (PVT) LTD. EMP PROVIDENT FUND 10,000122 MARIAM ALI MUHAMMAD TABBA FOUNDATION 50,000123 MAGNUS INVESTMENT ADVISORS LIMITED 100124 TRUSTEE NATIONAL REFINERY LTD. MANAGEMENT STAFF PENSION FUND 42,890125 POLYPROPYLENE PRODUCTS LTD 229,400126 TRUSTEE OF HAJI MOHAMMED BENEVOLENT TRUST 200,000



S.No Name Holding

127 FIRHAJ FOOTWEAR (PVT) LTD 20,000128 AMANAH INVESTMENTS LIMITED 10,000129 TRUSTEES OF ENGRO CHEMICAL PAK LTD NON-MPT EMP GRATUITY FUND 88,063130 TRUSTEES INDUS MOTOR COMPANY LTD. EMPLOYEES PROVIDENT FUND 50,000131 TRUSTEES INDUS MOTOR COMPANY LTD. EMPLOYEES PENSION FUND 50,000132 S.H. BUKHARI SECURITIES (PVT) LIMITED 200133 ZAHID LATIF KHAN SECURITIES (PVT) LTD. 200134 REPUBLIC SECURITIES LIMITED 1,500135 VOHRAH ENGINEERING (PVT.) LIMITED 2,500136 MANAGING COMMITTEE CRESCENT FOUNDATION 129,500137 NH SECURITIES (PVT) LIMITED. 10,000138 TRUSTEES GHANI GLASS LTD EMPLOYEES PROVIDENT FUND 10,000139 PROGRESSIVE INVESTMENT MANAGEMENT (PVT) LTD. 5,500140 EXCEL SECURITIES (PVT.) LTD. 5,300141 DARSON SECURITIES (PRIVATE) LIMITED 3,881142 ACE SECURITIES (PVT.) LIMITED 69,393143 PEARL SECURITIES LIMITED 300,000144 PEARL SECURITIES LIMITED 1,000,000145 TRUSTEE- KHYBER PAKHTUNKHWA -PENSION FUND 180,000146 HIGHLINK CAPITAL (PVT) LTD 20,300147 CAPITAL VISION SECURITIES PVT LIMITED 2,000148 EXCEL SECURITIES (PRIVATE) LIMITED 2,200149 TOTAL SECURITIES LIMITED 1,000150 ATLAS TEXTILE (PRIVATE) LIMITED 300151 TRUSTEES RESOURCE DEVELOPMENT FOUNDATION 5,000152 RAFI SECURITIES (PRIVATE) LIMITED 1153 FAIR EDGE SECURITIES (PVT) LTD 500154 TRUSTEE-GHANI GLASS EMPLOYEE PROVIDENT FUND 10,000155 MOTIWALA SECURITIES (PVT) LTD. 1,208,600156 HK SECURITIES (PVT.) LTD 9,000157 ORIENTAL SECURITIES (PVT) LTD. 300158 A.H.K.D. SECURITES (PVT) LTD. 1,000159 SAKARWALA CAPITAL SECURITIES (PVT)LTD. 73,000160 ADAM SECURITIES (PVT) LTD. 2,500161 PRUDENTIAL DISCOUNT & GUARANTEE HOUSE LIMITED 10,000162 THE KARACHI STOCK EXC(G)LTD-FUTURE CONT. 2,000163 DOSSLANI’S SECURITIES (PVT) LIMITED 111,000164 CAPITAL VISION SECURITIES (PVT) LTD. 24,400165 NATIONAL LOGISTIC CELL 500,000166 SHAKIL EXPRESS (PVT) LTD 1,000167 TRUSTEES OF GENERAL RAHIM KHAN TRUST(GRK TRUST) 200168 TRUSTEES OF ARL GENRAL STAFF PROVIDENT FUND 95,000169 TRUSTEES OF ARL STAFF PROVIDENT FUND 30,000170 TRUSTEES OF ARL MANAGEMENT STAFF PENSION FUND 100,000171 INVEST AND FINANCE SECURITIES LIMITED 70,000

S.No Name Holding

172 AMCAP SECURITIES (PVT) LTD 9,500173 STOCK VISION (PVT.) LTD. 3,500174 AKHAI SECURITIES (PRIVATE) LIMITED 29,000175 DJM SECURITIES (PRIVATE) LIMITED 400,000176 AMPLE SECURITIES (PRIVATE) LIMITED 50,000177 LIVE SECURITIES LIMITED 417,107178 TIME SECURITIES (PVT.) LTD. 65,100179 MAAN SECURITIES (PRIVATE) LIMITED 41,700180 FAIR EDGE SECURITIES (PRIVATE) LIMITED 200181 INVESTFORUM (PRIVATE) LIMITED - SMC 3,000182 B & B SECURITIES (PRIVATE) LIMITED 200183 STOCK MASTER SECURITIES (PRIVATE) LTD. 29,394184 FIRST NATIONAL EQUITIES LIMITED 50,369185 THE JINNAH SOCIETY 25,000186 STOCK STREET (PRIVATE) LIMITED 900187 ABM SECURITIES (PVT) LIMITED 800188 ADEEL & NADEEM SECURITIES (PVT) LTD. 47,000189 AFIC SECURITIES (PRIVATE) LIMITED 200190 PNO WASTE MANAGEMENT (PVT.) LIMITED 50,000191 AAA SECURITIES (PRIVATE) LIMITED 400192 FAITH SECURITIES (PRIVATE) LIMITED 50,000193 GENERAL INVESTMENT & SECURITIES (PVT.) LTD 2,000194 TRUSTEE OVERSEAS PAKISTANIS PENSION TRUST 15,000195 HUM SECURITIES LIMITED 2,000196 UNITED CAPITAL SECURITIES PVT. LTD. 55,369197 A. H. M. SECURITIES (PRIVATE) LIMITED 15,001198 DARSON SECURITIES (PVT) LIMITED 150,358199 SIDDIQSONS DENIM MILLS LTD.STAFF PROVIDENT FUND 10,000200 AXIS GLOBAL LIMITED 315,051201 SAAO CAPITAL (PVT) LIMITED 5,000202 SINDH GAS (PVT) LIMITED 5,000203 MOHAMMAD MUNIR MOHAMMAD AHMED KHANANI SECURITIES (PVT.) LTD. 8,500204 SAFE SECURITIES (PVT) LTD. 13,600205 PROGRESIVE SECURITIES (PVT) LTD. 500206 MONEY LINE SECURITIES (PVT.) LIMITED 16,200207 SHALIMAR ESTATES CO-OPERATIVE HOUSING SOCIETY LIMITED 10,000208 GAZIPURA SECURITIES & SERVICES (PRIVATE) LIMITED 23,000209 RYK MILLS LIMITED 5,000210 AWJ SECURITIES (SMC-PRIVATE) LIMITED. 1,188211 PASHA SECURITIES (PVT) LTD. 3,400212 HK SECURITIES (PVT) LTD. 200213 MUHAMMAD AHMED NADEEM SECURITIES (SMC-PVT) LIMITED 4214 MAM SECURITIES (PVT) LIMITED 600215 ZHV SECURITIES (PVT) LIMITED 53,000216 MUHAMMAD BASHIR KASMANI SECURITIES (PVT) LTD. 2,000



S.No Name Holding

217 128 SECURITIES (PVT) LTD. 1,500218 M.R. SECURITIES (SMC-PVT) LTD. 246219 DR. ARSLAN RAZAQUE SECURITIES (SMC-PVT) LTD. 114,900220 AL-HAQ SECURITIES (PVT) LTD. 200221 ISMAIL ABDUL SHAKOOR SECURITIES (PRIVATE) LIMITED 600222 Y.H. SECURITIES (PVT.) LTD. 100,000223 KSR STOCK BROKERAGE (PVT) LTD. 100224 SNM SECURITIES (PVT) LTD. 2,350225 MSMANIAR FINANCIALS (PVT) LTD. 50,563226 PEARL CAPITAL MANAGEMENT (PRIVATE) LIMITED 7,800227 GPH SECURITIES (PVT.) LTD. 85,000228 MAK SECURITIES (PVT.) LTD. 100229 CHEN ONE STORES LIMITED 30,000230 TRUSTEE-PAK GUMS & CHEMICAL LTD EXCUTIVE STAFF PENSION FUND 10,500231 MAZHAR HUSSAIN SECURITIES (PVT) LTD 15,000232 PARADIGM FACTORS (PRIVATE) LIMITED 258,545233 TRUSTEE AL-NASEER CHARITABLE TRUST 20,000234 GUL DHAMI SECURITIES (PVT) LTD 20,000235 HAJI ABDUL SATTAR SECURITIES (PVT.) LIMITED 10,600236 M/S SHAFFI SECURITIES (PRIVATE) LIMITED 1,500237 FAIR DEAL SECURITIES (PVT.) LIMITED 2,200238 JSK SECURITIES LIMITED 1,000239 TRUSTEES LEINER PAK GELATINE LTD EMPLOYEES PROVIDENT FUND 24,500240 BABA EQUITIES (PVT) LTD. - MT 2,156241 TAURUS SECURITIES LIMITED - MT 1,000242 INVEST CAPITAL MARKETS LIMITED 100,357243 INVEST FORUM (SMC-PVT.) LIMITED 8,000

Total 71,212,282

8 GOVERNMENT OF PAKISTANS.No Name Holding

1 PRESIDENT OF PAKISTAN 5,6002 PRESIDENT OF PAKISTAN 3,9003 PRESIDENT OF PAKISTAN 2,974,680,0024 PRESIDENT OF PAKISTAN 1,570,3005 PRESIDENT OF PAKISTAN 196,387,991

Total 3,172,647,793

9 FOREIGN COMPANIESS.No Name Holding

1 GATES LIMITED 1,5002 BOSTON SAFE DEPOSIT & TRUST CO. 1003 MERRILL LYNCH INTERNATIONAL 21,8004 Citibank N.A., New York 7,199,8005 SOMERS NOMINEES (FAR EAST) LTD. 5006 STATE STREET BANK & TRUST CO. 6007 SOMERS NOMINEES (FAR EAST) LTD. 1008 BARING (GUERNSEY) LIMITED. 1,0009 ROYAL BANK OF SCOTLAND PLC U.K. 10010 NOMURA BANK (LUXEMBOURG) S.A. 10011 FLEDGELING NOMINEES INTERNATIONAL LTD. 10012 ASIAN CAPITAL HOLDINGS FUND. 50013 CREDIT LYONNAIS SECRITIES(SINGAPORE)PTE 30014 FIDUCIARY TRUST COMPANY INTERNATIONAL 5,00015 TEMPLETON DEVELOPING MARKETS TRUST 1,10016 MORGAN STANLEY BANK LUXEMBOURG 80017 CITIBANK N.A., NEW YORK 3,00018 UBL EXPORT PROCESSING ZONE BRANCH 150,00019 RO LIMITED (032985) 200,00020 EMIRATES INVESTMENT BANK PJSC 26,40021 STATE STREET BANK AND TRUST CO. 2,962,99522 THE BANK OF NEW YORK MELLON 1,425,49323 DEUTSCHE BANK LONDON GLOBAL EQUITIES 445,89824 DEUTSCHE BANK SECURITIES INC. 10025 THE BANK OF NEW YORK MELLON SA/NV 3,326,63126 THE BANK OF NEW YORK MELLON SA/NV 307,99227 EATON VANCE COLLECTIVE INV TRT FOR EMP BENEFIT PLANS 1,127,00028 THE WALT DISNEY CO RET PLAN MASTER TRUST 1,355,94829 VERMONT PENSION INVESTMENT COMMITTEE 608,30030 ACADIAN EMRG MARKETS EQUITY II FUND, LLC 1,730,42331 ING INTERNATIONAL SMALLCAP MULTI-MANAGER FUND 601,50032 CALIFORNIA PUBLIC EMP RTM SYT-STRUCTURED EMERGING MKT 447,11033 CALIFORNIA PUBLIC EMPLOYEES RTM SYT-FUNDAMENTAL EMRG MKT 809,41234 CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM-EMER MKT INDEX 992,07135 MORGAN STANLEY FRONTIER EMERGING MARKET FUND INC 11,063,53136 ACADIAN INTERNATIONAL ALL CAP FUND 442,06537 UNITED TECHNOLOGIES CORPORATION MASTER RETIREMENT TRUST 1,841,09938 UPS GROUP TRUST 705,86739 UNIVERSITY OF SOUTHERN CALIFORNIA 757,17540 EMERGING MARKETS EQUITY MANAGERS PTF 1 OFFSHORES MASTER LP 110,00041 EATON VANCE STRUCTURED EMERGING MARKETS FUND 2,792,70042 EATON VANCE TAX MANAGED EMERGING MARKETS FUND 3,237,50043 THE BOARD OF REGENTS OF THE UNIVERSITY OF TEXAS SYSTEM 4,545,76944 PPL SERVICES CORPORATION MASTER TRUST 130,000



S.No Name Holding

45 ACADIAN FRONTIER MARKETS EQUITY FUND 11,701,98446 ACADIAN ALL COUNTRY WORLD EX US FUND 2,502,61047 OHIO POLICE AND FIRE PENSION FUND 1,501,28548 THE BANK OF NEW YORK MELLON 585,99649 THE BANK OF NEW YORK MELLON 4,500,00050 THE BANK OF NEW YORK MELLON 551,26851 PENSION PROTECTION FUND 1,997,33952 TEACHER RETIREMENT SYSTEM OF TEXAS 1,220,50053 CORNELL UNIVERSITY 2,617,80054 THE NORTHERN TRUST COMPANY 1,10055 CLSA SINGAPORE PTE LTD - CLIENT ACCOUNT 2,50056 MERRILL LYNCH INTERNATIONAL 186,00457 EMIRATES NATIONAL INVESTMENT CO. LLC 3,084,05058 DUBAI ISLAMIC BANK PJSC 3,347,60059 LEGAL & GENERAL ASSURANCE (PENSIONS MANAGEMENT) LTD 1,227,80060 THE ROYAL BANK OF SCOTLAND N.V. 175,01461 J.P.MORGAN WHITEFRIARS INC. 11,047,60062 WILMINGTON INTERNATIONAL EQUITY FUND SELECT, L.P-FM 2 80,36663 THE DEPARTMENT OF THE STATE TREASURER OF MASSACHUSETTS 1,90064 ADVANCE SERIES TRUST-AST PARAMETRIC EMERGING MARKETS EQUITY 1,307,70065 WILMINGTON MULTI-MANAGER INTERNATIONAL FUND 135,00066 FNIL A/C J.P.MORGAN SECURITIES (ASIA PACIFIC) LTD CLIENT A/C 2,00067 THE NORTHERN TRUST COMPANY 4,502,53568 THE NORTHERN TRUST COMPANY 384,49869 THE NORTHERN TRUST COMPANY 32,17870 BNP PARIBAS ARBITRAGE 479,32871 JP MORGAN WHITEFRIARS INC 650,60072 FUTURE FUND BOARD OF GUARDIANS 897,00073 STICHTING PGGM DEPOSITARY 8,472,67574 BMA FUNDS LIMITED 1,052,89775 IBM DIVERSIFIED GLOBAL EQUITY FUND 3,831,26576 CREDIT SUISSE (HK) LTD (368-6) 124,00077 UNION BANK OF CALIFORNIA GLOBAL (460-1) 3,784,18178 JPMORGAN CHASE BANK (484-2) 21,433,98479 MORGAN STANLEY & CO INT’L PLC [644-1] 1,304,32980 WORLD INVESTMENT OPPORTUNITIES FUND.[1045-1] 874,80081 CACEIS BANK LUXEMBOURG (1100-6) 2,700,00082 MS ASST. MGT. S.A. ACTING ON BEHALF OF MS GALAXY FND(1109-0) 31,310,20883 MORGAN STANLEY MAURITIUS COMPANY LIMITED(1130-1) 6,673,08984 THE NAMURA TRUST AND BANKING CO. LIMITED (1153-5) 324,73585 SEI INSTITUTIONAL INVESTMENT TRUST [1395-1] 1,439,60086 GOLDMAN SACHS INVESTMENTS (MAURITIUS) I LIMITED [1400-5] 250,73487 EATON VANCE EMERALD FUNDS PLC [1401-2] 1,637,45988 PUBLIC EMP RETIREMENT ASSOCIATION OF NEW MEXICO [1404-0] 84,50089 THE NOMURA TRUST AND BANKING CO., LTD. [1444-5] 200,000

S.No Name Holding

90 TRUSTEES OF DIAMOND INVESTMENT & RETIREMENT PLAN TRUST 16,50091 HABIB BANK AG ZURICH, ZURICH,SWITZERLAND 1,613,80092 HABIB BANK AG ZURICH, LONDON 1,179,50093 HABIB BANK AG ZURICH, DEIRA DUBAI 8,670,43494 KAYMO TRADING (FZE) 49,00095 MONTAGUE INTERNATIONAL TRADING LTD. 23,50096 HABIBSONS BANK LTD - CLIENT ACCOUNT 10,225,000

Total 211,379,124

10 HOLDING MORE THAN 10%S.No Name Holding

1 ETISALAT INTERNATIONAL PAKISTAN (LLC) - FIRST CDC ACCOUNT 918,190,4762 ETISALAT INTERNATIONAL PAKISTAN (LLC) SECOND CDC ACCOUNT 407,809,524

Total 1,326,000,000



Notice of 16th Annual General Meeting

Notice is hereby given that the 16th Annual General Meeting of Pakistan Telecommunication Company Limited will be held on Wednesday, 19th October, 2011 at 10:30 a.m. at the Islamabad Serena Hotel, Sheesh Mahal Hall, Khayaban-e-Suhrwardi, Sector G-5, Opposite Convention Center, Islamabad, to transact the following business:

Ordinary Business

1. To confirm the minutes of the last AGM held on 28th October, 2010.

2. To receive, consider and adopt the Audited Accounts for the year ended 30th June, 2011, together with the Auditors’ and Directors’ reports.

3. To approve the interim cash dividend of 17.5% (Rs. 1.75 per share) already declared and paid for the year ended 30th June, 2011.

4. To appoint Auditors for the financial year ending 30th June, 2012 and to fix their remuneration. The retiring Auditors M/s A. F. Ferguson & Co., Chartered Accountants and M/s Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants, being eligible, offer themselves for reappointment.

Special Business

5. To consider & if deemed appropriate, pass the following resolution with or without amendment:

“Resolved that the Board of Directors of the Company be and are hereby authorized

to dispose of the Company’s undertaking in the Maskatiya Communications (Pvt) Limited (MAXCOM) (a wholly owned subsidiary of the Company) by way of voluntary winding up.”

6. To transact any other business with the permission of the Chair.

The statement of special business as required under section 160 (1) (b) of the Companies Ordinance, 1984 is attached with this notice.

By order of the Board

Dated: September 07, 2011. (Farah Qamar)Islamabad Company Secretary

Notes:1. Any member of the Company entitled to attend and vote at this meeting may

appoint any person as his/her proxy to attend and vote instead of him/her. Proxies in order to be effective must be received by the Company at the Registered Office not less than 48 hours before the time fixed for holding the meeting.

2. The Share Transfer Books of the Company will remain closed from 12th October, 2011 to 19th October, 2011 (both days inclusive).

3. Members are requested to notify any change in address immediately to our Shares Registrar, M/s FAMCO Associates (Pvt.) Limited at Ground Floor, State Life Building No. 1-A, I.I. Chandigarh Road, Karachi.

4. Any individual Beneficial Owner of CDC, entitled to vote at this meeting, must bring his/her original CNIC with him/her to prove his/her identity, and in case of proxy, a copy of shareholder’s attested CNIC must be attached with the proxy form. Representatives of corporate members should bring the usual documents required for such purpose.


Statement under section 160(1) (b) of the Companies Ordinance, 1984

This statement sets out the material facts concerning special business to be transacted at the 16th Annual General Meeting of Pakistan Telecommunication Company Limited to be held on October 19, 2011.

The proposed special resolution regarding closure of Maskatiya Communication Company (Private) Limited (MAXCOM), a wholly owned subsidiary of PTCL, through voluntary winding up is necessitated by the following factors:

1. Market demand for convergence of Internet with voice and video has resulted in non-viability of the standalone ISP and internet business in Pakistan. MAXCOM, which only has the internet and data license and operates as an Internet and ISP business, would therefore have a non-viable future as a separate business entity.

2. Having a subsidiary i.e. MAXCOM that operates as a separate business entity offering broadband services only, would not only result in competition between PTCL and its internet subsidiary and, as such, duplication of CAPEX and OPEX for the PTCL group, but would also cause confusion and duplication for its customers as the parent Company would be offering same services (and many more) that the subsidiary is offering on standalone basis.

3. MAXCOM provides high skilled customer care service through the dedicated human resource trained in this respect. The technical integration will provide PTCL with the opportunity to gain from said experience of MAXCOM thus helping to improve overall customer care of PTCL.

Background

MAXCOM, a broadband internet service provider in the cities of Karachi and Hyderabad and as such having less than 1% market share in Pakistan, was acquired in 2010 by PTCL - the largest broadband service provider of Pakistan through purchase of 100% shareholding of MAXCOM. Subsequent to the acquisition, it was decided by PTCL as well as MAXCOM to merge operations of both the entities in order to offer better and bundled services of voice, data and IPTV to MAXCOM customers on the same basis as are being offered to PTCL’s customers. Accordingly in 2011, MAXCOM was voluntarily wound up after completing the due legal process and its net assets worth Rs. 68 million were transferred to PTCL books.

Shareholders’ Value

With the liquidation of MAXCOM and transfer of its net assets to PTCL, the MAXCOM customers, employees and infrastructure stand duly integrated in PTCL thus MAXCOM ceasing to act as an independent subsidiary of PTCL. The said integration will bring value addition for PTCL group in terms of savings in CAPEX and OPEX as well as improved customer care.

The Directors of the Company have no direct or indirect interest in the special business.


Form

of P

roxy

Paki

stan

Tel

ecom

mun

icat

ion

Com

pany

Lim

ited

I/we

of bein

g a

mem

ber o

f Pak

ista

n Te

leco

mm

unic

atio

n C

ompa

ny L

imite

d, a

nd a

hol

der o

f

Ord

inar

y Sh

ares

as

per S

hare

Reg

iste

r Fol

io N

o.

and

/ or C

DC

Par

ticip

ant I

.D. N

o.

her

eby

appo

int M

r./M

rs./M

iss

of

as m

y/ou

r pro

xy to

vot

e fo

r me/

us a

nd o

n m

y/ou

r beh

alf a

t the

16th

Ann

ual G

ener

al M

eetin

g of

the

Com

pany

to

be h

eld

on W

edne

sday

, O

ctob

er 1

9, 2

011

at 1

0:30

a.m

. an

d at

any

adjo

urnm

ent t

here

of.

Sign

ed th

is__

____

____

____

____

____

___d

ay o

f___

____

____

____

____

____

__20

11.

For b

enef

icia

l ow

ners

as

per C

DC

Lis

t

Not

es:

i) Th

e pr

oxy

need

not

be

a m

embe

r of t

he

Com

pany

.

ii)

The

inst

rum

ent a

ppoi

ntin

g a

prox

y m

ust b

e du

ly

stam

ped,

sig

ned

and

depo

site

d at

the

offic

e of

th

e C

ompa

ny S

ecre

tary

PTC

L, H

eadq

uart

ers,

Se

ctor

G-8

/4, I

slam

abad

, not

less

than

48

hour

s be

fore

the

time

fixed

for h

oldi

ng th

e m

eetin

g.

iii)

Sign

atur

e of

th

e ap

poin

ting

mem

ber

shou

ld

mat

ch

with

hi

s/he

r sp

ecim

en

sign

atur

e re

gist

ered

with

the

Com

pany

.

1.

Witn

ess

Si

gnat

ure

N

ame:

A

ddre

ss:

C

NIC

No.

or

pas

spor

t No.

2.

Witn

ess

Si

gnat

ure

N

ame:

A

ddre

ss:

C

NIC

No.

or

pas

spor

t No.

Sign

atur

eon

Rs.

5/-

Rev

enue

Stam

p

iv)

If a

prox

y is

gr

ante

d by

a

mem

ber

who

ha

s de

posi

ted

his

/ he

r sh

ares

int

o C

entra

l D

epos

itory

Com

pany

of

Paki

stan

Lim

ited,

the

pr

oxy

mus

t be

acc

ompa

nied

with

par

ticip

ant’s

ID

num

ber

and

acco

unt/s

ub-a

ccou

nt n

umbe

r al

ong

with

atte

sted

cop

ies

of th

e C

ompu

teriz

ed

Nat

iona

l Id

entit

y C

ard

(CN

IC)

or t

he P

assp

ort

of

the

bene

ficia

l ow

ner.

Rep

rese

ntat

ives

of

co

rpor

ate

mem

bers

sh

ould

br

ing

the

usua

l do

cum

ents

requ

ired

for s

uch

purp

ose.

To,

The

Com

pany

Sec

reta

ry,

Paki

stan

Tel

ecom

mun

icat

ion

Com

pany

Lim

ited

PTC

L H

eadq

uart

ers,

Sec

tor G

-8/4

,Is

lam

abad

-440

00

AFF

IXC

OR

REC

TPO

STA

GE

consolidated financial statements - ptcl › images › financial_files › ... · the management...

Documents