Security Papers : Transmission of Annual Report for Year Ended June 30, 2022 of Security Papers Limited

Building Trust

Table of

Contents

04 Organizational

Overview and

External Environment

65 Governance

93 Strategy and Resource Allocation

101	Risk Management

109	Striving for Excellence
	in Corporate Reporting

113

135

195

199

261

Analysis of

Financial

Information

Financial

Statements

Future Outlook

Sustainability

and Corporate

Social

Responsibility

Stakeholders

Relationship and

Engagement

ABOUT THE REPORT

The Annual Report 2022 (the Report) concisely depicts the general picture of the Company including how it creates value through its normal course of business in the context of its strategy, opportunities and risks and gives stakeholders a holistic view of the organization's financial and non-financial performance for the financial year ended June 30, 2022. The Report integrates the following sections:

• Organizational Overview and External Environment
• Chairman's Reviews
• Directors' Report
• Report of the Audit Committee
• Statement of Compliance with Code of Corporate Governance (CCG)
• Governance
• Sustainability Report and Corporate Social Responsibility
• Strategy and Resource Allocation
• Risk Management
• Striving for Excellence in Corporate Reporting
• Performance and Position
• Financial Statements
• Stakeholder Relationship and Engagement

Our Annual Report for 2022 aims to present itself as a consolidated document to assist our readers in assessing our business by providing information about state of affairs, performance and the outlook of SPL. It fairly addresses the material matters pertaining to the long-term sustainability of the Company and its integrated performance. This Report comprises of strategic and operational review by the Board of Directors which encompasses financial reviews and analyses, overview of governance, risk management and internal control frameworks.

Our value creating business model supported by the outputs, outcomes and impacts of various forms of capitals associated

Organizational Overview and External Environment

with business activities, and how we look forward towards business opportunities, has also been explained. The Board has endorsed and authorized the release of the report on September 29, 2022.

Scope and Boundary

Our Report covers the period from July 1, 2021 to June 30, 2022 and subsequent events up to the issuance of this report have also been explained in various sections of the Report. We aim to provide a balanced review of our performance, communicating relevant material information in a concise but comprehensive manner.

This Report has been prepared in compliance with the following frameworks:

• International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017 (the Act);
• Provision of and directives issued under the Companies
  Act, 2017.

Chairman's Review, Directors' Report, Audit Committee's Report, Report on Compliance of Code of Corporate Governance (CCG), Sustainability Report and other information contained in this Report have been structured in compliance with the requirements of Companies Act 2017, CCG, Listing Regulations of the Pakistan Stock Exchange (PSX) and other local and international good governance practices as promoted by ICAP/ICMAP, PSX, MAP etc. There have not been any significant changes to the scope, boundary and reporting basis since the last reporting date as of June 30, 2021. Where provisions of and directives issued under the Act differ from the IFRSs, the provisions of and directives issued under the Act have been followed.

External Assurance / Review

Description of the Report	External Reviews / Assurances
Review Report on the Statement of Compliance with the Listed	KPMG Taseer Hadi & Co., Chartered Accountants
Companies (Code of Corporate Governance) Regulations, 2019
Independent Auditor's Report on the Audit of Financial Statements	KPMG Taseer Hadi & Co., Chartered Accountants
Independent External Review of Sustainability Report	Damsel Consulting (Pvt.) Ltd.

Material Topics

Rs

Product quality	Water	Regulatory	Emissions	Economic	Climate &
and innovation		compliance		performance	energy

Occupational	Corporate	Employee	Corporate	Circular
health and safety	governance	development	social responsibility	economy
				SPL Annual Report 2022	3