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Annual Report 2024
ABOUT THE REPORT
The Management of the Security Papers Limited (herein after referred to as ''the Company'' or ''SPL'') is pleased to present its Annual Report for the year ended June 30, 2024. We have adopted the International Integrated Reporting Framework in preparation of this Annual Report to provide readers understanding of the strategic thinking that propels SPL ahead. This report integrates the following sections:
- Organizational Overview and External Environment
- Chairman's Reviews
- Directors' Report
- Report of the Audit Committee
- Statement of Compliance with 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
- Future Outlook
- Sustainability Report
We will continue to review our reporting approach to ensure they meet best practice reporting standards and the expectations of our stakeholders and provide visibility on how we create sustainable value for the communities we serve, to ensure that readers are able to correctly understand these activities. Such reports help to increase investors' confidence in the corporate practices adopted by the organization.
Scope and Boundary
This report is a concise communication about how the
Company's strategy, governance, performance and prospects, in the context of its external environment, lead to the creation, preservation or erosion of value over the short, medium and long term. Our Report covers the period from July 1, 2023 to June 30, 2024 and any material event subsequent to year end 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, 2023. 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.
The Annual Report theme represents the landscape / memorial buildings across Pakistan printed on banknotes.
External Assurance / Review
Description of the Report
Review Report on the Statement of Compliance with the Listed | External Reviews / Assurances |
Companies (Code of Corporate Governance) Regulations, 2019 | PwC, A.F. Ferguson & Co. Chartered Accountants |
Independent Auditor's Report on the Audit of Financial Statements | PwC, A.F. Ferguson & Co. Chartered Accountants |
Independent External Review of Sustainability Report | Damsel Consulting (Pvt.) Ltd. |
Material Topics
Table of
Contents
04
Organizational Overview
and External Environment
55
Governance
83
Strategy and
Resource Allocation
91
Risk Management
101
105
Analysis of Financial
Information
127
Financial Statements
185
Future Outlook
189
Sustainability and Corporate
Social Responsibility
257
Striving for Excellence | Stakeholders Engagement |
in Corporate Reporting | and Relationship |
Organizational
Overview and
External
Environment
- Company Profile
- Product Portfolio
- Geographical Presence
- How We Evolved
10 History of Major Events During the Year
- Vision
- Mission
- Core Values
16 Company Wide Organizational Chart
- Company Information
- Board of Directors
- Directors' Profile
- Chairman's Review
- Surpassing the Best
- Directors' Report - English
- Directors' Report - Urdu
- Corporate Awards History
- Our Business Model
- SWOT Analysis
-
Significant Factors Affecting External
Environment and The Company's Response
- Value Chain Analysis
- Competitive Landscape and Market Positioning
Organizational Overview and External Environment
THE COMPANY PROFILE
Security Papers Limited (SPL) was incorporated in 1965 as a Private Limited Company and became a Public Limited Company in 1967 with the vision to be a recognized and accepted as a Security Paper Producing Organization providing the highest quality paper with numerous security features to its customers. The Company started its commercial production in 1969.
The new state-of-the-art Paper Machine (PM-2) was commissioned in 2003. The PM-2 is producing high-quality specialized Banknotes and other Security Paper of international standard with custom made security features including 3-dimensional tonal variation watermarks and numerous other counterfeit deterrence capabilities. Due to its strategic nature of operations, the Company has been classified as Catagory 1A (KPID) Key Point Installation.
Principal Business Activity
Security Papers Limited is a national strategic industrial organization engaged in the business of manufacturing security paper for Banknotes and Other Security Paper products such as Prize Bonds, Defense Savings Certificates, Non-Judicial Stamp Papers, Passport Papers, Cheque Book, Certificate for Educational Boards, Degree for Universities and Ballot Paper.
The production process primarily involves local input of cotton comber and water as raw materials. The Pakistan Security Printing Corporation (Pvt.) Limited (PSPC) is the main customer of SPL. Over the years, the Company has grown substantially and is expanding its production capacities to cater to the ever-growing requirements for security paper products. SPL strives to remain an efficient and low-cost producer of security paper for its customers. To meet current and future technological challenges, SPL has been regularly investing in upgrading its manufacturing facilities to ensure continuous supply of high-quality Banknotes and other security papers to its customers.
Being self-reliant, the Company is also saving a substantial amount of foreign exchange, which would have been otherwise required for the import of such sensitive paper. SPL has been gradually enhancing the paper production capacity which has increased from 2,500 tons to 4,500 tons, extendable up to 5,000 tons per annum.
SPL Annual Report 2024 | 5 |
PRODUCT PORTFOLIO
Banknote
Paper
01
Ballot Paper
02
03
04
Passport
Paper
Degree and Educational
Rs.
Prize Bond
Paper
05
Paper
Parchment
Paper
06
07
Non-Judicial Stamp Paper
08
Cheque
Paper
6 SPL Annual Report 2024
Organizational Overview and External Environment
GEOGRAPHICAL PRESENCE
- Security Papers Limited is a strategic Company engaged in the business of manufacturing security paper for Banknotes and Other Security Paper products.
- The Company head office and manufacturing facility is situated in Karachi, Pakistan.
- The geographical presence of its customers are Karachi, Lahore, Islamabad, Gujranwala, Faisalabad, Peshawar and other major cities of the country.
SPL Annual Report 2024 | 7 |
HOW WE EVOLVED
8 SPL Annual Report 2024
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