Pakistan Oxygen : Transmission of Annual Report for the Year Ended December 31, 2021

A COMPANY MOVING FORWARD

Pakistan Oxygen is a market leader in industrial and medical gases, medical engineering and pipeline design services, medical equipment, and welding products along with associated solutions. The Company has an 85-years' legacy of trust, quality, and reliability.

To accelerate growth, the Company's Board of Directors has approved significant capital investments in new plants and machinery. This is testament to our commitment towards expanding our production capabilities and footprint across the country. New projects, nearing commissioning, include Pakistan's largest and most advanced Air Separation Unit at Karachi. Work on the Company's fifth Air Separation Unit has also commenced in the KPK province. With these expansions, the Company is poised to more than double its production capacity of industrial and medical gases. A new state-of-the-art electrodes manufacturing plant is also nearing completion. These enhanced manufacturing capabilities will help us fulfill our promise of reliable supply of high quality products and services to our customers.

The talented pool of people working at Pakistan Oxygen is its greatest asset. Dedicated professionals work round-the-clock to enhance customer's value-chains, exploring ideas and new gas applications to support customer's growth and efficiency ambitions. Banking on the strength and resilience of our people and growing infrastructure, we are poised for unprecedented growth because we are "A Company Moving Forward".

YEAR AT A GLANCE

December 31, 2021

December 31, 2020

(Rupees in '000)

Net sales	7,005,454	5,545,137
Cost of sales	(5,645,005)	(4,441,568)
Gross profit	1,360,449	1,103,569
Distribution and marketing expenses	(302,261)	(249,234)
Administrative expenses	(265,258)	(245,902)
Other operating expenses	(76,167)	(55,423)
(643,686)	(550,559)
Operating profit before other income	716,763	553,010
Other income	36,059	63,296
Operating profit	752,822	616,306
Finance cost	(119,317)	(163,589)
Profit before taxation	633,505	452,717
Taxation	(182,401)	(106,436)
Profit for the year	451,104	346,281
(Restated)
Earnings per share - basic and diluted (Rupees)	9.62	7.39
Total Number of employees at year end	151	143

CONTENTS

Our Legacy 04

Vision and Mission 05

Code of Ethics 05

Corporate Values 07

Moving forward through the brilliance of our people 09

Key facilities around Pakistan 12

Moving forward through investments in new plants 13

Leading gases applications and solutions 14

Moving forward through innovation 17

Prism of possibilities 18

Moving forward through an expanded product offering 21

Sustainability program at Pakistan Oxygen 22

Products and services 24

Company information 25

Profile of the Directors 26

Chairman's review report (English) 32

Chairman's review report (Urdu) 35

Directors' report (English) 36

Directors' report (Urdu) 47

Management Team 48

Corporate Governance 49

Statement of Compliance with the Code of Corporate Governance 55

Review report to the members on Statement of Compliance 57

Ten-year financial review 58

Vertical and horizontal analysis 60

Key financial data 62

Statement of value added 63

Auditors' report 64

Statement of financial position 70

Statement of profit or loss 71

Statement of comprehensive income 72

Statement of cash flows 73

Statement of changes in equity 74

Notes to the financial statements 75

BOC Pakistan (Private) Limited 114

Shareholders' information (English) 115

Shareholders' information (Urdu) 116

Pattern of shareholding 117

Categories of shareholders 118

Notice of AGM (English) 119

Notice of AGM (Urdu) 124 Form of proxy (English)

Form of proxy (Urdu)