Download - Siemens Pakistan

24 Directors’ Report
Dear Shareholders
The directors are pleased to present the Annual Report and the audited financial statements for the year
ended September 30, 2008 together with Auditors' report thereon.
Despite adverse economic conditions globally and locally throughout the year, your company remained
innovative and achieved outstanding business successes. The performance of your company was once
again the best ever and the targets set by the board were over achieved. Apart from focus on our
business, the board kept a close look and remained deeply involved in the formulation and
implementation of Siemens Compliance Program and Enterprise Risk Management. For this purpose the
board established board committees on both the subjects and getting quarterly feedback on the status
of these programs. All the business segments continued to focus on profitable growth keeping the
momentum which the company has achieved through operational excellence and good corporate
governance.
The company experienced tremendous growth in its high voltage sub station business in Dubai, UAE.
The branch operations in Afghanistan have also been successfully started with main focus on energy
and medical sector. The recent reorganization in the Siemens world would most probably result in more
opportunities for the company.
Overview of National Economy
Fiscal year 2007-08 has been a difficult year for Pakistan's economy. Several political and economic
events, both on domestic and external front, occurred unexpectedly. These events include: disturbed
political conditions; an unstable law and order situation; supply shocks; soaring oil, food and other
commodity prices; softening of external demand; and turmoil in the international financial market. All
these events have adversely affected the key macroeconomic fundamentals of Pakistan during the fiscal
year 2007-08.
According to the Economic Survey of Pakistan, country's manufacturing sector recorded the weakest
growth in a decade during the fiscal year 2007-08. Overall manufacturing posted a growth of 5.4%
during the first nine months of the current fiscal year against the target of 10.9% and 8.1% of last year.
Large scale manufacturing, accounting for 70% of overall manufacturing, registered a growth of 4.8% in
the current fiscal year 2007-08 against the target of 12.5% and year's achievement of 8.6%.
The new democratically elected government has inherited an economy which after a few years of
continuing high growth of around 6 to 7 percent is being threatened by domestic and global market
issues.
Business Review
Even with the carve out of communications segments last year and the adverse economic conditions,
this year proved one of the best years in the history of Siemens Pakistan for which the entire team
deserves applause. All our businesses continue to prosper and established a distinctive character, and
continue to provide an exceptional combination of value, convenience and service. And we are
confident that by moving forward with the market, we will build further on our successes over the
coming years.