Mohsin Annual Report-Final 1-91:Layout 1.qxd - Siemens Pakistan

10Directors’ Reportagriculture, manufacturing, and services have contributed to Pakistan's strong economic growth thisyear. The per capita income grew by 11 percent over last year which is indicative of steady improvementin average level of prosperity. In addition to the accelerated economic growth, robust efforts of theGovernment have also been pulling up the social indicators of the country. The literacy rate and healthindicators have shown significant improvement over last five years and unemployment and poverty levelshave declined as per statistics issued by the Government.Since past several years, the overall economic uplift in the country has undoubtedly given momentumto the business activities and reclaimed confidence of investors. The management of your Companyis determined to benefit from the economic upsurge of the country by enhancing its business portfolio.Performance and financial overview of the CompanyNew ordersNew orders of over Rs. 32,040 million have been received during the year - an all time high. Major contributionsinclude projects for building grid stations / substations for various customers locally as well asin Dubai, supply of power and distribution transformers to various power generation companies and SAPEnterprise Resource Planning (ERP) implementation for Pakistan Telecommunication Company Limited.Healthcare sector with their Digital Linear Accelerators for cancer treatment, Diesel Generating Sets particularlyfor the telecommunication sector and first ever order of SGT-400 Gas Turbine Compressor Trainsin Pakistan for Kandhkot Compression Project also played a significant role. Orders in hand at the yearend indicate a prosperous start to the new financial year.SalesThe turnover increased by 5.32% over previous year and stood at Rs 21,902 million mainly due to projectsbeing undertaken in the energy sector. The total turnover includes business of Rs 5,611 million conductedoutside Pakistan, especially in construction of substations, which grew by 20.46% over last year.ProfitProfit before tax of Rs 1,965 million increased by 30.25% over last year mainly because of higherturnover and improved margins. After tax profit aggregated to Rs 2,481 million which is 2.4 times higherthan corresponding year's after tax profit. This disproportionate increase in profit is attributable toprofit of Rs 1,498 million, net of income tax, on sale of discontinued COM business which has beenshown as separate line item.Capital investmentDuring the year, the Company strengthened its manufacturing capacity to respond to its growing business,especially in the energy sector. A new 220 KV Power Transformer manufacturing facility was commissionedduring the year. Further a Core Cutting machine was installed for Distribution Transformers.Rest of the capital investments were mainly undertaken on account of miscellaneous replacement, modernization,and capacity enhancement of plant and machinery, extension of office blocks and procurementof vehicles.Earning per shareThe earning per share for the year ended September 30, 2007 was Rs. 300.87 per share including profiton sale of COM Carrier and Enterprise Network businesses. The earning per share excluding this extraordinaryprofit amounted to Rs. 119.28 per share.