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

14Directors’ ReportAppropriationsFollowing is the summary of appropriations made during the year.(Rupees in thousand)Retained earnings - October 01, 2006 806,588Net profit after taxation for the year ended September 30, 2007 2,481,322AppropriationsFinal dividend @ Rs.30 per share for the year ended September 30, 2006 (233,088)Interim dividend paid @ Rs.30 per share for the year ended September 30, 2007 (233,088)Transfer to General Reserve (200,000)Retained earnings - September 30, 2007 2,621,734Announcement of final dividend for 2007The Board has recommended a final cash dividend of Rs. 60 per share, subject to approval of the shareholdersof the Company in the Annual General Meeting. The effect of such declaration shall be reflectedin the next year's financial statements and appropriations. A sum of Rs. 1,000 million has also beenapproved by the Board for transfer to General Reserve.In addition to the above, the Company announced an interim cash dividend of Rs. 30 per share duringthe financial year, thus aggregating total payout for the year to Rs 90 per share.Contribution to National ExchequerThe Company contributed Rs 2,120 million (2006: Rs 1,971 million) to the National Exchequer in formof duties, income and sales taxes, and other levies. In recognition of the Company's contributiontowards state's revenue, a Large Tax Payers' Unit Award was also presented to it by the Central Board ofRevenue (CBR). Being a prominent tax payer of the country, the Company actively participates and givesvaluable inputs to CBR on various tax reforms.Investment in retirement benefitsThe value of investments, made by the staff retirement funds operated by the Company as per theirrespective audited financial statements are as follows:(Rupees in million)Provident Fund as on June 30, 2006 522.022Gratuity Fund as on September 30, 2006 109.131Compliance with the Code of Corporate GovernanceThe Company ensures that corporate governance principles remain to be integral part of its operating,decision-making and monitoring processes. The Company respects the rights of its shareholders andencourages their active participation in all general meetings of the Company. The Company also recognizesits legal obligations towards all of its legitimate stakeholders and business partners. The Boardcomprises of individuals who have all the necessary skills and understanding to deal with various businessissues and have ability to review and challenge management performance. A code of conductexists for Directors, Executives and other employees of the Company which binds them to demonstrateethical, honest and responsible attitude.