We, as directors of the Company, are pleased to present un-audited accounts of the Company for six months ended June 30, 2016.

Transcription

1 Half Yearly Report For the period Ended June 30, 2016

2 We, as directors of the Company, are pleased to present unaudited accounts of the Company for six months ended June 30, FINANCIAL RESULTS Net Sales Net Income after Tax Earnings per Share (Rs. Million) (Rs. Million) (Rupees) Six Months Ended June ,881 2, ,688 1, Overall economic environment in the country could not pick momentum and the country faced serious setback from decreasing exports and negative growth in Agriculture sector. Continuous slide in textile exports adversely impacted demand for our products from textile sector; thus led to impair our volume growth. The Company reinforced its efforts on cost saving initiatives and greatly benefited from better energy availability, effective management of controllable costs and optimizing operational efficiencies. By the grace of Almighty Allah, our Company has highly been successful in increasing profit margins and posted 40% growth in profitability over same period last year. BUSINESS REVIEW Rafhan Maize operations continued to exhibit strong resilience on strategic initiatives including but not limited to Continuous Improvement, rolling out Lean Six Sigma philosophies, optimizing process efficiencies, conserving energies and effectuating synergies in end to end chain system. Our operations strived hard to reap benefits from operational excellence, procurement & logistics excellence and optimization of support services across the whole operating network. Our operations do recognize the inflow of benefit from low crude oil prices in the international markets and easing of grain markets. We take pride and feel immensely satisfied from the initiative of passing significant cost reduction benefit to our highly revered customers by reducing the prices of our products in different phases. Confectionery, Paper & Corrugation and Pharmaceutical sectors led our growth streak and depicted better demand for our products. Demand from textile sector could not pick momentum and remained stagnant owing to diminishing textile exports. Our Company is fully cognizant of growing demand for new innovative products to reduce the cost for our customers and bring additional functionalities to their finished products. Our Company pays equal value to low margins byproduct portfolio and continued to serve poultry and livestock customers for greater value delivery. Increase in corn crop area and comparatively better crop yield helped to keep corn prices stable in the country. Corn is the major component of our cost and our Company extends invaluable efforts to facilitate and motivate farmers' communality for increasing corn production in the country. Our efforts brought great success and now Pakistan is not only selfsufficient in corn but also exporting a good amount of corn grain to earn precious foreign exchange. Energy availability is one of the major issues in the country and the current government is making all out efforts to improve energy availability. Rafhan Maize has initiated 12MW coal fired Cogen plant at one of its major sites, Jaranwala to complement governmental efforts and play its effective role in easing power crises in the country. The project is near to completion and will help to significantly reduce energy related issues at the site by providing low cost electricity & steam and significantly reducing power related breakdowns.

3 OUTLOOK Ease in energy supply, low international petroleum prices, relatively stable Pak Rupee, Improving inflation index and low interest rates are expected to ease economic situation and may help to improve current slow GDP growth. However, political volatility, ongoing war against terrorism and decreasing exports with corresponding widening trade deficit may pose a series of impediments to impact demand from consuming segments during remainder part of We strongly believe in our people, customer base, products, systems and capabilities to convert imposing threats/risks into opportunities to continue our steak for delivery of consistent results. Based on our track record, we expect 2016 will be another good year for Rafhan Maize to fulfill the promise to our stakeholders. May Allah give us the courage to face the challenges ahead. A meen! August 12, 2016 Usman Qayyum Chief Executive & Managing Director

4 I M P O R TA N T N O T E S T O S H A R E H O L D E R S Please go through the following notes. It will be appreciated if you please respond to your relevant portion at the earliest: DIVIDEND MANDATE In accordance with SECP's directives, all shareholders, who have not yet opted for dividend mandate, are requested to authorize the company to directly credit all future cash dividends to their bank account by conveying following particulars to our Shares Registrar M/s FAMCO Associates (Pvt.) Ltd, 8F, Next to Hotel Faran, Nursery, Block6, PECHS, ShahraheFaisal, Karachi. Title of Bank Account Bank Name Cell/Landline Number of Shareholder Bank Account Number Branch Name and Address CNIC Number CDC shareholders will send the above particulars to their respective Stock Exchange Broker. CNIC Number Pursuant to the directives of the SECP, CNIC number is mandatorily required to be mentioned on dividend warrants. The Company is now unable to comply with SRO 831(1)/2012 dated 5 July 2012 of SECP and therefore, constrained under Section 251(2)(a) of the Companies Ordinance, 1984 to withhold dispatch of dividend warrants of noncompliant shareholders. A list of such shareholders is available on Company's website Please submit a copy of your valid CNIC (only Physical Shareholders), if not already provided to the Shares Registrar of the Company. Corporate account holders should submit National Tax Number, if not yet submitted. Deduction of Income Tax from Dividend under Section 150 The Government of Pakistan through Finance Act, 2016 has made further amendments in Section 150 of the Income Tax Ordinance, 2001 whereby different rates are prescribed for deduction of withholding tax on the amount of dividend paid by the companies. These tax rates are as under: For filers of income tax returns 12.5% For nonfilers of income tax returns 20% To enable the company to make tax deduction on the amount of cash instead of 20%, all the shareholders whose names are not entered into the Active Taxpayers List (ATL) provided on the website of FBR, despite the fact that they are filers, are advised to make sure that their names are entered into ATL before the date for payment of any future cash dividend otherwise tax on their cash dividend will be instead of 12.5%. According to clarification received from Federal Board of Revenue (FBR), withholding tax will be determined separately on 'Filer/NonFiler' status of Principal shareholder as well as jointholder (s) based on their shareholding proportions, in case of joint accounts. In this regard all shareholders who hold shares jointly are requested to provide shareholding proportions of Principal shareholder and Jointholder(s) in respect of shares held by them, if not provided yet, to our Shares Registrar, in writing as follows, at the earliest, otherwise it will be assumed that shares are equally held:

5 I M P O R TA N T N O T E S T O S H A R E H O L D E R S Company Name Folio/ CDS A/C # Total Shares Principal Shareholder Name & CNIC # Share holding Propor tion (No. of Shares) Joint Shareholder Name & CNIC # Share holding Propor tion (No. of Shares) In another clarification by Federal Board of Revenue, valid tax exemption certificate for claim of exemption U/S 150, 151 and 233 of the Income Tax Ordinance, 2001 is required where statutory exemption under Clause 47B of PartIV of the Second Schedule is available. Such certificate U/S 159(1) of the Income Tax Ordinance, 2001 issued by concerned Commissioner of Inland Revenue is to be produced to avail tax exemption. For any query/problem/information, the investors may contact the company and/or the Shares Registrar at the following phone numbers, addresses: Company Contact: Shares Registrar: Mr. M. Yasin Anwar Mr. Fakhar Abbasi Company Secretary & Compliance Officer, M/s FAMCO Associates (Pvt.) Ltd, Rafhan Maize Products Co. Ltd., 8F, Next to Hotel Faran, Nursery, Rakh Canal East Road, Faisalabad. Block6, PECHS, ShahraheFaisal, Karachi. Tel. No Ext. 206 & 348 Tel. No Ext corporate@rafhanmaize.com info.shares@famco.com.pk The corporate shareholders having CDC accounts are required to have their National Tax Number (NTN) updated with their respective participants, whereas corporate physical shareholders should send a copy of their NTN certificate to the company or its Shares Registrar M/s FAMCO Associates (Pvt.) Ltd. The shareholders while sending NTN or NTN certificates, as the case may be, must quote company name and their respective folio numbers. Annual Accounts Annual Accounts of the Company for the financial year ended December 31, 2015 have been placed on the Company's website Pursuant to SECP's SRO 787(I)/2014 dated September 8, 2014 regarding electronic transmission of Annual Report and notice which falls in the sphere of Section 50, 158 and 233 of the Companies Ordinance, 1984, we have attached the request form in our Annual, Half Yearly and Quarterly Report and also uploaded on our Company's website Members desirous to avail this facility are requested to submit the request form duly filledin to our Shares Registrar.

6 I M P O R TA N T N O T E S T O S H A R E H O L D E R S Request Form Consent for Circulation of Annual Audited Financial Statements through Company Name : Rafhan Maize Products Co. Ltd. Folio No./CDC subaccount No. Address: CNIC No. The above address will be recorded in the members register maintained under Section 147 of the Companies Ordinance, I will inform the Company or the Registrar about any change in my address immediately. Henceforth, I will receive the Audited Financial Statements along with Notice only on the above address, unless a hard copy has been specifically requested by me. Name and Signature of Shareholder (Attachment : Copy of CNIC)

7 A u d i t o r ' s R e p o r t t o t h e m e m b e r s o n R e v i e w o f C o n d e n s e d I n t e r i m F i n a n c i a l I n f o r m a t i o n Introduction We have reviewed the accompanying condensed interim balance sheet of Rafhan Maize Products Co. Ltd. ("the Company")as at 30 June 2016 and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim cash flow statement and condensed interim statement of changes in equity together with the notes forming part thereof for the six months period then ended (hereinafter referred to as "the condensed interim financial infromation"). Management is responsible for the preparation and presentation of this condensed interim financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on this condensed interim financial information based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A review of condensed interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information as at and for the six months period ended 30 June 2016 is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Other matter The figures for the quarter ended 30 June 2016 and 30 June 2015 in the condensed interim profit and loss account and condensed interim statement of comprehensive income have not been reviewed by us and we do not express a conclusion on them. Lahore: August 12, 2016 KPMG Taseer Hadi & Company Chartered Accountants (Kamran Iqbal Yousafi)

8 C O N D E N S E D I N T E R I M B A L A N C E S H E E T As at June 30, 2016 (Unaudited) NON CURRENT ASSETS Property, plant and equipment Intangibles Employees retirement benefits Long Term Loans CURRENT ASSETS Stores and spares Stock in trade Trade debts Loans and advances Trade deposits and short term prepayments Other receivables Cash and bank balances CURRENT LIABILITIES Trade and other payables Mark up accrued on short term running finances Provision for taxationnet Notes 4 5 June 30, 2016 December 31, 2015 (Unaudited) (Audited) 6,590, ,680 13,475 6,619, ,987 4,870,871 1,118, , ,023 50,210 1,468,180 8,709,409 2,155, ,359 6,389,399 1,161 14,680 7,016 6,412, ,968 3,409,116 1,004,129 93, ,351 27,769 2,786,410 8,193,977 2,099, ,532 WORKING CAPITAL TOTAL CAPITAL EMPLOYED 2,489,452 6,219,957 12,839,324 2,287,557 5,906,420 12,318,676 NON CURRENT LIABILITIES Deferred tax liabilities 715, ,890 NET CAPITAL EMPLOYED 12,123,984 11,673,786 REPRESENTED BY: SHARE CAPITAL AND RESERVES Share capital Reserves CONTINGENCIES AND COMMITMENTS 6 92,364 12,031,620 92,364 11,581,422 12,123,984 11,673,786 The annexed notes 1 to 15 form an integral part of this condensed interim financial information. Usman Qayyum Chief Executive & Managing Director

9 C O N D E N S E D I N T E R I M P R O F I T A N D L O S S A C C O U N T For the six months period ended 30 June 2016 (Unaudited) SalesNet Note 7 Six months ended 30 June 30 June ,880,815 12,688,168 Three months ended 30 June 30 June ,381,501 6,668,865 Cost of sales 8 (9,484,373) (10,121,292) (4,602,867) (5,286,860) Gross profit 3,396,442 2,566,876 1,778,634 1,382,005 Distribution expenses Administrative expenses Other income Other expenses Operating profit 9 (159,412) (207,142) 87,976 (210,587) (489,165) 2,907,277 (136,634) (200,904) 64,242 (161,500) (434,796) 2,132,080 (80,624) (104,177) 46,492 (109,972) (248,281) 1,530,353 (70,338) (105,824) 14,349 (84,000) (245,813) 1,136,192 Finance costs (7,794) (13,514) (4,398) (8,597) Profit before taxation 2,899,483 2,118,566 1,525,955 1,127,595 Taxation (879,094) (680,048) (459,505) (370,607) Profit after taxation 2,020,389 1,438,518 1,066, ,988 Earnings per sharebasic and diluted(rupees) The annexed notes 1 to 15 form an integral part of this condensed interim financial information.

10 C O N D E N S E D I N T E R I M S TAT E M E N T O F C O M P R E H E N S I V E I N C O M E For the six months period ended 30 June 2016 (Unaudited) Profit for the period Other comprehensive income Six months ended 30 June 30 June ,020,389 1,438,518 Three months ended 30 June 30 June ,066, ,988 Total comprehensive income for the period 2,020,389 1,438,518 1,066, ,988 The annexed notes 1 to 15 form an integral part of this condensed interim financial information. Usman Qayyum Chief Executive & Managing Director

11 C O N D E N S E D I N T E R I M C A S H F L O W S TAT E M E N T For the six months period ended 30 June 2016 (Unaudited) Cash flows from operating activities Cash (used in) / generated from operations Taxes paid Employees retirement benefits paid Interest received NET CASH (USED IN) GENERATED FROM OPERATING ACTIVITIES Note 10 Six months ended 30 June June ,312,779 (916,106) (661,817) (24,957) 57,644 (611,224) (24,746) 44,611 (629,130) (591,359) 683,649 (1,507,465) CASH FLOWS FROM INVESTING ACTIVITIES Capital Expenditure incurred Sale proceeds of property, plant and equipment Long term loans disbursed Repayment from long term loans NET CASH USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Dividend paid Short term running finances Secured Finance cost paid NET CASH USED IN FINANCING ACTIVITIES NET DECREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at the beginning of the period Effect of exchange rate fluctuations on cash and cash equivalents Cash and cash equivalents at the end of the period (425,433) 994 (6,695) 3,008 (428,126) (1,566,994) (7,751) (1,574,745) (1,319,222) 2,786, ,468,180 (771,371) 2,218 (6,414) 2,922 (772,645) (1,014,223) 515,398 (9,306) (508,131) (2,788,241) 3,115,831 (7,639) 319,951 The annexed notes 1 to 15 form an integral part of this condensed interim financial information. Usman Qayyum Chief Executive & Managing Director

12 C O N D E N S E D I N T E R I M S TAT E M E N T O F C H A N G E S I N E Q U I T Y For the six months period ended 30 June 2016 (Unaudited) Share Capital Share Premium Capital Reserves Other General Revenue Reserves Unappropriated Profit Total Balance as at 01 January ,364 36, ,550,990 9,681,448 Total comprehensive income Profit for the period Other comprehensive income Transactions with owners of the Company recognized directly in equity Final dividend 2014 (Rs per share ) 1st interim dividend 2015 (Rs per share) Balance as at 30 June ,364 36, ,438,518 1,438,518 (785,096 ) (230,911 ) (1,016,007 ) 9,973,501 1,438,518 1,438,518 (785,096) (230,911) (1,016,007) 10,103,959 Balance as at 01 January ,364 36, ,543,328 11,673,786 Total comprehensive income Profit for the period Other comprehensive income Transactions with owners of the Company recognized directly in equity 2,020,389 2,020,389 2,020,389 2,020,389 Final dividend 2015 (Rs per share ) 1st interim dividend 2016 (Rs per share) Balance as at 30 June ,364 36, (1,108,371 (461,820 ) (1,570,191 ) 11,993,526 ) (1,108,371) (461,820) (1,570,191) 12,123,984 The annexed notes 1 to 15 form an integral part of this condensed interim financial information. Usman Qayyum Chief Executive & Managing Director

13 N O T E S T O T H E C O N D E N S E D I N T E R I M F I N A N C I A L I N F O R M AT I O N For the six months period ended 30 June 2016 (Unaudited) REPORTING ENTITY Rafhan Maize Products Company Limited ("the Company") was incorporated in Pakistan and is listed on Pakistan Stock Exchange Limited (formerly Karachi Stock Exchange Limited, Lahore Stock Exchange Limited and Islamabad Stock Exchange Limited). Ingredion Incorporated Chicago, U.S.A., holds the majority shares of the Company. The registered office of the Company is situated at Finlay House, I.I. Chundrigar Road, Karachi. The Company uses maize as the basic raw material to manufacture and sell a number of industrial products, including starches, liquid glucose, dextrose, dextrin and gluten meals. BASIS OF PREPARATION Statement of compliance This condensed interim financial information has been presented in condensed form in accordance with the requirements of the International Accounting Standard (IAS) 34 Interim Financial Reporting, and provision of and the directives issued under the Companies Ordinance,1984. In case where requirements of Companies Ordinance 1984 differ, the provisions of or directives issued under the Company Ordinance,1984 or directives issued by Securities and Exchange Commission of Pakistan (SECP) have been followed. This condensed interim financial information is being submitted to the shareholders as required by section 245 of the Companies Ordinance, 1984 and the Listing Regulations of Pakistan Stock Exchange Limited. This condensed interim financial information does not include all the information required for complete set of annual financial statements and should be read in conjunction with audited financial statements of the Company, for the year ended 31 December The comparative balance sheet presented in this condensed interim financial information has been extracted from the audited financial statements of the Company for the year ended 31 December 2015, whereas comparative condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim cash flow statement and condensed interim statement of changes in equity have been extracted from the unaudited condensed interim financial information for the six months period ended 30 June Use of judgements and estimates In preparing this condensed interim financial information, management make judgement, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements as at and for the year ended 31 December Functional and presentation currency This condensed interim financial information is presented in Pakistan Rupees which is also the Company's functional currency. SIGNIFICANT ACCOUNTING POLICIES The accounting policies adopted for the preparation of the condensed interim financial information are the same as those applied in the preparation of the annual financial statements of the Company for the year ended 31 December 2015, except for the following standards which became effective during the period. Amendments to IAS 38 Intangible Assets and IAS 16 Property, Plant and Equipment (effective for annual periods beginning on or after 1 January 2016). Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures) [effective for annual periods beginning on or after 1 January 2016). Accounting for Acquisitions of Interests in Joint Operations Amendments to IFRS 11 Joint Arrangements (effective for annual periods beginning on or after 1 January 2016).

14 N O T E S T O T H E C O N D E N S E D I N T E R I M F I N A N C I A L I N F O R M AT I O N For the six months period ended 30 June 2016 (Unaudited) Amendment to IAS 27 Separate Financial Statements (effective for annual periods beginning on or after 1 January 2016). Agriculture: Bearer Plants [Amendment to IAS 16 and IAS 41] (effective for annual periods beginning on or after 1 January 2016). Amendments to IAS 12 Income Taxes are effective for annual periods beginning on or after 1 January Amendments to IAS 7 Statement of Cash Flows are part of IASB s broader disclosure initiative and are effective for annual periods beginning on or after 1 January Amendments to IFRS 2 Sharebased Payment clarify the accounting for certain types of arrangements and are effective for annual periods beginning on or after 1 January Annual Improvements cycles (amendments are effective for annual periods beginning on or after 1 January 2016). The above amendments are either irrelevant or did not have an impact on the accounting policies of the Company. 30 June December 2015 (Unaudited) (Audited) 4. PROPERTY, PLANT AND EQUIPMENT Operating property, plant and equipment Capital workinprogress Note ,354,568 2,235,849 6,590,417 4,567,109 1,822,290 6,389, This includes the cost of property, plant and equipment that have been added and disposedoff during the period, detail of which is as follows: Six months ended (Unaudited) Six months ended (Unaudited) 30 June June 2015 Additions Deletions Additions Deletions Freehold Land Factory building on freehold land Plant and machinery Furniture and fittings Vehicles Office equipment 276 2,677 1,809 6, ,971 10,522 3,564 11, , ,608 11,874 4,971 38,262 6, CAPITAL WOEKINPROGRESS The movement in capital workinprogress is as follows: Opening balance Add: Additions during the period Less: Transfers during the period Closing balance 30 June 2016 (Unaudited) 1,822, ,433 2,247, June 2015 (Unaudited) 432, ,371 1,203,569 (11,874) (38,262) 2,235,849 1,165,307

15 N O T E S T O T H E C O N D E N S E D I N T E R I M F I N A N C I A L I N F O R M AT I O N For the six months period ended 30 June 2016 (Unaudited) 5. CASH AND BANK BALANCES Cash and bank balances include Rs. 478,537 thousands (2015: Rs. 75,971 thousands) placed under permissible Shariah modes. 6. CONTINGENCIES AND COMMITMENTS Contingencies a) Counter guarantees given by the Company to its bankers as at balance sheet date amounts to Rs. 157,300 thousands (2015: Rs. 142,300 thousands). Commitments a) Commitments in respect of capital expenditure b) Commitments in respect of purchase of corn (under permissible Sharia mode) c) Commitments in respect of forward exchange contracts June 30, 2016 (Unaudited) 212,882 3,279, ,202 December 31, 2015 (Audited) 134,087 7,148,400 73, Sales net Domestic Exports Less: Sales tax Trade discount and commission 8. Cost of sales Opening stock of finished goods Cost of goods manufactured Less: closing stock of finished goods 9. Other income Income from financial assets: Six months ended (Unaudited) 30 June June June ,019, ,014 14,649,365 1,761,816 6,734 (1,768,550) 12,880,815 2,124,708 8,666,358 10,791,066 (1,306,693) 9,484,373 13,072, ,490 13,698,163 1,004,663 5,332 (1,009,995) 12,688,168 1,873,501 10,060,000 11,933,501 (1,812,209) 10,121,292 Note Three months ended (Unaudited) 6,949, ,364 7,260, ,280 4,301 (878,581) 6,381,501 1,595,825 4,313,735 5,909,560 (1,306,693) 4,602, June ,862, ,787 7,188, ,974 2,815 (519,789) 6,668,865 1,383,338 5,715,731 7,099,069 (1,812,209) 5,286,860 Six months ended (Unaudited) 30 June June 2015 Mark up on staff loans and profit on bank deposits Foreign exchange gain / (loss) , ,237 (7,639) Income from nonfinancial assets: Profit on sale of scrap Profit on sale of property, plant and equipment Miscellaneous income 35, ,630 32,905 1,913 3,826 87,976 64,242

16 N O T E S T O T H E C O N D E N S E D I N T E R I M F I N A N C I A L I N F O R M AT I O N For the six months period ended 30 June 2016 (Unaudited) 9.1 This includes profit amounting to Rs. 8,113 thousands (2015: Rs. 8,332 thousands) on bank deposits, placed under permissible Sharia mode. 9.2 Foreign exchange gain / (loss) includes Rs. 196 thousands (2015: Rs. (8,508) thousands) earned / (incurred) using derivative financial instruments. 10. CASH FLOWS FROM OPERATING ACTIVITIES Profit before taxation Adjustment for: Depreciation of property, plant and equipment Amortization of intangible assets Provision for employees retirement benefits Provision of doubtful debts Reversal of provision for slow moving and obsolete items Gain on disposal of property, plant and equipment Interest income Finance cost (Gain) / loss on foreign exchange transactions Six months ended (Unaudited) 30 June June ,899, , ,948 (55) (8,510) (470) (46,325) 7,794 (992) 205,647 2,118, ,722 1,678 29,696 (689) (1,913) (33,237) 13,514 7, ,410 Cash generated from operation before working capital changes Effect on cash flow due to working capital changes (Increase) in current assets: Stores and spares Stock in trade Trade debts Loans and advances Trade deposits and short term prepayments Other receivables Increase / (decrease) in current liabilities: Trade and other payables Net increase in working capital Cash generated from / (used in) operations 3,105,130 (37,736) (1,446,527) (114,640) (107,852) (98,672) (33,760) (1,839,187) 46,836 (1,792,352) 1,312,779 2,355,976 (49,818) (2,518,028) (52,140) (48,533) (92,571) (116,948) (2,878,038) (394,044) (3,272,082) (916,106)

17 N O T E S T O T H E C O N D E N S E D I N T E R I M F I N A N C I A L I N F O R M AT I O N For the six months period ended 30 June 2016 (Unaudited) 11. TRANSACTIONS WITH RELATED PARTIES AND ASSOCIATES The related parties comprise parent company, related group companies, local associated company, directors of the company, key management personnel and staff retirement funds. Details of transaction with related parties, other than those disclosed else where in theses financial statements are as follows: Name of Parties Parent Company Nature and description of related party transaction Six months ended (UnAudited) 30 June 2016 Three months ended (UnAudited) 30 June 30 June June 2015 Ingredion Inc. U.S.A. Ingredion Inc. U.S.A. Services received Imports 33,346 (13,614) 35,359 17,771 19,561 (6,641) Associates Corn Products Development Inc. Unilever Pakistan Foods Ltd. Ingredion Holding LLC Kenya Ingredion India (Pvt) Ltd Ingredion Singapore Pte. Ltd. Ingredion Malaysia SDN BHD PT Ingredion, Indonesia Ingredion Philippines, Inc. National Starch & Chemical Thailand Ingredion Singapore PTE Ltd Ingredion GMBH Germany Technical support fee Sales Export sales Export sales Export sales Export sales Export sales Export sales Imports Imports Imports 10, , ,766 1,338 27,696 5,199 14,311 10,084 (2,196) 694 (19,698) 11, , ,081 25,889 2,510 17,465 (2,343) (22,216) 5, ,032 99,814 1,338 15,800 2,600 10,400 2,468 (1,430) (11,060) 5, , ,003 13,020 1,255 7,531 (2,020) (12,436) Other Related Parties Employees benefits Key management personnel Cont. to funds Remuneration (48,346) (203,045) (47,476) (159,462) (24,311) (121,268) (23,819) (94,196) The transactions were carried out at an arm's length basis, in accordance with the company's accounting policy. No buying and selling commission has been paid to any associated undertaking. 12. OPERATING SEGMENTS 12.1 These financial statements have been prepared on the basis of single reportable segment All non current assets of the company as at 30 June 2016 are located in Pakistan.

18 N O T E S T O T H E C O N D E N S E D I N T E R I M F I N A N C I A L I N F O R M AT I O N For the six months period ended 30 June 2016 (Unaudited) 13. FINANCIAL RISK MANAGEMENT 'The Company's financial risk management objective and policies are consistent with that disclosed in financial statements as at and for the year 31 December Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Underlying the definition of fair value is the presumption that the company is a going concern and there is no intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis. IFRS 13 'Fair Value Measurement' requires the company to classify fair value measurements and fair value hierarchy that reflects the significance of the inputs used in making the measurements of fair value hierarchy has the following levels: Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) Inputs other than quoted prices included within level 1 that are observable for the asset either directly (i.e. derived from prices) (Level 2) Inputs for the asset or liability that are not based on observable market data (i.e. unadjusted) inputs (Level 3) Transfer between levels of the fair value hierarchy are recognized at the end of the reporting period during which the changes have occurred. The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. Financial assets measured at fair value 30 June 2016 Carrying amount Fair value Loans and Other receivables financial liabilites Total Level 1 Level 2 Level 3 Total Forward exchange contract Financial assets not measured at fair value Long term loans Trade debts Loans and advances Trade deposits Other receivables Cash and bank balances Financial liabilities not measured at fair value 13,475 1,118,824 19,871 34,204 50,210 1,468,180 2,704,764 13,475 1,118,824 19,871 34,204 50,210 1,468,180 2,704,764 Trade and other payables Mark up accrued on short term running finances 1,771, ,772,033 1,771, ,772,033

19 N O T E S T O T H E C O N D E N S E D I N T E R I M F I N A N C I A L I N F O R M AT I O N For the six months period ended 30 June 2016 (Unaudited) Financial assets measured at fair value 31December 2015 Carrying amount Fair value Loans and Other receivables financial liabilites Total Level 1 Level 2 Level 3 Total Forward exchange contract Financial assets not measured at fair value Long term loans Trade debts Loans and advances Trade deposits Other receivables Cash and bank balances Financial liabilities not measured at fair value 7,016 1,004,129 9,139 34,204 27,769 2,786,410 3,868,667 7,016 1,004,129 9,139 34,204 27,769 2,786,410 3,868,667 Trade and other payables Mark up accrued on short term running finances 1,807, ,807,650 1,807, ,807, DATE OF AUTHORIZATION FOR ISSUE This unaudited condensed interim financial information was authorized for issue by the Board of Directors on August 12, GENERAL Figures in these accounts have been rounded off to the nearest thousand of rupees. Usman Qayyum Chief Executive & Managing Director

20 Head Off ice & S hares Department Rakh Canal East Road, Faisalabad, Pakistan Ph: (9241) Fax: (9241) Website: corporate@rafhanmaize.com Rakh Canal Plant Rakh Canal East Road, Faisalabad. Ph: (9241) Fax: (9241) Cornwala Plant 5Km JaranwalaKhurrianwala Road, Jaranwala Faisalabad. Ph: (9241) & 2327 Mehran Plant K.B. Feeder Road, Kotri, Jamshoro, Sindh. Ph: (92223) Board Of Directors Pierre Perez Y Landazuri Chairman Chief Fin ancial Off icer Dr. Abid Ali Secretary M. Yasin Anwar NonExecutive Usman Qayyum Executive Chief Exe cutive & Managing Director Jack C. Fortnum Jorgen Kokke Christine M. Castellano Marcel Hergett Zulfikar Mannoo Mian M. Adil Mannoo Wisal A. Mannoo Dr. Abid Ali Anis Ahmad Khan Audit Committee Zulfikar Mannoo Jack C. Fortnum Christine M. Castellano Marcel Hergett Anis Ahmad Khan Member Human Resource & Remuneration Committee Jorgen Kokke Chairman Pierre Perez Y Landazuri Member Usman Qayyum Member Zulfikar Mannoo Member Shares Tra nsfer Committee Usman Qayyum Chairman Dr. Abid Ali Member Anis Ahmad Khan Member Bankers Citibank, N.A. Habib Bank Ltd. Meezan Bank Ltd. MCB Bank Ltd. NonExecutive NonExecutive NonExecutive NonExecutive NonExecutive NonExecutive NonExecutive Executive Independent & NonExecutive Chairman Member Member Member MCB Islamic Bank Ltd. National Bank of Pakistan Standard Chartered Bank (Pakistan) Ltd. Auditors KPMG Taseer Hadi & Co. Chartered Accountants Lahore Karachi Legal Advisor M. Ali Seena C/o Surridge & Beecheno, Karachi Shares Registrar FAMCO Associates (Pvt.) Ltd. 8F, Next to Hotel Faran, Nursery, Block6, P.E.C.H.S., ShahraheFaisal, Karachi Tel:(9221) Fax: (9221) Registered Off ice 1st Floor, Finlay House, 1.1. Chundrigar Road, Karachi74000, Pakistan Ph: (9221) Fax: (9221) Updated upto August 12, 2016