BOC

FINANCIAL STATEMENTS
SECOND QUARTER & HALF YEAR ENDED
30 JUNE 2010

BOC
BOC Pakistan Limited
A member of The Linde Group

Registered Syed Ayaz

Office: Bokhari
P.O. Munnawar
Box 4845, West Wharf, Karachi Hamid OBE
- Pakistan
Chief Executive Chairman
1
BOC PAKISTAN LIMITED
 BOC

Our Vision
BOCPL will be the leading industrial gases and hospital care Company, admired for our
people, who provide innovative solutions that make a difference to the community.

Our Mission
To engage effectively, responsibly and profitably in the industrial gases, healthcare and
welding markets. BOCPL consistently seeks a high standard of performance, and aims to
maintain a long-term leadership position in its competitive environment.

This will be achieved through operating efficiency, continued dedication to serving our
customers, cost effectiveness and behavioral conformance to our values: Passion to
Excel, Innovation for Customers, Empowering People and Thriving through Diversity.

The Company will be recognized in the community it operates in, as a safe and
environmentally responsible organization. Our people will be acknowledged for their
integrity and talent.

The corporation acknowledges that commercial success and sustained profitable growth
depends on the recruitment, development and retention of competent human resources.
It will continue to invest in building this organizational capacity and capability.

For shareholders, it protects their investment and provides an acceptable return. This is
achieved through continued commercial success in winning new business and retaining
old customers. This is underpinned by the development and provision of new
products/services to its customers, offering real value in price, quality, safety &
environmental impact.

Syed Ayaz Bokhari Munnawar Hamid OBE

Chief Executive Chairman
2
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BOC PAKISTAN LIMITED
 BOC

Company Information
Board of Directors

Munnawar Hamid – OBE Chairman

Syed Ayaz Bokhari Chief Executive
Sanaullah Qureshi Director
Towfiq Habib Chinoy Director
Sanjiv Lamba Director
Shamim Ahmad Khan Director (Resigned on 13-07-2010)
Ashley David Mills Director
Lee Bon Hian Director
Manzoor Ahmed Director (Appointed on 14-07-2010)

Company Secretary & Director of Finance

Muhammad Ashraf Bawany

Board Audit Committee

Sanaullah Qureshi Chairman Non-Executive Director

Sanjiv Lamba Member Non-Executive Director
Shamim Ahmad Khan Member Non-Executive Director (Resigned on 13-07-2010)
Lee Bon Hian Member Non-Executive Director

Jamal A Qureshi Secretary Assistant Company Secretary & Legal Manager

Board Remuneration and

Appointments Committee

Towfiq Habib Chinoy Chairman Non-Executive Director

Sanjiv Lamba Member Non-Executive Director
Lee Bon Hian Member Non-Executive Director

Salim Sheikh Secretary Head of HR

Bankers Auditors

Standard Chartered Bank (Pakistan) Ltd. KPMG Taseer Hadi & Co.
HSBC Bank Middle East Limited
Citibank NA
Deutsche Bank AG Solicitors
National Bank of Pakistan Ltd.
MCB Bank Ltd. Surridge & Beecheno
NIB Bank Ltd.
Registered Office

West Wharf, Dockyard

Road, Karachi-74000

Share Registrar Website

Central Depository Company of Pakistan Limited www.bocpakistan.com

Syed Ayaz Bokhari Munnawar Hamid OBE

Chief Executive Chairman
3
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BOC PAKISTAN LIMITED
 BOC

Directors’ Review
I am pleased to present the Directors’ Review together with the financial statements of your
Company for the half year ended 30 June 2010. The accompanying financial statements were subject
to a limited scope review by the auditors as required under the Code of Corporate Governance.

During the period under review, the country continued to face a worsening power crisis and a
deteriorating law & order situation which has hampered economic activity. However, inflation has
been less severe as compared to the previous year but still remains in double digits. Despite these
challenges, the economy has shown a significant growth of 4.1%, though it will be extremely
challenging to sustain these levels if the prevalent conditions continue.

As already reported in our 1st Quarter Review 2010, in addition to the macroeconomic challenges,
your Company continues to face severe price competition in the ASU products and the CO2 business.
The impact was marginally mitigated by increased activities in ship-breaking sector in the 2nd quarter
resulting in improved sales of liquid oxygen, but the Company’s turnover at Rs 1,142 million
remained lower by 5.68% compared to the corresponding period last year. Increasing cost of
production and distribution, mainly due to an unabated increase in power rates, significantly
impacted gross profit, which at Rs 250 million for the half year remained lower by Rs 118 million i.e.
32.03% compared to the same period last year. As a result, including a Rs 59 million loss of profit
insurance claim on account of the damaged grid station at Port Qasim, profit before tax at Rs 149
million and EPS at Rs 3.93 was also lower by 40.12% and 40.95% respectively compared to the same
period last year.

Your Company has entered into an arrangement for the purchase of a new liquid air separation unit
(ASU plant) following the earlier announcement of this Rs 2 billion investment. A Letter of Intent has
been signed and an industrial plot acquired in Lahore where this state-of-the-art plant would be
located. All efforts are directed towards completion of the project on schedule, which is expected not
only to increase our production capacities significantly but also produce a step-jump in our
competitive position. In the meanwhile, to face the increasing competitive pressure and challenges
as stated above, your Company remains focused on its strengths and is confident to grow business
and improve productivity and efficiency in its existing operations.

Inspite of the adversities stated above and keeping in view the investment, the Directors of your
Company are pleased to announce an interim cash dividend of 15%
(Rs 1.50 per share).

On behalf of the Board

Karachi Munnawar Hamid OBE

12 August 2010 Chairman

Syed Ayaz Bokhari Munnawar Hamid OBE

Chief Executive Chairman
4
4
BOC PAKISTAN LIMITED
 BOC

Syed Ayaz Bokhari Munnawar Hamid OBE

Chief Executive Chairman
5
BOC PAKISTAN LIMITED
 BOC

BOC Pakistan Limited

Condensed Interim Profit and Loss Account (Unaudited)
For the half year ended 30 June 2010

For the For the

half year ended second quarter ended
30 June 30 June 30 June 30 June
2010 2009 2010 2009
Note ---------------------------(Rupees in '000)---------------------------

Net sales 5 1,141,971 1,210,733 644,730 584,224

Cost of sales 5 (891,943) (842,892) (515,278) (403,395)

GROSS PROFIT 250,028 367,841 129,452 180,829

Distribution and marketing expenses 5 (87,831) (73,276) (48,929) (35,393)

Administrative expenses 5 (71,923) (66,687) (37,707) (33,066)
Other operating expenses 6 (31,249) (87,403) (14,203) (77,144)
Other operating income 7 90,435 130,816 79,920 118,965
Reorganization / restructuring cost - (21,995) - (21,995)
(100,568) (118,545) (20,919) (48,633)
PROFIT FROM OPERATIONS 149,460 249,296 108,533 132,196

Finance costs 5 (864) (1,137) (594) (594)

PROFIT BEFORE TAXATION 148,596 248,159 107,939 131,602

Taxation 8 (50,279) (81,649) (36,365) (42,577)

PROFIT AFTER TAXATION 98,317 166,510 71,574 89,025
0

------------------------------(Rupees)------------------------------

Earnings per share - basic and diluted 3.93 6.65 2.86 3.56

The annexed notes 1 to 19 form an integral part of these condensed interim financial statements.

Syed Ayaz Bokhari Munnawar Hamid OBE

Chief Executive Chairman
6
BOC PAKISTAN LIMITED
 BOC
BOC Pakistan Limited
Condensed Interim Balance Sheet
As at 30 June 2010
30 June 31 December
2010 2009
Unaudited
ASSETS Note (Rupees in '000)

Non-current assets
Property, plant and equipment 9 1,043,854 1,064,448
Net investment in finance lease 10 154,984 199,715
Long term loans 919 660
Long term deposits and prepayments 11,216 11,181
1,210,973 1,276,004
Current assets
Stores and spares 90,762 88,973
Stock-in-trade 11 188,835 166,801
Current maturity of net investment in finance lease 10 70,852 72,335
Trade debts, considered good - unsecured 145,285 153,030
Loans and advances 12,292 13,846
Deposits and prepayments 24,071 11,401
Other receivables 21,202 33,249
Cash and bank balances 547,794 500,310
1,101,093 1,039,945
2,312,066 2,315,949

EQUITY AND LIABILITIES

Share capital and reserves

Authorised:
40,000,000 (2009: 40,000,000) Ordinary shares of Rs. 10 each 400,000 400,000

Issued, subscribed and paid-up:

25,038,720 (2009: 25,038,720) Ordinary shares of Rs. 10 each 250,387 250,387

General reserve 1,039,567 1,006,653

Unappropriated profit 88,704 195,666
1,128,271 1,202,319

1,378,658 1,452,706
Non-current liabilities
Long term deposits 118,009 115,565
Deferred liabilities 12 150,314 202,034
268,323 317,599
Current liabilities
Trade and other payables 432,347 368,414
Provisions 13 199,930 154,363
Taxation - net 32,808 22,867
665,085 545,644
2,312,066 2,315,949

Contingencies and commitments 14

The annexed notes 1 to 19 form an integral part of these condensed interim financial statements.

Syed Ayaz Bokhari Munnawar Hamid OBE

Chief Executive Chairman
7
BOC PAKISTAN LIMITED
 BOC

BOC Pakistan Limited 0

Condensed Interim Cash Flow Statement (Unaudited) #
For the half year ended 30 June 2010 #

For the half year ended

30 June # 30 June
2010 2009
Note (Rupees in '000)

CASH FLOW FROM OPERATING ACTIVITIES #

Cash generated from operations 15 293,881 # 337,776

Finance costs paid (864) # (1,107)
Income tax paid (86,857) # (96,975)
Payments to post retirement medical benefits (109) (131)
Reorganization / restructuring cost paid (9,893) (21,995)
Long-term loans, deposits and prepayments (294) # 576
Long-term deposits 2,444 # 803
Net investment in finance lease 44,731 4,838
Net cash from operating activities 243,039 # 223,785

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (67,156) # (60,129)

Proceeds from disposal of operating assets 2,079 # 1,971
Interest received on balances with banks 22,877 # 16,007
Interest received on investment in finance lease 5,268 6,593
Net cash used in investing activities (36,932) # (35,558)

CASH FLOW FROM FINANCING ACTIVITIES #

Dividends paid (158,623) # (247,215)

Net cash used in financing activities (158,623) # (247,215)
Net increase / (decrease) in cash and cash equivalents 47,484 # (58,988)
Cash and cash equivalents at beginning of the period 500,310 # 334,478
Cash and cash equivalents at end of the period 547,794 # 275,490

The annexed notes 1 to 19 form an integral part of these condensed interim financial statements.

Syed Ayaz Bokhari Munnawar Hamid OBE

Chief Executive Chairman
8
BOC PAKISTAN LIMITED
 BOC

BOC Pakistan Limited

Condensed Interim Statement of Changes in Equity (Unaudited)
For the half year ended 30 June 2010

Share capital Revenue reserves Total

Issued, General Unappropriated
subscribed reserve profit
and paid-up
capital
-------------------------------------- (Rupees in '000) ------------------------------

Balance as at 1 January 2009 250,387 925,358 331,682 1,507,427

Profit for the period - - 166,510 166,510

Other comprehensive income for the period -
Defined benefit plan actuarial gains - net - - 211 211
- - 166,721 166,721
Transaction with owners
Final dividend for the year ended -
31 December 2008 - Rs 10 per share - - (250,387) (250,387)
-
Transfer to general reserve - 81,295 (81,295) -

Balance as at 30 June 2009 250,387 1,006,653 166,721 1,423,761

Balance as at 1 January 2010 250,387 1,006,653 195,666 1,452,706

Profit for the period - - 98,317 98,317

Other comprehensive income for the period -
Defined benefit plan actuarial losses - net - - (9,613) (9,613)
- - 88,704 88,704
Transaction with owners
Final dividend for the year ended
31 December 2009 - Rs 6.50 per share - - (162,752) (162,752)

Transfer to general reserve - 32,914 (32,914) -

Balance as at 30 June 2010 250,387 1,039,567 88,704 1,378,658

The annexed notes 1 to 19 form an integral part of these condensed interim financial statements.

Syed Ayaz Bokhari Munnawar Hamid OBE

Chief Executive Chairman
9
BOC PAKISTAN LIMITED
 BOC

BOC Pakistan Limited

Condensed Interim Statement of Comprehensive Income (Unaudited)
For the half year ended 30 June 2010

For the half year ended

30 June 30 June
2010 2009
(Rupees in '000)

Profit for the period 98,317 166,510

Other comprehensive income

Defined benefit plan actuarial (loss) / gain (14,789) 324
Deferred tax 5,176 (113)
(9,613) 211

Total comprehensive income for the period 88,704 166,721

The annexed notes 1 to 19 form an integral part of these condensed interim financial statements.

Syed Ayaz Bokhari Munnawar Hamid OBE

Chief Executive Chairman
10
BOC PAKISTAN LIMITED
 BOC
BOC Pakistan Limited
Notes to the Condensed Interim Financial Statements (Unaudited)
For the half year ended 30 June 2010

1. LEGAL STATUS AND OPERATIONS

BOC Pakistan Limited ("the Company") was incorporated in Pakistan under the Companies Act, 1913 (now
Companies Ordinance, 1984), as a private limited company in 1949 and converted into a public limited
company in 1958. Its shares are quoted on all the Stock Exchanges of Pakistan. The address of its registered
office is West Wharf, Dockyard Road, Karachi, Pakistan.

The Company is principally engaged in the manufacture of industrial and medical gases, welding electrodes
and marketing of medical equipment.

The Company is a subsidiary of The BOC Group Limited whereas its ultimate parent company is Linde AG,
Germany.

2. BASIS OF PREPARATION

These condensed interim financial statements of the Company for the half year ended 30 June 2010 have
been prepared in accordance with the requirements of the International Accounting Standard 34 - Interim
Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984. In case
where requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have
been followed.

These condensed interim financial statements are unaudited and are being submitted to the shareholders as
required by Section 245 of the Companies Ordinance, 1984.

These condensed interim financial statements do not include all the information required for full annual
financial statements, and should be read in conjunction with the Company's annual financial statements as at
and for the year ended 31 December 2009.

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies and the methods of computation adopted in the preparation of these condensed
interim financial statements are the same as those applied in the preparation of the financial statements of the
Company for the year ended 31 December 2009.

4. ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of these condensed interim financial statements in conformity with approved accounting
standards as applicable in Pakistan requires management to make estimates, assumptions and use judgments
that affect the application of accounting policies and reported amounts of assets and liabilities, income and
expenses.

The estimates and associated assumptions are based on historical experience and various other factors that
are believed to be reasonable under the circumstances, the results of which form the basis of making the
judgements about carrying values of assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised
if the revision effects only that period, or in the period of the revision and future periods if the revision effects
both current and future periods.

In preparing these condensed interim financial statements, the significant judgments 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 preceding published financial statements of the Company as at and for the year
ended 31 December 2009.
Syed Ayaz Bokhari Munnawar Hamid OBE
Chief Executive Chairman
11
BOC PAKISTAN LIMITED
 BOC

5. PROFIT FROM OPERATIONS

For the half year ended For the second quarter ended
30 June 2010 30 June 2009 30 June 2010 30 June 2009
Industrial Welding Total Industrial Welding Total Industrial Welding Total Industrial Welding Total
and medical and others and medical and others and medical and others and medical and others
gases gases gases gases
----------------------------------------------------------------------------------------------(Rupees in '000)--------------------------------------------------------------------------------------

Gross sales 1,083,370 242,336 1,325,706 1,034,295 338,733 1,373,028 592,053 158,664 750,717 512,393 143,982 656,375

Less: Trade discount (57,038) - (57,038) (21,795) - (21,795) (29,088) - (29,088) (5,522) - (5,522)
Sales tax (96,708) (29,989) (126,697) (96,411) (44,089) (140,500) (56,895) (20,004) (76,899) (48,141) (18,488) (66,629)
(153,746) (29,989) (183,735) (118,206) (44,089) (162,295) (85,983) (20,004) (105,987) (53,663) (18,488) (72,151)
Net sales 929,624 212,347 1,141,971 916,089 294,644 1,210,733 506,070 138,660 644,730 458,730 125,494 584,224

Cost of sales (699,241) (192,702) (891,943) (591,961) (250,931) (842,892) (383,150) (132,128) (515,278) (303,824) (99,571) (403,395)
Distribution
and marketing
expenses (80,930) (6,901) (87,831) (64,196) (9,080) (73,276) (46,259) (2,670) (48,929) (29,917) (5,476) (35,393)
Administrative
expenses (66,272) (5,651) (71,923) (58,424) (8,263) (66,687) (35,777) (1,930) (37,707) (28,001) (5,065) (33,066)
(846,443) (205,254) (1,051,697) (714,581) (268,274) (982,855) (465,186) (136,728) (601,914) (361,742) (110,112) (471,854)

83,181 7,093 90,274 201,508 26,370 227,878 40,884 1,932 42,816 96,988 15,382 112,370

Unallocated corporate expenses:

- Other operating
expenses 6 (31,249) (87,403) (14,203) (77,144)
- Other operating
income 7 90,435 130,816 79,920 118,965
149,460 271,291 108,533 154,191
Reorganization / restructuring cost - (21,995) - (21,995)
Operating profit 149,460 249,296 108,533 132,196

Finance cost (864) (1,137) (594) (594)

Taxation 8 (50,279) (81,649) (36,365) (42,577)
Profit for the period 98,317 166,510 71,574 89,025

Syed Ayaz Bokhari Munnawar Hamid OBE

Chief Executive Chairman
12
BOC PAKISTAN LIMITED
 BOC
6. OTHER OPERATING EXPENSES
For the half year For the second
ended quarter ended
30 June 30 June 30 June 30 June
2010 2009 2010 2009
-------------------------------(Rupees in '000)-------------------------------

Power grid station - 50,321 - 50,321

Old assets written off - 15,063 - 15,063
6.1 - 65,384 - 65,384
Workers' profit participation fund 8,098 13,327 5,833 7,063
Workers' welfare fund 5,182 5,064 2,731 2,684
Legal and professional 4,863 3,303 3,139 1,703
Donations 6.2 550 325 - 310
Exchange loss - net 10,056 - - -
Liquidated damages 2,500 - 2,500 -
31,249 87,403 14,203 77,144

6.1 In May 2009, power grid station was damaged due to fire. Amounts of Rs. 15,063 thousand and Rs.
50,321 thousand represent net book value written off for damaged grid station and costs to rebuild the
same grid station, respectively.

6.2 Donations include:

- Rs. 300 thousand (30 June 2009: Rs.300 thousand) to Aga Khan Hospital and Medical College Foundation,
Karachi. Mr. Munnawar Hamid OBE, Chairman, is a trustee of the Aga Khan University

- Rs. 250 thousand (30 June 2009: Nil) to Pakistan Parkinson's Society, Karachi. Mr. Munnawar Hamid OBE,
Chairman, is Vice Chairman of the Pakistan Parkinson's Society.

7. OTHER OPERATING INCOME

Income from savings and deposit accounts 24,174 12,705 11,418 5,544
Income on investment in finance lease 5,269 6,593 2,549 3,216
Exchange gain - net - 34,954 4,961 34,834
Insurance claim 7.1 58,928 50,000 58,928 50,000
Profit on disposal of property, plant
and equipment 2,064 1,971 2,064 1,040
Liabilities no more payable written back - 24,331 - 24,331
Others - 262 - -
90,435 130,816 79,920 118,965

7.1 This includes claim of Rs. 58,907 thousand in respect of loss of profit resulting from damage of grid
station referred to in note 6.1 above. In 2009, Rs. 50,000 thousand represents the claim received
against the costs incurred to rebuild the same grid station.

8. TAXATION

Current 96,798 69,670 54,027 37,517

Deferred (46,519) 11,979 (17,662) 5,060
50,279 81,649 36,365 42,577

8.1 During the current period, income tax return for the tax year 2009 has been selected for audit by the
tax authorities
Syed Ayazand theBokhari
audit proceedings are in progress.
Munnawar Hamid OBE
Chief Executive Chairman
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BOC PAKISTAN LIMITED
 BOC
9. PROPERTY, PLANT AND EQUIPMENT 30 June 31 December
2010 2009
(Rupees in '000)

Operating assets 9.1 975,438 1,020,722

Capital work-in-progress 68,416 43,726
1,043,854 1,064,448

9.1 Operating assets

Net book value as at 1 January 2010 / 2009 1,020,722 1,029,650

Additions during the period / year:

- Building 11,793 616
- Plant and machinery 16,446 157,447
- Vehicles 6,550 5,693
- Furniture and fittings 1,471 3,109
- Office equipments 6,205 11,552
42,465 178,417
Less:
- Disposals during period / year - net book value (15) (635)
- Depreciation charge during the period / year (87,734) (171,647)
- Assets written off during the period - (15,063)
(87,749) (187,345)
975,438 1,020,722

10. NET INVESTMENT IN FINANCE LEASE

30 June 2010
Minimum Finance Principal
lease income for outstanding
payments future periods
------------------(Rupees in '000)------------------

Not later than one year 79,286 8,434 70,852

Later than one year and not later than five years 164,223 9,239 154,984
243,509 17,673 225,836

31 December 2009
Minimum Finance Principal
lease income for outstanding
payments future periods
------------------(Rupees in '000)------------------

Not later than one year 82,179 9,844 72,335

Later than one year and not later than five years 209,702 13,368 196,334
Later than five years 3,416 35 3,381
213,118 13,403 199,715
295,297 23,247 272,050
Syed Ayaz Bokhari Munnawar Hamid OBE
Chief Executive Chairman
14
BOC PAKISTAN LIMITED
 BOC
11. STOCK-IN-TRADE 30 June 31 December
2010 2009
(Rupees in '000)

Raw and packing materials 53,250 54,520

In transit 12,340 3,880
65,590 58,400
Finished goods
- in hand 62,857 107,367
- in transit 60,388 1,034
123,245 108,401
188,835 166,801

11.1 Raw and packing materials and finished goods include inventories with a value of Rs.17,953 thousand
(31 December 2009: Rs. 26,543 thousand) which were held by third parties.

12. DEFERRED LIABILITIES

Deferred taxation 144,257 195,955

Post retirement medical benefits 6,057 6,079
150,314 202,034

13. PROVISIONS

This represents provision for sales tax, discounts, re-organization / restructuring cost and vendor /
contractor claims against the Company.

14. CONTINGENCIES AND COMMITMENTS

14.1 Contingencies

During the year 2009, as a result of re-organization / restructuring, the services of certain Officers
and Workers were terminated. The Collective Bargaining Agent (CBA) and the workers have filed
cases against the Company for unfair labor practice before the learned National Industrial Relations
Commission (NIRC). The Company has taken the position that the learned NIRC is not the
competent Court to decide the “General Allegations” and since the legal objections raised by the
Company were not discussed in the miscellaneous order of the NIRC, hence the Company has filed
a Constitutional Petition No. D-1662/2009 before the Hon’ble High Court of Sindh. The High Court
has suspended the orders of NIRC and started regular hearings.

Further, the Company has filed cases against the CBA Union office bearers in NIRC who had
committed unfair labor practice by not allowing the management staff to enter the factory premises
and blocking the gate and instigating the workers in connection with the termination of the above
terminated workers.

On the basis of consultation with the legal advisor, the Company’s management is confident that
the outcome of the cases would be in favor of the Company and, therefore, no provision has been
made in these condensed interim financial statements for any additional liability which may arise
upon finalization of these cases.

Syed Ayaz Bokhari Munnawar Hamid OBE

Chief Executive Chairman
15
BOC PAKISTAN LIMITED
 BOC

14.2 The Company has disputed the unilateral increase in rentals of one of its leased premises being
exorbitant, unreasonable and unjustified. Therefore, a civil suit has been filed against the Lessor.
The Court has directed parties to maintain status quo. The amount not acknowledged as debt in
this regard as at 30 June 2010 amounted to Rs. 29,498 thousand (31 December 2009: Rs. 28,751
thousand).

14.3 In pursuance to a notification from NEPRA for revision of Fuel Adjustment Charges (FAC) for
Karachi Electric Supply Corporation (KESC) consumers, a constitutional petition, by various
KESC consumers, has been filed in the High Court of Sindh against the said FAC. According to
the interim order of High Court of Sindh, KESC has been allowed to recover the FAC for the
period from July 2009 to March 2010 and restrained from passing on the charges for the period
April 2010 to June 2010 till the final order. Accordingly, a provision has been made in these
condensed interim financial statements based on said interim order. However, pending final order
and non availability of adequate information, no provision for FAC could be made for the period
from April 2010 to June 2010.

Commitments

14.4 Capital commitments outstanding as at 30 June 2010 amounted to Rs. 41,558 thousand (31
December 2009: Rs. 53,823 thousand).

15. CASH GENERATED FROM OPERATIONS For the half year ended
30 June 30 June
2010 2009
(Rupees in '000)

Profit before taxation 148,596 248,159

Adjustments for :

Depreciation 87,734 85,616

Assets written off during the period - 15,063
Profit on disposal of property, plant and equipment (2,064) (1,971)
Income from savings account and deposits (24,174) (12,705)
Income on investment in finance lease (5,269) (6,593)
Finance costs 864 1,137
Provision for:
- Post retirement medical benefits 376 642
- Reorganization / Restructuring cost - 21,995
Working capital changes 15.1 87,818 (13,567)
293,881 337,776

Syed Ayaz Bokhari Munnawar Hamid OBE

Chief Executive Chairman
16
BOC PAKISTAN LIMITED
 BOC
15.1 Working capital changes For the half year ended
30 June 30 June
2010 2009
(Rupees in '000)
(Increase) / decrease in current assets:
Stores and spares (1,789) (1,352)
Stock-in-trade (22,034) 34,627
Trade debts 7,745 (10,958)
Loans and advances 1,554 (4,762)
Deposit and prepayments (12,670) (2,055)
Net investment in finance lease 1,483 (10,593)
Other receivables (1,735) 7,737
(27,446) 12,644
Increase / (decrease) in current liabilities:
Trade and other payables 115,264 (26,211)
87,818 (13,567)

16. TRANSACTIONS WITH RELATED PARTIES

The related parties comprise of group companies, entities with common directors, major
shareholders, key management employees and retirement benefit funds. Transactions with related
parties and associated undertakings, other than those which have been disclosed elsewhere in these
condensed interim financial statements, are as follows:

Nature of relationship Nature of transactions

The BOC Group Limited Technical assistance fee 12,881 12,672

(Parent)
Information systems support /
maintenance - 5,437

Linde AG Information systems support / 4,595 -

(Ultimate parent) maintenance

Associated Companies Purchase of plant spares, welding

equipments and electrodes, gases
and gas cylinders 13,526 38,057

Related entities by virtue Sale of goods 6,399 7,175

of common directorship
Insurance premium (net of
commission) 355 107

Contributions to BOC Pakistan Limited Staff Provident Fund 4,196 4,235

Contributions to BOC Pakistan Limited Management Staff

Defined Contribution Pension Fund 4,460 3,884

Contributions to BOC Pakistan Limited Management Staff (1,058) (571)

Pension Fund
Syed Ayaz Bokhari Munnawar Hamid OBE
Chief Executive Chairman
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BOC PAKISTAN LIMITED
 BOC
For the half year ended
30 June 30 June
2010 2009
(Rupees in '000)
Contributions to BOC Pakistan Limited - Pakistan
Employees' Gratuity Fund 2,535 2,575

Meeting fee to Directors and

remuneration to Non-Executive Directors 1,370 1,314

Net actuarial (loss) / gain recognised during the period in the

Statement of Comprehensive Income on account of:

- Management Staff Pension Fund (9,211) 3,969

- Pakistan Employees' Gratuity Fund (5,867) (3,417)

Balances with related parties can be summarised as follows: 30 June 31 December

2010 2009
(Rupees in '000)

Receivable from associates in respect of trade debts 1,548 393

Receivable from holding company / associate in

respect of other receivables 5,040 4,257

Payable to holding company / associate in respect

of trade and other payables (20,866) (34,975)

Payable to Staff Provident Fund (1,489) (1,341)

(Payable to) /receivable from Management

Staff Defined Contribution Pension Fund (797) 1,023

Receivable from Management Staff Pension Fund 8,428 16,582

Receivable from Employees Gratuity Fund 833 6,570

16.1 Sales, purchases and other transactions with related parties are carried out on commercial terms and
conditions. The cost of technical assistance fee has been determined on the basis of agreement, duly
acknowledged by the State Bank of Pakistan, between the Company and the BOC Group Limited
based on an agreed methodology consistently applied.

There are no transactions with key management personnel other than under the terms of
employment, as disclosed elsewhere in these condensed interim financial

17. CORRESPONDING FIGURES

In order to comply with the requirements of International Accounting Standard 34 - 'Interim

Financial Reporting', the Balance Sheet has been compared with the preceding Balance Sheet as at
the period-end, whereas the Profit and Loss Account and Cash Flow Statement have been
compared with the corresponding periods of the previous year. Corresponding figures have been
rearranged and reclassified, wherever necessary for the purpose of comparison.
Syed Ayaz Bokhari Munnawar Hamid OBE
Chief Executive Chairman
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BOC PAKISTAN LIMITED
 BOC

18. NON ADJUSTING EVENTS AFTER THE BALANCE SHEET DATE

18.1 The Board of Directors has declared an interim cash dividend of Rs. 1.5 per share for the year
ending 31 December 2010 amounting to Rs. 37.558 million in their meeting held on 12 August 2010
(interim cash dividend of Rs 2.5 per share for the year ended 31 December 2009 amounting to Rs.
62.597 million). These condensed interim financial statements do not include the effect of interim
cash dividend declared on 12 August 2010, which will be accounted for in the financial statements
for the year ending 31 December 2010.

18.2 Subsequent to the period end, the Company has signed a letter of intent for purchase of plant and
related construction work as part of its expansion plan. Letter of credit has also been established
for import of this plant.

19. DATE OF AUTHORISATION

These condensed interim financial statements were authorized for issue on 12 August 2010 by the
Board of Directors of the Company.

Syed Ayaz Bokhari Munnawar Hamid OBE

Chief Executive Chairman
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BOC PAKISTAN LIMITED
 BOC
Business Divisions,
Products and Services
Industrial & Medical Gases Welding & Others

Bulk Gases Hospital Care PGP – Welding

Liquid Oxygen Medical Gases Consumables

Liquid Nitrogen Liquid Medical Welding Electrodes
Liquid Argon Compressed Medical Oxygen MIG Welding Wires
Pipeline Hydrogen Nitrous Oxide & Entonox TIG Welding Wires
Liquid Carbon Dioxide Nitric Oxide
Industrial Pipelines Machines
Medical Equipment Automatic
Oxygen Concentrator Semi-automatic
PGP – Gases Suction Oxygen Therapy Products Manual
Flowmeters, Injector, Suction Units, Terminal Units
Compressed Oxygen Accessories
Aviation Oxygen Medical Gases Pipeline Design, Installation & Service Regulators
Compressed Nitrogen Cutting Torches
Compressed Argon Welding Torches
Compressed Air Cutting Machines
Dissolved Acetylene Gas Control Equipment
Safety Equipment
Speciality Gases Gas Welding Rods
High Purity Gases Fluxes
Research Grade Gases
Gaseous Chemicals PGP – Others
Calibration Mixtures
Argon Mixtures Calcium Carbide
Welding Gas Mixtures
Sterilization Gases
Propane
Helium
Refrigerants

The BOC Group Limited, U.K., the majority shareholder of BOC Pakistan Limited, is a wholly owned subsidiary of Linde
AG, Germany. Accordingly, Linde AG is the ultimate parent company of BOC Pakistan Limited. The Linde Group is a
world leading gases and engineering company with almost 48,000 employees working in more than 100 countries
worldwide. In the 2009 financial year it achieved sales of EUR 11.2 billion. The strategy of The Linde Group is geared
towards sustainable earnings-based growth and focuses on the expansion of its international business with forward-
looking products and services.

Linde acts responsibly towards its shareholders, business partners, employees, society and the environment – in
every one of its business areas, regions and locations across the globe. Linde is committed to technologies and
products that unite the goals of customer value and sustainable development.

For more information, see The Linde Group online at http://www.linde.com

In Pakistan our business and reputation is built around our customers. Whatever the industry or interest, we continue
to respond to its needs as quickly and effectively as possible. The ever-changing requirements of customers are the
driving force behind the development of all our products, technologies and support services. Through our people, we
play a full and active role in communities around us and are committed to the highest standards of safety and
environmental practice. At the same time, we believe that the best way to assist any community is to build a
successful business.
Syed Ayaz Bokhari Munnawar Hamid OBE
Chief Executive Chairman
20
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BOC PAKISTAN LIMITED
 BOC

Business Locations

Registered Office Karachi P.O.Box 4845, West Wharf

Head Office Tel: 021-32313361 (9 Lines)
Fax: 021-32312968

North Western Region Lahore P.O.Box 205 ASU Plant and

Shalamar Link Road, Mughalpura Nitrous Oxide Plant
Tel: 042-36824091 (4 Lines)
Fax: 042-36817573

Multan Adjacent to PFL Khanewal Road Carbon Dioxide Plant

Tel: 061-6562201 (2 Lines)
061-6001360
Fax: 061-6778401

Mehmood Kot Adjacent to PARCO Nitrogen Plant

Mid Country Refinery, Mehmood Kot
Qasba Gujrat, Muzaffargarh
Tel: 066-2290751 & 2290484-85
Fax: 066-2290752

Faisalabad Altaf Ganj Chowk Sales Depot

Near Usman Flour Mills
Jhang Road
Tel: 041-2653463 & 2650564

Wah Cantonment Kabul Road Acetylene Plant

Tel: 051-4545359

Taxila Adjacent to HMC No.2 ASU Plant

Tel: 051-4560600
051-4560701-05
051-4560700

Hasanabdal Adjacent to Air Weapon Complex Hydrogen Plant

Abbotabad Road
Tel: 0572-520017 Ext. 104
0572-522428 Ext. 104

Southern Region Karachi P.O.Box 4845, West Wharf Acetylene Plant

Tel: 021-32313361 (9 Lines) Nitrous Oxide Plant
Fax: 021-32312968 Speciality Gases

Port Qasim Plot EZ/1/P-5(SP-1), Eastern Zone ASU Plant

Tel: 021-34740058 & 34740060 Hydrogen Plant
Fax: 021-34740059 Carbon Dioxide Plant

Sukkur A-15, Airport Road Sales Depot

Near Bhatti Hospital
Tel: 071-5630871

Syed Ayaz Bokhari Munnawar Hamid OBE

Chief Executive Chairman
21
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BOC PAKISTAN LIMITED