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Tomorrow’s solutions, today.

Middle East | South Asia | Nor th America

Annual Report 2013

TOMORROW’S SOLUTIONS, TODAY

At Avanceon, we are dedicated to help our clients reach

the pinnacle of their productivity through state-of-the-art

automation systems and cutting-edge technology.

Our value-driven approach and strict compliance with

the highest standards of competence and efficiency have

earned us the profound trust of our stakeholders. We seek

to continue to foster valuable relationships with our clients

by providing them outstanding expertise and sustainable

strategies to manage complex challenges.

With our dynamic and ingenious workforce, we aspire to

always stay one step ahead of the game by providing our

clients Tomorrow’s Solutions,Today.

Dear Shareholders,

I feel honored with the opportunity to address our shareholders

in the first Annual Report of now a public limited Avanceon that

found its very humble beginning 24 years ago. Going public last

November, marked a great milestone in our Company history

and our goal is to continue to achieve significant milestones to

increase value for our shareholders. I still hear the Karachi Stock

Exchange gong ringing in my ears from the first day of trading, a

reminder of the promises we made as part of Highway 50 and

our commitments to investors. Hence, a mental note is made to

continue to uphold Avanceon’s values.

We have made it this far in our history because we stood firm in

placing our customers and our people first, so it is not surprising

when I commit to continue this habit while moving forward. We

shall continue to invest in our human resource to keep our teams

happy and enable them to achieve the very best that they are

capable of. I proudly stand at the head of a collection of very gifted

individuals who, as a daily ritual, shine for Avanceon. We can already

sense the collateral weight of responsibilities stepping up within

Avanceon compelled by the confidence financial markets have

placed. I am very confident that the team will rise to this challenge

to further enhance investors’ trust and belief in us.

Please join me and the whole of Avanceon as we continue our

upward growth trajectory towards becoming the world’s leading

automation company through our inspiring collective team spirit

and seamless solutioneering.

Bakthiar H. WainFounder and Chief Executive Officer

LETTERFROM THE FOUNDER

A. ORDINARY BUSINESS1. To receive and consider the Audited Accounts for the year

ended 31 December 2013 and the Directors’ and Auditors’

Reports thereon.

2. To appoint Auditors and fix their remuneration. The retiring

auditors Ernst & Young, Ford Rhodes Sidat Hyder, Chartered

Accountants, being eligible, have offered themselves for re-

appointment.

3. To declare a final dividend at the rate of Rs 2.00 per share

i.e. 20% for the year ended 31 Dec 2013.

4. To elect (7) Directors of the Company, as fixed by the Board

of Directors, for the next term of three years, in accordance

with the provisions of Section 178 of the Companies

Ordinance, 1984, in place of the following Directors who

are eligible to offer themselves for re-election:

1. Mr. Bakhtiar Hameed Wain 2. Mr.Khalid Hameed Wain 3. Mr. Amir Waheed Wain 4. Mr. Tanveer Karamat 5. Mr. Tajammal Hussain 6. Mr.Umer Ahsan Khan 7. Mr. Naveed Ali Baig

B. SPECIAL BUSINESS5. To authorize the issuance of Bonus Shares in proportion of

01 Share for every 20 Shares held, i.e. at the rate of 5% and

if thought fit pass the following Special Resolution;

“RESOLVED that Ordinary Shares of Rs. 10/- each be issued

as Bonus Shares and that the said shares be allotted as fully

paid Ordinary Shares to the Members of the Company

whose names appear on the Register of Members as at the

close of the business on 14 April 2014 the Company in the

proportion of 01 Bonus Share for every 20 Shares held, that

is at the rate of 5%, and that such Bonus Shares shall rank

pari pasuu as regards dividend and in all other respects with

the existing Ordinary Shares of the Company.

FURTHER RESOLVED that fractional entitlements of the

members shall be consolidated into whole shares and sold

in the stock market and the sale proceeds shall be donated

to a charitable institution.

6. To Consider and if thought fit pass the following Ordinary Resolution;

“RESOLVED that placing of the Company’s quarterly

NOTICE OFTHE MEETING

NOTICE OF 11TH ANNUAL GENERAL MEETINGNOTICE IS HEREBY GIVEN that the 11th Annual General Meeting of Avanceon Limited will be held at Avari Towers, Fatima Jinnah Road,

Karachi, on Tuesday, 22 April, 2014 at 2.30 p.m. to transact the following business:

By Order of the Board

Lahore, Ahsan Khalil Dated: 01 April 2014 Company Secretary

accounts on its website instead of transmitting the same to its shareholders by post, be and is hereby approved.”

(2) A member entitled to attend and vote at this Meeting shall

be entitled to appoint another person, as his/ her proxy to

attend, speak and vote instead of him / her, and a proxy

so appointed shall have such rights, as respects attending,

speaking and voting at the Meeting as are available to a

member. Proxies in order to be effective, must be received

by the Company not less than 48 hours before the meeting.

A proxy need not be a member of the Company.

STATEMENT UNDER SEC 160 (1) (B) OF THE COMPANIES ORDINANCE, 1984.This Statement is annexed to the Notice of the 11th Annual General Meeting of Avanceon Limited to be held on Tuesday 22 April 2014 at which

certain Special Business is to be transacted. The purpose of this Statement is to set forth the material facts concerning such special business;

ITEM (5) OF THE AGENDAThe Directors of the Company are of the view that the Company’s

profitability, financial position and its reserves justify the issuance

of Bonus Shares in the proportion of 01 share for every 20 shares

held, that is at the rate of 5%, to those Shareholders whose names

appear in the Register of Members at the close of Business on

Monday 14 April 2014.

Pursuant to rule 6 (iii) of the Companies (Issue of Capital) Rules

1996, a Certificate of free reserves has been issued by the Auditors.

ITEM (6) OF THE AGENDAThe Securities and Exchange Commission of Pakistan vide its

circular No.19 dated 14 April, 2014 has allowed listed companies to

place their quarterly accounts on their website instead of sending

the same to each shareholder by post, subject to fulfilment of a few

conditions including seeking of the consent of the members.

This will be a convenient and cost effective way for the Company

to transmit its quarterly accounts and ensure quick and easy access

for the members to such accounts of the Company.

N.B(1) The share transfer book of the Company will be closed and no

transfer of shares will be accepted for registration from Tuesday

15 April 2014 to Tuesday 22 April 2014 (both days inclusive).

Transfer received in order at the office of our Registrar, M/s THK

Associates (Pvt) Limited, 2nd Floor, State Life Building No.3, Dr.

Ziauddin Ahmed Road, Karachi by the close of business (5.00

p.m.) on Monday 14 April 2014 will be treated to have been in

time for the purpose of attending the meeting.

Section I - Corporate Profile Company Information 2 About Avanceon 4 Philosophy 7 Business Conduct Core Values 8 Portfolio 10 Statement of Compliance 14Section II - Corporate Governance and Management Directors’ Profile 18 Corporate Governance Policy 20 Business Governing Principles & Values 22 Committees 23 Service to Society 24 Holding Structure 25 Corporate Strategy 25 Core Management 26 Chief Executive Officer 27 Chief Operating Officer 28 Director’s Report 30 Annex To The Report 35 Letter From The Chief Operating Officer 43Section III – Business Overview Value Driven 45 Unique Value Proposition 45 Growth Management 46 Impacting Technology 46 Enroute To Highway 50’s 47

Stakeholder 50

Section IV – Stand Alone Financial Statements Auditor’s Report 55 Statement of Financial Position 56 Profit & Loss Accounts 58 Statement of Comprehensive Income 59 Statement of Cash Flows 60 Statement of Changes in Equity 61 Notes to the Financial Statements 62Section V – Consolidated Financial Statements Auditor’s Report 93 Statement of Financial Position 94 Profit & Loss Accounts 96 Statement of Comprehensive Income 97 Statement of Cash Flows 98 Statement of Changes in Equity 99 Notes to the Financial Statements 100 Pattern of Shareholding 134 Proxy Form 135

TABLEOF CONTENTS

CORPORATE PROFILE

SECTION I

Management Report 2013 1|

Trade Mark

Web Presence: www.avanceon.com

COMPANYINFORMATION

Tomorrow’s solutions, today.

Directors Mr. Khalid H Wain Director/Chairman

Mr. Bakhtiar H Wain Director/Chief Executive Officer

Mr. Tanveer Karamat Director/Chief Operating Officer

Mr. Amir W Wain Director

Mr. Naveed A Baig Director

Mr. Tajammal Hussain Director

Mr. Umar Ahsan Khan Director

Mr. Saeed Ullah Khan Niazi Chief Financial Officer

Mr. Ahsan Khalil Company Secretary

Bankers Faysal Bank LimitedHabib Bank LimitedMCB Bank LimitedUnited Bank LimitedNational Bank of Pakistan LimitedStandard Chartered Bank LimitedDeutsche Bank LimitedJS Bank LimitedKASB Bank LimitedNIB Bank Limited

AuditorsErnst & Young Ford Rhodes Sidat Hyder Chartered Accountants.

Legal Advisor Chima & Ibrahim Advocates and Corporate Council

Share Registrar THK Associated (Private) Limited

2nd Floor, State Life Building-3, Dr. Ziauddin Ahmed Road,

Karachi, 75530, Sindh, Pakistan.

Phone: +92(21)111 000 322

Fax : +92 (21) 356 555 95

Email : [email protected]

Registered Office

19-Km , Main Multan Road,

Lahore, 54660 Punjab Pakistan

Phone No : + 92 (42) 111 940 940

Fax No: + 92 (42) 375 151 28

Email : [email protected]

Avanceon 2 |

Corporate Headquarters180 Sheree Blvd., Suite 1400 Exton, 19341, PA, United States of America, Phone: +1 610 – 458 – 8700Fax: +1 610 – 458 – 0606US Technical Support: 800 – 331 – 8994SE Asia Technical Support: 0800 11194

Regional Operational Centers Lahore (North Region) – Pakistan

19-km, Main Multan Road,

Lahore, 54660, Punjab, Pakistan

Phone: +92 42 – 111 940 940

Fax: +92 42 – 37515128

Karachi (South Region) – Pakistan

D-16/1, Block 3, Lane 5,

Clifton, Karachi 75600, Pakistan

Phone: +92 21 – 111 940 940

Fax: +92 21 – 35376573

Islamabad – Pakistan

299, Safari-3, Phansi Road

Bahria Town, Islamabad, Pakistan

Phone: +92 51 – 5733031

Fax: +92 51 – 5733032

United States of America – Eastern Region

Mr. Matt Ruth

180 Sheree Blvd., Suite 1400

Exton, PA, United States of America,

Phone: +1 610 – 458 – 8700

Fax: +1 610 – 458 – 0606

Dubai – United Arab Emirates

Office No: FZS IBDO 4

Jebel Ali Free Zone, 18590,

Dubai, United Arab Emirates

Phone: +971 – 4 – 8860277

Fax: +971 4 8860288

Abu Dhabi – United Arab Emirates

Mr. Tanveer Pasha

P.O. Box: 4118, Abu Dhabi, United Arab Emirates

Emdad LLC.

Phone: +971 – 2 – 634 – 999

Fax: +971 – 2 – 631 – 8181

Doha – Qatar & Al Khobar – Saudi Arabia

Mr. Sarmad M Qureshi

P.O. Box 5285, Office No-3, 15Th Floor

Burj Al-Gassar, West Bay, Doha, State Of Qatar

Phone: +974 – 440 – 85213

Ahmadi – Kuwait

Mr. Abdulkarim El-Mahmoud

P.O. Box: 9309, Ahmadi, Kuwait 61004

Imco Engineering & Construction Co.

Email: [email protected]

Phone: +965 – 23981661


THE COMPANYAvanceon [“AVN”/the “Company”] is the leading provider of automation, control systems integration, proprietary energy management

solutions and support services. It has a strong market footprint through its offices in Dubai - UAE (covering Middle East), Lahore - Pakistan

(covering South Asia) and Exton, Pennsylvania - United States of America (covering North America). AVN is also among the select group

of ‘certified members’ of Control System Integrators Association (‘CSIA’) and is also listed on the Control Engineering Magazine’s System

Integrator Hall of Fame.

AVN has been in the automation business for the last 24 years and has transformed into a 360 degree solution provider for automation,

energy management, service and maintenance. Servicing clients over a span of two decades, AVN has completed several projects for major

blue chip companies enabling it to earn strong credentials, move up the learning curve and develop a diverse client base. Going forward,

it intends to capitalize on its CORE strengths to expand its footprint in the Middle East by setting up offices in Qatar, Kingdom of Saudi

Arabia (KSA) and Oman.

ABOUT

World Headquarters 640 Rice Boulevard Exton, PA 19043 p: (610) 458-8700 f: (610) 458-0606 www.avanceon.com

HIGHWAY 50’sHighway 50 is our CORE commitment to Avanceon’s shareholders.

Highway 50 also builds towards its successful realization via its

Critical Goals:

• Live Our Brand

• Increase/ Retain highly trained Human Capital

• Reduce Variability in Our Execution of Our Processes

• Relationship and responsiveness for client success

• Drive after project sales & services

This involves increasing revenues to USD 50 million by 2018 and

implementing our critical goals including the creation of cross-functional

marketing and business development departments in Pakistan as well

as a focus on expanding business in the Middle East region – including

adding an office each in Qatar and the Kingdom of Saudi Arabia.

IN NUMBERSAchieving and sustaining USD 50 million of revenue will allow

us to be better positioned to gain more leverage and bargaining

power when winning bids with multi-national clients, and this will

provide for a more sustainable business. According to the ARC

Advisory Group, USD 50 million companies have more potential in

participating in larger projects such as Public Private Partnerships.

Highway 50’s takes into consideration the organic and geographical

growth of regional partnerships, not only by physical presence but

also by allowing proprietary products offered through Avanceon’s

Specialized Services team, which have been much successful in

Southern Asia.

Avanceon 4 |

GOAL 1 – LIVE OUR BRANDHighway 50’s commitment is also about focusing on driving the

organization towards market-based management, also defined

as service-centric marketing, to ensure customer satisfaction. The

same spirit has been encapsulated in the Customer Bill of Rights

and made possible via the V-Lifecycle process that Avanceon

implements seamlessly.

The Avanceon Brand Value statement differentiates itself through

total customer satisfaction by:

1. Focusing on the business value of improving quality as well

as productivity

2. Understanding that how we achieve our project is as

important as the actual achievement of the project

3. Offering customers a complete system of life cycle support,

training, valued engineering, thereby investing in the value of

partnership

Staying true to these across the Company’s value chain provides the

basis of Avanceon’s Brand.

• Value Engineering with creativity and innovation

• Project Management with teamwork and integrity

• Innovative application of technology and standards

• Agile use of resources with optimum capacity

• Quality and sustainable systems

GOAL 2 – INCREASE AND RETAIN HUMAN CAPITALThe second critical goal is based on Avanceon’s everlasting

commitment to Value its People. This translates as continuous

investment in enhancing and expanding their skills and expertise as

well as training in technology. At Avanceon, we believe that Human

Capital Knowledge is the basis of co-creating value. Key words

towards retention have always been: opportunity, security, ever-

improving work environment and now, to top-it-all, world-class

Employee Stock Option Plan.

GOAL 3 – REDUCE VARIABILITY IN PROCESSEXECUTIONThe third critical goal stems from the variability in execution.

This goal is to implement proper KPIs to continuously eliminate

process deviation. These measurements can then serve as base

for continuous process improvement. This is a key goal in reaching

customer delight in an efficient and agile way.

GOAL 4 – RELATIONSHIPS & RESPONSIVENESS FOR CLIENT SUCCESSClients’ delight is at the core of Highway 50. Contributing to our

Clients’ success is key to Avanceon’s own success.

Drivers have been summarized as follows:

• Having proactive and frank conversations

• Responding to clients’ needs

• Getting involved early in the process

• Addressing surprises

• Realizing opportunities

• Managing expectations

• Managing misperceptions

GOAL 5 – DRIVING AFTER PROJECT SALES & SERVICESAfter Project Sales and Services is one of the critical goals, which will

ensure that Avanceon reaches Highway 50 by 2018. Ultimately, all

the other goals build towards the accomplishment of this particular

one. For Avanceon, the end of the project is the start of a long-

term relationship because the best opportunities are with existing

customers. This in turn provides for continuous value-creation upon

completion of a project.

To secure this, recurring business has to consistently cover

Avanceon’s fixed costs. ‘Recurring business’ refers to repeated new

business and maintenance contracts for the same client from the

After Marketing Sales department. Most critical to all the initiative is

maintaining over 70% Employee Productivity of Billability.


INTEGRITY CANDOR

TEAM WORKAGILITY

CREATIVITYQUALITY

SUSTAINABILITY

Avanceon 6 |

MISSIONOur mission is to passionately grow to be the leader of

engineered solutions through inspired development of our teams

and providing the best value to our customers.

MANTRA‘Tomorrow’s Solutions Today’, our mantra is our everlasting

commitment to always move forward and ensure that we always

co-create value with each and every one of our stakeholders.

VALUESOur values are deeply rooted within Avanceon and act as

guide in building Value with both our internal and external

stakeholders. These are the beliefs, which drive our conduct

and serves as base of our business.

PHILOSOPHY


Our core values represent who we are and define how we work together towards meeting common goals and achieving success.

Integrity, Candor, Teamwork, Agility, Creativity, Quality and Sustainability

Being ethically unyielding and honest in the way we carry out business in a pro-active and sustainable

way without needing third party monitoring. The TRACE certificate is an example of our integrity.

BUSINESSCONDUCTCORE VALUES

OWNERSHIPOwnership is acting with stewardship to build a better, stronger

and more dynamic anticipated visionary organization.

CUSTOMER FOCUS WITH CUSTOMER DELIGHTKnowing our customers and believing in customer delight, always

anticipating their needs, and being responsive to deliver the best

value internally and externally with innovation.

CONTINUOUS IMPROVEMENTWe foster collaboration, innovation and creativity. We have a

passion for challenges as highly trained individuals and as well-

coordinated teams.

COMMUNITY CAREMaking a positive difference in the lives of the people within the

society we work with and within the communities we operate in,

through sound and impactful investments.

Avanceon 8 |

TRACE CERTIFICATION As at October 1, 2013, Avanceon has been TRACE certified.

“TRACE CERTIFICATION is the comprehensive due diligence

review and approval process that eliminates screening costs

for multinationals and provides certified entities with portable

compliance information. It is the only due diligence review, analysis

and approval process available that allows third parties to own

their verified due diligence reports. The candidate is required

to complete a mandatory anti-bribery training course, adopt

an anti-bribery code of conduct and update their due diligence

information annually. A review that reaches completion will result

in the certification of the third party by TRACE. Certification by

TRACE signifies that the candidate has completed internationally

accepted due diligence procedures and has been forthcoming

and cooperative during the review process. TRACE Certified

companies are ‘pre-vetted’ partners for multinational companies

seeking to do business with suppliers who share their commitment

to transparent business practices.”

CUSTOMER BILL OF RIGHTSAvanceon’s Customer Bill of Rights encapsulates the Company’s

commitment towards its valued customer.

CUSTOMER RELATIONSHIP BILL OF RIGHTS• A harmonious and professional business relationship

• A prompt and honest response to all questions

• Superior product and solution performance

• Superior service and support excellence

• Quality supplies and materials

• Professional innovative and expert guidance

• Every Avanceon Associate will manage the customer’s

money as they would their own

• Courteous treatment from every Avanceon employee and partner

• To be heard

CUSTOMER PROJECT BILL OF RIGHTS• To set specific objectives for the project and have them followed

• To know how long the project will take and how much it will cost

• To decide which features are in and which are out

• To make reasonable changes to the requirements throughout

the course of the project and to know, up front, the cost of

making those changes

• To know the project’s status clearly, timely and confidently

• To be apprised regularly of risks that could affect cost,

schedule and quality, as well as to be provided options for

addressing potential risks

• To have access to project deliverables throughout the project

• To address system acceptance and the human side of change

adoption that every project brings prior to implementation

• To have a plan and option for post project support


CORE SERVICES AUTOMATION – The Company provides a wide range of

automation solutions. We have an extensive track record of

execution in diverse application environments combined with

an understanding of technology trends and industry standards.

Our automation solutions address client requirements such as

complexity in handling multiple products, regulatory requirements

and the need for safety, productivity and improved throughput.

AVN’s automation solutions span across several industries including:

• Oil & Gas: Assist companies in implementation of Supervisory,

Control and Data Acquisition [SCADA] solutions

• Food and Beverages: Assist companies to standardize

products and meet precise recipe formulas.

• Power : Enable companies to achieve energy efficiencies

and improve utilization.

• Chemicals: Assist companies in design, development and

improvement of process flows allowing them to increase

profitability and to ensure sustainability during periods of

low economic growth.

• Cement: Assist companies in reducing energy costs and in

achieving energy optimization.

In order to successfully deliver a compelling value proposition,

Avanceon has developed a set of pre-designed and pre-tested

process standards, software codes and supporting documentation

designed to address the client’s technical requirements.

PROCESS CONTROL – Process Control services include

consulting for automation planning and specification development,

process equipment selection and Original Equipment Manufacturer

[OEM] management, electrical and mechanical systems engineering

as well as design and long-term factory support. AVN provides the

following services:

• Batch Engineering: Assist clients in application of the

S88.01 standards which provide a template for meeting

the standard of “best practices” based on their internal

processes.

• Distributed Control System: Provide turnkey

instrumentation and control solutions for a manufacturing

or process facility using Distributed Control Systems [DCS]

or Programmable Logic Controller [PLC] systems with field

integration on multiple protocols

SYSTEM INTEGRATION – The Company offers a full service

platform, independent systems integration offering. We also have

extensive experience in designing, developing and executing

both process and manufacturing controls as well as automation

solutions, which include enterprise level integration. Our solutions

are designed to meet the specific manufacturing requirements

of clients using a choice of “Best in Class” technology platforms

such as Allen Bradley PLC, Honeywell DCS, Invensys Archestra,

Schneider and Microsoft technologies.

PORTFOLIOAvanceon 10 |

SPECIALIZED SOLUTIONSMANUFACTURING EXECUTION – The Company offers

extensive experience in designing, developing and implementing

Manufacturing Execution Systems [MES] that provide real-time

monitoring of quality and productivity to operators, supervisors,

managers and executives. MES solutions apply data collection and

management capabilities to manufacturing processes which aid in

improving productivity, quality and process visibility. MES solutions

facilitate clients to unlock the potential for efficiency savings in

areas such as scheduling, inventory control, product traceability,

downtime, uptime, product specification management and key

performance tracking. Key solutions offered under MES include:

• Overall Equipment Effectiveness [OEE]: AVN assists clients in

closing the technology gap that exists between an enterprise’s

manufacturing floor and its Information and Enterprise

Resource Planning (ERP) systems. These solutions span

strategic technology planning, the establishment of internal

practices & standards, and managing and executing IT projects.

• Mobile Solutions: Mobile computing solutions allows clients

to create, access, process, store and communicate information

without being constrained to a single location.

• Hazard Analysis Critical Control Point [HACCP]: HACCP is

a food industry safety program developed to help prevent

food contamination and enable more efficient government

oversight of the food production process.

The following solutions are widely demanded in Oil & Gas

(both upstream and downstream), Petrochemicals, Chemicals,

Pharmaceuticals, Pulp, Paper and Printing, Metals, Cement and Power.

To ensure increased revenues, reduced operating costs and improved

efficiencies for manufacturers, Avanceon provides solutions in:

• Manufacturing Execution Systems

• Plant Information Management Systems

• Real-time process optimization through Advanced Process

Control technologies

• Customized Software Development services for process and

manufacturing industries

AVN supports manufacturers in the complete lifecycle

implementation of an MES application from systems and

requirements definition to technology selection, pilot phase,

implementation and rollout. AVN supports all phases of the MES

implementation. As such, we utilise superior project and change

management methodology in line with the initial MES vision and

the existing context. It has the ability to help manufacturers define

MES standards and practices that provide the overall structure and

strategy for company-wide rollout and adoption.

PLANT INFORMATION MANAGEMENT SYSTEM –Avanceon offers scalable and extensible software information

management to decision makers to visualize and analyse their

processes faster and more effectively, which:

• Collects real-time data from multiple process control

systems

• Archives data for longer term

• Delivers secure and reliable plant floor information


Our information management tools create custom displays for

process and operations data, including schematics, animations, trends,

alerts, notifications and custom reports.

ADVANCED PROCESS CONTROL – The key challenge

for operators of refining, chemical and petrochemical plants is

to maintain processes at their optimal operating point while

simultaneously maintaining multiple safety margins at acceptable

levels. Our solutions helped customers achieve:

• Improved product yield

• Reduced specific energy consumption

• Increased throughput capacity

• Improved product quality and consistency

• Reduced environmental emissions

By implementing advanced process control, benefits ranging from

1-2 years of return on investments can be achieved. These benefits

are clearly enormous allowing plants to be operated to their

designed capacity and increasing customer bottom line.

ENERGY MANAGEMENT SOLUTION [EMS] – EMS consists

of turnkey energy management and optimization solutions.

These are robust and certified solutions developed using best

practices and enable significant improvements in monitoring

controls and management of existing utility and process control

systems; providing saving opportunities in steam, pneumatics, fluid

movement, chilling and heating to reduce losses in production and

carbon emission. The Company has developed proprietary EMS

suites such as:

• Energy Dashboard: A complete service offering platform for

the monitoring of energy consumption in different business

units of a plant remotely from anywhere in the world

• iWater: Water is a big energy cost-center in most industries.

Through iWater, AVN offers a proprietary solution, which

reduces energy consumption.

• iBoiler : Helps clients optimize their boiler performance. It

measures and reduces fuel usage of boilers through optimized

load sharing and reduced emission and steam distribution

losses.

• iAir : Measures and reduces electricity usage of air compressors

through optimized load sharing, reduced header pressure,

elimination of leaks and pressure drops and heat recovery.

• iDC: An energy management package for District

Cooling Systems.

Avanceon 12 |

AFTER MARKET SOLUTIONSAfter Market Solutions [AMS] provide complete lifecycle support services including: manufacturing technical support, maintenance

management, control system oversight and remote diagnostic services to maximize plant uptime performance, support efficiency and

technology effectiveness. AVN delivers its AMS services through a combination of call centers which enable the problem to be identified

and resolved either through on-site maintenance or remotely. These solutions are offered with 24/7 support and guaranteed response

time allowing AVN to stay ahead of its competitors.

SERVICE LEVEL AGREEMENTS [SLA] – SLAs allow AVN to

offer after market support solutions on a contractual basis and

enables it to generate recurring revenues following completion

of CORE services. Technical teams schedule an assessment of the

facility to determine service needs, conduct an in-depth interview

and then submit a service proposal. The proposal provides specific

SLAs and prices that are tailored to the customer. These SLAs are

offered with the option to maintain an inventory of spares i.e.

Gold contracts or as plain vanilla services i.e. Silver Contracts.

STRATEGIC SITE IMPROVEMENT PROGRAMS – AMS

team prepares ‘readiness for disaster recovery’ by maintaining

up-to-date systems documentation and control & system

software archives. The team also implements ‘Best Practices’

by maintaining instrumentation maintenance schedules and

calibration procedures.

TRAINING SOLUTIONS FOR MANUFACTURING – Quality

training addresses early assessment, information development,

delivery and results verification. AVN’s training, adapted to

address the client’s business needs, is based on the client’s overall

business goals and serves as an inexpensive alternative to address

many quality and inefficiency issues.

EMERGENCY RESPONSE SUPPORT – Designated team of

expert(s) reach on site within an agreed time frame to address

an emergency. It also includes Crises Management service which

is developed for risk mitigation and disaster recovery plans for

manufacturing control base.


Name of the company Avanceon LimitedYear of Compliance From January 1, 2013 to December 31, 2013

This statement is being presented to comply with the Code of Corporate Governance contained for the purpose of establishing a framework

of good governance, whereby a public limited company is managed in compliance with the best practices of corporate governance.

The Company has applied the principles contained in the Code in the following manner:

1. The Company encourages representation of independent non-executive directors and directors representing minority interests on its

Board of Directors. At present the Board has following structure:

Sr. No. Name of Director Category of Directors Independent Non-Executive Executive

(3) (5) (2)

1 Mr. Bakhtiar H Wain n/a n/a Yes

2 Mr. Kahlid H Wain n/a Yes n/a

3 Mr. Amir W Wain n/a Yes n/a

4 Mr. Tanveer Karamat n/a n/a Yes

5 Mr. Tajammul Hussain Yes Yes n/a

6 Mr. Umar Ahsan Khan Yes Yes n/a

7 Mr. Naveed A Baig Yes Yes n/a

2. The directors have confirmed that none of them is serving as a director in more than ten listed companies, including this Company.

3. All the resident directors of the Company are registered as taxpayers and none of them has defaulted in payment of any loan to a

banking company, a DFI or an NBFI or, being a member of a stock exchange, has been declared as a defaulter by that stock exchange.

4. The Company has prepared a ‘Statement of Ethics and Business Practices’, which has been signed by seven out of nine directors and

majority of the employees of the Company.

5. The Board has developed a vision/mission statement, overall corporate strategy and significant policies of the Company. A complete

record of particulars of significant policies along with the dates on which they were approved or amended has been maintained.

6. All the powers of the Board have been duly exercised and decisions on material transactions, including appointment and determination

of remuneration and terms and conditions of employment of the CEO have been taken by the Board.

7. The meetings of the Board were presided over by the Chairman and, in his absence, by one of the directors present elected by the

Board for this purpose and the Board met at least once in every quarter. Written notices of the Board meetings, along with agenda

and working papers, were circulated at least seven days before the meetings. The minutes of the meetings were appropriately recorded

and circulated.

STATEMENTOF COMPLIANCE

WITH THE CODE OF CORPORATE GOVERNANCE

Avanceon 14 |

8. The appointments of CFO, Company Secretary and Internal Audit (Outsourced), including their remuneration and terms and conditions

of employment & contract have been duly approved by the Board. The positions of the CFO and Company Secretary were held by

the same person during compliance period.

9. The Directors’ Report for this year has been voluntarily prepared in compliance with the requirements of the Code and filed with

SECP.

10. The financial statements of the Company were duly endorsed by CEO and CFO before approval of the Board.

11. The directors, CEO and executives do not hold any interest in the shares of the Company other than that disclosed in the pattern of

shareholding.

12. The Company has complied with all the corporate and financial reporting requirements of the Code.

13. The related party transactions have been placed before the audit committee and approved by the board of directors with necessary

justifications for non-arm’s length transactions and pricing methods for transactions that were made on terms equivalent to those that

prevail in the arm’s length transactions that were made on terms equivalent to those that prevail in the arm’s length transactions only

if such terms can be substantiated.

14. The Board has formed an audit committee. It comprises four members, all of whom are non-executive directors including the

Chairman of the committee.

15. The meetings of the audit committee were held at least once every quarter prior to approval of interim and final results of the

Company and as required by the Code. The terms of reference of the committee have been formed and advised to the committee

for compliance.

16. The Board has set-up an effective internal audit function who are considered suitably qualified and experienced for the purpose and

are conversant with the policies and procedures of the Company and they are involved in the internal audit function on a full time

basis.

17. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the Quality Control

Review programme of the Institute of Chartered Accountants of Pakistan, that they or any of the partners of the firm, their spouses

and minor children do not hold shares of the Company and that the firm and all its partners are in compliance with International

Federation of Accountants (IFAC) guidelines on code of ethics as adopted by Institute of Chartered Accountants of Pakistan.

18. The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance

with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard.

Chairman Chief Executive

Mr. Khalid Hameed Wain Mr. Bakthiar Hameed Wain


Avanceon 16 |

CORPORATE GOVERNANCE

ANDMANAGEMENT

SECTION II


Khalid H. Wain Chairman

Khalid brings over 38 years of international sound expertise in

electrical engineering, cost engineering, project management and

business strategy to the Avanceon board of directors. Khalid

currently holds the position of VP at H&G Control, which he owns

and operates in Canada. H&G Control designs and manufactures

customized electrical control panels. He is also the co-founding

partner and director of Innovative Pvt. Ltd in Pakistan. Khalid

graduated in electrical engineering from University of Engineering,

Lahore, in 1976. His entrepreneurial acumen led him to drive

business in South Asia, the Middle East, the United States and now

Canada. Khalid Wain was selected as Chairman of the Board for

his international business knowledge and extensive experience of

companies in the technological sphere.

Bakhtiar H. WainFounder and Chief Executive Officer

Brings over 28 years of exemplary leadership. An engineer with

experience within leading global companies such as Exxon

Chemicals, Fauji Fertilizer and ICI Ltd. He founded Avanceon in

1984 and holds the position of Chief Executive Officer today.

His entrepreneurial drive found its roots in his faith towards the

educated and technically qualified human resources of Pakistan.

At the onset, he wanted to build a company that could capitalize

and promote this conviction globally, which he has implemented

successfully ever since. Appointed CEO by the Board of Directors,

he has spearheaded Avanceon towards market leadership in

Pakistan and beyond.

DIRECTORS’PROFILE

Tanveer Karamat Chief Operating Officer

Brings a wealth of international business experience to

Avanceon. 20 out of 28 years were spent in selling automation

solutions to the oil and gas sector. After receiving a Bachelor’s

degree in Chemical Engineering from the University of Punjab

he embarked on his career as an Application Engineer at Zelin

PVT Ltd in 1986. Developing his sales, management and business

skills at key industry companies such as Wartsila NSD as well as

Honeywell where he held the position of Country Head, Tanveer

joined Avanceon in 2003 as Regional Manager. He transformed

the South Region revenues in less than three years with wise

strategic counsel, capitalising on a dormant customer base and

an internal reshuffle. He was promoted to GM Operations in

2006 before becoming COO in 2011. Over the past decade,

Tanveer’s leadership has been a major contribution towards

building company value. He was included as member of the

Board of Directors to help the board make informed decisions.

Amir W. WainDirector

Brings over 25 years of international expertise within the information

technology and payments industries. Amir is founder and CEO of i2c,

a global provider of payment processing and emerging commerce

solutions, where he is responsible for defining the company’s vision

and strategic direction. After graduating from the University of

Texas with a Computer Science and Engineering degree, Amir

founded Innovative Private Limited in 1987. Propelled by the success

of Innovative, he founded i2c in 2001 to bring next-generation

processing solutions to the payments industry. Under Amir’s guidance,

i2c has expanded dramatically and brought a number of industry

firsts to market, including card-linked offers, event-driven account

holder communications and gift card voice personalization. Today, as

market opportunities for payments & emerging commerce expand

at a dramatic rate, Amir is leading i2c’s continued push to innovate

the enabling infrastructure and solutions that transform commerce.

He was appointed to the Avanceon Board of Directors to advise on

innovation and business strategy..

Avanceon 18 |

Tajammal HussainDirector

Brings 25 years of international accounting and finance acumen

to the Avanceon Board of Directors. Practicing as a Chartered

Accountant with Fakharuddin Yousafali & Co since 1989, Tajammal

oversees and maintains high quality outsourcing, financial and

accounting services to a wide variety of global and local commercial

enterprises. Tajammal Hussain comes with a broad spectrum of

expertise and, besides Avanceon, he also sits on the boards of

Xavor Pakistan and Kashf Foundation. He also holds an MPhil from

the University of Cambridge and BSc from the London School

of Economics & Political Science both in Economics and qualified

as a Chartered Accountant in 1988 from the UK. Tajammal was

selected as director because of his integrity and the values that

he shares with the Company. He advises on risk management and

financial strategy, which are amongst the strengths he brings to the

Avanceon Board.

Naveed Ali Baig Director

Brings over 28 years of international business acumen to the

Avanceon board of directors. Having 11 years of achievements as

Chief Operating officer, Naveed was appointed Chief Executive

Officer at Innovative Pvt in 2011, where he spearheads the success

of his company through sound employee-centric management.

Prior to joining Innovative, he worked for multi-nationals such

as Gallup International and Ferguson Associates, affiliate of

PriceWaterhouseCoopers. He did his post-graduate studies in

Systems Analysis and Design from IBA. Naveed was selected as

director because of his constructive and inspiring leadership, which

are amongst the strengths he shares with the Avanceon Board.

Umar Ahsan KhanDirector

Brings over 24 years of strategic accounting, finance and business

management experience to the Avanceon Board of Directors.

He currently holds the position of Chief Financial Officer of the

Dawlance Group, which is the leading home appliances company

in Pakistan. Umar oversees and supports all aspects of the group,

which has a direct impact on its financial performance. Umar has

been the key catalyst as advisor for business process reengineering

and group restructuring over the past 4 years. Prior to joining

Dawlance, he had worked his way up from trainee to corporate

finance manager at ICI Pakistan Limited, which was then a part

of the Fortune 500 company, Akzo Nobel. He holds a BSc and

an MSc in Accounting and Finance from the London School of

Economics & Political Science. Umar was appointed as a director

because of his strategic and hands-on perspective of business and

financial management, which are amongst the strengths he brings

to the Avanceon Board.


CORPORATE GOVERNANCE POLICY

Corporate governance is a system of structures and processes for the direction and control of organizations. It is a process through which balance of duties and responsibilities between shareholders, management and the board are defined, enabling an organization to maintain the right balance of power and accountability while striving to achieve its objective of enhancing shareholder value.

COMPOSITION OF BOARD AND DIRECTORS’ INDEPENDENCEIn line with good governance practice, the Chairman of the Board is

a non-executive director representing minority interest. The Board

comprises of 7 directors out of which 5 are non-executive directors,

including 3 representing minority interests. The roles of The

Chairman and the CEO have been clearly defined and segregated.

The CEO is responsible for operations of the Company whereas

the board under the Chairman performs oversight responsibilities.

PERFORMANCE EVALUATION OF THE BOARDThe Board has set the following broad criteria for evaluation of its

performance being the trustee of the shareholders:

• Review of the business risks, strategic plans, significant policies,

financial structure, monitoring and approval

• Monitor Company’s performance against the planned

objectives and advise the management on strategic initiatives

• Ensuring maximum attendance at board meetings to enhance

the quality of decision making as well as effective discharge of

its roles & responsibilities

• Compliance with the applicable laws & regulations including

the Memorandum and Articles of Association of the Company

• Ensuring orientation of the Board of directors including new

appointments so that each member is fully aware of his roles

& responsibilities

• Establishing adequate internal control system in the Company

and it’s regular assessment through internal audit activities

MANAGEMENT INITIATIVES ON CORPORATE GOVERNANCEIn order to orient the key management personnel of the corporate

governance concepts and best practices, the Company conducted

two workshops where different moderators covered varied topics

on corporate governance: the role, importance & structure of

the Board; strategic planning through various models and analysis

matrices; succession planning; risk management and internal controls.

ETHICSEthics are an integral part of the culture at Avanceon & guide the

behavior and conduct of all employees enabling them to meet

objectives efficiently, transparently and fairly. There is a comprehensive,

well-structured ethics program, based on a code of conduct, which

has been approved by the Board and is applicable to all employees.

The ethics program includes:

• Code of ethics

• Training for employees

• Means of communicating

• Mechanism to report wrongdoing

• System for detection and conducting inquiries

• Taking corrective action

The code of ethics is supplemented by various function specific

codes, which include:

Avanceon 20 |

We have a comprehensive,

well-structured ethics p

rogram, based on a

code of conduct.

Financial code of ethics –This code defines the acts and omissions

to be followed by senior executives, especially those responsible for

public disclosure and financial information.

Early warning procedure – The Company has an elaborate

whistle blowing policy, relative to financial, accounting, internal

control and anticorruption matters. Global as well as local channels

are defined for employees to communicate their concerns.

Principles of good promotional practices – Defines the

fundamental promotional rules recommended by the consulting firms.

Personal data protection charter – This charter outlines

Avanceon corporate rules for the collection, processing, use

dissemination, transfer, and storage of personal data in order to

secure an adequate level of protection within the Avanceon group.

Code for prevention on insider trading – Defines rules for

prevention of insider trading with Avanceon.

Ethical charter for clients – This document defines the rules

applicable to and the behaviour required from all Avanceon

employees who are involved in the business process with clients.


INTEGRITYAvanceon does not use bribe as an instrument for any business or

financial gain. Employees are not authorized to give or receive any

gift or payment which may be construed as such. Employees are also

required to avoid engaging in any personal activity or financial interests/

gains which would conflict with their responsibility to the Company.

ROLE OF THE BOARD OF DIRECTORSThe Board has a fiduciary responsibility for the proper direction and

control of the activities of the Company. This responsibility includes

such areas of stewardship as the identification and control of the

Company’s business risks, the integrity of management information

systems and clear, transparent reporting to shareholders. The Board

accepts its primary responsibility for the overall control architecture of

the Company. However, it recognizes that the internal control system

has to be cost effective and that no cost effective system will preclude

all errors or irregularities. The system is based upon written procedures,

policies, guidelines, an organogram that provides an appropriate

division of responsibility, a program of internal audit, manning of all key

functions by qualified personnel and constant training.

BOARD OF DIRECTORS REMUNERATIONMajority of directors of the Company are Non-Executive except

for the Chief Executive Officer (CEO) and Chief Operating

officer (COO). The CEO and COO are paid fixed salaries as per

Company’s HR policies and salary levels; performance of CEO

& COO are evaluated against approved criteria by the Human

Resource and Remuneration Committee and recommended to the

Board for approval. No other directors are being paid for attending

board meetings.

CODE OF CONDUCTThe Board has adopted a code of conduct for its members,

executives and staff, specifying the business standards and ethical

considerations in conducting its business. The code includes:

• Corporate governance

• Relationship with employees, customers and regulators

• Confidentiality of information

• Trading in Company’s shares

• Environmental responsibilities

BUSINESS GOVERNING PRINCIPLES & VALUES

Avanceon [AVN] conducts its business in a responsible manner and with honesty, and integrity. We also have the same expectations from all those with whom we have relationships. We insist on doing what is right which sets the tone of our actions and underpins the functioning of our employees. We also insist that all transactions be open, transparent and within the legal framework culminating in responsible and accurate financial reporting.

Avanceon 22 |

COMMITTEESThe Board has constituted the following committees:

• Audit Committee

• Human Resource and Remuneration Committee

• Governance and Evaluation Committee

Through its committees, the Board provides proactive oversight in some of the key areas of business and the performance of CEO. The

Board regularly reviews the respective charters of these committees.

AUDIT COMMITTEEThe Audit Committee operates under a charter approved by the

Board. The governing charter of the Audit Committee addresses

the requirement of the code of corporate governance issued by

the SECP and includes the requirements of best practices. The

Committee is accountable to the Board for the recommendation

of appointment of external auditors, directing and monitoring

the audit function and reviewing the adequacy and quality of the

audit process. The CEO and CFO are responsible for the accuracy

of financial information for inclusion in the annual report; the

Committee provides the Board with additional assurance.

The Committee also ensures that the Company has an effective

internal control framework. These controls include safe-guarding of

assets, maintaining of proper accounting records complying with

legislation and ensuring the reliability of financial information.

HUMAN RESOURCE AND REMUNERATION COMMITTEE (HR & R)The HR & R Committee reviews the human resource architecture

of the Company and addresses the requirement of the Code of

Corporate Governance. The Committee has been constituted

to address and improve the crucial area of human resource

development. Its aim is to assist the Board and guide the

management in the formulation of the market driven HR policies

regarding performance management, HR staffing, compensation

and benefits. The expanded role of the Committee is to review

CEO performance and recommend CEO compensation for

the approval of the Board. Further, the selection, evaluation and

compensation of COO, CFO, Company Secretary and Internal

Audit function is also reviewed and recommended to the Board

by the Committee.

GOVERNANCE AND EVALUATION COMMITTEEThe role of Governance and Evaluation Committee is to assist the

Board in the discharge of its function as well as compliance with the

Company’s governing principles. The Committee takes a leadership

role in shaping the code of business conduct (governing principles)

in order to keep them in line with International best practices.

The committee will also monitor compliance with the Code of

Corporate Governance other than those areas which fall under the

oversight of the Audit Committee. The Committee also reviews

from time to time, the adequacy of succession and alignment of

key factors with the Company strategy. Further, the Committee

evaluates the Board’s Performance in line with the methodology

approved by the Board and recommends the same to the Board

for their review and approval.

BUSINESS STRATEGY COMMITTEE(As disclosed in corporate strategy section)


RESPONSIBILITY TO STAKEHOLDERSOur primary purpose is to run our business efficiently and profitably to enhance shareholders’ value but we do it with responsibility to all

stakeholders. Profitability is essential to discharge this responsibility and the corporate resources are primarily deployed in the achievement

of this end. However, the Company does not operate in isolation with its environment and accordingly feels responsible to all stakeholders

which are:

• Our Shareholders: To protect shareholders’ investments and provide an acceptable return to them

• Our Customers: To win and maintain customers by developing and providing products and services, which offer value in terms of price,

quality, safety and environmental impact supported by requisite technological expertise

• Our People: To respect the human and legal rights of its employees with good and safe conditions of work and competitive terms of

service

• Our Business Partners: To seek mutually beneficial relationships with contractors and suppliers of goods and services to the Company

• Our Society: To conduct business as a responsible member of society, to observe laws, express support for basic human rights and give

proper regard to health, safety and environment not only at our various campuses but also beyond, extending it to society at large

SERVICE TO SOCIETYWe are committed to be active as responsible corporate citizens. We believe in “giving something back” by helping address issues such

as education, healthcare, public safety, environmental health etc. This is also arising from our belief that individual entities when they work

together can create powerful synergies and help to improve the conditions of the society in which they are operating.

HEALTH, SAFETY AND ENVIRONMENTAt AVN, we take maintenance of health and safety standards at our

working sites and offices seriously. We are committed to actively

managing health and safety risks associated with our business

and are actively working towards improving our procedures to

reduce, remove or control the risk of fire, accidents or injuries to

employees and visitors.

We ensure that our equipments and engineering solutions are

shipped in a safe manner complying with the safety standards and

legal requirements.

ROLE OF SHAREHOLDERSThe Board aims to ensure that shareholders are informed of all

major developments affecting the Company’s state of affairs.

Information is communicated to the shareholders in the annual

report, interim quarterly reports and through information portal of

Karachi Stock Exchange and Lahore Stock Exchange as and when

required. The Board encourages the shareholders’ participation at

the Annual General Meetings to ensure a high level of accountability

and participation. This is why we are arranging our AGM in Karachi

instead of Lahore, since majority of our retail investors belong to

Karachi. The Company’s financial statements are available on the

Company’s website and an officer is designated to answer all

shareholder enquiries.

Avanceon 24 |

CORPORATE STRATEGYOur strategy setting and reviews are conducted annually by a

designated Business Strategy Committee that drives and channels

the process.

The Committee, comprising of our executive team, conducts an

extensive ‘SWOT analysis’ regarding the business, by assessing

internal and external issues and dependencies, counter measures,

new opportunities and strengths. Using Balanced Scorecard

approach, the Committee agrees on a strategic direction and

objectives under the four defined perspectives:

1. Financial & Customer Perspective

2. Internal / Operational Perspective, and

3. Innovation / Learning Perspective

At the core of strategy review and development process is

alignment with our mission, vision and values. The process of

translating the vision helps the leadership team build a consensus

around the organization’s vision and strategy that helps to align

operational terms that provide useful guides to action at the local

and unit levels.

To enable our people to act on the vision and strategy, we close in

on integrated set of objectives and measures, agreed upon by all

senior executives, which describe the long-term drivers of success

for our business. The Business Strategy Committee ensures that

everyone understands the long term goal of the Company and

that departmental and individual goals are aligned with them. We

measure and realign performance at the individual, departmental

and entity level through regular feedback enabling real time learning

and calibration.

Enhancing shareholder value through cost and quality leadership

lies at the core of our corporate strategic objectives. We do this by

ensuring that we hold strong to our mission and values by acting

responsibly, maintaining cost and quality leadership and seeking

to attract, develop and retain talent. Our operational strategy is

centred on:

• Customer Focus

• Strong capital and financial position

• Conservative, sound risk management

• Operational agility: people development and process

improvement to enhance quality and productivity

• Ethical behavior, observing the letter and the spirit of rules and

regulations

• Leveraging our human capital alongside information systems

infrastructure

HOLDING STRUCTURE

AVANCEONLIMITED

PAKISTAN

AVANCEON FZE 100%

UNITED ARAB EMIRATES

AVANCEONLP 26%

UNITED STATES

AVANCEONGP 26%

UNITED STATES


COREMANAGEMENT

CEO

GM QatarCountry Manager(UAE)

Project Manager(UAE)

BusinessManagerSoftware

Development

ManagerIX

Team Leads IX

ProjectManagers

North

EngineeringTeam on

InternationalAssignments

SoftwareDevelopment

Pool

IXDevelopment

PoolTeam Lead

TraineeEngineers

ApplicationEngineers

Pool

Manager Engineering

Manager International

Projects

Marketing Head

BusinessDevelopment

Lead

UAE Business Support Staff

COO

Avanceon 26 |

CHIEF EXECUTIVE OFFICERBakhtiar H. WainFounder and Chief Executive Officer

Brings over 28 years of exemplary leadership. An engineer with experience within leading global companies such as Exxon Chemicals, Fauji

Fertilizer and ICI Ltd. He founded Avanceon in 1984 and holds position of Chief Executive Officer today. His entrepreneurial drive found its

roots in his faith towards the educated and technically qualified human resources of Pakistan. At the onset, he wanted to build a company

that could capitalize and promote this conviction globally, which he has implemented successfully ever since. Appointed CEO by the Board

of Directors, he has spearheaded Avanceon towards market leadership in Pakistan and beyond.

InformationTechnology

RecruitmentTraining

&Development

Comp & Ben Travelling

Administration

Admin Lead Infrastructure

Admin Pool Support

HumanResources

Financial Controller

Manager ERPCorporate

Manager HR

Engineering and Support Hiearchy


CHIEF OPERATING OFFICERTanveer KaramatChief Operating Office

Brings a wealth of international business experience to Avanceon. 20 out of 28 years were spent in selling automation solutions to the oil

and gas sector. After receiving a Bachelor’s degree in Chemical Engineering from the University of Punjab he embarked on his career as

an Application Engineer at Zelin Pvt. Ltd in 1986. Developing his sales, management and business skills at key industry companies such as

Wartsila NSD as well as Honeywell where he held the position of Country Head, Tanveer joined Avanceon in 2003 as Regional Manager.

He transformed the South Region revenues in less than three years with wise strategic counsel, capitalising on a dormant customer base

and an internal reshuffle. He was promoted to GM Operations in 2006 before becoming COO in 2011. Over the past decade, Tanveer’s

leadership has been a major contribution towards building company value. He was included as member of the Board of Directors to help

the board make informed decisions.

Core Services - Sales Hierarchy

COO

General ManagerSales & Marketing

ABSBusiness Manager

Sales Team Sales Team RemoteProposal Team

Sales Team Sales Team

Systems ABS/Products

ProductsManager

SystemManager

RegionalManager - South

North South

Avanceon 28 |

Specialized Services - Sales Hierarchy

COO

HES North SouthBusiness Manager

EMS North SouthBusiness Manager

AMSManager

EnergyEngineer

ManagerEMS

AMSTeam

AMSTeam

AMSNorth

AMSSouth


2013 2012 ------ (Rupees in ,000) ------Operating results (standalone)

Profit before tax 463,467 538,075*

Provision for taxation (24,949) (28,764)

Profit after taxation 438,518 509,312

*Rs. 190m restructuring gain is included

Subsequent AppropriationsThe Directors have recommended a cash dividend of Rs. 151 million (2012: Rs. Nil) per share along with a 5% bonus issue (2012: 88.75%).

According to the following appropriations have been made:

Profit available for Appropriation 453,974 414,646

Appropriation:

Proposed dividend @ 20% (2012: Nil) (151,000) Nil

Reserve for issuance of Bonus Share @ 5% (2012; Nil) ( 37.750) (355,000)

Unappropriated profits carried forward 265,224 59,646

Operating results (consolidated)

Profit before tax 436,242 791,356*

Provision for taxation (24,949) (28,764)

Profit after taxation 411,293 762,592

*Rs. 190m restructuring gain is included

DIRECTORS’REPORT

THE REPORT

The Directors of the Company take pleasure in presenting their report together with the Company’s audited annual financial statements for the year ended December 31, 2013. The Directors’ Report, prepared under section 236 of the Companies Ordinance, 1984 will be put forward to the members at the 11th Annual General Meeting of the Company to be held on April 22, 2014.

Avanceon 30 |

EARNINGS PER SHARE (STANDALONE)The basic earnings per share after tax is Rs. 5.81(2012: Rs. 6.75)

EARNINGS PER SHARE (CONSOLIDATED)The basic earnings per share after tax is Rs. 5.45(2012: Rs. 10.10)

IPO AND EMPLOYEE SHARE OPTION SCHEME (ESOS) During the year, the company offered 25.166 million ordinary

shares in order to achieve business objectives of profile

uplifting, employee retention through Employee Share Option

Scheme (ESOS) and business expansion & capacity building.

Out of these, 18.875 million shares were subscribed through

Book Building process at a price of Rs. 14 per share and the

remaining share of 6.292 million were offered to the general

public at the same price. Book Building and the public issue

were both over-subscribed respectively which reflects the

investors’ confidence in the Company’s future. Before IPO, the

Company offered 4.2 million shares options under Avanceon

Employee Share Options Scheme of the Company at minimum

of Rs. 1 (with 90% discount to the face value).

BOARD OF DIRECTORS The Board comprises of two executive and five non-executive

directors including three independent directors. All the

directors keenly take interest in the proper stewardship

of the Company’s affairs. The non-executive directors are

independent of management of the Company.

STATEMENT OF DIRECTORS’ RESPONSIBILITIESThe Board regularly reviews the Company’s strategic direction.

Annual plans and performance targets for business are set by

the Chief Executive and are reviewed in total by the Board

in the light of the Company’s overall objectives. The Board is

committed to maintain the high standard of good corporate

governance. The Company has been in compliance with the

provisions set out by the Securities and Exchange Commission

of Pakistan and accordingly amended listing rules of the stock

exchanges.

Following are the Statements on Corporate and Financial

Repor ting Framework:

a) The financial statements, prepared by the management of the

Company, present its state of affairs fairly, the results of its

operations, cash flows and changes in equity.

b) Proper books of accounts have been maintained by the Company

c) Appropriate accounting policies have been consistently

applied in preparation of financial statements and accounting

estimates are based on reasonable and prudent judgment.

d) International Financial Reporting Standards, as applicable in Pakistan,

have been followed in preparation of financial statements.

e) The system of internal control is sound in design and has been

effectively implemented and monitored.

f) There are no doubts upon the Company’s ability to continue

as going concern.

g) There has been no material departure from the best practices of

the Corporate Governance, as detailed in the listing regulations.


THE CORPORATE GOVERNANCE PRACTICESThe Board of Directors of Avanceon is committed to the principles

of good Corporate Governance. The stakeholders expect that

the Company is managed and supervised responsibly and proper

internal controls and risk management policy and procedures are

in place for efficient and effective operations of the Company,

safeguarding of assets, compliance with the laws and regulations

and proper financial reporting in accordance with the International

Financial Reporting Standards.

DONATIONThe Company has a policy to donate maximum up-to 1% of it’s prior

year’s profit before tax to a charitable institution.

CONTRIBUTION TO NATIONAL EXCHEQUERDuring the year under review, the Company contributed Rs.104

million towards the National Exchequer on account of various

government levies, taxes and import duties. Payment of these

taxes which is 2% higher than previous year shows the Company’s

positive attitude towards development of economy and fulfilling its

responsibility as a good corporate citizen.

SAFETY, HEALTH AND ENVIRONMENTBeing a responsible corporate citizen, we are actually aware of

our responsibility to provide a safe and healthy work environment

to our associates. We make every effort to eliminate workplace

hazards and provide safe, healthy and comfortable working

conditions for our employees. Our safety culture is founded on

the premise that all injuries are preventable. To this end, we have

established “zero accidents and zero injuries” as our goal. We

pursue this goal through a culture of continuous improvement

in which all incidents are reported and investigated, and the root

causes are resolved. We believe that safety and health is a journey

of continuous improvement and eternal diligence. We will continue

to take steps to improve the safety and health of all our associates.

CODE OF CONDUCTThe Company has prepared a ‘Code of Conduct’, which has been

disseminated throughout the Company.

The basic philosophy underlying this Code is to conduct business

operations with honesty, integrity and openness, and with respect

for human rights and interest of the employees. The Company

respects the legitimate interest of all those with whom it has

relationships - Government, Employees, Shareholders, Business

Partners and the Society and Communities in which it operates.

These business principals cover the areas like Public Activities,

Environment, Innovation, Competition, Business Integrity and

Conflict of Interest.

Compliance with this Code is an essential element in business success.

Avanceon 32 |

The Board of Directors is responsible for ensuring that this code is

communicated to and understood and observed by all employees.

Day-to-day responsibility is delegated to the senior management.

They are responsible for implementing this Code, If necessary,

through more detailed guidance tailored to business needs.

AUDIT COMMITTEEAudit Committee was established by the Board to assist the directors

in discharging their responsibilities for Corporate Governance,

Financial Reporting and Corporate Control. The committee consists

of three members. Majority of members including the Chairman of

the Committee are non-executive and independant directors.

This Committee reviews the financial and internal reporting process,

the system of internal controls, management of risks and the internal

and external audit processes. An independent internal audit function

reports to the committee regarding risks and internal controls across

the organization. The Audit Committee receives reports from the

external auditors on any accounting matter that might be regarded

as critical. The detailed Charter of the Audit Committee developed

in accordance with the Code of Corporate Governance is contained

in the listing regulations of the stock exchanges.

The Audit Committee has reviewed the quarterly, half yearly

and annual financial statements along with consolidated financial

statements, besides the internal audit plan, material audit findings

and recommendations to the internal auditor.

HUMAN RESOURCE AND REMUNERATION COMMITTEEHuman Resource and Remuneration Committee was established by

the Board to assist the directors in discharging their responsibilities

with regard to selection, evaluation, compensation and succession

planning of key management personnel. It is also involved in

recommending improvements in Company’s human resource

policies and procedures and their periodic review. The Committee

consists of three members. Majority of members including the

Chairman of the Committee are non-executive directors.

During this year, no Human Resource Committee meeting was held.

MANAGEMENT COMMITTEEThe Management Committee ensures that a proper system is

developed and working that enables swift and appropriate decision

making. It acts in an advisory capacity to the Chief Executive at

the operating level, providing recommendations relating to

business and other corporate affairs. It is responsible for reviewing

and forwarding long-term plans, capital and expense budget

development and stewardship of business plans. The Committee is

organized on a functional basis and meets regularly to review the

performance of each function against set targets.


EMPLOYEES’ RETIREMENT BENEFITSThe Company operates defined contribution plan for its permanent employees through a recognized provident fund trust.

The break-up of investment in terms of investment and percentage of the size of the provident fund are as follows:

Government Securities

Scheduled Banks

Other Mutual Funds

Listed Securities

2013(unaudited)

2012(audited)

Investement asInvestments % of size of the (Rupees) fund

32,225,850 67%

5,503,952 11%

6,769,132 14%

3,940,195 8%

48,439,129

Investement asInvestments % of size of the (Rupees) fund

18,000,000 46%

2,211,365 6%

14,568,179 37%

4,282,586 11%

39,062,130

Investments out of provident fund have been made in accordance with the provisions of the section 227 of the Companies Ordinance, 1984

and the rules formulated for this purpose.

OPERATING & FINANCIAL DATAOperating and financial data and key ratios of the Company for the

last six years are annexed.

PATTERN OF SHAREHOLDINGThe pattern of shareholding as at December 31, 2013 is annexed.

The Directors, Chief Executive, Chief Financial Officer, Company

Secretary and their spouse and minor children have made no

transactions of the Company’s shares during the year, except those

reported in pattern of shareholding.

STATUTORY AUDITOR OF THE COMPANYThe present Auditors, M/s. Ernst & Young Ford Rhodes Sidat

Hyder & Co. Chartered Accountants, retire and being eligible,

offer themselves for re-appointment. The Audit Committee of

the Company has been recommended their re-appointment as

Auditors of the Company for the year ending December 31, 2014.

COMMUNICATIONCommunication with the shareholders is given a high priority.

Annual reports are distributed to them within the time specified in

the Companies Ordinance, 1984. The Company also has a website,

www.avanceon.com, which contains up to date information on

Company’s activities and financial reports.

For and on behalf of the BOARD OF DIRECTORS

Mr. Bakthiar H WainDirector, Chief Executive Officer

Avanceon 34 |

ANALYSIS OF FINANCIAL STATEMENTS (Consolidated) Balance Sheet (Rupees in million) Particulars 2013 2012 2011 2010 2009 2008

Non-Current Assets

Property plan and Equipment 195 169 159 137 148 152

Intangible assets 0 0 14 4 3 0

GoodWill - - 428 410 403 292

Long term investments 571 527 - - - -

Capital Work in Progress - - - - - 2

Long term deposits 20 17 14 4 3 1

Deferred taxation - - 20 12 - -

Deferred employee Compensation - - - - - 2

Total Non-Current Assets 787 713 636 567 557 449

Current Assets Stock in trade 56 57 62 53 58 70

Current portion of deferred employee Compesnation - - - 1 6 2

Trade debts 904 942 174 362 543 457

Short term investments 140 3 - - - -

Advances, deposits, prepayments and other receivables 123 140 58 75 93 97

Cash and bank balances 407 245 9 111 35 19

Non Current assets attributable to discontinued operations 0

Total Current Assets 1,630 1,387 302 602 735 646

Total Assets 2,417 2,099 937 1,169 1,291 1,095

Equity and Liabilities Share Capital and reserves Issued, subscribed and paid up capital 755 400 400 400 400 400

Employees’ share compensation reserve 45 - 11 12 12 3

Exchange revaluation reserve 211 153 47 46 41 (50)

Un-appropriated profit 397 385 (615) (446) (250) (274)

1,408 938 (158) 12 204 79

Non controlling interest - - (31) (1) - -

1,408 938 (189) 11 204 79

Surplus On Revaluation Of Property, Plant and Equipment 84 69 41 33 33 31

Non-Current Liabilities Long term finances 7 19 36 188 358 137

Liabilities against assets subject to finance lease 33 31 23 14 14 14

Deferred Liabilities 31 21 16 7 9 8

Total Non-Current Liabilities 71 71 75 209 381 159

Current Liabilities Current portion of long-term liabilities 18 66 348 192 70 71

Finances under mark up arrangements and other credit

facilities - secured 50 1 247 295 324 414

Short term loan from directors - unsecured 55 48 19 - - -

Cash received against IPO 264 - - - - -

Creditors, accrued and other liabilities 467 907 397 427 280 342

Liabilities directly associated with assets classified as Disc. Operations - - 0 - - -

Total Current Liabilities 854 1,022 1,010 914 673 826

Total Equity and Liabilities 2,417 2,099 937 1,169 1,291 1,095

ANNEX TO THE REPORT


0

500

1,000

1,500

2,000

2,500

2008

Sales Revenue(Rs. In million)

2009 2010 2011 2012 2013

* Rs. 190million restructuring gain was included in 2012 revenues

-200

-100

0

100

200

300

400

500

600

700

800

2008

Profit after Tax(Rs. In million)

2009 2010 2011 2012 2013

Profit and Loss Account (Rupees in million) Particulars 2013 2012 2011 2010 2009 2008

Sales 1,818 2,122 1,268 1,828 1,616 1,635

Cost Of Sales (1,125) (1,255) (920) (1,295) (990) (1,245)

Gross Profit 694 867 348 533 625 390

Administrative and Selling Expenses (254) (271) (503) (631) (498) (496)

Other Charges (0) (0) (0) (2) (2) (0)

Other Operating Income 32 240 87 27 25 59

(222) (31) (416) (605) (474) (437)

Profit/(Loss) from operations 471 836 (68) (72) 151 (47)

Finance Cost (35) (44) (130) (126) (116) (84)

Profit/(Loss) Before Tax 436 791 (198) (198) 35 (131)

Taxation (25) (29) (2) 3 11 (8)

Profit/(loss) after Tax 411 763 (200) (195) 24 (139)

Loss For the year from disc. Operations - - (0) - - -

Profit/(loss) after disc. Operations 411 763 (200) (195) 24 (139)

Combined earnings/(loss) per Share

Basic in Rs. 5.45 10.10 (4.23) (4.88) 0.60 (3.47)

Diluted in Rs. 5.11 10.10 (4.23) (4.88) 0.59 (3.47)

Cash Flow Statement (Rupees in million)

Particulars 2013 2012 2011 2010 2009 2008

Cash Flow From Operating activities 62 501 (23) 171 (95) (126)

Cash Flow From Investing activities (140) (131) (36) (7) (18) (26)

Cash Flow From Financing activities 191 90 6 (60) 219 55

Increase/(Decrease) in Cash & Cash equilant 113 459 (54) 104 107 (98)

Avanceon 36 |

SIX YEARS AT A GLANCE (Consolidated)

Balance Sheet Particulars 2013 2012 2011 2010 2009 2008

Profitability Ratios Gross Profit ratio 38% 41% 27% 29% 39% 24%

Profit Before Tax 24% 37% (16)% (11)% 2% (8)%

Profit After Tax 23% 36% (16)% (11)% 1% (8)%

Return On Capital Employed 33% 89% 43% (593)% 74% (59)%

Interest Coverage Ratio (Times) 13.5 18.8 (0.5) (0.6) 1.3 (0.6)

EBITDA (Rs. In million) (Rs. In million) 452 817 (98) (96) 120 (79)

EBITDA Margin 25% 39% (8)% (5)% 7% (5)%

Return to Shareholders Return on Equity-Before Tax 31% 84% 126% (1625)% 17% (165)%

Return on Equity-After Tax 29% 81% 127% (1601)% 12% (175)%

Earning per Share (Basic) (Rs.) 5.45 10.10 (4.23) (4.88) 0.60 (3.47)

Earning per Share (Diluted) (Rs.) 5.11 10.10 (4.23) (4.88) 0.59 (3.47)

Break Up value per share without surplus on revaluation (Rs.) 18.65 23.44 (4.72) 0.28 5.09 1.98

Break Up value per share with surplus on revaluation (Rs.) 37.30 25.17 (3.70) 1.11 5.92 2.74

Asset Utilization Total Asset Turnover (Times) 0.75 1.01 1.35 1.56 1.25 1.49

Fixed Asset Turnover (Times) 9.30 12.58 7.34 12.91 10.70 10.75

Inventory Turnover (Times) 32.70 37.43 20.58 34.49 27.90 23.35

Trade Debts Turnover (Times) 2.01 2.25 7.30 5.05 2.98 3.58

Trade Creditors Turnover (Times) 3.89 2.34 3.20 4.28 5.77 4.79

Capital Employed Turnover (Times) 1.16 1.97 (17.39) 7.21 2.61 6.08

Operating Cycle Inventory Holding Period (No. of days) 9 17 23 16 24 21

Trade Debt collection period (No. of days) 185 96 77 90 113 102

Trade Creditors payment period (No. of days) 223 190 163 100 115 100

Liquidity/Leverage Current ratio (Times) 1.91 1.36 0.30 0.66 1.09 0.78

Quick ratio (Times) 1.84 1.30 0.24 0.60 1.01 0.70

Cash to current liabilities (Times) 0.64 0.24 0.01 0.12 0.05 0.02

Financial leverage ratio (Times) 0.05 0.08 (0.40) 18.69 1.87 2.01

Total liabilities to equity (Times) 0.66 1.17 (5.75) 100.25 5.18 12.46

0

5

10

15

20

25

2008

Book value per share(Rupees)

2009 2010 2011 2012 2013-5

0

5

10

15

20

2008

Earning per share(Rupees)

2009 2010 2011 2012 2013


Balance Sheet Vertical Analysis Horizantal Analysis 2013/ 2012/ 2011/ 2010/ 2009/Particulars 2013 2012 2011 2010 2009 2008 2012 2011 2010 2009 2008 (In % age) (In % age)

Non-Current Assets

Property plan and Equipment 8% 8% 17% 12% 11% 14% 16% 6% 15% (7)% (3)%

Intangible assets - - 2% 0% 0% - (84)% (99)% 249% 37% 44676%

GoodWill - - 46% 35% 31% 27% - (100)% 4% 2% 38%

Long term investments 24% 25% - - - - 8% - - - -

Capital Work in Progress - - - - - 0% - - - - (100)%

Long term deposits 1% 1% 1% 0% 0% 0% 21% 22% 297% 26% 248%

Deferred taxation - - 2% 1% - - - (100)% 76% - -

Deferred employee Compensation - - - - - 0% - - - - (100)%

Total Non-Current Assets 33% 34% 68% 48% 43% 41% 10% 12% 12% 2% 24%

Current Assets

Stock in trade 2% 3% 7% 5% 4% 6% (2)% (8)% 16% (8)% (17)%

Current portion of deferred employee Compensation - - - 0% 0% 0% - - (100)% (85)% 300%

Trade debts 37% 45% 19% 31% 42% 42% (4)% 442% (52)% (33)% 19%

Short term investments 6% - - - - 0% 3958% - - - -

“Advances, deposits, prepayments and other receivables “ 5% 7% 6% 6% 7% 9% (12)% 141% (23)% (19)% (4)%

Cash and bank balances 17% 12% 1% 9% 3% 2% 66% 2721% (92)% 212% 87%

Non Current assets attributable to discontinued operations - - 0% - - - - (100)% - - -

Total Current Assets 67% 66% 32% 52% 57% 59% 18% 359% (50)% (18)% 14%

Total Assets 100% 100% 100% 100% 100% 100% 15% 124% (20)% (9)% 18%

Equity and Liabilities

Share Capital and reserves

Issued, subscribed and paid up capital 31% 19% 43% 34% 31% 37% 89% 0% 0% 0% 0%

Employees’ share compensation reserve 2% 0% 1% 1% 1% 0% 0% (100)% (12)% 3% 272%

Exchange revaluation reserve 9% 7% 5% 4% 3% (5)% 38% 226% 2% 11% (182)%

Un-appropriated profit 16% 18% (66)% (38)% (19)% (25)% 3% (163)% 38% 79% (9)%

58% 45% (17)% 1% 16% 7% 50% (695)% (1393)% (94)% 157%

Non controlling interest - - (3)% 0% - - - (100)% 3000% - -

“Surplus On Revaluation Of Property, Plant And Equipment“ 3% 3% 4% 3% 3% 3% 22% 69% 23% 0% 9%

Non-Current Liabilities

Long term finances 0% 1% 4% 16% 28% 13% (63)% (47)% (81)% (48)% 161%

Liabilities against assets subject to finance lease 1% 1% 2% 1% 1% 1% 8% 34% 62% (1)% 2%

Deferred Liabilities 1% 1% 2% 1% 1% 1% 50% 27% 126% (16)% 9%

Total Non-Current Liabilities 3% 3% 8% 18% 30% 15% 1% (6)% (64)% (45)% 140%

Current Liabilities

Current portion of long-term liabilities 1% 3% 37% 16% 5% 6% (73)% (81)% 81% 174% (1)%

“Finances under mark up arrangements and other credit facilities - secured“ 2% 0% 26% 25% 25% 38% 8167% (100)% (16)% (9)% (22)%

Short term loan from directors - unsecured 2% 2% 2% - - - 14% 160% - - -

Cash received against IPO 11% - - - - - - - - - -

Creditors, accrued and other liabilities 19% 43% 42% 36% 22% 31% (49)% 129% (7)% 53% (18)%

Liabilities directly associated with assets classified as Disc. Operations - - 0% - - - - (100)% - - -

Total Current Liabilities 35% 49% 108% 78% 52% 75% (17)% 1% 11% 36% (19)%

Total Equity and Liabilities 100% 100% 100% 100% 100% 100% 15% 124% (20)% (9)% 18%

Avanceon 38 |

Balance Sheet Vertical Analysis Horizantal Analysis 2013/ 2012/ 2011/ 2010/ 2009/Particulars 2013 2012 2011 2010 2009 2008 2012 2011 2010 2009 2008 (In % age) (In % age)

Non-Current Assets

Property plan and Equipment 8% 8% 17% 12% 11% 14% 16% 6% 15% (7)% (3)%

Intangible assets - - 2% 0% 0% - (84)% (99)% 249% 37% 44676%

GoodWill - - 46% 35% 31% 27% - (100)% 4% 2% 38%

Long term investments 24% 25% - - - - 8% - - - -

Capital Work in Progress - - - - - 0% - - - - (100)%

Long term deposits 1% 1% 1% 0% 0% 0% 21% 22% 297% 26% 248%

Deferred taxation - - 2% 1% - - - (100)% 76% - -

Deferred employee Compensation - - - - - 0% - - - - (100)%

Total Non-Current Assets 33% 34% 68% 48% 43% 41% 10% 12% 12% 2% 24%

Current Assets

Stock in trade 2% 3% 7% 5% 4% 6% (2)% (8)% 16% (8)% (17)%

Current portion of deferred employee Compensation - - - 0% 0% 0% - - (100)% (85)% 300%

Trade debts 37% 45% 19% 31% 42% 42% (4)% 442% (52)% (33)% 19%

Short term investments 6% - - - - 0% 3958% - - - -

“Advances, deposits, prepayments and other receivables “ 5% 7% 6% 6% 7% 9% (12)% 141% (23)% (19)% (4)%

Cash and bank balances 17% 12% 1% 9% 3% 2% 66% 2721% (92)% 212% 87%

Non Current assets attributable to discontinued operations - - 0% - - - - (100)% - - -

Total Current Assets 67% 66% 32% 52% 57% 59% 18% 359% (50)% (18)% 14%

Total Assets 100% 100% 100% 100% 100% 100% 15% 124% (20)% (9)% 18%

Equity and Liabilities

Share Capital and reserves

Issued, subscribed and paid up capital 31% 19% 43% 34% 31% 37% 89% 0% 0% 0% 0%

Employees’ share compensation reserve 2% 0% 1% 1% 1% 0% 0% (100)% (12)% 3% 272%

Exchange revaluation reserve 9% 7% 5% 4% 3% (5)% 38% 226% 2% 11% (182)%

Un-appropriated profit 16% 18% (66)% (38)% (19)% (25)% 3% (163)% 38% 79% (9)%

58% 45% (17)% 1% 16% 7% 50% (695)% (1393)% (94)% 157%

Non controlling interest - - (3)% 0% - - - (100)% 3000% - -

“Surplus On Revaluation Of Property, Plant And Equipment“ 3% 3% 4% 3% 3% 3% 22% 69% 23% 0% 9%

Non-Current Liabilities

Long term finances 0% 1% 4% 16% 28% 13% (63)% (47)% (81)% (48)% 161%

Liabilities against assets subject to finance lease 1% 1% 2% 1% 1% 1% 8% 34% 62% (1)% 2%

Deferred Liabilities 1% 1% 2% 1% 1% 1% 50% 27% 126% (16)% 9%

Total Non-Current Liabilities 3% 3% 8% 18% 30% 15% 1% (6)% (64)% (45)% 140%

Current Liabilities

Current portion of long-term liabilities 1% 3% 37% 16% 5% 6% (73)% (81)% 81% 174% (1)%

“Finances under mark up arrangements and other credit facilities - secured“ 2% 0% 26% 25% 25% 38% 8167% (100)% (16)% (9)% (22)%

Short term loan from directors - unsecured 2% 2% 2% - - - 14% 160% - - -

Cash received against IPO 11% - - - - - - - - - -

Creditors, accrued and other liabilities 19% 43% 42% 36% 22% 31% (49)% 129% (7)% 53% (18)%

Liabilities directly associated with assets classified as Disc. Operations - - 0% - - - - (100)% - - -

Total Current Liabilities 35% 49% 108% 78% 52% 75% (17)% 1% 11% 36% (19)%

Total Equity and Liabilities 100% 100% 100% 100% 100% 100% 15% 124% (20)% (9)% 18%


Profit and Loss Account Vertical Analysis Horizantal Analysis 2013/ 2012/ 2011/ 2010/ 2009/Particulars 2013 2012 2011 2010 2009 2008 2012 2011 2010 2009 2008 (In % age) (In % age)

Sales 100% 100% 100% 100% 100% 100% (14)% 67% (31)% 13% (1)%

Cost Of Sales (62)% (59)% (73)% (71)% (61)% (76)% (10)% 36% (29)% 31% (20)%

Gross Profit 38 % 41% 27% 29% 39% 24% (20)% 149% (35)% (15)% 60%

Administrative and Selling Expenses (14)% (13)% (40)% (34)% (31)% (30)% (6)% (46)% (20)% 27% 0%

Other Charges (0)% (0)% (0)% (0)% (0)% (0)% (13)% 1,282% (99)% (12)% 1,208%

Other Operating Income 2% 11% 7% 1% 2% 4% (87)% 176% 225% 7% (58)%

(12)% (1)% (33)% (33)% (29)% (27)% 613% (93)% (31)% 28% 9%

Profit/(Loss) from operations 26% 39% (5)% (4)% 9% (3)% (44)% (1,328)% (6)% (148)% (422)%

Finance Cost (2)% (2)% (10)% (7)% (7)% (5)% (21)% (66)% 3% 9% 38%

Profit/(Loss) Before Tax 24 % 37% (16)% (11)% 2% (8)% (45)% (500)% (0)% (663)% (127)%

Taxation (1)% (1)% (0)% 0% (1)% (0)% (13)% 1,592 % (43)% (74)% 36%

Profit/(Loss) for the year 23% 36% (16)% (11)% 1% (8)% (46)% (482)% 2% (919)% (117)%

Loss For the year from disc. Operations - - (0)% - - - - (100)% - - -

23% 36% (16)% (11)% 1% (8)% (46)% (482)% 2% (919)% (117)%


Basic 0.3% 0.5% (0.3)% (0.3)% 0.0% (0.2)% (46)% (339)% (13)% (913)% (117)%

Diluted 0.3% 0.5% (0.3)% (0.3)% 0.0% (0.2)% (49)% (339)% (13)% (913)% (117)%

Cash Flow Statement Vertical Analysis Horizantal Analysis

2013 2012 2011 2010 2009Particulars 2013 2012 2011 2010 2009 2008 2012 2011 2010 2009 2008 (In % age) (In % age)

Cash Flow From Operating activities 55% 109% 43% 164% (89%) 129% (88)% (2278)% (113)% (280)% (25)%

Cash Flow From Investing activities (124%) (29%) (67%) (7%) (17%) (27%) 7% 264% 414% (61)% (31)%

Cash Flow From Financing activities 169% 20% (11%) (58%) 205% (56%) 112% 1400% (110)% (127)% 298%

Increase/(Decrease) in Cash & Cash equilant 100% 100% 100% 100% 100% 100% (75)% (950)% (152)% (3)% (209)%

Avanceon 40 |

Profit and Loss Account Vertical Analysis Horizantal Analysis 2013/ 2012/ 2011/ 2010/ 2009/Particulars 2013 2012 2011 2010 2009 2008 2012 2011 2010 2009 2008 (In % age) (In % age)

Sales 100% 100% 100% 100% 100% 100% (14)% 67% (31)% 13% (1)%

Cost Of Sales (62)% (59)% (73)% (71)% (61)% (76)% (10)% 36% (29)% 31% (20)%

Gross Profit 38 % 41% 27% 29% 39% 24% (20)% 149% (35)% (15)% 60%

Administrative and Selling Expenses (14)% (13)% (40)% (34)% (31)% (30)% (6)% (46)% (20)% 27% 0%

Other Charges (0)% (0)% (0)% (0)% (0)% (0)% (13)% 1,282% (99)% (12)% 1,208%

Other Operating Income 2% 11% 7% 1% 2% 4% (87)% 176% 225% 7% (58)%

(12)% (1)% (33)% (33)% (29)% (27)% 613% (93)% (31)% 28% 9%

Profit/(Loss) from operations 26% 39% (5)% (4)% 9% (3)% (44)% (1,328)% (6)% (148)% (422)%

Finance Cost (2)% (2)% (10)% (7)% (7)% (5)% (21)% (66)% 3% 9% 38%

Profit/(Loss) Before Tax 24 % 37% (16)% (11)% 2% (8)% (45)% (500)% (0)% (663)% (127)%

Taxation (1)% (1)% (0)% 0% (1)% (0)% (13)% 1,592 % (43)% (74)% 36%

Profit/(Loss) for the year 23% 36% (16)% (11)% 1% (8)% (46)% (482)% 2% (919)% (117)%

Loss For the year from disc. Operations - - (0)% - - - - (100)% - - -

23% 36% (16)% (11)% 1% (8)% (46)% (482)% 2% (919)% (117)%


Basic 0.3% 0.5% (0.3)% (0.3)% 0.0% (0.2)% (46)% (339)% (13)% (913)% (117)%

Diluted 0.3% 0.5% (0.3)% (0.3)% 0.0% (0.2)% (49)% (339)% (13)% (913)% (117)%

Cash Flow Statement Vertical Analysis Horizantal Analysis

2013 2012 2011 2010 2009Particulars 2013 2012 2011 2010 2009 2008 2012 2011 2010 2009 2008 (In % age) (In % age)

Cash Flow From Operating activities 55% 109% 43% 164% (89%) 129% (88)% (2278)% (113)% (280)% (25)%

Cash Flow From Investing activities (124%) (29%) (67%) (7%) (17%) (27%) 7% 264% 414% (61)% (31)%

Cash Flow From Financing activities 169% 20% (11%) (58%) 205% (56%) 112% 1400% (110)% (127)% 298%

Increase/(Decrease) in Cash & Cash equilant 100% 100% 100% 100% 100% 100% (75)% (950)% (152)% (3)% (209)%


STATEMENT OF VALUE ADDITION (Consolidated)

For the Year ended December 31,

2013 2012 (Rs. In ,000) %age (Rs. In ,000) %age

Wealth generated

Sales included Sales Tax 1,891,884 98% 2,165,313 90%Other operating income 32,227 2% 240,070 10%

1,924,111 2,405,384 Wealth distributed

Cost of material and services 1,137,552 59% 1,280,166 53% To Employees

Salaries and other related cost 301,094 16% 319,344 13% To Government

Taxes 74,000 4% 43,271 2% To Society

Donation 172 0.01% 10 0.0004% Retained in the business

To provide for growth: Retained profits 411,293 21% 762,592 32% 1,924,111 2,405,384

2012

Wealth Distributed (53%)

To Employee (13%)

To Government (2%)

To Society (0.0004%)

Retained in the business (32%)

2013

Wealth Distributed (59%)

To Employee (16%)

To Government (3.85%)

To Society (0.01%)

Retained in the business (21%)

Avanceon 42 |

Dear Shareholders,

Back in November 2013, Avanceon Ltd joined the selected few

public companies of Pakistan, and it is both my honour and pleasure

to share the ever-renewed commitments of our Company’s

business towards customer- and employee-centricity. Another year

has passed and we have a lingering feeling that it was more exciting

than the one before and the one ahead will be even better. This is

not for only the results achieved and the prospects ahead, but for

the ever-evolving Avanceon. Our capable teams are always ready to

meet the exacting challenges of the dynamic environment in which

we operate to understand, plan, design and deliver state-of-the-art

solutions to meet our client’s business objectives.

Our mainstay CORE business showed increased activity in the

Application-based solutions, generating more orders, but the

overall generation of the CORE remains somewhat subdued

because in 2012 we had USAID funded energy projects, which

resulted in a spike. However, the revenue performance was much

stronger due to a healthy backlog of orders. Specialized business

is our high margin business and the epitome of a “blue ocean

strategy” example, which comes with its expected challenges. One

is its long gestation period and the other is internationalizing the

model, which we have so successfully demonstrated in Pakistan.

Our specialized business, Energy Management Solutions [EMS],

offers a unique energy savings proposition, based on “pay as you

save,” which essentially means guaranteed savings and which is

unique in the sense that no other company in the region, to the

best of our knowledge, offers that. It has saved our customers

millions and the investment made in such projects is not only

risk free, but also beats any risk free investment’s internal rate of

return [IRR]. Our initiative of providing industry IT solutions and

Advance Process Control has come of age with some very exciting

projects being implemented; this could open a whole new world of

opportunities for us. Our team is extremely excited in anticipation of

this impending challenge. After Market Sales [AMS] is our booming

business area and is growing leaps and bounds. From 2012, it showed

33 % increase in order generation and 28% in revenue.

We are always striving for a more effective utilization of our

engineering resources, we call it Effective Productivity Report [EPR]

of the engineers, and our minimum benchmark is 70%, which we

achieved in 2013. Going forward it is quintessential for our growth

and profitability that we maintain and improve upon it.

In-line with our Mission and our commitment in Highway 50, we

invested heavily in developing our team across various technical

skillsets, both on-the-job and classroom-based international training

for extended periods. More than 35% of our engineering workforce

was sent on various international training and certification courses

in 2013 and the entire engineering team went through about 5

internal trainings on various technology platforms. This underpins

our commitment and belief in building human capital as the ultimate

fuel for our growth and as a means to retain our workforce. I

believe that our Human Capital is the real biggest differentiator that

has catapulted us into the future and we shall continue to invest in

it. In return, this commitment has resulted in building a solid team of

seasoned managers averaging 13.9 years of experience, and more

specifically 11.8 years spent at Avanceon.

The Company has made strides in growing its footprint in the

Middle East, the flow of regular business is encouraging enough

to decide and consolidate our position by opening offices in key

geographies of the region. We bring a lot of energy, rigor, creativity

and agility into our daily routine while staying focused and true to

our mission, realizing our responsibility toward our customers and

shareholders. I am proud that we are highly ethical and transparent

in our dealings and reporting.

There are visible signs of uptick and vibrancy in the economy of

Pakistan; together with our geographic expansion strategy I feel we

are uniquely positioned to capitalize any upturn. I am ecstatic about

the prospects the future holds.

Stay tuned! There will be a lot to talk about in 2014.

Tanveer KaramatChief Operating Officer

LETTER FROM THE CHIEF OPERATING OFFICER


BUSINESSOVERVIEW

SECTION: III

Avanceon 44 |

VALUE DRIVENDIVERSIFIED REVENUE BASE AND STRONG MARKET POSITIONING The Company has a strong presence in Pakistan and the Middle East. This not only enables cross border revenue streams but also provides a

hedge against regional economic turmoil. AVN is the market leader in Pakistan. Competing international companies are reluctant to operate

in Pakistan due to impending economic crises. Therefore AVN has become positioned as the unrivalled service provider in the industry. In

the Middle East, AVN has gained dominance through its unique international execution model, which provides it with a competitive edge in

terms of pricing, quality and most importantly scalability.

DIVERSE PRODUCT OFFERING WITH AN EXTENSIVELY DEVELOPED KNOWLEDGE BASEThe Company has developed an extensive product portfolio of broad based solutions for all major sectors in the Middle East and Pakistan

through research & development. This enables it to replicate the already established portfolio to address similar needs of enterprises within

a sector in difference geographies. Replication not only provides cost advantage to the Company but also assists in increasing market

penetration due to its extensive knowledge base. AVN has also successfully set up After Market Solutions segment which not only allows it

to capture repeat business from existing clients but also enables it to enjoy stable recurring revenues.

UNIQUE VALUE PROPOSITIONOUTSOURCING MODEL’S COMPETITIVE COST ADVANTAGEThe Company has developed a unique outsourcing model i.e.

International Execution (“IX”) which is utilized to execute projects

across the globe while adhering to the highest quality standards.

This model helps the Company take advantage of lower cost in

Pakistan and deliver high end services seamlessly at international

prices and thus maintain high gross margins.

Under IX model, the Company leverages its pool of certified and

highly trained engineers based in Pakistan to execute a significant

portion of international projects.

IX also allows the Company to overcome cyclicality of the

automation industry as it can maintain the ‘bench strength’ of

engineers during downturn at Pakistan cost. This also later helps

it to scale up operations quickly to align with regional economic

expansion or increased project pipeline. The process dramatically

reduces the cost of hiring, training and attrition which all other

system integrators face.

At present, the Company can sustain a decline in revenue by 40%

without having to adjust the number of engineers in its pool. This

model is difficult to replicate as it requires extensive experience to

come at par with International Standards and can therefore not be

replicated easily in the short term by competitors.


V LIFECYCLEThe V Lifecycle Process is the way Avanceon manages projects. Avanceon has mastered this complex project management process to such

a level that it has become part of our value proposition to our customers. From the beginning of a project bid through to fulfilment we

remain true to the process and this aids greatly our traceability with our client base. Implemented seamlessly, it is perhaps the secret to our

industry success.

DIVERSE PRODUCT OFFERING WITH AN EXTENSIVELY DEVELOPED KNOWLEDGE BASEThe Company has developed an extensive product portfolio of

broad based solutions for all major sectors in the Middle East

and Pakistan through research & development. This enables it to

replicate the already established portfolio to address similar needs

of enterprises within a sector in difference geographies. Replication

not only provides cost advantage to the Company but also assists in

increasing market penetration due to its extensive knowledge base.

AVN has also successfully set up After Market Solutions segment

which not only allows it to capture repeat business from existing

clients but also enables it to enjoy stable recurring revenues.

GROWTH MANAGEMENTPROFICIENT AND EXPERIENCED MANAGEMENT TEAM WITH PROVEN TRACK RECORDThe Company has developed a strong team of professionals, who

have the requisite industry experience. The team has executed

several on-shore and off-shore projects with outstanding client

testimonials and the Company is considered as clear market leader

in Pakistan. Keeping in view the role of human resource in the

Company’s success, it has introduced several employee retention

schemes including initiation of Employee Stock Option Scheme.

Additionally, the Company has invested heavily in the development

of its staff including establishment of training centers in Karachi and

Lahore to enable them to deliver superior performance.

Left side: Developmenta ctivities Rights ide: Verification activities

Proposal process Support Services

URS to SAT

FRS to FAT

DDS to FAT

Real-time Traceability

User Requirements Review (URS)

System Design Process Preliminary Design Review (PDR)

Detailed Design Review (CDRs) DDS

Unit /M odule Tests

Buy / Build / Reuse / CodeConfiguration Items (CI)

Source:M anagement

IX RWCF

Factory Acceptance Tests (FAT)

Site Acceptance Tests (SAT)

PROMISING FUTURE AND STRONG GROWTH PROSPECTSThe Company has moved on from the gestation stage and is now up

the learning curve by developing superior expertise to implement

complex solutions for its clients. The Company continuously

searches for options to explore new business segments such as

metals and mining, oil and gas, utilities, chemicals, food & beverages,

life sciences and health care segments, especially within the Middle

Eastern and South Asian markets. The Company is confident that

its strong focus on brand and skills development over the past few

years will enable it to reap the benefits of established brand equity

and domain knowledge.

IMPACTING TECHNOLOGYROBUST IT SYSTEMS AND TECHNOLOGY PLATFORMSThe Company has invested in state of the art IT systems including

“cloud computing” infrastructure and project management tools.

The Company has gained experience in deploying a wide array of

technology platforms and applications to deliver optimal solutions to

its clients. Over the years, the Company has established entrenched

relationship with OEMs, technology companies and application

providers which proves to be a huge marketing asset.

STRONG CONTROLS AND CORPORATE GOVERNANCEThe Company has implemented a robust information system

to monitor productivity of its engineers, ensure adherence to

Avanceon 46 |

LIVED OUR BRANDHighway 50’s commitment is to ensure that we do understand “Live

Our Brand” as superseding a simple branding exercise. It is about

living our values and translating them across departments, which

we have done over the past two decades. Up to recently, managers

were in charge of transmitting our real brand equity, the one that we

cannot translate in number because it is intrinsic to the Company.

2013 saw the implementation of Avanceon Employee Orientation,

which inducts new recruits in a way that they are familiar with their

work environment and with the different stakeholders who will be

co-building with them. Orientation allows managers, engineers and

administrators to share how they live the Avanceon brand on a

daily basis, also properly introducing them to the Company.

Orientation facilitates how the new recruits approach their work

because it gives them a much broader perspective of the business

than solely dealing with their manager. This is also a way to introduce

how different colleagues live the Avanceon Values within the

Company. 2100 hours have been spent on orientation in 2013 alone.

INCREASED AND RETAINED HUMAN CAPITALThe Avanceon business capitalizes on the quality of its human assets

and considers it a key differentiator worldwide. To make it a sustainable

competitive advantage, the management’s prime focus is on talent

acquisition, development, retention and alignment with corporate goals.

This year, Avanceon is proud to have increased its employee

base by 14.5%. Talent acquisition is mainly done at university level.

EN ROUTE TO

2013 IN A SNAPSHOT

Our recruitment drive targets graduates from top engineering

universities such as UET, NUST, GIKI, NED and LUMS and further

afield. Above and beyond academic credentials, each employee is

handpicked to ensure that our values and scope of work match

their personal drive and beliefs. At Avanceon, we believe that

choosing the right employee goes beyond the right skillset.

While hiring, our key focus when screening a candidate is on

their learning potential, experience and top notch communication

skills, bearing in mind our international operations. We never

compromise while hiring talent and keep positions open until

all criteria is fully met. Even at entry level, the COO personally

conducts interviews, which shows the commitment of leadership

towards talent acquisition.

Our rigorous and extensive in-house training programs transform

a capable university graduate into a world-class engineer. Our

seamless operational excellence is a result of our seasoned

technical guru’s commitment toward grooming engineers. Every

Engineer goes through 9 months extensive training on domain

knowledge, products and project management. This process is

continuous until the engineer becomes a subject matter expert.

International training courses is another area where large

investments are made in our people. This translated into 8,568

hours in international training only to leverage international

competition and to grow employee self-realisation.

The retention of resources is a challenge considering their world-

class quality of skillset. Threat of losing our talent either overseas

or by locally operating MNCs is real. To counter this challenge,

we are continuously evaluating our compensation structures and

participate in Pakistan’s most reliable salary survey conducted by

Mercer to remain competitive in the market. Our variable pay

plan is directly linked with individual sales for sales team, project

management for engineering teams and PAT targets for support

teams and management. We also spend a considerable amount of

time training both internally and externally our employee.

quality standards and to monitor costs and project financials. The

Company ensures implementation of best corporate governance

practices in order to promote transparency, including setting up

of an independent Board of Directors consisting of 3 independent

directors and follows standard financial reporting practices to

provide a realistic view of its business to relevant stakeholders.


REDUCED VARIABILITY IN PROCESS EXECUTIONThis year again, we have been better at reducing variability in our

process execution, on our way towards seamless execution of our

solutions. This goal’s achievement is two-fold. Aside from our training,

our human capital and the implementation of proper KPIs towards

deviation elimination ensure that we meet this engagement year

after year. Sustainability is ensured by a seasoned team of managers

who average 13.9 years in the Automation industry. Management

experience at Avanceon approximates 11.8 years. 68.8% of our

managers joined Avanceon as junior before they levelled up, out of

which 37.5% joined as trainee. This continuity is definitely an asset

when it comes to ensuring seamlessness in our process execution.

This is part of our key goal in reaching customer delight in an

efficient and agile way.

STRENGTHENED RELATIONSHIPS & RESPONSIVENESS FOR CLIENT SUCCESSAbove and beyond being customer-centric, Avanceon is people-

centric. Each and every stakeholder is addressed according to our

values and our standards. The key drivers towards customer delight

also apply in our partnerships. Over the decades, this focus on

partner delight has earned us the respect and the trust of major

global key players within the automation sphere, such as Rockwell

Automation. Our entire value chain is driven towards delighting all

the participants of our value chain both internally and externally,

and this applies globally.

The resulting success stories are shared and signed-off by our client.

2013 was a witness of great projects’ achievements across borders,

which adds value and brings a sense of realization to each and

every one of us at Avanceon. Here are some of the projects where

our solutions and our seamless integration got validated by our

valued customers:

- LOI-ESD Systems project for the Oil and Gas industry in Pakistan

- JNGLF Saudi Aramco for the Oil and Gas industry in KSA

- JNGLF Islanding and load shedding project for the Oil and Gas

in KSA

- GM Buffalo project for the Food and Beverage Industry in the

United States

- MPCL – Turnkey E&I services for Zarghun gas field project for

the Oil and Gas industry in Pakistan

- Integrated Control System for MOL Makori GPF project-PDL

for the Oil and Gas in Pakistan

- Lalpir project for the Water Industry in Pakistan

We have also an employee stock option scheme [ESOS] for our

key people to align their interest with the Company’s and one of

the reasons for going public was to encourage people to contribute

maximum effort towards making Avanceon profits. Initially, 5%

shares have been allocated for ESOS and 5% more will be launched

in separate scheme this year.

Avanceon 48 |

DROVE AFTER PROJECT SALES & SERVICESAfter Project Sales and Services is one of the critical goals that

ensure reaching Highway 50 by 2018. Ultimately all the other

goals are involved in the realization of this particular one. As such

recurring business is always a good measure of customer delight. In

2013, customer delight was translated in 33% increase in recurring

business from the previous year. In 2013, production from our

CORE services reached a sustainable 70% Effective Productivity

Report [EPR] of the engineers; our minimum benchmark is 70%.

CORPORATE SOCIAL RESPONSIBILITIESWe believe that our primary social responsibility is in education, mainly in the universities of engineering, which is the reason why we exist

today. In 2013, we targeted UET final year students and with the help of UET faculty we identified around 20 students that required financial

assistance in their final year project. We helped these students by enabling them to purchase the licenses and hardware for their projects. We

not only supported them financially but also our engineers helped them to gain technical knowledge and assisted in project management.

As a result, all 20 students completed their final project with flying colours. We intend to keep assisting such students every year and helping

them to achieve their potential.

Today as much as in the past, Avanceon as well as our employees have been investing their time in providing direction to such students

as volunteers. At Avanceon, we do encourage our employees to participate in such noble pursuits and we have been supporting them in

this activity. Other than our on-going CSR activities, Avanceon dedicated time and funds towards amazing institutions such as The Citizens

Foundation. We were also involved in various charitable causes. In 2009 we helped the Internally Displaced Persons of Swat where

Avanceon contributed cash, one day salary of each employee, which the Company matched. Following the earthquake of 2005, which hit

Pakistan, the whole of Avanceon sent trucks full of basic necessities such as tents, blankets, water bottles and groceries. More than Rs. 1.2

million were invested to help the effectees. If such an unfortunate incident were to occur in the future, the whole of Avanceon will team up

again to help. Our CSR committee has Rs. 600, 000 in hand, contributed by the Company and its employees, which will be used in future.


STAKEHOLDER

STRONG CLIENT BASE WITH ESTABLISHED CREDENTIALSThe Company has served major blue chip companies across a diverse range of sectors including oil and gas, food and beverages, sugar,

cement, textile, transport and infrastructure across Middle East and Pakistan. An established client base acquired through a history of

successful execution enables the Company to win new contracts, both through strong credentials as well as referrals and it is expected that

these referrals will continue to remain the driving force in the future.

The Company has established credibility with leading institutions across the globe including blue chip multinational companies. Key clientele

include:

Avanceon 50 |

SECTOROil & Gas

Utilities & power

Infrastructure

OVERVIEWAbu Dhabi National Oil Company, UAE

Mole Pakistan Limited, Pakistan

Pakistan Oilfieldes Limited, Pakistan

Prescon Descon Industries Limited, Pakistan

United Energy Limited, Pakistan

Kuwait National Petroleum Company, Kuwait

Oil & Gas Development Company , Pakistan

Pakistan Refinery Limited, Pakistan

Pak Arab Refinery Limited, Pakistan

Pakistan Petroleum Limited, Pakistan

Qatar Petroleum, Qatar

Saudi Aramco, Kingdom of Saudi Arabia

Schlumberger, Pakistan & UAE

International power GDF Suez

Lalpir Power, Pakistan

Babcock & Wilcox, USA

EMICOOL, UAE

EMPOWER, UAE

Hub Power Company Limited, Pakistan

Kot Addu Power Company Limited, Pakistan

Liberty Power Tech, Pakistan

PAL Technologies, UAE

Sinohydro, Qatar

Palm Utilities, UAE

Dubai Metro, UAE

State of Qatar, Qatar

Best Way Cement Pakistan

Cherat Cement Limited, Pakistan

Food & Beverage

Chemicals

Pharmaceutical

Pepsico

Engro Foods Limited, Pakistan

Unilever Limited, Pakistan

Coca Cola, USA & UAE

General Mills, USA

Kraft Foods, USA

Kellogg’s, USA

Nabisco Brands, USA

Nestle, USA, Netherland & Pakistan

Proctor & Gamble, USA & Pakistan

Sara Lee, USA

Ciba, USA

Clorox, USA

DuPont, UAE & USA

Engro Fertilizers Limited, Pakistan

Engro Polymer & Chemicals Limited, Pakistan

Fauji Fertilizers Company Limited, Pakistan

Exxon Mobil, USA

Gatron, USA

Lotte, USA

Saudi Basic Industries Company, Kingdom of Saudi Arabia

Sherwin Williams, USA

Akzo Nobel, Pakistan

Astra Zeneca, USA

Bayer Pharma, USA & Pakistan

Boehringer Ingelheim, USA

Johnson & Johnson, USA

Merck, USA

Pfizer, USS


FOOD&

BAVERAGES

PHARMACEUTICAL&

LIFE SCIENCE

CHEMICALS&

SPECIALITYCHEMICALS

METALS&

MINING

PUBLICUTILITIES

OIL&

GAS

TRANSPORTATION &

INFRASTRUCTURE

Maroon:Pantone 222cCMYK (%) C0 - M100 - Y15 - K60

PARTNERSAvanceon partners with multiple vendors in order to offer best in class solution for each client; as such it has developed significant

partnerships with a number of top software and hardware providers in the industry.

Relationship OverviewWonderware/Invensys Endorsed Systems Integrator Avanceon is within the highest tier of system integrators in the Wonderware

community for North Americas. Wonderware takes exhaustive steps to

ensure that their Endorsed System Integrators are comprehensively trained

and certified in multiple areas.

Microsoft Gold Certificed Partner Avanceon is a Gold Certified Partner of Microsoft – the highest level of

competence and expertise with Microsoft technologies

Rockwell Automation Avanceon is a Rockwell Certified System Integrator (RSCI). This allows to

benefit from Rockwell’s global capabilities that extend across 80 countries

and includes partner network of more than 5,600 regional and global

specialists in distribution, system integration and product referencing

Schneider Avanceon is the Authorized System Integrator for Schneider and have

worked in partnership with them on several UAE based projects

Avanceon also has a wide array of platforms and technologies to deliver its solutions, including the following.

Avanceon 52 |

avanceon.com

19 – KM, Multan Road, Lahore 54660, PakistanPhone: +92 42-111 940 940Fax: +92 42-37515128

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