CONTENTS
Company Information 3
Directors’ Review 4
Independent Auditors Report on Review of Condensed Interim Financial Information to the Members 5
Condensed Interim Balance Sheet 6
Condensed Interim Profit and Loss Account 8
Condensed Interim Statement of Comprehensive Income 9
Condensed Interim Cash Flow Statement 10
Condensed Interim Statement of Changes in Equity 11
Selected Explanatory Notes to the Condensed Interim Financial Information 12
1 2 Company Information
Board of Directors Mr. Tariq Sayeed Saigol Chairman Mr. Sayeed Tariq Saigol Chief Executive Mr. Taufique Sayeed Saigol Mr. Waleed Tariq Saigol Mr. Danial Taufique Saigol Syed Mohsin Raza Naqvi Mr. Zamiruddin Azar Mr. Masood Karim Shaikh
Audit Committee Mr. Zamiruddin Azar Chairman Mr. Waleed Tariq Saigol Member Mr. Masood Karim Shaikh Member
Chief Financial Officer Syed Mohsin Raza Naqvi
Company Secretary Mr. Muhammad Ashraf
Chief Internal Auditor Mr. Bilal Hussain
Bankers of the Company Auditors Allied Bank Limited KPMG Taseer Hadi & Co. Askari Bank Limited Chartered Accountants Bank Alfalah Limited Bank Al-Habib Limited Legal Advisors BankIslami Pakistan Limited Raja Mohammed Akram & Co. Burj Bank Limited Advocates and Legal Consultants, Deutsche Bank Limited Lahore. Faysal Bank Limited First Dawood Islamic Bank Limited Registered Office First Women Bank Limited 42 - Lawrence Road, Lahore. Habib Bank Limited Phone: (042) 36278904-5 Habib Metropolitan Bank Limited Fax: (042) 36368721 IGI Investment Bank Limited E-mail: [email protected] Islamic Corporation for the Development Website: www.kmlg.com of the Private Sector, Jeddah KASB Bank Limited Share Registrar MCB Bank Limited Vision Consulting Ltd Meezan Bank Limited Head Office: 3-C, LDA Flats, National Bank of Pakistan Lawrence Road, Lahore NIB Bank Limited Phone: (042) 36375531 & 36375339 Pak Brunei Investment Company Limited Fax: (042) 36374839 Pak-Libya Holding Company (Pvt.) Limited E-mail: [email protected] Pak Oman Investment Company Limited Website: www.vcl.com.pk Saudi Pak Industrial & Agricultural Investment Co. Limited Factory Silk Bank Limited Iskanderabad Distt. Mianwali. Soneri Bank Limited Phone: (0459) 392237-8 Standard Chartered Bank (Pakistan) Limited Summit Bank Limited The Bank of Khyber The Bank of Punjab Trust Investment Bank Limited HSBC Bank Middle East Limited United Bank Limited
3 directors’ review
The Directors of your Company have pleasure to present the financial statements of the Company for the half year ended December 31, 2011 duly reviewed by the Auditors, in compliance with Section 245 of the Companies Ordinance, 1984.
The Company recorded net sales of Rs.7,021 Million during the first half year against sales of Rs.6,212 Million in the corresponding period. Sales revenue depicted growth of 13% mainly due to increased local and export retention prices. Increase in prices was mainly driven by substantial increase in production costs. Gross profit increased to Rs.1,583 Million in current period as compared to Rs.856 Million in the corresponding period last year. Operating profit of Rs.1,044 Million was achieved during the period under review as compared to operating loss of Rs.8 Million in the corresponding period. Significant growth in operating earnings emanated partially from higher cement prices and greatly from efficiencies in operations through commissioning and running of Waste Heat Recovery Plant along with other cost reduction measures adopted by the Company. International coal prices remained stable during the period. However, frequent power and gas shortages, increased power tariffs and rise in other input costs continued to push the cost of production upwards during the current period. Distribution, administration and other operating costs were effectively controlled. Financial cost increased by 16% mainly due to capitalization of Waste Heat Recovery Plant during the current period and foreign exchange losses owing to Pak Rupee devaluation.
During the 2nd quarter of the current period, Company recorded pre-tax profit of Rs.16 Million as compared to pre-tax loss of Rs.503 Million in the corresponding period. Overall, during the first half year, Company suffered pre-tax loss of Rs.205 Million after accounting for financial charges of Rs.1,228 Million. During the corresponding period last year, pre-tax loss was recorded at Rs.1,112 Million.
Future Outlook
Due to continuous increase in production costs and inflationary pressures, going forward it is reasonable to expect that cement prices will increase further. We are endeavoring to improve our margins and profit through greater use of alternate fuels, efficient operation of plants, both grey and white and by meticulously adhering to measures adopted to reduce overhead costs. In addition, increase in dispatches to Afghanistan due to improved law and order situation, coupled with improved prices, shall support export growth and margins. Exports by sea are expected to remain at a lower level than last year due to diminished margins and increase in overland freight costs from plant to Karachi. The Company is looking keenly to positive developments in trade relations between Pakistan and India as it is ideally located for export of cement by road to adjoining states.
Acknowledgment
The Board takes this opportunity to express their deep sense of gratitude and thanks to the shareholders, employees, customers, bankers and other stakeholders for their confidence and faith that they have always reposed in us.
For and on behalf of the Board
(Sayeed Tariq Saigol) Lahore: February 23, 2012 Chief Executive
4 Independent Auditors Report on Review of Condensed Interim Financial Information to the Members
Introduction
We have reviewed the accompanying condensed interim balance sheet of Maple Leaf Cement Factory Limited (“the Company”) as at 31 December 2011, and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim cash flow statement, condensed interim statement of changes in equity and notes to the condensed interim financial information for the six months period then ended (here-in-after referred as the “condensed interim financial information”). Management is responsible for the preparation and presentation of this condensed interim financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on this condensed interim financial information based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity.” A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.
The figures for the three months period ended 31 December 2011 and 31 December 2010, in the condensed interim profit and loss account and condensed interim statement of comprehensive income have not been reviewed and we do not express a conclusion thereon.
The corresponding figures presented are based on financial statements of the Company for the six months period ended 31 December 2010 and year ended 30 June 2011, which were reviewed / audited by another firm of auditors, whose reports dated 23 February 2011 and 27 September 2011, respectively, expressed an unqualified conclusion / opinion thereon.
KPMG Taseer Hadi & Co. Lahore: Chartered Accountants Date: 23 February 2012 (Kamran Iqbal Yousafi)
5 CONDENSED INTERIM BALANCE SHEET AS AT DECEMBER 31, 2011
Un-audited Audited Note December 31, June 30, 2011 2011 (Rupees in thousand)
EQUITY AND LIABILITIES
Share capital and reserves Authorised share capital 7,000,000 7,000,000
Issued, subscribed and paid up capital 5,803,617 5,803,458 Reserves 3,305,762 3,306,480 Accumulated losses (6,100,484) (5,976,651)
3,008,895 3,133,287 Surplus on revaluation of property, plant and equipment - net of tax 4 5,423,260 5,548,120
Non-current liabilities
Long term loans from banking company 5 2,452,380 2,557,185 Redeemable capital 7,583,000 7,983,000 Syndicated term finances 1,422,000 1,497,000 Liabilities against assets subject to finance lease 356,802 464,366 Long term deposits 5,919 5,569 Deferred liabilities: - deferred taxation 6 2,061,787 2,114,100 - employee compensated absences 21,391 19,149
13,903,279 14,640,369
Current liabilities
Trade and other payables 3,389,808 4,115,879 Accrued profit / interest / markup 1,017,725 791,161 Short term borrowings 7 3,849,891 4,084,666 Current portion of: - long term loans from banking company 665,442 448,473 - redeemable capital 703,400 306,800 - syndicated term finance 75,600 1,200 - liabilities against assets subject to finance lease 8 726,058 620,161
10,427,924 10,368,340 Contingencies and commitments 9 - -
32,763,358 33,690,116
The annexed notes 1 to 21 form an integral part of this condensed interim financial information.
Chief Executive Officer Director 6 Un-audited Audited Note December 31, June 30, 2011 2011 (Rupees in thousand) ASSETS
Non current assets
Property, plant & equipment 10 27,503,421 28,203,393 Intangible assets 13,193 17,591 Long term investment 11 - 200 Long term loans to employees - secured 2,973 2,531 Deposits and prepayments 52,036 52,036
27,571,623 28,275,751
Current assets
Stores, spares and loose tools 2,751,533 3,032,946 Stock-in-trade 662,341 539,084 Trade debts 12 747,559 560,103 Loans and advances 110,299 145,061 Investments 13 20,485 20,950 Deposits and short term prepayments 93,884 121,896 Accrued profit 541 890 Refunds receivable from government 16,797 16,797 Due from subsidiary company - 383,934 Other receivables 14 277,813 98,152 Income tax - net of provisions 202,075 206,382 Cash and bank balances 308,408 288,170
5,191,735 5,414,365
32,763,358 33,690,116
Chief Executive Officer Director 7 CONDENSED INTERIM Profit And Loss Account For the six months period ended December 31, 2011 (UN-AUDITED)
For the six months period ended For the three months period ended December 31, December 31, December 31, December 31, 2011 2010 2011 2010 Note (...... Rupees in thousand ...... )
Sales - net 15 7,020,870 6,211,886 3,664,694 3,301,759 Cost of goods sold (5,437,972) (5,356,239) (2,751,568) (2,765,120)
Gross profit 1,582,898 855,647 913,126 536,639
Administration expenses (109,098) (103,472) (62,672) (50,677) Distribution expenses (429,712) (759,858) (192,682) (437,417)
(538,810) (863,330) (255,354) (488,094)
Operating profit 1,044,088 (7,683) 657,772 48,545
Finance cost 16 (1,228,138) (1,055,537) (617,807) (520,808) Other operating expenses (37,549) (60,285) (27,187) (39,133)
(1,265,687) (1,115,822) (644,994) (559,941) Other operating income 16,937 11,316 2,854 8,715 (Loss) / Profit before taxation (204,662) (1,112,189) 15,632 (502,681) Taxation 17 (18,404) (2,716) (10,419) 6,574
(Loss) / Profit after taxation (223,066) (1,114,905) 5,213 (496,107)
Loss per share - basic and diluted Rupees (0.47) (2.40) (0.02) (0.97)
The annexed notes 1 to 21 form an integral part of this condensed interim financial information.
Chief Executive Officer Director
8 CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME For the six months period ended December 31, 2011 (UN-AUDITED)
For the six months period ended For the three months period ended December 31, December 31, December 31, December 31, 2011 2010 2011 2010 (...... Rupees in thousand ...... )
(Loss) / Profit after taxation (223,066) (1,114,905) 5,213 (496,107)
Other comprehensive income
Surplus on remeasurement of investments available for sale on fair value - 143,373 - 108,695
Deferred tax relating to component of other comprehensive income - (37,635) - (28,532)
- 105,738 - 80,163
Total comprehensive (loss) / income for the period (223,066) (1,009,167) 5,213 (415,944)
The annexed notes 1 to 21 form an integral part of this condensed interim financial information.
Chief Executive Officer Director
9 CONDENSED INTERIM cash flow statement For the six months period ended December 31, 2011 (un-audited)
Note December 31, December 31, 2011 2010 (Rupees in thousand) Cash flow from operating activities
Cash generated from operations before working capital changes 18 1,856,778 458,616
(Increase) / decrease in current assets Stores, spares and loose tools 281,413 (418,128) Stock-in-trade (123,257) (159,098) Trade debts (187,456) (204,436) Loans and advances 34,762 27,112 Deposits and short term prepayments 28,012 (33,971) Other receivables (178,758) (61,203) Long term loans to employees (442) 820 Trade & other payables (752,255) 1,105,608
(897,981) 256,704
Cash generated from operating activities 958,797 715,320
Income taxes paid (66,409) (95,209) Compensated absences paid (11,697) (2,201)
Net cash in / (out) flow from operating activities 880,691 617,910
Cash flow from investing activities
Purchase of property, plant and equipment (122,921) (340,311) Sale proceeds from Investment 388,483 - Long term investment 200 - Deposits - 283 Profit on bank deposits received 3,288 2,027 Dividend income - 4,570
Net cash in / (out) flow from investing activities 269,050 (333,431)
Cash flow from financing activities
Syndicate term finance (600) - Long term loans and finances 112,164 (91,835) Redeemable capital (3,400) - Long term deposits 350 1,870 Liabilities against assets subject to finance lease (1,667) 2,987 Short term borrowings (234,775) 276,138 Finance cost paid (1,001,574) (332,373) Dividend paid (1) -
Net cash out flow from financing activities (1,129,503) (143,213)
Net increase in cash and cash equivalents 20,238 141,266 Cash and cash equivalents at the beginning of the period 288,170 73,265
Cash and cash equivalents at the end of the period 308,408 214,531
The annexed notes 1 to 21 form an integral part of this condensed interim financial information.
Chief Executive Officer Director 10 CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY For the six months period ended December 31, 2011 (un-audited)
Capital Reserves Revenue Reserves Reserve on measurement Capital Share Share Sub- General Accumulated Sub- of available redemption Total Capital premium Total reserve Loss Total for sale reserve investments
...... Rupees in thousand ......
Balance as at June 30, 2010 4,264,108 2,068,336 330,345 381,752 2,780,433 1,400,000 (4,310,333) (2,910,333) 4,134,208
Shares issued during the period 1,538,462 (538,462) - - (538,462) - - - 1,000,000
Total comprehensive loss
Loss for the six months period ended December 31, 2010 ------(1,114,905) (1,114,905) (1,114,905) Other comprehensive income for six months period ended December 31, 2010 - - 105,738 - 105,738 - - - 105,738
- - 105,738 - 105,738 - (1,114,905) (1,114,905) (1,009,167) Dividend on preference shares for the six months period ended December 31, 2010 ------(26,397) (26,397) (26,397)
Balance as at December 31, 2010 5,802,570 1,529,874 436,083 381,752 2,347,709 1,400,000 (5,451,635) (4,051,635) 4,098,644
Total comprehensive loss
Loss for the six months period ended June 30, 2011 ------(654,131) (654,131) (654,131) Other comprehensive loss for the six months period ended June 30, 2011 - - (436,083) - (436,083) - - - (436,083)
- - (436,083) - (436,083) - (654,131) (654,131) (1,090,214) Surplus on revaluation of property, plant and equipment - realized through incremental depreciation- net of tax ------138,701 138,701 138,701 - realized through disposal - net of tax ------11,549 11,549 11,549
Transfer from capital redemption reserve - - - (5,146) (5,146) - 5,146 5,146 -
Effect of conversion of preference shares into ordinary shares 888 ------888
Dividend on preference shares for the six months period ended June 30, 2011 ------(26,281) (26,281) (26,281)
Balance as at June 30, 2011 5,803,458 1,529,874 - 376,606 1,906,480 1,400,000 (5,976,651) (4,576,651) 3,133,287
Total comprehensive loss
Loss for the six months period ended December 31, 2011 ------(223,066) (223,066) (223,066) Other comprehensive income for the six months period ended December 31, 2011 ------
------(223,066) (223,066) (223,066)
Surplus on revaluation of property, plant and equipment - realized through incremental depreciation- net of tax - - - - - 124,860 124,860 124,860
Transfer from capital redemption reserve - - - (718) (718) - 718 718 -
Effect of conversion of preference shares into ordinary shares 159 ------159 Dividend on preference shares for the six months period ended December 31, 2011 ------(26,345) (26,345) (26,345)
Balance as at December 31, 2011 5,803,617 1,529,874 - 375,888 1,905,762 1,400,000 (6,100,484) (4,700,484) 3,008,895
The annexed notes 1 to 21 form an integral part of this condensed interim financial information.
Chief Executive Officer Director 11 SELECTED EXPLANATORY NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION For the six months period ended December 31, 2011 (un-audited) 1. General information
Maple Leaf Cement Factory Limited (“the Company”) was incorporated in Pakistan on April 13, 1960 under the Companies Act, 1913 (now the Companies Ordinance, 1984) as a public company limited by shares. The Company is currently listed on all three Stock Exchanges of Pakistan. The Registered Office of the Company is situated at 42-Lawrence Road, Lahore, Pakistan. The cement factory is located at Iskanderabad District Mianwali in the province of Punjab. The principal activity of the Company is production and sale of cement. The Company is a subsidiary of Kohinoor Textile Mills Limited.
2, Basis of preparation
This condensed interim unconsolidated financial information has been presented in condensed form in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting and is being submitted to shareholders in accordance with the requirements of section 245 of the Companies Ordinance, 1984. The disclosures in the condensed interim unconsolidated financial information do not include the information reported for full annual financial statements and should therefore be read in conjunction with the annual financial statements as at and for the year ended June 30, 2011.
3. Significant accounting policies
The accounting policies and methods of computation adopted for the preparation of this condensed interim unconsolidated financial information are the same as those applied in the preparation of the financial statements for the preceding year ended June 30, 2011.
Un-audited Audited December 31, June 30, 2011 2011 (Rupees in thousand) 4. Surplus on revaluation of property, plant and equipment - net of tax
Gross surplus
Balance at beginning of period / year 7,662,220 - Surplus arising due to revaluation of property, plant and equipment during the period / year - 7,873,821 7,662,220 7,873,821
Surplus on revaluation of property, plant and equipment - realized through incremental depreciation (177,172) (195,338) - realized through disposal - (16,263) 7,485,048 7,662,220 Related deferred tax liability on:
Balance at the beginning of period / year 2,114,100 -
Surplus arising due to revaluation of property, plant and equipment during the period / year - 2,175,451 Surplus on revaluation of property, plant and equipment - realized through incremental depreciation (52,312) (56,636) - realized through disposal - (4,715)
2,061,788 2,114,100
5,423,260 5,548,120
12 Un-audited Audited December 31, June 30, 2011 2011 (Rupees in thousand) 5 Long term loans from banking company - secured
Long term finance facility 286,898 374,733 Habib Bank Limited - term loan facility 660,479 715,519 Deferred markup loan 1,333,574 1,466,933 HSBC medium term loan 5.1 171,429 -
2,452,380 2,557,185
5.1 HSBC medium term loan
Balance at beginning of the period/ year - - Add: Rescheduling of facility as long-term 5.1.1 200,000 -
200,000 - Less: Current maturity 28,571 -
171,429 -
5.1.1 During the current period the Company has restructured its existing short term loan of Rs. 160 million and running finance from HSBC Bank Middle East Limited into a medium term loan of Rs. 200 million. As per terms of the agreement, the principal balance is repayable in 21 equal quarterly installments starting from May 23, 2012 to May 23, 2017.
This facility carries mark-up rate at 6-month KIBOR plus 1.25% per annum and will be charged half yearly in arrears payable bi annually. Prompt payment rebates in mark up are available, if payment is made within 15 days of the due date.
This facility is secured against first pari passu equitable hypothecation charge of Rs. 200 million over present and future current assets of the Company and ranking hypothecation charge for Rs. 120 million over present and future current assets. Furthermore, it is also secured against personal guarantees of directors. Un-audited Audited December 31, June 30, 2011 2011 (Rupees in thousand) 6. Deferred taxation
This comprises the following:
Deferred tax liability on taxable temporary differences arising in respect of:
-Accelerated tax depreciation allowance 3,737,303 3,073,864 -Surplus on revaluation of property, plant and equipment 2,061,788 2,114,100
5,799,091 5,187,964 Deferred tax asset on deductible temporary differences arising in respect of:
-Unused tax losses 3,342,421 2,660,619 -Lease finances 90,788 137,482 -Employees’ compensated absences 6,316 5,552 -Minimum tax recoverable against normal tax charge in future years 297,779 270,211
3,737,304 3,073,864
2,061,787 2,114,100 13 6.1 The Company has not recognized the deferred tax asset amounting to Rs. 1,303 million (June 2011: 1,301 million) arising due to available tax losses, as sufficient future tax profits may not be available against which the said assets could be utilized.
Un-audited Audited December 31, June 30, 2011 2011 (Rupees in thousand) 7. Short term borrowings
From banking companies
Cash and running finances - secured 3,801,376 3,727,712 Temporary bank overdraft - unsecured 48,515 356,954
3,849,891 4,084,666
8. Current portion of liabilities against assets subject to finance lease
This includes 5 overdue principal installments of Islamic Corporation for Development lease amounting to Rs. 479 million (June 30, 2011: Rs 367 million).
9. Contingencies and commitments
9.1 Contingencies
9.1.1 The Company had filed a petition in the The Lahore High Court against the fuel price adjustment charged by FESCO amounting to Rs. 70 million in the electricity bills of October, 2011 and November, 2011. The Lahore High Court had initially granted a stay on such payment but subsequently on the request of FESCO vacated such stay and instructed the Company to pay such amount in three equal installments out of which the first installment has been paid on the January 31, 2012.
Thereafter the Company had preferred an appeal to the Supreme Court of Pakistan based on which the Supreme Court has referred the case to The Lahore High Court. The matter is pending in The Lahore High Court but the management believes that the case will be decided in favour of the Company.
9.1.2 Except as mentioned in the note 9.1.1, there have been no significant changes in the status of contingencies as reported in the preceding annual financial statement of the Company for the year ended June 30, 2011. Un-audited Audited December 31, June 30, 2011 2011 (Rupees in thousand)
9.2 Commitments
Guarantees issued by various commercial banks in respect of financial and operational obligations of the Company to various institutions and corporate bodies 403,867 397,867 Commitments against capital expenditures 170,250 235,014
Commitments against irrevocable letter of credit against spare parts 40,610 44,513
614,727 677,394
14 Un-audited Audited December 31, June 30, 2011 2011 (Rupees in thousand) 10. property, plant and equipment
Operating assets 10.1 27,463,927 24,409,108 Capital work in progress - at cost 10.2 39,494 3,794,285
27,503,421 28,203,393
10.1 Operating assets
Balance at beginning of the period / year 24,409,108 17,837,028
Add: Surplus on revaluation of property, plant and equipment 10.1.1 - 7,873,821 Additions during the period / year 10.1.2 3,877,712 54,630
3,877,712 7,928,451 Less: Book value of operating assets disposed-off during the period / year - 103,105 Depreciation charge during the period / year 822,893 1,253,266
27,463,927 24,409,108
10.1.1 The Company had revalued its freehold land, buildings on freehold land, roads, bridges, railway sidings, plant and machinery at December 31, 2010 by Empire Enterprises Private Limited, independent valuers not connected with the company and approved by Pakistan Banks’ Association (PBA) in “any amount” category. Un-audited Audited December 31, June 30, 2011 2011 (Rupees in thousand) 10.1.2 Additions during the period / year:
Buildings on freehold land 416,360 588 Plant and machinery 3,446,676 36,553 Furniture, fixtures and equipment 2,877 3,697 Roads, bridges and railway sidings 4,616 - Vehicles 7,183 13,791 Share of joint assets - 1
3,877,712 54,630
10.2 Capital work in progress
Plant and machinery 23,066 3,202,068 Unallocated capital expenditures 1,001 477,163 Advances to suppliers against: - Purchase of land 2,000 2,000 - Civil works 1,505 3,505 - Plant & machinery 9,728 104,999 - Vehicle 2,194 4,550
39,494 3,794,285 15 11. Long term investment
During the period Vital Trading (Pvt.) Limited (A wholly owned subsidiary company) was wound up on August 13, 2011 after complying with all regulatory and procedural requirements. The Company held 99.99% of paid up capital of Vital Trading (Pvt.) Ltd.
Un-audited Audited December 31, June 30, 2011 2011 (Rupees in thousand) 12. Trade debts
Considered good Export - secured 165,400 125,620 Local - unsecured 630,939 483,263
796,339 608,883
Less: Provision for doubtful debts 48,780 48,780
747,559 560,103
13. Investments
At fair value through profit or loss - quoted
Mutual Funds: Noman Abid Reliance Income Fund Fixed fund ( June 30, 2011: Fixed Fund) 14,000 14,000
Alfalah GHP Cash Fund 4,000 units ( June 30, 2011: 4000 units) 2,000 2,000
16,000 16,000 Add: adjustment arising from measurement on fair value 428 299
16,428 16,299 Cement: Fauji Cement Company Ltd. 121,800 (June 30, 2011: 121,800 ) ordinary shares of Rs.10 each 1,949 1,949
Chemicals: Highnoon Laboratories Ltd. 127,897 (June 30, 2011: 127,897 ) ordinary shares of Rs.10 each 9,916 9,916
Fertilizers: Shakarganj Mills Ltd. 6,000 (June 30, 2011: 6,000 ) ordinary shares of Rs.10 each 250 250 12,115 12,115 Less: adjustment arising from measurement on fair value (8,058) (7,464)
4,057 4,651
20,485 20,950
16 Un-audited Audited December 31, June 30, 2011 2011 (Rupees in thousand) 14. Other receivableS
Inland freight subsidy receivable 62,060 62,060 Due from Kohinoor Textile Mills Limited (The Holding Company) 181,896 - Others 33,857 36,092
277,813 98,152
Six months period ended December 31, December 31, 2011 2010 (Rupees in thousand) 15. Sales - net
Local sales - gross 7,058,767 6,093,741
Less: Excise duty 459,404 776,989 Sales tax 950,070 881,971 Commission 60,171 67,150
1,469,645 1,726,110
Local sales - net 5,589,122 4,367,631
Export sales 1,431,748 1,844,255
7,020,870 6,211,886
16. fINance cost
Profit / Interest / Mark-up on long term loans, finances, redeemable capital and short term finances 1,130,947 1,009,286 Bank guarantees’ commission - 1,697 Exchange loss 72,858 19,082 Realized loss on derivative cross currency interest rate swap agreement 5,739 6,382 Bank charges 18,594 19,090
1,228,138 1,055,537
17 Six months period ended December 31, December 31, 2011 2010 (Rupees in thousand)
17. Taxation
Current tax 17.1 70,716 40,351 Deferred tax (52,312) (37,635)
Taxation 18,404 2,716
17.1 Provision for current tax represents minimum tax under section 113 and 154 of the Income Tax Ordinance, 2001.
Six months period ended December 31, December 31, 2011 2010 (Rupees in thousand) 18. Cash generated from operations before working capital changes
(Loss) for the period - before taxation (204,662) (1,112,187) Adjustments for: Depreciation 822,893 514,292 Amortization 4,397 5,746 Gain on disposal of investment (4,570) - Gain on investment-through profit and loss (259) (770) Employees’ compensated absences 13,939 2,379 Finance cost 1,228,138 1,055,537 Profit on bank deposits (2,939) (1,811) Preference dividend converted to ordinary shares (159) - Dividend income - (4,570)
1,856,778 458,616
18 19. Transactions with related parties
Related parties comprise of the holding company, associated companies, directors, key management personnel and employee benefits funds. The Company in the normal course of business carries-out transactions with various related parties. Amounts due from holding company is shown under other receivables. Other significant transactions with related parties are as follows:
Six months period ended December 31, December 31, Relationship Nature of transaction 2011 2010 with the Company (Rupees in thousand)
Holding company - sale of goods and services 128 148 - purchase of fixed assets - 204
Associated company - dividend received - 4,570
Key management personnel - Remuneration and other benefits 48,296 38,886
employee benefit plan - Funds received 7,255 -
20. Date of authorization for issue
This condensed interim financial information has been approved by the Board of Directors of the Company and authorized for issue on February 23, 2012.
21. General
Figures have been rounded off to the nearest thousand rupees except stated otherwise.
Chief Executive Officer Director
19 20