FINANCIAL STATEMENTS (UN-AUDITED) FOR THE PERIOD ENDED MARCH 31, 2021 1 TABLE OF CONTENTS Contents Company Information Directors’ Review Report (English & Urdu) Condensed Interim Statement of Financial Position Condensed Interim Statement of profit or Loss and Other Comprehensive Income Condensed Interim statement of Cash Flows Condensed Interim statement of Changes in Equity Notes to the Condensed Interim Financial Statements FINANCIAL STATEMENTS (UN-AUDITED) FOR THE PERIOD ENDED MARCH 31, 2021 2 COMPANY INFORMATION BOARD OF DIRECTORS Mr. Iqbal Hussain Agha Chairman, Non-Executive Director Mr. Hussain Iqbal Agha Chief Executive Officer Mr. Raza Agha Executive Director Mr. Shazia Agha Executive Director Mr. Akbar Pesnani Independent Director Mr. Saleem Parekh Independent Director Mr. Askari Agha Independent Director AUDIT COMMITTEE Mr. Saleem Parekh Chairman Mr. Iqbal Hussain Agha Member Mr. Askari Agha Member HUMAN RESOURCE & RUMENERATION COMMITTEE Mr. Akbar Pesnani Chairman Mr. Iqbal Hussain Agha Member Mr. Raza Agha Member CHIEF FINANCIAL OFFICER Mr. Kamran Ahmed COMPANY SECRETARY Mr. Muhammad Muneeb Khan HEAD OF INTERNAL AUDIT Mr. Muhammad Azam EXTERNAL AUDITORS Reanda Haroon Zakaria & Company Chartered Accountants Progressive Plaza, Baumont Road, Karachi, Pakistan SHARE REGISTRAR CDC Share Registrar Services Limited CDC House, Main Shahrah-e-Faisal, Karachi, Pakistan FINANCIAL STATEMENTS (UN-AUDITED) FOR THE PERIOD ENDED MARCH 31, 2021 3 LEGAL ADVISOR Asad Mehmood Uni Shopping Center, Abdullah Haroon Road, Karachi, Pakistan BANKERS Bank Al Habib Limited Faysal Bank Limited Askari Bank Limited Habib Metro Bank Limited Habib Bank Limited MCB Islamic Bank Limited Bank Al Falah Limited Muslim Commercial Bank Limited Meezan Bank Limited Dubai Islamic Bank Limited Bank Islami Pakistan Limited The Bank of Khyber United Bank Limited National Bank of Pakistan JS Bank Limited Samba Bank Limited REGSITERED OFFICE Plot No. N.W.I.Z/1/P-133, (SP-6), D-2, Port Qasim Authority, Karachi, Pakistan PTCL# 021-34156219-21 CORPORATE OFFICE Office 801 & 804, 8th Floor, Emerald Tower, G-19 II Talwar, Block 5, Clifton, Karachi, Pakistan UAN # 021-111-111-2442 [email protected] SYMBOL AT PAKISTAN STOCK EXCHANGE AGHA WEBSITE INFORMATION www.aghasteel.com FINANCIAL STATEMENTS (UN-AUDITED) FOR THE PERIOD ENDED MARCH 31, 2021 4 DIRECTORS’ REVIEW REPORT The Board of Directors of your Company present their review report on the financial and operational performance of your Company for the quarter and nine months’ period ended March 31st, 2021. The key financial highlights of the Company are as follows: Nine Months Nine Months Three Months Three Months ended ended ended ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 (Unaudited) (Unaudited) (Unaudited) (unaudited) (Rs. in million) Sales - net 15,559 10,884 5,281 3,842 Gross Profit 3,189 2,667 1,111 956 Operating Profit 1,791 899 580 370 Profit before tax 1,809 1,008 550 439 Profit after tax 1,598 1,015 541 278 Earnings per share Basic (in Rupees) 3.06 2.51 0.94 0.69 Diluted (in Rupees) 3.06 2.27 0.94 0.66 FINANCIAL AND OPERATIONAL HIGHLIGHTS Year 2020 turned out as one of the most challenging year in the history of our Company. The investor mood around the globe appears to be pleasant before the start of 2021 as government have placed large orders for procurement of vaccine. Tectonic events of 2020 will soon be behind us as life will slowly go back to normal. From Pakistan perspective, Covid-19 was relatively less damaging, but Pakistan still has to walk a long hard road ahead and continue with its macro-economic recovery process under the watchful eye of the IMF. The present government takes various measures to overcome the halted situation. As a result Pakistan's economy witnessed positive signs during third quarter of the ongoing fiscal year 2020-21 (FY20-21) as remittances grew 26.5%, foreign direct investment (FDI) rose 9.1%, tax collection went up 4.5%, and the primary balance has been in a surplus worth Rs258 billion. SBP, Monetary Policy Committee (Committee) reviewed its policy frequently to take appropriate action towards supporting growth and employment during these challenging times. The Committee considered that outlook for growth and inflation in Pakistan is likely to improve, therefore decided to keep the policy rate unchanged at 7%.During the quarter under review, the Pakistan Stock Exchange FINANCIAL STATEMENTS (UN-AUDITED) FOR THE PERIOD ENDED MARCH 31, 2021 5 Ltd (KSE-100 index) registered slightly increased to 44,491 points as of 31 March 2021 compared to 43,694 as of 31 December 2020. AlhamdulliLah, the market remained receptive to your Company. The Sales increased significantly during the quarter resulting in total sale of Rs.5,281 million during the third quarter as compared to Rs.3,842 million in the corresponding period last year with an overall growth of 37.43%. The increase in top line is associated with increase in sale prices as well as volumes. Your Company registered operating profit of Rs.580 million during three months’ period under review as against Rs.370 million in the similar period last year. Your Company posted profit before and after tax of Rs.550 million and 541 million respectively during the period under review as compared to the profit before and after tax of Rs. 439 million and 278 million respectively in the similar period last year. ACKNOWLEDGEMENT The board wishes to place on record the gratitude to Pakistan Stock Exchange, Securities and Exchange Commission of Pakistan and Shareholders for their continued valued support, assistance and guidance. The board would also like to thank untiring efforts of the Management and staff. For and on behalf of directors ___________________ _________________ Hussain Iqbal Agha Raza Iqbal Agha Chief Executive Officer Director Karachi: April 28th, 2021 FINANCIAL STATEMENTS (UN-AUDITED) FOR THE PERIOD ENDED MARCH 31, 2021 6 ڈائريکٹرز کی جائزه رپورٹ بورڈ آف ڈائريکٹر31 مارچ 2021 کو ختم ہونے والی ﺗيﺴری سہ ماہی اور نو ماه کی مدت کے لئے آپ کی کمپنی کی مالی اور آپريشنل کارکردگی سے متعلق اپنی جائزه رپورٹ پيش کرے گا۔ کمپنی کی اہم مالی جهلکياں اس طرح ہيں: Nine Months Nine Months Three Months Three Months ended ended ended ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 (Unaudited) (Unaudited) (Unaudited) (unaudited) (Rs. in million) Sales - net 15,559 10,884 5,281 3,842 Gross Profit 3,189 2,667 1,111 956 Operating Profit 1,791 899 580 370 Profit before tax 1,809 1,008 550 439 Profit after tax 1,598 1,015 541 278 Earnings per share Basic (in Rupees) 3.06 2.51 0.94 0.69 Diluted (in Rupees) 3.06 2.27 0.94 0.66 مالی اور آپريشنل جهلکياں: سال 2020 کمپنی کی ﺗاريخ کا ايک مشکل ﺗرين سال قرار پايا۔ 2021 کے آغاز سے قبل پوری دنيا ميں سرمايہ کاروں کا مزاج خوشگوار معلوم ہوﺗا ہے، کيونکہ حکومت نے ويکﺴين کی خريداری کے بڑے احکامات جاری کرديئے ہيں۔ 2020 کے مشکل واقعات جلد ہی ختم ہوں گے اور پهر زندگی آہﺴتہ آہﺴتہ معمول پر آجائے گی۔ پاکﺴتان کے نقطہ نظر سے، کوويڈ 19 نﺴبتا کم نقصان ده ﺗها ، ليکن پاکﺴتان کو اب بهی ايک طويل راه چلنا ہے اور آئی ايم ايف کی نگاه ميں اپنی معاشی بحالی کے عمل کو جاری رکهنا ہے۔ موجوده حکومت معاشی سﺴت روی صورﺗحال پر قابو پانے کے لئے مختلف اقدامات کررہی ہے ۔ اس کے نتيجے ميں رواں مالی سال 21-2020 کی ﺗيﺴری سہ ماہی کے دوران پاکﺴتان کی معيشت ميں مثبت عﻼمات ديکهنے ميں آئے جب ﺗرسيﻼت زر ميں 26.5 فيصد ، غير ملکی براه راست سرمايہ کاری ميں 9.1 فيصد کا اضافہ ہوا ، ٹيکﺴوں کی وصولی ميں 4.5 فيصد اضافہ ہوا ، اور بنيادی بيلنس 258 ارب روپے کی سرپلس ميں رہا ہے۔ FINANCIAL STATEMENTS (UN-AUDITED) FOR THE PERIOD ENDED MARCH 31, 2021 7 ايس بی پی ، مانيٹری پاليﺴی کميٹی نے اس مشکل وقت کے دوران ﺗرقی اور روزگار کی حمايت کے لئے موزوں اقدام اٹهانے کے لئے اپنی پاليﺴی کا کثرت سے جائزه ليا۔ کميٹی نے غور کيا کہ پاکﺴتان ميں افراط زر اور افراط زر کے نقطہ نظر ميں بہتری ﻻنے کا امکان ہے ، لہذا پاليﺴی کی شرح کو 7 فيصد پر کوئی ﺗبديلی نہيں رکهنے کا فيصلہ کيا گيا. زي ِر جائزه سہ ماہی کے دوران ، پاکﺴتان اسٹاک ايکﺴچينج لميٹڈ (کے ايس ای 100 انڈيکس) 31 دسمبر 2020 کے 43،694 کے مقابلے ميں 31 مارچ 2021 کے مقابلے ميں قدرے بڑه کر 44،491 پوائنٹس پر آ گيا ہے. الحمدﷲ، کاروباری سرگرمياں c کے لئے موزوں رہی. سہ ماہی کے دوران فروخت ميں نماياں اضافہ ہوا جس کے نتيجے ميں مجموعی طور پر رواں سہ ماہی کے دوران 5,281 ملين روپے کے مقابلے ميں گذشتہ سال کی اسی مدت کے دوران 3,842 ملين روپے ﺗهی . فروخت کی مجموعی نمو گذشتہ سہ ماہی کے مقابلہ ميں 37.43 فيصد رہی۔ ٹاپ ﻻئن ميں اضافے کے ساﺗه ساﺗه فروخت کی قيمتوں ميں بهی اضافہ ہوا ہے۔ کمپنی نے آپريٹنگ منافع کو جائزه کے ﺗحت ﺗين ماه کی مدت کے دوران 580 ملين روپے کے مقابلے ميں پچهلے سال اسی عرصے ميں 370 ملين روپے ﺗهے۔ کمپنی نے ٹيکس سے پہلے اور بعد ميں منافع پوسٹ کيا ﺗها۔ جائزے کے دوران بالترﺗيب 550 ملين اور 541 ملين روپے کے ٹيکس سے پہلے اور بعد کے منافع کے مقابلے ميں پچهلے سال اسی عرصہ ميں بالترﺗيب 439 ملين اور 278 ملين روپے ﺗهے۔ اظہار تشکر بورڈ پاکﺴتان اسٹاک ايکﺴچينج، سيکيورٹيز اينڈ ايکﺴچينج کميشن آف پاکﺴتان اورشيئر ہولڈرز کی مﺴلﺴل معاونت ، مدد اور رہنمائی پر ان کا شکريہ ادا کرنا چاہتا ہے۔ بورڈ انتظاميہ اور عملے کی انتهک کوششوں کا بهی شکريہ ادا کرنا چاہتا ہے۔ _________________ __________________ حسين اقبال آغا رضا اقبال آغا چيف ايگزيکٹو آفيسر ڈائريکٹر کراچی: 28 اپريل ، 2021 FINANCIAL STATEMENTS (UN-AUDITED) FOR THE PERIOD ENDED MARCH 31, 2021 8 AGHA STEEL INDUSTRIES LIMITED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS AT MARCH 31, 2021 (Unaudited) (Audited) March 31, June 30, 2021 2020 ASSETS Note - - - - Rupees in '000'- - - - Non-Current Assets Property, plant and equipment 6 16,833,473 13,825,569 Intangible asset 58,090 61,230 Long term deposits and receivable 7 522,890 539,972 17,414,453