Half Yearly Report (Un-Audited) For the Period ended June 30, 2020 Contents Page # Company Information 2 Sales Offices 3 Directors’ Review 4 Independent Auditors’ Review Report To the Members of KSB Pumps Company Limited Report on review of Interim Financial Statements 5 Condensed Interim Statement of Financial Position 6 Condensed Interim Statement of Profit or Loss and Other Comprehensive Income 8 Condensed Interim Statement of Changes in Equity 9 Condensed Interim Statement of Cash Flows 10 Notes to the Condensed Interim Financial Statements 11 2 Company Information Company Information Board of Directors Dr. Sven Baumgarten Chairman Mohammad Masud Akhtar Managing Director / CEO Sajid Mahmood Awan Dieter Antonius Pott Ayesha Aziz Hasan Aziz Bilgrami Shezada Mazhar Jamal Nasim (Nominee NIT) Company Secretary Faisal Aman Khan Management Mohammad Masud Akhtar Managing Director / CEO Sajid Mahmood Awan Finance, I.T & Administration Syed Tariq Ali Operations Muhammad Imran Malik Sales & Strategic Marketing Faisal Aman Khan Corporate Affairs & IR Auditors A.F. Ferguson & Co. Chartered Accountants Legal Advisors Mandviwala & Zafar Bankers Allied Bank Limited BankIslami Pakistan Limited Bank Alfalah Limited Deutsche Bank AG Habib Bank Limited MCB Bank Limited National Bank of Pakistan United Bank Limited Audit Committee Jamal Nasim Chairman Dieter Antonius Pott Member Shezada Mazhar Member Secretary Audit Committee Saeed Hussain HR & R Committee Shezada Mazhar Chairman Mohammad Masud Akhtar Member Hasan Aziz Bilgrami Member Secretary HR & R Committee Shahzad Saleem Registered Office 16/2 Sir Aga Khan Road, Lahore - 54000. Ph: (042) 36304173, 36370969 Fax: (042) 36368878, 36366192 Email: [email protected] Works Hazara Road, Hassanabdal Ph: (057) 2520236 Fax: (057) 2520237 Email: [email protected] Share Registrar CDC Share Registrar Services Limited CDC House, 99-B, Block B, SMCHS Shahra-e-Faisal, Karachi-74000 Tel: (021) 111-111-500 Fax: (021) 34326053 Sales 3 Offices Sales Offices Lahore 16/2 Sir Aga Khan Road, Lahore. Ph: (042) 111 572 786, 36304173 Fax: (042) 36366192, 36368878 Email: [email protected] Multan Golden Heights, Nusrat Road, Multan. Ph: (061) 111 572 786 Fax: (061) 4541784 Email: [email protected] Rawalpindi Race Course Landmark, 299-A, Main Peshawar Road, Rawalpindi Cantt Tel: +92 51 5491481-82 Fax: +92 51 5491237 Email: [email protected] Karachi 307 & 308, 3rd Floor Parsa Tower, Block 6, PECHS, Shahrah-e-Faisal, Karachi Ph: (021) 111 572 786 Fax: (021) 34388302 Email: [email protected] KSB Exclusive Partners Office Sr. Name City Location Status Province Partners Contact# Fax Email Landline 65-A Ferozpur Road, KSB Hammad Dominar 042- 1 Lahore Link Samanabad Exclusive Punjab Malik / 0302-8744449/8 042-37500078 [email protected] Engineers 37500078 Road, near LOS Partner Syed Mehdi Industrial 20-C Mezzanine KSB Development Floor, Indus Center, Saquib 021- 021- 2 Karachi Exclusive Sindh 0300-8203077 [email protected] & Engineering 14th Com st. PH-II, Khawaja 35390481/2 35390483 Partner Associates DHA KSB Wali Muhammad Zonkiram Road near Wali 3 Quetta Exclusive Balochistan 0300-8387668 081-2829635 081-2829635 [email protected] & Co. mellennium Mall Muhammad Partner 3rd floor, Mall KSB Pak Atlantis 4 Peshawar Tower, 35- The Mall, Exclusive KPK Atif Javed 0345-5555939 091-5285679 091-5278919 [email protected] Pumps Peshawar Cantt Partner Office # 23, 1st Floor KSB Imran Yousaf / 5 B&I Engineering Lahore Al-Latif Centre, Main Exclusive Punjab 0300-4056939 042-32801273 - [email protected] Arbab Bilal Bouleward, Gulberg Partner 4th Floor, Building Modern # 11-C/2, Lane-11 KSB 0333-7299905 021- 021- 6 Technology & Karachi Bukhari Commercial Exclusive Sindh Abdul Qayyum [email protected] 0311-1000953 35156121-4 35156125 Traders DHA Phase-6, Partner Karachi 4 Directors’ Review Directors’ Review I am pleased to present the financial statements of KSB Pumps Company Limited for the 1st half ended June 30, 2020. World economy has witnessed unprecedented decline since novel coronavirus outbreak has not only damaged human lives but also paralyzed global economic activity. Pakistan economy, struggling with multiple issues, has also been severely disrupted and resultantly contracted in FY 2020. Government is facing dual challenge: to contain spread of virus and to mitigate socio- economic losses. Rupee devaluation and rising fuel prices have further adverse impact on imports. In order to combat the crisis and to provide liquidity support to businesses and households, various steps have been taken like relief package by government, and significant policy rate cut, refinance and other schemes by SBP. As COVID-19 is fading away, overall activity is expected to rebound but recovery would be gradual given the magnitude of losses. Law & order and security situation remained under control, however, downside risks like political unrest, tensions with neighbouring country, and FATF review continue to pose threat to the economic performance. KSB Pakistan underwent slowdown in 1st half of year 2020. Company’s operations remained suspended for a couple of weeks in compliance with lockdown directives by government. Later, under strict adherence to SOPs, some sections were partially opened in April, and by end of Q2 major operations were resumed. The company has posted a turnover of PKR 1.55 Billion with earnings before interest and tax of 38 million while earnings before tax remained negative 41 million. Despite very low activity in Q2-2020, the company has been able to sustain its operations through better collection and strict cost control measures. On external front, activity in both public and private sectors had gone near to halt during lockdown period. Now while remarkable reduction in COVID cases have been observed and restrictions are being lifted, healthy business inflow from all major sectors is anticipated in remaining part of the year. Still, achievement of business targets for year 2020 depends on the pace of recovery. I would like to thank all employees, for their dedication and commitment has been a source of strength to the company in difficult circumstances. Mohammad Masud Akhtar MD / Chief Executive Officer 19th August, 2020 Lahore, Pakistan Auditors’ 5 Review Independent Auditors’ Review Report To the Members of KSB Pumps Company Limited Report on review of Interim Financial Statements Introduction We have reviewed the accompanying condensed interim statement of financial position of KSB Pumps Company Limited as at June 30, 2020 and the related condensed interim statement of profit or loss and other comprehensive income, condensed interim statement of changes in equity, and condensed interim statement of cash flows, and notes to the financial statements for the six-month period then ended (here-in-after referred to as the “interim financial statements”). Management is responsible for the preparation and presentation of this interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these financial statements based on our review. The figures of the condensed interim statement of profit or loss and other comprehensive income for the three-month periods ended June 30, 2020 and 2019 have not been reviewed, as we are required to review only the cumulative figures for the six- month period ended June 30, 2020. 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 statements 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 interim financial statements is not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The engagement partner on the audit resulting in this independent auditor’s report is Amer Raza Mir. A.F.Ferguson & Co. Chartered Accountants Lahore Date: August 19, 2020 6 Balance Sheet Condensed Interim Statement of Financial Position (Un-audited) As at June 30, 2020 June 30, December 31, 2020 2019 Note (Rupees in thousand) EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorised capital 15,000,000 (2019: 15,000,000) ordinary shares of Rs 10 each 150,000 150,000 Issued, subscribed and paid up capital 13,200,000 (2019: 13,200,000) ordinary shares of Rs 10 each 132,000 132,000 General Reserves 1,805,600 1,729,600 Unappropriated profit (55,480) 96,298 1,882,120 1,957,898 NON CURRENT LIABILITIES Long term finances - secured 5 290,888 125,000 Employees’ retirement and other benefits 95,926 90,691 Deferred liabilities 51,902 57,884 438,716 273,575 CURRENT LIABILITIES Current portion of long term finances - secured 65,714 125,000 Short term finances - secured 1,051,045 1,086,457 Trade and other payables 6 1,460,542 1,402,721 Contract Liability 9,505 8,486 Unclaimed dividend 10,107 9,946