Ghani Automobile Industries Limited

Transcription

1 Yalf Year Financial Statements -15 Ghani Automobile Industries Limited

2 Corporate Information BOARD OF DIRECTORS Mr. Imtiaz Ahmad Khan Mr. Anwaar Ahmad Khan Mr. Aftab Ahmad Khan Mrs. Reema Anwaar Mrs. Ayesha Aftab Mr. Junaid Ghani Mr. Obaid Ghani Mr. Jubair Ghani Ms. Zahra Aftab Dr. Amjad Aqeel Chairman Chief Executive Officer AUDIT COMMITTEE HR & R COMMITTEE Dr. Amjad Aqeel Mrs. Ayesha Aftab Mr. Jubair Ghani Mr. Anwaar Ahmad Khan Mrs. Ayesha Aftab Mr. Obaid Ghani Chairman Member Member Chairman Member Member COMPANY SECRETARY CHIEF FINANCIAL OFFICER AUDITORS LEGAL ADVISORS Hafiz Mohammad Imran Sabir Mr. Umer Farooq Khan Hassan Farooq & Company Chartered Accountants Ally Law Associates SHARE REGISTRAR BANKERS Corplink (Pvt) Ltd. Wings Arcade, 1-K Commercial Model Town Lahore, Pakistan Phones : (042) , Fax : (042) Albaraka Islamic Bank Allied Bank of Pakistan Limited Habib Bank Limited Meezan Bank Limited, Islamic Banking Soneri Bank Limited, Islamic Banking Burj Bank Limited Habib Metropolitan Bank Limited Bank Alfalah Limited UBL Ameen Islamic Banking HEAD OFFICE & REGISTERED OFFICE MARKETING OFFICE 40-L Model Town Lahore, Pakistan UAN : (042) Fax : (042) i nfo@ghaniautomobiles.com http: / 12 D/3, Chandni Chowk KDA Scheme No. 7-8 Karachi UAN : (021) , Fax : (021) info@ghaniautomobiles.com AUTOMOBILE PLANT 49-KM, Multan Road, (from Lahore) 01

3 Directors Report Dear Shareholders, Assala-mo-Alaikum wa Rahmatullah wa Barakatohu. The board of Directors of Ghani Automobile Industries Limited is pleased to present financial statements of the company for the half year ended December 31, along with review report of auditors thereon. FINANCIAL INDICATORS December 31, December 31, 2013 Rupees 000 Sales Net Gross profit / (loss) Profit / (loss) before taxation Net profit / (loss) Earning / (loss) per share 87,535 (4,983) 13,551 12, ,047 1,570 (2,368) (2,568) (0.13) During the half year ended December 31,, the Net Sale of the Company has increased to Rupees 87 million as compared to Rupees 57 million for the corresponding period of last year. Gross Loss was Rupees 4.9 million as compared to Gross Profit of Rupees 1.6 million for the corresponding period of the last year. The Company has earned Net Profit of Rupees 12.7 million as compared to Net Loss of Rupees 2.5 million for the correspondence period of last year. On behalf of the Directors, we are pleased to record our appreciation for our customers, employees, suppliers, shareholders and financial institutions for their trust in the management of the company. We thank Allah Subhanatallah for blessing all of us and your company. We all should continue our endeavors to fully obey the commandments of Almighty Allah and Sunnah of our Prophet Muhammad (Sallallaho-Alaihe-Wasallum). On behalf of the Board of Directors Lahore: February 23, 2015 Aftab Ahmed Khan Chief Executive Officer 02

4 Review Report To The Members Introduction We have reviewed the accompanying condensed interim balance sheet of Ghani Automobiles Industries Limited as at 31 December, and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, condensed interim cash flow statement and notes to the condensed interim financial information for the six-month 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 interim financial information based on our review. Scope of Review We conducted our review in accordance with the International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and operating 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 reasonable 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 quarters ended, and, 2013 in the condensed interim profit and loss account and condensed interim statement of comprehensive income have not been reviewed by us and we do not express a conclusion on them. HASSAN FAROOQ AND COMPANY Chartered Accountants Farooq Hamid Lahore: February 13,

5 Condensed Interim Balance Sheet (Un-audited) AS AT DECEMBER 31, ASSETS NON CURRENT ASSETS EQUITY & LIABILITIES SHARE CAPITAL AND RESERVES Un-Audited Audited 30 June NOTE Rupees Rupees Property, plant and equipment 5 37,077,755 38,254,831 Security deposits 667, ,386 Deferred cost 6 177,930,997 24,342, ,676,138 63,264,835 CURRENT ASSETS Stores, spares and loose tools 650, ,012 Stock in trade 7 98,663,201 87,521,496 Trade debtors - unsecured but considered good 184,070, ,782,798 Advances and other receivables 8 79,932,312 63,893,621 Cash and bank balances 9,441,182 10,046, ,757, ,909,816 Total assets 588,433, ,174,651 Authorized Share Capital 50,000,000 (June : 50,000,000) ordinary shares of Rs.10/- each Issued, subscribed and paid up capital 3 Accumulated (loss) CURRENT LIABILITIES Short term financing Interest / mark up payable Loan from sponsors Creditors, accrued and other liabilities Provision for taxation Contingencies and commitments 4 Total equity and Liabilities 500,000, ,000, ,000, ,000,000 (128,659,857) (141,437,661) 371,340,143 58,562,339 9,993,400 93,853, ,837 2,672, ,680, ,205,000 84,539,583 96,636,918 4,361,740 1,243, ,093, ,612, ,433, ,174,651 The annexed notes 1 to 13 form an integral part of these condensed interim financial statements. CHIEF EXECUTIVE OFFICER DIRECTOR 04

6 Condensed Interim Profit & Loss Account (Un-audited) FOR THE QUARTER AND HALF YEAR ENDED DECEMBER 31, Note Quarter ended Six months period ended Rupees Rupees Rupees Rupees Sales 40,381,324 24,047,835 87,534,528 57,046,588 Cost of sales 9 (47,976,732) (25,328,933) (92,517,172) (55,476,901) Gross (loss) / profit (7,595,408) (1,281,098) (4,982,644) 1,569,687 Operating expenses Administrative expenses (820,040) (661,553) (2,708,625) (2,330,488) Distribution and marketing expenses (3,056,811) (2,211,194) (6,273,046) (5,184,095) (3,876,851) (2,872,747) (8,981,671) (7,514,583) Operating (loss) (11,472,259) (4,153,845) (13,964,315) (5,944,896) Other income 10 28,537,412 5,003,000 35,208,562 8,132,000 Profit before interest and tax 17,065, ,155 21,244,247 2,187,104 Financial charges (768,088) (1,894,114) (7,693,082) (4,554,699) Profit / (loss) before taxation 16,297,065 (1,044,959) 13,551,165 (2,367,595) Taxation Current (5,322,959) (570,466) (4,361,740) (570,466) Deferred 3,588, ,168 3,588, ,168 (1,734,580) (200,298) (773,360) (200,298) Profit / (loss) after taxation 14,562,485 (1,245,257) 12,777,804 (2,567,893) Earning / (loss) per share - Basic and Diluted 0.73 (0.06) 0.64 (0.13) The annexed notes 1 to 13 form an integral part of these condensed interim financial statements. CHIEF EXECUTIVE OFFICER DIRECTOR 05

7 Condensed Interim Comprehensive Income (Un-audited) FOR THE QUARTER AND HALF YEAR ENDED DECEMBER 31, Quarter ended Six months period ended Rupees Rupees Rupees Rupees Profit / (loss) for the period 14,562,485 (1,245,257) 12,777,804 (2,567,893) Other comprehensive income Total comprehensive profit / (loss) for the period 14,562,485 (1,245,257) 12,777,804 (2,567,893) The annexed notes 1 to 13 form an integral part of these condensed interim financial statements. CHIEF EXECUTIVE OFFICER DIRECTOR 06

8 Condensed Interim Cash Flow Statement (Un-audited) FOR THE HALF YEAR ENDED DECEMBER 31, Un audited Six months period ended 2013 Rupees Rupees Profit / (loss) before tax 13,551,165 (2,367,595) Adjustment for : Depreciation 1,177,076 1,315,853 Financial charges 7,693,082 4,554,699 8,870,158 5,870,552 Operating profit before working capital changes 22,421,323 3,502,957 (Increase) / decrease in current assets Store, spares and loose tools 14,637 25,468 Stock in trade (11,141,705) 3,183,166 Trade debtors 13,712,303 (1,633,317) Advances and other receivables (17,995,426) 18,470,103 (15,410,191) 20,045,420 (Decrease) in creditors, accrued and other liabilities (12,097,335) (16,866,570) (5,086,203) 6,681,807 Financial charges paid (9,847,095) (4,554,699) Taxes (paid) / refunded 712,965 (2,739,468) NET CASH FLOWS FROM OPERATING ACTIVITIE S (14,220,333) (612,360) Short term financing - net (83,860,374) 1,048,529 Loan from sponsors (52,525,000) 4,000,000 Proceeds from issue of right shares 150,000,000 - NET CASH FLOWS FROM FINANCING ACTIVITIES 13,614,626 5,048,529 NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (605,707) 4,436,169 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIO D 10,046,889 4,802,316 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIO D 9,441,182 9,238,485 The annexed notes 1 to 13 form an integral part of these condensed interim financial statements. CHIEF EXECUTIVE OFFICER DIRECTOR 07

9 Statement of Changes in Equity (Un-audited) FOR THE HALF YEAR ENDED DECEMBER 31, Balance as on July 01, ,000,000 (137,393,865) 62,606,135 Total comprehensive (loss) for the period (loss) for the period - (2,567,893) (2,567,893) Other comprehensive income (2,567,893) (2,567,893) Balance as on December 31, ,000,000 (139,961,758) 60,038,242 Balance as on July 01, 200,000,000 (141,437,661) 58,562,339 Issue of share capital 300,000, ,000,000 Total comprehensive profit for the period Share Capital Accumulated (loss) Profit for the period - 12,777,804 12,777,804 Other comprehensive income ,777,804 12,777,804 Balance as on December 31, 500,000,000 (128,659,857) 371,340,143 Total R u p e e s The annexed notes 1 to 13 form an integral part of these condensed interim financial statements CHIEF EXECUTIVE OFFICER DIRECTOR 08

10 Notes to the Condensed Interim (Un-audited) Financial Statements FOR THE HALF YEAR ENDED DECEMBER 31, 1 COMPANY AND ITS OPERATIONS The Power of Perfection Ghani Automobile Industries Limited is a public listed company incorporated in Pakistan under the Companies Ordinance, 1984 in September The registered office of the Company is located at 40 -L Model Town, Lahore. The shares of the Company are quoted on Stock Exchanges in Pakistan. The name of the Company has been changed from Ghani Textile Limited to Ghani Automobile Industries Limited with effect from March 31, The principal activity of Company has been changed during year 2004 from manufacture and trade of grey cloth to manufacture, assemble and trade of Automotive Vehicles of all kinds and sorts. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of Preparation of Financial Statements This condensed interim financial report has been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34 ''Interim Financial Reporting'' and provisions of and directives issued under the Companies Ordinance, 1984 (the Ordinance). In case the requirements differ, the provisions of or directives issued under the Ordinance have been followed. This condensed interim financial report is unaudited but subject to limited scope review by auditors and is being submitted to the shareholders as required under Section 245 of the Ordinance. 2.2 Accounting Conventions The accounting policies and method of computation adopted for the preparation of these interim financial statements are the same as applied in the preparation of the preceding annual published financial statements of the Company for the year ended June 30,. 3 ISSUED, SUBSCRIBED AND PAID UP CAPITAL Un audited Audited December 31, June 30, December 31, June 30, Number Note Rupees Rupees 19,250, , ,000 30,000,000 50,000,000 19,250,000 Ordinary shares of Rs. 10 each fully paid in cash 192,500, ,500, ,000 Ordinary shares of Rs. 10 each fully paid other than cash 2,500,000 2,500, ,000 Ordinary shares of Rs. 10 each fully paid bonus shares 5,000,000 5,000,000 - Ordinary shares of Rs. 10 each fully paid in cash at discount ,000,000 20,000, ,000, ,000, During the period Company has issued thirty million ordinary shares at discount of 50%. The Company has also complied with the requirements of Companies ordinance 1984 with respect to issuance of shares at discount. 4 CONTINGENCIES AND COMMITMENTS Contingencies Commitments There is no change in contingent liabilities since the date of published audited financial statements for the year ended June 30, except the contingent liability related to bank guarantee issued in favour of SNGPL amounting to Rs. 1,200,000/- which is expired during the period. Commitments as at December 31, was Nil (June 30, : Rs. 6,069,990/-). 09

11 5 PROPERTY, PLANT AND EQUIPMENT Un audited Audited December 31, June 30, Note Rupees Rupees Operating fixed assets 37,077,755 38,254,831 6 DEFERRED COST Deferred tax 27,930,997 24,342,618 Discount on issue of right shares ,000, ,930,997 24,342, The Company has issued thirty million shares of Rs. 10 each at fifty percent discount. This discount will be amortized over the period of five years except for the first year as projected in financial statements for the year Amortization for the will be charged on annual basis. 7 STOCK IN TRADE Un audited Audited December 31, June 30, Rupees Rupees Raw material 68,224,778 62,324,190 Work in process 8,012,548 11,675,384 Finished goods 22,425,875 13,521,922 98,663,201 87,521,496 8 ADVANCES AND OTHER RECEIVABLES Unsecured, considered good Advances To employees 1,220,120 1,544,220 To suppliers 51,496,173 42,543,733 Income tax 9,683,405 11,640,140 Letter of credit 8,516,781 3,085,293 Sales tax refundable 9,015,833 5,080,235 79,932,312 63,893,621 9 COST OF SALES Quarter ended December 31, Half year ended December 31, Rupees Rupees Rupees Rupees Raw material consumed 39,998,889 3,345,044 89,703,954 31,950,619 Salaries, wages and benefits 2,418, ,638 4,773,249 4,070,401 Store consumed 144, , , ,635 Fuel and power 807, ,771 1,218,208 1,173,026 Repair and maintenance 13,280 16,520 40, ,980 Travelling and vehicle running 49,595 39,210 80,170 80,190 Entertainment 69, ,263 90, ,877 Communications and stationery 97,678 54, ,299 88,479 Freight and handling 18,080 37,603 28,570 57,373 Depreciation 590, ,735 1,163,502 1,277,469 Other expenses 30,395 94, , ,922 44,239,400 6,678,739 97,758,289 40,058,971 Work in process Opening 12,045,818 5,282,550 11,675,384 8,634,954 Closing (8,012,548) (14,051,305) (8,012,548) (14,051,305) 4,033,270 (8,768,755) 3,662,836 (5,416,351) Finished Goods Opening 22,129,937 45,324,125 13,521,922 38,739,457 Closing (22,425,875) (17,905,176) (22,425,875) (17,905,176) (295,938) 27,418,949 (8,903,953) 20,834,281 47,976,732 25,328,933 92,517,172 55,476,901 10

12 10 OTHER INCOME Quarter ended December 31, Half year ended December 31, Note Rupees Rupees Rupees Rupees Reimbursement of expenses 5,747,622 5,003,000 12,418,772 8,132,000 Profit on bank accounts 1,093,031-1,093,031 - Profit recovered from related party on early disposal of shares ,171,997-19,171,997 - Waiver of mark up on early payments 2,524,762-2,524,762-28,537,412 5,003,000 35,208,562 8,132, During the period beneficial owners of more than 10% holding have sold their shares for less than a period of six months. Gain on disposal of these shares was surrendered to the Company to comply with the requirements of sub section 1 of section 224 of the Companies Ordinance TRANSACTIONS WITH RELATED PARTIES The related parties comprised of associated undertakings, directors and key personnel. The directors of the related companies are close members of the family of the directors of the company. The company in the normal course of business carries out transactions with the related parties. Transactions with related parties during the period are as follows: Name of Related Party Nature of Transaction Ghani Glass Ltd. Sale of Motorcycles 43, ,434 Organisational expenses - 20,000 Directors Anwaar Ahmad Khan Aftab Ahmad Khan Spouse of director Obaid Ghani Junaid Ghani 12 CORRESPONDING FIGURES (December 31, Nill) June 30, million shares of Ghani glass limited are pledged against morabaha facility availed from Soneri Bank Limited by the Company ,000,000 43, ,943,434 In order to comply with the requirement of International Accounting Standard 34 -'Interim Financial Reporting' the condensed interim balance sheet and condensed interim statement of changes in equity have been compared with the balances of annual audited financial statements of preceding financial year, whereas, the condensed interim profit and loss account, condensed interim statement of comprehensive income and condensed interim cash flow statement have been compared with the balances of comparable period of preceding financial year. 13 AUTHORIZATION TO ISSUE This condensed interim financial information was authorized for issue in the Board of Directors meeting held on February 23, CHIEF EXECUTIVE OFFICER DIRECTOR 11

13 Head Office: 40-L, Model Town, Lahore, Pakistan UAN: Fax: