BIBOJEE GROUP. Quarterly Accounts March 31, 2017 (Un-audited) GAMMON PAKISTAN LIMITED

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1 BIBOJEE GROUP Quarterly Accounts March 31, 2017 (Un-audited) GAMMON PAKISTAN LIMITED

2 Fazal-ur-Rehman Barki Independent Director Mohammad Salah-ud-din-FCA Fazal-ur-Rehman Barki Mohammad Salah-ud-din-FCA Nasir Ali Khan on Pakistan Stock Exchange Limited

3 DIRECTOR S REPORT On behalf of the Board of Directors, I feel pleasure in presenting the un-audited, financial statements of the Company for the nine month ended 31 st March FINANCIAL HIGHLIGHTS The Company s financial performance during the nine months is as under;- March 31, 2017 (Rupees ) March 31, 2016 (Rupees ) Contract Income 308,932, ,510,146 Contract Expenditure 286,679, ,585,165 Operating profit 22,252,609 18,924,981 Profit before taxation 13,223,858 12,496,694 Taxation (4,430,538) (4,940,548) Profit after taxation 8,793,315 7,556,146 During the nine months ended March 31, 2017 revenue from contracts decreased by 29.5 million representing a decline of 8.7% as compared to the previous nine months ended March 31, The main reason behind this decrease in contracts revenue is the completion of GTR, Dhalkot Bridge, DHA Housing, DHA bridge projects and the work on CPEC Project/MTC Project has recently commenced. PROJECTS OVERVIEW The project of Housing Directorate at DHA Islamabad had major contribution of work done i-e Rs. 129 million during the period. The project is in final stages of formal handing over of the buildings of block 4,5 has successfully completed whereas handing over of Block No.8 is in progress and expected to be completed by the end of June, Mixing Plant building project at Karachi has also been successfully completed along with additional works/deviations according to the satisfaction of M/s General Tyre and Rubber Company Limited Karachi. The Project has contributed Rs million during the nine month ended March31, The work at MTC project has also gained momentum. After the completion of segmat-5 of TT in the last quarter, we have completed segment-6 & 1 during the quarter. The Project has contributed Rs Million during the nine months. After mobilization at CPEC (Package-3) Tarap - Kot Belian in short period of time the work at Swan Bridge is progressing well and the project has contributed Rs.31Million to the revenue of the Company during the period. 1

4 DIVERSIFICATION & FUTURE PROSPECTS Steps were taken by the Company for Diversification which inter-alia includes related areas to telecommunication and energy Projects. Your Company with it s limited means participated in the Tenders for Construction of Buildings, and infrastructure work etc with the Govt and/or Statutory Corporations and the move was successful as it made significant contribution to the bottom line and Profitability of your Company. It is expected that work on the multistory building of M/s Bibojee Services (Pvt) Ltd will commence in near future. Some more mega projects are also been negotiated and a positive outcome is expected which will enhance the order book and profitability of the Company. ACKNOWLEDGMENT We appreciate the hard work and dedication of the Company s Management, engineers and employees during the period under review. We would also like to express our gratitude to our bankers, clients and suppliers for their co-operation, support and trust reposed in the Company. For and on behalf of Board of Directors, Muhammad Salahuddin-FCA Chief Executive Officer 2

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7 GAMMON PAKISTAN LIMITED CONDENSED INTERIM BALANCE SHEET (UN-AUDITED) AS AT MARCH 31, 2017 Un-audited Audited March, 31 June, 30 Note Rupees Rupees ASSETS NON CURRENT ASSETS Property, plant and equipment Operating fixed assets 127,971, ,562,607 Investment property 240,780, ,780,368 Long term investments 1,300,412 1,231,263 Long term security deposits 3,679,664 3,468, ,731, ,043,232 CURRENT ASSETS Stores, spares and loose tools 46,640,515 38,507,903 Contract receivables 159,127, ,527,023 Cost and estimated earnings in excess of billings 56,917,529 52,205,636 Loans and advances 7,774,901 11,294,720 Other receivables 976, ,295 Short term prepayments - 80,282 Tax refunds due from Government 71,655,635 58,738,297 Taxation - net 7,338,683 12,917,338 Cash and bank balances 6,459,954 38,358, ,891, ,531,845 TOTAL ASSETS 730,622, ,575,077 EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Share capital 7 282,662, ,662,310 Share premium reserve 15,380,330 15,380,330 Accumulated loss (61,755,732) (72,074,684) 236,286, ,967,956 SURPLUS ON REVALUATION OF PROPERTY, PLANT AND EQUIPMENT 252,172, ,288,883 NON-CURRENT LIABILITIES Deferred liability 8,750,663 8,669,894 Deferred taxation 11,356,040 12,416,622 20,106,703 21,086,516 CURRENT LIABILITIES Trade and other payables ,454, ,026,726 Billings in excess of cost and estimated earnings - 1,145,454 Joint venture partner's advances 30,059,542 30,059,542 Material received from customers/secured advances 12,543, ,057, ,231,722 CONTINGENCIES AND COMMITMENTS TOTAL EQUITY AND LIABILITIES 730,622, ,575,077 The annexed notes form an integral part of these condensed interim financial information. 5

8 GAMMON PAKISTAN LIMITED CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED) FOR THE PERIOD ENDED MARCH 31, 2017 Nine months ended Quarter ended March 31, March 31, Rupees Contract income from: Own projects 308,932, ,510,146 81,882, ,003,468 Contract expenditure from: Own projects 286,679, ,585,165 72,452, ,302,150 Net contract profit/(loss) 22,252,609 18,924,981 9,429,983 11,701,318 Operating expenses Depreciation (1,098,665) (1,040,326) (376,198) (350,580) Administrative expenses (20,872,364) (17,828,675) (7,454,887) (7,306,412) Operating (loss)/profit 281,580 55,980 1,598,898 4,044,326 Other operating expenses Other income 13,010,605 12,959,806 4,393,775 4,233,736 Finance cost (68,332) (555,092) (26,755) (10,012) Allocation of loss to joint venture partners - 36,000-12,000 Profit/(loss) before taxation 13,223,853 12,496,694 5,965,918 8,280,050 Taxation: Current (6,005,081) (5,397,938) (1,795,707) (1,926,448) Prior 922, Deferred 651, , , ,463 (4,430,538) (4,940,548) (1,606,335) (1,773,985) Profit/(loss) after taxation 8,793,315 7,556,146 4,359,583 6,506,065 Other Comprehensive income Total 8,793,315 7,556,146 4,359,583 6,506,065 Earning / (loss) per share - -basic and diluted The annexed notes form an integral part of these condensed interim financial information. 6

9 GAMMON PAKISTAN LIMITED CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED) FOR THE NINE MONTHS ENDED MARCH 31, 2017 Nine months ended March 31, Rupees Rupees Profit / (loss) before taxation 13,223,853 12,496,694 CASH FLOWS FROM OPERATING ACTIVITIES Adjustment for non cash charges and other items : Depreciation 2,252,616 2,105,458 Loss on disposal of fixed assets 14,000 0 Staff retirement benefits - gratuity (net) 80,769 1,411,918 Allocation of loss to joint ventures - (36,000) Profit on investments (69,149) (53,870) Finance cost 68, ,092 2,346,568 3,982,598 Profit / (Loss) before working capital changes 15,570,421 16,479,292 Effect on cash flow due to working capital changes: Stock of materials, stores and spares (8,132,612) (3,518,551) Contract receivables (35,600,443) 13,405,809 Cost and estimated earnings in excess of billings (4,711,893) 8,197,806 Loans and advances 3,519,819 (2,623,788) Long term security deposits (210,670) - Long term investments (69,149) - Short term prepayments 80, ,862 Other receivables (74,375) (2,216,409) Net Change in Current Assets (45,199,041) 13,520,729 Increase / (decrease) in current liabilities Material received from customers / secured advances 12,543,288 (17,465,040) Billing in excess of cost and estimated earnings (1,145,454) Trade and other payables (572,454) 22,864,607 Net Change in Current Liabilities 10,825,380 5,399,567 Net cash inflow /(outflow)from operating activities: (18,803,240) 35,399,588 Income tax paid (12,351,718) (19,040,148) Net cash inflow/(outflow) after tax from operating activities (31,154,958) 16,359,440 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed assets (755,107) (957,100) Proceeds from sale of fixed assets 80,000 - Net cash inflow/(outflow) from investing activities (675,107) (957,100) CASH FLOWS FROM FINANCING ACTIVITIES Financial charges paid (68,332) (555,092) Net cash inflow/(outflow) from financing activities (68,332) (555,092) Net (decrease) / increase in cash and cash equivalents (31,898,397) 14,847,248 Cash and cash equivalents -At the beginning of the period 38,358,351 17,516,430 Cash and cash equivalents -At the end of the period 6,459,954 32,363,678 The annexed notes form an integral part of these condensed interim financial information. 7

10 GAMMON PAKISTAN LIMITED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) FOR THE PERIOD ENDED MARCH 31, 2017 Issued, subscribed and paid-up capital Share premium reserve Accumulated loss Total Note Rupees Balance as at July 01, ,662,310 15,380,330 (93,885,442) 204,157,198 Total comprehensive loss for the nine months - - 7,556,146 7,556,146 Transfer from surplus on revaluation of Operating fixed assets incremental depreciation 971, ,957 Upon disposal of revalued operating fixed asset Balance as at March 31, ,662,310 15,380,330 (85,357,339) 212,685,301 Balance as at July 01, ,662,310 15,380,330 (72,074,684) 225,967,956 Total comprehensive loss for the nine months - - 8,793,315 8,793,315 Transfer from surplus on revaluation of Operating fixed assets incremental depreciation 1,473,749 1,473,749 Upon disposal of revalued operating fixed asset ,888 51,888 Balance as at March 31, ,662,310 15,380,330 (61,755,732) 236,286,908 The annexed notes form an integral part of these condensed interim financial information. 8

11 GAMMON PAKISTAN LIMITED NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 31, 2017(UN-AUDITED) Gammon Pakistan Limited (the Company) was incorporated under the Companies Act,1913 (now the Companies Ordinance, 1984) on 12 August, 1947 as a Private Company limited by shares and was converted into Public Company quoted on the Stock Exchanges in Pakistan in It is principally engaged in execution of civil construction works. The registered office of the Company is situated at Gammon House, 400/2 Peshawar Road, Rawalpindi. The Company is Subsidiary of the Bibojee Services(Pvt)Limited. These financial statements have been prepared in accordance with the requirements of international Accounting Standard 34 (Interim Financial Reporting) and are being submitted to the shareholders as required by section 245 of the Companies Ordinance, 1984 and the Listing Regulations of the Stock Exchange of Pakistan These financial statements do not include all the information required for full financial statements and should be read in conjunction with the annual financial statements of the company for the year ended 30 June, The accounting policies and methods of computation, which have been used in the preparation of these financial statements are the same as those applied in the preparation of the financial statements as at and for the year ended 30 June, The significant judgment, estimates and assumptions used by the management in preparation of these financial statements are the same as those applied to the annual financial statements as at and for the year ended 30 June, The comparative balance sheet for the year ended 30 June 2016 is presented in this condensed interim financial statements, whereas the comparative condensed interim profit and loss accounts, condensed interim statement of cash flow and condensed interim statement of changes in equity are extracted from the unaudited interim financial statements for the nine months ended March 31, Un-audited Audited 7. ISSUED, SUBSCRIBED AND PAID-UP CAPITAL 31 Mar, 30 June, Rupees Rupees 22,627,320 (30 June, 2016: 22,627,320) ordinary shares of Rs.10 each fully paid in cash 226,273, ,273,200 2,562,845 3,076,066 (30 June, 2016: 2,562,845) ordinary shares of Rs.10 each issued as fully paid bonus shares 25,628,450 25,628,450 (30 June, 2016: 3,076,066) ordinary shares of Rs.10 each issued by conversion of the directors' loans 30,760,660 30,760,660 28,266, ,662, ,662,310 9

12 8. TRANSACTIONS WITH RELATED PARTIES The related parties and associated undertakings of the Company comprise of group companies, other associate companies. Transactions with related parties and associated undertakings during the period are as follows : Relation with the Company Nature of transaction Associated Company Nine Months Ended Quarter Ended March 31, March 31, Rupees Rupees Rupees Rupees Gandhara Nissan Limited Rental income 2,250,000 1,500, , ,000 Payment received 2,250,000 (1,250,000) (750,000) (675,000) Gandhara Industries Limited Rental income 2,250,000 1,500, , ,000 Payment received 2,250,000 (1,250,000) (750,000) (500,000) Babri Cotton Mills Limited Rental income 100, , , ,000 Payment received (150,000) (150,000) (150,000) (150,000) Bannu Woollen Mills Limited Rental income 980, , , ,000 Payment received (1,350,000) (300,000) (600,000) (300,000) Janana De Malucho Textile Rental income 150, Payment received (150,000) Rehman Cotton Mills Limited Rental income 150,000-50,000 - Payment received (150,000) General Tyre & Rubber Company Ltd Contract income 22,210, ,691,480 4,520,216 86,256,713 Payment received 30,262, ,770,247 9,571,086 89,803,090 Mobilization advance received - (72,317,233) - - Mobilization advance adjusted - 44,039,654-17,704, TAXATION The provision for taxation for the nine month and quarter ended March 31, 2017 has been made using the estimated effective tax rate applicable to expected total annual earnings. 10

13 10. CONTINGENCIES AND COMMITMENTS There has been no significant change in the status of contingencies and commitments since the date of preceding published financial statements of the Company for the year ended 30 June, TRADE AND OTHER PAYABLES Un-audited Audited 31 Mar., 30 June, Rupees Rupees Sundry creditors 63,260,062 70,102,429 Advance payments 1,227,850 3,865,224 Due to sub-contractors 49,030,519 43,909,086 Accrued expenses 16,228,405 11,209,072 Due to employees and others 9,545,884 9,917,029 Taxes payables 618, ,942 Sales tax payable - 1,179,335 Unclaimed dividend 1,442,230 1,442,230 Joint venture partner's share of profit 2,977,879 2,977,879 Other provisions ,122,500 35,122, ,454, ,026, DATE OF AUTHORISATION FOR ISSUE These financial statements were authorised for issue by the Board of Directors of the Company in its Meeting held on 25th April, GENERAL These represent provisions made for the potential liability,in respect of borrowings of Saudi Riyals million and Saudi Riyals million during the year 1986 for the Saudi Operations of the Company, that the Company may have to incur as a result of settlement of overseas dues of National Bank of Pakistan in accordance with the incentive Scheme under the State Bank of Pakistan's Circular No.19 of 05 June,1997. Figures in the financial statements have been rounded-off to the nearest Rupee except when stated otherwise. Corresponding figures have been re-arranged or re-classified wherever necessary in these financial statements. CHIEF EXECUTIVE DIRECTOR 11

14 Address BY BOOK POST Under postal certificate If undelivered please return to,

BIBOJEE GROUP. Quarterly Account September 30, 2016 (Un-audited) GAMMON PAKISTAN LIMITED

BIBOJEE GROUP. Quarterly Account September 30, 2016 (Un-audited) GAMMON PAKISTAN LIMITED BIBOJEE GROUP Quarterly Account September 30, 2016 (Un-audited) GAMMON PAKISTAN LIMITED Fazal-ur-Rehman Barki Independent Director Mohammad Salah-ud-din-FCA Fazal-ur-Rehman Barki Mohammad Salah-ud-din-FCA