BIBOJEE GROUP. Quarterly Accounts March 31, 2016 (Un-audited) GAMMON PAKISTAN LIMITED

Transcription

1 BIBOJEE GROUP Quarterly Accounts March 31, 2016 (Un-audited) GAMMON PAKISTAN LIMITED

2 Independent Muhammad Salah uddin - FCA Muhammad Salah uddin - FCA Shares are traded on Pakistan Stock Exchange

3 DIRECTOR S REPORT On behalf of the Board of Directors, I am pleased to place before the Board, the (Un-audited) financial results for the Nine months ended March 31, OPERATING PERFORMANCE The Company s financial performance during nine months (Un-audited) is given below;- March 31, March (Rupees) (Rupees) Contract Income 338,510, ,370,614 Contract Expenditure 319,585, ,871,062 Operating Profit 18,924,981 15,499,552 Profit before taxation 12,496,694 7,744,662 Taxation (4,940,548 ) (3,743,676 ) Profit after taxation 7,556, ,986 The revenue for the nine months has increased by Rs million as compared to same period last year. Increase in revenue is due to work on mixing plant building project at Karachi. The project has contributed revenue of Rs million during the period under review. The work at Housing Directorate Project at DHA Islamabad is in full swing and revenue booked during the nine months under review is Rs million. The finishing works on block 4 & 5 have almost been completed. Dhalkot Bridge Project is in the completion phase and it is hoped that the project will be handed over to the department by April The revenue amounting to Rs million has been contributed by the project during the nine months ended March 31, After the successful settlement of technical disputes with the department of Maritimes Technology, we are awaiting the letter for recommencement of work. The balance work at MES Rawalakot project has been restarted and we are very hopeful to complete the remaining work in the current financial year. By completing this building, the performance bond valuing Rs will be released. FUTURE PROSPECTS The award of new bridge by Housing Directorate has been delayed due to change in design. The joint venture with Jaffer Brothers for Lahore Airport extension project is still being pursued for prequalification which was delayed due to appointment of consultant by the Civil 2

4 Aviation Authority. Similarly another project which is also a joint venture of Gammon JBL Thelis package of 4A Airport Master system Integration (AMSI) of new Islamabad International Airport shall come up for bidding in near future. We have also signed a MOU with Diqing oil field Construction Company Ltd. for a pipe line project. The Company is exploring to get into the hydro power project and it is expected to arrive at the understanding with a Chinese company which has completed six hydro projects successfully in Pakistan and AJK. 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 cooperation, support and trust reposed in the Company. For and on behalf of Board of Director s Muhammad Salahuddin-FCA Chief Executive Officer 3

5 GAMMON PAKISTAN LIMITED CONDENSED INTERIM BALANCE SHEET (UN-AUDITED) AS AT MARCH 31, 2016 Un-audited Audited March, 31 June, 30 Note Rupees Rupees ASSETS NON CURRENT ASSETS Property, plant and equipment Operating fixed assets 98,505,687 99,654,042 Investment property 223,463, ,463,403 Long term investments 1,172,893 1,119,023 Long term security deposits 3,623,394 3,623, ,765, ,859,862 CURRENT ASSETS Stores, spares and loose tools 53,200,580 49,682,029 Contract receivables 126,405, ,811,644 Cost and estimated earnings in excess of billings 45,621,627 53,819,433 Loans and advances 14,713,397 12,089,609 Other receivables 2,479, ,000 Short term prepayments - 275,862 Tax refunds due from Government 58,738,297 43,845,786 Taxation - net 13,642,210 14,892,511 Cash and bank balances 32,363,678 17,516, ,165, ,196,304 TOTAL ASSETS 673,930, ,056,166 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 (85,357,339) (93,885,442) 212,685, ,157,198 SURPLUS ON REVALUATION OF PROPERTY, PLANT AND EQUIPMENT 224,752, ,724,311 NON-CURRENT LIABILITIES Deferred liability 8,984,905 7,572,987 Deferred taxation 9,764,085 10,221,475 18,748,990 17,794,462 CURRENT LIABILITIES Trade and other payables ,684, ,855,613 Joint venture partner's advances 30,059,542 30,059,542 Material received from customers/secured advances - 17,465, ,743, ,380,195 CONTINGENCIES AND COMMITMENTS TOTAL EQUITY AND LIABILITIES 673,930, ,056,166 The annexed notes form an integral part of these condensed interim financial information. 4

6 GAMMON PAKISTAN LIMITED CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED) FOR THE PERIOD ENDED MARCH 31, 2016 Note Nine months ended Quarter ended March 31, March 31, Rupees Contract income from: Own projects 338,510, ,370, ,003,468 94,692,599 Contract expenditure from: Own projects 319,585, ,871, ,302,150 89,572,328 Net contract profit/(loss) 18,924,981 15,499,552 11,701,318 5,120,271 Operating expenses Depreciation (1,040,326) (965,298) (350,580) (323,672) Administrative expenses (17,828,675) (15,582,312) (7,306,412) (5,715,018) Operating (loss)/profit 55,980 (1,048,058) 4,044,326 (918,419) Other operating expenses - (305,731) - Other income 12,959,806 9,748,229 4,233,736 2,568,533 Finance cost (555,092) (682,528) (10,012) (73,847) Allocation of loss to joint venture partners 36,000 32,750 12,000 8,000 Profit/(loss) before taxation 12,496,694 7,744,662 8,280,050 1,584,267 Taxation: Current (5,397,938) (4,431,099) (1,926,448) (1,141,814) Deferred 457, , , ,871 (4,940,548) (3,743,676) (1,773,985) (861,943) Profit/(loss) after taxation 7,556,146 4,000,986 6,506, ,324 Other Comprehensive income Total 7,556,146 4,000,986 6,506, ,324 Earning / (loss) per share - -basic and diluted The annexed notes form an integral part of these condensed interim financial information. 5

7 GAMMON PAKISTAN LIMITED CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED) FOR THE NINE MONTHS ENDED MARCH 31, 2016 Nine months ended March 31, Rupees Rupees Profit / (loss) before taxation 12,496,694 7,744,662 CASH FLOWS FROM OPERATING ACTIVITIES Adjustment for non cash charges and other items : Depreciation 2,105,458 2,023,627 Loss on disposal of fixed assets 0 270,146 Staff retirement benefits - gratuity (net) 1,411, ,283 Allocation of loss to joint ventures (36,000) (32,750) Profit on investments (53,870) (298,895) Finance cost 555, ,528 3,982,598 3,004,939 Profit / (Loss) before working capital changes 16,479,292 10,749,601 Effect on cash flow due to working capital changes: Stock of materials, stores and spares (3,518,551) (14,623,665) Contract receivables 13,405,809 (21,952,206) Cost and estimated earnings in excess of billings 8,197,806 (7,721,449) Loans and advances (2,623,788) (1,684,768) Long term security deposits - 2,875,591 Other receivables (2,216,409) (813,000) Prepayments 275,862 3,683,089 Net Change in Current Assets 13,520,729 (40,236,408) Increase / (decrease) in current liabilities Material received from customers / secured advances (17,465,040) 16,565,246 Billing in excess of cost and estimated earnings - 150,542 Trade and other payables 22,864,607 18,787,054 Net Change in Current Liabilities 5,399,567 35,502,842 Net cash inflow /(outflow)from operating activities: 35,399,588 6,016,035 Income tax paid (19,040,148) (17,488,858) Net cash inflow/(outflow) after tax from operating activities 16,359,440 (11,472,823) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed assets (957,100) (264,500) Net cash inflow/(outflow) from investing activities (957,100) (264,500) CASH FLOWS FROM FINANCING ACTIVITIES Financial charges paid (555,092) (682,528) Net cash inflow/(outflow) from financing activities (555,092) (682,528) Net (decrease) / increase in cash and cash equivalents 14,847,248 (12,419,851) Cash and cash equivalents -At the beginning of the period 17,516,430 27,171,141 Cash and cash equivalents -At the end of the period 32,363,678 14,751,290 The annexed notes form an integral part of these condensed interim financial information. 6

8 GAMMON PAKISTAN LIMITED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) F OR THE PERIOD ENDED MARCH 31, 2016 Issued, subscribed and paid-up capital Share premium reserve Accumulated loss Total Note Rupees Balance as at July 01, 2014 as reported 282,662,310 15,380,330 (99,568,366) 198,474,274 Effect of prior period error - - (75,678) (75,678) Balance as at July 01, restated 282,662,310 15,380,330 (99,644,044) 198,398,596 Total comprehensive profit for nine months - - 4,000,986 4,000,986 Transfer from surplus on revaluation of Operating fixed assets incremental depreciation - - 1,267,826 1,267,826 Upon disposal of revalued operating fixed asset , ,851 Balance as at March 31, ,662,310 15,380,330 (94,247,381) 203,795,259 Balance as at July 01, 2015 as reported 282,662,310 15,380,330 (93,885,442) 204,157,198 Total comprehensive Profit for the nine months - - 7,556,146 7,556,146 Transfer from surplus on revaluation of Operating fixed assets incremental depreciation 971, ,957 Balance as at March 31, ,662,310 15,380,330 (85,357,339) 212,685,301 The annexed notes form an integral part of these condensed interim financial information.

9 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 2015 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, 2015: 22,627,320) ordinary shares of Rs.10 each fully paid in cash 226,273, ,273,200 2,562,845 3,076,066 GAMMON PAKISTAN LIMITED NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 31, 2016 (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, (30 June, 2015: 2,562,845) ordinary shares of Rs.10 each issued as fully paid bonus shares 25,628,450 25,628,450 (30 June, 2015: 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 8

10 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 1,500,000 1,125, , ,000 Payment received (1,250,000) (500,000) (675,000) (500,000) Gandhara Industries Limited Rental income 1,500,000 1,125, , ,000 Payment received (1,250,000) (750,000) (500,000) (625,000) Universal Insurance Co Rental income - 525,000-75,000 Payment received - (525,000) - (75,000) Babri Cotton Mills Limited Rental income 150, ,000 - Payment received (150,000) - (150,000) Bannu Woollen Mills Limited Rental income 300, ,000 - Payment received (300,000) - (300,000) - General Tyre & Rubber Company Ltd Contract income 220,691,480-86,256,713 - Payment received 210,770,247 - (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, 2016 has been made using the estimated effective tax rate applicable to expected total annual earnings. 9

11 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 49,702,300 43,721,570 Mobilization advance 28,277,579 - Advance payments 922,508 3,527,072 Due to sub-contractors 46,347,596 46,854,139 Accrued expenses 11,885,699 17,967,405 Due to customers - 1,337,962 Due to employees and others 10,207,784 10,646,885 Taxes payables 798, ,829 Unclaimed dividend 1,442,230 1,442,230 Joint venture partner's share of profit 2,977,879 3,758,021 Other provisions ,122,500 35,122, ,684, ,855, 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 28th 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 10

12 Address BY BOOK POST Under postal certificate If undelivered please return to, Gammon Pakistan Ltd. GAMMON HOUSE 400/2, Peshawar Road, Rawalpindi.