The Power of Perfection. First Quarter Financial Statements Ghani Automobile Industries Limited

Transcription

1 The Power of Perfection First Quarter Financial Statements Ghani Automobile Industries Limited

2 Corporate Information BOARD OF DIRECTORS AUDIT COMMITTEE HR & R COMMITTEE 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 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 Chairman Chief Executive Officer COMPANY SECRETARY CHIEF FINANCIAL OFFICER AUDITORS LEGAL ADVISORS SHARE REGISTRAR BANKERS HEAD OFFICE & REGISTERED OFFICE AUTOMOBILE PLANT Hafiz Mohammad Imran Sabir Mr. Umer Farooq Khan Hassan Farooq & Company Chartered Accountants Ally Law Associates Corplink (Pvt) Ltd. Wings Arcade, 1-K Commercial Model Town Lahore, Pakistan Phones : (042) , Fax : (042) Albaraka Islamic Bank Allied Bank of Pakistan Limited Soneri Bank Limited, Islamic Banking Habib Metropolitan Bank Limited 40-L Model Town Lahore, Pakistan UAN : (042) Fax : (042) i nfo@ghaniautomobiles.com http: / 49-KM, Multan Road, (from Lahore) Ghani Automobile Industries Limited 01

3 Directors Report Dear Shareholders, Assalam-o-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 First quarter ended September 30, The results for the First quarter ended September 30, 2015 are as follow: FINANCIAL INDICATORS Sales Net Gross profit / (loss) Net profit / (loss) Earning / (loss) per share September 31, 2015 September 31, ,241 (18,797) (21,448) (0.43) 47,153 2,613 (2,746) (0.05) During the first quarter ended September 30, 2015, the net sale of the Company was recorded as 24 million as compared to 47 million for the corresponding period of last year. Gross Loss was 18.8 million as compared to Gross Profit of 2.6 million for the corresponding period of the last year. Net Loss was 21.4 million as compared to 2.7 million for the corresponding period of the last year. Loss per shares was 0.43 as compared to 0.05 for the same period of the last year. The results of the Company have been impacted by low sales and the imposition of additional custom duty. On behalf of the Directors, we are pleased to record our appreciation for our customers, employees, suppliers, shareholders and Financial in situation 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: October 30, 2015 Aftab Ahmed Khan Chief Executive Officer 02 Ghani Automobile Industries Limited

4 Condensed Interim Balance Sheet For the Quarter Ended September 30, 2015 (Un-Audited) JUNE EQUITY & LIABILITIES Share capital and reserves Authorized Share Capital 50,000,000 (Jun 2014: 20,000,000) ordinary shares of Rs.10 each 500,000, ,000,000 Issued, subscribed and paid up capital 500,000, ,000,000 Accumulated Losses (159,117,270) (132,669,277) 340,882, ,330,723 Current liabilities Short term Bank Financing - 5,690,207 Interest / Mark up Payable - 118,199 Loan from sponsors 115,880, ,880,000 Creditors, accrued and other liabilities 94,650,387 94,893,274 Provision for taxation - 1,804, ,530, ,385,942 ASSETS 551,413, ,716,665 Non-current assets Property, Plant and Equipment 45,301,153 35,961,902 Security Deposits 907, ,386 Discount on Issue of Shares 145,000, ,000,000 Deferred tax 24,301,958 24,301,958 Current Assets Stores, Spares and Loose Tools 665, ,064 Stock In Trade 82,076, ,107,226 Trade Debts - Unsecured butt Considered Good 184,421, ,391,374 Advances and Other Receivables 68,309,242 73,337,191 Cash and Bank Balances 429,675 4,049, ,902, ,545, ,413, ,716,665 CHIEF EXECUTIVE OFFICER DIRECTOR Ghani Automobile Industries Limited 03

5 Condensed Interim Profit & Loss Account For the Quarter Ended September 30, 2015 (Un-Audited) July To September Sales-Net 24,241,107 47,153,204 Cost of sales 43,037,649 44,540,440 Gross (loss) / profit (18,796,542) 2,612,764 Administrative expenses 2,281,059 1,888,585 Distribution and marketing expenses 2,469,834 3,216,235 4,750,893 5,104,820 (23,547,436) (2,492,056) Other Income 2,366,916 6,671,150 Operating profit before finance costs (21,180,520) 4,179,094 Finance Charges 267,473 6,924,995 Profit after taxation (21,447,993) (2,745,901) Earning Per Share - Basic (0.43) (0.05) CHIEF EXECUTIVE OFFICER DIRECTOR 04 Ghani Automobile Industries Limited

6 Condensed Interim Statment of Comprehensive Income For the Quarter Ended September 30, 2015 (Un-Audited) July To September (Loss) For the Year Other Comprehensive Income Amortization on Right Share (21,447,993) (2,745,901) - - (5,000,000) - Total Comprehensive (Loss) (26,447,993) (2,745,901) CHIEF EXECUTIVE OFFICER DIRECTOR Ghani Automobile Industries Limited 05

7 Condensed Interim Cash Flow Statement For the Quarter Ended September 30, 2015 (Un-Audited) July To September CASH FLOWS FROM OPERATING ACTIVITIES Profit / (loss) for the period before tax (21,447,993) (2,745,901) Adjustment for : Depreciation 782, ,538 Financial charges 267,473 6,924,995 1,050,246 7,513,533 Operating profit / (loss) before working capital changes (20,397,747) 4,767,632 (Increase) / decrease in current assets Store, spares and loose tools (5,900) (45,522) Stock in trade 21,031,203 5,710,708 Trade debtors 9,969, ,860 Advances and other receivables 5,990,775 (19,807,534) 36,985,736 (13,341,488) Increase / (decrease) in current liabilities Creditors, accrued and other liabilities (242,887) 9,179,650 16,345, ,794 Financial charges paid (267,473) (6,924,995) Taxes paid (2,767,087) (3,213,228) NET CASH FLOWS FROM OPERATING ACTIVITIES 13,310,542 (9,532,429) Acquisition of Fixed Assets (10,122,024) - NET CASH FLOWS FROM INVESTING ACTIVITIES (10,122,024) - Loan from sponsors (1,000,000) - Issuance of Right Shares - 150,000,000 Murabaha financing repaid (5,808,406) (21,809,574) NET CASH FLOWS FROM FINANCING ACTIVITIES (6,808,406) 128,190,426 Net increase / (decrease) in cash (3,619,888) 118,657,997 Cash and cash equivalents at the beginning of the period 4,049,563 10,046,889 Cash and cash equivalents at the end of the period 429, ,704,886 CHIEF EXECUTIVE OFFICER DIRECTOR 06 Ghani Automobile Industries Limited

8 Condensed Interim Statement Of Changes In Equity For the Quarter Ended September 30, 2015 (Un-Audited) Share Capital Accumulated Loss Total Capital profit/(loss) Balance as on June 30, ,000,000 (141,437,661) 58,562,339 Issue of Right Shares 300,000, ,000,000 Net Profit for the year - 8,768,384 8,768,384 Balance as on June 30, ,000,000 (132,669,277) 367,330,723 Balance as on July 01, ,000,000 (132,669,277) 367,330,723 Net profit / (loss) for the period - (26,447,993) (26,447,993) Balance as on Sep 30, ,000,000 (159,117,270) 340,882,730 CHIEF EXECUTIVE OFFICER DIRECTOR Ghani Automobile Industries Limited 07

9 Notes To The Condensed Interim Financial Statements For the Quarter Ended September 30, 2015 (Un-Audited) 1 COMPANY AND ITS OPERATIONS The company is a public listed company incorporated in Pakistan under the Companies Ordinance, 1984 in September The registered office of the company is situated 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 These financial statements are unaudited and are being submitted to the shareholders as required under Section 245 of the Companies Ordinance, These have been prepared in accordance with International Accounting Standard No. 34, Interim Financial Reporting as applicable in Pakistan and notified by Securities and Exchange Commission of Pakistan. The interim condensed financial statements do not include all the information and disclosure required in the annual financial statements, and should be read in conjunction with the company's annual financial statement for the year ended June 30, 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, JUNE ISSUED, SUBSCRIBED AND PAID UP CAPITAL 19,250,000 (Jun 2014: 19,250,000) ordinary shares of 10 each fully paid in cash 192,500, ,500, ,000 (Jun 2014: 250,000) ordinary shares of 10 each fully paid other than cash 2,500,000 2,500, ,000 (Jun 2014: 500,000) ordinary shares of 10 each issued as bonus shares 5,000,000 5,000,000 30,000,000 (Jun 2014: Nil) ordinary shares of 10 each issued as bonus shares 300,000, ,000, ,000, ,000,000 4 LOAN FROM SPONSORS This is interest free loan from directors. This is unsecured and is repayable on demand. 5 CONTINGENCIES AND COMMITMENTS Contingencies 5.1 There is a contingent liability of Rs. 1,727,290/- (2014: Rs. 1,727,290) in respect of income tax for assessment up to assessment year against order under section 50, 53 and 80D of repealed Income Tax Ordinance, The company has filed the appeals to ITAT and CIT against above orders. 5.2 The Punjab Employees Social Security Institution has raised a demand of Rs. 2,245,057/- (2014: Rs. 2,245,057) as less payment of contribution for the period from 1989 to The company has not acknowledged this demand and filed appeal under section 57 of the Social Security Ordinance, After remand of the case by Labour Court, appeal is now under process with Additional Commissioner, Punjab Employees Social Security Institute. 5.3 The Company has given bank guarantee of Rs. 729,000 (June 30, 2015: Rs. 729,000/-) to WAPDA. 5.4 The Company has given bank guarantee of Rs. 1,200,000/- (June 30, 2015: Nil) to SNGPL. 6 COMMITMENTS There were no commitments as at September 30, 2015 (June 30, 2015: Rs. 6,069,990/-). 7 DATE OF AUTHORIZATION FOR ISSUE These financial information were authorized for issue by the Board of Directors of the Company on October 30, Ghani Automobile Industries Limited

10 The Power of Perfection Head Office: 40-L, Model Town, Lahore, Pakistan UAN: Fax: Faran: ,