LIMITED CONTENTS Company Information Quarterly Review Balance Sheet Profit & Loss Account Statement of Comprehensive Income Cash Flow Statement Statement of Changes in Equity Notes to the Condensed Financial Information 1 2 3 4 5 6 7 8
LIMITED LIMITED COMPANY INFORMATION QUARTERLY REVIEW BOARD OF DIRECTORS Mr. Tahir Jahangir Chairman Mr. Izaz Ilahi Malik Sh. Anwar Ahmad Batla Syed Zubair Ahmad Shah (NIT Nominee) Mr. Usman Ilahi Malik Mr. Jillani Jahangir Mr. Furqan Anwar Batla AUDIT COMMITTEE Sh. Anwar Ahmad Batla Chairman/Member Syed Zubair Ahmad Shah Member Mr. Usman Ilahi Malik Member CHIEF FINANCIAL OFFICER COMPANY SECRETARY AUDITORS BANKERS REGISTERED OFFICE HEAD OFFICE SHARES REGISTRAR OFFICE Mr. Muhammad Saeed Malik Rana Shakeel Shaukat M/s Maqbool Haroon Shahid Safdar & Co. Chartered Accountants Habib Metropolitan Bank Limited Faysal Bank Limited Plot No. 26-27-28, Industrial Triangle, Kahuta Road, Islamabad. Ph: 051-4490017-20, Fax: 051-4490016 & 051-4492803 120-E/1, Gulberg - III, Lahore. Tel: 042-35761585 - 86 Fax: 042-35710235 E-mail: corporate@halaenterprises.com M/s Corplink (Private) Limited Wings Arcade, I - K, Commercial Model Town, Lahore. Ph: 042-35916714, 35916719 Fax: 042-35869037 Operating Performance Sales revenue for the quarter increased by 27% compared to the same period last year. This was mainly on account of higher prices and volume growth in the cooking oils and specialty fats segments. Gross profit, however, decreased by 19% due to a dip in gross margins to 4.3% from 6.7%. The main reason for this decrease was a sharp fall in international oil prices during the quarter. As our imports were locked in at higher prices and competitive pressure forced us to drop prices early to maintain market share, the overall profitability suffered. At the operating level expenses showed an increase of 8%. Although this is in line with the inflation rate, in fact less than the inflation rate, the main contributors to the expense rise were advertisement costs due to our Ramadan campaign, and salaries and wages which mainly reflected annual increments awarded to company employees, While salaries and wages will maintain this trend for the next 3 quarters, quarterly advertisement cost, barring any new campaigns, will likely decrease (compared to the quarter under review) as a proportionately larger share of the annual budget was spent in the first quarter. Although as a percentage of sales the operating expenses declined to 3.1% from 3.6% due to higher revenue, any positive impact of this was negated by lower gross margins, causing the operating profit to fall by 50%. Higher financial charges, lower contribution to WPPF and WWF, and marginally lower other income combined to decrease profit before tax by about 55% for the quarter. Together with a 79% higher incidence of taxation, the company posted a loss of Rs. 9.8 million for the period under review. Outlook for the Year Although our gross margins declined for the period, leading to an after-tax loss, we expect the situation to improve in the current quarter. The international oil markets appear to have stabilized now and misalignment between costs and prices has been removed to a large degree. At current levels we expect margins to recover and result in improved profitability for the next quarter. Islamabad Date: 29th October 2011 For & on behalf of the board (IZAZ ILAHI MALIK) CHIEF EXECUTIVE 1 2
LIMITED LIMITED EQUITY AND CAPITAL SHARE CAPITAL AND RESERVES Authorised share capital 10, 000, 000 ordinary shares of Rs. 10/- each Issued, subscribed and paid-up capital Reserves Accumulated profit SURPLUS ON REVALUATION OF PROPERTY PLANT & EQUIPMENT NON CURRENT LIABILITIES Deferred liabilities CURRENT LIABILITIES Trade & other payables Current portion of long term liabilities Short term borrowings Accrued Markup Unclaimed dividend Provision for taxation CONTINGENCIES & COMMITMENTS ASSETS NON CURRENT ASSETS Property, Plant & Equipment Capital Work in Progress LONG TERM DEPOSITS CURRENT ASSETS Stores,spare parts and loose tools Stock in trade Trade debts Loans & advances Trade deposits & short term prepayments Other receivables Advance income tax Cash and bank balances CONDENSED INTERIM BALANCE SHEET AS AT SEPTEMBER 30, 2011 (UN-AUDITED) 1st Quarter Year 30.09.2011 30.06.2011 100,000,000 100,000,000 53,906,520 53,906,520 31,737,159 31,737,159 109,946,768 119,140,682 195,590,447 204,784,361 119,989,382 120,621,277 34,554,650 33,489,785 34,554,650 33,489,785 381,838,321 361,582,160 159,547 209,829 15,521,542 26,545,692 187,743 241,685 1,104,972 1,382,287 121,585,999 100,681,430 520,398,124 490,643,083 - - 870,532,603 849,538,506 203,242,457 189,804,377 9,781,452 5,863,648 213,023,909 195,668,025 25,774,722 23,608,740 55,731,800 44,482,154 219,445,382 204,256,349 204,694,285 252,237,417 13,521,014 4,868,593 11,350,584 22,453,323 787,266 854,483 109,973,533 90,098,191 16,230,108 11,011,231 631,733,972 630,261,741 CONDENSED INTERIM PROFIT & LOSS ACCOUNT (UN-AUDITED) FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2011 Sales - net Cost of Sales GROSS PROFIT OPERATING EXPENSES Selling and distribution cost Administrative Expenses OPERATING PROFIT Finance cost Other operating charges Other operating income PROFIT BEFORE TAXATION Taxation (LOSS)/PROFIT AFTER TAXATION Earnings per share Basic and diluted 1st Quarter 1st Quarter 30.09.2011 30.09.2010 1,032,619,377 815,578,344 988,132,518 760,337,728 44,486,859 55,240,616 17,700,035 16,220,589 13,883,108 13,097,701 31,583,143 29,318,290 12,903,716 25,922,326 1,634,716 409,199 997,005 1,963,521 2,631,721 2,372,720 10,271,995 23,549,606 806,765 860,365 11,078,760 24,409,971 (20,904,569) (11,677,356) (9,825,809) 12,732,615 (1.82) 2.76 ISLAMABAD: DATED: 29th October, 2011 870,532,603 849,538,506 3 4
LIMITED LIMITED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2011 Ist Quarter Period Ist Quarter Period 30.09.2011 30.09.2010 (Loss)/ Profit after Taxation (9,825,809) 12,732,615 Transfer from surplus on revaluation of Property, plant & equipment on account of Incremental depreciation 631,895 699,197 Total Comprehensive/(Loss) income for the period (9,193,914) 13,431,812 CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED) FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2011 CASH FLOW FROM OPERATING ACTIVITIES Profit for the period before taxation Adjustments for following items: Workers' profit participation fund Workers' welfare fund Provision for gratuity Depreciation Finance cost Operating Profit Before Working Capital Changes (Increase)/Decrease in Current Assets Stores, spare parts & loose tools Stock in Trade Trade debts Loans and advances Trade deposits & short term prepayments Other receivables Increase / (Decrease) in Current Liabilties Trade & other payables Cash generated from operations 1st Quarter 1st Quarter 30.09.2011 30.09.2010 11,078,760 24,409,971 607,265 1,318,675 238,490 501,096 1,820,865 1,323,795 3,095,366 2,641,030 1,634,716 409,199 7,396,702 6,193,795 18,475,462 30,603,766 (11,249,646) (10,353,343) (15,189,033) (52,138,931) 47,543,132 9,801,255 (8,652,421) (2,339,544) 11,102,739 12,123,368 67,217 (93,020) 23,621,988 (43,000,215) 19,189,620 37,562,373 61,287,070 25,165,924 Workers' profit participation fund paid Workers' welfare fund paid Staff retirement benefits paid Finance cost paid Income tax paid Dividend paid Net Cash Generated from Operations CASH FLOW FROM INVESTING ACTIVITIES Fixed capital expenditure Capital work in progress Long term deposits CASH FLOW FROM FINANCING ACTIVITIES Increase/(decrease) in finance lease Short term borrowings Net Increase/(Decrease) in Cash and Cash Equivalent Cash and Cash Equivalent at the beginning of the year Cash and Cash Equivalent at the end of the period - - - - (756,000) - (1,467,873) (241,504) (19,875,342) (11,853,994) (277,315) (54,410) (22,376,530) (12,149,908) 38,910,540 13,016,016 (16,533,445) (3,110,410) (3,917,804) (616,414) (2,165,982) (3,750,000) (22,617,231) (7,476,824) (50,282) (88,614) (11,024,150) - (11,074,432) (88,614) 5,218,877 5,450,578 11,011,231 30,763,926 16,230,108 36,214,504 5 6
LIMITED LIMITED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOF THE FIRST QUARTER ENDED SEPTEMBER 30, 2011 (UN-AUDITED) SHARE CAPITAL REVENUE ACCUMULATED CAPITAL RESERVES RESERVES Profit/(Loss) Total Balance as at July 01, 2010 38,285,875 1,880,875 8,600,000 95,457,597 144,224,347 Net Profit for the period ended September 30, 2010 - - - 12,732,615 12,732,615 Transferred from Surplus on Revaluation of Fixed Assets - - - 699,197 699,197 Balance as at September 30,2010 38,285,875 1,880,875 8,600,000 108,889,409 157,656,159 Balance as at July 01,2011 53,906,520 23,137,159 8,600,000 119,140,682 204,784,361 Net Profit/ (Loss) for the period ended September 30, 2011 - - - (9,825,809) (9,825,809) Transferred from Surplus on Revaluation of Fixed Assets - - - 631,895 631,895 Balance as at September 30, 2011 53,906,520 23,137,159 8,600,000 109,946,768 195,590,447 NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE IST QUARTER ENDED SEPTEMBER 30,2011 (UN-AUDITED) 1 LEGAL STATUS AND OPERATIONS Punjab Oil Mills (the company) was incorporated in Pakistan as a Public Limited Company Its shares are quoted on all stock exchanges in Pakistan. It is mainly engaged in the manufacturing and sale of Ghee, Cooking Oil, Speciality Fats and laundry Soap. 2 BASIS OF PREPARATION This condensed interim financial information is un-audited and has been prepared in accordance with the requirements of International Financial Reporting Standard (IFRS) IAS 34 as applicable in Pakistan. This Condensed interim financial information does not include all of the information and disclosures required for full annual financial statements, and should be read in conjunction with the financial statements of the Company for the year ended June 30, 2011. This condensed interim financial information is being submitted to the shareholders as required by the listing regulation of Karachi. Lahore and Islamabad Stock Exchanges and Section 245 of the Companies Ordinance, 1984. 3 SIGNIFICANT ACCOUNTING POLICIES The accounting policies and method of computation which have been used in the preparation of this condensed interim financial information are the same as those applied in the preparation of the financial statements for the preceding year ended June 30, 2011. 4 DATE OF AUTHORIZATION FOR ISSUE This condensed interim financial information was authorized for issue on October 29, 2011 by the board of directors of the Company. 5 GENERAL Corresponding figures have been re-arranged, wherever necessary to the facilitation of comparison Figures have been rounded off to the nearest of rupees. 7 8