CONTENTS Highlights... · syed muhammad anwar - member mr. zafar asim mr.: muhammad hanif german...
Transcript of CONTENTS Highlights... · syed muhammad anwar - member mr. zafar asim mr.: muhammad hanif german...
Company Information......................................................................
Directors’ Review............................................................................
Condensed Interim Balance Sheet...................................................
Condensed Interim Profit and Loss Account ..................................
Condensed Interim Statement of Comprehensive Income...............
Condensed Interim Cash Flow Statement.......................................
Condensed Interim Statement of Changes in Equity........................
Notes to the Condensed Interim Financial Statement.....................
Condensed Interim Operating Results.............................................
Director Report in Urdu.................................................................
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CONTENTS
COMPANY INFORMATION
02 THIRD QUARTER REPORT
EXECUTIVE DIRECTOR
NON-EXECUTIVE DIRECTORS
INDEPENDENT DIRECTOR
AUDIT COMMITTEE
HUMAN RESOURCE & REMUNERATION COMMITTEE
CHIEF FINANCIAL OFFICER
COMPANY SECRETARY
AUDITORS
LEGAL ADVISORS
TAX ADVISORS
FACTORY OFFICE
HEAD OFFICE
REGISTERED OFFICE
SHARE REGISTRAR/TRANSFER AGENTS
BANKERS
DEWAN MUHAMMAD YOUSUF FAROOQUICEO & CHAIRMAN BOARD OF DIRECTORSMR. ZAFAR ASIM
MR. HAROON IQBALMR. GHAZANFAR BABER SIDDIQISYED MUHAMMAD ANWARMR. MUHAMMAD BAQAR JAFFERI
MR. AZIZ-UL-HAQUE
MR. AZIZ-UL-HAQUE - CHAIRMANMR. HAROON IQBAL - MEMBERSYED MUHAMMAD ANWAR - MEMBER
MR. HAROON IQBAL - C HAIRMANDEWAN MUHAMMAD YOUSUF FAROOQUI - MEMBERSYED MUHAMMAD ANWAR - MEMBER
MR. ZAFAR ASIM
MR. MUHAMMAD HANIF GERMAN
FARUQ ALI & CO.CHARTERED ACCOUNTANTS
FEROZE SHARIF TARIQ & CO.CHARTERED ACCOUNTANTS
KHALID ANWER & COMPANY - ADVOCATES
SHARIF & COMPANY - ADVOCATES
PLOT NO 1, DEWAN FAROOQUE INDUSTRIAL PARK,HATTAR, DISTRICT HARIPUR (K.P.K.)
FINANCE & TRADE CENTRE BLOCK-A, 7TH FLOOR,SHAHRAH-E-FAISAL, KARACHI.
PLOT NO. 6, STREET NO. 9, FAYYAZ MARKET,G-8/2, ISLAMABAD, PAKISTAN
BMF CONSULTANTS PAKISTAN (PRIVATE) LIMITEDANUM ESTATE BUILDING, ROOM NO. 310 & 311,3RD FLOOR, 49, DARUL AMAN SOCIETY,MAIN SHAHRAH-E-FAISAL, ADJACENT TO BALOCH COLONY BRIDGE,KARACHI, PAKISTAN.
AL BARAKA ISLAMIC INVESTMENT BANK LIMITEDALLIED BANK LIMITEDASKARI BANK LIMITEDBANK ALFALAH LIMITEDBANK OF KHYBER LIMITEDBANK OF PUNJAB LIMITEDFAYSAL BANK LIMITEDHABIB BANK LIMITEDHABIB METROPOLITAN BANK LIMITEDHONG KONG & SHANGHAI BANKING CORPORATION KASB BANK LIMITEDMEEZAN BANK LIMITEDSUMMIT BANK LIMITEDMCB BANK LIMITEDNATIONAL BANK OF PAKISTAN LIMITEDNIB BANK LIMITEDSTANDARD CHARTERED BANK LIMITED (PAKISTAN)SILK BANK LIMITEDUNITED BANK LIMITED
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BOARD OF DIRECTORS
By and under Authority of the Board of Directors
LO-MY LORD IS INDEED HEARER OF PRAYER (HOLY QURAN)
Chief Executive/Chairman Board of Directors
Dewan Muhammad Yousuf Farooqui
DIRECTORS’ REVIEW
IF YE GIVE THANKS, I WILL GIVE YOU MORE (HOLY QURAN)
IN THE NAME OF ALLAH; THE MOST GRACIOUS AND MERCIFUL
03THIRD QUARTER REPORT
The Board of Directors of your company present un-audited Condensed Interim Financial Statements of the rdCompany for the 3 quarter ended on March 31, 2017 in compliance with the requirements of section 245 of
the Company's Ordinance 1984 as amended through Companies ( amendment) Ordinance 2002 and Code of Corporate Governance issued by the Securities and Exchange Commission of Pakistan
OPERATING PERFORMANCEDespite of our best efforts during the period under review, we were unable to start the plants of your company due to unavailability of Working Capital. However, management of your company makes their best efforts to operate the largest unit of the country.
The Company is successfully facing litigations with lenders as elaborated in our previous audited financial statements. The Management is fully confident that the Company will have favorable decision from the concerned courts.
INDUSTRY OVERVIEW The period under review was comparatively remained stable for the polyester industry as far as the sales volume and capacity utilization was concerned. However, some little price variation of PTA and MEG was experienced which the industry passed on in their PSF price accordingly. Moreover, no significant shifting of spinning mills from PSF to other fibre was seen during the period. The spinning sector experienced some fluctuations during the quarter as the PV market slowed down due to unprecedented high temperature during the month of March which forced to early shifting of looms from PV. The increased span of load shedding during that period also affected the looms' production. FINANCIAL PERFORMANCECompany recorded net sales of Rs.Nil (2016-Rs.Nil) during the period under review suffered gross loss of Rs.387.501 million. (2016 Rs. 423.336 million) And loss after taxation amounted to Rs. 380.941 million. (2016 Rs. 463.306 million).
ACKNOWLEDGEMENTThe Board expresses the hope that it's valued shareholders, Federal and Provincial Government functionaries, banks, financial institutions and customers of Salsabil, shall continue to extend their cooperation, support and patronage as in the past.
The Board also expresses its appreciation for the valuable services, loyalty and laudable efforts continuously rendered by the executives, staff members and workers of the company and recognize that they are most valuable assets of the Company.
CONCLUSIONIn conclusion, we bow, beg and pray to Almighty Allah, Rahman-o-Raheem, in the name of our beloved prophet. Muhammad (Peace Be Upon Him), for continued showering of His blessings, Guidance, Strength, Health and Prosperity on our Nation, Country and also pray to Almighty Allah to bestow peace, harmony, brotherhood and unity in true Islamic spirit to the whole of Muslim Ummah, Aameen, Summa Aameen.
Karachi: April 26, 2017
Chief Executive/Chairman Board of DirectorsDewan Muhammad Yousuf Farooqui
DirectorHaroon Iqbal
CONDENSED INTERIM BALANCE SHEET (UN-AUDITED)AS AT MARCH 31, 2017
Re-Stated Re-StatedUN-AUDITED AUDITED
Notes MARCH. 31, 2017
JUNE 30, 2016
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized capital
630,000,000 (2013: 630,000,000) Ordinary shares of Rs. 10/- each 6,300,000 6,300,000
90,000,000 (2013: 90,000,000) Preference shares of Rs. 10/- each 900,000 900,000
7,200,000 7,200,000
Issued, subscribed and paid-up capital 3,663,211 3,663,211
Reserves (16,457,988) (16,180,724)
(12,794,777) (12,517,513)
Surplus on revaluation of property, plant and equipment 1,676,178 1,775,765
NON CURRENT LIABILITIES
Long term loans 171,823 162,734
Deferred liabilities 728,432 774,896
CURRENT LIABILITIES
Trade and other payables 529,863 526,020
Short term borrowings 14,196,096 14,196,096
Overdue portion of long term loans 3,269,874 3,266,724
Overdue portion of liability against assets subject to finance lease 54,145 54,145
Provision for taxation 160,864 160,864
18,210,842 18,203,849Contingencies and commitments -- --
7,992,498 8,399,731ASSETS
NON CURRENT ASSETS
Property, plant and equipment 5,170,706 5,529,604
Long term investments 153,543 147,327
CURRENT ASSETS
Stores and spares 867,845 867,845Trade debts 1,315,656 1,377,334
Advances - Considered good 8,437 9,385
Short term deposits and prepayments 160,553 160,553
Other receivables - Considered good 77,206 76,733
Cash and bank balances 15,552 7,950
2,445,249 2,499,800
Non current assets held for sale 223,000 223,000
7,992,498 8,399,731
The annexed notes form an integral part of this interim condensed financial information.
(Rupees in '000)
04 THIRD QUARTER REPORT
Chief Executive/Chairman Board of DirectorsDewan Muhammad Yousuf Farooqui
DirectorHaroon Iqbal
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UNAUDITED)FOR THE NINE MONTHS ENDED MARCH 31, 2017
Sales
Cost of sales (fixed costs)
Gross loss
Distribution cost
Administration expenses
Operating loss
Finance cost
(Loss) / before taxation
Taxation - Deffered
(Loss) / after taxation
Loss per share - Basic ( Rupees )
Loss per share - Diluted ( Rupees )
The annexed notes form an integral part of this interim condensed financial information.
Mar 31, Mar 31,
Notes2017 2016
-- --
387,501 423,336
(387,501) (423,336)
1,496 1,035
25,573 26,579
27,069 27,614
(414,570) (450,950)
(12,236) (64,909)
(426,806) (515,859)
45,865 52,553
(380,941) (463,306)
(1.04) (1.26)
(0.99) (1.20)
(Rupees in '000)
05THIRD QUARTER REPORT
Chief Executive/Chairman Board of DirectorsDewan Muhammad Yousuf Farooqui
DirectorHaroon Iqbal
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)FOR THE NINE MONTHS ENDED MARCH 31, 2017
Net loss after taxation
Comprehensive income transferred to equity
Net change in fair value of available-for-sale financial assets
Gain realized on sale of investments now reclassified to profit or loss
Incremental depreciation transferred from surplus on revaluation of
property, plant and equipment
Related deferred tax
Total comprehensive loss transferred to equity
The annexed notes form an integral part of this interim condensed financial information.
Mar 31, Mar 31,
2017 2016
(463,307)
(463,307)
6,215 (1,190)
143,327 159,252
(45,865) (52,553)
97,462 106,699
(277,264) (357,798)
(Rupees in '000)
(380,941)
(380,941)
06 THIRD QUARTER REPORT
(515,860)
398,068
--2,257
64,909
(50,626)74,719
24,093
(1,463)(3)
(176)
(1,642)22,451
1,391
(2,963,893)
(2,962,502)
66,846(180)(249)
8,30274,719
10,393
(2,970,019)(2,876)
(2,972,895)
(2,962,502)
CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)'FOR THE NINE MONTHS ENDED MARCH 31, 2017
Chief Executive/Chairman Board of DirectorsDewan Muhammad Yousuf Farooqui
DirectorHaroon Iqbal
Mar 31, Mar 31,
2017 2016
Cash Flow from Operating Activities
Loss before taxation Adjustments for: Depreciation
Unwinding discount Provision for gratuity Financial charges
cash outflow before working capital changes Movement in working capital ( Note A )
Cash generated /(used)from operations Payments for: Staff gratuity Financial charges Tax
Net cash generated in operating activities Cash Flow from Investing Activities Cash Flow from Financing Activities
Net Increase/ (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning
Cash and cash equivalents at 30 September ( Note B)
The annexed notes form an integral part of this interim condensed financial information.
(Rupees in '000)
Note - AMovement in Working Capital (Increase) / decrease in current assets
Trade Debts Advances Other receivables Increase / (decrease) in current liabilities Trade and other payables
Note - BCash and Cash Equivalents Cash and cash equivalents include: Cash and bank balances Short term finances:
-Short term running finances-Book Overdraft
(426,806)
358,897
9,0891,8533,147
(7,955)65,994
58,039
(4,092)(7)
(472)
(4,571)7,603
7,603
(2,964,945)
(2,957,343)
61,678948
(474)
3,84265,994
15,552
(2,970,019)(2,876)
(2,972,895)
(2,957,343)
-- ---- --
07THIRD QUARTER REPORT
Issued, General Unrealized gain/ Accumulated Total
subscribed reserve (loss) due to loss
and paid-up change in fair
capital value of
investment
(Rupees in '000)
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)FOR THE NINE MONTHS ENDED MARCH 31, 2017
Chief Executive/Chairman Board of DirectorsDewan Muhammad Yousuf Farooqui
DirectorHaroon Iqbal
Balance as at July 1, 2015 3,663,211 350,000 1,212 (15,902,527) (11,888,104)
Comprehensive loss for the peroid -- -- -- (463,307) (463,307)
Net changes in fair value of available
for sale financial assets -- -- (1,190) -- (1,190)
Incremental depreciation transferred
from surplus on revaluation of
property,plant and equipment- Net of
Tax -- -- -- 106,699 106,699
Balance as at March 31, 2016 3,663,211 350,000 22 (16,259,135) (12,245,902)
Balance as at July 1, 2016 3,663,211 350,000 2,336 (16,533,060) (12,517,513)
Total Comprensive loss for the period
Comprehensive loss for the period -- -- --
Net changes in fair value of available
for sale financial assets 6,215 6,215
Incremental depreciation transferred
from surplus on revaluation of
property,plant and equipment- Net of
Tax -- 97,462 97,462
Balance as at March 31,2017 3,663,211 350,000 8,551 (16,816,539) (12,794,777)
The annexed notes form an integral part of this interim condensed financial information.
(380,941) (380,941)
08 THIRD QUARTER REPORT
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)FOR THE NINE MONTHS ENDED MARCH 31, 2017
1 THE COMPANY AND ITS OPERATIONSThe Company was incorporated in Pakistan on October 04, 1989 and its shares are listed on Karachi, Lahore and Islamabad Stock Exchanges. It is engaged in manufacture and sale of polyester, acrylic fibre and tow products. The registered office of the Company is situated at Dewan Centre, House No. 58, Margalla Road, F-7/2, Islamabad, Pakistan.
2 BASIS OF PREPARATION2.1 These condensed interim financial statements of the company are for the
quarter ended March 31, 2017 have been prepared in accordance with the requirements of International Accounting Standard 34 (IAS 34) "Interim Financial Reporting" and being submitted to the shareholders under section 245 of the Companies Ordinance 1984 and listing regulations of the Karachi, Lahore and Islamabad Stock Exchange.
2.2 These interim financial Statements comprises of the Balance Sheet as at March 31, 2017 and the Profit and Loss Account, Statement of Changes in Equity and the Cash Flow Statement for the quarter ended March 31, 2017.
2.3 These comparative Balance Sheet presented in these condensed interim financial statements as March 31, 2017 has been extracted from the annual audited financial statements of the company for the year ended June 30, 2016 where as the items of comparative profit and loss account, statement of changes in equity, cash flow statement and statement of comprehensive income are for the quarter ended March 31, 2016.
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES3.1 The accounting policies, significant accounting estimates and judgments
adopted and applied in the preparation of the condensed interim financial information are consistent with those followed in the preparation of the Company's annual financial statements for the year ended 30 June 2016.
09THIRD QUARTER REPORT
4 SHORT TERM BORROWINGSThe short term borrowings has not been renewed by the bank as of balance sheet date.
5 CONTINGENCIES AND COMMITMENTSThe status of contingencies and commitments are same as reported in the annual financial statements for the year ended 30 June 2016.
6 DATE OF AUTHORIZATION FOR ISSUEThese financial statement have been authorized for issue on 26 April 2017 by the board of Directors of the company.
7 GENERALThe figure have been rounded off to the nearest thousand rupees.
Chief Executive/Chairman Board of DirectorsDewan Muhammad Yousuf Farooqui
DirectorHaroon Iqbal
10 THIRD QUARTER REPORT
Chief Executive/Chairman Board of DirectorsDewan Muhammad Yousuf Farooqui
DirectorHaroon Iqbal
CONDENSED INTERIM OPERATING RESULTS (UNAUDITED)FOR THE QUARTER ENDED MARCH 31, 2017
Mar 31, Mar 31,
Notes 2017 2016
Sales -- --
Cost of sales 131,018 139,892
Gross loss (131,018) (139,892)
Distribution cost 667 345
Administration expenses 8,190 9,243
8,857 9,588Operating loss (139,875) (149,480)
Finance cost 1,061 (8,174)Loss before taxation (138,814) (141,306)
Taxation - Deffered (2,866) (18,579)
Loss after taxation (135,948) (122,727)
Loss per share - Basic ( Rupees ) (0.37) (0.33)
Loss per share - Diluted ( Rupees ) (0.35) (0.32)
The annexed notes form an integral part of this interim condensed financial information.
(Rupees in '000)
11THIRD QUARTER REPORT
12 THIRD QUARTER REPORT