Shawal Hotel Financial

8/12/2019 Shawal Hotel Financial

1/83

2013

34,618

878

35,49623,939

214,717

82,016

132,701

2,269,854

3,087

2,405,642

188,262

2,217,380

413

24

186

1

123

38

7

1.6 1.75

1 1.29

2.62 4.08

6.58 9.25

Profit before tax

................................................. Rupe

Sales and services 363,639

PBIT

Finance cost

Financial position

Current assets

Profit / (loss) after tax

Net working capital

Less: Current liabilities

Other non-current assets

Fixed assets - net

Other non-current liabilities

TOTAL

Statistics

Number of rooms

Shareholders equity

Number of employees

Room occupancy %

Break up value per share (Rs.)

Earning per share (Rs.)

Net profit margin (%)

Current ratio

Dividend per share (Rs.)

Market value per share (Rs.)

ROA (%)

Ratios

ROCE (%)


2/83

300,000

4 180,000

197,220

377,220

5 1,840,160

6 178,786

7 9,476

8 2,549

9 79,467

82,016

10 0

2,487,658

ASSETS

Non-current assets

Fixed assets 11

12

13

14

15

16

17

18

19

30,000,000 ordinary shares of Rs. 10 each

Surplus on revaluation of fixed assets

Issued, subscribed and paid-up

Un-appropriated profit

Balance sheet as at June 30, 2013

The annexed notes form an integral part of this statement.

Creditors, accrued and other liabilities

Contingencies and commitments

Current liabilities

Current maturities

Advances and deposits - unsecured

Deferred liabilities

Deferred taxation

CAPITAL AND LIABILITIES

SHARE CAPITAL AND RESERVES

Share capital

Authorized

2,269,854

Long term deposits and advances 3,087

Current assets

Stores and spares 1,818

Stock in trade - food and beverages 1,233

Trade debts-unsecured, considered good 36,766

Advances, prepayments and other receivables 28,631

Short term investment 50,000

Tax refunds due from Government 0

Cash and bank balances 96,269

214,717


3/83

2,487,658


4/83


5/83


6/83

424,996

(61,357)

20 363,639

21 (227,051)

136,588

22 (110,294)

23 9,202

35,496

24 (878)

34,618

25 10,67923,939

Profit and loss accountfor the year ended June 30, 2

(Rupees)

Earning per share:

TaxationNet profit after taxation

Net profit before taxation

Operating profit

Financial charges

Administrative, selling and general expens

Sales tax, discounts and sales return

Sales and services - net

Turnover

Other operating income

Cost of sales and services

Gross profit


7/83

26 56,387

(17,183)

6,421

(878)

44,747

(8,683)

1,610

(500)

6,1550

(637)

(2,055)

(69,177)

(69,177)

(26,485)

89,802

27 63,317

Cash flow from investing activities

Acquisition of fixed assets

Financial charges

Net cash from operating activities

Income taxes paid

Income tax refund received

Cash flow statementfor the year ended June 30, 2013

Cash and cash equivalents - end of the year

Net increase/(decrease) in cash

Cash and cash equivalents - start of the year

Net cash used in financing activities

Cash flow from financing activities

Dividends paid

Long term deposits

Net cash used in investing activities

Sale of investment - held for trading

Investment in TDRs

Profit on TDR

Disposal of fixed assets

Cash flow from operating activities

Cash generated from operations


8/83

05. Surplu

09. Credito

04. Issue


9/83

Due from c

15. Trade d

Investment

17. Short t

Suppliers

Income tax

Staff

Due from s

Advances -

16. Advan

Provision a

Considered

Receivable


10/83

22. Admini

22.1 Includ

22.2 Audito

22.3 Donati

Jamiat Tale

Chhipa We

Hashmani

None of the

18. Tax ref


11/83

Income tax

Tax year 2

Cash at baCash at ba

19. Cash

Cash in ha

Food and b

Shop licen

20. Sales

Room rent

Food and b

20.1 This in

others ancil

21. Cost o

Other mino


12/83

23.1

24. Financ

Workers w

25. Taxati

Current yea

Prior year

Deferred

25.1

25.2

23. Other


13/83

25.3

in determini

Tax effect

determinin

Tax effect

Average eff

26. Cash

27. CashCash and b

Bank overd

28.1

28. Emplo


14/83

28.1.1 Actu

Discount ra

28.1.2 Amo

28.1.3

28.1.4 Mov

Opening pr

Current ser

Interest co

Benefits du

Benefits pa

Actuarial lo

Closing pre

28.1.5

28.1.6


15/83

28.1.7

28.1.8

28.1.9 Bas

million in re

Transactio

The related

directors a

undertakin

employmen

The compa

undertakin

price meth


16/83


17/83


18/83


19/83

s on revaluation of fixed assets

Surplus on revaluation of leasehold land

Surplus on revaluation of building on leasehold land

Leasehold land and building on leasehold land were revalued by M/s. D. H. Daruvala & Co., Architects and

Engineers (an independent valuer) in September 2003 resulting an increase over book value of Rs.

Accrued liabilities

Trade creditors - unsecured

s, accrued and other liabilities

Accrued expenses

Excise, taxes and others

Sales tax

Companies Ordinance 1984. The balance in the surplus on revaluation of fixed assets account is not

available for distribution amongst the shareholders neither as dividend nor as bonus under section 235 of

359.809 M and 508.280 M respectively. As on April 01, 2007 leasehold land and building on leasehold

land were revalued by M/s Sardar Enterprises (an independent valuer) which resulted in increase of Rs.

1,227.750 M and Rs. 111.355 M respectively in the book value. The incremental depreciation charged on

these assets has been transferred to accumulated profit in accordance with section 235 of the

d, subscribed and paid-up

Incremental depreciation (net of tax)

transferred to accumulated profit

Surplus on June 30, 2013


Incremental depreciation (net of tax)

transferred to accumulated profit


the Companies Ordinance, 1984.

Movement in the account of surplus on revaluation of fixed assets is as follows:

The company has one class of ordinary shares which carry no right to fixed income.

18,000,000

There were no movement in the share capital of the company in either the 2012 or 2013 reporting years.

1,419,200

16,580,800


20/83

16.1

17.1

ustomers

ebts-unsecured, considered good

- held to maturity

erm investment

Miscellaneous

Margin against letter of credit

Profit on term deposit - Summit Bank Limited

Other receivables

Rent receivable

Miscellaneous

Prepayments

Insurance

(net of liability)

aff

unsecured considered good

ces, prepayments and other receivables

gainst doubtful debts

doubtful

against sale of Al-Sehat


21/83

istrative, selling and general expenses

Salaries and other benefitsEntertainment

Traveling and transportation

Running and maintenance of vehicle

Rent, rates and taxes

Heat, light and power

Communications

Printing and stationery

Advertisement and sales promotion

Legal and professional charges

Auditors' remuneration

Repair and maintenance

Bank commission and charges

Fee and subscription

Pest control

Donation

Insurance

Commissions

Bad debts

Miscellaneous

Staff uniforms

Amortization

Depreciation

s Rs. 0.258 million (2012: Rs. 0.262 million) in respect of employee retirement benefits.

rs' remuneration

Audit fee

Taxation services

Out of pocket

on

emul Quran

lfare Association

ospital

directors or his spouse is interested in the funds of donees.

nds due from Government

Represents amount invested by the company in Term Deposits with Summit Bank Limited. The maturity

period of the investment is one year. The rate of interest on these investments varies from 9.75% to


22/83

Opening stock

Purchases

Closing stock

Consumption during the year

Direct expenses

Salaries, wages and other benefits

Heat, light and power

Replacement of linen, china and glassware

Uniforms

Guest transportation charges

Water charges

Decoration hire charges

Consumable stores

Guest supplies

Commission

Musical expenses

Laundry and dry cleaning

Telephone, telex and other related expenses

License and taxes

Traveling and transportation

Printing and stationery

Miscellaneous

Amortization

Depreciation

refundable

11

k (in deposit account) - Bank Al Habib Ltd.ks (in current accounts)

nd bank balances

d

everages

e fees

nd services - net

everages

cludes revenue from rent of conventional hall, and sale of telephone, laundry, health club and

liary services.

f sales and services

r operated departments


23/83


24/83

determining accounting profit

Tax effect of changes in prior year current tax

Reconciliation between average effective

tax rate and the applicable tax rateApplicable tax rate

Tax effect of expenses that are not deductible

ing taxable profit

f items that are not deductible in

accounting profit

f changes in prior year current tax

ective tax rate

enerated from operations

Profit before taxation

Adjustment for non cash items and other adjustments:

Depreciation

Amortization

Financial charges

Bad debts written off

Profit on TDR - Summit Bank Ltd.

Profit on saving account - Bank Al-Habib Ltd.

Gain on investment in shares

(Gain)/loss on disposal of assets

(Increase)/decrease in operating assets

Stores and spares

Stock in trade

Trade debts

Advances, prepayments and other receivables

Increase/(decrease) in operating liabilities

Advances and deposits

Creditors, accrued and other liabilities

nd cash equivalentank balances

raft

As mentioned in note 2.6, the Company operates an approved gratuity fund and makes contribution

on actuarial recommendations. The most recent actuarial valuations were carried out by M/s

ee benefits


25/83

Nauman Associates, Consulting Actuaries on July 26, 2013 of the present value of the defined

benefit obligation at June 30, 2013. The projected unit credit method, using the following significant

assumptions has been used for the actuarial valuation:

arial assumptions

te

Expected rate of eligible salary increase in future years

Expected rate of return on plan assets

Average remaining working life time (Years)

unt recognized in balance sheet are as follows:

Present value of defined benefit obligation

Present actuarial gain/(loss) to be recognized in later periods

Less: Fair value of Plan asset

(Asset) / liability on balance sheet

Fair value of plan assets

Cash at bank

Less: Benefits payables

Fair value of plan assets

ement in present value of defined benefit obligation

esent value of obligation

vice cost

t

e but not paid during the year

id

ss/(gain) on obligation

sent value of obligation

Movement in fair value of plan assets

Opening fair value of plan assets

Expected return on plan assets

Actuarial gain/(loss) on plan assets

Benefits due but not paid during the year

Benefits paid

Contribution by Company

Closing fair value of plan assets

Changes in Actuarial Gains/(Losses)

Unrecognized Actuarial Gains/(Losses) at start

Actuarial Gains/(Losses) arising during the year


26/83

Unrecognized Actuarial Gains/(Losses) at end

Expense recognized in profit and loss account

Current service cost

Interest cost


Actual return on plan assets


Actuarial gain on plan assets

Actual return on plan assets

d on actuarial advise the company intends to charge an amount of approximately Rs. 0.723

spect of gratuity fund in the financial statements for the year ending 30 June 2014.

s with related parties and associated undertakings

parties and associated undertakings comprise local associated companies, gratuity fund,

d key management personnel. Transactions with related parties and associated

s, other than remuneration and benefits to key management personnel under the term of their

t are as follows:

Rent income

Gratuity Fund

ny continues to have a policy whereby all transactions with related parties and associated

31

s are entered into at arm's length determined in accordance with comparable uncontrolled

d.

Receivable

30. Executive remuneration


27/83

Based on past experience the management believes that no impairment allowance is necessary in

respect of trade receivables past due as some receivables have been recovered subsequent to the

year end and for other receivables there are reasonable grounds to believe that the amounts will be

recovered in short course of time.


28/83

31.2 Liquidity risk

The level of occupancy depends on the extent of movement in tourism, business and airlines sector.

No. of rooms 413 413

Average percentage of occupancy 23.83% 24.57%

2013 2012

35. Capacity and production

made in these accounts

dividend already paid. The total estimated dividend to be paid is Rs. 72 million (2012: Rs. 18 million). The

interim and final dividend will make the total dividend per share equal to Rs. 7/=. The recommended final

dividend is subject to approval of the members.No adjustment in respect of the final dividend has been

34. Non-adjusting events after the balance sheet date

In the adjourned meeting of Board of Directors held on September 20, 2013, the directors decided to

recommend final cash dividend Rs. 4/= per share i.e. 40% in addition to 30% (2012: 15%) interim cash

33. Earning per share


29/83

Figures have been rounded off to the nearest thousand of rupee.

the Company.

37. Figures

36. Date of authorization for issue

These financial statements were authorized for issue on September 20, 2013 by the Board of Directors of


30/83


31/83

Rent receivable

From tenants

From related parties

Mrs. Nadia Zaheer

Mrs. Sadia Naveed

M/s. Baweja Education

Investment - held to maturity

Investment in Term Deposits


32/83

375

100

50

525

60

30

0

90


33/83

0

86,166

5789,525

96,269

179,289

132,483

12,034

39,833

363,639

21.1

11.2.1

11.1.1


34/83

1,610

2,397

895

1,502

108

878

878

15,762

506

(5,589)

10,679

34,618

12,116

1,325


35/83

(3,268)

506

10,679

%

3.83

- 9.44

1.46

30.85

34,618

38,714

165

878

120

(6,776)

(690)

0

(108)

32,303

66,921

(43)

146

(6,514)

(3,696)

(10,107)

453

(880)

(427)

56,387

96,269

(32,952)

63,317


36/83

4,655

605

(267)

(56)

(1,142)

900

4,695

82

(1,015)


37/83

(933)

564

687

(605)

646

605

(267)

338

985

900

Number of persons

Managerial remuneration

Perquisites and allowances

Financial instruments

The company has exposure to the following risks fro


38/83

- Liquidity risk

- Market risk

The Board of Directors has overall responsibility for t

- Credit risk

Credit risk represents the accounting loss that would

parties fail completely to perform as contracted and

management framework. The Board is also responsi

risk managment policies.31.1 Credit risk


39/83

Diluted earning per share - Rupees

Basic earning per share - Rupees

Weighted average number of ordinary shares

Net profit after taxation


40/83


41/83

Ordinary shares of Rs. 10/- each

fully paid in cash

Ordinary shares of Rs. 10/- each

issued for consideration other than cash (NRI)


42/83

16.1

17.1

1,965

34,624

50,000

8,761

2,644

49

2,550

45

6,117

15,475

28,631

50

1,472

5,192

718

752

12,404

34

6,937

4,843

177

624

36,766

38,559

1,793

1,793

36,766


43/83

11.2.1

11.1.1

50,000


44/83

3,181

1,379

8,255

676

43,935

56,630

(1,233)

56,776

41,470

582

3,979

849

288

248

3,083

10,934

756

11,788

3,959

1,047

34,843

170,275

270

132


45/83

220

508

23.1

900

6,776690

0

9,202

227,051


46/83


47/83

2013

10.5%

9.5%

13%

11 years

2013

6,088

(932)

(4,695)

461

5,123

(428)

4,695

5,288

564

687

(56)

(1,142)

747

6,088


48/83

2013

its use of financial instruments:


49/83


50/83

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall

due. The company's approach to managing liquidity is to ensure as far as possible to always have

sufficient liquidity to meet its liabilities when due. The following are the contractual maturities of

financial liabilities, including estimated interest payments:

30 June 2013

Financial liabilities


Trade and other payables

2013


Trade and other payables

Financial liabilities

2012


51/83


52/83

1,587,559

252,601

12,063

5,691

526

4,698

17,287

1,840,160

0

1,587,559

1,587,559

0

land leasehold land

(Rupees '000)

1,587,559

Surplus on revaluation of

Leasehold Building on

180,00014,192

165,808


53/83

8,761

50,000


54/83

22.1 34,6431,379

5,487

331

1,450

4,503

2,428

1,684

2,903

1,235

22.2 525

46,245

100

514

253

22.3 90

0

658

120

1,837

5

33

3,871

110,294

(Rupees '000)


55/83


56/83

108

0

2013


57/83


58/83


59/83

(Rupees '000)

1,170

500

1,732

2013

2,048 2,508

6,600 6,749

1 2

4,552 4,241 3,177

Executive Directors Executive Executive

................................................Rupees '000......................................................

Chief


60/83

0-30 days

31 - 60 days

61 - 90 days

91 - 120 days

120 days


61/83

Carrying

Amount

............................................................(Rupees '000).........................................................

9,476 9,476

64,378

73,854

Carrying

Amount

9,201 9,201

35,005

44,206

1.33

1.33

18,000

23,939


62/83


63/83


64/83


65/83


66/83


67/83

0

2012


68/83


69/83


70/83

3,110

1,568 1,520

4,745 4,630

6 6

Executive

Chief


71/83

(Rupees '

3,087

36,766

50,000

8,811

10,103

108,767

19,263

5,883

4,964

3,993

2,663

36,766


72/83

Contractual Six months Six to twelve One to two

cash flows or less months years

0 9,476

64,378 64,378 0

73,854 64,378 9,476

30 June 2012

Contractual Six months Six to twelve One to two

cash flows or less months years

0

35,005 35,005

44,206 35,005

9,201

0

9,201


73/83


74/83


75/83


76/83


77/83


78/83


79/83


80/83


81/83


82/83

00)

2,450

30,372

49,500

6,842

13,087

102,251

16,008

7,596

3,629

729

2,410

30,372


83/83

Two to five

years

0 0

0 0

0 0

Two to five

years

0 0

0 0

0 0

Shawal Hotel Financial

Documents

Transcript of Shawal Hotel Financial