Interim Financial Report for the nine months ended ... · Mr. Usman Shahid Director - NBP Nominee U/S 164 of the Act/ Non Executive Ms. Azra Naila Shoaib Director - NBP Nominee U/S

Pak Elektron Limited

Interim Financial Reportfor the nine months ended September 30, 2019

Corporate InformationDirectors’ Review

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION

Condensed Interim Consolidated Statement of Financial PositionCondensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive IncomeCondensed Interim Consolidated Statement of Cash FlowsCondensed Interim Consolidated Statement of Changes in EquityNotes to the Condensed Interim Consolidated Financial Information

CONDENSED INTERIM FINANCIAL INFORMATION

Condensed Interim Statement of Financial PositionCondensed Interim Statement of Profit or Loss and Other Comprehensive IncomeCondensed Interim Statement of Cash FlowsCondensed Interim Statement of Changes in EquityNotes to the Condensed Interim Financial Information

0203

1012131415

2426272829

Contents

Corporate InformationDirectors’ Review

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION

Condensed Interim Consolidated Statement of Financial PositionCondensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive IncomeCondensed Interim Consolidated Statement of Cash FlowsCondensed Interim Consolidated Statement of Changes in EquityNotes to the Condensed Interim Consolidated Financial Information

CONDENSED INTERIM FINANCIAL INFORMATION

Condensed Interim Statement of Financial PositionCondensed Interim Statement of Profit or Loss and Other Comprehensive IncomeCondensed Interim Statement of Cash FlowsCondensed Interim Statement of Changes in EquityNotes to the Condensed Interim Financial Information

0203

1012131415

2426272829

Contents

Mr. M. Naseem Saigol Director/Chairman - Non ExecutiveMr. M. Murad Saigol Director/Chief Executive Ofcer/DTP CertiedMr. M. Zeid Yousuf Saigol Director - Executive/DTP CertiedSyed Manzar Hassan Director - Executive/DTP CertiedSyed Haroon Rashid Director - Independent/DTP CertiedMr. Asad Ullah Khawaja Director - NIT Nominee/Independent/DTP CertiedMr. M. Kamran Saleem Director - Independent/DTP Certied Mr. Usman Shahid Director - NBP Nominee U/S 164 of the Act/ Non ExecutiveMs. Azra Naila Shoaib Director - NBP Nominee U/S 164 of the Act/ Non Executive

Directors’ ReviewCorporate Information

Your directors are pleased to present the un-audited interim nancial information of the Company for the nine months period ended September 30, 2019.

The Economy

The macro economic challenges persist within the overall economy. In light of the deteriorating twin decits, corrective scal and monetary policy measures are being taken. The overall economic slowdown, along with specic import compression measures, led to a substantial contraction in the country's import bill which declined by 23% 2MFY'20 vs 2MFY'19. The country's exports for the two months of 2MFY'20 were recorded at USD 4.1 billion, posting a muted growth of 1.4% compared to 2MFY'19, while worker's remittances were recorded at USD 3.7 billion for 2MFY'20, declining by 8% over the corresponding period last year. However, the sizeable reduction in imports led to the Current Account Decit (CAD) reducing by 55%, closing 2MFY'20 at USD 1.3 billion (2MFY'19: USD 2.9 billion).

The country's FX reserves closed at USD 15.0 billion at Sep'19, up 9% over Dec'18, while the reserves position stood at USD 13.8 billion. The widening trade decit exerted pressures on the exchange rate for much of the year. This resulted in the PKR declining by 12.6% in value to the USD, closing at Rs. 156.37 / USD at Sep'19 (Dec'18: Rs. 138.86 / USD). The PKR devaluation, coupled with increase in power tariffs to meet revenue targets, added inationary pressures as the CPI averaged 9.2% during 8M'19, almost double the 4.5% level recorded during the corresponding period of last year. SBP in its monetary policy statement on 16th September 2019, maintained the policy rate at 13.25%.

Industry Overview

Large Scale Manufacturing Industries –LSMI sector remained in pressure with negative 5.05% growth on YOY basis reported as on June 30,2019 due to overall sluggish economy. Business of Home Appliances with Imported inputs remained challenging due to massive Pak Rupee depreciation, besides the margin cuts, country market contraction observed as a result of masses reduced buying power backed by inationary trends. However, local value addition protected industry against a margin decline in proportion to exchange rate uctuation.

Refrigerators Production units declined by 24%, Air Conditioners 1% while Deep Freezers and TV Sets increased by 39.6% and 3.3% respectively -Source: LSMI Quantum Index (Pakistan Bureaus of Statistics).

Power Division Business also remained subdued due to overall economic slowdown. As a result of slashed development budgets, an overall sluggishness in Private Industries, consumption of Power Division Products also went on decline. Transformers units production remained slow by 25%, Electricity Meters by 6% and Switchgears by 56%. -Source: LSMI Quantum Index (Pakistan Bureaus of Statistics). Increased input costs due to massive Pak Rupee depreciation and rise in energy costs could not fully translated as margin adjustment due to local value addition.

Company Financial Performance

During the period, Company revenues are registered at Rs. 30,305 Million with a mild decline of 1.96% as compared with Rs.30,912 Million of corresponding period of last year. The Gross Prot margin of the Company stands at Rs.5,342 Million against Rs.5,834 Million of the similar period of previous year. Protability also reduced to Rs. 870 Million against Rs. 1,332 Million of previous year. Earnings per share reduced to Rs. 1.68 against Rs. 2.61 of the last year corresponding period. Protability contraction is backed by challenging country macro-economic indicators. These testing macro-economic conditions have led to increase in input costs as a result of abrupt Pak Rupee depreciation, rise in petroleum products prices, mounting ination rate and sharp rise in policy rate. Home Appliances Division Sales showed a growth trend despite of challenging economic conditions and competitive environment; however, Power Division registered a decline in revenues due to timing of orders in take and performance from WAPDA Distribution Companies.

Mr. Asad Ullah Khawaja Chairman/MemberMr. Usman Shahid MemberSyed Manzar Hassan MemberSyed Haroon Rashid Member

AUDIT COMMITTEE


HR & REMUNERATION COMMITTEE

BANKERS

17- Aziz Avenue, Canal Bank,Gulberg-V, LahoreTel: 042-35718274-6, Fax: 042-35762707E-Mail: [email protected]

REGISTERED OFFICE KARACHI

Kohinoor Building 25-West Wharf Road,KarachiTel: 021-32200951-4Fax: 021-32310303

14-K.M. Ferozepur Road, LahoreTel: 042-35920151-9

WORKSTRANSFORMERFACILITY34-K.M. Ferozepur Road,Keath Village, LahoreTel: 042-35935151-2

ISLAMABAD

Room # 301, 3rd Floor,Green Trust Tower,Blue Area, IslamabadTel: 051-2824543, 2828941Fax: 051-2273858

CHINA

206, No. 1007, ZhongShan Naun Er Road,Shanghai, ChinaTel: 86-21-64567713Fax: 86-21-54109971

Muhammad Omer Farooq

COMPANY SECRETARY

Syed Manzar Hassan, FCA

CHIEF FINANCIAL OFFICER

AUDITORS

M/s Hassan & Hassan Advocates

LEGAL ADVISOR

Corplink (Pvt.) Limited Wings Arcade,1-K Commercial Model Town, Lahore.Tel: 042-35916714, 35839182,Fax: 042-35869037E-Mail: [email protected]

SHARE REGISTRAR

Mufti Zeeshan Abdul AzizS.M. Suhail & Co.Chartered Accountants

SHARIAH ADVISOR

BOARD OF DIRECTORS

0000802

COMPANY REG. NO.

2011386-2

NATIONAL TAX NO. (NTN)

Public Interest Company (PIC)

STATUS OF COMPANY

Albaraka Bank (Pakistan) LimitedAskari Bank Limited Bank Alfalah Limited The Bank of Khyber The Bank of PunjabSindh Bank LimitedFaysal Bank LimitedBank Islami (Pakistan) LimitedMCB Bank LimitedNational Bank of PakistanPak Brunei Investment Company LimitedPak Libya Holding Company (Private) LimitedPak Oman Investment Company LimitedSamba Bank LimitedSilk Bank LimitedSoneri Bank LimitedStandard Chartered Bank (Pakistan) LimitedSummit Bank LimitedSaudi Pak Industrial and Agriculture Investment Company LimitedUnited Bank Limited

02 Pak Elektron Limited 03Interim Financial Report | September 30, 2019

Rahman Sarfaraz Rahim Iqbal RaqChartered AccountantsA member of Russell Bedford International

Mr. M. Naseem Saigol Director/Chairman - Non ExecutiveMr. M. Murad Saigol Director/Chief Executive Ofcer/DTP CertiedMr. M. Zeid Yousuf Saigol Director - Executive/DTP CertiedSyed Manzar Hassan Director - Executive/DTP CertiedSyed Haroon Rashid Director - Independent/DTP CertiedMr. Asad Ullah Khawaja Director - NIT Nominee/Independent/DTP CertiedMr. M. Kamran Saleem Director - Independent/DTP Certied Mr. Usman Shahid Director - NBP Nominee U/S 164 of the Act/ Non ExecutiveMs. Azra Naila Shoaib Director - NBP Nominee U/S 164 of the Act/ Non Executive

Directors’ ReviewCorporate Information

Your directors are pleased to present the un-audited interim nancial information of the Company for the nine months period ended September 30, 2019.

The Economy

The macro economic challenges persist within the overall economy. In light of the deteriorating twin decits, corrective scal and monetary policy measures are being taken. The overall economic slowdown, along with specic import compression measures, led to a substantial contraction in the country's import bill which declined by 23% 2MFY'20 vs 2MFY'19. The country's exports for the two months of 2MFY'20 were recorded at USD 4.1 billion, posting a muted growth of 1.4% compared to 2MFY'19, while worker's remittances were recorded at USD 3.7 billion for 2MFY'20, declining by 8% over the corresponding period last year. However, the sizeable reduction in imports led to the Current Account Decit (CAD) reducing by 55%, closing 2MFY'20 at USD 1.3 billion (2MFY'19: USD 2.9 billion).

The country's FX reserves closed at USD 15.0 billion at Sep'19, up 9% over Dec'18, while the reserves position stood at USD 13.8 billion. The widening trade decit exerted pressures on the exchange rate for much of the year. This resulted in the PKR declining by 12.6% in value to the USD, closing at Rs. 156.37 / USD at Sep'19 (Dec'18: Rs. 138.86 / USD). The PKR devaluation, coupled with increase in power tariffs to meet revenue targets, added inationary pressures as the CPI averaged 9.2% during 8M'19, almost double the 4.5% level recorded during the corresponding period of last year. SBP in its monetary policy statement on 16th September 2019, maintained the policy rate at 13.25%.

Industry Overview

Large Scale Manufacturing Industries –LSMI sector remained in pressure with negative 5.05% growth on YOY basis reported as on June 30,2019 due to overall sluggish economy. Business of Home Appliances with Imported inputs remained challenging due to massive Pak Rupee depreciation, besides the margin cuts, country market contraction observed as a result of masses reduced buying power backed by inationary trends. However, local value addition protected industry against a margin decline in proportion to exchange rate uctuation.

Refrigerators Production units declined by 24%, Air Conditioners 1% while Deep Freezers and TV Sets increased by 39.6% and 3.3% respectively -Source: LSMI Quantum Index (Pakistan Bureaus of Statistics).

Power Division Business also remained subdued due to overall economic slowdown. As a result of slashed development budgets, an overall sluggishness in Private Industries, consumption of Power Division Products also went on decline. Transformers units production remained slow by 25%, Electricity Meters by 6% and Switchgears by 56%. -Source: LSMI Quantum Index (Pakistan Bureaus of Statistics). Increased input costs due to massive Pak Rupee depreciation and rise in energy costs could not fully translated as margin adjustment due to local value addition.

Company Financial Performance

During the period, Company revenues are registered at Rs. 30,305 Million with a mild decline of 1.96% as compared with Rs.30,912 Million of corresponding period of last year. The Gross Prot margin of the Company stands at Rs.5,342 Million against Rs.5,834 Million of the similar period of previous year. Protability also reduced to Rs. 870 Million against Rs. 1,332 Million of previous year. Earnings per share reduced to Rs. 1.68 against Rs. 2.61 of the last year corresponding period. Protability contraction is backed by challenging country macro-economic indicators. These testing macro-economic conditions have led to increase in input costs as a result of abrupt Pak Rupee depreciation, rise in petroleum products prices, mounting ination rate and sharp rise in policy rate. Home Appliances Division Sales showed a growth trend despite of challenging economic conditions and competitive environment; however, Power Division registered a decline in revenues due to timing of orders in take and performance from WAPDA Distribution Companies.


AUDIT COMMITTEE


HR & REMUNERATION COMMITTEE

BANKERS

17- Aziz Avenue, Canal Bank,Gulberg-V, LahoreTel: 042-35718274-6, Fax: 042-35762707E-Mail: [email protected]

REGISTERED OFFICE KARACHI

Kohinoor Building 25-West Wharf Road,KarachiTel: 021-32200951-4Fax: 021-32310303

14-K.M. Ferozepur Road, LahoreTel: 042-35920151-9

WORKSTRANSFORMERFACILITY34-K.M. Ferozepur Road,Keath Village, LahoreTel: 042-35935151-2

ISLAMABAD

Room # 301, 3rd Floor,Green Trust Tower,Blue Area, IslamabadTel: 051-2824543, 2828941Fax: 051-2273858

CHINA

206, No. 1007, ZhongShan Naun Er Road,Shanghai, ChinaTel: 86-21-64567713Fax: 86-21-54109971

Muhammad Omer Farooq

COMPANY SECRETARY

Syed Manzar Hassan, FCA

CHIEF FINANCIAL OFFICER

AUDITORS

M/s Hassan & Hassan Advocates

LEGAL ADVISOR

Corplink (Pvt.) Limited Wings Arcade,1-K Commercial Model Town, Lahore.Tel: 042-35916714, 35839182,Fax: 042-35869037E-Mail: [email protected]

SHARE REGISTRAR

Mufti Zeeshan Abdul AzizS.M. Suhail & Co.Chartered Accountants

SHARIAH ADVISOR

BOARD OF DIRECTORS

0000802

COMPANY REG. NO.

2011386-2

NATIONAL TAX NO. (NTN)

Public Interest Company (PIC)

STATUS OF COMPANY

Albaraka Bank (Pakistan) LimitedAskari Bank Limited Bank Alfalah Limited The Bank of Khyber The Bank of PunjabSindh Bank LimitedFaysal Bank LimitedBank Islami (Pakistan) LimitedMCB Bank LimitedNational Bank of PakistanPak Brunei Investment Company LimitedPak Libya Holding Company (Private) LimitedPak Oman Investment Company LimitedSamba Bank LimitedSilk Bank LimitedSoneri Bank LimitedStandard Chartered Bank (Pakistan) LimitedSummit Bank LimitedSaudi Pak Industrial and Agriculture Investment Company LimitedUnited Bank Limited


Rahman Sarfaraz Rahim Iqbal RaqChartered AccountantsA member of Russell Bedford International

M. Murad SaigolChief Executive Officer

On behalf of the Board of Directors

LahoreOctober 30, 2019

04 Pak Elektron Limited 05

Future Outlook

IMF has restored condence in the potential of country economy. It has set its future direction and foresees a stable economy by the completion of Program. Substantial improvement in both Fiscal & Trade decits in follow up of IMF Program gives a positive future outlook. The incumbent Government aligned with its manifesto is determined to improve human index development and per capita income. As a result, there will be increase in demand of electrical home appliances and your company is well positioned to grasp the opportunity. On the other hand there is a dire need for augmentation of Electricity T&D infrastructure and your company has been part of Government's efforts by supplying its quality electrical equipments. Further development of Prioritized Special Economic Zones- SEZs is likely to be started in future years will create demand of Power Division Products.

Under the current economic conditions, the Company's EPC Department is consolidating it's business and concentrating on projects with better margins and least funds deployment for the proven products we have performed in the past. Your directors are optimistic that with these future expected developments, the Company will certainly take advantage of it by supplying quality products.

Acknowledgement

We take this opportunity to thank all our stakeholders for their patronage and look forward to their continued support.

Interim Financial Report | September 30, 2019

Revenue

Gross Profit

Finance Cost

Profit before taxation

Profit after taxation

Earnings per share - Rupees

Rupees in millionNine Months endedSeptember 30, 2019

Nine Months endedSeptember 30, 2018

Increase/(Decrease)

30,305

5,342

1,902

997

870

1.68

30,912

5,834

1,610

1,499

1,332

2.61

(607)

(492)

292

(502)

(462)

Directors’ Review

Summary of operating results is presented below:

Appliances Division

Appliance Division revenues during the period achieved Rs. 23.948 billion which is higher by 3.02 % against Rs.23.246 billion of the corresponding period for last year, despite of prevailing economic adversities. Increase in Air conditioners and LED TVs Sales contributed towards increase in revenue. However, product margin declined due to abrupt currency depreciation, rise in input costs and increase in policy rate. The effective working capital management during the period also helped the company to reduce its debt burden and diluted the effect of rising nancial costs of the company.

Company strongly believes in high value consumer's “ROX-Return on Experience”. Ongoing R&D function enables to attain “Market Competitiveness” through aesthetically improved and cost effective product designs. During the period under review, Company launched energy efcient Refrigerator wide body “Life Series”, with extended space, improved aesthetics and cost effective product design. These energy efcient & cost effective refrigerators are well received in market. New Air conditioners energy efcient “High End Series” super silver & super mate with SEER (Seasonal Energy Efciency Ratio) and improved aesthetics remained market preferred choice. Deep Freezer “Arctic Crystal Glass Door Series” also received a warm market response.

Company LED TVs production line started production in 2nd half of the previous year, has a valuable contribution towards home appliances division revenue during the period under review. On persistent market demand company has also set up a washing machine manufacturing facility, after successful trial run production has been started and a formal market launching is on way.

Country home appliances market is likely to grow at its natural pace, as uncertainty is expected to settle down after IMF extended funded facility. Company Management will continue with its proven corporate, operational and marketing philosophy to cope-up with stakeholders' expectations.

Power Division

Power Division Business registered a decline @ 17% i.e. Rs. 6.356 Billion against Rs. 7.665 Billion of the last year corresponding period, due to an overall slow and slash in development budgets by Government. During the period under review pace of ordering from WAPDA distribution companies remained slow and lower demand also observed in private business backed by a reverse LSMI growth. With the award of IMF extended funded facility and onwards improvement in both, trade & scal decits, faith of global lenders in country economy is likely to be restored. In the changed scenario that pace of ordering from WAPDA Discos will be normalized and PEL being leading electrical equipment manufacturer with strong performance history will attain its due market share.

Company has a healthy order book and expects to meet its business plan in the remaining part of the year. During the period under review successful “short circuit testing” of power transformers is completed, will enable company to supply its orders in hand.

“Construction of 5 Million Houses” announced by Government in their manifesto can be a breakthrough for related local Industry including electrical equipment manufacturing companies and company will certainly attain its due market share. PEL EPC department with a well versed over a decade market presence and having exposure of underground and on ground housing electrication can contribute in big-time.

M. Murad SaigolChief Executive Officer

On behalf of the Board of Directors

LahoreOctober 30, 2019


Future Outlook

IMF has restored condence in the potential of country economy. It has set its future direction and foresees a stable economy by the completion of Program. Substantial improvement in both Fiscal & Trade decits in follow up of IMF Program gives a positive future outlook. The incumbent Government aligned with its manifesto is determined to improve human index development and per capita income. As a result, there will be increase in demand of electrical home appliances and your company is well positioned to grasp the opportunity. On the other hand there is a dire need for augmentation of Electricity T&D infrastructure and your company has been part of Government's efforts by supplying its quality electrical equipments. Further development of Prioritized Special Economic Zones- SEZs is likely to be started in future years will create demand of Power Division Products.

Under the current economic conditions, the Company's EPC Department is consolidating it's business and concentrating on projects with better margins and least funds deployment for the proven products we have performed in the past. Your directors are optimistic that with these future expected developments, the Company will certainly take advantage of it by supplying quality products.

Acknowledgement

We take this opportunity to thank all our stakeholders for their patronage and look forward to their continued support.


Revenue

Gross Profit

Finance Cost

Profit before taxation

Profit after taxation


Rupees in millionNine Months endedSeptember 30, 2019

Nine Months endedSeptember 30, 2018

Increase/(Decrease)

30,305

5,342

1,902

997

870

1.68

30,912

5,834

1,610

1,499

1,332

2.61

(607)

(492)

292

(502)

(462)

Directors’ Review

Summary of operating results is presented below:

Appliances Division

Appliance Division revenues during the period achieved Rs. 23.948 billion which is higher by 3.02 % against Rs.23.246 billion of the corresponding period for last year, despite of prevailing economic adversities. Increase in Air conditioners and LED TVs Sales contributed towards increase in revenue. However, product margin declined due to abrupt currency depreciation, rise in input costs and increase in policy rate. The effective working capital management during the period also helped the company to reduce its debt burden and diluted the effect of rising nancial costs of the company.

Company strongly believes in high value consumer's “ROX-Return on Experience”. Ongoing R&D function enables to attain “Market Competitiveness” through aesthetically improved and cost effective product designs. During the period under review, Company launched energy efcient Refrigerator wide body “Life Series”, with extended space, improved aesthetics and cost effective product design. These energy efcient & cost effective refrigerators are well received in market. New Air conditioners energy efcient “High End Series” super silver & super mate with SEER (Seasonal Energy Efciency Ratio) and improved aesthetics remained market preferred choice. Deep Freezer “Arctic Crystal Glass Door Series” also received a warm market response.

Company LED TVs production line started production in 2nd half of the previous year, has a valuable contribution towards home appliances division revenue during the period under review. On persistent market demand company has also set up a washing machine manufacturing facility, after successful trial run production has been started and a formal market launching is on way.

Country home appliances market is likely to grow at its natural pace, as uncertainty is expected to settle down after IMF extended funded facility. Company Management will continue with its proven corporate, operational and marketing philosophy to cope-up with stakeholders' expectations.

Power Division

Power Division Business registered a decline @ 17% i.e. Rs. 6.356 Billion against Rs. 7.665 Billion of the last year corresponding period, due to an overall slow and slash in development budgets by Government. During the period under review pace of ordering from WAPDA distribution companies remained slow and lower demand also observed in private business backed by a reverse LSMI growth. With the award of IMF extended funded facility and onwards improvement in both, trade & scal decits, faith of global lenders in country economy is likely to be restored. In the changed scenario that pace of ordering from WAPDA Discos will be normalized and PEL being leading electrical equipment manufacturer with strong performance history will attain its due market share.

Company has a healthy order book and expects to meet its business plan in the remaining part of the year. During the period under review successful “short circuit testing” of power transformers is completed, will enable company to supply its orders in hand.

“Construction of 5 Million Houses” announced by Government in their manifesto can be a breakthrough for related local Industry including electrical equipment manufacturing companies and company will certainly attain its due market share. PEL EPC department with a well versed over a decade market presence and having exposure of underground and on ground housing electrication can contribute in big-time.

(607)

(492)

292

(502)

(462)


30,305

5,342

1,902

997

870

1.68

30,912

5,834

1,610

1,499

1,332

2.61

(607)

(492)

292

(502)

(462)


30,305

5,342

1,902

997

870

1.68

30,912

5,834

1,610

1,499

1,332

2.61

Condensed InterimConsolidated Financial Information

08 Pak Elektron Limited

Condensed InterimConsolidated Financial Information


M. MURAD SAIGOLChief Executive Officer

M. ZEID YOUSUF SAIGOLDirector

SYED MANZAR HASSANChief Financial Officer

11Interim Financial Report | September 30, 2019

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized Capital 4 6,000,000

Issued, subscribed and paid up capital 5 5,426,392

Reserves 4,279,947

Unappropriated prot 15,075,804

Surplus on revaluation 6,367,736

31,149,880

NON-CURRENT LIABILITIES

Redeemable Capital 6 - Long-term nancing 7 2,672,017

Liabilities against assets subject to nance lease 8 130,899

Deferred taxation 3,084,226

Deferred income 35,402

CURRENT LIABILITIES

Trade and other payables 895,927

Dividend payable 15,956

Accrued interest / mark-up 507,752

Short-term borrowings 9 9,882,231

Current Portion of Non Current Liabilities 2,225,078

13,526,944

Contingencies and Commitments 10 -

50,599,368

The annexed notes 1 to 19 form an integral part of these interim consolidated nancial statements.

6,000,000

5,426,392

4,279,947

13,994,307

6,579,049

30,279,695

-

2,646,032

59,778

3,087,822

36,781

922,850

18,650

390,172

12,843,848

1,814,311

15,989,831

-

52,099,939

Condensed InterimConsolidated Statement of Financial PositionAS AT SEPTEMBER 30, 2019


September 302019

Note

Rupees '000'

December 312018

Rupees '000'

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment 11 22,338,602 21,738,700

Right -of-use assets 244,117 218,315

Intangible assets 309,010

313,352

22,891,729

22,270,367

Long-term investments 12 3,494

6,985

Long term advances and deposits 1,640,943

1,475,051

CURRENT ASSETS

Stores, spare parts and loose tools 827,831

859,145

Stock-in-trade 7,984,159

10,786,157

Trade debts 8,905,798

10,181,739

Due against construction work in progress 1,784,400

1,535,735

Short term advances 1,078,923

1,039,505

Short term deposits and prepayments 1,739,143 1,105,179

Other receivables 414,847 360,962

Short term investments 21,403 22,071

Advance income tax 2,785,192 1,985,785

Cash and bank balances 521,506 471,258

26,063,202 28,347,536

50,599,368 52,099,939

- -

September 302019

Note

Rupees '000'

December 312018

Rupees '000'







Authorized Capital 4 6,000,000

Issued, subscribed and paid up capital 5 5,426,392

Reserves 4,279,947


Surplus on revaluation 6,367,736

31,149,880


Redeemable Capital 6 - Long-term nancing 7 2,672,017




CURRENT LIABILITIES


Dividend payable 15,956

Accrued interest / mark-up 507,752

Short-term borrowings 9 9,882,231

Current Portion of Non Current Liabilities 2,225,078

13,526,944

Contingencies and Commitments 10 -

50,599,368


6,000,000

5,426,392

4,279,947

13,994,307

6,579,049

30,279,695

-

2,646,032

59,778

3,087,822

36,781

922,850

18,650

390,172

12,843,848

1,814,311

15,989,831

-

52,099,939

Condensed InterimConsolidated Statement of Financial PositionAS AT SEPTEMBER 30, 2019


September 302019

Note

Rupees '000'

December 312018

Rupees '000'

ASSETS

NON-CURRENT ASSETS


Right -of-use assets 244,117 218,315


313,352

22,891,729

22,270,367


6,985

Long term advances and deposits 1,640,943

1,475,051

CURRENT ASSETS


859,145


10,786,157


10,181,739


1,535,735

Short term advances 1,078,923

1,039,505

Short term deposits and prepayments 1,739,143 1,105,179





26,063,202 28,347,536

50,599,368 52,099,939

- -

September 302019

Note

Rupees '000'

December 312018

Rupees '000'

Condensed InterimConsolidated Statement of Cash Flows





Condensed InterimConsolidated Statement of Profit or Loss and other Comprehensive Income





FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2019 (Un-Audited) FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2019 (Un-Audited)

Gross Sales

Discount / incentive

Sales tax

Sales Tax and discount

Net Sales

Cost of Sales

Gross Prot

Other Operating Income

Distribution Cost

Administrative Cost

Other Operating Expenses

Finance Cost

Share of prot/(loss) of associate

Prot Before Tax

Provision for Taxation

Prot after tax


Basic & diluted


September 30 September 30

2019 2018

Note

13 30,304,468 30,911,655 7,227,658 8,407,425

4,405,705 4,213,582 388,329 450,493

3,287,184 2,977,029 1,030,254 935,687

7,692,889 7,190,611 1,418,583

1,386,180

22,611,579 23,721,044 5,809,075

7,021,245

14 17,270,016 17,887,068

4,505,755

5,433,634

5,341,563 5,833,976 1,303,320 1,587,611

21,327

13,256

1,443

4,198

5,362,890

5,847,232

1,304,763

1,591,809

1,394,876

1,739,743

342,816

595,374

1,020,518

932,813

339,426

304,836

49,632 65,113 14,942

9,413

1,901,708 1,609,554 536,162

578,180

524 (1,095) (1,042) 646

996,679 1,498,914 70,374 104,652

126,494 166,662 9,222 (12,290)

870,185 1,332,252 61,152 116,942

15 1.68 2.61 0.10 0.21

Nine months ended Quarter ended

Rupees '000'Rupees '000'

September 30

2019

Rupees '000'

September 30

2018

Rupees '000'

996,679 1,498,914

1,987,120 2,244,898

2,983,799 3,743,812


2019 2018

3,106,398

(3,472,897)

6,090,198

270,915

(1,599,460)

(1,287,404)

(479,492)

(487,397)

(2,078,952)

(1,774,801)

4,011,246 (1,503,886)

(1,350,938)

(1,807,693)

(3,802)

-

16,072

25,531

(165,892)

(199,961)

(1,504,560)

(1,982,123)

2,880,871

226,013

(2,388,604)

(1,141,249)

(101,875)

(193,750)

117,481

39,916

(2,694) (589,636)

(2,961,617) 5,206,834

(2,456,438) 3,548,128

50,248 62,119

471,258 484,194

521,506 546,313

Cash ows from operating activities

Prot before taxation

Adjustments for non cash and other items

Cash generated from operations before working capital changes

Working capital changes

Cash generated from operations

Finance cost paid

Income tax paid

Net cash used in operating activities

Cash ows from investing activities

Purchase of property, plant and equipment

Purchase of intangible assets

Proceeds from disposal of property, plant and equipment

(Increase) / decrease in long-term deposits and advances

Net cash used in investing activities

Cash ows from nancing activities

Long Term Finances obtained

Repayment of Long Term Finances

Redemption of Redeemable Capital

Increase/(Decrease) in liabilities against assets subject to nance lease

Dividend paid

Increase / (Decrease) in Short Term Borrowing

Net cash from nancing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at end of the period


Rupees '000' Rupees '000'

Condensed InterimConsolidated Statement of Cash Flows





Condensed InterimConsolidated Statement of Profit or Loss and other Comprehensive Income






Gross Sales

Discount / incentive

Sales tax


Net Sales

Cost of Sales

Gross Prot


Distribution Cost

Administrative Cost


Finance Cost

Share of prot/(loss) of associate

Prot Before Tax


Prot after tax


Basic & diluted



2019 2018

Note

13 30,304,468 30,911,655 7,227,658 8,407,425

4,405,705 4,213,582 388,329 450,493

3,287,184 2,977,029 1,030,254 935,687

7,692,889 7,190,611 1,418,583

1,386,180

22,611,579 23,721,044 5,809,075

7,021,245

14 17,270,016 17,887,068

4,505,755

5,433,634

5,341,563 5,833,976 1,303,320 1,587,611

21,327

13,256

1,443

4,198

5,362,890

5,847,232

1,304,763

1,591,809

1,394,876

1,739,743

342,816

595,374

1,020,518

932,813

339,426

304,836

49,632 65,113 14,942

9,413

1,901,708 1,609,554 536,162

578,180

524 (1,095) (1,042) 646

996,679 1,498,914 70,374 104,652

126,494 166,662 9,222 (12,290)

870,185 1,332,252 61,152 116,942

15 1.68 2.61 0.10 0.21



September 30

2019

Rupees '000'

September 30

2018

Rupees '000'

996,679 1,498,914

1,987,120 2,244,898

2,983,799 3,743,812


2019 2018

3,106,398

(3,472,897)

6,090,198

270,915

(1,599,460)

(1,287,404)

(479,492)

(487,397)

(2,078,952)

(1,774,801)

4,011,246 (1,503,886)

(1,350,938)

(1,807,693)

(3,802)

-

16,072

25,531

(165,892)

(199,961)

(1,504,560)

(1,982,123)

2,880,871

226,013

(2,388,604)

(1,141,249)

(101,875)

(193,750)

117,481

39,916

(2,694) (589,636)

(2,961,617) 5,206,834

(2,456,438) 3,548,128

50,248 62,119

471,258 484,194

521,506 546,313



Adjustments for non cash and other items




Finance cost paid

Income tax paid






(Increase) / decrease in long-term deposits and advances





Redemption of Redeemable Capital

Increase/(Decrease) in liabilities against assets subject to nance lease

Dividend paid








1 REPORTING ENTITY

The group comprises of the following companies

Parent Company

Pak Elektron Limited ("PEL" or "the Company") was incorporated in Pakistan on March 03, 1956 as a public limited company under the Companies Act, 1913 (replaced by the Companies Ordinance, 1984). Registered office of the Company is situated at 17 - Aziz Avenue, Canal Bank, Gulberg - V, Lahore. PEL is currently listed on Pakistan Stock Exchange. The principal activity of PEL is manufacturing and sale of electrical capital goods and domestic appliances.

PEL is currently organized into two main operating divisions - Power Division & Appliances Division. PEL's activities are as follows:

Power Division: manufacturing and distribution of transformers, switchgears, energy meters, power transformers, construction of grid stations and equipment procurement and construction (EPC).

Appliances Division: manufacturing, assembling and distribution of refrigerators, air conditioners, deep freezers, microwave ovens, water dispensers, TV and other home appliances.

Subsidiary Company

PEL marketing ( Private ) Limited ( PMPL) was incorporated in Pakistan on August 11, 2011 as a private limited company under the companies ordinance 1984. Registered office of PMPL is situated at 17 Aziz Avenue, canal bank Gulberg V, Lahore. The principal activity of PMPL is sale of electrical capital goods and domestic appliances . PMPL is wholly owned subsidiary of PEL.

2 BASIS OF PREPARATION

This interim consolidated financial information is not audited and has been presented in condensed form and does not include all the information and disclosures as are required to be provided or made in a full set of annual financial statements. This condensed interim consolidated financial information should be read in conjunction with the audited financial statements of the Group for the year ended December 31, 2018.

The comparative interim consolidated balance sheet as at December 31, 2018 and the related notes to the condensed interim consolidated financial information are based on audited financial statements. The comparative interim consolidated profit and loss account/statement of comprehensive income, interim consolidated cash flow statement, interim consolidated statement of changes in equity and related notes to the condensed interim consolidated financial information for the nine months ended September 30, 2018 are based on unaudited interim financial information.

2.1 Statement of compliance

These condensed interim consolidated financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting comprises of:

International Accounting Standard 34- Interim Financial Reporting, issued by International Accounting Standards Board (IASB) as notified under the companies Act, 2017 and

Provisions of and directives issued under the Companies Act , 2017.

15

Notes to the Condensed Interim Consolidated Financial Statements


Condensed InterimConsolidated Statement Of Changes In Equity






Issued, subscribed

and paid up capital Share premium

Revenue Reserves

Balance as at January 1, 2018 5,426,392 4,279,947 4,274,019 13,020,232 27,000,590

Total comprehensive income for the period - - 1,332,252 1,332,252

Incremental depreciation -

-

(148,000) 148,000 -

Final Dividend on Ordinary Shares @ Rs 1.20 Per share (597,218) (597,218)

Balance as at September 30, 2018 5,426,392

4,279,947

4,126,019 13,903,266 27,735,624

Total comprehensive income for the period -

-

39,217 39,217


-

(51,824) 51,824 -

Other comprehensive income 2,504,854 - 2,504,854

Balance as at December 31, 2018 5,426,392

4,279,947

6,579,049 13,994,307 30,279,695

Total comprehensive income for the period. - - 870,185 870,185

Incremental depreciation - - (211,313) 211,313 -

Final Dividend on Ordinary Shares @ Rs 1.20 Per share - -

Balance as at September 30, 2019 5,426,392 4,279,947 6,367,736 15,075,804 31,149,880


Rupees '000'Rupees '000'Rupees '000'Rupees '000'Rupees '000'

Capital reserves

Total

Surplus on

Revaluation of

property, plant and

equipmentAccumulated

prot

1 REPORTING ENTITY

The group comprises of the following companies

Parent Company

Pak Elektron Limited ("PEL" or "the Company") was incorporated in Pakistan on March 03, 1956 as a public limited company under the Companies Act, 1913 (replaced by the Companies Ordinance, 1984). Registered office of the Company is situated at 17 - Aziz Avenue, Canal Bank, Gulberg - V, Lahore. PEL is currently listed on Pakistan Stock Exchange. The principal activity of PEL is manufacturing and sale of electrical capital goods and domestic appliances.

PEL is currently organized into two main operating divisions - Power Division & Appliances Division. PEL's activities are as follows:

Power Division: manufacturing and distribution of transformers, switchgears, energy meters, power transformers, construction of grid stations and equipment procurement and construction (EPC).

Appliances Division: manufacturing, assembling and distribution of refrigerators, air conditioners, deep freezers, microwave ovens, water dispensers, TV and other home appliances.

Subsidiary Company

PEL marketing ( Private ) Limited ( PMPL) was incorporated in Pakistan on August 11, 2011 as a private limited company under the companies ordinance 1984. Registered office of PMPL is situated at 17 Aziz Avenue, canal bank Gulberg V, Lahore. The principal activity of PMPL is sale of electrical capital goods and domestic appliances . PMPL is wholly owned subsidiary of PEL.


This interim consolidated financial information is not audited and has been presented in condensed form and does not include all the information and disclosures as are required to be provided or made in a full set of annual financial statements. This condensed interim consolidated financial information should be read in conjunction with the audited financial statements of the Group for the year ended December 31, 2018.

The comparative interim consolidated balance sheet as at December 31, 2018 and the related notes to the condensed interim consolidated financial information are based on audited financial statements. The comparative interim consolidated profit and loss account/statement of comprehensive income, interim consolidated cash flow statement, interim consolidated statement of changes in equity and related notes to the condensed interim consolidated financial information for the nine months ended September 30, 2018 are based on unaudited interim financial information.


These condensed interim consolidated financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting comprises of:



15

Notes to the Condensed Interim Consolidated Financial Statements


Condensed InterimConsolidated Statement Of Changes In Equity






Issued, subscribed

and paid up capital Share premium

Revenue Reserves

Balance as at January 1, 2018 5,426,392 4,279,947 4,274,019 13,020,232 27,000,590

Total comprehensive income for the period - - 1,332,252 1,332,252


-

(148,000) 148,000 -

Final Dividend on Ordinary Shares @ Rs 1.20 Per share (597,218) (597,218)

Balance as at September 30, 2018 5,426,392

4,279,947

4,126,019 13,903,266 27,735,624

Total comprehensive income for the period -

-

39,217 39,217


-

(51,824) 51,824 -

Other comprehensive income 2,504,854 - 2,504,854

Balance as at December 31, 2018 5,426,392

4,279,947

6,579,049 13,994,307 30,279,695

Total comprehensive income for the period. - - 870,185 870,185

Incremental depreciation - - (211,313) 211,313 -

Final Dividend on Ordinary Shares @ Rs 1.20 Per share - -

Balance as at September 30, 2019 5,426,392 4,279,947 6,367,736 15,075,804 31,149,880



Capital reserves

Total

Surplus on

Revaluation of

property, plant and

equipmentAccumulated

prot

17Interim Financial Report | September 30, 201916 Pak Elektron Limited

2.2 Basis of measurement

This condensed interim consolidated financial information has been prepared under the historical cost convention except for property, plant and equipment at revalued amounts and certain financial instruments at fair value/amortized cost. In this financial information, except for the amounts reflected in the statement of cash flows, all transactions have been accounted for on accrual basis.

2.3 Judgments, estimates and assumptions

The preparation of interim consolidated financial statements requires management to make judgements , estimates and assumptions that affect the application of accounting policies and the imported amounts of assets liabilities, income and expenses. The estimates and associated assumptions and judgements are based on historical experience and various other factors that are belived to be reasonable under the circumstances, the result of which forms the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from the resources. Actual results may differ from these estimates.

Estimates and under lying assumptions are reviewed on an on going basis. Reasons to accounting estimates are recognized in the period in which the estimates is revised and in any future periods affective.

2.3 Functional currency

This financial information is prepared in Pak Rupees which is the Group's functional currency.

3 ACCOUNTING POLICIES AND METHODS OF COMPUTATION

The accounting policies and the methods of computation adopted in the preparation of this condensed interim financial information are the same as those applied in the preparation of the financial statements for the year ended December 31, 2018.

4 AUTHORIZED CAPITAL

(Un-Audited) (Audited)

September 30 December 31

2019 2018

500,000,000

500,000,000

Ordinary shares of Rs. 10 each 5,000,000

5,000,000

Preference shares of Rs. 10 each:

62,500,000

62,500,000

Class A preference shares of Rs 10 each 625,000

625,000

37,500,000

37,500,000

Class B preference shares of Rs 10 each 375,000

375,000

100,000,000

100,000,000

1,000,000

1,000,000

600,000,000 600,000,000 6,000,000 6,000,000

No. of Shares No. of Shares


2019 2018

Rupees ‘000’ Rupees ‘000’

5 ISSUED, SUBSCRIBED AND PAID UP CAPITAL

372,751,051

372,751,051

- In cash 3,727,511

3,727,511

Other than cash:

137,500

137,500

'-against machinery 1,375

1,375

408,273

408,273

4,083

4,083

6,040,820

6,040,820

60,408

60,408

118,343,841

118,343,841

-Issued as bonus shares 1,183,439

1,183,439

497,681,485

497,681,485

4,976,816

4,976,816

44,957,592 44,957,592 Issued for cash 449,576 449,576

542,639,077 542,639,077 5,426,392 5,426,392

Ordinary shares of Rs.10 each fully paid:

-issued on acquisition of PEL Appliances

Limited

-issued against conversion of preference

shares


September 30 December 31 September 30 December 31

2019 2018 2019 2018

No. of Shares Rupees ‘000’No. of Shares Rupees ‘000’

A class preference shares of Rs 10 each

5.1 Reconciliation of number of ordinary shares of Rs. 10 each:

At beginning of the year

Add: - Issued during the year

At the end of the year

6

Current Maturity

As at end of the period / Year

REDEEMABLE CAPITAL

Shariah nancing:

As at beginning of the period/ year

Issued during the period

Paid during the year

497,681,485 497,681,485

- -

497,681,485 497,681,485

- -

- 101,875

101,875 376,875

- -

101,875 275,000

September 30 December 312019 2018





2.3 Judgments, estimates and assumptions

The preparation of interim consolidated financial statements requires management to make judgements , estimates and assumptions that affect the application of accounting policies and the imported amounts of assets liabilities, income and expenses. The estimates and associated assumptions and judgements are based on historical experience and various other factors that are belived to be reasonable under the circumstances, the result of which forms the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from the resources. Actual results may differ from these estimates.

Estimates and under lying assumptions are reviewed on an on going basis. Reasons to accounting estimates are recognized in the period in which the estimates is revised and in any future periods affective.



3 ACCOUNTING POLICIES AND METHODS OF COMPUTATION





2019 2018

500,000,000

500,000,000


5,000,000


62,500,000

62,500,000


625,000

37,500,000

37,500,000


375,000

100,000,000

100,000,000

1,000,000

1,000,000

600,000,000 600,000,000 6,000,000 6,000,000



2019 2018



372,751,051

372,751,051

- In cash 3,727,511

3,727,511

Other than cash:

137,500

137,500


1,375

408,273

408,273

4,083

4,083

6,040,820

6,040,820

60,408

60,408

118,343,841

118,343,841


1,183,439

497,681,485

497,681,485

4,976,816

4,976,816

44,957,592 44,957,592 Issued for cash 449,576 449,576

542,639,077 542,639,077 5,426,392 5,426,392



Limited


shares



2019 2018 2019 2018



5.1 Reconciliation of number of ordinary shares of Rs. 10 each:

At beginning of the year

Add: - Issued during the year

At the end of the year

6

Current Maturity


REDEEMABLE CAPITAL

Shariah nancing:




497,681,485 497,681,485

- -

497,681,485 497,681,485

- -

- 101,875

101,875 376,875

- -

101,875 275,000




8

219,849 102,368

LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE

Present value of minimum lease payments

Current maturity 88,950 42,590

130,899 59,778




9 SHORT TERM BORROWING

These facilities have been obtained from various banks under mark-up arrangements for working capital requirements. These facilities are secured against the pledge/hypothecation of raw material and components, work-in-process, finished goods, machinery, spare parts, charge over book debts, shares of public companies and other assets of the company.

10 CONTINGENCIES AND COMMITMENTS

There is no material changes in contingencies and commitments as disclosed in the notes to the financial statements for the year ended December 31, 2018.

7 LONG-TERM FINANCING - SECURED

Shriah

Non Shariah

Obtained during the period / year

Shriah

Non Shariah

Paid / settled during the period / year

Shriah

Non Shariah

Current portion

Shriah

Non Shariah

As at beginning of the period/ year:

750,000 523,987

3,565,878

5,108,691

4,315,878

5,632,678

2,000,000

226,013

880,871

-

2,880,871

226,013

1,053,571 -

1,335,033 1,542,813

2,388,604 1,542,813

414,286 107,142

1,721,842 1,562,704

2,136,128 1,669,846

2,672,017 2,646,032As at end of the period / Year

11

11.1

11.2

11.1.1

PROPERTY, PLANT AND EQUIPMENT

Operating assets

Operating assets

Right-of-use Assets

Written down value of the assets disposed off / adjustments

Depreciation charged during the period / year

Additions during the period / year

Land

Building

Plant and machinery

Ofce equipment and furniture

Computer hardware and allied items

Vehicles

11.1 18,054,393 18,560,480

Right-of-use assets 11.2 244,117 218,315

Capital work-in-progress 4,284,209 3,178,220

22,582,719 21,957,015

14,235 148,686

697,983 822,134

482,768

-

-

704,818

109,418 2,249,419

7,644

35,208

19,260

11,918

10,535

18,583

146,857 3,502,714


Rupees ‘000’ Rupees ‘000’Note

Written down value at beginning of the period / year

Reclassication during the period / year


18,560,480

59,274

15,976,532

52,054

11.1.1 146,857 3,502,714

18,766,611 19,531,300

18,054,393 18,560,480




218,315

(59,274)

162,754

(52,054)

98,092 126,382

244,117 218,315

Depreciation charged during the period / year (13,016) (18,767)

22,338,602 21,738,700


8

219,849 102,368



Current maturity 88,950 42,590

130,899 59,778




9 SHORT TERM BORROWING





Shriah

Non Shariah


Shriah

Non Shariah


Shriah

Non Shariah

Current portion

Shriah

Non Shariah


750,000 523,987

3,565,878

5,108,691

4,315,878

5,632,678

2,000,000

226,013

880,871

-

2,880,871

226,013

1,053,571 -

1,335,033 1,542,813

2,388,604 1,542,813

414,286 107,142

1,721,842 1,562,704

2,136,128 1,669,846


11

11.1

11.2

11.1.1

PROPERTY, PLANT AND EQUIPMENT

Operating assets

Operating assets

Right-of-use Assets

Written down value of the assets disposed off / adjustments

Depreciation charged during the period / year


Land

Building

Plant and machinery

Ofce equipment and furniture

Computer hardware and allied items

Vehicles

11.1 18,054,393 18,560,480

Right-of-use assets 11.2 244,117 218,315

Capital work-in-progress 4,284,209 3,178,220

22,582,719 21,957,015

14,235 148,686

697,983 822,134

482,768

-

-

704,818

109,418 2,249,419

7,644

35,208

19,260

11,918

10,535

18,583

146,857 3,502,714






18,560,480

59,274

15,976,532

52,054

11.1.1 146,857 3,502,714

18,766,611 19,531,300

18,054,393 18,560,480




218,315

(59,274)

162,754

(52,054)

98,092 126,382

244,117 218,315

Depreciation charged during the period / year (13,016) (18,767)

22,338,602 21,738,700


13 REVENUE

Contract revenue

Sales - local

Sales - export

Less: - sales tax and excise duty

- trade discounts

1,137,077 1,581,991 401,623 635,952

28,678,954 28,548,673 6,680,410 7,584,904

488,437 780,991 145,625 186,569

30,304,468 30,911,655 7,227,658 8,407,425

3,287,184 2,977,029 1,030,254 935,687

4,405,705

4,213,582

388,329

450,493

7,692,889

7,190,611

1,418,583

1,386,180

22,611,579 23,721,044

5,809,075

7,021,245

September 30September 30 September 30September 30

20192019 20182018


Rupees '000'Rupees '000' Rupees '000'Rupees '000'Un-audited

Basic Prot per share (Rupees) 1.68 2.61

15

Earnings

Less: dividend on preference shares

Number of shares

EARNINGS PER SHARE - BASIC AND DILUTED

Weighted average number of ordinary shares

870,185 1,332,252

32,032

32,032

838,152

1,300,220

497,681,485 497,681,485

497,681,485 497,681,485

(Number)


2019 2018


Basic and diluted Profit per share have been calculated through dividing Profit as stated above by weighted average number of ordinary shares.

12 LONG-TERM INVESTMENTS

Kohinoor Power Company Limited

Ownership interest 23.10 %

Cost of investment

2,910,600 shares

Share of post acquisition prot- net of dividend received

Less: provision for impairment in value of investment

Investment in associate at equity method - 3,494

6,985

3,494

6,985

54,701 54,701

(8,332) (8,856)

46,369 45,845

42,875 38,860

3,494 6,985

14 COST OF SALES

Raw material, labour and FOH

Work-in-process

-at beginning of period

-at end of period

Cost of goods manufactured

Finished goods


-at end of period

Contract cost

Cost of sales

16,180,805 18,300,718

3,841,407

287,869

758,928

848,453

1,497,872

1,230,930

(1,351,801) (1,315,471)

(1,351,801)

(1,315,471)

(592,873)

(467,018)

146,071

(84,541)

15,587,932 17,833,700

3,987,478 5,636,962

2,829,889 2,121,128 2,283,276 2,686,729

(2,102,040) (3,449,186) (2,102,041) (3,449,186)

727,849 (1,328,058) 181,235 (762,457)

16,315,781 16,505,642 4,168,713 4,874,505

954,235 1,381,426 337,042 559,129

17,270,016 17,887,068 4,505,755 5,433,634


20192019 20182018


Rupees '000'Rupees '000' Rupees '000'Rupees '000'




13 REVENUE

Contract revenue

Sales - local

Sales - export


- trade discounts

1,137,077 1,581,991 401,623 635,952

28,678,954 28,548,673 6,680,410 7,584,904

488,437 780,991 145,625 186,569

30,304,468 30,911,655 7,227,658 8,407,425

3,287,184 2,977,029 1,030,254 935,687

4,405,705

4,213,582

388,329

450,493

7,692,889

7,190,611

1,418,583

1,386,180

22,611,579 23,721,044

5,809,075

7,021,245


20192019 20182018


Rupees '000'Rupees '000' Rupees '000'Rupees '000'Un-audited

Basic Prot per share (Rupees) 1.68 2.61

15

Earnings

Less: dividend on preference shares

Number of shares


Weighted average number of ordinary shares

870,185 1,332,252

32,032

32,032

838,152

1,300,220

497,681,485 497,681,485

497,681,485 497,681,485

(Number)


2019 2018


Basic and diluted Profit per share have been calculated through dividing Profit as stated above by weighted average number of ordinary shares.

12 LONG-TERM INVESTMENTS



Cost of investment

2,910,600 shares

Share of post acquisition prot- net of dividend received


Investment in associate at equity method - 3,494

6,985

3,494

6,985

54,701 54,701

(8,332) (8,856)

46,369 45,845

42,875 38,860

3,494 6,985

14 COST OF SALES


Work-in-process


-at end of period


Finished goods


-at end of period

Contract cost

Cost of sales

16,180,805 18,300,718

3,841,407

287,869

758,928

848,453

1,497,872

1,230,930

(1,351,801) (1,315,471)

(1,351,801)

(1,315,471)

(592,873)

(467,018)

146,071

(84,541)

15,587,932 17,833,700

3,987,478 5,636,962

2,829,889 2,121,128 2,283,276 2,686,729

(2,102,040) (3,449,186) (2,102,041) (3,449,186)

727,849 (1,328,058) 181,235 (762,457)

16,315,781 16,505,642 4,168,713 4,874,505

954,235 1,381,426 337,042 559,129

17,270,016 17,887,068 4,505,755 5,433,634


20192019 20182018


Rupees '000'Rupees '000' Rupees '000'Rupees '000'







16.1 All transactions with related parties have been carried out on commercial terms and conditions.

17 RECOVERABLE AMOUNTS AND IMPAIRMENT

As at the reporting date recoverable amounts of all assets/cash generating units are equal to or exceeds there carrying amounts, unless stated otherwise in these interim consolidated financial statements.

18 DATE OF AUTHORIZATION FOR ISSUE

This condensed interim financial information has been approved by the Board of Directors of the Company and authorized for issue on October 30, 2019.

19 GENERAL

19.1 Figures have been rounded off to the nearest thousands.

19.2 Corresponding figures have been re-arranged where necessary to facilitate comparison.

19.3 There are no other significant activities since December 31, 2018 affecting the interim consolidated financial statements.

Condensed InterimFinancial Information

16 TRANSACTIONS WITH RELATED PARTIES

Related parties from the Group's perspective comprise associated companies, post employment benefit plans and key management personnel. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, and includes the Chief Executive and Directors of the Company.

Transactions with key management personnel are limited to payment of short term employee benefits only. The Group in the normal course of business carries out various transactions with other related parties and continues to have a policy whereby all such transactions are carried out on commercial terms and conditions which are equivalent to those prevailing in an arm's length transaction.

Details of transactions and balances with related parties is as follows:

Provident Fund Trust 59,568

56,075

38,534

37,166

1,200

1,200

Other related parties:

26,753 29,581

Relationship Nature of transaction

Contribution for the period

Key Management Personnel Short-term employee benets

Post employment benets

Associated companies Services acquired


2019 2018

Un-audited







17 RECOVERABLE AMOUNTS AND IMPAIRMENT

As at the reporting date recoverable amounts of all assets/cash generating units are equal to or exceeds there carrying amounts, unless stated otherwise in these interim consolidated financial statements.



19 GENERAL


19.2 Corresponding figures have been re-arranged where necessary to facilitate comparison.

19.3 There are no other significant activities since December 31, 2018 affecting the interim consolidated financial statements.

Condensed InterimFinancial Information


Related parties from the Group's perspective comprise associated companies, post employment benefit plans and key management personnel. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, and includes the Chief Executive and Directors of the Company.

Transactions with key management personnel are limited to payment of short term employee benefits only. The Group in the normal course of business carries out various transactions with other related parties and continues to have a policy whereby all such transactions are carried out on commercial terms and conditions which are equivalent to those prevailing in an arm's length transaction.


Provident Fund Trust 59,568

56,075

38,534

37,166

1,200

1,200

Other related parties:

26,753 29,581


Contribution for the period



Associated companies Services acquired


2019 2018

Un-audited


Condensed InterimStatement of Financial Position






Authorized Capital 4 6,000,000 6,000,000

Issued, subscribed and paid up capital 5 5,426,392 5,426,392

Reserves 4,279,947

4,279,947


6,884,031

Surplus on revaluation 6,367,736 6,579,049

23,470,677

23,169,419


Redeemable Capital 6 - -Long-term nancing 7 2,672,017

2,646,032


59,778


2,423,945


36,781

CURRENT LIABILITIES


823,850

Dividend Payable 15,956

18,650

Accrued interest/ mark up 507,752 390,172

Short-term borrowings 9 9,882,231 12,843,848

Current Portion of Non Current Liabilities 2,225,078 1,814,311

13,478,371 15,890,831

CONTIGENCIES AND COMMITMENTS 10 - -

42,207,087 44,226,786



25

AS AT SEPTEMBER 30, 2019

September 302019

Note

Rupees '000'

December 312018

Rupees '000'

September 302019

Note

Rupees '000'

December 312018

Rupees '000'

ASSETS

NON-CURRENT ASSETS


Right -of -use assets 244,117 218,315


313,352

22,891,729

22,270,367


7,085

Long-term deposits 367,405 365,957

CURRENT ASSETS


859,145


8,374,111


4,870,122


1,535,735

Advances 1,034,037

965,614

Trade deposits and short-term prepayments 1,739,143 1,105,179





18,944,360 21,583,377

42,207,087 44,226,786

- -


Condensed InterimStatement of Financial Position






Authorized Capital 4 6,000,000 6,000,000

Issued, subscribed and paid up capital 5 5,426,392 5,426,392

Reserves 4,279,947

4,279,947


6,884,031

Surplus on revaluation 6,367,736 6,579,049

23,470,677

23,169,419


Redeemable Capital 6 - -Long-term nancing 7 2,672,017

2,646,032


59,778


2,423,945


36,781

CURRENT LIABILITIES


823,850

Dividend Payable 15,956

18,650

Accrued interest/ mark up 507,752 390,172

Short-term borrowings 9 9,882,231 12,843,848

Current Portion of Non Current Liabilities 2,225,078 1,814,311

13,478,371 15,890,831

CONTIGENCIES AND COMMITMENTS 10 - -

42,207,087 44,226,786



25

AS AT SEPTEMBER 30, 2019

September 302019

Note

Rupees '000'

December 312018

Rupees '000'

September 302019

Note

Rupees '000'

December 312018

Rupees '000'

ASSETS

NON-CURRENT ASSETS


Right -of -use assets 244,117 218,315


313,352

22,891,729

22,270,367


7,085

Long-term deposits 367,405 365,957

CURRENT ASSETS


859,145


8,374,111


4,870,122


1,535,735

Advances 1,034,037

965,614

Trade deposits and short-term prepayments 1,739,143 1,105,179





18,944,360 21,583,377

42,207,087 44,226,786

- -


Condensed InterimStatement of Profit or Loss and other Comprehensive Income







Adjustments for non cash items




Finance cost paid

Income tax paid






(Increase) / decrease in long-term deposits





Redemption of Redeemable capital

Increase/ (Decrease) in liabilities against nance lease

Dividend paid






575,280

1,570,070

2,145,350

(2,699,262)

(553,912)

(607,277)

(575,926)

(1,183,203)

(1,737,115)

(1,807,693)

-

25,531

(4,016)

(1,786,178)

226,013

(1,141,249)

(193,750)

39,915

(589,636)

5,206,834

3,548,127

24,834

401,824

426,658


Condensed InterimStatement of Cash Flows




27

323,015

1,337,778

1,660,792

3,473,400

5,134,193

(944,691)

(428,817)

(1,373,507)

3,760,685

(1,350,938)

(3,802) 16,072

(1,448)

(1,340,116)

2,880,871

(2,388,604)

(101,875)

117,481

(2,694)

(2,961,617)

(2,456,438)

(35,869)

357,910

322,041



Note

2019 2018

13 20,095,266 22,299,846 4,088,671

7,319,715

3,287,184

2,977,029 1,030,254 935,687

16,808,082

19,322,817 3,058,417 6,384,028

14 14,458,312

16,870,752

2,376,481

5,616,593

2,349,770

2,452,065

681,936

767,435

21,851

13,256

402

4,198 2,371,620

2,465,321

682,337

771,633

435,329

421,237

119,087

113,294

510,966

492,732

150,725

158,911

40,040

46,645

14,942

9,713

1,062,271

929,427

355,538

383,410

323,015 575,280 42,046

106,305

21,757 39,940 16,516 (19,781)

301,258 535,340 25,530 126,086

15 0.54 1.01 0.03 0.23

Gross Sales


Net Sales

Cost of Sales

Gross Prot


Distribution Cost

Administrative Cost


Finance Cost

Prot Before Taxation


Prot after tax

Earnings per share

Basic & diluted


Nine Months Ended Quarter Ended


September 30

2019

Rupees '000'

September 30

2018

Rupees '000'

September 302019

Rupees '000'

September 302018

Rupees '000'


Condensed InterimStatement of Profit or Loss and other Comprehensive Income







Adjustments for non cash items




Finance cost paid

Income tax paid






(Increase) / decrease in long-term deposits





Redemption of Redeemable capital

Increase/ (Decrease) in liabilities against nance lease

Dividend paid






575,280

1,570,070

2,145,350

(2,699,262)

(553,912)

(607,277)

(575,926)

(1,183,203)

(1,737,115)

(1,807,693)

-

25,531

(4,016)

(1,786,178)

226,013

(1,141,249)

(193,750)

39,915

(589,636)

5,206,834

3,548,127

24,834

401,824

426,658


Condensed InterimStatement of Cash Flows




27

323,015

1,337,778

1,660,792

3,473,400

5,134,193

(944,691)

(428,817)

(1,373,507)

3,760,685

(1,350,938)

(3,802) 16,072

(1,448)

(1,340,116)

2,880,871

(2,388,604)

(101,875)

117,481

(2,694)

(2,961,617)

(2,456,438)

(35,869)

357,910

322,041



Note

2019 2018

13 20,095,266 22,299,846 4,088,671

7,319,715

3,287,184

2,977,029 1,030,254 935,687

16,808,082

19,322,817 3,058,417 6,384,028

14 14,458,312

16,870,752

2,376,481

5,616,593

2,349,770

2,452,065

681,936

767,435

21,851

13,256

402

4,198 2,371,620

2,465,321

682,337

771,633

435,329

421,237

119,087

113,294

510,966

492,732

150,725

158,911

40,040

46,645

14,942

9,713

1,062,271

929,427

355,538

383,410

323,015 575,280 42,046

106,305

21,757 39,940 16,516 (19,781)

301,258 535,340 25,530 126,086

15 0.54 1.01 0.03 0.23

Gross Sales


Net Sales

Cost of Sales

Gross Prot


Distribution Cost

Administrative Cost


Finance Cost

Prot Before Taxation


Prot after tax

Earnings per share

Basic & diluted


Nine Months Ended Quarter Ended


September 30

2019

Rupees '000'

September 30

2018

Rupees '000'

September 302019

Rupees '000'

September 302018

Rupees '000'


Condensed InterimStatement Of Changes In Equity





1 REPORTING ENTITY

Pak Elektron Limited ("PEL" or "the Company") was incorporated in Pakistan on March 03, 1956 as a public limited company under the Companies Act, 1913 (replaced by the Companies Ordinance, 1984). Registered office of the Company is situated at 17 - Aziz Avenue, Canal Bank, Gulberg - V, Lahore. The Company is currently listed on Pakistan Stock Exchanges. The principal activity of the Company is manufacturing and sale of electrical capital goods and domestic appliances.

The Company is currently organized into two main operating divisions - Power Division & Appliances Division. The Company's activities are as follows:

Power Division: manufacturing and distribution of transformers, switchgears, energy meters, power transformers, construction of grid stations and electrification works.

Appliances Division: manufacturing, assembling and distribution of refrigerators, air conditioners, deep freezers, microwave ovens, water dispensors, TV and other home appliances.


This interim financial information is not audited and has been presented in condensed form and does not include all the information and disclosures as are required to be provided or made in a full set of annual financial statements. This condensed interim consolidated financial information should be read in conjunction with the audited financial statements of the company for the year ended December 31, 2018.

The comparative interim balance sheet as at December 31, 2018 and the related notes to the condensed interim financial information are based on audited financial statements. The comparative interim profit and loss account/statement of comprehensive income, interim cash flow statement, interim statement of changes in equity and related notes to the condensed interim financial information for the nine months ended September 30, 2018 are based on unaudited interim financial information.


These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting comprises of:







29

Notes to the Condensed InterimFinancial Statements


Revenue reserves

Total

5,426,392 4,279,947 4,274,019 6,753,080 20,733,438

- - 535,340 535,340

(148,000) 148,000

-

-

-

(597,218)

(597,218)

5,426,392

4,279,947

4,126,019 6,839,202

20,671,560

-

-

(6,995)

(6,995)

-

-

(51,824) 51,824

-

2,504,854 -

2,504,854

5,426,392 4,279,947 6,579,049 6,884,031 23,169,419

- - 301,258 301,258

- - (211,313) 211,313 -

- -

5,426,392 4,279,947 6,367,736 7,396,602 23,470,677

Balance as at January 1, 2018

Total comprehensive income for the period

Incremental depreciation

Final Dividend on Ordinary Shares @ Rs 1.20 Per share

Balance as at September 30, 2018



Other comprehensive income

Balance as at December 31, 2018

Total comprehensive income for the period.




The annexed notes 1 to 19 form an integral part of these interim nancial statements.


Issued, Subscribed

and paid up Capital

Capital reserves

Share premium

Surplus on

Revaluation of

Property, Plant and

EquiplentAccumulated

Prots


Condensed InterimStatement Of Changes In Equity





1 REPORTING ENTITY

Pak Elektron Limited ("PEL" or "the Company") was incorporated in Pakistan on March 03, 1956 as a public limited company under the Companies Act, 1913 (replaced by the Companies Ordinance, 1984). Registered office of the Company is situated at 17 - Aziz Avenue, Canal Bank, Gulberg - V, Lahore. The Company is currently listed on Pakistan Stock Exchanges. The principal activity of the Company is manufacturing and sale of electrical capital goods and domestic appliances.

The Company is currently organized into two main operating divisions - Power Division & Appliances Division. The Company's activities are as follows:

Power Division: manufacturing and distribution of transformers, switchgears, energy meters, power transformers, construction of grid stations and electrification works.

Appliances Division: manufacturing, assembling and distribution of refrigerators, air conditioners, deep freezers, microwave ovens, water dispensors, TV and other home appliances.


This interim financial information is not audited and has been presented in condensed form and does not include all the information and disclosures as are required to be provided or made in a full set of annual financial statements. This condensed interim consolidated financial information should be read in conjunction with the audited financial statements of the company for the year ended December 31, 2018.

The comparative interim balance sheet as at December 31, 2018 and the related notes to the condensed interim financial information are based on audited financial statements. The comparative interim profit and loss account/statement of comprehensive income, interim cash flow statement, interim statement of changes in equity and related notes to the condensed interim financial information for the nine months ended September 30, 2018 are based on unaudited interim financial information.


These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting comprises of:







29

Notes to the Condensed InterimFinancial Statements


Revenue reserves

Total

5,426,392 4,279,947 4,274,019 6,753,080 20,733,438

- - 535,340 535,340

(148,000) 148,000

-

-

-

(597,218)

(597,218)

5,426,392

4,279,947

4,126,019 6,839,202

20,671,560

-

-

(6,995)

(6,995)

-

-

(51,824) 51,824

-

2,504,854 -

2,504,854

5,426,392 4,279,947 6,579,049 6,884,031 23,169,419

- - 301,258 301,258

- - (211,313) 211,313 -

- -

5,426,392 4,279,947 6,367,736 7,396,602 23,470,677

Balance as at January 1, 2018







Other comprehensive income

Balance as at December 31, 2018

Total comprehensive income for the period.




The annexed notes 1 to 19 form an integral part of these interim nancial statements.


Issued, Subscribed

and paid up Capital

Capital reserves

Share premium

Surplus on

Revaluation of

Property, Plant and

EquiplentAccumulated

Prots



6

Current Maturity


REDEEMABLE CAPITAL

Shariah nancing:




- -

- 101,875

101,875 376,875

- -

101,875 275,000






2019 2018

500,000,000

500,000,000


5,000,000


62,500,000

62,500,000


625,000

37,500,000

37,500,000


375,000

100,000,000 100,000,000 1,000,000 1,000,000

600,000,000 600,000,000 6,000,000 6,000,000



2019 2018



372,751,051

372,751,051

- In cash 3,727,511

3,727,511

Other than cash:

137,500

137,500


1,375

408,273

408,273

4,083

4,083

6,040,820

6,040,820

60,408

60,408

118,343,841

118,343,841


1,183,439

497,681,485

497,681,485

4,976,816

4,976,816

44,957,592 44,957,592 Issued for cash 449,576 449,576

542,639,077 542,639,077 5,426,392 5,426,392



Limited


shares



2019 2018 2019 2018



31

3 ACCOUNTING POLICIES


8

219,849 102,368

88,950 42,590

130,899 59,778



Current maturity

9 SHORT TERM BORROWINGS






Shriah

Non Shariah


Shriah

Non Shariah


Shriah

Non Shariah

Current portion

Shriah

Non Shariah


750,000 523,987

3,565,878

5,108,691

4,315,878

5,632,678

2,000,000

226,013

880,871

-

2,880,871

226,013

1,053,571 -

1,335,033 1,542,813

2,388,604 1,542,813

414,286 107,142

1,721,842 1,562,704

2,136,128 1,669,846



6

Current Maturity


REDEEMABLE CAPITAL

Shariah nancing:




- -

- 101,875

101,875 376,875

- -

101,875 275,000






2019 2018

500,000,000

500,000,000


5,000,000


62,500,000

62,500,000


625,000

37,500,000

37,500,000


375,000

100,000,000 100,000,000 1,000,000 1,000,000

600,000,000 600,000,000 6,000,000 6,000,000



2019 2018



372,751,051

372,751,051

- In cash 3,727,511

3,727,511

Other than cash:

137,500

137,500


1,375

408,273

408,273

4,083

4,083

6,040,820

6,040,820

60,408

60,408

118,343,841

118,343,841


1,183,439

497,681,485

497,681,485

4,976,816

4,976,816

44,957,592 44,957,592 Issued for cash 449,576 449,576

542,639,077 542,639,077 5,426,392 5,426,392



Limited


shares



2019 2018 2019 2018



31

3 ACCOUNTING POLICIES


8

219,849 102,368

88,950 42,590

130,899 59,778



Current maturity

9 SHORT TERM BORROWINGS






Shriah

Non Shariah


Shriah

Non Shariah


Shriah

Non Shariah

Current portion

Shriah

Non Shariah


750,000 523,987

3,565,878

5,108,691

4,315,878

5,632,678

2,000,000

226,013

880,871

-

2,880,871

226,013

1,053,571 -

1,335,033 1,542,813

2,388,604 1,542,813

414,286 107,142

1,721,842 1,562,704

2,136,128 1,669,846



1,137,077 1,581,991 401,623 635,952

18,469,752 19,936,864 3,541,423 6,497,194

488,437 780,991 145,625 186,569

20,095,266 22,299,846 4,088,671 7,319,715

3,287,184

2,977,029

1,030,254

935,687

-

-

-

-

3,287,184

2,977,029

1,030,254

935,687

16,808,082

19,322,817

3,058,417

6,384,028

13 REVENUE

Contract revenue

Sales - local

Sales - export


- trade discounts


20192019 20182018


Nine month ended Quarter ended



12

12.1

12.1

100

3,493

3,593

54,701

51,208

3,493

100

6,985

7,085

54,701

47,716

6,985

LONG-TERM INVESTMENTS

Investments in related parties

Wholly owned subsidiary at cost - Unquoted

Pel Marketing Private Limited

10,000 shares (December 31, 2015: 10,000 shares) of Rs. 10 each

Associate at cost - Quoted



Cost of investment

2,910,600 shares (2015: 2,910,600 shares)


Investment in associate at cost - Quoted

Note




1,137,077 1,581,991 401,623 635,952

18,469,752 19,936,864 3,541,423 6,497,194

488,437 780,991 145,625 186,569

20,095,266 22,299,846 4,088,671 7,319,715

3,287,184

2,977,029

1,030,254

935,687

-

-

-

-

3,287,184

2,977,029

1,030,254

935,687

16,808,082

19,322,817

3,058,417

6,384,028

13 REVENUE

Contract revenue

Sales - local

Sales - export


- trade discounts


20192019 20182018





12

12.1

12.1

100

3,493

3,593

54,701

51,208

3,493

100

6,985

7,085

54,701

47,716

6,985

LONG-TERM INVESTMENTS

Investments in related parties

Wholly owned subsidiary at cost - Unquoted

Pel Marketing Private Limited

10,000 shares (December 31, 2015: 10,000 shares) of Rs. 10 each

Associate at cost - Quoted



Cost of investment

2,910,600 shares (2015: 2,910,600 shares)


Investment in associate at cost - Quoted

Note




14,382,792

16,344,771

1,955,430

5,330,400

758,928

848,453

1,497,872

1,230,930

(1,351,801)

(1,315,471)

(1,351,801)

(1,315,471)

(592,873)

(467,018)

146,071

(84,541)

13,789,919

15,877,753

2,101,501

5,245,859

417,843 360,059 641,624 560,090

(703,685) (748,486) (703,685) (748,486)

(285,842) (388,427) (62,061) (188,396)

13,504,077 15,489,326 2,039,440 5,057,463

954,235 1,381,426 337,042 559,129

14

COST OF SALES


Work-in-process


-at end of period


Finished goods


-at end of period

Contract cost

Cost of sales 14,458,312 16,870,752 2,376,482 5,616,592


20192019 20182018




35




18 GENERAL


18.2 Comparative figures have been rearranged and reclassified, where necessary for the purpose of comparison . However there were no significant reclassification during the year.

19 OTHERS

There are no other significant activities since December 31, 2018 affecting this condensed interim financial information.

15

301,258 535,340

32,032 32,032

269,226

503,308

497,681,485 497,681,485

(Number)

The calculation of basic and diluted prot per ordinary share is based on the following data:

Prots for the period

Less: dividend payable on preference shares

Prot attributable to ordinary shares

Number of shares


Weighted average number of ordinary shares for the

purpose of basic prot

Basic earnings per share (Rupees) 0.54 1.01

September 30 September 302019 2018


Basic and diluted profit per share have been calculated through dividing profit as stated above by weighted average number of ordinary shares.



Related parties from the company's perspective comprise associated companies, post employment benefit plans and key management personnel. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, and includes the Chief Executive and Directors of the Company.

Transactions with key management personnel are limited to payment of short term employee benefits only. The company in the normal course of business carries out various transactions with other related parties and continues to have a policy whereby all such transactions are carried out on commercial terms and conditions which are equivalent to those prevailing in an arm's length transaction.


12,430,054 14,873,123

Associated company 26,753

29,581

38,534 37,166

1,200 1,200

Subsidiary Sales of goods and services

Services acquired










14,382,792

16,344,771

1,955,430

5,330,400

758,928

848,453

1,497,872

1,230,930

(1,351,801)

(1,315,471)

(1,351,801)

(1,315,471)

(592,873)

(467,018)

146,071

(84,541)

13,789,919

15,877,753

2,101,501

5,245,859

417,843 360,059 641,624 560,090

(703,685) (748,486) (703,685) (748,486)

(285,842) (388,427) (62,061) (188,396)

13,504,077 15,489,326 2,039,440 5,057,463

954,235 1,381,426 337,042 559,129

14

COST OF SALES


Work-in-process


-at end of period


Finished goods


-at end of period

Contract cost

Cost of sales 14,458,312 16,870,752 2,376,482 5,616,592


20192019 20182018




35




18 GENERAL


18.2 Comparative figures have been rearranged and reclassified, where necessary for the purpose of comparison . However there were no significant reclassification during the year.

19 OTHERS

There are no other significant activities since December 31, 2018 affecting this condensed interim financial information.

15

301,258 535,340

32,032 32,032

269,226

503,308

497,681,485 497,681,485

(Number)

The calculation of basic and diluted prot per ordinary share is based on the following data:

Prots for the period

Less: dividend payable on preference shares

Prot attributable to ordinary shares

Number of shares


Weighted average number of ordinary shares for the

purpose of basic prot

Basic earnings per share (Rupees) 0.54 1.01



Basic and diluted profit per share have been calculated through dividing profit as stated above by weighted average number of ordinary shares.



Related parties from the company's perspective comprise associated companies, post employment benefit plans and key management personnel. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, and includes the Chief Executive and Directors of the Company.

Transactions with key management personnel are limited to payment of short term employee benefits only. The company in the normal course of business carries out various transactions with other related parties and continues to have a policy whereby all such transactions are carried out on commercial terms and conditions which are equivalent to those prevailing in an arm's length transaction.


12,430,054 14,873,123

Associated company 26,753

29,581

38,534 37,166

1,200 1,200

Subsidiary Sales of goods and services

Services acquired









Notes


www.pel.com.pk

PAK ELEKTRON LIMITED

17-Aziz Avenue, Canal Bank,Gulberg-V, LahorePh: (042) 35718274-5, 35717364-5

Notes


www.pel.com.pk

PAK ELEKTRON LIMITED

17-Aziz Avenue, Canal Bank,Gulberg-V, LahorePh: (042) 35718274-5, 35717364-5

Interim Financial Report for the nine months ended ... · Mr. Usman Shahid Director - NBP Nominee U/S 164 of the Act/ Non Executive Ms. Azra Naila Shoaib Director - NBP Nominee U/S

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