THIRD QUARTER FINANCIAL STATEMENTS - …ghaniautomobiles.com/Financials/GAIL3rdQuarter2014.pdf · THIRD QUARTER FINANCIAL STATEMENTS. Corporate Information ... [email protected] 49-KM,

Ghani Automobile Industries Limited

The Power of Perfection

THIRD QUARTERFINANCIAL STATEMENTS

Corporate Information

BOARD OF DIRECTORS

AUDIT COMMITTEE

COMPANY SECRETARY

CHIEF FINANCIAL OFFICER

AUDITORS

LEGAL ADVISORS

SHARE REGISTRAR

BANKERS

HEAD OFFICE &REGISTERED OFFICE

Mr. Imtiaz Ahmad Khan Chairman

Mr. Aftab Ahmad Khan Chief Executive Officer

Mr. Anwaar Ahmad Khan

Mrs. Reema Anwaar

Mrs. Ayesha Aftab

Mr. Junaid Ghani

Mr. Obaid Ghani

Mr. Jubair Ghani

ChairmanMemberMember

ChairmanMemberMember

Hafiz Mohammad Imran Sabir

Mr. Umer Farooq Khan

Hassan Farooq & Company

Chartered Accountants

Ally Law Associates

Ch. Muhammad Siddique

Corplink (Pvt) Ltd.

Wings Arcade, 1-K Commercial Model Town Lahore, Pakistan

Phones : (042) 35916714, 35916719 Fax : (042) 35869037

Albaraka Islamic Bank

Allied Bank of Pakistan Limited

Habib Bank Limited

Meezan Bank Limited, Islamic Banking

Soneri Bank Limited, Islamic Banking

Burj Bank Limited

Habib Metropolitan Bank Limited

Bank Alfalah Limited

40-L Model Town Lahore, Pakistan

UAN : (042) 111 949 949

Fax : (042) 3517 2263

E-mail : [email protected]://www.ghaniautomobiles.com

MARKETING OFFICE

AUTOMOBILE PLANT

12 D/3, Chandni Chowk KDA Scheme No. 7-8 Karachi - 74000

UAN : (021) 111 949 949, Fax : (021) 3492 6349

E-mail : [email protected]

49-KM, Multan Road, (from Lahore)

HR & R COMMITTEE Mr. Anwaar Ahmad KhanMrs. Ayesha AftabMr. Obaid Ghani

Dr. Amjad AqeelMrs. Ayesha AftabMr. Jubair Ghani

Ms. Zahra Aftab

Dr. Amjad Aqeel

1Ghani Automobile Industries Limited


Directors’ ReportDear Shareholders,

Assala-mo-Alaikum wa Rahmatullah wa Barakatohu.

The board of Directors of Ghani Automobile Industries Limited is pleased to present financial statements of the company for the third quarter and nine months ended March 31, 2014.

On behalf of the Board of Directors

Lahore: March 29, 2014 Aftab Ahmed Khan Chief Executive Officer

FINANCIAL INDICATORSRupees ‘000’

During the nine months ended March 31, 2014, the net sale of the Company has been restricted at Rupees 85 million as compared to Rupees 128 million for the corresponding period of last year. Gross Profit has been recorded as Rupees 8 million as compared to Rupees 5 million for same period of the last year. The management has been continuously taking effective measures to control the operational cost at all levels. That is why the company has demonstrated significant improvement in profitability during the third quarter ended March 31, 2014. The Gross Profit for the third quarter has increased to Rupees 6 million as compared to Rupees 2 million for the same period of the last year. During the third quarter, the company has earned profit before tax of around Rupees 2 million as compared to loss of Rupees 2 million for the same period of the last year. Similarly, the profit after tax has increased to Rupees 1.7 million as compared to net loss of Rupees 2.4 million for the third quarter of the last year. We hope that with the help of almighty ALLAH, the Company's performance would be further improved at the end of the financial year.

On behalf of the Directors, we are pleased to record our appreciation for our customers, employees, suppliers, shareholders and financial institutions for their trust in the management of the company.

We thank Allah Subhanatallah for blessing all of us and your company. We all should continue our endeavors to fully obey the commandments of Almighty Allah and Sunnah of our Prophet Muhammad (Sallallaho-Alaihe-Wasallum).

Sales – Net

Gross profit / (loss)

Profit / (loss) before taxation

Net profit / (loss)

Earning / (loss) per share

84,825

7,591

(408)

(886)

(0.04)

127,622

5,268

(8,361)

(9,637)

(0.48)

March 31, 2013March 31, 2014


CONDENSED INTERIM STATEMENT OF FINANCIAL POSITIONAS AT MARCH 31, 2014 (UN-AUDITED)

__________________________

CHIEF EXECUTIVE OFFICER DIRECTOR

____________

31 Mar 2014 30 Jun 2013

NOTE Rupees Rupees

EQUITY & LIABILITIES

Share capital and reserves

Authorized share capital

50,000,000 (Jun 2013: 20,000,000) ordinary

shares of Rs.10 each 500,000,000

200,000,000

Issued, subscribed and paid up capital 3 200,000,000

200,000,000

Accumulated loss (138,280,324)

(137,393,865)

61,719,676

62,606,135

Current liabilities

Short term borrowing 94,908,374

91,745,645

Loan from sponsors 4 170,505,000

168,105,000

Creditors, accrued and other liabilities 99,964,314

104,959,123

Provision For Income Tax 848,246

866,309

366,225,934

365,676,077

Contingencies and commitments 5 -

-

Total equity and liabilities 427,945,610 428,282,212

ASSETS

Non-current assets

Property, plant and equipment 6 38,911,370

40,876,547

Security deposits 667,386

667,386

Deferred tax asset 23,469,016

23,098,848

Current assets

Stores, spares and loose tools 608,314

813,630

Stock in trade 88,761,685

104,542,071

Trade debtors - unsecured but considered good 192,979,103

191,349,591

Advances and other receivables 63,897,946

62,131,823

Cash and bank balances 18,650,790

4,802,316

364,897,838

363,639,431

Total assets 427,945,610 428,282,212

The annexed notes 1 to 7 form an integral part of these condensed interim financial statements.


CONDENSED INTERIM PROFIT & LOSS ACCOUNTFOR THE PERIOD ENDED MARCH 31, 2014 (UN-AUDITED)

__________________________


____________

2014 2013 2013-14 2012-13

Sales 27,778,015

37,669,754

84,824,603

127,621,640

Cost of sales 21,756,643

34,879,757

77,233,544

122,353,849

Gross profit 6,021,372

2,789,997

7,591,059

5,267,791

Administrative Expenses (763,028)

(1,480,093)

(3,093,516)

(5,007,022)

Distribution and marketing expenses (2,342,031)

(2,741,052)

(7,526,126)

(8,738,318)

(3,105,059)

(4,221,145)

(10,619,642)

(13,745,340)

Other operating income 1,969,000

3,378,000

10,101,000

11,373,000

Operating profit before finance cost 4,885,313 1,946,852 7,072,417 2,895,451

Finance Cost (2,926,099) (3,965,091) (7,480,798) (11,256,552)

Profit/(Loss) before taxation 1,959,214 (2,018,239) (408,381) (8,361,101)

Taxation

Current (277,780)

(376,697)

(848,246)

(1,276,216) Deferred -

-

370,168

-

(277,780)

(376,697)

(478,078)

(1,276,216)

Net profit/(loss) after taxation 1,681,434

(2,394,936)

(886,459)

(9,637,318)

Un-appropriated loss brought forward (137,393,865)

(126,819,784)

Un-appropriated loss carried forward (138,280,324) (136,457,102)

Earning Per Share - Basic 0.08

(0.12) (0.04) (0.48)


Rupees Rupees

Jan-Mar Jul-Mar


CONDENSED INTERIM CASH FLOW STATEMENTFOR THE PERIOD ENDED MARCH 31, 2014 (UN-AUDITED)

__________________________


____________

31 Mar 2014 31 Mar 2013

Rupees Rupees

CASH FLOWS FROM OPERATING ACTIVITIES

(Loss) for the period before tax (408,381)

(8,361,102)

Adjustment for :

Depreciation 1,976,277

2,197,589

Financial charges 7,480,798

11,256,552

9,457,075

13,454,141

Operating profit before working capital changes 9,048,694

5,093,040

(Increase) / decrease in current assets

Store, spares and loose tools 205,316

(209,070)

Stock in trade 15,780,386

(5,572,970)

Trade debtors (1,629,512)

(1,505,860)

Advances and other receivables 1,189,303

4,416,709

15,545,493

(2,871,191)

Increase / (decrease) in current liabilities

Creditors, accrued and other liabilities (4,994,809)

(75,941,210)

19,599,378 (73,719,361)

Financial charges paid (7,480,798) (11,256,552)

Taxes paid (3,821,735) (1,215,785)

NET CASH FLOWS FROM OPERATING ACTIVITIES 8,296,845 (86,191,699)

Acquisition of fixed assets (11,100) (7,660) NET CASH FLOWS FROM INVESTING ACTIVITIES (11,100)

(7,660)

Murabaha financing received 3,162,729

- Loan from sponsors 2,400,000

84,400,000 Musharaka financing repaid -

(2,100,000)

Murabaha financing repaid -

(2,097,071)

NET CASH FLOWS FROM FINANCING ACTIVITIES 5,562,729

80,202,929

Net increase / (decrease) in cash and cash equivalents 13,848,474

(5,996,430)

Cash and cash equivalents at the beginning of the period 4,802,316

25,030,970

Cash and cash equivalents at the end of the period 18,650,790 19,034,540



CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOMEFOR THE PERIOD ENDED MARCH 31, 2014 (UN-AUDITED)

__________________________


____________

2014 2013 2013-14 2012-13

Profit and loss for the period 1,681,434 (2,394,936) (886,459) (9,637,318)

Other comprehensive income - - - -

Total comprehensive profit for the period 1,681,434 (2,394,936) (886,459) (9,637,318)


Jan - Mar Jul-Mar

Rupees Rupees


CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITYFOR THE PERIOD ENDED MARCH 31, 2014 (UN-AUDITED)

__________________________


____________

Share Capital Accumulate Totalprofit/(loss)

Rupees Rupees Rupees

Balance as on June 30, 2012 200,000,000 (126,819,784) 73,180,216

Total comprehensive loss - (10,574,081) (10,574,081)

Balance as on June 30, 2013 200,000,000 (137,393,865) 62,606,135

Balance as on July 01, 2013 200,000,000 (137,393,865) 62,606,135

Total comprehensive loss - (886,459) (886,459)

Balance as on March 31, 2014 200,000,000 (138,280,324) 61,719,676

The annexed notes 1 to 7 form an integral part of these condensed interim financial statements


NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTSFOR THE PERIOD ENDED MARCH 31, 2014 (UN-AUDITED)

__________________________


____________

1 COMPANY AND ITS OPERATIONS

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preparation of Financial Statements

2.2 Accounting Conventions

March 31, 2014 June 30, 2013

Rupees Rupees3 ISSUED, SUBSCRIBED AND PAID UP CAPITAL

19,250,000 ordinary shares of Rs.10 each fully paid in cash 192,500,000 192,500,000

250,000 ordinary shares of Rs.10 each fully paid other than cash 2,500,000 2,500,000

500,000 ordinary shares of Rs.10 each issued as bonus shares 5,000,000 5,000,000

200,000,000 200,000,000

4 LOAN FROM SPONSORS

It represents un-secured, non-interest bearing loan from directors payable on demand

5 CONTINGENCIES AND COMMITMENTS

5.1

5.2

5.3

5.4 Letter of credit in transit other than capital expenditure are Rupees 6,734,599 (June 2013:Rupees 10,086,748).

March 31, 2014 June 30, 2013

Rupees Rupees6 PROPERTY, PLANT AND EQUIPMENTS

Operating fixed assets 38,911,370 40,876,547

6.1 ADDITION / (DELETION) IN FIXED ASSETS - AT COST

Plant and Machinery - 70,000

Computer 11,100 38,631

11,100 108,631

7 AUTHORISED FOR ISSUE

The company is a public listed company incorporated in Pakistan under the Companies Ordinance, 1984 in September 1987. The

registered office of the company is situated at 40-L Model Town, Lahore. The shares of the company are quoted on Stock Exchanges

in Pakistan. The name of the company has been changed from Ghani Textile Limited to Ghani Automobile Industries Limited with

effect from March 31, 2004. The principal activity of company has been changed during year 2004 from manufacture and trade of grey

cloth to manufacture, assemble and trade of Automotive Vehicles of all kinds and sorts.

These financial statements are unaudited and are being submitted to the shareholders as required under Section 245 of the

Companies Ordinance, 1984. These have been prepared in accordance with International Accounting Standard No. 34, Interim

Financial Reporting as applicable in Pakistan and notified by Securities and Exchange Commission of Pakistan. The interim

condensed financial statements do not include all the information and disclosure required in the annual financial statements, and shoul

be read in conjunction with the company's annual financial statement for the year ended june 30, 2013.

The accounting policies and method of computation adopted for the preparation of these interim financial statements are the same

as applied in the preparation of the preceding annual published financial statements of the company for the year ended June 30, 2013.

There is a contingent liability of Rupees 1,727,290 (June 2013:Rupees 1,727,290) in respect of income tax for assessment up to

assessment year 2001-2002 against order under section 62 and 52 of repealed Income Tax Ordinance, 1979. The company has filed

the appeals against above orders.

The Punjab Employees Social Security Institution has raised a demand of Rupees 2,245,057 (June 2013: Rupees 2,245,057) as

less payment of contribution for the period from 1989 to 1995. The company has not acknowledged this demand and files appeal

under section 57 of the Social Security Ordinance, 1965. After remand of the case by Labour Court, appeal is now under process

with Additional Commissioner, Punjab Employees Social Security Institute.

The company has given bank guarantee of Rupees 729,764 (June 2013: Rupees 729,000 ) to WAPDA.

The financial statements were approved by board of directors and authorised for issue on April 29, 2014.

The Power of Perfection

Head Office:40-L, Model Town, Lahore, Pakistan.UAN: +92-42-111 949 949Fax: + 92-42-35172263www.ghaniautomobiles.com

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