interim march 2016 - pel · ended march 31, 2016. alhamdulillah, your company has achieved sales...
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Interim Financial Reportfor the quarter endedMarch 31, 2016
Life-changing Engineering
Pak Elektron Limited
Corporate InformationDirectors’ Review
Condensed Interim Consolidated Balance SheetCondensed Interim Consolidated Profit and Loss Account / Statement of Comprehensive IncomeCondensed Interim Consolidated Cash Flow StatementCondensed Interim Consolidated Statement of Changes in EquitySelected Explanatory Notes to the Condensed Interim Consolidated Financial Information
CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION
CONDENSED INTERIM SEPARATE FINANCIAL INFORMATION
Condensed Interim Balance SheetCondensed Interim Profit and Loss Account / Statement of Comprehensive IncomeCondensed Interim Cash Flow StatementCondensed Interim Statement of Changes in EquitySelected Explanatory Notes to the Condensed Interim Financial Information
Contents0203
0608091011
2022232425
Corporate InformationDirectors’ Review
Condensed Interim Consolidated Balance SheetCondensed Interim Consolidated Profit and Loss Account / Statement of Comprehensive IncomeCondensed Interim Consolidated Cash Flow StatementCondensed Interim Consolidated Statement of Changes in EquitySelected Explanatory Notes to the Condensed Interim Consolidated Financial Information
CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION
CONDENSED INTERIM SEPARATE FINANCIAL INFORMATION
Condensed Interim Balance SheetCondensed Interim Profit and Loss Account / Statement of Comprehensive IncomeCondensed Interim Cash Flow StatementCondensed Interim Statement of Changes in EquitySelected Explanatory Notes to the Condensed Interim Financial Information
Contents0203
0608091011
2022232425
CORPORATE INFORMATION DIRECTORS’ REVIEW
Interim Financial Report March 31, 2016
02 | | 03
Pak Elektron Limited
BOARD OF DIRECTORS
Mr. M. Naseem Saigol Chairman - ExecutiveMr. M. Murad Saigol Chief Executive Officer - Executive/ Certified (DTP)Mr. M. Azam Saigol Director - Non ExecutiveMr. Muhammad Zeid Yousuf Saigol Director - Executive/Certified (DTP)Syed Manzar Hassan Director - ExecutiveMr. Asad Ullah Khawaja Director - NIT Nominee/IndependentSheikh Muhammad Shakeel Director - Non Executive/Certified (DTP)Mr. Wajahat A. Baqai Director - NBP Nominee U/S 182 of the Ordinance/ Non ExecutiveMr. Usman Shahid Director - NBP Nominee U/S 182 of the Ordinance/ Non ExecutiveMr. Khalid Siddiq Tirmizey Director - BOP Nominee U/S 182 of the Ordinance/ Non Executive
BANKERS (Cont’d)
Burj Bank LimitedEscort Investment Bank Faysal Bank LimitedBank Islami PakistanMCB Bank, LimitedNational Bank of PakistanNIB Bank LimitedPak Brunei Investment Company LimitedPak Libya Holding Company (Private) LimitedSilk Bank LimitedSoneri Bank LimitedStandard Chartered BankSummit Bank LimitedSaudi Pak Industrial and agricultural investment Company LimitedUnited Bank Limited
REGISTERED OFFICE
17- Aziz Avenue, Canal Bank,Gulberg-V, LahoreTel: 042-35718274-6, Fax: 042-35762707E-Mail: [email protected]
AUDIT COMMITTEE
HR & REMUNERATION COMMITTEE
COMPANY SECRETARY
CHIEF FINANCIAL OFFICER
AUDITORS
LEGAL ADVISOR
SHARE REGISTRAR
BANKERS
Mr. M. Azam Saigol Chairman/MemberMr. Asad Ullah Khawaja MemberMr. Usman Shahid MemberSheikh Muhammad Shakeel Member
Mr. M. Azam Saigol Chairman/MemberMr. M. Murad Saigol MemberMr. Asad Ullah Khawaja MemberSyed Manzar HassanMember
Muhammad Omer Farooq
Syed Manzar Hassan, FCA
Rahman Sarfaraz Rahim Iqbal RafiqChartered Accountants
M/s Hassan & Hassan Advocates
Corplink (Private) LimitedWings Arcade, 1-K CommercialModel Town, LahoreTel: 042-35916714, 35839182,Fax: 042-35869037E-Mail: [email protected]
Albaraka Islamic BankAskari Bank LimitedBank Alfalah LimitedBank of KhyberBank of Punjab
KARACHI
Kohinoor Building 25-West Wharf Road,KarachiTel: 021-32200951-4Fax: 021-32310303
TRANSFORMER FACILITY
34-K.M. Ferozepur Road, Keath Village, Lahore.Tel: 042-35935151-2
WORKS
14-K.M. Ferozepur Road, LahoreTel: 042-35920151-9
ISLAMABAD
Room # 301, 3rd Floor,Green Trust Tower, Blue Area, IslamabadTel: 051-2824543, 2828941Fax: 051-2273858
CHINA
206, No. 1007, Zhong Shan Naun Er Road, Shanghai, ChinaTel: 86-21-64567713Fax: 86-21- 54109971
Dear Shareholders
Your Directors are pleased to present the un-audited interim financial statements of the Company for the First quarter ended March 31, 2016. Alhamdulillah, your company has achieved Sales revenue during the period amounting to Rs. 7.750 billion as compared to Rs. 5.869 billion of corresponding quarter of last financial year, representing a growth of 32%. The gross margin and EPS achieved for the current quarter is 27% and Rs. 1.20 per share respectively which are slightly lower as compared to the corresponding quarter of previous year. Management of the company is committed to act on the strategy of improving product quality and market share through maximum capacity utilization, initiatives of operating cost control and material cost reduction as a result of R&D initiatives in our main products.
Summary of results is as under:
Quarter endedMarch 31, 2016Rupees in million
Quarter endedMarch 31, 2015
Increase /(Decrease)
Sales
Gross Profit
Finance Cost
Profit before tax
Profit after tax
Earnings per share - Rupees
7,750
1,752
394
739
532
1.20
5,869
1,679
471
766
733
1.68
1881
73
(77)
(27)
(201)
Performance of the Company in both Appliances and Power Divisions showed positive improvement during the current period over the corresponding period of last financial year.
Appliances Division
Appliances Division's sale has shown a moderate increase in the first quarter ended March 31, 2016 against the corresponding period. This time, Refrigerators, Deep Freezers and Split Air Conditioners have positively contributed in increase in Revenue of Appliance Division. Deep Freezers and Air conditioners have shown positive uptick in sales as compared to the quarter of corresponding previous year. Sturdy marketing and advertising strategies, constant cost effective measures and extensive R & D initiatives proved to be the pronounced reason in appliance division growth and achievements. Stability of Country Law and Order situation has also played a key role in consumer buying and directly affected the Consumer Electronics Market.
Refrigerators and Split Air Conditioners sales in first quarter are normally a starter which peaks in the second quarter. Your Company is now geared up for higher sales volumes in the current year and especially in second quarter. The Company is enduring with its focused marketing and distribution efforts to further strengthen its position in the market. Appliances market is looking good and your company is well positioned to make higher supplies to make higher sales and profitability Insha Allah. With the introduction of new models in our refrigerator and Air Conditioner's range, demand for PEL Products is showing positive trends. Other appliances products like Deep freezers and Microwave ovens have also started pouring their share into the Company's sales.
Power Division
Power Division has achieved a momentous growth in first quarter especially in transformer business, including Distribution Transformers and Power Transformers. Elevated orders intake from the WAPDA/DISCOs as well as high sale orders from the Private Sectors are the main contributors in it. Your Company is working on new designs and prototypes for different power division products to rationalize costs without compromising on quality. New orders have started flowing in from Discos on top of continuous ordering from private customers and our in house EPC department. With promising ordering outlook we are optimistic that we would be able to meet our budgeted sales for the power division during the course of the financial year.
CORPORATE INFORMATION DIRECTORS’ REVIEW
Interim Financial Report March 31, 2016
02 | | 03
Pak Elektron Limited
BOARD OF DIRECTORS
Mr. M. Naseem Saigol Chairman - ExecutiveMr. M. Murad Saigol Chief Executive Officer - Executive/ Certified (DTP)Mr. M. Azam Saigol Director - Non ExecutiveMr. Muhammad Zeid Yousuf Saigol Director - Executive/Certified (DTP)Syed Manzar Hassan Director - ExecutiveMr. Asad Ullah Khawaja Director - NIT Nominee/IndependentSheikh Muhammad Shakeel Director - Non Executive/Certified (DTP)Mr. Wajahat A. Baqai Director - NBP Nominee U/S 182 of the Ordinance/ Non ExecutiveMr. Usman Shahid Director - NBP Nominee U/S 182 of the Ordinance/ Non ExecutiveMr. Khalid Siddiq Tirmizey Director - BOP Nominee U/S 182 of the Ordinance/ Non Executive
BANKERS (Cont’d)
Burj Bank LimitedEscort Investment Bank Faysal Bank LimitedBank Islami PakistanMCB Bank, LimitedNational Bank of PakistanNIB Bank LimitedPak Brunei Investment Company LimitedPak Libya Holding Company (Private) LimitedSilk Bank LimitedSoneri Bank LimitedStandard Chartered BankSummit Bank LimitedSaudi Pak Industrial and agricultural investment Company LimitedUnited Bank Limited
REGISTERED OFFICE
17- Aziz Avenue, Canal Bank,Gulberg-V, LahoreTel: 042-35718274-6, Fax: 042-35762707E-Mail: [email protected]
AUDIT COMMITTEE
HR & REMUNERATION COMMITTEE
COMPANY SECRETARY
CHIEF FINANCIAL OFFICER
AUDITORS
LEGAL ADVISOR
SHARE REGISTRAR
BANKERS
Mr. M. Azam Saigol Chairman/MemberMr. Asad Ullah Khawaja MemberMr. Usman Shahid MemberSheikh Muhammad Shakeel Member
Mr. M. Azam Saigol Chairman/MemberMr. M. Murad Saigol MemberMr. Asad Ullah Khawaja MemberSyed Manzar HassanMember
Muhammad Omer Farooq
Syed Manzar Hassan, FCA
Rahman Sarfaraz Rahim Iqbal RafiqChartered Accountants
M/s Hassan & Hassan Advocates
Corplink (Private) LimitedWings Arcade, 1-K CommercialModel Town, LahoreTel: 042-35916714, 35839182,Fax: 042-35869037E-Mail: [email protected]
Albaraka Islamic BankAskari Bank LimitedBank Alfalah LimitedBank of KhyberBank of Punjab
KARACHI
Kohinoor Building 25-West Wharf Road,KarachiTel: 021-32200951-4Fax: 021-32310303
TRANSFORMER FACILITY
34-K.M. Ferozepur Road, Keath Village, Lahore.Tel: 042-35935151-2
WORKS
14-K.M. Ferozepur Road, LahoreTel: 042-35920151-9
ISLAMABAD
Room # 301, 3rd Floor,Green Trust Tower, Blue Area, IslamabadTel: 051-2824543, 2828941Fax: 051-2273858
CHINA
206, No. 1007, Zhong Shan Naun Er Road, Shanghai, ChinaTel: 86-21-64567713Fax: 86-21- 54109971
Dear Shareholders
Your Directors are pleased to present the un-audited interim financial statements of the Company for the First quarter ended March 31, 2016. Alhamdulillah, your company has achieved Sales revenue during the period amounting to Rs. 7.750 billion as compared to Rs. 5.869 billion of corresponding quarter of last financial year, representing a growth of 32%. The gross margin and EPS achieved for the current quarter is 27% and Rs. 1.20 per share respectively which are slightly lower as compared to the corresponding quarter of previous year. Management of the company is committed to act on the strategy of improving product quality and market share through maximum capacity utilization, initiatives of operating cost control and material cost reduction as a result of R&D initiatives in our main products.
Summary of results is as under:
Quarter endedMarch 31, 2016Rupees in million
Quarter endedMarch 31, 2015
Increase /(Decrease)
Sales
Gross Profit
Finance Cost
Profit before tax
Profit after tax
Earnings per share - Rupees
7,750
1,752
394
739
532
1.20
5,869
1,679
471
766
733
1.68
1881
73
(77)
(27)
(201)
Performance of the Company in both Appliances and Power Divisions showed positive improvement during the current period over the corresponding period of last financial year.
Appliances Division
Appliances Division's sale has shown a moderate increase in the first quarter ended March 31, 2016 against the corresponding period. This time, Refrigerators, Deep Freezers and Split Air Conditioners have positively contributed in increase in Revenue of Appliance Division. Deep Freezers and Air conditioners have shown positive uptick in sales as compared to the quarter of corresponding previous year. Sturdy marketing and advertising strategies, constant cost effective measures and extensive R & D initiatives proved to be the pronounced reason in appliance division growth and achievements. Stability of Country Law and Order situation has also played a key role in consumer buying and directly affected the Consumer Electronics Market.
Refrigerators and Split Air Conditioners sales in first quarter are normally a starter which peaks in the second quarter. Your Company is now geared up for higher sales volumes in the current year and especially in second quarter. The Company is enduring with its focused marketing and distribution efforts to further strengthen its position in the market. Appliances market is looking good and your company is well positioned to make higher supplies to make higher sales and profitability Insha Allah. With the introduction of new models in our refrigerator and Air Conditioner's range, demand for PEL Products is showing positive trends. Other appliances products like Deep freezers and Microwave ovens have also started pouring their share into the Company's sales.
Power Division
Power Division has achieved a momentous growth in first quarter especially in transformer business, including Distribution Transformers and Power Transformers. Elevated orders intake from the WAPDA/DISCOs as well as high sale orders from the Private Sectors are the main contributors in it. Your Company is working on new designs and prototypes for different power division products to rationalize costs without compromising on quality. New orders have started flowing in from Discos on top of continuous ordering from private customers and our in house EPC department. With promising ordering outlook we are optimistic that we would be able to meet our budgeted sales for the power division during the course of the financial year.
Condensed InterimConsolidated Financial Information
M. MURAD SAIGOL
Chief Executive Officer
on behalf of the Board of Directors
LahoreApril 26, 2016
DIRECTORS’ REVIEW
04 |
Pak Elektron Limited
Future Outlook
The sales and profitability outlook seems promising for the current financial year. We hope that your company would be able to achieve its targets for both Power and Appliances divisions and by the grace of Almighty would earn healthy sales volumes and profitability.
Acknowledgement
We take this opportunity to thank all our customers, shareholders, bankers, employees, CBA and workers for their continued support and guidance.
Condensed InterimConsolidated Financial Information
M. MURAD SAIGOL
Chief Executive Officer
on behalf of the Board of Directors
LahoreApril 26, 2016
DIRECTORS’ REVIEW
04 |
Pak Elektron Limited
Future Outlook
The sales and profitability outlook seems promising for the current financial year. We hope that your company would be able to achieve its targets for both Power and Appliances divisions and by the grace of Almighty would earn healthy sales volumes and profitability.
Acknowledgement
We take this opportunity to thank all our customers, shareholders, bankers, employees, CBA and workers for their continued support and guidance.
CONDENSED INTERIMCONSOLIDATED BALANCE SHEETAS AT MARCH 31, 2016
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
Interim Financial Report March 31, 2016
06 | | 07
Pak Elektron Limited
(Un-Audited) (Audited)
March 312016
December 312015Rupees in thousands
Note
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
ADVANCE AGAINST ISSUE OF ORDINARY SHARES - 1,575,252
SURPLUS ON REVALUATION OFPROPERTY, PLANT AND EQUIPMENT
4,757,766
4,804,200
The annexed notes from 1 to 18 form an integral part of this condensed interim consolidated financial information.
Authorized Capital 4 6,000,000 6,000,000
Contingencies and Commitments 10 - -
38,500,659 36,149,276
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 11
Intangible assets
Long term investments 12
Long term advances and deposits
CURRENT ASSETS
Stores, spares and loose tools
Stock in trade
Trade debts
Due against construction work in progress
Short term advances
Short term deposits and prepayments
Other receivables
Short term investments
Advance income tax
Cash and bank balances
15,945,178
334,656
10,420
1,144,815
782,256
7,266,744
7,995,578
1,071,423
984,620
1,365,026
440,004
83,925
414,890
661,124
21,065,590
38,500,659
15,509,612
338,321
8,906
861,775
793,379
6,181,986
7,700,374
1,023,647
913,881
1,331,229
390,118
85,524
432,838
577,687
19,430,662
36,149,276
(Un-Audited) (Audited)
March 312016
December 312015Rupees in thousands
Note
Issued, subscribed and paid up capital 5
Capital reserve
Accumulated profit
5,426,392
4,279,947
8,469,550
18,175,889
4,431,029
1,293,858
7,891,437
13,616,324 TOTAL EQUITY
NON-CURRENT LIABILITIES
Redeemable capital 6
Long term finances 7
Liabilities against assets subject to finance lease 8
Deferred taxation
Deferred income
3,697,305
2,063,861
66,276
2,282,467
42,364
3,879,209
2,186,511
61,349
2,261,892
42,900
8,152,273 8,413,861
CURRENT LIABILITIES
Trade and other payables
Accrued interest/mark-up
Short term borrowings 9
Current portion of non-current liabilities
816,033
235,462
4,571,031
1,792,205
7,414,731
815,179
260,904
4,668,901
1,976,655
7,721,639
15,567,004 16,153,500TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
17,435,069 16,718,614
TOTAL ASSETS
CONDENSED INTERIMCONSOLIDATED BALANCE SHEETAS AT MARCH 31, 2016
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
Interim Financial Report March 31, 2016
06 | | 07
Pak Elektron Limited
(Un-Audited) (Audited)
March 312016
December 312015Rupees in thousands
Note
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
ADVANCE AGAINST ISSUE OF ORDINARY SHARES - 1,575,252
SURPLUS ON REVALUATION OFPROPERTY, PLANT AND EQUIPMENT
4,757,766
4,804,200
The annexed notes from 1 to 18 form an integral part of this condensed interim consolidated financial information.
Authorized Capital 4 6,000,000 6,000,000
Contingencies and Commitments 10 - -
38,500,659 36,149,276
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 11
Intangible assets
Long term investments 12
Long term advances and deposits
CURRENT ASSETS
Stores, spares and loose tools
Stock in trade
Trade debts
Due against construction work in progress
Short term advances
Short term deposits and prepayments
Other receivables
Short term investments
Advance income tax
Cash and bank balances
15,945,178
334,656
10,420
1,144,815
782,256
7,266,744
7,995,578
1,071,423
984,620
1,365,026
440,004
83,925
414,890
661,124
21,065,590
38,500,659
15,509,612
338,321
8,906
861,775
793,379
6,181,986
7,700,374
1,023,647
913,881
1,331,229
390,118
85,524
432,838
577,687
19,430,662
36,149,276
(Un-Audited) (Audited)
March 312016
December 312015Rupees in thousands
Note
Issued, subscribed and paid up capital 5
Capital reserve
Accumulated profit
5,426,392
4,279,947
8,469,550
18,175,889
4,431,029
1,293,858
7,891,437
13,616,324 TOTAL EQUITY
NON-CURRENT LIABILITIES
Redeemable capital 6
Long term finances 7
Liabilities against assets subject to finance lease 8
Deferred taxation
Deferred income
3,697,305
2,063,861
66,276
2,282,467
42,364
3,879,209
2,186,511
61,349
2,261,892
42,900
8,152,273 8,413,861
CURRENT LIABILITIES
Trade and other payables
Accrued interest/mark-up
Short term borrowings 9
Current portion of non-current liabilities
816,033
235,462
4,571,031
1,792,205
7,414,731
815,179
260,904
4,668,901
1,976,655
7,721,639
15,567,004 16,153,500TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
17,435,069 16,718,614
TOTAL ASSETS
CONDENSED INTERIM
CONSOLIDATED PROFIT AND LOSS ACCOUNT / STATEMENT OF COMPREHENSIVE INCOME
FOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)
CONDENSED INTERIMCONSOLIDATED CASH FLOW STATEMENTFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)
March 312016
March 312015Rupees in thousands
Cash flows from operating activities
Profit before taxation
Adjustments for non cash and other items
Cash generated from operations before working capital changes
Working capital changes
Cash (used in) / generated from operations
Finance cost paid
Compensated absence paid
Dividend
Income tax paid
Net cash (used in) / operating activitiesgenerated from
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from disposal of property, plant and equipment
(Increase) in long term deposits
Net cash used in investing activities
Cash flows from financing activities
(Decrease) in long term finances
(Decrease) / increase in liabilities against finance lease
Proceeds from issue of ordinary shares
(Decrease) in short term borrowing
Net cash generated from / (used in) financing 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
1,423,146
1,090,153
765,702
657,444
(332,993)
(394,704)
(7,244)
(31,777)
(433,725)
656,428
(120,171)
2,522
(5,215)
(122,864)
(126,360)
7,606
-
(434,152)
(552,906)
(19,342)
340,086
320,744
The annexed notes from 1 to 18 form an integral part of this condensed interim consolidated financial information.
739,412
510,303
1,249,715
(1,569,309)
(319,594)
(327,700)
(2,542)
(873)
(176,011)
(507,126)
(826,720)
(580,515)
18,073
(283,040)
(845,482)
(507,574)
(45,116)
2,406,200
(97,870)
1,755,640
83,438
577,687
661,124
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
Interim Financial Report March 31, 2016
08 | | 09
Pak Elektron Limited
March 312016
March 312015Rupees in thousands
Note
Revenue 13
Sales tax and discount 13
Revenue - net
Cost of sales 14
Gross profit
Other income
Distribution cost
Finance cost
Share of loss of associate
Profit before taxation
Provision for taxation
Profit after taxation
Other comprehensive income
Earnings per share - basic and diluted 15
7,749,528
(1,251,249)
6,498,279
(4,746,189)
1,752,090
11,710
1,763,800
(353,842)
(394,300)
(682)
739,412
(207,848)
531,564
-
531,564
1.20
5,868,729
(925,710)
4,943,019
(3,263,939)
1,679,080
6,526
1,685,606
(254,991)
Administrative cost (237,962) (188,526)
Other expenses (37,602) (2,800)
(471,148)
(2,439)
765,702
(33,091)
732,611
-
732,611
1.68
The annexed notes from 1 to 18 form an integral part of this condensed interim consolidated financial information.
Total Comprehensive income for the period
(629,406) (446,317)
740,094 768,141
Operating profit 1,134,394 1,239,289
-
CONDENSED INTERIM
CONSOLIDATED PROFIT AND LOSS ACCOUNT / STATEMENT OF COMPREHENSIVE INCOME
FOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)
CONDENSED INTERIMCONSOLIDATED CASH FLOW STATEMENTFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)
March 312016
March 312015Rupees in thousands
Cash flows from operating activities
Profit before taxation
Adjustments for non cash and other items
Cash generated from operations before working capital changes
Working capital changes
Cash (used in) / generated from operations
Finance cost paid
Compensated absence paid
Dividend
Income tax paid
Net cash (used in) / operating activitiesgenerated from
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from disposal of property, plant and equipment
(Increase) in long term deposits
Net cash used in investing activities
Cash flows from financing activities
(Decrease) in long term finances
(Decrease) / increase in liabilities against finance lease
Proceeds from issue of ordinary shares
(Decrease) in short term borrowing
Net cash generated from / (used in) financing 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
1,423,146
1,090,153
765,702
657,444
(332,993)
(394,704)
(7,244)
(31,777)
(433,725)
656,428
(120,171)
2,522
(5,215)
(122,864)
(126,360)
7,606
-
(434,152)
(552,906)
(19,342)
340,086
320,744
The annexed notes from 1 to 18 form an integral part of this condensed interim consolidated financial information.
739,412
510,303
1,249,715
(1,569,309)
(319,594)
(327,700)
(2,542)
(873)
(176,011)
(507,126)
(826,720)
(580,515)
18,073
(283,040)
(845,482)
(507,574)
(45,116)
2,406,200
(97,870)
1,755,640
83,438
577,687
661,124
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
Interim Financial Report March 31, 2016
08 | | 09
Pak Elektron Limited
March 312016
March 312015Rupees in thousands
Note
Revenue 13
Sales tax and discount 13
Revenue - net
Cost of sales 14
Gross profit
Other income
Distribution cost
Finance cost
Share of loss of associate
Profit before taxation
Provision for taxation
Profit after taxation
Other comprehensive income
Earnings per share - basic and diluted 15
7,749,528
(1,251,249)
6,498,279
(4,746,189)
1,752,090
11,710
1,763,800
(353,842)
(394,300)
(682)
739,412
(207,848)
531,564
-
531,564
1.20
5,868,729
(925,710)
4,943,019
(3,263,939)
1,679,080
6,526
1,685,606
(254,991)
Administrative cost (237,962) (188,526)
Other expenses (37,602) (2,800)
(471,148)
(2,439)
765,702
(33,091)
732,611
-
732,611
1.68
The annexed notes from 1 to 18 form an integral part of this condensed interim consolidated financial information.
Total Comprehensive income for the period
(629,406) (446,317)
740,094 768,141
Operating profit 1,134,394 1,239,289
-
CONDENSED INTERIMCONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE QUARTER ENDED MARCH 31, 2016
Balance as at December 31, 2014 - (Audited)
Total comprehensive income for the period
Incremental depreciation
Balance as at March 31, 2015 - (Un-audited)
Total comprehensive income for the period
Incremental depreciation
Dividend on ordinary shares
Balance as at December 31, 2015 - (Audited)
Total comprehensive income for the period.
Issue of right ordinary shares
Incremental depreciation
Balance as at March 31, 2016 - (Un-audited)
Rupees in thousand
Revenue reserves
Premium on
issue of shares
1,293,858
-
-
1,293,858
-
-
1,293,858
-
2,986,089
-
4,279,947
Total
11,026,441
732,611
52,009
11,811,061
2,147,410
155,535
(497,682)
13,616,324
531,564
3,981,452
46,550
18,175,889
4,431,029
-
-
4,431,029
-
-
4,431,029
-
995,363
-
5,426,392
Share capital
Capital reserves
5,301,554
732,611
52,009
6,086,174
2,147,410
155,535
(497,682)
7,891,437
531,564
46,550
8,469,550
Unappropriatedprofit
The annexed notes from 1 to 18 form an integral part of this condensed interim consolidated financial information.
1 REPORTING ENTITY
2 BASIS OF PREPARATION
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 Limited. 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 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 marketing and sale of 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, 2015.
The comparative interim consolidated balance sheet as at December 31, 2015 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 three months ended March 31, 2015 are based on unaudited interim financial information.
2.1 Statement of compliance
This condensed interim consolidated financial information has been prepared in accordance with the requirements of International Accounting Standard 34 - Interim Financial Reporting, and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of and directives issued under the Companies Ordinance, 1984 have been followed.
NOTES TO THE CONDENSED INTERIMCONSOLIDATED FINANCIAL INFORMATIONFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
Interim Financial Report March 31, 2016
10 | | 11
Pak Elektron Limited
CONDENSED INTERIMCONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE QUARTER ENDED MARCH 31, 2016
Balance as at December 31, 2014 - (Audited)
Total comprehensive income for the period
Incremental depreciation
Balance as at March 31, 2015 - (Un-audited)
Total comprehensive income for the period
Incremental depreciation
Dividend on ordinary shares
Balance as at December 31, 2015 - (Audited)
Total comprehensive income for the period.
Issue of right ordinary shares
Incremental depreciation
Balance as at March 31, 2016 - (Un-audited)
Rupees in thousand
Revenue reserves
Premium on
issue of shares
1,293,858
-
-
1,293,858
-
-
1,293,858
-
2,986,089
-
4,279,947
Total
11,026,441
732,611
52,009
11,811,061
2,147,410
155,535
(497,682)
13,616,324
531,564
3,981,452
46,550
18,175,889
4,431,029
-
-
4,431,029
-
-
4,431,029
-
995,363
-
5,426,392
Share capital
Capital reserves
5,301,554
732,611
52,009
6,086,174
2,147,410
155,535
(497,682)
7,891,437
531,564
46,550
8,469,550
Unappropriatedprofit
The annexed notes from 1 to 18 form an integral part of this condensed interim consolidated financial information.
1 REPORTING ENTITY
2 BASIS OF PREPARATION
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 Limited. 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 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 marketing and sale of 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, 2015.
The comparative interim consolidated balance sheet as at December 31, 2015 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 three months ended March 31, 2015 are based on unaudited interim financial information.
2.1 Statement of compliance
This condensed interim consolidated financial information has been prepared in accordance with the requirements of International Accounting Standard 34 - Interim Financial Reporting, and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of and directives issued under the Companies Ordinance, 1984 have been followed.
NOTES TO THE CONDENSED INTERIMCONSOLIDATED FINANCIAL INFORMATIONFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
Interim Financial Report March 31, 2016
10 | | 11
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 Functional currency
This financial information is prepared in Pak Rupees which is the Group's functional currency.
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, 2015.
3 ACCOUNTING POLICIES AND METHODS OF COMPUTATION
5 ISSUED, SUBSCRIBED AND PAID UP CAPITAL
372,751,051 273,214,754
137,500 137,500
408,273 408,273
6,040,820 6,040,820
118,343,841 118,343,841
497,681,485 398,145,188
44,957,592 44,957,592
542,639,077 443,102,780
3,727,511 2,732,148
1,375 1,375
4,083 4,083
60,408 60,408
1,183,439 1,183,439
4,976,816 3,981,453
Issued for cash
Issued for other than cash
-against machinery
-Issued as bonus shares
A class preference shares of Rs 10 each
-against conversion of preference shares
Ordinary shares of Rs.10 each
-against acquisition of
PEL Appliances Limited
Issued for cash 449,576 449,576
5,426,392 4,431,029
4 AUTHORIZED CAPITAL
62,500,000
37,500,000
100,000,000
600,000,000
(Un-Audited) (Audited)
March 31 December 31
2016 2015
Rupees in thousand
March 31
2016
Number of shares
500,000,000 500,000,000
62,500,000
37,500,000
100,000,000
600,000,000
December 31
2015
5,000,000 5,000,000
625,000
625,000
375,000
375,000
1,000,000 1,000,000
6,000,000 6,000,000
Ordinary shares of Rs. 10 each
'A' class preference shares of Rs. 10 each
'B' class preference shares of Rs. 10 each
Interim Financial Report March 31, 2016
12 | | 13
Pak Elektron Limited
398,145,188
-
398,145,188
5,629,976
(674,491)
(1,076,276)
3,879,209
398,145,188
99,536,297
497,681,485
4,955,485
1,856
(272,093)
(987,943)
3,697,305
5.1 Reconciliation of number of ordinary shares
As at beginning of the period / year
Add: Issued during the year as right ordinary shares
6 REDEEMABLE CAPITAL
As at beginning of the period / year
Issued during the period / year
Redeemed during the year
Current portion presented under current liabilities
As at end of the period / year
(Un-Audited) (Audited)
March 31 December 31
2016 2015Number of shares
(Un-Audited) (Audited)
March 31 December 31
2016 2015Rupees in thousands
4,955,4854,685,248
-
7 LONG-TERM FINANCES - SECURED
Obtained during the period / year
Repaid during the period / year
8 LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE
Present value of minimum lease payments
As at beginning of the period / year
Current portion presented under current liabilities
(830,916)
2,186,511
130,812
(69,463)
61,349
2,062,633
(2,147,266)
3,102,060
3,017,427
(716,229)
2,063,861
154,309
(88,033)
66,276
-
(237,338)
3,017,428
2,780,090
Current portion presented under current liabilities
As at end of the period / year
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 Functional currency
This financial information is prepared in Pak Rupees which is the Group's functional currency.
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, 2015.
3 ACCOUNTING POLICIES AND METHODS OF COMPUTATION
5 ISSUED, SUBSCRIBED AND PAID UP CAPITAL
372,751,051 273,214,754
137,500 137,500
408,273 408,273
6,040,820 6,040,820
118,343,841 118,343,841
497,681,485 398,145,188
44,957,592 44,957,592
542,639,077 443,102,780
3,727,511 2,732,148
1,375 1,375
4,083 4,083
60,408 60,408
1,183,439 1,183,439
4,976,816 3,981,453
Issued for cash
Issued for other than cash
-against machinery
-Issued as bonus shares
A class preference shares of Rs 10 each
-against conversion of preference shares
Ordinary shares of Rs.10 each
-against acquisition of
PEL Appliances Limited
Issued for cash 449,576 449,576
5,426,392 4,431,029
4 AUTHORIZED CAPITAL
62,500,000
37,500,000
100,000,000
600,000,000
(Un-Audited) (Audited)
March 31 December 31
2016 2015
Rupees in thousand
March 31
2016
Number of shares
500,000,000 500,000,000
62,500,000
37,500,000
100,000,000
600,000,000
December 31
2015
5,000,000 5,000,000
625,000
625,000
375,000
375,000
1,000,000 1,000,000
6,000,000 6,000,000
Ordinary shares of Rs. 10 each
'A' class preference shares of Rs. 10 each
'B' class preference shares of Rs. 10 each
Interim Financial Report March 31, 2016
12 | | 13
Pak Elektron Limited
398,145,188
-
398,145,188
5,629,976
(674,491)
(1,076,276)
3,879,209
398,145,188
99,536,297
497,681,485
4,955,485
1,856
(272,093)
(987,943)
3,697,305
5.1 Reconciliation of number of ordinary shares
As at beginning of the period / year
Add: Issued during the year as right ordinary shares
6 REDEEMABLE CAPITAL
As at beginning of the period / year
Issued during the period / year
Redeemed during the year
Current portion presented under current liabilities
As at end of the period / year
(Un-Audited) (Audited)
March 31 December 31
2016 2015Number of shares
(Un-Audited) (Audited)
March 31 December 31
2016 2015Rupees in thousands
4,955,4854,685,248
-
7 LONG-TERM FINANCES - SECURED
Obtained during the period / year
Repaid during the period / year
8 LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE
Present value of minimum lease payments
As at beginning of the period / year
Current portion presented under current liabilities
(830,916)
2,186,511
130,812
(69,463)
61,349
2,062,633
(2,147,266)
3,102,060
3,017,427
(716,229)
2,063,861
154,309
(88,033)
66,276
-
(237,338)
3,017,428
2,780,090
Current portion presented under current liabilities
As at end of the period / year
8,906
8,906
(1,356)
54,701
53,345
44,439
8,906
10,420
10,420
54,701
(2,038)
52,663
42,243
10,420
12 LONG TERM INVESTMENTS
Kohinoor Power Company Limited
Ownership interest 23.10 %
Cost of investment
2,910,600 shares (December 31, 2015: 2,910,600 shares)
Share of post acquisition profit- net of dividend received
Less: provision for impairment in value of investment
Investment in associate at equity method - Quoted
Interim Financial Report March 31, 2016
14 | | 15
Pak Elektron Limited
9 SHORT TERM BORROWING
10 CONTINGENCIES AND COMMITMENTS
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 Group.
There is no material change in contingencies and commitments as disclosed in the notes to the financial statements for the year ended December 31, 2015.
11 PROPERTY, PLANT AND EQUIPMENT
Operating assets 11.1
Capital work-in-progress
15,446,464
63,148
15,509,612
15,326,029
619,149
15,945,178
14,407,147
1,905,504
16,312,651
126,445
739,742
15,446,464
1,823,488
8,208
19,266
54,542
1,905,504
15,446,465
93,126
15,539,591
17,965
195,597
15,326,029
52,528
1,811
2,855
35,932
93,126
11.1 Operating assets
Written down value at beginning of the period / year
Additions during the period / year 11.1.1
Written down value of the assets disposed off / adjustments
Depreciation charged during the period / year
11.1.1 Additions during the period / year
Plant and machinery
Office equipment and furniture
Computer hardware and allied items
Vehicles
(Un-Audited) (Audited)
March 31 December 31
2016 2015Rupees in thousands Note
(Un-Audited) (Audited)
March 31 December 31
2016 2015Rupees in thousands Note
13 REVENUE
Sales - local 5,620,861
Sales - export 247,868
5,868,729
Less: - sales tax and excise duty 639,654
- trade discounts 286,056
925,710
4,943,019
6,380,908
1,368,620
7,749,528
866,587
384,662
1,251,249
6,498,279
March 31 March 31
2016 2015
(Un-Audited)
Rupees in thousand
(Un-Audited)
8,906
8,906
(1,356)
54,701
53,345
44,439
8,906
10,420
10,420
54,701
(2,038)
52,663
42,243
10,420
12 LONG TERM INVESTMENTS
Kohinoor Power Company Limited
Ownership interest 23.10 %
Cost of investment
2,910,600 shares (December 31, 2015: 2,910,600 shares)
Share of post acquisition profit- net of dividend received
Less: provision for impairment in value of investment
Investment in associate at equity method - Quoted
Interim Financial Report March 31, 2016
14 | | 15
Pak Elektron Limited
9 SHORT TERM BORROWING
10 CONTINGENCIES AND COMMITMENTS
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 Group.
There is no material change in contingencies and commitments as disclosed in the notes to the financial statements for the year ended December 31, 2015.
11 PROPERTY, PLANT AND EQUIPMENT
Operating assets 11.1
Capital work-in-progress
15,446,464
63,148
15,509,612
15,326,029
619,149
15,945,178
14,407,147
1,905,504
16,312,651
126,445
739,742
15,446,464
1,823,488
8,208
19,266
54,542
1,905,504
15,446,465
93,126
15,539,591
17,965
195,597
15,326,029
52,528
1,811
2,855
35,932
93,126
11.1 Operating assets
Written down value at beginning of the period / year
Additions during the period / year 11.1.1
Written down value of the assets disposed off / adjustments
Depreciation charged during the period / year
11.1.1 Additions during the period / year
Plant and machinery
Office equipment and furniture
Computer hardware and allied items
Vehicles
(Un-Audited) (Audited)
March 31 December 31
2016 2015Rupees in thousands Note
(Un-Audited) (Audited)
March 31 December 31
2016 2015Rupees in thousands Note
13 REVENUE
Sales - local 5,620,861
Sales - export 247,868
5,868,729
Less: - sales tax and excise duty 639,654
- trade discounts 286,056
925,710
4,943,019
6,380,908
1,368,620
7,749,528
866,587
384,662
1,251,249
6,498,279
March 31 March 31
2016 2015
(Un-Audited)
Rupees in thousand
(Un-Audited)
12,903 10,955
413 552
Other related parties:
24,335 19,840
Relationship Nature of transaction
Key Management Personnel Short-term employee benefits
Post employment benefits
Associated companies Services acquired
15
Earnings 531,564 732,611
Less: dividend on preference shares 10,677 10,677
520,886 721,934
Number of shares
434,622,427
429,722,619
Basic earnings per share (Rupees) 1.20 1.68
Number
Weighted average number of ordinary shares.
EARNINGS PER SHARE - BASIC AND DILUTED
Basic and diluted earnings per share have been calculated through dividing Profit as stated above by weighted average number of ordinary shares.
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:
16.1All transactions with related parties have been carried out on commercial terms and conditions.
This condensed interim financial information has been approved by the Board of Directors of the Company and authorized for issue on April 26 , 2016.
There are no other significant activities since December 31, 2015 affecting this condensed interim financial information.
17 DATE OF AUTHORIZATION FOR ISSUE
18 OTHERS
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
Interim Financial Report March 31, 2016
16 | | 17
Pak Elektron Limited
March 31 March 31
2016 2015
(Un-Audited)
Rupees in thousand
(Un-Audited)
14 COST OF SALES
Raw material consumed
Direct wages
Factory overhead
Work-in-process
-at beginning of period
-at end of period
Cost of goods manufactured
Finished goods
-at beginning of period
-at end of period
Cost of sales
2,568,541
156,406
445,258
3,170,205
1,262,830
(1,138,270)
124,560
3,294,765
877,488
(908,314)
(30,826)
3,263,939
3,918,060
183,294
522,626
4,623,980
1,143,657
(841,205)
302,452
4,926,432
1,125,190
(1,305,433)
(180,243)
4,746,189
March 31 March 31
2016 2015
(Un-Audited)
Rupees in thousand
(Un-Audited)
12,903 10,955
413 552
Other related parties:
24,335 19,840
Relationship Nature of transaction
Key Management Personnel Short-term employee benefits
Post employment benefits
Associated companies Services acquired
15
Earnings 531,564 732,611
Less: dividend on preference shares 10,677 10,677
520,886 721,934
Number of shares
434,622,427
429,722,619
Basic earnings per share (Rupees) 1.20 1.68
Number
Weighted average number of ordinary shares.
EARNINGS PER SHARE - BASIC AND DILUTED
Basic and diluted earnings per share have been calculated through dividing Profit as stated above by weighted average number of ordinary shares.
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:
16.1All transactions with related parties have been carried out on commercial terms and conditions.
This condensed interim financial information has been approved by the Board of Directors of the Company and authorized for issue on April 26 , 2016.
There are no other significant activities since December 31, 2015 affecting this condensed interim financial information.
17 DATE OF AUTHORIZATION FOR ISSUE
18 OTHERS
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
Interim Financial Report March 31, 2016
16 | | 17
Pak Elektron Limited
March 31 March 31
2016 2015
(Un-Audited)
Rupees in thousand
(Un-Audited)
14 COST OF SALES
Raw material consumed
Direct wages
Factory overhead
Work-in-process
-at beginning of period
-at end of period
Cost of goods manufactured
Finished goods
-at beginning of period
-at end of period
Cost of sales
2,568,541
156,406
445,258
3,170,205
1,262,830
(1,138,270)
124,560
3,294,765
877,488
(908,314)
(30,826)
3,263,939
3,918,060
183,294
522,626
4,623,980
1,143,657
(841,205)
302,452
4,926,432
1,125,190
(1,305,433)
(180,243)
4,746,189
March 31 March 31
2016 2015
(Un-Audited)
Rupees in thousand
(Un-Audited)
Condensed InterimFinancial Information
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18 |
Pak Elektron Limited
Condensed InterimFinancial Information
This page has been left blank intentionally
18 |
Pak Elektron Limited
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 11
Intangible assets
Long term investments 12
Long term advances and deposits
CURRENT ASSETS
Stores, spares and loose tools
Stock in trade
Trade debts
Due against construction work in progress
Short term advances
Short term deposits and prepayments
Other receivables
Short term investments
Advance income tax
Cash and bank balances
15,945,178
334,656
10,520
357,598
782,256
6,459,376
5,770,543
1,071,423
984,620
1,365,026
440,003
83,925
930,138
551,695
18,439,005
35,086,957
15,509,612
338,321
9,006
289,784
793,379
5,485,816
5,583,326
1,023,647
913,881
1,331,229
390,118
85,524
793,282
427,378
16,827,580
32,974,303
(Un-Audited) (Audited)
March 312016
December 312015Rupees in thousands
Note
16,647,952 16,146,723
TOTAL ASSETS
(Un-Audited) (Audited)
March 312016
December 312015Rupees in thousands
Note
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
ADVANCE AGAINST ISSUE OF ORDINARY SHARES - 1,575,252
SURPLUS ON REVALUATION OFPROPERTY, PLANT AND EQUIPMENT
4,757,766
4,804,200
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information.
Authorized Capital 4 6,000,000 6,000,000
Contingencies and Commitments 10 - -
35,086,957
Issued, subscribed and paid up capital 5
Capital reserve
Accumulated profit
5,426,392
4,279,947
5,608,651
15,314,990
4,431,029
1,293,858
5,258,423
10,983,310 TOTAL EQUITY
NON-CURRENT LIABILITIES
Redeemable capital 6
Long term finances 7
Liabilities against assets subject to finance lease 8
Deferred taxation
Deferred income
3,697,305
2,063,861
66,276
1,793,623
42,364
3,879,209
2,186,511
61,349
1,804,911
42,900
7,663,429 7,974,880
CURRENT LIABILITIES
Trade and other payables
Accrued interest/mark-up
Short term borrowings 9
Current portion of non-current liabilities
752,074
235,462
4,571,031
1,792,205
7,350,772
730,201
260,904
4,668,901
1,976,655
7,636,661
15,014,201 15,611,541TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
(Un-Audited) (Audited)
March 31,2016
December 31,2015Rupees in thousands
Note
CONDENSED INTERIMBALANCE SHEET
AS AT MARCH 31, 2016
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
Interim Financial Report March 31, 2016
20 | | 21
Pak Elektron Limited
32,974,303
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 11
Intangible assets
Long term investments 12
Long term advances and deposits
CURRENT ASSETS
Stores, spares and loose tools
Stock in trade
Trade debts
Due against construction work in progress
Short term advances
Short term deposits and prepayments
Other receivables
Short term investments
Advance income tax
Cash and bank balances
15,945,178
334,656
10,520
357,598
782,256
6,459,376
5,770,543
1,071,423
984,620
1,365,026
440,003
83,925
930,138
551,695
18,439,005
35,086,957
15,509,612
338,321
9,006
289,784
793,379
5,485,816
5,583,326
1,023,647
913,881
1,331,229
390,118
85,524
793,282
427,378
16,827,580
32,974,303
(Un-Audited) (Audited)
March 312016
December 312015Rupees in thousands
Note
16,647,952 16,146,723
TOTAL ASSETS
(Un-Audited) (Audited)
March 312016
December 312015Rupees in thousands
Note
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
ADVANCE AGAINST ISSUE OF ORDINARY SHARES - 1,575,252
SURPLUS ON REVALUATION OFPROPERTY, PLANT AND EQUIPMENT
4,757,766
4,804,200
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information.
Authorized Capital 4 6,000,000 6,000,000
Contingencies and Commitments 10 - -
35,086,957
Issued, subscribed and paid up capital 5
Capital reserve
Accumulated profit
5,426,392
4,279,947
5,608,651
15,314,990
4,431,029
1,293,858
5,258,423
10,983,310 TOTAL EQUITY
NON-CURRENT LIABILITIES
Redeemable capital 6
Long term finances 7
Liabilities against assets subject to finance lease 8
Deferred taxation
Deferred income
3,697,305
2,063,861
66,276
1,793,623
42,364
3,879,209
2,186,511
61,349
1,804,911
42,900
7,663,429 7,974,880
CURRENT LIABILITIES
Trade and other payables
Accrued interest/mark-up
Short term borrowings 9
Current portion of non-current liabilities
752,074
235,462
4,571,031
1,792,205
7,350,772
730,201
260,904
4,668,901
1,976,655
7,636,661
15,014,201 15,611,541TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
(Un-Audited) (Audited)
March 31,2016
December 31,2015Rupees in thousands
Note
CONDENSED INTERIMBALANCE SHEET
AS AT MARCH 31, 2016
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
Interim Financial Report March 31, 2016
20 | | 21
Pak Elektron Limited
32,974,303
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
CONDENSED INTERIMCASH FLOW STATEMENTFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)
March 31,2016
March 31,2015Rupees in thousands
CONDENSED INTERIM
PROFIT AND LOSS ACCOUNT / STATEMENT OF COMPREHENSIVE INCOMEFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)
Cash flows from operating activities
Profit before taxation
Adjustments for non cash items
Cash generated from operations before working capital changes
Working capital changes
Cash (used in) / generated from operations
Finance cost paid
Compensated absence paid
Dividend
Income tax paid
Net cash (used in) / generated from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from disposal of property, plant and equipment
(Decrease) in long term deposits
Net cash used in investing activities
Cash flows from financing activities
(Decrease) in long term finances
(Decrease) / in liabilities against finance leaseincrease
Proceeds from issue of ordinary shares
(Decrease) in short term borrowings
Net cash generated from / (used in) financing 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
365,877
472,055
837,932
(1,370,119)
(532,187)
(289,453)
(2,542)
(873)
(176,013)
(468,880)
(1,001,067)
(580,515)
18,073
(67,814)
(630,256)
(507,574)
(45,116)
2,406,200
(97,870)
1,755,640
124,317
427,378
551,695
397,242
482,136
879,378
33,008
912,386
(219,396)
(7,244)
-
(31,777)
(258,417)
653,969
(120,172)
2,521
(5,215)
(122,866)
(126,360)
7,606
-
(436,194)
(554,948)
(23,845)
287,935
264,090
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
Interim Financial Report March 31, 2016
22 | | 23
Pak Elektron Limited
March 312016
March 312015Rupees in thousands
Note
Revenue 13
Sales tax and discount 13
Revenue - net
Cost of sales 14
Gross profit
Other income
Distribution cost
Finance cost
Profit before taxation
Provision for taxation
Profit after taxation
Other comprehensive income
Earnings per share - basic and diluted - Rupees 15
5,623,535
(866,587)
4,756,948
(3,866,448)
890,500
11,028
901,528
(108,458)
(264,011)
365,877
(62,199)
303,678
-
303,678
0.67
4,637,494
(639,654)
3,997,840
(3,110,319)
887,521
5,455
892,976
(87,952)
Administrative cost (134,622) (109,141)
Other expenses (28,561) (2,800)
(295,841)
397,242
(21,453)
375,789
-
375,789
0.85
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information.
Total Comprehensive income for the period
(271,641) (199,893)
Operating profit 629,888 693,083
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
CONDENSED INTERIMCASH FLOW STATEMENTFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)
March 31,2016
March 31,2015Rupees in thousands
CONDENSED INTERIM
PROFIT AND LOSS ACCOUNT / STATEMENT OF COMPREHENSIVE INCOMEFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)
Cash flows from operating activities
Profit before taxation
Adjustments for non cash items
Cash generated from operations before working capital changes
Working capital changes
Cash (used in) / generated from operations
Finance cost paid
Compensated absence paid
Dividend
Income tax paid
Net cash (used in) / generated from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from disposal of property, plant and equipment
(Decrease) in long term deposits
Net cash used in investing activities
Cash flows from financing activities
(Decrease) in long term finances
(Decrease) / in liabilities against finance leaseincrease
Proceeds from issue of ordinary shares
(Decrease) in short term borrowings
Net cash generated from / (used in) financing 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
365,877
472,055
837,932
(1,370,119)
(532,187)
(289,453)
(2,542)
(873)
(176,013)
(468,880)
(1,001,067)
(580,515)
18,073
(67,814)
(630,256)
(507,574)
(45,116)
2,406,200
(97,870)
1,755,640
124,317
427,378
551,695
397,242
482,136
879,378
33,008
912,386
(219,396)
(7,244)
-
(31,777)
(258,417)
653,969
(120,172)
2,521
(5,215)
(122,866)
(126,360)
7,606
-
(436,194)
(554,948)
(23,845)
287,935
264,090
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
Interim Financial Report March 31, 2016
22 | | 23
Pak Elektron Limited
March 312016
March 312015Rupees in thousands
Note
Revenue 13
Sales tax and discount 13
Revenue - net
Cost of sales 14
Gross profit
Other income
Distribution cost
Finance cost
Profit before taxation
Provision for taxation
Profit after taxation
Other comprehensive income
Earnings per share - basic and diluted - Rupees 15
5,623,535
(866,587)
4,756,948
(3,866,448)
890,500
11,028
901,528
(108,458)
(264,011)
365,877
(62,199)
303,678
-
303,678
0.67
4,637,494
(639,654)
3,997,840
(3,110,319)
887,521
5,455
892,976
(87,952)
Administrative cost (134,622) (109,141)
Other expenses (28,561) (2,800)
(295,841)
397,242
(21,453)
375,789
-
375,789
0.85
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information.
Total Comprehensive income for the period
(271,641) (199,893)
Operating profit 629,888 693,083
CONDENSED INTERIMCONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE QUARTER ENDED MARCH 31, 2016
Revenue reserves
Premium on
issue of shares TotalShare capital
Capital reserves
Unappropriatedprofit
Rupees in thousand
Balance as at December 31, 2014 - (Audited)
Total comprehensive income for the period
Incremental depreciation
Balance as at March 31, 2015 - (Un-audited)
Total comprehensive income for the period
Incremental depreciation
Dividend on ordinary shares
Balance as at December 31, 2015 - (Audited)
Total comprehensive income for the period
Issue of right ordinary shares
Incremental depreciation
Balance as at March 31, 2016 - (Un-audited)
4,431,029
-
-
-
4,431,029
- -
4,431,029
-
995,363
-
5,426,392
1,293,858
-
-
-
1,293,858
- -
1,293,858
-
2,986,089
-
4,279,947
3,876,195
375,789
-
52,009
4,303,993
1,296,577 155,535
(497,682) 5,258,423
303,678
46,550
5,608,651
9,601,082
375,789
-
52,009
10,028,880
1,296,577 155,535
(497,682)
10,983,310
303,678
3,981,452
46,550
15,314,989
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)
1 REPORTING ENTITY
2 BASIS OF PREPARATION
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 Exchange Limited. 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, microwave ovens, televisions, generators and washing machines.
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 company for the year ended December 31, 2015.
The comparative interim consolidated balance sheet as at December 31, 2015 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 three months ended March 31, 2015 are based on unaudited interim financial information.
2.1 Statement of compliance
This condensed interim consolidated financial information has been prepared in accordance with the requirements of International Accounting Standard 34 - Interim Financial Reporting, and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of and directives issued under the Companies Ordinance, 1984 have been followed.
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 Functional currency
This financial information is prepared in Pak Rupees which is the Company's functional currency.M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
Interim Financial Report March 31, 2016
24 | | 25
Pak Elektron Limited
CONDENSED INTERIMCONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE QUARTER ENDED MARCH 31, 2016
Revenue reserves
Premium on
issue of shares TotalShare capital
Capital reserves
Unappropriatedprofit
Rupees in thousand
Balance as at December 31, 2014 - (Audited)
Total comprehensive income for the period
Incremental depreciation
Balance as at March 31, 2015 - (Un-audited)
Total comprehensive income for the period
Incremental depreciation
Dividend on ordinary shares
Balance as at December 31, 2015 - (Audited)
Total comprehensive income for the period
Issue of right ordinary shares
Incremental depreciation
Balance as at March 31, 2016 - (Un-audited)
4,431,029
-
-
-
4,431,029
- -
4,431,029
-
995,363
-
5,426,392
1,293,858
-
-
-
1,293,858
- -
1,293,858
-
2,986,089
-
4,279,947
3,876,195
375,789
-
52,009
4,303,993
1,296,577 155,535
(497,682) 5,258,423
303,678
46,550
5,608,651
9,601,082
375,789
-
52,009
10,028,880
1,296,577 155,535
(497,682)
10,983,310
303,678
3,981,452
46,550
15,314,989
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)
1 REPORTING ENTITY
2 BASIS OF PREPARATION
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 Exchange Limited. 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, microwave ovens, televisions, generators and washing machines.
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 company for the year ended December 31, 2015.
The comparative interim consolidated balance sheet as at December 31, 2015 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 three months ended March 31, 2015 are based on unaudited interim financial information.
2.1 Statement of compliance
This condensed interim consolidated financial information has been prepared in accordance with the requirements of International Accounting Standard 34 - Interim Financial Reporting, and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of and directives issued under the Companies Ordinance, 1984 have been followed.
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 Functional currency
This financial information is prepared in Pak Rupees which is the Company's functional currency.M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
Interim Financial Report March 31, 2016
24 | | 25
Pak Elektron Limited
3 ACCOUNTING POLICIES
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, 2015.
Interim Financial Report March 31, 2016
26 | | 27
Pak Elektron Limited
5 ISSUED, SUBSCRIBED AND PAID UP CAPITAL
372,751,051 273,214,754
137,500 137,500
408,273 408,273
6,040,820 6,040,820
118,343,841 118,343,841
497,681,485 398,145,188
44,957,592 44,957,592
542,639,077 443,102,780
3,727,511 2,732,148
1,375 1,375
4,083 4,083
60,408 60,408
1,183,439 1,183,439
4,976,816 3,981,453
Issued for cash
Issued for other than cash
-against machinery
-Issued as bonus shares
A class preference shares of Rs 10 each
-against conversion of preference shares
Ordinary shares of Rs.10 each
-against acquisition of
PEL Appliances Limited
Issued for cash 449,576 449,576
5,426,392 4,431,029
4 AUTHORIZED CAPITAL
62,500,000
37,500,000
100,000,000
600,000,000
(Un-Audited) (Audited)
March 31 December 31
2016 2015
Rupees in thousand
March 31
2016
Number of shares
500,000,000 500,000,000
62,500,000
37,500,000
100,000,000
600,000,000
December 31
2015
5,000,000 5,000,000
625,000
625,000
375,000
375,000
1,000,000 1,000,000
6,000,000 6,000,000
Ordinary shares of Rs. 10 each
'A' class preference shares of Rs. 10 each
'B' class preference shares of Rs. 10 each
398,145,188
-
398,145,188
5,629,976
(674,491)
(1,076,276)
3,879,209
398,145,188
99,536,297
497,681,485
4,955,485
1,856
(272,093)
(987,943)
3,697,305
5.1 Reconciliation of number of ordinary shares
As at beginning of the period / year
Add: Issued during the year as right ordinary shares
6 REDEEMABLE CAPITAL
As at beginning of the period / year
Issued during the period / year
Redeemed during the year
Current portion presented under current liabilities
As at end of the period / year
(Un-Audited) (Audited)
March 31 December 31
2016 2015Number of shares
(Un-Audited) (Audited)
March 31 December 31
2016 2015Rupees in thousands
4,955,4854,685,248
-
7 LONG-TERM FINANCES - SECURED
Obtained during the period / year
Repaid during the period / year
8 LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE
Present value of minimum lease payments
As at beginning of the period / year
Current portion presented under current liabilities
(830,916)
2,186,511
130,812
(69,463)
61,349
2,062,633
(2,147,266)
3,102,060
3,017,427
(716,229)
2,063,861
154,309
(88,033)
66,276
-
(237,338)
3,017,428
2,780,090
Current portion presented under current liabilities
As at end of the period / year
3 ACCOUNTING POLICIES
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, 2015.
Interim Financial Report March 31, 2016
26 | | 27
Pak Elektron Limited
5 ISSUED, SUBSCRIBED AND PAID UP CAPITAL
372,751,051 273,214,754
137,500 137,500
408,273 408,273
6,040,820 6,040,820
118,343,841 118,343,841
497,681,485 398,145,188
44,957,592 44,957,592
542,639,077 443,102,780
3,727,511 2,732,148
1,375 1,375
4,083 4,083
60,408 60,408
1,183,439 1,183,439
4,976,816 3,981,453
Issued for cash
Issued for other than cash
-against machinery
-Issued as bonus shares
A class preference shares of Rs 10 each
-against conversion of preference shares
Ordinary shares of Rs.10 each
-against acquisition of
PEL Appliances Limited
Issued for cash 449,576 449,576
5,426,392 4,431,029
4 AUTHORIZED CAPITAL
62,500,000
37,500,000
100,000,000
600,000,000
(Un-Audited) (Audited)
March 31 December 31
2016 2015
Rupees in thousand
March 31
2016
Number of shares
500,000,000 500,000,000
62,500,000
37,500,000
100,000,000
600,000,000
December 31
2015
5,000,000 5,000,000
625,000
625,000
375,000
375,000
1,000,000 1,000,000
6,000,000 6,000,000
Ordinary shares of Rs. 10 each
'A' class preference shares of Rs. 10 each
'B' class preference shares of Rs. 10 each
398,145,188
-
398,145,188
5,629,976
(674,491)
(1,076,276)
3,879,209
398,145,188
99,536,297
497,681,485
4,955,485
1,856
(272,093)
(987,943)
3,697,305
5.1 Reconciliation of number of ordinary shares
As at beginning of the period / year
Add: Issued during the year as right ordinary shares
6 REDEEMABLE CAPITAL
As at beginning of the period / year
Issued during the period / year
Redeemed during the year
Current portion presented under current liabilities
As at end of the period / year
(Un-Audited) (Audited)
March 31 December 31
2016 2015Number of shares
(Un-Audited) (Audited)
March 31 December 31
2016 2015Rupees in thousands
4,955,4854,685,248
-
7 LONG-TERM FINANCES - SECURED
Obtained during the period / year
Repaid during the period / year
8 LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE
Present value of minimum lease payments
As at beginning of the period / year
Current portion presented under current liabilities
(830,916)
2,186,511
130,812
(69,463)
61,349
2,062,633
(2,147,266)
3,102,060
3,017,427
(716,229)
2,063,861
154,309
(88,033)
66,276
-
(237,338)
3,017,428
2,780,090
Current portion presented under current liabilities
As at end of the period / year
12 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 12.1
12.1
100
10,420
10,520
54,701
44,281
10,420
100
8,906
9,006
54,701
45,795
8,906
Kohinoor Power Company Limited
Ownership interest 23.10 %
Cost of investment
2,910,600 shares (2015: 2,910,600 shares)
Less: provision for impairment in value of investment
Investment in associate at cost - Quoted
13 REVENUE
Sales - local
Sales - export
Less: - sales tax and excise duty
- trade discounts
4,254,915
1,368,620
5,623,535
866,587
-
866,587
4,756,948
4,389,626
247,868
4,637,494
639,654
-
639,654
3,997,840
Interim Financial Report March 31, 2016
28 | | 29
Pak Elektron Limited
9 SHORT TERM BORROWING
10 CONTINGENCIES AND COMMITMENTS
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.
There is no material change in contingencies and commitments as disclosed in the notes to the financial statements for the year ended December 31, 2015.
11 PROPERTY, PLANT AND EQUIPMENT
Operating assets 11.1
Capital work-in-progress
15,446,464
63,148
15,509,612
15,326,029
619,149
15,945,178
14,407,147
1,905,504
16,312,651
126,445
739,742
15,446,464
1,823,488
8,208
19,266
54,542
1,905,504
15,446,465
93,126
15,539,591
17,965
195,597
15,326,029
52,528
1,811
2,855
35,932
93,126
11.1 Operating assets
Written down value at beginning of the period / year
Additions during the period / year 11.1.1
Written down value of the assets disposed off / adjustments
Depreciation charged during the period / year
11.1.1 Additions during the period / year
Plant and machinery
Office equipment and furniture
Computer hardware and allied items
Vehicles
(Un-Audited) (Audited)
March 31 December 31
2016 2015Rupees in thousands Note
(Un-Audited) (Audited)
March 31 December 31
2016 2015Rupees in thousands Note
(Un-Audited)
March 31 March 31
2016 2015Rupees in thousands Note
(Un-Audited)
12 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 12.1
12.1
100
10,420
10,520
54,701
44,281
10,420
100
8,906
9,006
54,701
45,795
8,906
Kohinoor Power Company Limited
Ownership interest 23.10 %
Cost of investment
2,910,600 shares (2015: 2,910,600 shares)
Less: provision for impairment in value of investment
Investment in associate at cost - Quoted
13 REVENUE
Sales - local
Sales - export
Less: - sales tax and excise duty
- trade discounts
4,254,915
1,368,620
5,623,535
866,587
-
866,587
4,756,948
4,389,626
247,868
4,637,494
639,654
-
639,654
3,997,840
Interim Financial Report March 31, 2016
28 | | 29
Pak Elektron Limited
9 SHORT TERM BORROWING
10 CONTINGENCIES AND COMMITMENTS
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.
There is no material change in contingencies and commitments as disclosed in the notes to the financial statements for the year ended December 31, 2015.
11 PROPERTY, PLANT AND EQUIPMENT
Operating assets 11.1
Capital work-in-progress
15,446,464
63,148
15,509,612
15,326,029
619,149
15,945,178
14,407,147
1,905,504
16,312,651
126,445
739,742
15,446,464
1,823,488
8,208
19,266
54,542
1,905,504
15,446,465
93,126
15,539,591
17,965
195,597
15,326,029
52,528
1,811
2,855
35,932
93,126
11.1 Operating assets
Written down value at beginning of the period / year
Additions during the period / year 11.1.1
Written down value of the assets disposed off / adjustments
Depreciation charged during the period / year
11.1.1 Additions during the period / year
Plant and machinery
Office equipment and furniture
Computer hardware and allied items
Vehicles
(Un-Audited) (Audited)
March 31 December 31
2016 2015Rupees in thousands Note
(Un-Audited) (Audited)
March 31 December 31
2016 2015Rupees in thousands Note
(Un-Audited)
March 31 March 31
2016 2015Rupees in thousands Note
(Un-Audited)
Basic earnings per share (Rupees) 0.67
14 COST OF SALES
Raw material consumed
Direct wages
Factory overhead
Work-in-process
-at beginning of period
-at end of period
Cost of goods manufactured
Finished goods
-at beginning of period
-at end of period
Cost of sales
15
The calculation of basic and diluted profit per ordinaryshare is based on the following data:
Profits for the period
Less: dividend payable on preference shares
Profit attributable to ordinary shares
2,927,120
183,294
522,625
3,633,040
1,143,657
(841,205)
302,452
3,935,492
429,020
(498,064)
(69,044)
3,866,448
303,678
10,677
293,001
Number of shares
434,622,427
0.85
2,437,345
156,406
445,258
3,039,009
1,262,830
(1,138,270)
124,560
3,163,569
700,790
(754,040)
(53,250)
3,110,319
375,789
10,677
365,112
429,722,619
EARNINGS PER SHARE - BASIC AND DILUTED
Number
Weighted average number of ordinary shares for the purpose of basic profit
Subsidiary:
2,248,644 2,493,715
12,903 10,955
413 552
Other related parties:
24,335
19,840
Key Management Personnel Short-term employee benefits
Post employment benefits
Red Communication Art Private Limited Purchase of services
Relationship Nature of transaction
PEL Marketing Private Limited Sales of goods and services
16.1All transactions with related parties have been carried out on commercial terms and conditions.
This condensed interim financial information has been approved by the Board of Directors of the Company and authorized for issue on April 26, 2016.
There are no other significant activities since December 31, 2015 affecting this condensed interim financial information.
17 DATE OF AUTHORIZATION FOR ISSUE
18 OTHERS
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
Interim Financial Report March 31, 2016
| 3130 |
Pak Elektron Limited
(Un-Audited)
March 31
2016
March 31
2015Rupees in thousands Note
(Un-Audited)
Basic and diluted earnings per share have been calculated through dividing profit as stated above by weighted average number of ordinary shares.
16 TRANSACTIONS WITH RELATED PARTIES
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.
Details of transactions and balances with related parties is as follows:
(Un-Audited)
March 31
2016
March 31
2015Rupees in thousands
(Un-Audited)
Basic earnings per share (Rupees) 0.67
14 COST OF SALES
Raw material consumed
Direct wages
Factory overhead
Work-in-process
-at beginning of period
-at end of period
Cost of goods manufactured
Finished goods
-at beginning of period
-at end of period
Cost of sales
15
The calculation of basic and diluted profit per ordinaryshare is based on the following data:
Profits for the period
Less: dividend payable on preference shares
Profit attributable to ordinary shares
2,927,120
183,294
522,625
3,633,040
1,143,657
(841,205)
302,452
3,935,492
429,020
(498,064)
(69,044)
3,866,448
303,678
10,677
293,001
Number of shares
434,622,427
0.85
2,437,345
156,406
445,258
3,039,009
1,262,830
(1,138,270)
124,560
3,163,569
700,790
(754,040)
(53,250)
3,110,319
375,789
10,677
365,112
429,722,619
EARNINGS PER SHARE - BASIC AND DILUTED
Number
Weighted average number of ordinary shares for the purpose of basic profit
Subsidiary:
2,248,644 2,493,715
12,903 10,955
413 552
Other related parties:
24,335
19,840
Key Management Personnel Short-term employee benefits
Post employment benefits
Red Communication Art Private Limited Purchase of services
Relationship Nature of transaction
PEL Marketing Private Limited Sales of goods and services
16.1All transactions with related parties have been carried out on commercial terms and conditions.
This condensed interim financial information has been approved by the Board of Directors of the Company and authorized for issue on April 26, 2016.
There are no other significant activities since December 31, 2015 affecting this condensed interim financial information.
17 DATE OF AUTHORIZATION FOR ISSUE
18 OTHERS
M. MURAD SAIGOLChief Executive Officer
SYED MANZAR HASSANDirector
Interim Financial Report March 31, 2016
| 3130 |
Pak Elektron Limited
(Un-Audited)
March 31
2016
March 31
2015Rupees in thousands Note
(Un-Audited)
Basic and diluted earnings per share have been calculated through dividing profit as stated above by weighted average number of ordinary shares.
16 TRANSACTIONS WITH RELATED PARTIES
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.
Details of transactions and balances with related parties is as follows:
(Un-Audited)
March 31
2016
March 31
2015Rupees in thousands
(Un-Audited)
17-Aziz Avenue, Canal Bank, Gulberg-V, Lahore.Ph: (042) 35718274-5, 35717364-5
www.pel.com.pk
Des
ign
ed &
Pro
du
ced
by
32 |
Pak Elektron Limited
Notes
17-Aziz Avenue, Canal Bank, Gulberg-V, Lahore.Ph: (042) 35718274-5, 35717364-5
www.pel.com.pk
Des
ign
ed &
Pro
du
ced
by
32 |
Pak Elektron Limited
Notes