CORPORATE INFORMATION · 2016-04-29 · Al Baraka Bank (Pakistan) Limited Bank Al-Habib Limited Bankislami Pakistan Limited Burj Bank Limited National Bank of Pakistan Habib Metropolitan

01Third Quarter March 2016

CORPORATE INFORMATION

BOARD OF DIRECTORS

Masroor Ahmad KhanHafiz Farooq AhmadMian Zahid SaidRabia AtiqueSaira FarooqFarzand Ali

Atique Ahmad Khan Chairman Chief Executive OfficerDirectorDirectorDirectorDirectorDirector

AUDIT COMMITTEE

Mian Zahid Said – Chairman Hafiz Farooq AhmadSaira Farooq Farzand Ali

HR & R COMMITTEE

Mian Zahid Said - ChairmanMasroor Ahmad Khan Hafiz Farooq AhmadFarzand Ali

COMPANY SECRETARY

Farzand Ali, FCS

CHIEF FINANCIAL OFFICER

Asim Mahmud, FCA

AUDITORS

Rizwan & Company,Chartered AccountantsMember Firm of DFK International

SHARE REGISTRAR

Vision Consulting Limited 1st Floor, 3-C, LDA Flats, Lawrence Road, Lahore.Tel: 042-36375531, 36375339 Fax: 042-36312550

GLASS PLANT

52-K.M. Lahore Multan Road, Phool Nagar Distt. Kasur Ph: (049) 4510349-549, Fax: (049) 4510749E-mail: [email protected]

LEGAL ADVISOR

DSK Law, Lahore

BANKERS

Al Baraka Bank (Pakistan) LimitedBank Al-Habib LimitedBankislami Pakistan LimitedBurj Bank LimitedNational Bank of PakistanHabib Metropolitan Bank LimitedMCB Bank Limited Meezan Bank LimitedThe Bank of KhyberUnited Bank Limited

REGIONAL MARKETING OFFICE

301-302, 3rd Floor Yousaf Chamber,KCHSU, Block 7/8, Near MCB Bank,Shahrah-e-Faisal, Karachi.Phone: 021-34330595Email: [email protected]

REGISTERED/CORPORATE OFFICE

10-N, Model Town Ext. Lahore-54000, Pakistan UAN: (042)111-ghani 1(442-641)Phone: 042-35161424-5, Fax: 042-35160393Email: [email protected]: www.ghaniglobalglass.com

02Ghani Global Glass

DIRECTORS' REPORT

Dear Members

Assala-o-Aliakum Wa Rehmatullah Wa Barakatoh

The Directors of your Company are pleased to present the unaudited condensed financial statements of Ghani Global

Glass Limited (GGG) for the period ended March 31, 2016.

ECONOMIC OVERVIEW:

CY' 16 commenced with another round of volatility taking its toll on the regional as well as international markets

mainly due to concerns regarding slowdown in the growth of Chinese economy clouding the global economic

landscape. This coupled with declining commodities has made the international investors jittery in turn triggering a

sell-off across almost all the markets around the globe. The same has affected the local stock market whereby the

KMI-30 and the KSE-100 closed 3.18% and 4.62% down respectively. It is pertinent to note however that Pakistan

Stock Market has once again remained among the lowest affected markets which also reflects on the continuously

improving macro-economic fundamental of the economy which are basically forming the supporting base amid such

a volatile economic scenario around the world. Declining commodities, especially oil had been a major reason for

some major declines in the stock market last year; this was mainly due to the high weightage of oil and gas

exploration sector in the index but it is interesting to note that this weightage now stands significantly reduced in turn

making the market less prone to negative effects of oil price movement going forward. Amid mixed market

expectation, the SBP kept the key rate unchanged at 6.50% and the policy rate at 6% in the bimonthly MPS

announced during January 2016. After more than five years of subdued investment activity on the industrial side, the

cycle seems to be picking up with the initiation of large scale energy and infrastructure projects with FDI up 2.2%

YoY, going forward, Pakistan's macro-economic fundamentals are expected to continue improving on the back of

development under the China Pakistan Economic Corridor (CPEC), better law and order situation, improved

governance mainly due to the reforms implement under the IMF program and oil price decline impacting the

country's current account positively. The forex reserve are also stable while inflation is expected to stay low thereby

allowing the SBP to maintain low interest rates in order to further stimulate the economic activity.

FINANCIAL PERFORMANCE:

Company remain in trial run up till March 31, 2016, sales for the period under review has not been reported.

Expenses incurred and reflected in profit and loss account statement are administrative nature. A comparison of key

financial results of your company for the period ended March 31, 2016 is as under:

Particulars Rupees in ’000’ except EPS

March 2016 March 2015Administrative expenses (7,281) (2,972)

Other operating expense (225) (1,158)

Other income 187 4,082

Finance cost (2,724) (50)

Profit and loss before Taxation (10,043) (98)

Taxation 182 -

Profit and loss after Taxation (9,861) (98)

Earnings per share (0.197) (0.002)


Your company started trial product in November 2015 and overcame teething problems. As this is turnkey project

where supplier was supposed to address the initial teething problems and ensure quality manufacturing of tubing

glass. The products of your company are pharma specific so high quality standards are required to be maintained

throughout the manufacturing process. Attainment of these standards sometimes take considerable time spanning

over many months period or even more. With the blessings of almighty Allah, your company achieved these

standards in first quarter of trial production.

In addition to above, during the period under review, your company delivered the product to ampoules/ vial

manufacturing who transform glass tube into injectable ampoules and vials for oral/ powder medicine. These

ampoules and vials are then sold to pharmaceutical industries who conduct quality test and approve the glass tube

and vendor for further purchases. By the grace of almighty ALLAH tubing glass of your company has been

approved by most of renowned pharmaceutical companies and professionals of marketing team of your company is

now approaching multinational companies to acquire ampoules/ vials being manufactured from tubing glass of

your company. Response is Alhamdulillah very encouraging as commercial sales of your company has just kicked

off.

Another development during the period under review is production of amber tube which is brown color and

somehow heat resistance and more in demand during summer season. Your company has successfully started

production of amber glass tube after maintaining reasonable stock level of clear tubing glass.

GGG's level of quality is structured around standard Acceptable Quality Levels (AQLs), ensuring the highest level

of quality. Glass tube properties includes excellent mechanical strength and thermal properties with maximum

workability in customer transformation processes. The products manufactured by your company are on the basis of

geographically diversified strategies for the development, production and quality assurance.

FUTURE PROSPECTS:

Your company has formally commenced commercial operations from 1st day of April 2016. At present, major share

of the country's requirement is met through imports from different countries. Your company has envisaged to cater

the import as well as local market and will supply international standard product with competitive prices.

Management of your company is planning to setup a project to manufacture Ampoules and Vials from its own glass

tube. This will help to sell ampoules and vials directly to pharmaceutical companies instead of selling the glass tube

to ampoules and vials manufacturers. Planning on this value addition project is at advance stage and is expected to

announce shortly.

ACKNOWLEDGEMENTS:

The board of directors wishes to express their gratitude to valued shareholders, banks/ financial institutions,

customers and suppliers for their continuous support, cooperation and patronage. We also wish to place on record

the dedication, hard work and diligence of executives, staff and workers of the company. Needless to mention, all

achievements of the company is not possible without will and blessings of ALMIGHTY ALLAH.

For and on behalf of the Board

MASROOR AHMAD KHAN(CHIEF EXECUTIVE OFFICER)

Lahore:April 28, 2016


CONDENSED INTERIM BALANCE SHEETAS AT 31 MARCH 2016 (UN-AUDITED)

HAFIZ FAROOQ AHMAD(DIRECTOR)


The annexed notes from 1 to 13 form an integral part of these condensed interim financial information.

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment 5 1,318,246,333 1,078,046,249

Intangible assets 19,794,072 19,794,072

Long term deposit and prepayments 4,974,530 4,259,600

Deferred taxation 5,218,127 4,409,434

1,348,233,062 1,106,509,355

CURRENT ASSETS

Stores, spare parts and loose tools 20,334,908 9,437,984

Stock in trade 121,224,980 14,119,916

Trade debts 17,179,347

Loans and advances 7,691,319 16,257,765

Trade deposits and short term prepayments 12,106,256 22,759,156

Other receivables 22,983 74,680

Advance income tax 7,040,175 3,081,023

Balances with statutory authorities 89,541,278 52,058,422

Cash and bank balances 3,711,923 6,813,728

278,853,169 124,602,674

TOTAL ASSETS 1,627,086,231 1,231,112,029

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized share capital

120,000,000 (2015: 65,000,000) ordinary shares of Rupees 10 each 1,200,000,000 650,000,000

Issued, subscribed and paid-up share capital 6 500,000,000 500,000,000

Unappropriated Profit/(Loss) (19,293,431) (9,432,616)

480,706,569 490,567,384

NON CURRENT LIABILITIES

Long term financing 7 566,519,935 553,570,760

Long term security deposit 282,886 -

Loan from sponsors 366,335,638 45,300,000

933,138,459 598,870,760

CURRENT LIABILITIES

Trade and other payables 88,882,214 97,877,822

Accrued profit on financing 4,901,886 15,927,596

Short term borrowings 77,298,995 27,868,467

Current portion of long term liabilities 41,531,603 -

Provision for taxation 626,505 -

213,241,203 141,673,885

1,146,379,662 740,544,645

CONTINGENCIES AND COMMITMENTS 8

TOTAL EQUITY AND LIABILITIES 1,627,086,231 1,231,112,029

UN-AUDITED AUDITEDMarch June2016 2015

Note Rupees Rupees

UN-AUDITED AUDITEDMarch June2016 2015

Note Rupees Rupees

CONTINGENCIES AND COMMITMENTS


CONDENSED INTERIM PROFIT AND LOSS ACCOUNT FOR NINE MONTHS ENDED 31 MARCH 2016

(UN-AUDITED)



31 March 31 March 31 March 31 March2016 2015 2016 2015

Note

Administrative expenses (7,281,579)

(2,972,452)

(1,912,764) (1,564,716)

Other operating expenses (225,000)

(1,157,917)

(73,900) (965,000)

(7,506,579)

(4,130,369)

(1,986,664) (2,529,716)

Other income 187,928

4,082,131

42,931 1,606,731

(7,318,651)

(48,238)

(1,943,733) (922,985)

Finance cost (2,724,352)

(49,812)

(1,039,158) (34,814)

Profit / (loss) before taxation (10,043,003)

(98,050)

(2,982,891) (957,799)

Taxation 182,188 - 592,908 -

Profit / (loss) after taxation (9,860,815) (98,050) (2,389,983) (957,799)

Earnings per share

- basic and diluted 9 (0.197) (0.002) (0.048) (0.020)

Rupees


NINE MONTHS ENDED QUARTER ENDED

Rupees




CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

FOR NINE MONTHS ENDED 31 MARCH 2016

Net profit / (loss) for period

Other comprehensive income / (loss)

Total comprehensive income / (loss) for the period


31 March 31 March 31 March 31 March

2016 2015 2016 2015

(Rupees) (Rupees)

(9,860,815)

(98,050)

(2,389,983) (957,799)

- - - -

(9,860,815) (98,050) (2,389,983) (957,799)

NINE MONTHS ENDED QUARTER ENDED




CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) FOR NINE MONTHS ENDED 31 MARCH 2016

Balance as at 01 July 2014 - (audited) 480,000,000

(10,907,657)

469,092,343

Net profit / (loss) for the period -

(98,050)

(98,050)


for the period - -

-

Total comprehensive income / (loss) -

(98,050)

(98,050)

Transactions with owners:

Shares issued persuant to merger with Libaas

Textile Ltd 20,000,000

-

20,000,000

20,000,000

-

20,000,000

Balance as at 31 March 2015 - (un-audited) 500,000,000

(11,005,707)

488,994,293

Balance as at 01 July 2015 - (audited) 500,000,000 (9,432,616) 490,567,384

Net profit / (loss) for the period - (9,860,815) (9,860,815)


for the period -

-

-

Total comprehensive income / (loss) -

(9,860,815)

(9,860,815)

Balance as at 31 March 2016 - (un-audited) 500,000,000 (19,293,431) 480,706,569


Share capitalUnappropriated

profit / (loss)Total

(Rupees)




CONDENSED INTERIM CASH FLOW STATEMENT FOR NINE MONTHS ENDED 31 MARCH 2016

(UN-AUDITED)

31 March 31 March

2016 2015

NoteCASH FLOW FROM OPERATING ACTIVITIES

Cash generated from/ (used in) operating activities 10 (167,395,658)

(29,831,497)

Finance cost paid (53,851,442)

(5,995,437)

Income tax paid (3,959,152)

(643,067)

(57,810,594)

(6,638,504)

Net cash from / (used in ) operating activities (225,206,252)

(36,470,001)

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (6,477,704)

(3,723,841)

Addition in capital work in progress (195,932,748)

(585,058,088)

Proceeds from disposal of property, plant and equipment -

950,000

Long term deposits received / (paid) (714,930)

(3,926,000)

Net cash from / ( investing activitiesused in) (203,125,382)

(591,757,929)

CASH FLOW FROM FINANCING ACTIVITIES

Long term financing - net 54,480,777

493,136,794

Long term security deposit 282,886

Loan from sponsors - net 321,035,638

3,506,780

Short term borrowings 49,430,528

Short term investment realized -

5,745,966

Net cash generated from financing activities 425,229,829 502,389,540

Net increase / (decrease) in cash and cash equivalents (3,101,805) (125,838,390)

Cash and cash equivalents at the beginning of the period 6,813,728 133,138,739

Acquired due to business combination - 122,490

Cash and cash equivalents at the end of the period 3,711,923 7,422,839


(Rupees)

NINE MONTHS ENDED

-

-


SELECTED NOTES TO THE FINANCIAL STATEMENTS (UN-AUDITED) FOR NINE MONTHS ENDED 31 MARCH 2016

THE COMPANY AND ITS OPERATIONS1

The Company was incorporated in Pakistan under the Companies Ordinance, 1984 as a private limited company on October 04, 2007 as Ghani Tableware (Private) Limited. Its status was changed to public unlisted company, consequently its name was changed to Ghani Tableware Limited as on July 24, 2008. Name of the Company was further changed to Ghani Global Glass Limited on January 14, 2009. It is a listed company registered with Pakistan Stock Exchange Limited. Its registered office is situated at 10- N, Model Town Extension, Lahore. The Company has set up plant for manufacturing of tubing glass.

BASIS OF PREPERATION2

Statement of compliance2.1

This condensed interim financial information has been prepared in accordance with the International Accounting Standard (IAS) 34 'Interim Financial Reporting' as applicable in Pakistan and notified by the Securities and Exchange Commission of Pakistan (SECP) and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of or directives issued under the Ordinance have been followed.

Functional and presentation currency2.2

These financial statements are presented in Pak Rupees which is the functional and presentation currency for the Company.

Changes in standards, interpretations and amendments to published approved accounting standards and IFRS 2.3

There are certain new standards, amendments and International Financial Reporting Interpretations Committee (IFRIC) interpretations that became effective during the period and are mandatory for accounting periods beginning on or after 01 July, 2015 but are considered not to be relevant or do not have any significant effect on the company's operations and are, therefore, not disclosed in this condensed interim financial information.

Standards, interpretations and amendments to published approved accounting standards and IFRS that are not yet effective

2.4

There are other amendments to the standards and new interpretations that are mandatory for accounting periods beginning on or after 01 January 2016 but are considered not to be relevant or do not have any significant effect on company's operations and are, therefore, not detailed in this condensed interim financial information.

Activities1.1

The Company is principally engaged in manufacture, procurement and sale of glass tubing and glass ware.

This condensed interim financial information do not include the information reported for annual financial statements and should be read in conjunction with the audited annual published financial statements for the year ended 30 June 2015.

ACCOUNTING POLICIES AND COMPUTATION METHODS3

The accounting policies and methods of computations adopted for the preparation of this interim condensed financial information are the same as applied in the preparation of the preceding audited annual published financial statements of the Company for the year ended 30 June 2015.


CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS4

The preparation of this interim condensed financial information in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

During preparation of this interim condensed financial information, the significant judgments made by the management in applying the Company’s accounting policies and the key sources of estimation and uncertainty were the same as those that applied in the preceding audited annual published financial statements of the Company for the year ended 30 June 2015.

5 PROPERTY, PLANT AND EQUIPMENT

Operating fixed assets

Opening book value

Additions & transfer during the period/year

Deletions during the period/year

Less:

Depreciation charged for the period/year

Capital work in progress

5.1 Additions during the period/year

Furniture and fixtures

Office equipments

Computers

Vehicles

5.2 Deletions during the period/year

Vehicles

5.3 Capital work in progress

Building

Plant & Machinery

Trial run cost

Un-audited Audited31 March 30 June

2016 2015

52,733,757 36,811,821

5.1 6,477,704 17,349,265

5.2 (477,944)

59,211,461 53,683,142

2,311,749 949,385

56,899,712 52,733,757

5.3 1,261,346,621 1,025,312,492

1,318,246,333 1,078,046,249

548,832

1,783,172

632,950

342,510

388,989

516,328

4,906,933

14,707,255

6,477,704

17,349,265

- 477,944

- 477,944

134,498,170 126,842,434

1,010,097,989 898,470,058

116,750,462

1,261,346,621 1,025,312,492

(Rupees)

-

-


There are no material changes in contingencies as disclosed in the note to the financial statements for the year ended 30 June, 2015.

8.2 Commitments

8.2.1 Commitment in respect of letter of credit amounted to Rupees 6.32 million (June 2015: Rupees 40.15 million).

8 CONTINGENCIES AND COMMITMENTS

8.1 Contingencies

8.2.2 Commitment for construction of building as at balance sheet date amounted to Rupees 20 million (June 2015 : Rupees 10 million)

9 EARNING PER SHARE - BASIC AND DILUTED

There is no dilutive effect on the basic earnings per share.

6 ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL

7 LONG TERM FINANCING

Diminishing Musharka facility

Syndicate financing from Islamic Banks/windows

NBFC

Less: Current portion shown under current liabilities

31 March 30 June

2016 2015

48,000,000

48,000,000

2,000,000 2,000,000

50,000,000 50,000,000

(Number of Shares)

Ordinary shares of Rupees 10 each fully

paid in cash

Ordinary shares of Rupees 10 each issued

for consideration other than cash

Un-audited Audited31 March 30 June

2016 2015

480,000,000 480,000,000

20,000,000 20,000,000

500,000,000 500,000,000

596,656,695 553,570,760

11,394,843

608,051,538 553,570,760

(41,531,603) -

566,519,935 553,570,760

(Rupees)


31 March 31 March

2016 2015

10 CASH GENERATED FROM/ (USED IN) OPERATIONS

Profit/(Loss) before taxation (10,043,003) (98,050)

Depreciation 2,311,749 293,933

Finance cost 2,724,352 49,812

(Gain) / Loss on disposal of assets (472,056)

Working capital changes (Note 10.1) (162,388,756) (29,605,136)

finance cost (167,395,658) (29,831,497)

10.1 Working capital changes

Cash flows generated from/(used in) working capital changes

(Increase) / decrease in current assets:

Stores, spare parts and loose tools (10,896,924) (8,390,908)

Stock in trade (107,105,064) -

Trade debts (17,179,347)

Balance with statutory authorities (37,482,856) (41,916,955)

Loans and advances 8,566,446 (27,819,605)

Trade deposits and short term prepayments 10,652,900 21,308,934

Other receivables 51,697 (32,317)

(153,393,148) (56,850,851)

Increase/(decrease) in current liabilities

Trade and other payables (8,995,608) 27,245,715

(162,388,756) (29,605,136)

(Un-Audited)

Nine Months Ended

(Rupees)

Adjustments to reconcile profit to net cash provided by operating

activities

-

-


DATE OF AUTHORIZATION FOR ISSUE12

This condensed interim financial information was approved by the Board of Directors of the Company and authorized for issue on 28 April, 2016.

13.1 Corresponding figures have been rearranged or reclassified, wherever necessary, for the purpose of comparison.

13.2 In order to comply with the requirements of International Accounting Standard 34 - 'Interim Financial Reporting', corresponding figures in the condensed interim balance sheet comprise of balances as per the annual audited financial statements of the Company for the year ended 30 June 2015 and the corresponding figures in the condensed interim profit and loss account, condensed interim cash flow statement, condensed interim statement of other comprehensive income and condensed interim statement of changes in equity comprise of balances of comparable period as per the condensed interim financial information of the Company for the period ended 31 March 2015.

13.3 Figures have been rounded off to the nearest rupees, unless otherwise stated.



GENERAL13

11 RELATED PARTY TRANSACTIONS

Transaction with related parties and associated undertakings are as follows:

Name 31 March 31 March

2016 2015

Associated companies / undertaking

Associated Companies 11,300,000 6,300,000

1,950,000 1,300,000

35,575,429 -

1,983,714 -

321,035,638 (93,220)

(Un-Audited)

Nine Months Ended

Nature of transaction

(Rupees)

Services

Guarantee Charges

Purchases

Provident fund Contribution

Sponsor Loan received / (repaid)

Documents

CORPORATE INFORMATION · 2016-04-29 · Al Baraka Bank (Pakistan) Limited Bank Al-Habib Limited Bankislami Pakistan Limited Burj Bank Limited National Bank of Pakistan Habib Metropolitan