Insulator Plant - EMCOemco.com.pk/images/financials/2013_03_Quarterly_Accounts.pdf · Cash and cash equivalents at the beginning of the year 10 (546,295,766) (460,601,108) Cash and

Dear Shareholders

On behalf of the Board of Directors, I am pleased to present Unaudited financial statement of theCompany for the third quarter ended March 31, 2013.

Sale for the period under review is Rs. 1,127.26 million as compared to Rs. 1,444.69 million. Thereis after tax loss of Rs. 71.08 million as compared to net loss after tax of Rs. 11.8 million in the sameperiod last year. This is mainly attributed to unprecedented load shedding of Power and Natural Gas.

The key highlights of the nine months under review and plant wise performance are as under:

Insulator PlantThe profit from operation is Rs.45.809 million in this period as compared to operating profit of Rs20.307 million for the same period last year. Average monthly production has decreased from 216tons to 205 tons against the corresponding period. Keeping in view the orders in hand we expectfurther improvement in results in upcoming quarter.

Tile PlantThe operating loss of this division is Rs. 36.892 million as compared to operating profit of Rs. 104.643million over the same period last year. The net sales have decreased from Rs. 1,041.475 million toRs.816.116 million over the same period last year. The average monthly production of Tile plant hasdecreased from 303,401 M² to 209,448 M². We are expecting improvement in the operating resultsof this division in upcoming quarter.

The directors are thankful to our valued customers, dealers, financial institutions and other stakeholdersfor their continued trust. The hard work of all employees is recognized and appreciated.

April 29, 2013Lahore

On behalf of Board

Tariq RehmanManaging Director

June 30,2012

Rupees

March 31,2013

RupeesNote

LahoreApril 29, 2013

EQUITY AND LIABILITIES

CAPITAL AND RESERVESAuthorized capital 40,000,000(June 2012: 40,000,000) ordinary shares of Rs 10 each 400,000,000 400,000,000

Issued, subscribed and paid up capital 35,000,000(June 2012: 35,000,000) ordinary shares of Rs 10 each 350,000,000 350,000,000Reserves 129,898,526 129,898,526Accumulated loss (504,056,829) (447,269,291)

(24,158,303) 32,629,235

SURPLUS ON REVALUATION OF PROPERTY,PLANT AND EQUIPMENT 400,534,958 414,829,694

NON-CURRENT LIABILITIESLong term loans from directors - unsecured 136,071,523 114,071,523Long term loans and liabilities 4 165,144,044 181,373,772Liabilities against assets subject to finance lease - 4,609,791Deferred liabilities 44,743,467 43,405,398Deferred Tax 19,305,377 27,837,160

365,264,411 371,297,644

CURRENT LIABILITIESCurrent portion of- Long term loans and liabilities 4 126,702,103 157,245,166- Liabilities against assets subject to finance lease 6,052,942 6,109,314Short term loans from related parties-unsecured 142,705,029 139,245,882Finances under mark up arrangements - secured 500,164,171 564,358,988Trade and other payables 344,164,554 344,795,286Accrued mark-up on loans and other payables 114,355,024 95,078,924

1,234,143,823 1,306,833,560

CONTINGENCIES AND COMMITMENTS 6

1,975,784,889 2,125,590,133

The annexed notes form an integral part of these financial statements.

(Tariq Rehman)Chief Executive

June 30,2012

Rupees

March 31,2013

RupeesNote

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment 5 1,027,576,146 1,087,203,566

Assets subject to finance lease 14,253,629 15,821,682

Intangible Assets 3,910,729 4,266,250

Long term deposits 3,616,693 3,966,692

Long term loans 2,017,894 1,506,097

1,051,375,091 1,112,764,287

CURRENT ASSETS

Stores, spares and loose tools 118,239,164 111,479,777

Stock-in-trade 368,026,067 440,928,588

Trade debts 307,686,723 342,371,744

Loans, advances, deposits, prepayments and other receivables 48,628,618 44,663,180

Taxation - net 59,745,632 55,319,335

Cash and bank balances 22,083,594 18,063,222

924,409,798 1,012,825,846

1,975,784,889 2,125,590,133

(Haris Noorani)Director

F O R T H E T H I R D Q U A R T E R E N D E D M A R C H 3 1 , 2 0 1 3

Sales 395,223,414 425,173,046 1,127,025,607 1,444,689,214

Cost of goods sold 7 (332,297,082) (376,867,837) (977,199,257) (1,153,596,109)

Gross profit 62,926,332 48,305,209 149,826,350 291,093,105

Administration expenses (17,390,407) (14,059,255) (51,469,071) (49,716,526)Distribution and selling costs (27,393,577) (34,722,546) (89,440,327) (116,425,868)Other operating expenses (888,269) (250,282) (3,957,438) (5,465,181)

(45,672,253) (49,032,083) (144,866,836) (171,607,575)

17,254,079 (726,873) 4,959,514 119,485,530

Other operating income (434,789) 930,869 4,908,530 3,700,005

Profit from operations 16,819,290 203,996 9,868,044 123,185,535

Finance cost (24,822,036) (36,167,530) (84,477,536) (117,891,763)

(Loss) / Profit before taxation (8,002,746) (35,963,534) (74,609,492) 5,293,772

Taxation (1,976,117) (4,251,730) 3,527,219 (17,125,018)

(Loss) / Profit after taxation (9,978,863) (40,215,265) (71,082,273) (11,831,246)

(Loss) / Earnings per share- Basic and diluted (0.29) (1.15) (2.03) (0.34)


January to MarchNotes 2013

Rupees2012

Rupees

July to March2013

Rupees2012

Rupees





Profit / (Loss) after taxation (9,978,863) (40,215,265) (71,082,273) (11,831,246)

Other comprehensive incomefor the period - - - -

Total comprehensive lossfor the period (9,978,863) (40,215,265) (71,082,273) (11,831,246)


January to March2013

Rupees2012

Rupees

July to March2013

Rupees2012

Rupees




Balance as onJune 30, 2011 350,000,000 39,898,526 90,000,000 (443,905,070) 35,993,456

(Loss) for the period - - - 28,384,018 28,384,018

Transfer from surpluson revaluation of property,plant and equipment netof deferred taxation:- Incremental depreciationfor the period - - - 10,050,022 10,050,022

Balance as onDecember 31, 2011 350,000,000 39,898,526 90,000,000 (405,471,030) 74,427,496

(Loss) for the period - - - (49,737,843) (49,737,843)

Transfer from surpluson revaluation of property,plant and equipment netof deferred taxation- Incremental depreciationfor the period - - - 7,939,582 7,939,582

Balance as onJune 30, 2012 350,000,000 39,898,526 90,000,000 (447,269,291) 32,629,235

Profit for the period - - - (71,082,273) (71,082,273)

Transfer from surpluson revaluation of property,plant and equipment netof deferred taxation- Incremental depreciationfor the period - - - 14,294,735 14,294,735

Balance as onMarch 31, 2013 350,000,000 39,898,526 90,000,000 (504,056,829) (24,158,303)



Rupees

AccumulatedLoss

Rupees

GeneralReserveRupees

SharePremiumRupees

ShareCapitalRupees

Total




NotesMarch 31,

2013Rupees

March 31,2012

RupeesCash flow from operating activities

Cash generated from operations 9 190,669,643 111,041,782Financial cost paid (65,201,436) (102,290,537)Taxes paid (9,430,861) (14,719,371)Gratuity paid (5,047,415) (3,759,017)

Net cash (used in)/from operating activities 110,989,931 (9,727,142)

Cash flow from investing activities

Fixed capital expenditure (16,946,650) (18,460,879)Net (increase)/decrease in long-term loans and other receivables (350,000) 574,400Net (increase)/decrease in long-term deposits and prepayments 136,714 587,450Proceeds from disposal of property, plant and equipment 365,000 2,651,989

Net cash used in investing activities (16,794,936) (14,647,040)

Cash flow from financing activities

Proceeds from right issue - -Net (decrease)/increase in long term loans from directors - 512Net increase/(decrease) in long term loans and liabilities (46,772,791) (49,442,576)Net (decrease)/increase in short term loans from directors 25,459,147 36,597,694Repayment of finance lease liabilities (4,666,163) (3,605,783)

Net cash from financing activities (25,979,807) (16,450,153)

Net (decrease)/increase in cash and cash equivalents 68,215,188 (40,824,336)

Cash and cash equivalents at the beginning of the year 10 (546,295,766) (460,601,108)

Cash and cash equivalents at the end of the period (478,080,577) (501,425,444)







1. These financial statements are being submitted to the shareholders in accordance with the requirementsof the Companies Ordinance, 1984.

2. The accounting policies adopted for the preparation of these nine months financial statements are thesame as those applied in the preparation of preceding annual published financial statements of the companyfor the year ended June 30, 2012.

3. These accounts have been prepared in accordance with the requirements of the International AccountingStandard (IAS) 34 "Interim Financial Reporting".

March 31, June 30,2013 2012

Rupees Rupees4. Long term loans and liabilities

Secured loans- Local currency loans 125,294,216 171,067,006

Unsecured loans from- Associated companies 14,951,139 15,951,139- Others 8,000,000 8,000,000

Other payables- Payable to provident fund 143,600,793 143,600,793

291,846,148 338,618,938Less: Current portion shown under current liabilities- Secured loans 56,813,103 100,487,166- Payable to provident fund 69,889,000 56,758,000

126,702,103 157,245,166

165,144,044 181,373,772

5. Property, plant and equipmentOpening book value 1,087,203,566 1,154,811,743Add: Additions during the period (note 5.1) 17,163,038 37,431,263Transfers in during the period - 777,743

1,104,366,604 1,193,020,749

Less: Disposals during the period (at book value) 627,893 1,820,152Depreciation charged during the period 76,162,565 103,997,031Adjustments - -

76,790,458 105,817,183

1,027,576,146 1,087,203,566

5.1 Additions during the periodBuilding on freehold land - 4,231,811Plant and machinery 14,505,988 30,874,262Office equipment 612,850 268,530Furniture and fixtures 6,200 18,660Vehicles 2,038,000 2,038,000

17,163,038 37,431,263

6 Contingencies and commitments6.1 Contingencies

There has been no material change in contingencies since last audited annual financial statements.

6.2 Commitments in respect of(i) Letters of credit other than capital expenditure Rs. 34.390 million (June 2012: Rs. 17.98 million).(ii) Bank guarantees amounting to Rs. 115.22 million (June 2012: Rs. 146.3 million).

7. Cost of goods soldRaw and packing materialsconsumed 122,580,205 123,120,905 345,239,549 456,729,160Stores and spares consumed 14,328,403 15,734,708 42,312,958 55,142,718Salaries, wages and benefits 60,341,863 45,297,502 191,623,928 176,860,069Power 98,972,747 90,457,718 274,684,026 328,076,104Depreciation 24,828,932 18,816,815 74,486,797 68,414,658Depreciation of leased assets 320,341 309,727 961,023 957,485Vehicle maintenance 86,237 120,242 354,666 420,962Repairs and maintenance 1,900,142 2,552,653 5,415,685 7,801,491Insurance 429,570 1,055,247 2,206,135 2,860,051Communication and stationery 594,005 386,797 1,688,139 1,604,353Rent, rates and taxes 5,464,857 5,436,353 14,807,424 14,979,161Travelling and conveyance 1,155,460 990,589 3,732,406 4,224,071Provision for obsolete stock - - - 2,260,888Others 3,010,459 4,268,524 5,991,588 11,633,924

334,013,221 308,547,780 963,504,324 1,131,965,095

Opening work in process 39,675,749 24,194,994 37,114,281 28,837,020Less: Closing work in process (42,248,007) (29,534,287) (42,248,007) (29,534,287)

(2,572,258) (5,339,293) (5,133,726) (697,267)

Cost of goods produced 331,440,963 303,208,487 958,370,598 1,131,267,828Opening stock offinished goods 202,907,993 311,956,468 220,880,533 260,625,400

534,348,956 615,164,955 1,179,251,131 1,391,893,228

Less: Closing stock offinished goods (202,051,875) (238,297,118) (202,051,875) (238,297,118)

332,297,082 376,867,837 977,199,257 1,153,596,109

Cost of goods sold- purchased for resale - - - -

332,297,082 376,867,837 977,199,257 1,153,596,109

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9. Cash generated from operations(Loss)/Profit before taxation (74,609,492) 5,293,772Add:Depreciation 76,162,565 69,840,944Depreciation of leased assets 1,568,050 1,583,323Amortization of intangibles 355,521 324,359Provision for gratuity 6,385,498 5,530,343Loss/(Gain) on sale of fixed assets 46,502 (831,877)Financial charges 84,477,536 117,891,763

170,222,221 198,212,342

Profit before working capital changes 95,612,729 203,506,114

Effect on cash flow due to working capital changes:- (Increase)/decrease in stores and spares (6,759,386) (3,809,619)- (Increase)/decrease in stock in trade 72,902,521 10,408,483- (Increase)/decrease in trade debts (34,165,150) (126,536,603)- (Increase)/decrease in loans, advances, deposits,prepayments and other receivables (7,856,214) 15,739,947- Increase/(decrease) in creditors, accrued and other liabilities 70,935,143 11,733,461

95,056,914 (92,464,332)

190,669,643 111,041,782

10. Cash and cash equivalentsCash and bank balances 18,063,222 70,037,521Finances under mark-up arrangements - secured (564,358,988) (530,638,629)

(546,295,766) (460,601,108)

11. Transaction with related partiesSale of goods 194,507 -Goods purchased 1,157,011 -Mark-up on short term borrowings 580,290 296,349Rent Paid 3,858,872 2,250,000

12. Date of authorization for issueThese financial statements were authorised for issue on April 29, 2013 by the Board of Directors of thecompany.

13. Corresponding figuresCorresponding figures have been rearranged, wherever necessary, for the purposes of comparison.However, no significant re-arrangements have been made.

2013Rupees

2012Rupees

July to March




BOOK POSTUNDER POSTAL CERTIFICATE

If undelivered please return to:

119-E/1, Hali Road, Gulberg III,Lahore.

Documents

Insulator Plant - EMCOemco.com.pk/images/financials/2013_03_Quarterly_Accounts.pdf · Cash and cash equivalents at the beginning of the year 10 (546,295,766) (460,601,108) Cash and