Quarter Report 2019 - Sitara Chemical Industries Ltd

Contents Company Information

Directors' Review

Auditor's Review Report to the members on Review

of Condensed Interim Financial Statements

Condensed Interim Statement of Financial Position (Un-Audited)

Condensed Interim Statement of Profit or Loss (Un-Audited)

Condensed Interim Statement of Comprehensive Income (Un-Audited)

Condensed Interim Statement of Changes in Equity (Un-Audited)

Condensed Interim Statement of Cash Flows (Un-Audited)

Notes to the Condensed Interim Financial Statements (Un-Audited)

02

03

05

06

07

08

09

10

11

Company Information

Mr. Muhammad Khalil Mr. Muhammad Adrees Mr. Haseeb Ahmad Mr. Waheed Akhter Sher Mr. Abdul Awal Mr. Muneeb ul Haq Mr. Ahmad Nawaz Mr. Mazhar Ali Khan Mr. Anwar-ul-Haq (FCA) Mr. Abdul Awal Mr. Muhammad Khalil Mr. Muneeb ul Haq Mr. Muhammad Khalil Mr. Muhammad Adrees Mr. Abdul Awal Mr. Zakir Hussain (FCA) Deloitte Yousuf Adil Chartered Accountants Mr. Sahibzada Muhammad Arif Meezan Bank Limited Bank Alfalah LimitedHabib Bank Limited (Islamic Banking) Standard Chartered Bank (Pakistan) Limited Al-Baraka Bank (Pakistan) LimitedFaysal Bank Limited National Bank of PakistanMCB Bank Limited MCB Islamic BankDubai Islamic Bank Pakistan Limited Bank Islami Pakistan Limited The Bank of Punjab Taqwa Islamic BankingThe Bank of Khyber United Bank Limited (Islamic Banking) Askari Bank Islamic Banking Allied Bank Limited

www.sitara.com.pk 601-602 Business Centre, Mumtaz Hassan Road, Karachi.-74000 THK Associates (Private) Limited Ist Floor, 40-C, Block-6, P.E.C.H.S., Karachi. 28/32 KM, Faisalabad - Sheikhupura Road, Faisalabad.

Chairman Chief Executive Officer Directors Company Secretary Chief Financial Officer Audit Committee Chairman Members Human Resource & Remuneration Committee Chairman Members Head of Internal Audit Auditors Legal Advisor Bankers Website of the Company Registered Office Share Registrar Address Factories

Board of Directors

2 Sitara Chemical Industries Limited

Directors’ Review

3Sitara Chemical Industries Limited

In the name of Allah, the Most Beneficent, the Most Gracious, the Most Merciful. The Directors of Sitara Chemical Industries Limited are pleased to present the un-audited condensed interim financial statements of the Company for the half year ended December 31, 2018.

Overview:

During the half year under review, your Company has recorded net sales of Rs. 6,162/- million and gross profits of Rs 1,380/- million as compared with net sales of Rs. 5,383 million and gross profits of Rs 1,148/- million in the corresponding period of last year. Profit after tax amounted to Rs. 543 million as compared with Rs 522 million of same period last year. Your company witnessed an improvement of 14.47% in net sales revenue and gross profits by 20.21% compared with the net sales revenue and gross profits of corresponding period last year.

Gross margins in percentage terms improved during the first half year compared with same period last year due to passing on the impact of increased energy cost and adverse impact of PKR depreciation etc. in the prices of caustic liquid and flakes.

Earnings per share remained at Rs. 25.35 as compared with Rs. 24.37 last corresponding period.

Net sales of textile segment of your company also remained better during the period under review compared with same period last year due to better yarn prices; however gross margins remained little depressed because proportionate increase in the prices of raw materials and production overheads could not be passed on in the prices of yarn due to depressed market conditions.

Corporate Social Responsibility:

During the first half of the financial year under review, your Company extended a number of scholarships to deserving and brilliant students from various colleges/universities. Your Company also continued to donate towards charitable hospital, arrangement of free medical camps, and installation/running of clean water treatment plants at the surrounding areas of Faisalabad.

JCR-VIS Credit Rating:

During the 2nd quarter of the year under review, credit rating of the Company was reassessed by JCR-VIS Credit Rating Co. Ltd., and your company has been able to maintain its long term entity's rating as A+ (Single A Plus) and short term rating as A-1 (A one) while outlook on the assigned ratings was also maintained as 'Positive'. This rating depicts a good credit quality along with adequate protection factors on medium to long term basis, and on short term basis depicts high certainty of timely payments along with excellent liquidity factors supported with good fundamental protection factors.

Future Outlook:

As reported in our last annual audited financial statements, work on BMR of one of our old membrane cell is in progress with full pace; LCs have been opened and project is planned to be completed within the 4th quarter of the running financial year (INSHA'ALLAH).

In textile division of the company, work on BMR / replacement of old machinery with latest Swiss machines at all back process is also in progress; LCs have been opened and project is planned to be completed by the end of current financial year 2018-19 (INSHA'ALLAH).

Overall economic slowdown in the country in general and slowdown of industrial growth in particular along with increase in tariff/cost of natural gas, RLNG, coal, and further PKR depreciation against US dollar are the key challenges faced by the Company.

Acknowledgments:

We take this opportunity to thank our valued business partners and stakeholders for their continued support, trust and assistance for the progress and prosperity of the Company. Company also appreciates its staff for their continuous dedication, commitment and support.

Muhammad Adrees Chief Executive Officer Faisalabad: Febuary 16, 2019

Haseeb Ahmed Director


2019 16

JCR-VIS


Introduction

We have reviewed the accompanying condensed interim statement of financial position of Sitara Chemical Industries Limited (the Company) as at December 31, 2018, the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, and condensed interim statement of cashflows and notes to the financial statements for the six month period then ended (here-in-after referred to as “condensed interim financial statements”). Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review. The figures of the condensed interim statement of profit or loss and the condensed interim statement of comprehensive income for the three month period ended December 31, 2018 and related comparative information have not been reviewed, as we are required to review only the cumulative figures for the six month period ended December 31, 2018.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, ”Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements as at December 31, 2018 and for the six month period then ended, is not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

AUDITOR'S REVIEW REPORT TO THE MEMBERSON REVIEW OF CONDENSED INTERIMFINANCIAL STATEMENTS

Chartered Accountants

Engagement Partner: Rana M. Usman KhanLahoreDated: February 16, 2019


The annexed notes from 1 to 19 form an integral part of these condensed interimfinancial Statements.

Un-audited December 31,

2018

Audited June 30,

2018(Rupees in thousand) Note

4 5 6 7 8 9 10

Muhammad AdreesChief Executive Officer

Anwar-ul-Haq Chief Financial Officer


ASSETSNON - CURRENT ASSETSProperty, plant and equipmentIntangible assetsInvestment propertyLong-term investmentsLong-term loans and advancesLong-term deposits

CURRENT ASSETSStores, spare parts and loose toolsStock-in-tradeTrade debtsLoans and advancesTrade deposits and short-term prepaymentsOther receivablesOther financial assetsCash and bank balances

EQUITY AND LIABILITIESSHARE CAPITAL AND RESERVESShare capitalReservesUn-appropriated profitsSurplus on revaluation of property,plant and equipment

NON - CURRENT LIABILITIESLong-term financing Long-term depositsDeferred liabilities

CURRENT LIABILITIESTrade and other payablesSales tax payableProfit / financial charges payableShort term borrowingsUnclaimed dividendCurrent portion of long term financing

CONTINGENCIES AND COMMITMENTS

CONDENSED INTERIM STATEMENT OF FINANCIALPOSITION (UN-AUDITED)AS AT DECEMBER 31, 2018

9,632,631 11,729 3,108,829 25,039 1,392,246 111,318 14,281,792

1,090,151 1,780,099 1,173,531 2,397,398 20,360 12,547 320,545 126,844 6,921,475 21,203,267

214,294 1,396,497 8,188,006

1,138,672

10,937,469

1,033,752 42,687 1,186,712 2,263,151

2,584,662 6,713 122,852 4,394,454 20,501 873,465 8,002,647

21,203,267

9,572,027 11,780 3,033,968 25,039 1,349,111 111,209 14,103,134

744,643 950,647 1,137,768 2,414,018 4,998 9,976 352,254 79,663 5,693,967 19,797,101

214,294 1,365,496 7,892,907

1,164,731

10,637,428

1,174,947 30,443 1,183,897 2,389,287

2,293,218 8,499 76,973 3,525,027 21,775 844,894 6,770,386

19,797,101


December 31, 2018

December 31, 2017

(......................Rupees in thousand.....................) Note

Six months period ended

Sales - net Cost of sales Gross profit

Distribution cost Administrative expenses Other expenses Finance cost

Other income

Share of loss of associate - net of tax Profit before taxation

Provision for taxation Profit after taxation

Earnings per share - basic and diluted (Rupees)

11 12 13 14

6,162,400 (4,782,278) 1,380,122 (162,442) (311,427) (48,323) (258,904) (781,096) 91,870 690,896 - 690,896 (147,670) 543,226 25.35

December 31, 2018

December 31, 2017

Three months period ended

5,383,404 (4,235,417) 1,147,987 (104,888) (274,300) (38,038) (225,473) (642,699) 27,976 533,264 (406) 532,858 (10,733) 522,125 24.37

3,371,815 (2,618,745) 753,070 (90,596) (157,421) (25,271) (145,544) (418,832) 78,309 412,547 - 412,547 (72,350) 340,197 15.88

3,019,139 (2,370,716) 648,423 (61,782) (143,260) (22,263) (114,447) (341,752) 13,634 320,305 (406) 319,899 (137,070) 182,829 8.53

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED) FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2018

Un-audited Un-audited






CONDENSED INTERIM STATEMENT OF COMPREHENSIVEINCOME (UN-AUDITED) FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2018

Profit after taxation Other comprehensive income Items that may be reclassifiedsubsequently to profit or loss Surplus / (deficit) on investmentsclassified as available for sale - net of tax Reclassification adjustment relating to disposal of investments classified as available for sale during the period Items that will not be reclassified subsequently to profit or loss Revaluation surplus on property, plant and equipment - adjustment due to change in tax rate Other comprehensive income Total comprehensive income for the period

543,226

31,001

-

4,396 35,397

578,623

December 31, 2018

December 31, 2017


December 31, 2018

December 31, 2017

Three months period ended

522,125

(68,396)

(397)

- (68,793)

453,332

340,197

3,339

-

4,396 7,735

347,932

182,829

(47,872)

(397)

- (48,269)

134,560

(......................Rupees in thousand.....................)

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CONDENSED INTERIM STATEMENT OF CHANGES INEQUITY (UN-AUDITED) FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2018

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December 31, 2018

December 31,

2017(Rupees in thousand)


Note

17

CASH FLOWS FROM OPERATING ACTIVITIES Operating cash flow before working capital changes Changes in working capital: (Increase) / decrease in current assets Stores, spare parts and loose tools Stock-in-trade Trade debts Loans and advances Trade deposits and short-term prepayments Other receivables Increase / (decrease) in current liabilities Trade and other payables Sales tax payable Cash generated from operations Finance cost paid Employee benefits paid Taxes paid Profit received Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment Proceeds from disposal of property, plant and equipment Proceeds from available for sale investments - net Purchase of investment property Purchase of intangible assets Long term deposits paid Long-term loans and advances received / (paid) Dividend income received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Repayment of long-term financing Short term financing - net Long term deposits availed / (repaid) Dividend paid Net cash generated from / (used in) financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period

(345,508) (829,452) (35,763) 68,652 (15,362) (2,571) 291,704 (1,786) (870,086) 477,034 (213,025) (4,310) (198,832) 4,404 (411,763) 65,271 (202,943) 9,977 62,710 (77,388) (544) (109) 7,280 3,559 (197,458) (422,447) 869,427 12,244 (279,856) 179,368 47,181 79,663 126,844

1,347,120 1,201,805 (46,275) (77,531) 19,426 (220,382) 754 1,374 553,502 (29,981) 200,887 1,402,692 (217,545) (3,084) (235,662) 4,878 (451,413) 951,279 (646,256) 47 32,521 (149,516) - - (6,164) 3,920 (765,448) (416,010) 658,591 (1,700) (261,216) (20,335) 165,496 131,002 296,498

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED) FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2018

Un-audited

The annexed notes from 1 to 19 form an integral part of these condensed interim financial Statements.




1

1.1

1.2

2

2.1

2.2

2.3


LEGAL STATUS AND OPERATIONS

Sitara Chemical Industries Limited ("the Company") was incorporated in Pakistan on September 08, 1981 as a public limited company under the Companies Act, 1913 (now the Companies Act, 2017). The Company is currently listed on the Pakistan Stock Exchange. The principal activities of the Company are operating Chlor Alkali plant and yarn spinning unit. The registered office of the Company is situated at 601-602, Business Centre, Mumtaz Hasan Road, Karachi, in the province of Sindh and the manufacturing facilities are located at 28/32 K.M., Faisalabad - Sheikhupura Road, Faisalabad, in the province of Punjab.

The Company is currently organized into two operating divisions and these divisions are the basis on which the Company reports its primary segment information.

Chemical Division Manufacturing of caustic soda and allied products Textile Division Manufacturing of yarn and fabric

These condensed interim financial statements are presented in Pak Rupee, which is the Company's functional and presentation currency.

BASIS OF PREPARATION

These condensed interim financial statements of the Company for the six months period ended December 31, 2018 have been prepared in accordance with the International Accounting Standard - 34 "Interim Financial Reporting" provisions of and directives issued under the Companies Act, 2017. In case where requirements differ, the provisions of or directives issued under the Companies Act, 2017 have been followed.

These condensed interim financial statements should be read in conjunction with annual audited financial statements for the year ended June 30, 2018. Comparative statement of financial position is extracted from annual audited financial statement for the year ended June 30, 2018, whereas comparative statement of profit or loss, comparative statement of comprehensive income, comparative statement of changes in equity and comparative of statement of cash flows are stated from un-audited condensed interim financial statements for the six months period ended December 31, 2017.

These condensed interim financial statements are un-audited. However, a limited scope review has been performed by statutory auditor of the Company in accordance with Code of Corporate Governance and they have issued their review report thereon.

Securities and Exchange Commission of Pakistan (SECP), through SRO 1007(I)/2017, dated October 4, 2017, had notified IFRS 9 “Financial Instruments”, replacing the International Accounting Standard (IAS) 39 “Financial Instruments: Recognition and Measurement” with effect from reporting periods starting July 1, 2018 which has further been deferred for the half year ended December 31, 2018, through SRO 229 (I)/2019 dated February 15, 2019. Accordingly the requirements of IFRS 9 have not been considered in the preparation of these condensed interim financial statements.

2.4

NOTES TO THE CONDENSED INTERIM FINANCIALSTATEMENTS (UN-AUDITED) FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2018



2018

Audited June 30,

2018

(Rupees in thousand) Note

9,496,488136,143

9,632,631

9,492,02780,000

9,572,027

4.1

3.

3.1

3.1.1

4.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, JUDGMENTS AND RISK MANAGEMENT

The significant accounting policies and methods of computation adopted in preparation of these condensed interim financial statements are the same as those applied in preparation of the annual audited financial statements of the Company for the year ended June 30, 2018 except as disclosed hereunder.

Changes in accounting standards

The following changes in accounting standards have taken place effective from July 01, 2018:

IFRS 15 - Revenue from contracts with customers

IFRS 15 - Revenue from contracts with customers (IFRS 15) replaced various standards and guidance including 'IAS 18 - Revenue'. IFRS 15 provides a single, principles-based approach to the recognition of revenue from all contracts with customers and focuses on the identification of performance obligations in a contract and requires revenue to be recognised when or as those performance obligations in a contract are satisfied.

The Company has determined that the adoption of IFRS 15 does not have any impact on the reported revenue of the Company for the period ended December 31, 2018.

PROPERTY, PLANT AND EQUIPMENT Operating assets Capital work-in-progress



4.1 Operating assets Opening written down value Additions during the period / year: Freehold land Buildings on freehold land - Mill Plant and machinery Grid station and electric installations Factory equipment Electric equipment Office equipment Furniture and fittings Vehicles Written down value of assetsdisposed off during the period / year Depreciation charged during the period / year

9,492,027

917 30,044 307,622

360 34,881 26,412 10,092 2,459 48,232 461,019

(3,071)

(453,487) 9,496,488

9,227,922

- 187,946 834,878 854 44,899 70,664 5,866 5,546 38,313 1,188,966

(2,610)

(922,251) 9,492,027


2018

Audited June 30,

2018

(Rupees in thousand)

The Company had revalued its freehold land, building and plant & machinery at June 30, 2016. The revaluation had been carried out by Hamid Mukhatar & Company (Private) Limited, an independent valuer not connected to the Company and is on the panel of Pakistan Banks Association as ‘Any Amount’ asset valuer. It is also on the panel of State Bank of Pakistan and possesses appropriate qualification and recent experience in the fair value measurements in the relevant locations. The fair value was determined using the comparable price method after performing detailed enquiries and verification from various estate agents, brokers and builders keeping in view the location of the property / project, condition, size, utilization, and other relevant factors.

The revaluation was performed at June 30, 2016. Out of the total revaluation surplus of Rs. 1,299 million, Rs. 1,134 million net of tax (June 30, 2018: 1,165 million) remains undepreciated as at December 31, 2018.

Details of the Company's revalued assets and information about fair value hierarchy, as at December 31, 2018 are as follows:

4.2

Land - freehold Buildings on freehold land Plant and machinery

768,936 1,358,363 6,247,989 8,375,288

- - - -

- - - -

Level 1 Level 2 Level 3

- - - -

- - - -

Level 1 Level 2 Level 3

768,019 1,400,714 6,261,008 8,429,741

Un-audited December 31, 2018

Audited June 30, 2018



2018

Audited June 30,

201



5.1

5.2

INVESTMENT PROPERTY Land Buildings Land Balance at the beginning of the period / year Addition during the period / year Disposal during the period / year Balance at end of the period / year

3,056,776 52,053 3,108,829 2,979,388 77,388 - 3,056,776

2,979,388 54,580 3,033,968 2,854,288 1,813,048 (1,687,948) 2,979,388

Buildings Cost: Balance at the beginning of the period / year Addition during the period / year Disposal during the period / year Balance at the end of the year Accumulated depreciation: At the beginning of the period / year For the period / year Accumulated depreciation on disposed asset At the end of the period / year Written down value at the end of the period / year

89,277 - - 89,277 34,697 2,527 - (37,224) 52,053

101,865 5,427 (18,015) 89,277 29,583 6,803 (1,689) (34,697) 54,580

TRADE DEBTS These include receivable from related parties amounting to Rs. 477 thousand(June 30, 2018: Nil).

OTHER FINANCIAL ASSETS Investments classified as available for sale Listed equity securities Fair value at July 01 Additions in investments during the period / year Sale / disposal of investments during the period / year Gain / (loss) on investments during the period / year

320,545

352,254 205,540 557,794 (273,721) 284,073 36,472 320,545

352,254

274,883 460,747 735,630 (347,572) 388,058 (35,804) 352,254

7.1

7.

6.

5.


Note

5.15.2

7.1


FAIR VALUE OF FINANCIAL INSTRUMENTS

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices)

or indirectly (that is, derived from prices).

Level 3 - Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

The following table presents the fair value hierarchy for financial assets which are carried at fair value:

7.2

--

- 320,545

- -

Level 1 Level 2 Level 3 Level 1 Level 2 Level 3

Un-audited December 31, 2018

Audited June 30, 2018

Investments classified as - available for sale

--

- -

- 352,254

There were no transfers between levels during the period / year. The carrying value of all other finanacial assets and liabilities reflected in these condensed interim financial statements approximate their fair values.


2018

Audited June 30,

2018(Rupees in thousand) ........No. of Shares.......

SHARE CAPITAL8.


2018

Audited June 30,

2018

40,000,000

20,000,000

8,640,000 10,804,398 1,985,009

21,429,407

40,000,000

20,000,000

8,640,000 10,804,398 1,985,009

21,429,407

Authorized Ordinary shares of Rs. 10 each Class "A"

Class "B"

Issued, subscribed and paid up Class "A" ordinary shares of Rs. 10/- each - fully paid in cash - issued as fully paid bonus shares - issued as fully paid under scheme ofarrangement for amalgamation

400,000

200,000

86,400 108,044 19,850

214,294

400,000

200,000

86,400 108,044 19,850

214,294



Class "B'' ordinary shares do not carry any voting rights.

No shares are held by any associated company or related party of the company.

The Company has no reserved shares under options or sales contracts.

8.1

8.2

8.3

9 LONG-TERM FINANCING Diminishing Musharka (from financial institutions - secured) Opening balance Obtained during the period / year Re-paid during the period / year Less: Current portion CONTINGENCIES AND COMMITMENTS Contingencies Guarantees issued by banks on behalf of the Company Commitments Outstanding letters of credit forraw material and spare parts


2018

Un-Audited

June 30, 2018


2,019,841 309,823 (422,447) 1,907,217 (873,465) 1,033,752

271,351

946,622

3,015,037 -

(995,196) 2,019,841 (844,894) 1,174,947

310,704

516,466

10

10.1

10.2

11

December 31, 2018

December 31, 2018

December 31, 2017

December 31, 2017

Un-auditedSix months period ended

Un-auditedThree months period ended

(.....................Rupees in thousand......................) SALES - NET Local: Chemicals Yarn Fabric Waste Export: Chemicals Gross Sales Less: Commission and discount Sales tax

6,096,805 952,827 97,231 8,389 7,155,252

141,619 7,296,871

(253,848) (880,623) (1,134,471) 6,162,400

5,224,828 898,830 60,468 5,629 6,189,755

212,846 6,402,601

(264,337) (754,860) (1,019,197) 5,383,404

3,206,662 600,854 61,523 4,335 3,873,374

102,091 3,975,465

(141,085) (462,565) (603,650) 3,371,815

2,843,333 554,359 27,028 4,572 3,429,292

131,534 3,560,826

(131,437) (410,250) (541,687) 3,019,139



December 31, 2018

December 31, 2018

December 31, 2017

December 31, 2017



12

13

14

(.....................Rupees in thousand......................)

COST OF SALES Raw material consumed Fuel and power Salaries, wages and benefits Factory overheads Work-in-process Opening stock Closing stock Cost of goods manufactured Finished goods Opening stock Closing stock

1,578,641 2,769,761 270,442 725,428 5,344,272

14,928 (14,920) 8 5,344,280

634,800 (1,196,802) (562,002) 4,782,278

1,095,163 2,114,124 246,712 712,467 4,168,466

11,630 (10,632) 998 4,169,464

554,064 (488,111) 65,953 4,235,417

312,199 1,942,204 131,226 367,766 2,753,395

17,096 (14,920) 2,176 2,755,571

1,059,976 (1,196,802) (136,826) 2,618,745

591,172 1,104,452 128,346 373,689 2,197,659

10,596 (10,632) (36) 2,197,623

661,204 (488,111) 173,093 2,370,716

PROVISION FOR TAXATION Current - for the period Prior year Deferred EARNINGS PER SHARE - BASICAND DILUTED Profit for the period Weighted average number of ordinary shares outstanding during the period (No. of shares in thousand) Earnings per share (Rupees)

146,054 -

1,616 147,670

543,226

21,429

25.35

2,271 547 7,915 10,733

522,125

21,429

24.37

74,981 -

(2,631) 72,350

340,197

21,429

15.88

(2,590) 547 139,113 137,070

182,829

21,429

8.53

December 31, 2018

December 31, 2018

December 31, 2017

December 31, 2017



(.....................Rupees in thousand......................)



TRANSACTIONS WITH RELATED PARTIES

The related parties comprise associated undertakings, other related group companies, directors of the company, key management personnel and post employment benefit plans. The Company in the normal course of business carries out transactions with its related parties. Details of transactions with related parties for the year are as follows:

15

December 31,

2018

December 31, 2017


Nature of transactions

Sales Organizational expenses paid Donation Remuneration to Executives

Relationship with the Company

Associated Undertakings Key Management Personnel

397 533 10,489 58,713

1,984 242 11,650 69,620

Following are the related parties with whom the Company had entered into transactionsor have arrangement / agreement in place:

Company name Sitara Developers (Private) Limited Aziz Fatima Trust Hospital

Basis of association Common directorship Common directorship

The Company does not hold any shares in the above mentioned companies.





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16.2

Un-AuditedSix months ended


2018

Audited June 30,

2018


16.3

Reconciliations of reportable segmentsare as follows:

Revenue Total revenue for reportable segments

Profit for the period Total profit for reportable segments Unallocated corporate income / (expenses) Other income Other expenses Finance cost Share of loss from investment in associate - net of tax

Profit before taxation

Assets Total assets for reportable segments Other unallocated corporate assets Company's assets

Liabilities Total liabilities for reportable segments Other unallocated corporate liabilities Company's liabilities

The Company has no reportable geographical segment.

6,162,400

906,253

91,870 (48,323) (258,904) -

690,896

5,383,404

768,799

27,976 (38,038) (225,473)

(406)

532,858

16,377,954 4,825,313 21,203,267 1,109,555 9,156,243 10,265,798

14,992,172 4,804,929 19,797,101 1,234,662 7,925,011 9,159,673



17

DATE OF AUTHORIZATION FOR ISSUE

This interim financial information has been approved by the Board of Directors of the Company and authorized for issue on February 16, 2019.

GENERAL

Figures have been rounded to the nearest thousand of Pak Rupees, unless otherwise stated.

18

19

OPERATING CASH FLOW BEFOREWORKING CAPITAL CHANGES

Profit before taxation Adjustments for: Depreciation on property, plant and equipment Depreciation on investment property Gain on sale of available for sale investsments Amortization on intangible assets Finance cost Share of loss from investment in associate - net of tax (Gain) / loss on disposal of property, plant and equipment Provision for employee benefits Dividend income Unwinding of deferred receivable Profit on bank deposits

690,896 453,487 2,527 - 595 258,904 - (6,906) 4,433 (3,559) (48,853) (4,404) 656,224 1,347,120

532,858 443,350 3,567 (491) 808 225,473 406 7 4,625 (3,920) - (4,878) 668,947 1,201,805


December 31, 2018

December 31, 2017


Un-AuditedSix months ended




Note


Documents

Quarter Report 2019 - Sitara Chemical Industries Ltd