AISHA STEEL MILLS LIMITED Nine Months Report March 2024
CONTENT | |
03 | Vision and Mission Statement |
04 | Company Information |
05 | Directors' Review Report |
08 | Condensed Interim Statement of Financial Position |
09 | Condensed Interim Statement of Profit or Loss and Other Comprehensive Income |
10 | Condensed Interim Statement of Changes in Equity |
11 | Condensed Interim Statement of Cash Flows |
12 | Notes To and Forming Part of The Condensed Interim Financial Statements |
COMPANY OVERVIEW
COMPANY OVERVIEW
COMPANY OVERVIEW
Vision
To be a global leader in the flat steel industry with the largest share of the local market while fostering the
culture of responsible production and consumption to be eventually acknowledged by its customers for quality and service excellence.
Mission
To supply the highest quality products to our clients utilizing sustainable and environmentally responsible procedures. We believe in the power of human capital in accomplishing our goal of responsible production with sustained return to our shareholders and strive to be the supplier and employer of choice in the flat steel industry.
NINE MONTHS REPORT MARCH 2024 / 03
COMPANY INFORMATION
BOARD OF DIRECTORS
Mr. Arif Habib, Chairman
Mr. Samad A. Habib
Mr. Kashif A. Habib
Mr. Nasim Beg
Dr. Munir Ahmed, Chief Executive
Ms. Tayyaba Rasheed
Mr. Arslan Iqbal
Mr. Rashid Ali Khan
Mr. Salman Ahmed Khan
AUDIT COMMITTEE
Ms. Tayyaba Rasheed - Chairperson
Mr. Nasim Beg
Mr. Samad A. Habib
Mr. Kashif A. Habib
HUMAN RESOURCE &
REMUNERATION COMMITTEE
Mr. Rashid Ali Khan - Chairman
Mr. Arif Habib
Mr. Kashif A. Habib
CHIEF FINANCIAL OFFICER
Ali Hassan
Company Secretary
Mr. Manzoor Raza
Head of Internal Audit
Mr. Muhammad Shahid
Registered Office
1/F Arif Habib Centre, 23 - M. T. Khan Road, Karachi - Pakistan - 74000
Tel: (+92 21) 32468317
Plant Address
DSU - 45, Pakistan Steel
Down Stream Industrial Estate, Bin Qasim
Karachi - Pakistan
Tel: (+92 21) 34740160
Auditors
A. F. Ferguson & Co.,
Chartered Accountants,
State Life Building No. 1-C,
I.I. Chundrigar Road, Karachi.
SHARE REGISTRAR DEPARTMENT CDC Share Registrar Services Limited CDC House, 99-B,Block B, SMCHS, Main Shahrah-e-Faisal,Karachi - 74400 Phone: 0800 - 23275
Fax: (+92 21) 34326053
Email: info@cdcsrsl.com
Website: www.cdcsrsl.com
LEGAL ADVISOR
Ahmed & Qazi
Khalid Anwer & Co.
Akhund Forbes
Mohsin TayebAly & Co.
Lex Firma
Khalid Jawed & Co.
BANKERS / LENDERS
Allied Bank Limited
Askari Bank Limited Bank Al Habib Limited Bank Alfalah Limited
Bank Islami Pakistan Limited Dubai Islamic Bank Faysal Bank Limited Habib Bank Limited
Habib Metropolitan Bank Limited JS Bank Limited
MCB Bank Limited
MCB Islamic Bank Limited Meezan Bank Limited
National Bank of Pakistan (Aitemad) National Bank of Pakistan
Pak China Investment Company Limited
Saudi Pak Industrial and Agricultural Investment Company Limited
Silk Bank Limited Sindh Bank Limited
Standard Chartered Bank (Pakistan) Limited Bank Makramah Limited (formerly known as Summit Bank Limited)
The Bank of Khyber
The Bank of Punjab
United Bank Limited
Website
www.aishasteel.com
04 / AISHA STEEL MILLS LIMITED
Directors' Review Report
The Directors of Aisha Steel Mills Limited (ASML) present herewith Directors' Review Report together with condensed interim financial statements of the Company for the third quarter ended March 31, 2024.
Steel Market Review
The HRC prices during the December 2023 and March 2024 quarter, decreased from US$ 600, FOB China to around US$ 550. The fall attributed to lack of demand in both China and Western countries. The prices since have stabilized. Going forward, a gradual recovery is anticipated on positive demand outlook projected both in China and India, the two major consumers of HRC.
Pakistan market is slow and demand sluggish. The high interest rates continue to suppress the manufacturing sector. The ongoing slowdown in auto and construction sectors is affecting offtake of CRC and GI, respectively. The local industry, already reeling under low demand, is further stressed when made to compete with tax exempted and miss-declared imports.
In a futile attempt to promote industrial activities in FATA PATA region, the Government of Pakistan allows duty and sales tax exemption on raw material imports for factories located in the FATA/PATA region. This, not well researched or thought through incentive, has been grossly misused over the past several years now. The flat products imported under the scheme include HRC (hot rolled coil), CRC (cold rolled coil) and GI (Galvanized iron coils). At current average steel price of around PKR 270,000 per ton, the price differential due to sale tax and duty exemption alone is in excess of rupees 50,000 per ton. With such a big price gap of almost 20%, the local industry simply cannot compete with these imports. Also, commercial importers are illegally avoiding anti-dumping duties on the import of GI by miss declaring it. All efforts by the domestic producers with the Government, to address these abuses, have thus far not had the Government take corrective actions, despite loss of revenue to itself. Thus, adding to the Fiscal as well as the Current Account deficits .
Operational Review
The total quantity sold during the July, 2023 to March 2024 period was 119,676 tons compared to 103,387 tons sold during the corresponding period last year showing an increase of about 16%. The export quantity was 18,185 tons compared to 1,152 tons exported during the corresponding period last year.
The total quantity produced during the period was 126,444 tons compared to 92,431 tons in the corresponding period last year, an increase of about 37%. However, this amounts to only 24% of the installed capacity. The slow offtake emanating from high rates of mark-up, as well as significant inflationary impact on the prices of automobiles, white goods and building materials, are the main reasons for weak financial results of the Company.
NINE MONTHS REPORT MARCH 2024 / 05
A brief summary of the financial results as on March 31, 2024 is as follows:
July 2023 to March 2024 period | |||||
March | March | ||||
2024 | 2023 | ||||
Rs. In | Millions | ||||
Revenue | 25,405 | ||||
31,436 | |||||
Gross Profit | 3,450 | 1,269 | |||
Finance Costs | (2,908) | (2,581) | |||
Exchange Gain / (Loss) - Net | 224 | (1,704) | |||
Profit / (Loss) before tax | 87 | (3,321) | |||
Profit / (Loss) after tax | 223 | (2,146) | |||
Earnings / (Loss) per share (PKR) | 0.15 | (2.38) |
Future Outlook:
The positive outlook coming out of China is helping stabilize steel related raw materials prices. Both iron ore and coke prices are exhibiting rising trend. The local demand is still depressed but stable. However, gradual reduction in inflation and stability witnessed in exchange rate has improved overall market sentiment. The manufacturing sector, still under pressure, may also pick up in coming months.
Acknowledgement
The directors are grateful to the Company's stakeholders for their continuing confidence and patronage. We would also like to record our appreciation to the Banks for the continuous support in the ongoing operations. We also acknowledge the support of Regulators for their continued support.
For and on behalf of the Board
Dr. Munir Ahmed | Mr. Kashif Habib |
Chief Executive | Director |
Karachi : April 27, 2024 |
06 / AISHA STEEL MILLS LIMITED
FINANCIAL STATEMENTS
NINE MONTHS REPORT MARCH 2024 / 07
Condensed Interim Statement of Financial Position
As At March 31, 2024 - (Unaudited) | ||||
(Unaudited) | (Audited) | |||
March 31, | June 30, | |||
2024 | 2023 | |||
Note | Rupees | '000 |
ASSETS
Non-current assets
Property, plant and equipment | 5 |
Intangible assets | |
Long-term advances | |
Long-term deposits | |
Deferred tax asset | |
Current assets | |
Inventories | 6 |
Trade and other receivables | 7 |
Loans, advances and prepayments | 8 |
Tax refunds due from government - Sales tax | |
Taxation - payments less provision | |
Cash and bank balances | 9 |
Total assets | |
EQUITY AND LIABILITIES | |
Share capital and reserves | |
Share capital | |
Ordinary shares | |
Cumulative preference shares | |
Difference on conversion of cumulative preference shares | |
and dividends into ordinary shares | |
Surplus on revaluation of property, plant and equipment | |
Capital reduction reserve | |
Unappropriated profit | |
Contribution from sponsor | 10 |
Liabilities | |
Non-current liabilities | |
Long-term finance - secured | 11 |
Lease liabilities | |
Employee benefit obligations | |
Current liabilities | |
Trade and other payables | |
Accrued mark-up | |
Short-term borrowings - secured | 12 |
Unclaimed dividend | |
Current maturity of long-term finance | |
Current maturity of lease liabilities | |
Total liabilities | |
Contingencies and commitments | 13 |
Total equity and liabilities
19,558,767
44,785
315
70,176
2,768,756
22,442,799
10,874,173
1,596,838
580,460
268,551
3,760,361
208,731
17,289,114
39,731,913
9,300,159
444,950
(1,762,459)
7,982,650
2,077,653
667,686
1,186,980
4,000,000
15,914,969
2,368,416
165,244
163,851
2,697,511
4,528,179
839,759
14,362,826
3,224
1,362,970
22,475
21,119,433
23,816,944
39,731,913
19,645,720
49,276
315
68,427
2,501,091
22,264,829
9,167,210
1,042,983
888,146
259,766
3,276,077
1,147,153
15,781,335
38,046,164
9,300,159
444,950
(1,762,459)
7,982,650
2,116,203
667,686
925,176
4,000,000
15,691,715
3,443,995
140,724
153,845
3,738,564
3,604,819
906,630
12,650,722
68,269
1,362,970
22,475
18,615,885
22,354,449
38,046,164
The annexed notes from 1 to 22 form an integral part of these condensed interim financial statements.
Chief Financial Officer | Chief Executive | Director |
08 / AISHA STEEL MILLS LIMITED
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Aisha Steel Mills Ltd. published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 08:28:05 UTC.
