ARCHROMA PAKISTAN LIMITED CONTENTS
Company Information
Directors' Report
Condensed Interim Statement of Financial Position
Condensed Interim Statement of Profit or Loss and other Comprehensive Income
Condensed Interim Statement of Cash Flows
Condensed Interim Statement of Changes in Equity
Notes to the Condensed Interim Financial Statements
COMPANY INFORMATION
Chairperson | Dr. Lalarukh Eijaz | ||
Board of Directors | Mujtaba Rahim | - | Chief Executive Officer |
Irfan Chawala | |||
Patrick Verraes | |||
Shahid Ghaffar | |||
Thomas Bucher | (Alternate: Naveed Kamil) | ||
Yasmin Peermohammad | |||
Audit Committee | Shahid Ghaffar | - Chairman | |
Dr. Lalarukh Eijaz | |||
Thomas Bucher | (Alternate: Naveed Kamil) | ||
Irfan Lakhani | - | Secretary | |
Human Resources and | Yasmin Peermohammad | - Chairperson | |
Remuneration Committee | Mujtaba Rahim | (Alternate: Naveed Kamil) | |
Thomas Bucher | |||
Irfan Lakhani | - | Secretary | |
Management Committee | Mujtaba Rahim | ||
Irfan Chawala | |||
Muhammad Altaf | |||
Naveed Kamil | |||
Qazi Naeemuddin | |||
Chief Financial Officer | Irfan Chawala | ||
Company Secretary | Irfan Lakhani | ||
Bankers | Bank Al Falah Limited | ||
Bank Al Habib Limited | |||
Dubai Islamic Bank Pakistan | |||
Habib Bank Limited | |||
Habib Metropolitan Bank Limited | |||
MCB Bank Limited | |||
Meezan Bank Limited | |||
National Bank of Pakistan | |||
Standard Chartered Bank (Pakistan) Limited | |||
Auditors | KPMG Taseer Hadi & Co. Chartered Accountants | ||
Legal Advisor | Fazleghani Advocates | ||
Share Registrar | FAMCO Share Registration Services (Pvt) Limited | ||
8-F, Next to Hotel Faran, Nursery | |||
Block-6, P.E.C.H.S., | |||
Shahra-e-Faisal, Karachi | |||
Registered Office | 1-A/1, Sector 20, | ||
Korangi Industrial Area, Korangi, Karachi | |||
Factories | Petaro Road, Jamshoro | ||
LX-10,LX-11 Landhi Industrial Area Karachi | |||
Sales & Marketing Offices | Katar Bund Road, O. Multan Road, | ||
Thokar Niaz Baig, Lahore | |||
P-277, Kashmir Road, Amin Town, Faisalabad. | |||
Website | www.archroma.com.pk | ||
archroma.pakistan@archroma.com |
REPORT OF BOARD OF DIRECTORS
The Directors of your Company are pleased to present the financial report for the half-year ended 31 March 2024, together with the condensed interim financial information of the Company for the period ended 31 March 2024, as reviewed by the external auditors.
BOARD CHANGES
The shareholders at Extraordinary General Meeting held on 28 March 2024 elected Seven Directors Messrs. Thomas Bucher, Patrick Verraes, Mujtaba Rahim, Irfan Chawala, S h a h i d G h a f fa r, D r. L a l a r u k h E j a z a n d Ya s m i n Peermohammad for a term of three years.
COMPOSITION OF BOARD
The composition of the Board is as follows:
a) Male members: | 05 |
b) Female member: | 02 |
Out of the above: | |
a) Executive Director: | 02 |
b) Non-Executive Directors: | 02 |
c) Independent Directors: | 03 |
BUSINESS OVERVIEW
Archroma's major consumption Markets i.e. Textiles' and Construction Industry demand & consumer sales continued to remain slow both for local as well as exports during the half-year of the current Financial Year under review, mainly due to higher energy & commodity prices and inflation in all business costs mainly due to the Middle East crisis and continuing Russia-Ukraine conflict.
Despite the above increasingly challenging environment and less than 50% production capacity utilization for the Textiles' Industry, your Company continued to provide fullest support to its customers and was able to maintain the net sales of PKR 14,282 million during the half-year ended 31st March 2024 versus PKR 14,289 million in comparison to the same period last year.
However, Gross Margins for all the business segments of the Company remained under severe pressure due to challenging cost pass through situation on the back of devaluation of PKR versus US Dollar and other foreign currencies and consequential increase in cost of imported Raw materials during the period under review. Moreover, inflating selling & administration costs and exceptionally high borrowing costs and Taxation, severely impacted the bottom-line results of the Company, which turned into losses after taxation for the period amounting to PKR 178 million as against profit of PKR 622 million achieved in the same period last year.
On behalf of the Board
Mujtaba Rahim
Chief Executive Officer
Karachi: 29 April 2024
PROJECTS
After the closing of the global acquisition of Huntsman Textile Effects business and local acquisition of Huntsman Textile Effects Pakistan (Private) Limited now Archroma Chemicals Pakistan (Private) Limited by the Company's Holding Company i.e. Archroma Textiles GmbH, the Company initiated the process to merge Archroma Chemicals Pakistan (Private) Limited, i.e. formerly, Huntsman Textile Effects Pakistan (Private) Limited within and into the Company.
The Board of Directors of the Company in their meeting held on 27th April 2023 approved the Scheme of Arrangement, which was subsequently also approved by the members in the Extra Ordinary General Meeting held on 23rd June 2023 and later on sanctioned by the Honorable High Court of Sindh on 31st October 2023.
The entire undertaking, comprising of all Assets, Liabilities and Obligations of Archroma Chemicals Pakistan (Private) Limited, i.e. Formerly Huntsman Textile Effects Pakistan (Private) Limited, now stand merged with the Company, effective from 1st October 2023.
As consideration for the above, the Company issued 445,460 shares on the basis of a swap ratio of approximately 0.0455 Company's shares for every one share to the shareholders of Archroma Chemicals Pakistan (Private) Limited, i.e. formerly Huntsman Textile Effects Pakistan (Private) Limited.
FUTURE OUTLOOK
The Global energy and commodities' prices and Raw Materials' supply chain and availability situation has become further complex due to the armed conflict in the Middle East and as a consequence, Balance of Trade and Forex reserves' situation of Pakistan is anticipated to remain under pressure and create challenges for the business & economic outlook for the Country, in the coming months. However, with the additional financing programs under discussion with IMF and certain corrective fiscal measures are expected to positively contribute towards improvement in the overall macro-economic situation of Pakistan, which is also anticipated to support business development for Textiles and Construction Industry of the Country.
The Management is confident that with the stringent measures already put in place to further control the Company's Net Working Capital situation and strong projects' pipeline to increase its Market Share through portfolio expansion and business development post Huntsman Textile Effects' acquisition, the Company shall return back to the profitable growth track in the short to medium term.
Irfan Chawala
Director and Chief Financial Officer
KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.
KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)
As at 31 March 2024
Note | |
ASSETS | |
Non-current assets | |
Property, plant and equipment | 5 |
Long-term deposits | |
Employee benefits | 10 |
Current assets | |
Stores and spares | |
Stock-in-trade | 6 |
Trade receivables | 7 |
Advances | |
Trade deposits and short-term prepayments | |
Other receivables | |
Sales tax | 14 |
Cash and bank balances | 8 |
TOTAL ASSETS | |
EQUITY AND LIABILITIES | |
Share capital and reserves | |
Share capital | |
Issued, subscribed and paid-up capital | 9 |
Reserves | |
Capital reserve | |
Amalgamation reserve | 1.1 |
Revenue reserve | |
General reserve | |
Unappropriated profit | |
LIABILITIES | |
Non-current liabilities | |
Deferred taxation - net | 15.1.2 |
Employee benefits | 10 |
Lease liabilities | 12 |
Liabilities against diminishing musharika financing | 13 |
Current liabilities | |
Trade and other payables | |
Short-term borrowings - secured | 11 |
Current portion of lease liabilities | 12 |
Current portion of liabilities against diminishing musharaka financing | 13 |
Unclaimed dividend | |
Unpaid dividend | |
Mark-up accrued | |
Taxation - net | |
TOTAL LIABILITIES | |
CONTINGENCIES AND COMMITMENTS | 15 |
TOTAL EQUITY AND LIABILITIES |
31 March | 30 September |
2024 | 2023 |
Unaudited | Audited |
(Rupees in '000)
1,871,6621,901,906
13,20513,205
37,45656,121
1,922,3231,971,232
83,47671,520
6,720,9846,756,099
9,102,7089,312,865
41,88111,369
103,900146,594
99,57725,003
1,604,2461,836,319
209,398315,376
17,966,17018,475,145
19,888,49320,446,377
345,634 | 341,179 | ||||
93,545 | - | ||||
2,747,000 | 2,747,000 | ||||
1,169,481 | 1,245,951 | ||||
3,916,481 | 3,992,951 | ||||
4,355,660 | 4,334,130 | ||||
46,162 | 70,547 | ||||
14,792 | 10,414 | ||||
128,409 | 118,864 | ||||
128,463 | 140,356 | ||||
317,826 | 340,181 | ||||
8,074,833 | 10,349,213 | ||||
6,597,835 | 4,370,646 | ||||
23,768 | 23,573 | ||||
57,489 | 50,389 | ||||
90,846 | 90,891 | ||||
- | 511,771 | ||||
308,833 | 167,410 | ||||
61,403 | 208,173 | ||||
15,215,007 | 15,772,066 | ||||
15,532,833 | 16,112,247 | ||||
19,888,493 | 20,446,377 |
The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.
Mujtaba Rahim | Naveed Kamil | Irfan Chawala |
Chief Executive Officer | Director | Director and Chief Financial Officer |
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UN-AUDITED)
For the Six Months Period Ended 31 March 2024
Note | Six months period ended | |||||
31 March | 31 March | |||||
2024 | 2023 | |||||
(Rupees in '000) | ||||||
Sales | 17 | 16,510,910 | 16,738,447 | |||
Trade discounts and commission | 17 | 567,822 | 507,241 | |||
Sales tax | 17 | 1,661,506 | 1,941,789 | |||
2,229,328 | 2,449,030 | |||||
Sales - net | 17 | 14,281,582 | 14,289,417 | |||
Cost of sales | 11,602,921 | 10,510,982 | ||||
Gross profit | 2,678,661 | 3,778,435 | ||||
Distribution and marketing expenses | 1,624,935 | 1,439,843 | ||||
Administrative expenses | 460,823 | 384,830 | ||||
Impairment loss on trade receivables | 8,142 | 10,802 | ||||
Other expenses | 9,365 | 79,781 | ||||
2,103,265 | 1,915,256 | |||||
575,396 | 1,863,179 | |||||
Other income | 69,774 | 20,160 | ||||
645,170 | 1,883,339 | |||||
Finance costs | 592,158 | 912,052 | ||||
Profit before taxation | ||||||
53,012 | 971,287 | |||||
Taxation | 15.1.2 | 178,183 | 349,520 | |||
(Loss) / profit a/er taxation | ||||||
(125,171) | 621,767 | |||||
Other comprehensive income | - | - | ||||
Total comprehensive (loss) / income for the period | ||||||
(125,171) | 621,767 | |||||
Quarter ended
31 March 31 March
20242023 (Rupees in '000)
8,152,644 10,207,987
279,039 298,310
825,261 1,259,845
1,104,300 1,558,155
7,048,344 8,649,832
5,732,280 6,008,724
1,316,064 2,641,108
794,330 796,080
231,272 211,324
4,829 11,856
7,084 61,382
1,037,515 1,080,642
278,549 1,560,466
41,373 13,124
319,922 1,573,590
242,348 812,471
77,574 761,119
98,601 293,806
(21,027) 467,313
--
(21,027) 467,313
------------------------- | (Rupees) --------------------------------- | |||||||
Earnings per share | 18 | (3.62) | 18.22 | (0.61) | 13.70 | |||
The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.
Mujtaba Rahim | Naveed Kamil | Irfan Chawala |
Chief Executive Officer | Director | Director and Chief Financial Officer |
CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)
For the Six Months Period Ended 31 March 2024
Note | |
CASH FLOWS FROM OPERATING ACTIVITIES | |
Cash generated from operations | 19 |
Staff gratuity and other long-term service awards paid | |
Mark-up paid | |
Income taxes paid | |
Net cash used in from operating activities | |
CASH FLOWS FROM INVESTING ACTIVITIES | |
Capital expenditure | |
Proceeds from disposal of property, plant and equipment | |
Net cash generated from / (used) in investing activities | |
CASH FLOWS FROM FINANCING ACTIVITIES | |
Payment against lease liabilities | |
Payment against diminishing musharika financing - net | |
Long term loan - repayment | |
Short-term borrowings - proceeds | |
Short-term borrowings - repayments | |
Dividend paid | |
Net cash (used in) / generated from financing activities | |
Net decrease in cash and cash equivalents | |
Cash and cash equivalents transferred due to arrangement / merger | 1.2 |
Cash and cash equivalents at beginning of the period | |
Cash and cash equivalents at end of the period | 19.2 |
31 March | 31 March |
2024 | 2023 |
(Rupees in '000)
(1,076,765) | 531,075 | ||
(10,197) | - | ||
(396,622) | (146,869) | ||
(326,888) | (580,597) | ||
(1,810,472) | (196,391) | ||
(94,582) | (137,239) | ||
1,509 | 9,101 | ||
(93,073) | (128,138) | ||
(22,575) | (322) | ||
(33,262) | (31,425) | ||
- | (42,633) | ||
700,000 | 815,160 | ||
(521,000) | (400,000) | ||
(511,816) | (166,614) | ||
(388,653) | 174,166 | ||
(2,292,198) | (150,363) | ||
138,030 | - | ||
(1,620,359) | (205,709) | ||
(3,774,527) | (356,072) | ||
The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.
Mujtaba Rahim | Naveed Kamil | Irfan Chawala |
Chief Executive Officer | Director | Director and Chief Financial Officer |
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Archroma Pakistan 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 08:46:07 UTC.
