DEWAN FAROOQUE MOTORS LIMITED

THIRD QUARTERLY REPORT

MARCH 31, 2023

COMPANY INFORMATION

BOARD OF DIRECTORS

Non-Executive Directors

Mr. Mehmood-ul-Hassan Asghar

Chairman Board of Directors

Mr. Abdul Basit

Mr. Muhammad Hanif German

Mr. Ghazanfar Baber Siddiqi

Mrs. Nida Jamil

Female Director

Executive Director

Mr. Waseem-ul- Haque Ansari

Independent Director

Mr. Aziz-ul-Haque

CHIEF EXECUTIVE OFFICER

Mr. Waseem-ul- Haque Ansari

COMPANY SECRETARY

Mr. Muhammad Hanif German

CHIEF FINANCIAL OFFICER

Mr. Muhsin Ali

AUDIT COMMITTEE MEMBERS

Mr. Aziz-ul-Haque

Chairman

Mr. Ghazanfar Baber Siddiqi

Member

Mr. Abdul Basit

Member

HUMAN RESOURCE & REMUNERATION COMMITTEE MEMBERS

Mr. Aziz-ul-Haque

Chairman

Mr. Waseem-ul- Haque Ansari

Member

Mr. Abdul Basit

Member

BANKERS

AUDITORS

REGISTERED OFFICE

Allied Bank of Pakistan Limited

Feroze Sharif Tariq & Co.

Dewan Centre, 3-A,

Askari Bank Limited

Chartered Accountants

Lalazar, Beach Luxury Hotel Road,

Faysal Bank Limited

4/N/4, Block 6, P.E.C.H.S.,

Karachi, Pakistan

Habib Bank Limited

Karachi.

Meezan Bank Limited

National Bank of Pakistan

LEGAL ADVISORS

Silk Bank Limited

A.K. Brohi & Co.

Saudi Pak Industrial and Agricultural

Investment Co. (Pvt.) Limited

Standard Chartered Bank

Summit Bank Limited

The Bank of Khyber

The Bank of Punjab

TAX ADVISOR

United Bank Limited

Sharif & Co. (Advocates)

3rd Floor, Uni Plaza,

I.I. Chundrigar Road, Karachi.

SHARES REGISTRAR /

TRANSFER AGENT

BMF Consultants

Pakistan (Pvt.) Limited

Anum Estate Building, Room No. 310 & 311,

FACTORY

3rd Floor, 49, Darul Aman Society,

Jilaniabad, Budhu Talpur,

Main Shahrah-e-Faisal,

District Sajawal,

Adjacent to Baloch Colony Bridge,

Sindh.

Karachi, Pakistan.

DIRECTORS' REPORT

The Board of Directors of your Company takes pleasure in presenting the un-audited condensed interim financial statements of the Company for the Nine months' period ended March 31, 2023.

Industry Overview

Sales of automobile sector in the category of Cars, SUV and LCV segments have shown a decline of 46% as compared to the corresponding period of last year. During the period political instability in the country, hike of exchange rate, higher inflation, increased interest rates, raise in minimum wages and inflated Fuel & Electricity cost have impacted the industry negatively. Automotive manufacturers have also observed frequent plant shutdown during fiscal year, citing the country's economic crisis, restriction on opening of letters of credit for import, and halting foreign payments. These challenges have forced the auto-sector to operate up to 50% of its capacity approximately.

Company's performance

During the period under review the gross sales is Rs. 0.165 million (March 2022: Rs. 0.132

million) gross loss is Rs. 129.686 million (March 2022: Rs. 60.367 million) and the after-tax loss

is Rs. 235.042 million (March 2022: Rs. 62.093 million) due to the reason of suspension of production facilities caused on account of non-availability of working capital.

We are pleased to inform that after concerted efforts of the management, we are now in a position to restart our CKD operations at plant for the assembly of commercial vehicles as per the Technical License Agreement (TLA) signed with KIA Corporation on November 7, 2022. We are confident that the production at plant will start from June 2023 onwards Insha'Allah.

A number of recovery suits were instituted by Banks/Financial Institutions alleging default of company which are being successfully defended by our legal counsels. The proposal of re-profiling of the Company's debts is expected to be finalized very soon.

In conclusion, we bow, beg and pray to Almighty Allah, Al-Rahman,Al-Rahim, in the name of his beloved Prophet, Muhammad, peace be upon him, for continued showering of His blessings, guidance, strength, health and prosperity to us, our Company, country and nation and also pray to Almighty Allah to bestow peace, harmony, brotherhood and unity in true Islamic spirit upon whole of Muslim Ummah, Ameen, Summa Ameen.

LO-MY LORD IS INDEED HEARER OF PRAYER (AL-QURAN)

Under / By Authority of the Board of Directors

Waseem-ul-Haque Ansari

Mehmood

Asghar

Chief Executive

Director

Karachi: April 27, 2023

DEWAN FAROOQUE MOTORS LIMITED

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As at March 31, 2023

Note

March 31,

June 30,

2023

2022

Unaudited

Audited

ASSETS

( Rs. In '000)

NON-CURRENT ASSETS

Property, Plant and Equipment

6

Investment

7

CURRENT ASSETS

Stores and spares

Stock-in-trade

Trade debts - considered good

Short term loan to associated undertaking - considered good

Advances, deposits, prepayments and other receivables - Considered good Taxation - net

Cash and bank balances

TOTAL ASSETS

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Share Capital

Authorized

150,000,000 (June 30, 2022: 150,000,000) Ordinary shares of Rs.10 each

Issued, subscribed and paid-up

Issued, subscribed and paid-up

Revenue Reserve

Accumulated loss

NON-CURRENT LIABILITIES

Long term security deposits

Deferred Liabilities

CURRENT LIABILITIES

Short term loan from related parties

13

Trade and other payables

Unclaimed Dividend

Short term finances-secured

8

Current maturity of long term loans

CONTINGENCIES AND COMMITMENTS

9

TOTAL EQUITY AND LIABILITIES

730,084

807,112

49,934

14,743

672

154,879

952,788

23,876

138,905

1,335,797

2,872,993

1,500,000

1,387,353

(4,633,630)

(3,246,277)

11,700

4,231

492,583

416,112

1,802

4,095,913

1,096,929

6,103,339

2,872,993

765,959

909,483

46,557

14,856

672

154,879

846,659

23,720

128,715

1,216,058

2,891,500

1,500,000

1,387,353

(4,398,588)

(3,011,235)

11,700

4,231

293,063

399,097

1,802

4,095,913

1,096,929

5,886,804

2,891,500

The annexed notes from 1 to 16 form an integral part of these condensed interim financial statements.

Muhsin Ali

Waseem-ul-Haque Ansari

Mehmood-ul-Hassan Asghar

Chief Financial Officer

Chief Executive

Director

DEWAN FAROOQUE MOTORS LIMITED

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS ACCOUNT

FOR THE NINE MONTHS AND QUARTER ENDED MARCH 31, 2023

Nine Months Ended

Quarter Ended

March 31,

March 31,

March 31,

March 31,

Note

2023

2022

2023

2022

------------Unaudited------------

(Rs. in '000)

Gross Sales

165

132

110

14

Sales tax

(24)

(19)

(16)

(2)

Net Sales

141

113

94

12

Cost of sales

(129,827) ##

(60,480) #

(49,593)

#

(15,891)

Gross Loss

(129,686) ##

(60,367)

(49,499)

#

(15,879)

Operating expenses

Marketing & Distribution Expenses

(11,585)

##

-

#

Administration and general expenses

(20,686)

##

(9,049)

#

(32,271)

(9,049)

Operating loss

(161,957)

##

(69,416)

#

Other income/(loss)

(73,076)

##

7,324

#

Finance Cost

10

(7)

-

Profit/(Loss) before taxation

##

#

(235,040)

(62,092)

Taxation

(2)

##

(1)

Profit/(Loss) after tax

(235,042)

##

(62,093)

#

##

#

Basic / diluted Profit/(Loss) per share (Rupee)

12

(1.69)

(0.45)

The annexed notes from 1 to 16 form an integral part of these condensed interim financial statements.

(3,405) #

(6,596) #

(10,001)

(59,500) #

9,798 #

(4)

(49,706) #

(1)

(49,707) #

#

(0.36)

-

791

791

(15,088)

19,022

-

3,934

-

3,934

0.03

Muhsin Ali

Waseem-ul-Haque Ansari

Mehmood-ul-Hassan Asghar

Chief Financial Officer

Chief Executive

Director

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Dewan Farooque Motors Ltd. published this content on 28 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2023 05:06:31 UTC.