Interim Report September 30, 2023

Company Information

2

Directors' Review

3

Condensed Interim Statement of Financial Position

5

Condensed Interim Statement of Profit or Loss and Other Comprehensive Income

6

Condensed Interim Statement of Changes in Equity

7

Condensed Interim Statement of Cash Flows

8

Notes to the Condensed Interim Financial Statements

9

Directors' Review Urdu

18

F E C T O C E M E N T L I M I T E D 1

Interim Report September 30, 2023

COMPANY INFORMATION

BOARD OF DIRECTORS

Mr. Aamir Ghani

Chairman

Mr. Mohammed Yasin Fecto

Chief Executive

Ms. Saira Ibrahim Bawani

Mr. Khalid Yacoob

Mr. Mohammed Anwar Habib

Mr. Jamil Ahmed Khan

Mr. Rohail Ajmal (Nominee of Saudi Pak Industrial & Agricultural Investment Co. Ltd.)

CHIEF FINANCIAL OFFICER

Mr. Abdul Samad, FCA

COMPANY SECRETARY

Mr. Abdul Wahab, FCA

LEGAL ADVISOR

Abid & Khan Advocates and legal Advisor

House # 303-D, Street # 29

Sector F-11/2

Islamabad.

REGISTERED OFFICE

Plot # 60-C,Khayaban-e-Shahbaz

Phase-VI, Defense Housing Authority

Karachi-75500, Pakistan

Phone Nos. (+9221) 35248921-24

Fax: (+9221) 35248925

MARKETING OFFICE

339, Main Peshawar Road

Chairing Cross Service Road

Westridge-1,

Rawalpindi

Phone Nos. (+ 9251) 5467111-13

AUDIT COMMITTEE

Mr. Jamil Ahmed Khan

Chairman

Mr. Rohail Ajmal

Mr. Mohammed Anwar Habib

HUMAN RESOURCE &

REMUNERATION COMMITTEE

Mr. Jamil Ahmed Khan

Chairman

Mr. Khalid Yacoob

Mr. Mohammed Anwar Habib

AUDITORS

Rahman Sarfaraz Rahim Iqbal Rafiq, Chartered Accountants

SHARE REGISTRAR

F. D. Registrar Services (Pvt) Ltd.

1705, 17th Floor, Saima Trade Tower-A

I. I. Chundrigar Road

Karachi-74000

Phone Nos. (+ 9221) 32271905-6

FACTORY

Sangjani, Islamabad

Phone Nos. (+ 9251) 2296065-8

BANKERS

Askari Bank Limited

Habib Metropolitan Bank Limited

MCB Bank Limited

National Bank of Pakistan

Silk Bank Limited

WEBSITE:

www.fectogroup.com

2 F E C T O C E M E N T L I M I T E D

Interim Report September 30, 2023

DIRECTORS' REVIEW

Your directors are pleased to present before you their report together with the un-audited financial results of the company for the Three Months period ended September 30, 2023.

INDUSTRY OVERVIEW

During the period under review overall sales volume of the industry increased by 23.53% with total sales volume of 11.88 million tons as against 9.6 million tons of same period last year. Local sales volume of the industry increased by 17.81% with dispatches of 10.13 million tons as against 8.60 million tons of same period last year, whereas exports of the industry increased by 71.85% with sales volume of 1.75 million tons as against 1.01 million tons of same period last year.

OPERATING PERFORMANCE

Clinker production for the period reached to 172,504 tons as against 140,401 tons of same period last year, thus increased by 22.86%. During the period the Company produced 177,631 tons of cement as against 136,383 tons of same period last year. Accordingly cement production increased by 30.24% during the period under review.

Overall sales volume of the Company increased by 32.64% during the period under review, out of which local sales volume increased by 43.70% whereas exports reduced by 83.38%. Local volume improved mainly on account of improved economic activities in the country whereas in same period last year country witnessed extraordinary rains causing floods in many parts of the country, which seriously hampered construction activities in that period. Exports to Afghanistan from the Company remained sluggish during the period under review due to frequent closure of boarder and subdued demand in Afghanistan.

FINANCIAL RESULTS

SALES REVENUE

During the period under review, gross local sales revenue increased to Rs. 3,582 million as against Rs. 2,193 million of same period last year, increasing by 63.29% whereas Net local sales revenue increased by 58.23% and reached to Rs.2,602 million as against Rs. 1,644 million of same period last year though locals sales volume increased by 32.64%. Exports sales on the other hand reduced to Rs. 24 million as against Rs. 127 million of same period last year registering reduction of 80.78% in line with reduction in volume by 83.38%.

PROFITABILITY

Cost of sales during the period under review, increased by 36.03% as against increase in sales volume by 32.64%. Out of 36.03% increase in total cost of sales, fuel and power cost increased by 15.07%. Stable prices of coal coupled with fuel efficiency achieved by the company subsequent to completion of BMR helped containing overall fuel and power costs. Salaries and wages and spares consumption increased during the period as against same period last year. The Company was able to achieve gross profit of Rs. 340 million as against Rs. 90 million of

F E C T O C E M E N T L I M I T E D 3

Interim Report September 30, 2023

same period last year. Gross profit margin in term of percentage increased to 12.94% as against 5.10% of same period last year.

Finance costs during the period increased during the period as compared to same period last year, however, it has reduced as compared to last quarter of last financial year. The Company achieved profit before tax of Rs.171 million and profit after tax of Rs. 89 million respectively for the period as against loss before tax of Rs. 51 million and loss after tax of Rs. 61million of same period last year. Earnings per share for the period was of Rs. 1.78 per share as against loss per share of Rs. 1.21 of same period last year.

FUTURE OUTLOOK

Demand of cement in local market improved during the period under review as economic activities in the country have revived post signing of agreement with IMF. Expectation of timely election coupled with easing of commodity prices have also helped improved business sentiments. Prices of coal have also stabilized in line with other commodities thus providing needed relief to the industry. Electricity rates are however, on constant rise putting pressure on overall cost of production.

ACKNOWLEDGEMENT

The Board would like to place on record their appreciation to all employees of the Company for their dedicated work and for dealers for their continued support. We are also thankful to the lenders for their cooperation and regulators for their guidance.

On behalf of the Board

JAMIL AHMED KHAN

ROHAIL AJMAL

DIRECTOR

DIRECTOR

Dated: October 28, 2023

4 F E C T O C E M E N T L I M I T E D

Interim Report September 30, 2023

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT SEPTEMBER 30, 2023

Un-audited

Audited

30 September

30 June

Note

2023

Rupees in thousand

2023

EQUITY AND LIABILITIES

Share capital and reserves

Authorized Capital

750,000

750,000

75,000,000 (2023: 75,000,000) ordinary shares of Rs. 10/- each

Issued, subscribed and paid up capital

501,600

501,600

50,160,000 (2023: 50,160,000) ordinary shares of Rs.10/- each

Revenue reserves

General reserve

550,000

550,000

Accumulated profit

2,527,489

2,438,236

Capital Reserve

3,077,489

2,988,236

106,919

106,919

Surplus on revaluation of investment in unquoted shares

Non-current liabilities

3,686,008

3,596,755

Long term financing from a banking company - secured

3

815,481

860,641

Lease Liability

4

31,714

48,398

Deferred income - Government grant

130,279

140,528

Deferred taxation

-

-

Current Liabilities

977,474

1,049,567

Trade and other payables

5

1,372,282

1,346,954

Short term borrowing - secured

508,368

954,052

Accrued mark-up

38,907

54,205

Unclaimed dividend

14,489

14,489

Unpaid dividend

185

185

Current maturity of long term financing - secured

255,574

238,355

Current maturity of lease liabilities

4

30,213

27,900

Current maturity of government grant

42,877

44,017

Contingencies and commitments

6

2,262,895

2,680,157

-

-

Total equity and liabilities

6,926,377

7,326,479

ASSETS

Non-current assets

7

2,652,179

2,708,837

Property, plant and equipment

Right-of-use assets

69,812

76,812

Investment Property

8

102,260

102,260

Long term investments

401,511

401,511

Long term deposits

10,101

10,101

Long term loans and advances

6,572

8,466

Deferred taxation

59,189

113,586

Current assets

3,301,624

3,421,573

Stores and spares

1,090,465

1,508,972

Stock-in-trade

1,921,851

1,800,895

Trade debts - unsecured

175,126

146,735

Short term loan to a related party

45,885

70,895

Loans, advances, deposits, prepayments and Other Receivable

86,740

68,911

Tax refunds due from government

89,876

109,833

Cash and bank balances

214,810

198,665

Total assets

3,624,753

3,904,906

6,926,377

7,326,479

The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements.

JAMIL AHMED KHAN

ROHAIL AJMAL

ABDUL SAMAD

DIRECTOR

CHIEF FINANCIAL OFFICER

DIRECTOR

As required u/s 232(1) of the companies act 2017, these financial statements have been signed by two directors and CFO as the Chief Executive is out of country.

F E C T O C E M E N T L I M I T E D 5

Interim Report September 30, 2023

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE PERIOD ENDED SEPTEMBER 30, 2023

Note

Sales revenue - net

9

Cost of sales

Gross profit

Administrative expenses

Distribution costs

Other expenses

Other income

Operating Profit

Finance costs

Profit / (Loss) before taxation

Taxation:

Current

Deferred

Profit / (Loss) after taxation

Other comprehensive income

Total comprehensive income / (loss) for the period

September 30

2023

2022

Rupees in thousand

2,625,901

1,770,906

(2,286,044)

(1,680,604)

339,857

90,302

(92,434)

(70,336)

(26,793)

(21,705)

(9,022)

-

(128,249)

(92,041)

34,473

17,640

246,081

15,901

(74,655)

(66,914)

171,426

(51,013)

(27,775)

(17,975)

(54,398)

8,151

(82,173)

(9,824)

89,253

(60,837)

--

89,253(60,837)

------------

(Rupees) -----------

Earning / (Loss) per share - basic and diluted

1.78

(1.21)

The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements.

JAMIL AHMED KHAN

ROHAIL AJMAL

ABDUL SAMAD

DIRECTOR

CHIEF FINANCIAL OFFICER

DIRECTOR

As required u/s 232(1) of the companies act 2017, these financial statements have been signed by two directors and CFO as the Chief Executive is out of country.

6 F E C T O C E M E N T L I M I T E D

Interim Report September 30, 2023

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) FOR THE PERIOD ENDED SEPTEMBER 30, 2023

Share

Capital

Issued,

Subscribed & Paid up

Revenue Reserves

Capital

Reserves

Surplus on

General

Accumulated

revaluation of

Reserve

Profit

investment in

unquoted

shares

(Rupees in thousands)

Total

Balance as at June 30, 2022 (Audited)

Total comprehensive loss for the

three months ended September 30, 2022

  • Loss after taxation
  • Other comprehensive income

Balance as at September 30, 2022

Balance as at June 30, 2023 (Audited)

Total comprehensive Profit for the

three months ended September 30, 2023

  • Profit after taxation
  • Other comprehensive income

501,600

-

-

501,600

501,600

-

-

-

550,000 2,571,481

  • (60,837)
  • -

550,000 2,510,644

550,000 2,438,236

  • 89,253
  • -
  • 89,253

127,693

-

-

127,693

106,919

-

-

-

3,750,774

(60,837)

-

3,689,937

3,596,755

89,253

-

89,253

Balance as at September 30, 2023

501,600

550,000

2,527,489

106,919

3,686,008

The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements.

JAMIL AHMED KHAN

ROHAIL AJMAL

ABDUL SAMAD

DIRECTOR

CHIEF FINANCIAL OFFICER

DIRECTOR

As required u/s 232(1) of the companies act 2017, these financial statements have been signed by two directors and CFO as the Chief Executive is out of country.

F E C T O C E M E N T L I M I T E D 7

20232022
Rupees in thousand
September 30

Interim Report September 30, 2023

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED) FOR THE PERIOD ENDED SEPTEMBER 30, 2023

CASH FLOWS FROM OPERATING ACTIVITIES

Note

Profit / (Loss) before taxation

Adjustments for:

- Finance costs

- Depreciation on property, plant and equipment

7

- Depreciation on right-of-use assets

- Amortization of deferred government grant

4

  • Interest income
  • Loss on disposal of property, plant and equipment
  • Provision against Workers' Profit Participation Fund

Operating Profit before working capital changes

Working capital changes

Decrease / (Increase) in current assets

  • Stores and spares
  • Stock-in-trade
  • Trade debts
  • Loans, advances, deposit and prepayment
  • Sales tax refundable

Increase /(Decrease) in current liabilities

Trade and other payables

Cash generated from / (used) in operations

Income tax paid

Long term deposits

Long term loan and advances

Net cash generated from / (used) in operating activities

CAH FLOWS FROM INVESTING ACTIVITIES

171,426

74,655

66,487

7,000

(11,389)

(9,865)

1,644

9,022

137,554

308,980

418,507

(120,956)

(28,391)

(13,232)

(3,811)

16,306

268,423

577,403

(4,007)

-

1,894

575,290

(51,013)

66,914

64,632

8,127

(12,120)

(5,007)

-

-

122,546

71,533

(71,728)

(252,595)

8,156

6,401

(11,977)

(345,998)

(667,741)

(596,208)

(4,368)

212

(114)

(600,478)

Additions to property, plant and equipment Repayment of Short Term Loan by related party Interest received

Proceeds from disposal of property, plant and equipment

Net cash generated from / (used) in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

(15,785)

25,010

5,268

4,313

18,806

(20,241)

-

846

102

(19,293)

Repayment of lease liability

Repayment of Long term financing (principal portion) Finance cost paid

Short Term Borrowings - net

Net cash (used) in / generated from financing activities

Net decrease in cash and cash equivalents

Cash and cash equivalents as at beginning of the period / year

Cash and cash equivalents as at end of the period / year

10

(14,371)

(38,427)

(79,469)

(148,520)

(280,787)

313,309

(523,667)

(210,358)

(14,561)

(20,040)

(46,663)

200,000

118,736

(501,035)

(134,118)

(635,153)

The annexed notes from 1 to 13 form an integral part of these condensed interim financial statements.

JAMIL AHMED KHAN

ROHAIL AJMAL

ABDUL SAMAD

DIRECTOR

CHIEF FINANCIAL OFFICER

DIRECTOR

As required u/s 232(1) of the companies act 2017, these financial statements have been signed by two directors and CFO as the Chief Executive is out of country.

8 F E C T O C E M E N T L I M I T E D

Interim Report September 30, 2023

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED) FOR THE PERIOD ENDED SEPTEMBER 30, 2023

1 INTRODUCTION

  1. Legal status of the Company
    Fecto Cement Limited ('the Company') was incorporated in Pakistan on February 28, 1981 as a public limited company under the repealed Companies Act, 1913 (repealed with the enactment of the Companies Ordinance, 1984 on October 8, 1984 and subsequently by the Companies Act, 2017 on May 30, 2017). The shares of the Company are quoted on Pakistan Stock Exchange Limited.
  2. Location of the registered office and the manufacturing facilities Registered office:
    The Company's registered office is situated at Plot # 60-C,Khayaban-Shahbaz,Phase-VI, Defence Housing Authority, Karachi-75500.
    Manufacturing facility:
    The Company's manufacturing facility is situated at Sangjani Village Sangjani, Islamabad- 4400.
  3. Principal business activity
    The principal activity of the Company is production and sale of ordinary portland cement.

2. BASIS OF PREPARATION

2.1 Statement of compliance

These Condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. Accounting and reporting standards comprise of:

  • International Financial Reporting Standards (IFRS Standards) issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017 (the Act);
  • Provisions of, and directives issued under, the Companies Act, 2017.

Where the provisions of, and the directives issued under, the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of, and directives issued under, the Companies Act, 2017 have been followed.

These condensed interim financial statements do not include all the information and disclosures

F E C T O C E M E N T L I M I T E D 9

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Fecto Cement Ltd. published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 06:46:42 UTC.