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
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
-
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. - 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. - 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.