FIRST QUARTERLY
2024REPORT SEPTEMBER
CONTENT CONTENT
- Vision and Mission Statement
- Company Information
- Directors' Review Report
08 Condensed Interim Statement of Financial Position
- Condensed Interim Statement of Profit or Loss and Other Comprehensive Income
- Condensed Interim Statement of Changes in Equity
- Condensed Interim Statement of Cash Flows
- Notes To and Forming Part of The Condensed Interim Financial Statements
COMPANY OVERVIEW
We at ASML, ROLL raw steel, to a perfect shining sheet, incorporating both strength and resilience.
Unwavering support of our stakeholders, visionary leadership and hard work of our committed team is converting dreams into reality.
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.
FIRST QUARTERLY REPORT SEPTEMBER 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. Muhammad Abbas Mirza
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 FINANACIAL OFFICER
Mr. 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
Industrial and Commercial Bank of China
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 (un-audited) of the Company for the first quarter ended September 30, 2024.
Steel Market Review
The international steel market exhibited declining trend in the first quarter of the financial year 2023-24. The HRC price declined from US$ 510 per ton FOB China to US$ 480. The market since have stabilized and slow recovery in HRC price is being observed. However, demand still remains sluggish in China, America and Europe as well. The Chinese government is trying to inject stimulus to boost demand.
The local demand for both CRC and GI has improved but the local manufacturers continue to face stiff competition from importers. However, some policy changes introduced by FBR in the finance bill 2024 are discouraging high volume imports by the FATA/PATA region. The local manufacturers are optimistically cautious and hoping for gradual recovery in sale volume.
Operational Review
The total quantity sold during the Jul-Sep 2024 Qtr. was 20,504 tons as compared to 38,789 tons sold during the corresponding period last year, showing a decrease about 47%. The exports during the period were 1,975 tons compared to 2,463 tons exported last year.
The total quantity produced during the period was 23,187 tons compared to 38,588 tons in the corresponding period of last year, showing a decrease of about 40%.
A brief summary of the financial results as on September 30, 2024 is as follows:
Quarter ended | ||||
September | September | |||
2024 | 2023 | |||
Rs. In Millions | ||||
Revenue | 4,580 | 10,599 | ||
Gross profit | 71 | 1,034 | ||
Finance Costs | (1,130) | (972) | ||
Exchange (loss) / gain- (Net) | (8) | 139 | ||
(Loss) / Profit before tax | (1,222) | 50 | ||
(Loss) / Profit after tax | (843) | 35 | ||
(Loss) / Earnings per share (PKR) | (0.93) | 0.01 |
The decline in international CRC and GI prices and stiff competition from imports forced the local manufacturers to reduce selling price to encourage sales. The high inventory cost of HRC seriously compromised net realization of gross margin, resulting in a net loss of PKR 843 million.
The international HRC prices since have improved and ASML inventory cost has come down, the gross margin is expected to improve in the coming months.
Future Outlook:
The auto sector is anticipating modest recovery in the coming months. The white goods industry is also anticipating increase in production volume. Consumption of both CRC and GI is expected to gradually improve.
FIRST QUARTERLY REPORT SEPTEMBER 2024 / 05
Acknowledgement
We would like to record our appreciation and gratitude to the Banks for the continuous support in the ongoing operations as well as in the expansion project. We also acknowledge the support of Regulators for their continued support.
For and on behalf of the Board
Dr. Munir Ahmed | Kashif Habib |
Chief Executive | Director |
Karachi : October 29, 2024 |
06 / AISHA STEEL MILLS LIMITED
FINANCIAL
STATEMENTS
Condensed Interim Statement of
Financial Position
As at September 30, 2024 - (Unaudited) | ||||
(Unaudited) | (Audited) | |||
September 30, | June 30, | |||
2024 | 2024 | |||
Note | Rupees '000 |
ASSETS
Non-current assets
Property, plant and equipment | 5 | 19,481,598 |
Intangible assets | 41,793 | |
Long-term advances | 294 | |
Long-term deposits | 68,316 | |
Deferred tax asset | 3,088,023 | |
22,680,024 | ||
Current assets | ||
Inventories | 6 | 8,465,033 |
Trade and other receivables | 7 | 1,021,727 |
Loans, advances and prepayments | 458,533 | |
Tax refunds due from government - Sales tax | 117,738 | |
Taxation - payments less provision | 4,684,521 | |
Cash and bank balances | 8 | 345,303 |
15,092,855 | ||
Total assets | 37,772,879 | |
EQUITY AND LIABILITIES | ||
Share capital and reserves | ||
Share capital | ||
Ordinary shares | 9,300,159 | |
Cumulative preference shares | 444,950 | |
Difference on conversion of cumulative preference shares | ||
and dividends into ordinary shares | (1,762,459) | |
7,982,650 | ||
Surplus on revaluation of property, plant and equipment | 2,215,798 | |
Capital reduction reserve | 667,686 | |
Unappropriated (Loss) / profit | (2,279) | |
Contribution from sponsor | 9 | 6,904,500 |
17,768,355 | ||
Liabilities | ||
Non-current liabilities | ||
Long-term finance - secured | 10 | 572,133 |
Lease liabilities | 163,482 | |
Employee benefit obligations | 205,464 | |
941,079 | ||
Current liabilities | ||
Trade and other payables | 740,946 | |
Accrued mark-up | 949,810 | |
Short-term borrowings - secured | 11 | 15,099,057 |
Sales tax payable | - | |
Unclaimed dividend | 3,223 | |
Current maturity of long-term finance | 2,248,137 | |
Current maturity of lease liabilities | 22,272 | |
19,063,445 | ||
Total liabilities | 20,004,524 | |
Contingencies and commitments | 12 | |
Total equity and liabilities | ||
37,772,879 | ||
The annexed notes from 1 to 20 form an integral part of these condensed interim financial statements.
19,624,339
43,300
294
68,601
2,650,936
22,387,470
9,870,972
2,930,930
554,932
-
4,635,782
217,072
18,209,688
40,597,158
9,300,159
444,950
(1,762,459)
7,982,650
2,229,316
667,686
827,326
4,000,000
15,706,978
572,133
171,579
197,759
941,471
3,440,303
1,191,529
16,490,129
178,116
3,223
2,623,137
22,272
23,948,709
24,890,180
40,597,158
Chief Financial Officer | Chief Executive | Director |
08 / AISHA STEEL MILLS LIMITED
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