CONTENTS
COMPANY INFORMATION | 02 |
DIRECTORS' REVIEW (ENGLISH) | 03 |
DIRECTORS' REVIEW (URDU) | 05 |
INDEPENDENT AUDITOR'S REVIEW REPORT | 07 |
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION | 08 |
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS | 09 |
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME | 10 |
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY | 11 |
CONDENSED INTERIM STATEMENT OF CASH FLOWS | 12 |
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS | 13 |
BALUCHISTAN GLASS LIMITED | 01 | FOR THE HALF YEAR ENDED |
DECEMBER 31, 2024 |
COMPANY INFORMATION
BOARD OF DIRECTORS | |
Mr. Mohammad Baig | CEO |
Mr. Muhammad Tousif Peracha | Chairman |
Mrs. Tabassum Tousif Peracha | |
Mr. Mustafa Baig | |
Mr. Mohsin Iqbal Khan | |
Mr. Tahir Farooq | |
Mr. Muhammad Niaz Paracha | |
AUDIT COMMITTEE | |
Mr. Mohsin Iqbal Khan | Chairman Audit Committee |
Mr. Muhammad Tousif Peracha | Member |
Mr. Mustafa Baig | Member |
HR & REMUNIRATION COMMITTEE | |
Mr. Mohsin Iqbal Khan | Chairman HR & R Committee |
Mr. Muhammad Tousif Peracha | Member |
Mr. Mohammad Baig | Member |
CHIEF FINANCIAL OFFICER
Mr. Muhammad Kashif Siddique, FCA, FPA
COMPANY SECRETARY
Mr. M. Furquan Habib, ACCA
BANKERS
Meezan Bank Limited
Soneri Bank Limited
United Bank Limited
MCB Bank Limited
Al Baraka Bank Pakistan Limited
Faysal Bank Limited
Bank Alfalah Limited
The Bank of Punjab
National Bank of Pakistan
JS Bank Limited
Bank Islami Pakistan Limited
Habib Bank Limited
AUDITORS
PKF F.R.A.N.T.S.
Chartered Accountants
LEGAL ADVISOR
Masood Khan Ghory
(Advocate & Legal Consultant)
REGISTERED OFFICE
Plot no. 8, Sector M, H.I.T.E.,
Hub, District Lasbella, Baluchistan. Tel : 0853 - 363657
HEAD OFFICE
128-J/I, Model Town, Lahore. Tel: 042-35836866 - 35837311 Web: www.balochistanglass.com Email: info@balochistanglass.com
FACTORIES
UNIT-I
Plot no. 8, Sector M, H.I.T.E., Hub, District Lasbella, Baluchistan.
UNIT-II
29-KM, Sheikhupura Road, Sheikhupura.
UNIT-III
12-KM, Sheikhupura Road, Kot Abdul Malik,Lahore.
SHARE REGISTRAR
Corplink (Pvt.) Limited
Wings Arcade,1-K, Commercial,
Model Town, Lahore.
BALUCHISTAN GLASS LIMITED | 02 | FOR THE HALF YEAR ENDED |
DECEMBER 31, 2024 |
DIRECTORS' REVIEW
The Board of Directors of M/s Baluchistan Glass Limited (the "Company" / "BGL") present their review together with the unaudited condensed interim financial statements of the Company with limited scope review by the statutory auditors for the six-month period ended December 31, 2024.
Financial and Operational Performance:
Analysis of key operating results for the current period in comparison with the previous period is given below:
Six-Month Period | Quarter | |||
Ended December 31, | Ended December 31, | |||
2024-2025 | 2023-2024 | 2024-2025 | 2023-2024 | |
Rupees in thousands | Rupees in thousands | |||
Sales - Net | 625,870 | 11,649 | 216,824 | 5,192 |
Gross Loss | (305,772) | (92,011) | (176,288) | (41,131) |
Operating Loss | (302,636) | (100,065) | (145,013) | (46,287) |
Loss Before Levies And Income Tax | (454,330) | (182,161) | (225,555) | (88,959) |
Loss For The Period | (458,288) | (179,394) | (226,332) | (84,861) |
Loss Per Share-Basic And Diluted (Rs.) | (1.75) | (0.69) | (0.87) | (0.33) |
During the period under report, the Company faced substantial internal and external challenges which mainly include persistent high energy costs, inconsistent gas supply, widespread economic uncertainty and in particular the law and order situation. These factors significantly impeded the Company's efforts to achieve optimal operational and financial performance.
BGL's production facilities comprising three glass production plants, out of which two of these plants (i.e., Unit-II and Unit-III) have outlived their useful campaign life. While the Company has temporarily suspended production operations at Unit-I, located in Hub, District Lasbela, Baluchistan, on November 15, 2024 due to technical issues. The commercial operations at Unit - I commenced on June 4, 2024 with a capacity of 110 metric tons per day of glass produce. The efforts are currently underway to resolve the technical problems and production will resume once these issues are fully addressed. In the interim, the Company has been utilizing its available inventory of tableware and pharmaceutical packaging glass to meet market demand and generate revenue.
In terms of financial restructuring, a major milestone was achieved during the quarter as the authority at Securities & Exchange Commission of Pakistan (SECP) has granted approval to the BGL for issuance of 376,912,057 Ordinary Shares at par value of Rs. 10/- per share amounting to Rs. 3,769,120,570/- by way of other than right offer to M/s MMM Holding (Private) Limited against its outstanding loan towards the Company under Section 83 (1) (b) of the Companies Act, 2017 on January 16, 2025.
Additionally, subdued market demand and pricing pressures in the pharmaceutical glass packaging segment have necessitated adjustments in pricing strategies and the extension of credit terms to customers. These market dynamics have further tested the Company's resilience and competitive positioning.
BALUCHISTAN GLASS LIMITED | 03 | FOR THE HALF YEAR ENDED |
DECEMBER 31, 2024 |
Future Outlook:
In another positive development, the State Bank of Pakistan's Monetary Policy Committee reduced the policy rate multiple times during the preceding quarters, bringing it down to 12% from a previous high of 22%. This reduction is expected to significantly alleviate the financial pressure on the Company, enhancing its interest coverage capabilities and the liquidity position. The lower interest rates provide an opportunity for the Company to better manage its financial commitments and focus on operational improvements.
Despite recent advancements, the Company faces significant challenges due to rising energy costs and limited gas supply, which hinder operational efficiency and increase production costs. Gas tariffs remain high as the rates for general industry and captive power usage are Rs. 2,150 per MMBTU and Rs. 3,500 per MMBTU respectively. The limited gas supply often at only 30% to 40% of the total sanctioned load forces our reliance on consuming expensive alternatives like furnace oil and diesel. Additionally, the Glass Industry is continuously struggling with rising costs, liquidity constraints and excessive taxation that leads to financial strain. The inability to pass on escalating power and fuel costs to customers coupled with a stagnating economy has disrupted sales strategies and exerted downward pressure on pricing.
To address these challenges, the Company is executing a strategic resumption plan that includes sustainable energy- saving initiatives, enhancements in production efficiency, strengthened financial management and market adaptation by focusing on high-margin segments and exports. With these measures in place and backed by the financial support of sponsors and the financier banks, the Management remains optimistic about reviving operations in the final quarter of the current financial year.
Management is making every effort to address these challenges and is committed to persevering through and overcoming all obstacles to ensure the Company's success.
For and on behalf of the Board
Lahore | Mr. Mohammad Baig | Muhammad Niaz Paracha |
February 22, 2025 | Chief Executive | Director |
BALUCHISTAN GLASS LIMITED | 04 | FOR THE HALF YEAR ENDED |
DECEMBER 31, 2024 |
BALUCHISTAN GLASS LIMITED | 05 | FOR THE HALF YEAR ENDED |
DECEMBER 31, 2024 |
BALUCHISTAN GLASS LIMITED | 06 | FOR THE HALF YEAR ENDED |
DECEMBER 31, 2024 |
INDEPENDENT AUDITOR'S REVIEW REPORT
TO THE MEMBERS OF BALUCHISTAN GLASS LIMITED REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS
Introduction
We have reviewed the accompanying condensed interim statement of financial position of Baluchistan Glass Limited as at December 31, 2024 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, and condensed interim statement of cash flows, and notes to the financial statements for the six-month period then ended (here-in-after referred to as the "interim financial statements"). Management is responsible for the preparation and presentation of this interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these financial statements based on our review. The figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three-month period ended December 31, 2024 and 2023 have not been reviewed, as we are required to review only the cumulative figures for the six-month period ended December 31, 2024.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements is not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.
Material uncertainty related to going concern
We draw attention to Note 2 in the condensed interim financial statements, which indicates that the Company has incurred a net loss of Rs. 458.288 million during the six-month period ended December 31, 2024 and, as of that date, its accumulated losses of Rs. 7,064.098 million have resulted in negative equity of Rs. 3,700.318 million and its current liabilities exceeded its current assets by Rs. 1,598.497 million. As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.
The engagement partner on the review resulting in this independent auditor's review report is Muhammad Talib.
PKF F.R.A.N.T.S. | Date: February 22, 2025 |
Chartered Accountants | UDIN: RR202410142QFjDKlwuH |
BALUCHISTAN GLASS LIMITED | 07 | FOR THE HALF YEAR ENDED |
DECEMBER 31, 2024 |
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)
AS AT DECEMBER 31, 2024
Un-Audited | Audited | |
December | June | |
31, 2024 | 30, 2024 |
Note | |
EQUITY AND LIABILITIES | |
SHARE CAPITAL AND RESERVES | |
Authorized share capital | 6 |
Issued, subscribed and paid-up share capital | |
Discount on shares | |
Capital reserve | |
Surplus on revaluation of property (land and building) - net of tax | |
Revenue reserve | |
Accumulated losses | |
Loan from director | 7 |
Loan from holding company | 8 |
NON-CURRENT LIABILITIES | |
Long term loan from related parties | 9 |
Deferred liabilities | 10 |
CURRENT LIABILITIES | |
Trade and other payables | 11 |
Short term borrowings | 12 |
Mark up accrued | |
Unclaimed dividend | |
CONTINGENCIES AND COMMITMENTS | 13 |
TOTAL EQUITY AND LIABILITIES | |
ASSETS | |
NON-CURRENT ASSETS | |
Property, plant and equipment | 14 |
CURRENT ASSETS | |
Stores, spare parts and loose tools | |
Stock in trade | 15 |
Trade debts | 16 |
Loans and advances | |
Trade deposits, prepayments and other receivable | |
Advance income tax - net of provision for taxation | |
Cash and bank balances |
TOTAL ASSETS
(Rupees in thousands)
7,000,000 | 2,666,000 | |
2,616,000 | 2,616,000 | |
(514,800) | (514,800) | |
2,101,200 | 2,101,200 | |
1,262,580 | 1,272,041 | |
(7,064,098) | (6,615,271) | |
(3,700,318) | (3,242,030) | |
1,234,846 | 1,234,846 | |
3,769,121 | 3,769,121 | |
1,303,649 | 1,761,937 | |
466,000 | 100,000 | |
85,891 | 89,756 | |
551,891 | 189,756 | |
1,064,129 | 1,346,118 | |
1,181,196 | 1,081,845 | |
107,237 | 46,513 |
164164
2,352,7262,474,640
4,208,2664,426,333
3,454,0373,557,658
69,965 | 80,775 |
323,267 | 256,456 |
2576,993
9,1195,173
236,812 | 227,031 | |
23,648 | 6,925 | |
91,393 | 215,322 | |
754,229 | 868,675 | |
4,208,266 | 4,426,333 | |
The annexed notes from 1 to 21 form an integral part of these condensed interim financial statements.
CHIEF EXECUTIVE OFFICER | CHIEF FINANCIAL OFFICER | DIRECTOR |
BALUCHISTAN GLASS LIMITED | 08 | FOR THE HALF YEAR ENDED |
DECEMBER 31, 2024 |
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)
FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, 2024
Six Months Period Ended | Three Months Period Ended | |||
December 31, | December 31, | |||
Note | 2024 | 2023 | 2024 | 2023 |
(Rupees in thousands) | (Rupees in thousands) | |||
Restated | Restated | |||
Sales - net | 625,870 | 11,649 | 216,824 | 5,192 | ||||
Cost of sales | (931,642) | (103,660) | (393,112) | (46,323) | ||||
Gross loss | (305,772) | (92,011) | (176,288) | (41,131) | ||||
Administrative and selling expenses | (36,991) | (8,066) | (8,554) | (5,168) | ||||
Other income | 17 | 40,127 | 12 | 39,829 | 12 | |||
Operating loss | (302,636) | (100,065) | (145,013) | (46,287) | ||||
Finance cost | (151,694) | (82,096) | (80,542) | (42,672) | ||||
Loss before levies and income tax | (454,330) | (182,161) | (225,555) | (88,959) | ||||
Levies | (7,823) | (146) | (2,710) | (65) | ||||
Loss before income tax | (462,153) | (182,307) | (228,265) | (89,024) | ||||
Income tax | ||||||||
- Deferred | 3,865 | 2,913 | 1,933 | 4,163 | ||||
Loss for the period | (458,288) | (179,394) | (226,332) | (84,861) | ||||
Loss per share - basic and diluted (Rs.) | (1.75) | (0.69) | (0.87) | (0.33) | ||||
The annexed notes from 1 to 21 form an integral part of these condensed interim financial statements.
CHIEF EXECUTIVE OFFICER | CHIEF FINANCIAL OFFICER | DIRECTOR |
BALUCHISTAN GLASS LIMITED | 09 | FOR THE HALF YEAR ENDED |
DECEMBER 31, 2024 |
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