QUARTERLY
REPORT
SEPTEMBER
2023
Company Information
Board of Directors | |
Sheikh Amar Hameed | - Chairman |
Mr. Zafar Mahmood | - Chief Executive Officer |
Mr. Khalid Mumtaz Qazi | |
Mr. Muhammad Yahya Khan | |
Mr. Osman Hameed | |
Mr. Khalid Siddiq Tirmizey | |
Mr. Pervaiz Ahmad Khan | |
Mrs. Nazia Qureshi | |
Chief Financial Officer | |
Syed Sajid Nasim |
Company Secretary
Mr. Muhammad Inam-ur-Rahim
Head of Internal Audit
Mr. Umair Tahir
Auditors
Crowe Hussain Chaudhury & Co.
Chartered Accountants
Audit Committee | |
Mr. Pervaiz Ahmad Khan | - Chairman |
Mrs. Nazia Qureshi | - Member |
Mr. Osman Hameed | - Member |
Human Resources & | |
Remuneration Committee | |
Mr. Khalid Siddiq Tirmizey | - Chairman |
Sheikh Amar Hameed | - Member |
Mr. Zafar Mahmood | - Member |
Share Registrar
Corplink (Pvt.) Limited
Wings Arcade, 1-K Commercial,
Model Town, Lahore. Pakistan.
Tel: +92 42 35916714 & 19
Fax: +92 42 35869037
www.corplink.com.pk
Legal Advisors
M/s Hassan & Hassan
Advocates
Bankers
Al Baraka Bank (Pakistan) Limited
Askari Bank Limited
Bank Alfalah Limited
Bank Islami Pakistan Limited
Habib Bank Limited
Habib Metropolitan Bank Limited
JS Bank Limited
MCB Bank Limited
Meezan Bank Limited
Pak Brunei Investment Company Limited
Soneri Bank Limited
The Bank of Punjab
Registered Office / Plant - 1
14.5 Km, Lahore-Sheikhupura Road, Lahore, Pakistan.
Tel : +92 42 37971512-14
Fax: +92 42 37970229
Plant - 2
14.8 Km, Sheikhupura-Faisalabad Road, Bhikhi, Dist. Sheikhupura. Pakistan.
Tel : +92 56 3883001 - 7
Fax: +92 56 3883010
Head Office
122-B, New Muslim Town,
Lahore, Pakistan.
Tel : +92 42 35926090-93
Fax: +92 42 35926099
Karachi Office
607, Progressive Centre, Block-6,
PECHS, Shahrah-e-Faisal, Karachi.
Tel : +92 21 34327661-62
Web Site
www.nimir.com.pk
Quarterly Report September 2023
1
DIRECTORS' REVIEW REPORT
The Directors are pleased to present their review report together with the unaudited financial statements of Nimir Resins Limited (the "Company") for the first quarter, which ended on September 30, 2023
An analysis of the financial results for the said quarter is as under:
September | September | % | |
2023 | 2022 | ||
Rupees '000 | Rupees '000 | ||
Sales revenue | 3,141,629 | 2,717,453 | 15.61 |
Gross Profit | 299,452 | 205,228 | 45.91 |
Operating Profit | 231,339 | 156,144 | 48.16 |
Profit After Taxation | 81,182 | 17,210 | 372% |
Earnings Per Share* Rs. | 0.57 | 0.12 | 372% |
( Basic & diluted ) |
Alhamdulillah during the first quarter of 2024 the top line grew by 15.61% over the corresponding period mainly driven by prices caused by devaluation of PKR. As a result of this we were able to increase the gross profit and Operating Profit by 45.91% and 48.16% respectively. The financial cost also decreased during the period due to efficient utilization of short-term lines The after-tax profit during the period also increased by 372% over the corresponding period.
The raw material prices in the international market have shown declining trend in last few months. This may have some negative impact on the profitability in the coming quarter. The recent actions taken by the government has helped the Pak Rupee in gaining strength against US Dollar but the instability of PKR is still far from over. We, however, hope that the economic revival will start in the second half of the year and the businesses to gradually return to normalcy.
Despite, these challenges, we will keep striving in the best possible way to remain less affected and keep enhancing shareholders value, Insha Allah.
On behalf of the board, the company would like to thank all of its stakeholders for their continued trust and support.
For and on the behalf of the Board | |||
Lahore | Khalid Mumtaz Qazi | Zafar Mahmood | |
October 24, 2023 | Director | Chief Executive Officer |
2
Nimir Resins Limited
Quarterly Report September 2023
3
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT SEPTEMBER 30, 2023
Note
EQUITY AND LIABILITIES
Share Capital and Reserves
Authorized share capital
150,000,000 (June 30, 2023: 150,000,000) Ordinary shares of Rs. 10 each (June 30, 2023: Rs.10 each)
Issued, subscribed and paid up share capital
141,321,064 (June 30, 2023: 141,321,064) Ordinary shares of Rs. 10 each (June 30, 2023: Rs.10 each)
Share deposit money Sponsors' interest free loans Reserves
Surplus on revaluation of property, plant and equipment- net
Non Current Liabilities
Long term financing5 Lease liabilities
Post employment benefits obligation Deferred tax liability
Current Liabilities Trade and other payables Unclaimed dividends Accrued mark up
Short term borrowings6 Current portion of long term financing
Current portion of lease liabilities Provision for taxation
Contingencies and Commitments | 7 |
Total Equity and Liabilities
ASSETS
Non Current Assets
Property, plant and equipment8 Right-of-use assets
Long term deposits
Current Assets
Stores and spares
Stock in trade
Trade debts
Loans and advances
Short term prepayments
Other receivables
Tax refunds due from government
Cash and bank balances
Total Assets
(Un-audited)
Sept. 2023
(Rs. '000')
1,500,000
1,413,211
9,391
107,000
891,860
795,247
3,216,709
12,500
29,933
46,667
79,141
168,241
798,876
293
58,527
1,571,000
24,286
8,506
332,156
2,793,644
-
6,178,594
1,499,255
37,773
27,015
1,564,043
32,723
1,561,121
2,412,551
64,013
18,619
110,198
354,198
61,128
4,614,551
6,178,594
(Audited)
June 2023
(Rs. '000')
1,500,000
1,413,211
9,391
107,000
808,351
797,574
3,135,527
90,000
31,990
42,091
83,716
247,797
1,096,284
293
44,693
851,377
68,929
8,155
271,965
2,341,696
-
5,725,020
1,503,351
40,578
27,015
1,570,944
28,318
1,616,419
1,942,682
49,865
-
29,304
353,465
134,023
4,154,076
5,725,020
The annexed notes from 1 to 14 form an integral part of this condensed interim financial information (un-audited).
CHIEF EXECUTIVE OFFICER | DIRECTOR | CHIEF FINANCIAL OFFICER |
4
Nimir Resins Limited
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS
FOR THE QUARTER ENDED SEPTEMBER 30, 2023 (UN-AUDITED)
Quarter Ended
Note | |
Revenue from Sales | |
Less: Sales tax | |
Sales - net | |
Cost of sales | 9 |
Gross Profit | |
Operating expenses: | |
Distribution costs | |
Administrative expenses | |
Operating Profit | |
Other operating charges | |
Finance cost | |
Other income | |
Profit before Taxation | |
Taxation | |
Current | |
Super tax | |
Deferred | |
Net profit for the Period | |
Earning per Share - Basic & diluted (Rs.) | 10 |
Sept. 2023
Rs. "000"
3,141,629
(474,471)
2,667,158
(2,367,706)
299,452
(32,055)
(36,058)
(68,113)
231,339
(10,757)
(90,277)
6,492
136,797
(44,757)
(15,433)
4,575
(55,615)
81,182
0.57
Sept. 2022
Rs. "000"
2,717,453
(411,304)
2,306,149
(2,100,921)
205,228
(26,612)
(22,472)
(49,084)
156,144
(3,221)
(112,071)
2,833
43,685
(28,851)
(1,631)
4,007
(26,475)
17,210
0.12
The annexed notes from 1 to 14 form an integral part of this condensed interim financial information (un-audited).
CHIEF EXECUTIVE OFFICER | DIRECTOR | CHIEF FINANCIAL OFFICER |
Quarterly Report September 2023
5
Condensed Interim Statement of Other Comprehensive Income
FOR THE QUARTER ENDED SEPTEMBER 30, 2023 (UN-AUDITED)
Quarter Ended | ||||
Sept. 2023 | Sept. 2022 | |||
Rs. "000" | Rs. "000" | |||
Net Profit for the Period | 81,182 | 17,210 | ||
Other comprehensive income | - | - | ||
Total Comprehensive Income for the Period | 81,182 | 17,210 |
The annexed notes from 1 to 14 form an integral part of this condensed interim financial information (un-audited).
CHIEF EXECUTIVE OFFICER | DIRECTOR | CHIEF FINANCIAL OFFICER |
6
Nimir Resins Limited
Quarterly Report September 2023
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE QUARTER ENDED SEPTEMBER 30, 2023 (UN-AUDITED)
Share | Share | Sponsors' | Reserves | Revaluation | Total | ||
Particulars | |||||||
Capital | Deposit | Loan | Share | Accumulated | Surplus | Equity | |
Money | Interest Free | Premium | Profit | ||||
-------------------------------------------------------- | Rs. '000' -------------------------------------------------------- | ||||||
Balance as at June 30, 2022 | 1,413,211 | 11,391 | 107,000 | 1,281 | 415,474 | 484,248 | 2,432,605 |
Net profit for the period | - | - | - | - | 17,210 | - | 17,210 |
Incremental depreciation for the period on | |||||||
surplus on revaluation of property, plant | |||||||
and equipment - net of deferred tax | - | - | - | - | 1,328 | (1,328) | - |
Balance as at September 30, 2022 | 1,413,211 | 11,391 | 107,000 | 1,281 | 434,012 | 482,920 | 2,449,815 |
Balance as at June 30, 2023 | 1,413,211 | 9,391 | 107,000 | 1,281 | 807,070 | 797,574 | 3,135,527 |
Net profit for the period | - | - | - | - | 81,182 | - | 81,182 |
Incremental depreciation for the period on | |||||||
surplus on revaluation of property, plant | |||||||
and equipment - net of deferred tax | - | - | - | - | 2,327 | (2,327) | - |
Balance as at September 30, 2023 | 1,413,211 | 9,391 | 107,000 | 1,281 | 890,579 | 795,247 | 3,216,709 |
The annexed notes from 1 to 14 form an integral part of this condensed interim financial information (un-audited).
CHIEF EXECUTIVE OFFICER | DIRECTOR | CHIEF FINANCIAL OFFICER |
7
Condensed Interim Statement of Cash Flow
FOR THE QUARTER ENDED SEPTEMBER 30, 2023 (UN-AUDITED)
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation
Adjustments:
- Depreciation
- Depreciation on right of use asset
- Provision for gratuity
- Workers' profit participation fund
- Worker welfare fund
- Exchange loss / (gain) - net
- Finance cost
Operating profit before working capital changes
(Increase) / decrease in current assets:
- Stores and spares
- Stock in trade
- Trade debts
- Loans and advances
- Trade deposits and short term prepayments
- Other receivables
- Sales Tax Refundable
Increase / (decrease) in current liabilities: - Trade and other payables
Cash (used in) / generated from operations
Finance cost paid
Income tax paid
Net Cash (Used In) / Generated From Operating Activities
CASH FLOW FROM INVESTING ACTIVITIES
Property, plant and equipment purchased
Capital work in progress
Long term deposits
Net Cash Used In Investing Activities
CASH FLOW FROM FINANCING ACTIVITIES
Payments against long term financing
Payments against diminishing musharaka arrangements Payments against lease liabilities
Short term borrowings - net
Net Cash Generated From / (Used In) Financing Activities Net Decrease in Cash and Cash Equivalents
Cash and cash equivalents at the beginning of the period
Cash and Cash Equivalents at the End of the Period
Quarter Ended
Sept. 2023 | Sept. 2022 | |
Rs. "000" | Rs. "000" | |
136,797 | 43,685 | |
22,416 | 18,930 | |
2,805 | 2,178 | |
4,576 | 3,060 | |
7,323 | 2,335 | |
2,783 | 887 |
652(23)
88,753 111,923
129,308 139,290
266,105 182,975
(4,405) | (3,643) | ||
55,298 | 356,274 | ||
(469,869) | (452,220) | ||
(14,148) | 14,416 | ||
(18,619) | (10,916) | ||
(80,895) | 11,365 | ||
35,317 | 32,854 | ||
(308,166) | 149,525 | ||
(805,487) | 97,655 | ||
(539,382) | 280,630 | ||
(74,919) | (83,497) | ||
(36,048) | (31,748) | ||
(650,349) | 165,385 | ||
(88) | (832) | ||
(18,232) | (13,295) |
- (2,295)
(18,320) (16,422)
(122,143) | (16,360) |
- (166)
(1,706)(1,544)
719,623 (142,382)
595,774 (160,452)
(72,895) (11,489)
134,02324,649
61,12813,160
The annexed notes from 1 to 14 form an integral part of this condensed interim financial information (un-audited).
CHIEF EXECUTIVE OFFICER | DIRECTOR | CHIEF FINANCIAL OFFICER |
8
Nimir Resins Limited
Notes to and Forming part of the Condensed Interim Financial Information
FOR THE QUARTER ENDED SEPTEMBER 30, 2023 (UN-AUDITED)
- THE COMPANY AND ITS OPERATIONS
- Nimir Resins Limited (the Company) was initially incorporated in Pakistan on December 17, 1964 as a private limited company under the Companies Act, 1913 (now the Companies Act, 2017) and was converted into public limited company on August 19, 1991 with the name of Nimir Resins Limited. The name of the Company was changed to Descon Chemicals Limited on April 01, 2010 when the Company entered into a scheme of arrangement for merger / amalgamation with Descon Chemicals (Private) Limited. Subsequent to a change of management, the Board of Directors was reconstituted on January 05, 2016 and the name of the Company was changed to Nimir Resins Limited with effect from April 18, 2016.
- The Company is a subsidiary of Nimir Management (Private) Limited whereas Nimir Industrial Chemicals Limited is the ultimate parent company of Nimir Resins Limited.
- The shares of the Company are quoted on Pakistan Stock Exchange Limited. The principal activity of the Company is to manufacture coating resins, composite resins (UPR), optical brightener, textile auxiliaries and paper surface sizing agents.
- Corporate office of the Company is located at 14.5 KM, Lahore-Sheikhupura Road, Lahore, while the production plants and warehouse of the Company are located at 14.5 KM , Lahore-Sheikhupura Road, Lahore and warehouse located at 14.8 KM, Sheikhupura Faisalabad Road, Sheikhupura.
- BASIS OF PREPARATION
- These condensed interim financial information have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards applicable in Pakistan comprise of:
- International Financial Reporting Standard (IFRS) issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and
- Provisions of and directives issued under the Companies Act, 2017.
Where provisions of and directives issued under the Companies Act, 2017 differ from the IFRS, the provisions of and directives issued under the Companies Act, 2017 have been followed.
- The condensed interim financial information does not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the financial statements of the Company for the year ended 30 June, 2023.
- This condensed interim financial information is presented in Pak rupees, which is the Company's functional and presentational currency. The financial statements have been prepared under the historical cost convention. Figures have been rounded off to the nearest thousand rupee, unless stated otherwise.
-
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies and methods of computation of this condensed interim financial information are the same as those followed in the preparation of annual financial statements for the preceding financial year ended June 30, 2023. - ACCOUNTING ESTIMATES AND JUDGMENT
The accounting estimates and associated assumptions used in preparation of this condensed interim financial information are consistent with those applied in the preparation of annual financial statement for the year ended June 30, 2023.
5 LONG TERM FINANCING | (Un-audited) | (Audited) | |
Sept. 2023 | June 2023 | ||
Rs."000" | Rs."000" | ||
Long term financing | 36,786 | 158,929 | |
Less: Current portion | (24,286) | (68,929) | |
12,500 | 90,000 |
- The Company had obtained demand finance loan of Rs. 100 million from Bank of Punjab . This loan is repayable in 14 equal quarterly installments starting from September 30, 2020. Markup is charged at the rate of three months KIBOR plus 1.5% p.a payable quarterly in arrears. This facility is secured against charge over fixed assets of the Company.
- The Company had obtained a loan of Rs. 50 million from Bank Alfalah Limited for Solar Energy system of 450KW. This loan is repayable in 20 equal quarterly installments starting from March 31, 2021. Markup is charged at SBP rate plus 2% p.a payable quarterly in arrears. This loan is secured against
Quarterly Report September 2023
9
| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |