Half Yearly Accounts
For Six Months Ended December 31, 2024
COMPANY INFORMATION
Board of Directors | |
Mr. Mustapha A. Chinoy | Chairman |
Mr. Shoaib Javed Hussain | |
Ms. Spenta Kandawalla | |
Mr. Akbar Ali Pesnani | |
Mr. Ali H. Shirazi | |
Mr. Arshad Mohsin Tayebaly | |
Mr. Mazhar Valjee | |
Mr. Kamal A. Chinoy | |
Mr. Fahd Kamal Chinoy | Chief Executive Officer |
Chief Financial Officer | |
Mr. Waqas Mahmood | |
Company Secretary | |
Ms. Natasha Mohammad | |
Auditors | |
A. F. Fergusons & Co. | |
Chartered Accountants |
Legal Advisor
ASPIRELaw Advocates and Corporate Counsel
Tax Advisors
A.F. Fergusons & Co.
Muhammad Bilal & Co.
A.Qadir & Co.
Bankers / Financial Institutions
Standard Chartered Bank (Pakistan) Limited
Bank Al-Habib Limited
Habib Bank Limited
Meezan Bank Limited
MCB Islamic Bank Limited
MCB Bank Limited
Industrial and Commercial Bank of China Limited
Soneri Bank Limited
BankIslami Pakistan Limited
Habib Metropolitan Bank Limited
National Bank of Pakistan
JS Bank Limited
Bank Al Falah Limited
Faysal Bank Limited
Askari Bank Limited
Allied Bank Limited
The Bank of Punjab
United Bank Limited
Pak Kuwait Investment Company Limited
Share Registrar
CDC Share Registrar Services Limited
CDC House, Main Shahrah-e-Faisal, Karachi. Tel: 021 111-111-500
Email: info@cdcsrsl.com
Registered Office
B-21, Pakistan Cables Road,
Sindh Industrial Trading Estates,
Karachi -75700
P.O Box 5050,
Tel: +92 -21-32561170-75
Fax: +92-21-32564614
Email: info@pakistancables.com
Website: www.pakistancables.com
DIRECTORS' REVIEW
Sales for the half year period ended December 31, 2024 were Rs. 15.7 billion, 22% higher than sales for the same period of last year. Gross profit for the half year was recorded at Rs. 1,653 million compared to Rs. 1,790 million in the same period of last year.
As a result, your Company ended the half year with a loss after tax of Rs. 187 million compared to profit after tax of Rs. 218 million in the same period of last year.
The economy of the country has started to show signs of stability with significant reduction in inflation and policy rates, stable exchange rate, improving foreign exchange reserves and positive momentum witnessed on the stock market. The year 2025 will, however, be crucial for the country, as the economy will depend on combination of various factors, including hinging on IMF program, tax reforms, political stability and Pakistan's relationship with the IMF and the new US Government. We anticipate that market conditions should start to respond positively to further rate cuts and an improved overall economic outlook but that the recovery may be slow. In addition, the Company has now consolidated most of its operations at its new manufacturing facility in Nooriabad which will allow for various efficiencies and for the Company to be well positioned when demand rebounds.
We are pleased to inform the shareholders that during the current half year, your Company won the 39th Corporate Excellence Award in its category organized by Management Association of Pakistan (MAP) for the 4th consecutive year and also won the Icon Award at the 18th Consumers' Choice Award for 5th time in a row, which is a testament of its commitment to excellence and pioneering business practices.
The Directors would like to place on record their sincere appreciation for the hard work and dedication shown by the Management and employees of the Company during the quarter. On behalf of the Board of Directors and employees of the Company, we express our gratitude and appreciation to all our valued customers, distributors, dealers, bankers, vendors, employees and all other stakeholders for the trust and confidence reposed in the Company.
On behalf of the Board of Directors
MUSTAPHA A. CHINOY
Chairman
Karachi: January 31, 2025
INDEPENDENT AUDITOR'S REVIEW REPORT
To the members of Pakistan Cables Limited
Report on review of Interim Financial Statements
Introduction
We have reviewed the accompanying condensed interim statement of financial position of Pakistan Cables 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 interim 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 quarters ended December 31, 2024, and December 31, 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 are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.
The engagement partner on the audit resulting in this independent auditor's report is Syed Muhammad Hasnain.
Date: February 14, 2025
UDIN: RR202410073s8fR42JbF
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31, 2024
(Unaudited) | (Audited) | |||
Note | December 31, | June 30, | ||
2024 | 2024 | |||
ASSETS | (Rupees in '000) | |||
Non-current assets | ||||
Property, plant and equipment | 4 | 15,136,452 | 16,631,645 | |
Right-of-use assets | 85,952 | 97,698 | ||
Intangible assets | 26,260 | 17,716 | ||
Investment in associate | 5 | 48,450 | - | |
Long-term loans receivable | 9,248 | 11,751 | ||
Long-term deposits | 18,503 | 7,718 | ||
15,324,865 | 16,766,528 |
Current assets | ||
Stores and spares | 83,288 | |
Stock-in-trade | 6 | 4,992,099 |
Trade debts | 7 | 8,831,022 |
Short-term loans and advances | 8 | 114,050 |
Short-term deposits and prepayments | 9 | 69,661 |
Short-term investment | 112,965 | |
Other receivables | 10 | 1,003,118 |
Taxation - payments less provisions | 891,604 | |
Cash and bank balances | 11 | 204,429 |
16,302,236 | ||
Assets classified as held for sale | 12 | 3,361,945 |
19,664,181 |
81,616
5,100,736
6,370,762
47,019
40,369
124,002
908,221
575,912
236,057
13,484,694
1,419,385
14,904,079
Total assets | |
EQUITY AND LIABILITIES | |
Share capital and reserves | |
Authorised share capital | |
100,000,000 (June 30, 2024: 100,000,000) ordinary shares of Rs. 10 each | |
Issued, subscribed and paid-up capital | |
Capital reserves | |
Share premium reserve | |
Revaluation surplus on property (land and building) - net of tax | |
Revenue reserves | |
General reserve | |
(Accumulated loss) / un-appropriated profit | |
Total shareholders' equity | |
Non-current liabilities | |
Long-term financing - secured | 13 |
Deferred income - Government grant | |
Lease liabilities | |
Staff retirement benefits | |
Staff compensated absences | |
Deferred taxation | 14 |
Current liabilities | |
Current portion of long-term financing | 13 |
Current portion of lease liabilities | |
Trade and other payables | 15 |
Short-term borrowings - secured | 16 |
Contract liabilities | 17 |
Advance against assets classified as held for sale | 12 |
Unclaimed dividend | |
Accrued mark-up | |
Total liabilities | |
Contingencies and commitments | 18 |
Total equity and liabilities |
34,989,046
1,000,000
544,574
1,595,139
4,293,446
2,943,000
(194,467)
9,181,692
7,739,443
449,888
69,279
58,666
1,796
81,626
8,400,698
235,365
17,464
5,261,092
9,616,072
620,098
1,243,463
33,220
379,882
17,406,656
25,807,354
34,989,046
31,670,607
1,000,000
495,067
1,595,139
4,597,117
2,618,000
374,778
9,680,101
6,924,567
488,042
84,636
54,509
4,892
194,057
7,750,703
195,817
14,717
4,287,551
7,888,660
771,558
547,449
33,206
500,845
14,239,803
21,990,506
31,670,607
The annexed notes from 1 to 31 form an integral part of these condensed interim financial statements.
(0)
-
Chief Executive Officer | Director | Chief Financial Officer |
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UNAUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2024
Six months period ended | Three months period ended | ||||
December 31, | December 31, | December 31, | December 31, | ||
Note | 2024 | 2023 | 2024 | 2023 | |
(Restated) | (Restated) | ||||
----------------------------------- | (Rupees in '000) ---------------------------------- |
Revenue from contracts with customers | 19 | 15,713,763 |
Cost of sales | (14,060,514) | |
Gross profit | 1,653,249 | |
Marketing, selling and distribution expenses | 20 | (555,417) |
Administrative expenses | 21 | (187,616) |
Impairment reversal / (loss) on trade debts | 7.2 | 13,508 |
(729,525) | ||
Finance cost | 22 | (1,258,904) |
Other expenses | 23 | (11,741) |
(1,270,645) | ||
Other income | 24 | 135,110 |
Reversal of profit from associate under | ||
the equity basis of accounting | - |
12,889,509
(11,099,631)
1,789,878
(498,544)
(169,128)
(16,515)
(684,187)
(824,840)
(41,611)
(866,451)
46,709
-
8,194,226
(7,328,721)
865,505
(311,562)
(105,417)
11,908
(405,071)
(570,285)
(11,411)
(581,696)
72,418
-
6,911,919
(5,964,055)
947,864
(290,243)
(80,967)
(10,197)
(381,407)
(454,777)
(25,427)
(480,204)
13,156
(8,520)
(Loss) / profit before levies and income tax | (211,811) | 285,949 | (48,844) | 90,889 | |||||
Levies - final tax | (12,335) | (9,036) | (5,335) | (5,003) | |||||
(Loss) / profit before income tax | (224,146) | 276,913 | (54,179) | 85,886 | |||||
Income tax credit / (expense) | 25 | 37,487 | (58,942) | (1,542) | (4,240) | ||||
(Loss) / profit after tax for the period | (186,659) | 217,971 | (55,721) | 81,646 | |||||
--------------------------------------- | (Rupees) | --------------------------------------- | |||||||
(Loss) / earnings per share - basic and diluted | 26 | (3.43) | 4.00 | (1.02) | 1.50 | ||||
The annexed notes from 1 to 31 form an integral part of these condensed interim financial statements.
Chief Executive Officer | Director | Chief Financial Officer |
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE SIX MONTHS ENDED DECEMBER 31, 2024
(Loss) / profit after tax for the period
Other comprehensive (loss) / income:
Items that will not be subsequently reclassified to statement of profit or loss
Six months period ended | Three months period ended | ||
December 31, | December 31, | December 31, | December 31, |
2024 | 2023 | 2024 | 2023 |
(Rupees in '000) | (Rupees in '000) | ||
(186,659) | 217,971 | (55,721) | 81,646 |
Net (loss) / gain on equity instruments designated at fair value through other comprehensive income
Share of other comprehensive loss from the investments
Deficit on transfer of land and building from property, plant and equipment to assets held for sale
Related deferred tax for the period
Deficit on revaluation of land carried out during the period
Share of surplus on revaluation of land and building of the associated company
Related deferred tax for the period
Total comprehensive (loss) / income - transferred to statement of changes in equity
(11,037)
-
(11,037)
(388,224)
87,511
(300,713)
-
-
-
-
(300,713)
(311,750)
(498,409)
41,203
-
41,203
-
-
-
(136,415)
-
4,312
4,312
(132,103)
(90,900)
127,071
26,073
-
26,073
-
-
-
-
-
-
-
-
26,073
(29,648)
41,203
(356)
40,847
-
-
-
-
1,467
4,092
5,559
5,559
46,406
128,052
The annexed notes from 1 to 31 form an integral part of these condensed interim financial statements.
Chief Executive Officer | Director | Chief Financial Officer |
CONDENSED INTERIM STATEMENT OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2024
Six months period ended | ||||
Note | December 31, | December 31, | ||
2024 | 2023 | |||
(Rupees in '000) | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Cash used in operations | 27 | (496,020) | (230,188) | |
Gratuity paid | (1,104) | (5,266) | ||
Finance costs paid | (1,300,639) | (642,807) | ||
Income tax and levies paid - net | (315,468) | (302,324) | ||
Long-term loans receivable | 2,503 | 2,024 | ||
Long-term deposits | (10,785) | 52 | ||
Net cash used in operating activities | (2,121,513) | (1,178,509) |
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure including intangible assets Proceeds from disposal of fixed assets Proceeds from assets classified as held for sale Dividend received
Investment in associated company Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
(1,059,689)
9,779
696,014
2,218
(48,450)
(400,128)
(1,606,928)
1,604
-
1,267
-
(1,604,057)
Long-term loans obtained | 1,358,686 | |
Repayment of long term-loans | (573,898) | |
Lease rentals paid | (22,201) | |
Short-term borrowings - secured | 4,344,351 | |
Dividend unclaimed / (paid) | 14 | |
Net cash generated from financing activities | 5,106,952 | |
Net increase / (decrease) in cash and cash equivalents | 2,585,311 | |
Cash and cash equivalents at beginning of the period | (2,397,603) | |
Cash and cash equivalents at end of the period | 28 | 187,708 |
825,246
(95,300)
(20,519)
1,560,000
(109)
2,269,318
(513,248)
(969,222)
(1,482,470) ,
The annexed notes from 1 to 31 form an integral part of these condensed interim financial statements.
Chief Executive Officer | Director | Chief Financial Officer |
187,708
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2024
Share Capital | Capital reserves | Revenue reserves | Total | ||||||
Issued, | Share | Surplus on | General | Un- | |||||
subscribed | premium | revaluation | reserve | appropriated | |||||
and paid-up | reserve | of assets - | profit / | ||||||
capital | net of tax | (accumulated loss) | |||||||
------------------------------------------------- | (Rupees in'000)---------------------------------------------- | ||||||||
Balance as at July 01, 2023 | 495,067 | 1,595,139 | 4,785,350 | 1,975,000 | 643,510 | 9,494,066 | |||
Total comprehensive income for the | |||||||||
period from July 2023 to December 2023 |
- Profit after tax
- Other comprehensive loss - net of tax
Transfer from surplus on revaluation of building - net of deferred tax
Transfer to general reserve for the year ended June 30, 2023
Balance as at December 31, 2023
Balance as at July 01, 2024
- | - | ||
- | - | ||
- | - | ||
- | - | ||
- | - | ||
495,067 | 1,595,139 | ||
495,067 | 1,595,139 |
- | - | 217,971 | 217,971 | |||||
(132,103) | - | 41,203 | (90,900) | |||||
(132,103) | - | 259,174 | 127,071 | |||||
(8,792) | - | 8,792 | - | |||||
- | 643,000 | (643,000) | - | |||||
4,644,455 | 2,618,000 | 268,476 | 9,621,137 | |||||
4,597,117 | 2,618,000 | 374,778 | 9,680,101 |
Total comprehensive loss for the period from July 2024 to December 2024
- Loss after tax
- Other comprehensive loss - net of tax
Transfer from surplus on revaluation of building - net of deferred tax
10% bonus shares issued - for the year ended June 30, 2024
Transfer to general reserve for the year ended June 30, 2024
Balance as at December 31, 2024
- | - | |||
- | - | |||
- | - | |||
- | - | |||
49,507 | - | |||
- | - | |||
544,574 | 1,595,139 | |||
- | - | (186,659) | ||||||
(300,713) | - | (11,037) | ||||||
(300,713) | - | (197,696) | ||||||
(2,958) | - | 2,958 | ||||||
- | - | (49,507) | ||||||
- | 325,000 | (325,000) | ||||||
4,293,446 | 2,943,000 | (194,467) | ||||||
(186,659)
(311,750)
(498,409)
-
-
-
9,181,692
The annexed notes from 1 to 31 form an integral part of these condensed interim financial statements.
Chief Executive Officer | Director | Chief Financial Officer |
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