CONTENTS
Company information | 02 |
Directors' report | 03 |
Auditors' report to the members on review of interim financial information | 05 |
Condensed interim statement of financial position | 06 |
Condensed interim statement of profit or loss (unaudited) | 07 |
Condensed interim statement of comprehensive income (unaudited) | 08 |
Condensed interim statement of changes in equity | 09 |
Condensed interim statement of cash flows (unaudited) | 10 |
Notes to the condensed interim financial information | 11 |
Attention shareholders | 23 |
HALF YEARLY REPORT
COMPANY INFORMATION | |||
BOARD OF DIRECTORS | |||
Chairman | |||
Mr. Mohammad Aftab Manzoor | - | Non-executive | |
Directors | |||
Mr. Jamal Nasim | - | Non-executive | |
Mr. Hamid Bazargan | - | Non-executive | |
Ms. Figen Caliskan | - | Non-executive | |
Hafiz Mohammad Yousaf | - | Non-executive | |
Mr. Shafqaat Ahmed | - | Non-executive | |
Mr. Munir Ahmed | - | Non-executive - Independent | |
Mr. Arshad Mehmood Bhatti | - | Non-executive | |
Chief Executive Officer | |||
Mr. Imran Qureshi | - | Executive | |
BOARD AUDIT COMMITTEE | |||
Mr. Munir Ahmed | - | Chairman | |
Mr. Jamal Nasim | - | Member | |
Mr. Hamid Bazargan | - | Member | |
Hafiz Mohammad Yousaf | - | Member | |
Mr. Shafqaat Ahmed | - | Member | |
Mr. Yasir Ali Quraishi | - | Secretary | |
BOARD HUMAN RESOURCE AND REMUNERATION COMMITTEE | |||
Mr. Mohammad Aftab Manzoor | - | Member | |
Mr. Jamal Nasim | - | Member | |
Mr. Munir Ahmed | - | Member | |
Mr. Yasir Ali Quraishi | - | Secretary | |
CHIEF FINANCIAL OFFICER | - | Mr. Wasif Sajjad | |
COMPANY SECRETARY | - | Mr. Yasir Ali Quraishi | |
& LEGAL COUNSEL | |||
BANKERS | |||
Bank Al Habib Limited | |||
National Bank of Pakistan | |||
Meezan Bank Limited | |||
Habib Metropolitan Bank Limited | |||
Bank Alfalah Limited | |||
Khushhali Microfinance Bank Limited | |||
MIB Bank Limited | |||
AUDITORS | TAX CONSULTANTS | ||
A. F. Ferguson & Co. | A. F. Ferguson & Co. | ||
Chartered Accountants | Chartered Accountants | ||
LEGAL ADVISORS | |||
Mohsin Tayebaly & Co. | |||
Advocates & Legal Consultants | |||
REGISTERED OFFICE | SHARE REGISTRAR | ||
Jinnah Avenue, Malir Halt, | FAMCO Share Registration Services (Pvt.) Limited | ||
Karachi - 75100 | 8-F, Near Hotel Faran, Nursery, | ||
Tel | : (+9221) 99248285 | Block-6, P.E.C.H.S, Shahra-e-Faisal, Karachi. | |
E-mail : comsec@security-papers.com | Tel: (+9221) 34380101-5 and Fax: (+9221) 34380106 | ||
E-mail: info.shares@famcosrs.com | |||
FACTORY | WEB SITE | ||
Jinnah Avenue, Malir Halt, | http://www.security-papers.com | ||
Karachi - 75100 | |||
Tel | : (+9221) 99248536-37 | ||
Fax | : (+9221) 99248616 | ||
HALF YEARLY REPORT | 02 |
DIRECTORS' REPORT
The Directors are pleased to present the un-audited financial information for six months period ended December 31, 2024.
BUSINESS AND PERFORMANCE REVIEW
The Company delivered robust performance in the current period compared to same period last year owing to a number of initiatives taken by the Company in both commercial and operational areas that have positively impacted the business operations and profitability.
Net Sales at Rs. 4,168 million was 20% higher compared to Rs. 3,487 million same period last year owing to the efficient commercial mechanism in place with the key customer. The sale volume stood at 2,087 tons (2,090 tons same period last year) and production volume was 2,062 tons (2,078 tons same period last year).
Despite significant increase in the energy costs, the Company reported gross profit of Rs. 1,167 million as against Rs. 976 million in the corresponding period of preceding year recording an increase of 20% (Rs. 191 million) which was achieved owing to commercial reasons. Other income was reported at Rs. 508 million as compared to Rs. 524 million same period last year demonstrating consistent efforts to reap benefits of timely and effective investment decisions while the monetary policy rates in the period under review have significantly reduced from 22% p.a. in June 2024 to 13% p.a. in December 2024.
The profit before taxation during the period under review stood at Rs. 1,328 million against Rs. 1,181 million during the same period last year which is 12% higher emanating from all efforts and initiatives detailed above. Profit after taxation stood at Rs. 802 million was 8% higher than Rs. 746 million in the same period last year, enabling a consistent growth in the earnings per share to Rs. 13.54 compared to Rs. 12.59 in the same period last year.
The Securities and Exchange Commission of Pakistan (SECP) vide its Order dated January 26, 2024 ("SECP Order") had determined the Company as Public Sector Company (PSC). The Company contested this adjudication and had challenged the determination in Appeal No. 14 of 2024, before the appellate bench of SECP and the matter is currently subjudice. Please refer to Note No. 1.2 of the financial statements for the period ended 31 December 2024.
HALF YEARLY REPORT | 03 |
DIRECTORS' REPORT
FUTURE PROSPECTS
In pursuance to the announcement by the State Bank of Pakistan of its plans to introduce new banknote series with enhanced security features in line with international trends, your Company is determined to support this project of national importance while optimizing the opportunity to excel in the security paper manufacturing. In this regard, the Company floated an international tender inviting established and renowned security paper plant and equipment manufacturers and technologies' specialists to come forward with their proposals and bids. Based on a thorough assessment and in the best interest of the company, the Board of Directors in their meeting dated 22 January 2025, have decided to proceed with project for plant upgrade, which is to be completed in a period up to 18 months. The Board further recommends, that an Extraordinary General Meeting (EOGM) of shareholders of the Company be called upon to share the details of the project and seek concurrence and approval of the shareholders through an appropriate resolution to this effect.
The Company remains fully committed towards managing challenges and delivering sustainable profitable growth capitalizing on our strengths.
The directors of your Company take this opportunity to express their gratitude to all the stakeholders for their encouragement and support.
On behalf of the Board of Directors
Imran Qureshi | Jamal Nasim |
Chief Executive Officer | Director |
Karachi
Dated: January 30, 2025
HALF YEARLY REPORT | 04 |
HALF YEARLY REPORT | 05 |
Condensed Interim Statement of Financial Position
As at December 31, 2024
December 31, | June 30, | |||||||
2024 | 2024 | |||||||
(Unaudited) | Audited | |||||||
ASSETS | Note | ------ (Rupees in '000) ------ | ||||||
Non-current assets | ||||||||
Property, plant and equipment | 5 | 1,952,202 | 1,828,287 | |||||
Intangible assets | 15,211 | 11,991 | ||||||
Long-term investments | 6 | 2,187,881 | 3,294,550 | |||||
Staff retirement benefits | - | 90 | ||||||
Current assets | 4,155,294 | 5,134,918 | ||||||
Stores, spares and loose tools | 348,540 | 299,871 | ||||||
Stock-in-trade | 886,736 | 880,786 | ||||||
Trade debts - considered good | 1,051,871 | 1,320,036 | ||||||
Loans, advances, deposits, prepayments and other receivables | 52,381 | 137,130 | ||||||
Interest accrued | 123,912 | 128,523 | ||||||
Short-term investments | 7 | 3,695,653 | 2,163,380 | |||||
Cash and bank balances | 257,419 | 476,936 | ||||||
TOTAL ASSETS | 6,416,512 | 5,406,662 | ||||||
10,571,806 | 10,541,580 | |||||||
EQUITY AND LIABILITIES | ||||||||
Share capital and reserves | ||||||||
Authorised share capital | ||||||||
70,000,000 (June 30, 2024: 70,000,000) | ||||||||
ordinary shares of Rs. 10 each | 700,000 | 700,000 | ||||||
Issued, subscribed and paid-up capital 59,255,985 | ||||||||
ordinary shares of Rs.10 each | 592,559 | 592,559 | ||||||
Revenue reserves | ||||||||
General reserves | 7,035,181 | 6,246,411 | ||||||
Unappropriated profits | 802,122 | 1,381,328 | ||||||
Total shareholders' equity | 7,837,303 | 7,627,739 | ||||||
8,429,862 | 8,220,298 | |||||||
Non-current liabilities | ||||||||
Staff retirement benefits | 3,373 | - | ||||||
Deferred taxation - net | 309,098 | 289,172 | ||||||
Current liabilities | 312,471 | 289,172 | ||||||
Trade and other payables | ||||||||
1,035,839 | 1,320,570 | |||||||
Accrued mark-up | - | 486 | ||||||
Unclaimed dividend | 4,809 | 4,762 | ||||||
Unpaid dividend | 589,180 | 546,408 | ||||||
Taxation - net | 199,645 | 159,884 | ||||||
1,829,473 | 2,032,110 | |||||||
Total liabilities | 2,141,944 | 2,321,282 | ||||||
TOTAL EQUITY AND LIABILITIES | ||||||||
10,571,806 | 10,541,580 | |||||||
Contingencies and commitments | 8 | |||||||
The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.
IMRAN QURESHI | JAMAL NASIM | |
Chief Executive Officer | Chief Financial Officer | Director |
HALF YEARLY REPORT | 06 |
Condensed Interim Statement of Profit or Loss (Unaudited)
For the six months ended December 31, 2024
Six Months Ended | Three Months Ended | ||||
December 31, | December 31, | December 31, | December 31, | ||
2024 | 2023 | 2024 | 2023 | ||
Note ------------------------- | (Rupees in '000) ------------------------- |
Sales - net9
Cost of sales
Gross profit
Administrative expenses
Other income
Other expenses
Finance costs
Profit before taxation
Taxation
- Current
- Prior
- Deferred
Profit after taxation
4,168,245
(3,001,136)
1,167,109
(245,033)
508,463
(101,323)
(1,151)
1,328,065
(509,355)
3,334
(19,922)
(525,943)
802,122
3,486,819
(2,510,509)
976,310
(227,716)
523,993
(87,768)
(3,331)
1,181,488
(387,479)
49,111
(97,006)
(435,374)
746,114
2,109,108
(1,518,557)
590,551
(121,318)
262,979
(50,917)
(679)
680,616
(249,373)
3,334
(18,642)
(264,681)
415,935
1,758,260
(1,265,946)
492,314
(127,009)
263,461
(42,025)
(882)
585,859
(196,356)
49,111
(57,690)
(204,935)
380,924
------------------------------------- | Rupees | ------------------------------------- | ||||||
Earnings per share - | ||||||||
basic and diluted | 13.54 | 12.59 | 7.02 | 6.43 | ||||
The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.
IMRAN QURESHI | JAMAL NASIM | |
Chief Executive Officer | Chief Financial Officer | Director |
HALF YEARLY REPORT | 07 |
Condensed Interim Statement of
Comprehensive Income (Unaudited)
For the six months ended December 31, 2024
Six Months Ended | Three Months Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||||
------------------------- | (Rupees in '000) ------------------------- | |||||||||
Profit for the period | 802,122 | 746,114 | 415,935 | 380,924 | ||||||
Other comprehensive income | - | - | - | - | ||||||
Total comprehensive income | ||||||||||
for the period | ||||||||||
802,122 | 746,114 | 415,935 | 380,924 | |||||||
The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.
IMRAN QURESHI | JAMAL NASIM | |
Chief Executive Officer | Chief Financial Officer | Director |
HALF YEARLY REPORT | 08 |
Condensed Interim Statement of Changes in Equity
For the six months ended December 31, 2024
Revenue Reserves | |||||
Issued | |||||
subscribed and | General | Unappropriated | Total | Total | |
paid-up share | reserves | Profit | reserves | equity | |
capital | |||||
----------------------------------------- | Rupees in '000 ----------------------------------------- | ||||
Balance as at June 30, 2023 (Audited) | 592,559 | 5,951,267 | 948,176 | 6,899,443 | 7,492,002 |
Total comprehensive income for the period | |||||
Profit after taxation | - | - | 746,114 | 746,114 | 746,114 |
Transactions with owners | |||||
Final cash dividend @ Rs.11 per ordinary | |||||
share for the year ended June 30, 2023 | - | - | (651,816) | (651,816) | (651,816) |
Transfer to general reserves | - | 295,144 | (295,144) | - | - |
Balance as at December 31, 2023 (Un-audited) | 592,559 | 6,246,411 | 747,330 | 6,993,741 | 7,586,300 |
Balance as at June 30, 2024 (Audited) | 592,559 | 6,246,411 | 1,381,328 | 7,627,739 | 8,220,298 |
Total comprehensive income for the period | |||||
Profit after taxation | - | - | 802,122 | 802,122 | 802,122 |
Transactions with owners | |||||
Final cash dividend for the year ended | |||||
June 30, 2024 at the rate of Rs. 10 per share | - | - | (592,558) | (592,558) | (592,558) |
Transfer to general reserves | - | 788,770 | (788,770) | - | - |
Balance as at December 31, 2024 (Unaudited) | 592,559 | 7,035,181 | 802,122 | 7,837,303 | 8,429,862 |
The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.
IMRAN QURESHI | JAMAL NASIM | |
Chief Executive Officer | Chief Financial Officer | Director |
HALF YEARLY REPORT | 09 |
| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |