Tri-pack Films Ltd.PSX: TRIPF

Transmission of Quarterly Report for the Period Ended 30 September 2024

Oct 21, 2024 at 9:20 AM UTC · Issued by Tri-Pack Films Ltd.

Navigating challenges with agility

Quarterly Report September, 2024

Contents

02 Company Information

03 Directors' Review

04 Condensed Interim Statement Of Financial Position (Un-audited)

05 Condensed Interim Statement Of Profit or Loss and Other Comprehensive Income (Un-audited)

06 Condensed Interim Statement of Changes in Equity (Un-audited)

07 Condensed Interim Statement of Cash Flows (Un-audited)

08 Notes to and Forming Part of the Condensed Interim Financial Information (Un-audited)

16 Directors' Review (Urdu Version)

Company Information

Board of Directors*
Syed Babar Ali	-	Chairman
Mr. Asghar Abbas	-	Non-Executive Director
Syed Hyder Ali	-	Non-Executive Director
Mr. Khurram Raza Bakhtayari	-	Non-Executive Director
Ms. Nermeen Towfiq Chinoy	-	Independent Director
Mr. Asif Qadir	-	Non-Executive Director
Mr. Aamir Hussain Shirazi	-	Independent Director
Mr. Nasir Jamal	-	Deemed Director
Chief Executive Officer
Mr. Nasir Jamal
Audit Committee
Ms. Nermeen Towfiq Chinoy	-	Chairperson
Mr. Khurram Raza Bakhtayari	-	Member
Mr. Asif Qadir	-	Member
Mr. Feroze Polani	-	Secretary

Human Resource and

Remuneration (HR&R) Committee

Ms. Nermeen Towfiq Chinoy	-	Chairperson
Mr. Asghar Abbas	- Member
Mr. Khurram Raza Bakhtayari	-	Member
Mr. Nasir Jamal	-	Member
Mr. Taimoor Ahmed	-	Secretary
Executive Committee
Syed Hyder Ali	-	Chairman
Mr. Asghar Abbas	- Member
Mr. Khurram Raza Bakhtayari	-	Member
Ms. Iqra Sajjad	-	Secretary

Chief Financial Officer

Mr. Muhammad Zuhair Damani

Company Secretary

Ms. Iqra Sajjad

Head of Internal Audit

Mr. Feroze Polani

External Auditors & Advisor

A.F. Ferguson & Co., Chartered Accountants

Legal Advisors

Sattar & Sattar

Shares Registrar

FAMCO Share Registration Services (Pvt.) Ltd.

8-F, Next to Hotel Faran, Nursery, Block 6, P.E.C.H.S., Shahrah-e-Faisal, Karachi - 75400

Tel : (021) 34380101-2 Fax : (021) 34380106

Email: info.shares@famcosrs.com

Tri-Pack Films Limited

Company Shares Department

Ubaid Hussain / Suman Kishore

Tel: 92-2135874047-49 Ext Nos: 237 & 233

Email: shares.desk@tripack.com.pk

Website

www.tripack.com.pk

Registered Office

4th Floor, The Forum, Suite No. 416-422,G-20,

Block No. 9, Clifton, Khayaban-e-Jami,

Karachi - 75600, Pakistan

Tel: (021) 35874047-49, (021) 35831618

Fax: (021) 35860251

Regional Sales & Head Office

House No. 18 B, Sir Abdullah Haroon Road, Near Marriott Hotel, Karachi, Sindh

Tel: (021) 35224336-37 Fax: (021) 35224338

Works - Karachi

Plot No. D-9 to D-14 & G-1 to G-4 North Western Industrial Zone, Port Qasim Authority, Karachi Tel: (021) 34720247-48 Fax: (021) 34720245

Works & Regional Sales Office - Hattar

Plot No. 68, 69, 78/1, Phase IV, Hattar Industrial Estate, Hattar, Khyber Pakhtunkhwa

Tel: (0995) 617406-7 Fax: (0995) 617054

Regional Sales Office - Lahore

Unit No. 4, 17 Aziz Avenue, Canal Bank Road, Lahore, Punjab

Tel: (042) 35716068-70 Fax: (042) 35716071

Banks
Al-Baraka Bank (Pakistan) Limited
Allied Bank Limited
Askari Bank Limited
Bank Alfalah Limited
Bank Al Habib Limited
Bank Islami Pakistan Limited
Dubai Islamic Bank (Pakistan) Limited
Faysal Bank Limited	surname
Habib Bank Limited
Habib Metropolitan Bank Limited

JS Bank Limited
MCB Bank Limited	by
Meezan Bank Limited
order
National Bank of Pakistan

Soneri Bank Limited	alphabetical
Standard Chartered Bank (Pakistan) Limited

The Bank of Punjab
United Bank Limited
Investment Company	* In
Pak Kuwait Investment Company (Private) Limited

Directors' Review

For the Nine Months Ended September 30, 2024

The Directors are pleased to present their review report together with the un-audited condensed interim financial information of the Company for the nine months ended September 30, 2024.

Commitment to and compliance with the Safety, Health and Environment (SHE) policies, procedures and regulations remained of paramount importance throughout.

	Nine Months ended September 30

	2024	2023
Sales Volume (M. Tonnes)	39,504	31,402
Net Sales Value (Rs. Million)	21,833	18,472
Operating profit (Rs. Million)	1,544	2,238
Interest cost (Rs. Million)	1,701	586
Exchange (gain) / loss (Rs. Million)	(4)	117
Profit before tax and levies (Rs. Million)	14	1,499
(Loss) / Profit after tax (Rs. Million)	(291)	830
(Loss) / Earnings per share (Rs)	(7.49)	21.39

Sales volumes were higher by 26% compared to SPLY, driven by more than 2x rise in exports as we continue our focus on increasing our export footprint after commissioning of new BOPP Line 5. Revenue was higher by 18%, on the back of higher volumes despite depressed domestic and international prices.

Aggregate margins were lower compared to SPLY, primarily due to lower international prices and export margins besides extraordinary margins SPLY due to import restrictions affecting supply and demand.

Consequently, operating profit was lower by 34% compared to SPLY.

Admin, selling costs and Interest costs are higher primarily due to inflationary pressure, higher debt requirement specially towards working capital financing and higher interest rates.

Profit before tax was Rs. 14 million compared to a profit before tax of Rs. 1,499 million in SPLY.

We would like to draw the attention of the revenue authorities and decision makers into the tax anomalies relating to the import and export stage tax & withdrawal of exemptions under section 153.

Net loss after tax of Rs 291 million compared to net profit after tax of Rs 830 million in SPLY.

Future Outlook

Considering the commissioning of more than 3 lines in BOPP and BOPET the financial performance remained as per the expectations, going forward with the reduction in interest rates we may see some benefits in interest cost. Better economic activities would definitely help in improving local volumes and margins.

We express our gratitude to all our stakeholders for their support and trust in these trying times.

Nasir Jamal	October 14, 2024
Chief Executive Officer	Karachi
	03
	Quarterly Report 2024

Condensed Interim Statement of Financial Position

As at September 30, 2024	(Un-audited)	(Audited)

	September 30	December 31

ASSETS	Note

NON CURRENT ASSETS

2024 2023

(Rupees in thousand)

Property, plant and equipment	5
Intangibles
Long term deposits
CURRENT ASSETS
Inventories	6
Trade receivables
Advances and prepayments	7
Other receivables	8
Refunds due from government - sales tax	9
Income tax refundable
Cash and bank balances
TOTAL ASSETS
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Issued, subscribed and paid up share capital
Share premium
General reserve
Unappropriated profit
LIABILITIES
NON CURRENT LIABILITIES
Long term borrowings
Deferred income - government grant
Lease liability
Deferred taxation
Staff retirement benefits
Accumulated compensated absences
CURRENT LIABILITIES
Trade and other payables	10
Unclaimed dividend
Accrued mark-up
Short term borrowings	11
Current portion of lease liability
Current portion of long term borrowings
TOTAL LIABILITIES
CONTINGENCIES AND COMMITMENTS	12

19,133,321

6,075

25,783

19,165,179

5,829,538

4,241,010

494,589

730,591

2,243,071

1,575,664

288,973

15,403,436

34,568,615

388,000

999,107

1,605,000

2,310,268

5,302,375

11,975,088

838,561

37,388

339,604

141,000

46,608

13,378,249

8,633,413

24,870

556,221

5,487,222

2,648

1,183,617

15,887,991

29,266,240

14,828,915

10,386

25,783

14,865,084

4,446,312

2,874,497

319,010

1,095,250

1,905,338

1,205,006

1,559,756

13,405,169

28,270,253

388,000

999,107

1,605,000

2,833,686

5,825,793

8,040,687

373,175

36,044

387,902

127,613

42,112

9,007,533

7,069,066

23,435

418,262

4,985,856

3,677

936,631

13,436,927

22,444,460

TOTAL EQUITY AND LIABILITIES

34,568,615 28,270,253

The annexed notes 1 to 23 form an integral part of these condensed interim financial statements.

Nasir Jamal	Asif Qadir	Muhammad Zuhair Damani
Chief Executive Officer	Director	Chief Financial Officer
04
Tri-Pack Films Limited

Condensed Interim Statement of Profit or Loss and Other Comprehensive Income

For the Nine Months Ended September 30, 2024 - (Un-audited)

	Quarter ended		Nine Months ended
	September 30		September 30
Note	2024	2023		2024	2023
		(Restated)			(Restated)
		(Rupees in thousand)

Revenue from contracts with customers	13	8,249,456
Cost of sales		(7,207,994)

Gross profit		1,041,462

Distribution costs		(236,380)
Administrative expenses		(180,543)

		(416,923)
(Loss) allowance / Reversal on trade receivable		(4,216)

Operating profit		620,323
Other income		90,105

		710,428

Other expenses		17,443
Finance cost - net	14	(950,849)

		(933,406)

(Loss) / Profit before income tax and levies		(222,978)
Levies (minimum and final tax)	15	(208,878)

(Loss) / Profit before income tax		(431,856)
Income tax - net	16	85,068

(Loss) / Profit for the period		(346,788)
Other comprehensive income for the period:
Items that will not be reclassified
subsequently to profit or loss
Remeasurement of staff retirement benefits		-
Total comprehensive income for the period
	(346,788)
(Loss) / Earnings per share - basic and

diluted (Rupees)	17	(8.94)

6,945,667 21,833,444 18,472,309

(6,093,539) (19,064,627) (15,177,186)

852,128 2,768,817 3,295,123

(201,974) (684,035) (610,166)

(180,309) (536,661) (491,430)

(382,283) (1,220,696) (1,101,596)

61,912 (4,544) 44,556

531,757 1,543,577 2,238,083

(40,569) 167,377 87,941

491,188 1,710,954 2,326,024

(16,804) - (123,204)

(245,621) (1,697,208) (703,396)

(262,425) (1,697,208) (826,600)

228,763 13,746 1,499,424

(10,095) (352,685) (19,909)

218,668 (338,939) 1,479,515

(80,483) 48,321 (649,506)

138,185 (290,618) 830,009

-	-	-

138,185	(290,618)	830,009

3.56	(7.49)	21.39

The annexed notes 1 to 23 form an integral part of these condensed interim financial statements.

Nasir Jamal	Asif Qadir	Muhammad Zuhair Damani
Chief Executive Officer	Director	Chief Financial Officer
		05
		Quarterly Report 2024

Condensed Interim Statement of Changes in Equity

For the Nine Months Ended September 30, 2024 - (Un-audited)


Issued,			Reserves

subscribed	Capital			Revenue
and paid up	Share		General	Unappro-	Total	Total
share		priated
capital	Premium		reserve	profit	Reserves

(Rupees in thousand)

Balance as at January 1, 2023

Transactions with owners recorded directly in equity - distribution

Final cash dividend for the

year ended December 31, 2022 @ Rs. 5.00 per share

Total comprehensive income for the nine months ended September 30, 2023

Profit for the nine months ended September 30, 2023
Other comprehensive income for the nine months ended September 30, 2023

Balance as at September 30, 2023

Balance as at January 1, 2024

Transactions with owners recorded directly in equity - distribution

Final cash dividend for the

year ended December 31, 2023 @ Rs. 6.00 per share

Total comprehensive income for the nine months ended September 30, 2024

Loss for the nine months ended September 30, 2024
Other comprehensive income for the nine months ended September 30, 2024

Balance as at September 30, 2024

388,000

999,107

1,605,000

2,068,875

(194,000)

830,009

2,704,884

2,833,686

(232,800)

(290,618)

2,310,268

4,672,982

(194,000)

830,009

5,308,991

5,437,793

(232,800)

(290,618)

4,914,375

5,060,982

(194,000)

830,009

5,696,991

5,825,793

(232,800)

(290,618)

5,302,375

The annexed notes 1 to 23 form an integral part of these condensed interim financial statements.

Nasir Jamal	Asif Qadir	Muhammad Zuhair Damani
Chief Executive Officer	Director	Chief Financial Officer
06
Tri-Pack Films Limited

Condensed Interim Statement of Cash Flows

For the Nine Months Ended September 30, 2024 - (Un-audited)

	Nine Months ended September 30

Note	2024	2023

(Rupees in thousand)

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operations	19	1,235,678
Payment on account of accumulated compensated absences		(8,552)
Decrease in long term deposits		-
Staff retirement benefits paid		(71,090)
Income tax and levies paid		(723,320)
Net cash generated from operating activities		432,716
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment		(4,002,485)
Purchase of intangible assets		-
Profit received on bank balances		20,009
Sale proceeds on disposal of operating fixed assets		312
Net cash used in investing activities		(3,982,164)
CASH FLOWS FROM FINANCING ACTIVITIES
Long term borrowings - net		4,646,051
Short term borrowings - net		915,000
Finance cost paid		(2,532,501)
Dividend paid		(231,365)
Transaction cost paid		-
Bank charges paid		(104,886)
Net cash used in financing activities		2,692,299
Net decrease in cash and cash equivalents
	(857,149)

3,268,158

(11,322)

2,250

(59,623)

(442,072)

2,757,391

(4,474,888)

(4,661)

18,555

3,751

(4,457,243)

841,217

(3,250,500)

(421,444)

(191,739)

(1,500)

(87,608)

(3,111,574)

(4,811,426)

Cash and cash equivalents at the beginning of the period		(2,576,100)	330,681
Cash and cash equivalents at the end of the period
20	(3,433,249)	(4,480,745)

The annexed notes 1 to 23 form an integral part of these condensed interim financial statements.

Nasir Jamal	Asif Qadir	Muhammad Zuhair Damani
Chief Executive Officer	Director	Chief Financial Officer
		07
		Quarterly Report 2024

Notes to and Forming Part of the Condensed Interim Financial Statements

For the Nine Months Ended September 30, 2024 - (Un-audited)

1. THE COMPANY AND ITS OPERATIONS

Tri-PackFilms Limited (the Company) was incorporated in Pakistan as a public limited company on April 29, 1993 under the repealed Companies Ordinance, 1984 (now Companies Act, 2017) and is listed on the Pakistan Stock Exchange. It is principally engaged in the manufacturing and sale of Biaxially Oriented Polypropylene (BOPP) film and Cast Polypropylene (CPP) film. The registered office of the Company is situated at 4th floor, the Forum, Suite No. 416 to 422, G-20,Block-9,Khayaban-e-Jami, Clifton, Karachi.
Packages Limited is the parent company, holding 69.3% shares of the Company.
The Company's new BOPP line project is operational and production of BOPP films thereon has commenced from 03 July 2024. After successful commissioning, the total annual operational capacity of the Company will stand enhanced to 138,800 metric tons from the previous annual capacity of 83,800 metric tons.

2. BASIS OF PREPARATION

2.1 Statement of compliance

These condensed interim financial statements of the Company have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;
Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan, as notified under the Companies Act, 2017; and
Provisions of and directives issued under the Companies Act, 2017.

Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

These condensed interim financial statements do not include all the information required to be contained in the annual financial statements and, therefore, should be read in conjunction with the annual audited financial statements of the Company for the year ended December 31, 2023.

2.2 Changes in accounting standards, interpretations and amendments

Standards and amendments to approved accounting and reporting standards that are effective
There are certain amendments and interpretations to the accounting and reporting standards which are mandatory for the Company's annual accounting period which began on January 1, 2024. However, these do not have any significant impact on the Company's financial reporting.

Tri-Pack Films Limited

1. Standards and amendments to approved accounting and reporting standards that are not yet effective
  There are certain amendments and interpretations to the accounting and reporting standards that will be mandatory for the Company's annual accounting periods beginning on or after January 1, 2025. However, these will not have any impact on the Company's financial reporting and, therefore, have not been disclosed in these condensed interim financial statements.
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of these condensed interim financial statements in conformity with approved accounting standards requires management to make estimates, assumptions and use judgements that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgements are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the period of revision.
Judgements and estimates made by the management in the preparation of these condensed interim financial statements are the same as those that were applied to annual audited financial statements for the year ended December 31, 2023.
The Company's financial risk management objectives and policies are consistent with those disclosed in the annual audited financial statements for the year ended December 31, 2023.
ACCOUNTING POLICIES
The accounting policies and the methods of computation adopted in the preparation of these condensed interim financial statements are the same as those applied in the preparation of the annual audited financial statements for the year ended December 31, 2023 except for the following:
During the year the Institute of Chartered Accountant of Pakistan (ICAP) have withdrawn the Technical Release 27 "IAS 12, Income Taxes (Revised 2012)" and issued guidance - "IAS 12 Application Guidance on Accounting for Minimum Taxes and Final Taxes". The said guidance requires certain amounts of tax paid under minimum and final tax regime to be shown separately as a levy instead of showing it in current tax.
Accordingly, the impact has been incorporated in these financial statements retrospectively in accordance with the requirement of International Accounting Standard (IAS 8) - 'Accounting Policies, Change in Accounting Estimates and Errors'. There has been no effect on the condensed interim statement of financial position, the condensed interim statement of cash flows and earning per share as a result of this change.
Effect on condensed interim statement of profit or loss and other comprehensive income

				After
	Had there		Impact of	incorporating
	been no change		change in	effects
	in accounting		accounting	of change
	policy		policy	in accounting
				policy

		(Rupees in thousand)
For nine months ended September 30, 2024
Levies	-	(352,685)	(352,685)
Profit before income tax	13,746	(352,685)	(338,939)
Income tax - net	(304,364)	352,685	48,321
For Nine Months Ended September 30, 2023
Levies	-	(19,909)	(19,909)
Profit before income tax	1,499,424	(19,909)	1,479,515
Income tax - net	(669,415)	19,909	(649,506)

Quarterly Report 2024

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