Interim Financial Report - PEL · Chairman - Executive Mr. M. Murad Saigol Chief Executive - Executive/Certified (DTP) Mr. M. Azam Saigol ... Soneri Bank Limited Standard Chartered

Interim Financial Reportfor the first quarter ended March 31, 2015

Pak Elektron Limited

CONTENTS

Pak Elektron Limited

Corporate InformationDirectors’ Review

0203

STAKEHOLDERS’ INFORMATION

Condensed Interim Consolidated Balance SheetCondensed Interim Consolidated Profit and Loss Account / Statement of Comprehensive IncomeCondensed Interim Consolidated Cash Flow StatementCondensed Interim Consolidated Statement of Changes in EquityCondensed Interim Notes to the Consolidated Financial Information

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION

0608

091011

CONDENSED INTERIM SEPARATE FINANCIAL INFORMATION

Condensed Interim Balance SheetCondensed Interim Profit and Loss Account / Statement of Comprehensive IncomeCondensed Interim Cash Flow StatementCondensed Interim Statement of Changes in EquityCondensed Interim Notes to the Financial Information

1820

212223

Pak Elektron Limited | Interim Financial Report March 31, 2015

Board of Directors

Audit Committee

Mr. M. Naseem Saigol

Chairman - Executive

Mr. M. Murad Saigol

Chief Executive - Executive/Certified (DTP)

Mr. M. Azam Saigol

Director - Non Executive

Mr. Muhammad Zeid Yousuf Saigol

Director - Executive/Certified (DTP)

Mr. Haroon Ahmad Khan


Syed Manzar Hassan

Director - Executive

Syed Zubair Ahmad Shah

Director - NIT Nominee/Independent

Mr. Wajahat A. Baqai

Director - NBP Nominee U/S 182 of the Ordinance/Non Executive

Mr. Akbar Hassan Khan


Mr. Usman Shahid


Mr. Khalid Siddiq Tirmizey

Director - BOP Nominee U/S 182 of the Ordinance/Non Executive

Mr. Munaf IbrahimDirector - Independent

Mr. M. Azam Saigol

Chairman/Member


Member


Member

Mr. Haroon Ahmad KhanMember

Company Secretary

Chief Financial Officer

Muhammad Omer Farooq

Syed Manzar Hassan, FCA

HR & Remuneration Committee

Mr. M. Azam Saigol

Chairman/Member


Member


Member

Syed Manzar HassanMember

Auditors

Legal Advisor

Share Registrar

Bankers

M/s Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants

M/s Hassan & Hassan Advocates

Corplink (Private) Limited

Wings Arcade, 1-K Commercial Model Town, Lahore.

Tel: 042-35839182, 35887262

Fax: 042-35869037

Albaraka Islamic Bank

Askari Bank Limited

Bank Alfalah Limited

Bank of Khyber

Bank of Punjab

Burj Bank Limited

Faysal Bank Limited

KASB Bank Limited

MCB Bank Limited

National Bank of Pakistan

NIB Bank Limited

Pak Brunei Investment Company Limited

Pak Libya Holding Company (Private) Limited

Silk Bank Limited

Soneri Bank Limited

Standard Chartered Bank

Summit Bank Limited

CORPORATE INFORMATION DIRECTORS’ REVIEW

Registered Office

17-Aziz Avenue, Canal Bank, Gulberg V, Lahore.

Tel: 042-35718274-6

Fax: 042-35762707

Email: [email protected]

Works

Transformer Facility

Karachi

Islamabad

China

14-K.M. Ferozepur Road, Lahore.

Tel: 042-35920151-9 (9 Lines)

34-K.M. Ferozepur Road, Keath Village, Lahore.

Tel: 042-35935151-2

Kohinoor Building, 25-West Wharf Road, Karachi.

Tel: 021-32200951-4

Fax: 021-32310303

Room # 301, 3rd Floor, Green Trust Tower, Blue Area, Islamabad.

Tel: 051-2824543, 2828941

Fax: 051-2273858

206, No. 1007, Zhong Shan Naun Er Road, Shanghai, China.

Tel: 86-21-64567713

Fax: 86-21-54109971

Dear Share Holders

Summary of results is as under:

Your Directors are pleased to present the un-audited interim financial statements of the Company for the First quarter ended March 31, 2015. Alhamdulillah, Sales revenue achieved during the period is Rs. 5.869 billion as compared to Rs. 5.054 billion of corresponding quarter of last financial year, representing a growth of 16 %. The gross margins of current quarter are also higher as compared to corresponding quarter of previous year. The net profit after tax and earnings per share also show significant improvement. The improvement in margins is mainly attributable to general reduction in prices of plastics, steel, copper etc. as a result of reduction in oil prices, and further due to improved capacity utilization, operating cost control initiatives, and material cost reduction as a result of R&D initiatives in our main products.

Quarter endedMarch 31, 2015

Rupees in million Quarter endedMarch 31, 2014

Increase /(Decrease)

Sales

Gross Profit

Finance Cost

Profit before tax

Profit after tax

Earnings per share

5,869

1,679

471

766

733

1.81

5,054

1,214

482

297

253

0.61

815

465

(11)

469

480

Performance of the Company in appliances division during the current period showed significant improvement over the corresponding period of last financial year.

Appliances Division's sale has shown a momentous increase in first quarter ended March 31, 2015 against the corresponding quarter. Sales value achieved is higher by 32 % over the corresponding first quarter of last year. This time again, Refrigerators remained the main contributor to the increase in sales revenue. It is been achieved through introduction of new models, research and development, cost control initiatives and effective marketing strategies. Deep freezers sales have also shown improvement.

Refrigerators and Split Air Conditioners sales in first quarter are normally a starter which peaks in the second quarter. Your Company is now geared up for higher sales volumes in the current year and especially in second quarter. The Company is enduring with its focused marketing and distribution efforts to further strengthen its position in the market. Appliances market is looking good and your company is well positioned to make higher supplies to make higher sales and profitability Insha Allah. With the introduction of new models in our refrigerator range demand for PEL refrigerator is showing positive trends. Other appliances products like Deep freezers, Air conditioners, Microwave ovens have also started pouring their share into the Company's sales.

Despite slow ordering from Wapda Distribution companies, Power Division remained successful in maintaining its sales in current quarter at same level of first quarter of last year. Your Company is working on new designs and prototypes for different power division products to rationalize costs without compromising on quality. State of inertia in distribution transformers ordering has started to fade away and new orders have started flowing in from Discos on top of continuous ordering from private customers and our in house EPC department. With reasonable ordering outlook we are optimistic that we would be able to meet our budgeted sales for the power division during the course of the financial year.

Appliances Division

Power Division

02 03


Board of Directors

Audit Committee

Mr. M. Naseem Saigol

Chairman - Executive

Mr. M. Murad Saigol

Chief Executive - Executive/Certified (DTP)

Mr. M. Azam Saigol

Director - Non Executive

Mr. Muhammad Zeid Yousuf Saigol




Syed Manzar Hassan

Director - Executive


Director - NIT Nominee/Independent



Mr. Akbar Hassan Khan


Mr. Usman Shahid


Mr. Khalid Siddiq Tirmizey

Director - BOP Nominee U/S 182 of the Ordinance/Non Executive

Mr. Munaf IbrahimDirector - Independent

Mr. M. Azam Saigol

Chairman/Member


Member


Member

Mr. Haroon Ahmad KhanMember

Company Secretary

Chief Financial Officer

Muhammad Omer Farooq

Syed Manzar Hassan, FCA

HR & Remuneration Committee

Mr. M. Azam Saigol

Chairman/Member


Member


Member

Syed Manzar HassanMember

Auditors

Legal Advisor

Share Registrar

Bankers

M/s Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants

M/s Hassan & Hassan Advocates

Corplink (Private) Limited

Wings Arcade, 1-K Commercial Model Town, Lahore.

Tel: 042-35839182, 35887262

Fax: 042-35869037

Albaraka Islamic Bank

Askari Bank Limited

Bank Alfalah Limited

Bank of Khyber

Bank of Punjab

Burj Bank Limited

Faysal Bank Limited

KASB Bank Limited

MCB Bank Limited

National Bank of Pakistan

NIB Bank Limited

Pak Brunei Investment Company Limited

Pak Libya Holding Company (Private) Limited

Silk Bank Limited

Soneri Bank Limited

Standard Chartered Bank

Summit Bank Limited

CORPORATE INFORMATION DIRECTORS’ REVIEW

Registered Office

17-Aziz Avenue, Canal Bank, Gulberg V, Lahore.

Tel: 042-35718274-6

Fax: 042-35762707

Email: [email protected]

Works

Transformer Facility

Karachi

Islamabad

China

14-K.M. Ferozepur Road, Lahore.

Tel: 042-35920151-9 (9 Lines)

34-K.M. Ferozepur Road, Keath Village, Lahore.

Tel: 042-35935151-2

Kohinoor Building, 25-West Wharf Road, Karachi.

Tel: 021-32200951-4

Fax: 021-32310303

Room # 301, 3rd Floor, Green Trust Tower, Blue Area, Islamabad.

Tel: 051-2824543, 2828941

Fax: 051-2273858

206, No. 1007, Zhong Shan Naun Er Road, Shanghai, China.

Tel: 86-21-64567713

Fax: 86-21-54109971

Dear Share Holders

Summary of results is as under:

Your Directors are pleased to present the un-audited interim financial statements of the Company for the First quarter ended March 31, 2015. Alhamdulillah, Sales revenue achieved during the period is Rs. 5.869 billion as compared to Rs. 5.054 billion of corresponding quarter of last financial year, representing a growth of 16 %. The gross margins of current quarter are also higher as compared to corresponding quarter of previous year. The net profit after tax and earnings per share also show significant improvement. The improvement in margins is mainly attributable to general reduction in prices of plastics, steel, copper etc. as a result of reduction in oil prices, and further due to improved capacity utilization, operating cost control initiatives, and material cost reduction as a result of R&D initiatives in our main products.

Quarter endedMarch 31, 2015

Rupees in million Quarter endedMarch 31, 2014

Increase /(Decrease)

Sales

Gross Profit

Finance Cost

Profit before tax

Profit after tax

Earnings per share

5,869

1,679

471

766

733

1.81

5,054

1,214

482

297

253

0.61

815

465

(11)

469

480

Performance of the Company in appliances division during the current period showed significant improvement over the corresponding period of last financial year.

Appliances Division's sale has shown a momentous increase in first quarter ended March 31, 2015 against the corresponding quarter. Sales value achieved is higher by 32 % over the corresponding first quarter of last year. This time again, Refrigerators remained the main contributor to the increase in sales revenue. It is been achieved through introduction of new models, research and development, cost control initiatives and effective marketing strategies. Deep freezers sales have also shown improvement.

Refrigerators and Split Air Conditioners sales in first quarter are normally a starter which peaks in the second quarter. Your Company is now geared up for higher sales volumes in the current year and especially in second quarter. The Company is enduring with its focused marketing and distribution efforts to further strengthen its position in the market. Appliances market is looking good and your company is well positioned to make higher supplies to make higher sales and profitability Insha Allah. With the introduction of new models in our refrigerator range demand for PEL refrigerator is showing positive trends. Other appliances products like Deep freezers, Air conditioners, Microwave ovens have also started pouring their share into the Company's sales.

Despite slow ordering from Wapda Distribution companies, Power Division remained successful in maintaining its sales in current quarter at same level of first quarter of last year. Your Company is working on new designs and prototypes for different power division products to rationalize costs without compromising on quality. State of inertia in distribution transformers ordering has started to fade away and new orders have started flowing in from Discos on top of continuous ordering from private customers and our in house EPC department. With reasonable ordering outlook we are optimistic that we would be able to meet our budgeted sales for the power division during the course of the financial year.

Appliances Division

Power Division

02 03

DIRECTORS’ REVIEW

CONDENSED INTERIM

CONSOLIDATED FINANCIAL INFORMATION

Future Outlook

Acknowledgement

The sales and profitability outlook seems promising for the current financial year. We hope that your company would be able to achieve its targets for both Power and Appliances divisions and by the grace of Almighty would earn healthy profitability.

We take this opportunity to thank all our customers, shareholders, bankers, employees, CBA and workers for their continued support and guidance.

M. MURAD SAIGOL

Chief Executive Officer

on behalf of the Board of Directors

LahoreApril 24, 2015

04

DIRECTORS’ REVIEW

CONDENSED INTERIM


Future Outlook

Acknowledgement

The sales and profitability outlook seems promising for the current financial year. We hope that your company would be able to achieve its targets for both Power and Appliances divisions and by the grace of Almighty would earn healthy profitability.

We take this opportunity to thank all our customers, shareholders, bankers, employees, CBA and workers for their continued support and guidance.

M. MURAD SAIGOL

Chief Executive Officer

on behalf of the Board of Directors

LahoreApril 24, 2015

04

CONDENSED INTERIM

CONSOLIDATED BALANCE SHEET

AS AT MARCH 31, 2015

M. MURAD SAIGOLChief Executive Officer


HAROON A. KHANDirector

(Un-Audited) (Audited)

March 312015

December 312014Rupees in thousands

Note

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized Capital 3 6,000,000

Issued, subscribed and paid up capital 4 4,431,029

Capital Reserve 1,293,858

Unappropriated profit 6,086,174

11,811,061

SURPLUS ON REVALUATION 4,516,349

NON-CURRENT LIABILITIES

Redeemable Capital 5 4,571,349

Long-term financing 6 2,215,699

Liabilities against assets subject to finance lease 7 98,561

Deferred taxation 2,412,869

Deferred income 44,593

CURRENT LIABILITIES

Trade and other payables 798,950

Interest/ mark-up accrued on loans and payables 576,972

Short-term borrowings 3,809,109

Current Portion of Non Current Liabilities:

Long term loans 1,818,628

Liabilities against assets subject finance lease 70,148

7,073,807

Contingencies and Commitments 8 -

32,744,288

6,000,000

4,431,029

1,293,858

5,301,554

11,026,441

4,568,357

4,826,469

2,442,807

74,715

2,394,344

45,158

881,429

500,528

4,243,261

1,462,760

60,395

7,148,373

-

32,526,664

The annexed notes from 1 to 15 form an integral part of this condensed interim consolidated financial information.

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment 9 14,425,945 14,466,890

Intangible assets 342,805 344,008

14,768,750

14,810,898

Long-term investments 64,467 63,890

Long-term deposits 198,023 192,808

CURRENT ASSETS

Stores, spares and loose tools 448,890 462,140

Stock-in-trade 6,436,584 6,316,868

Trade debts 7,854,620 7,702,272

Advances 1,254,303 1,256,100

Trade deposits and short-term prepayments 904,108 853,209

Other receivables 172,609 187,730

Other financial assets 21,962 21,596

Income tax refundable 299,228 319,067

Cash and bank balances 320,744 340,086

17,713,048 17,459,068

32,744,288 32,526,664

06 07


March 312015


Note

CONDENSED INTERIM

CONSOLIDATED BALANCE SHEET






March 312015


Note



Authorized Capital 3 6,000,000

Issued, subscribed and paid up capital 4 4,431,029

Capital Reserve 1,293,858

Unappropriated profit 6,086,174

11,811,061

SURPLUS ON REVALUATION 4,516,349


Redeemable Capital 5 4,571,349

Long-term financing 6 2,215,699

Liabilities against assets subject to finance lease 7 98,561

Deferred taxation 2,412,869

Deferred income 44,593

CURRENT LIABILITIES

Trade and other payables 798,950

Interest/ mark-up accrued on loans and payables 576,972

Short-term borrowings 3,809,109


Long term loans 1,818,628

Liabilities against assets subject finance lease 70,148

7,073,807

Contingencies and Commitments 8 -

32,744,288

6,000,000

4,431,029

1,293,858

5,301,554

11,026,441

4,568,357

4,826,469

2,442,807

74,715

2,394,344

45,158

881,429

500,528

4,243,261

1,462,760

60,395

7,148,373

-

32,526,664


ASSETS

NON-CURRENT ASSETS

Property, plant and equipment 9 14,425,945 14,466,890

Intangible assets 342,805 344,008

14,768,750

14,810,898



CURRENT ASSETS

Stores, spares and loose tools 448,890 462,140

Stock-in-trade 6,436,584 6,316,868

Trade debts 7,854,620 7,702,272

Advances 1,254,303 1,256,100

Trade deposits and short-term prepayments 904,108 853,209

Other receivables 172,609 187,730

Other financial assets 21,962 21,596

Income tax refundable 299,228 319,067

Cash and bank balances 320,744 340,086

17,713,048 17,459,068

32,744,288 32,526,664

06 07


March 312015


Note

CONDENSED INTERIM

CONSOLIDATED PROFIT AND LOSS ACCOUNT / STATEMENT OF COMPREHENSIVE INCOME

FOR THE QUARTER ENDED MARCH 31, 2015 (Un-Audited)

March 312015

March 312014Rupees in thousands

Note March 312015





CONDENSED INTERIM

CONSOLIDATED CASH FLOW STATEMENT




Gross Sales 10 5,868,729 5,053,989

Sales Tax and discount 10 707,158 715,645

Net Sales 5,161,571 4,338,344

Cost of Sales 11 3,482,491 3,124,498

Gross Profit 1,679,080 1,213,846

Other Operating Income 6,526 6,139

1,685,606 1,219,985

Distribution Cost 254,991 223,330

Administrative Cost 188,526 187,343

Other Operating Expenses 2,800 26,970

Finance Cost 471,148 482,300

Share of loss of associate (2,439) (3,285)

Profit /(Loss) Before Tax 765,702 296,757

Provision for Taxation 33,091 43,383

Profit /(Loss) For the year 732,611 253,374

Earnings per share - Rupees Basic & diluted 12 1.81 0.61


Cash flows from operating activities

Profit before taxation 765,702

Adjustments for non cash and other items 657,444

Cash generated from operations before working capital changes 1,423,146

Working capital changes (332,993)

Cash generated from operations 1,090,153

Finance cost paid (394,704) Compensated absence paid (7,244) Income tax paid (31,777)

(433,725)

Net cash generated/(used) in operating activities 656,428

Cash flows from investing activities

Purchase of property, plant and equipment (120,171) Proceeds from disposal of property, plant and equipment 2,522 Purchase of other financial assets - Increase in long-term deposits (5,215) Net cash used in investing activities (122,864)

Cash flows from financing activities

Increase / (Decrease) in Long Term Financing (126,360) Increase/ (Decrease) in liabilities against finance lease 7,606 Decrease in Short Term Borrowing (434,152)

Net cash (used)/generated from financing activities (552,906)

Net increase/(decrease) in cash and cash equivalents (19,342) Cash and cash equivalents at beginning of the period 340,086

Cash and cash equivalents at end of the period 320,744

296,757

674,899

971,656

(516,666)

454,990

(1,316,052)

(6,199)

(84,105)

(1,406,356)

(951,366)

(62,958)

2,350

(50,219) (2,348)

(113,175)

2,904,318 (7,244)

(1,856,549)

1,040,525

(24,016) 277,804

253,788


08 09

CONDENSED INTERIM

CONSOLIDATED PROFIT AND LOSS ACCOUNT / STATEMENT OF COMPREHENSIVE INCOME


March 312015


Note March 312015





CONDENSED INTERIM

CONSOLIDATED CASH FLOW STATEMENT




Gross Sales 10 5,868,729 5,053,989

Sales Tax and discount 10 707,158 715,645

Net Sales 5,161,571 4,338,344

Cost of Sales 11 3,482,491 3,124,498

Gross Profit 1,679,080 1,213,846

Other Operating Income 6,526 6,139

1,685,606 1,219,985

Distribution Cost 254,991 223,330

Administrative Cost 188,526 187,343

Other Operating Expenses 2,800 26,970

Finance Cost 471,148 482,300

Share of loss of associate (2,439) (3,285)

Profit /(Loss) Before Tax 765,702 296,757

Provision for Taxation 33,091 43,383

Profit /(Loss) For the year 732,611 253,374

Earnings per share - Rupees Basic & diluted 12 1.81 0.61



Profit before taxation 765,702

Adjustments for non cash and other items 657,444

Cash generated from operations before working capital changes 1,423,146

Working capital changes (332,993)

Cash generated from operations 1,090,153

Finance cost paid (394,704) Compensated absence paid (7,244) Income tax paid (31,777)

(433,725)

Net cash generated/(used) in operating activities 656,428


Purchase of property, plant and equipment (120,171) Proceeds from disposal of property, plant and equipment 2,522 Purchase of other financial assets - Increase in long-term deposits (5,215) Net cash used in investing activities (122,864)


Increase / (Decrease) in Long Term Financing (126,360) Increase/ (Decrease) in liabilities against finance lease 7,606 Decrease in Short Term Borrowing (434,152)

Net cash (used)/generated from financing activities (552,906)

Net increase/(decrease) in cash and cash equivalents (19,342) Cash and cash equivalents at beginning of the period 340,086

Cash and cash equivalents at end of the period 320,744

296,757

674,899

971,656

(516,666)

454,990

(1,316,052)

(6,199)

(84,105)

(1,406,356)

(951,366)

(62,958)

2,350

(50,219) (2,348)

(113,175)

2,904,318 (7,244)

(1,856,549)

1,040,525

(24,016) 277,804

253,788


08 09

Balance as at December 31, 2013

Total comprehensive income for the period

Incremental depreciation

Balance as at March 31, 2014


Issue of right ordinary shares

Issue of bonus shares



Total comprehensive income for the period.




3,130,689

-

-

3,130,689

-

1,032,229

268,111

-

4,431,029

-

-

4,431,029

Share capital

6,545,470

253,374

53,112

6,851,956

1,988,095

2,064,458

-

121,932

11,026,441

732,611

52,009

11,811,061

TotalRupees in thousands

529,740

-

-

529,740

-

1,032,229

(268,111)

-

1,293,858

-

-

1,293,858

Premium on

issue of shares

Capital reserves

2,885,041

253,374

53,112

3,191,527

1,988,095

-

121,932

5,301,554

732,611

52,009

6,086,174

Revenue reserves

Unappropriated profit

CONDENSED INTERIM

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY





NOTES TO THE CONDENSED INTERIM



1 LEGAL STATUS AND OPERATIONS

2. BASIS OF PREPARATION

1.1 The Group consists of:

Parent Company - Pak Elektron Limited

Subsidiary Company - PEL Marketing (Private) Limited

Parent Company

Pak Elektron Limited ("PEL" or "the Parent Company") was incorporated in Pakistan on March 03, 1956 as a public limited company under the Companies Act, 1913 (replaced by the Companies Ordinance, 1984). Registered office of the Parent Company is situated at 17 - Aziz Avenue, Canal Bank, Gulberg - V, Lahore. The Parent Company is currently listed on all three Stock Exchanges of Pakistan. The principal activity of the Parent Company is manufacturing and sale of electrical capital goods and domestic appliances.

The Parent Company is currently organized into two main operating divisions - Power Division and Appliances Division. The Parent Company's activities are as follows:

- Power Division: manufacturing and distribution of transformers, switchgears, energy meters, power transformers, construction of grid stations and electrification works.

- Appliances Division: manufacturing, assembling and distribution of refrigerators, air conditioners, deep freezers, microwave ovens and other home appliances.

Subsidiary Company

PEL Marketing (Private) Limited ("PMPL" or "the Subsidiary Company") was incorporated in Pakistan on August 11, 2011 as a private limited company under the Companies Ordinance, 1984. Registered office of the Subsidiary Company is situated at 17 - Aziz Avenue, Canal Bank, Gulberg - V, Lahore. The principal activity of the Subsidiary Company is sale of electrical capital goods and domestic appliances.

1.2 These consolidated financial statements are presented in Pak Rupees, which is the functional currency of the Group and figures are rounded off to the nearest thousand of rupees unless otherwise stated.

This condensed interim consolidated financial information is un-audited and is being submitted to the members as required by section 245 of The Companies Ordinance, 1984 and the listing regulations of Karachi, Lahore and Islamabad Stock Exchanges. This condensed interim financial information has been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34 'Interim Financial Reporting'. This condensed interim consolidated financial information does not include all the information required for annual financial statements and therefore, should be read in conjunction with the annual financial statements for the year ended December 31, 2014.

These financial statements have been prepared under " Historical cost convention " except for certain fixed assets which are stated at revalued amount / fair value and certain financial assets which are stated at fair value.

10 11














3,130,689

-

-

3,130,689

-

1,032,229

268,111

-

4,431,029

-

-

4,431,029

Share capital

6,545,470

253,374

53,112

6,851,956

1,988,095

2,064,458

-

121,932

11,026,441

732,611

52,009

11,811,061


529,740

-

-

529,740

-

1,032,229

(268,111)

-

1,293,858

-

-

1,293,858

Premium on

issue of shares

Capital reserves

2,885,041

253,374

53,112

3,191,527

1,988,095

-

121,932

5,301,554

732,611

52,009

6,086,174

Revenue reserves


CONDENSED INTERIM

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY








1 LEGAL STATUS AND OPERATIONS

2. BASIS OF PREPARATION

1.1 The Group consists of:

Parent Company - Pak Elektron Limited

Subsidiary Company - PEL Marketing (Private) Limited

Parent Company

Pak Elektron Limited ("PEL" or "the Parent Company") was incorporated in Pakistan on March 03, 1956 as a public limited company under the Companies Act, 1913 (replaced by the Companies Ordinance, 1984). Registered office of the Parent Company is situated at 17 - Aziz Avenue, Canal Bank, Gulberg - V, Lahore. The Parent Company is currently listed on all three Stock Exchanges of Pakistan. The principal activity of the Parent Company is manufacturing and sale of electrical capital goods and domestic appliances.

The Parent Company is currently organized into two main operating divisions - Power Division and Appliances Division. The Parent Company's activities are as follows:

- Power Division: manufacturing and distribution of transformers, switchgears, energy meters, power transformers, construction of grid stations and electrification works.

- Appliances Division: manufacturing, assembling and distribution of refrigerators, air conditioners, deep freezers, microwave ovens and other home appliances.

Subsidiary Company

PEL Marketing (Private) Limited ("PMPL" or "the Subsidiary Company") was incorporated in Pakistan on August 11, 2011 as a private limited company under the Companies Ordinance, 1984. Registered office of the Subsidiary Company is situated at 17 - Aziz Avenue, Canal Bank, Gulberg - V, Lahore. The principal activity of the Subsidiary Company is sale of electrical capital goods and domestic appliances.

1.2 These consolidated financial statements are presented in Pak Rupees, which is the functional currency of the Group and figures are rounded off to the nearest thousand of rupees unless otherwise stated.

This condensed interim consolidated financial information is un-audited and is being submitted to the members as required by section 245 of The Companies Ordinance, 1984 and the listing regulations of Karachi, Lahore and Islamabad Stock Exchanges. This condensed interim financial information has been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34 'Interim Financial Reporting'. This condensed interim consolidated financial information does not include all the information required for annual financial statements and therefore, should be read in conjunction with the annual financial statements for the year ended December 31, 2014.

These financial statements have been prepared under " Historical cost convention " except for certain fixed assets which are stated at revalued amount / fair value and certain financial assets which are stated at fair value.

10 11


4 ISSUED, SUBSCRIBED AND PAID UP CAPITAL

273,214,754 273,214,754 Issued for cash

Other than cash:

2,732,148

137,500 137,500 - against machinery 1,375

408,273 408,273 - on acquisition of Pel Appliances Limited 4,083 6,040,820 6,040,820 - against conversion of preference shares 60,408

118,343,841 118,343,841 - as fully paid bonus shares 1,183,439

398,145,188 398,145,188 3,981,453

Fully paid A class preference shares ofRs. 10 each

44,957,592 44,957,592 Issued for cash 449,576

443,102,780 443,102,780

2,732,148

1,375

4,083 60,408

1,183,439

3,981,453

449,576

4,431,029 4,431,029

2.1 ACCOUNTING POLICIES

The accounting policies adopted for the preparation of these un-audited financial statements are consistent with those applied in preparation of preceding published financial statements of the Group for the year ended December 31, 2014.

3. SHARE CAPITAL

AUTHORIZED CAPITAL

500,000,000 500,000,000 5,000,000 5,000,000

62,500,000 62,500,000 625,000 625,000

37,500,000 37,500,000 375,000 375,000

100,000,000 100,000,000 1,000,000 1,000,000

600,000,000 600,000,000 6,000,000 6,000,000

6 LONG-TERM FINANCING-SECURED

Obtained during the period / year

Settled through issue of PPTFC's

Repaid during the period / year

As at end of the period / year

Current maturity

As at beginning of the period/ year

3,102,060

-

-

126,360

126,360

2,975,700

760,001

2,215,699

3,628,291

1,850,000

2,103,438

272,793

2,376,231

3,102,060

659,253

2,442,807

5 REDEEMABLE CAPITAL

Long term finances

Short term borrowing


Current maturity


Issued during the period on settlement of:

5,629,976 2,464,286

- 2,103,438

- 1,062,252

- 3,165,690

5,629,976 5,629,976

1,058,627 803,507

4,571,349 4,826,469

4.1 Reconciliation of number of shares of Rs. 10 each:

Ordinary shares

At beginning of year

Add: - Issued during the year as bonus shares

Add: - Issued during the year as right shares

268,111,239

26,811,123

103,222,826

398,145,188

-

-

398,145,188 398,145,188

March 312015

December 312014

Number of shares Rupees in thousands

March 312015

December 312014

(Un-audited) (Audited) (Audited)(Un-audited)

March 312015

December 312014


March 312015

December 312014


Ordinary shares of Rs. 10/- each

‘A’ class preference shares of Rs. 10 each

‘B’ class preference shares of Rs. 10 each

Rupees in thousandsMarch 31

2015December 31

2014

(Un-audited) (Audited)

12 13



273,214,754 273,214,754 Issued for cash

Other than cash:

2,732,148




398,145,188 398,145,188 3,981,453


44,957,592 44,957,592 Issued for cash 449,576

443,102,780 443,102,780

2,732,148

1,375

4,083 60,408

1,183,439

3,981,453

449,576

4,431,029 4,431,029

2.1 ACCOUNTING POLICIES

The accounting policies adopted for the preparation of these un-audited financial statements are consistent with those applied in preparation of preceding published financial statements of the Group for the year ended December 31, 2014.

3. SHARE CAPITAL

AUTHORIZED CAPITAL

500,000,000 500,000,000 5,000,000 5,000,000

62,500,000 62,500,000 625,000 625,000

37,500,000 37,500,000 375,000 375,000

100,000,000 100,000,000 1,000,000 1,000,000

600,000,000 600,000,000 6,000,000 6,000,000






Current maturity


3,102,060

-

-

126,360

126,360

2,975,700

760,001

2,215,699

3,628,291

1,850,000

2,103,438

272,793

2,376,231

3,102,060

659,253

2,442,807


Long term finances



Current maturity



5,629,976 2,464,286

- 2,103,438

- 1,062,252

- 3,165,690

5,629,976 5,629,976

1,058,627 803,507

4,571,349 4,826,469


Ordinary shares




268,111,239

26,811,123

103,222,826

398,145,188

-

-

398,145,188 398,145,188

March 312015

December 312014


March 312015

December 312014


March 312015

December 312014


March 312015

December 312014


Ordinary shares of Rs. 10/- each


‘B’ class preference shares of Rs. 10 each


2015December 31

2014


12 13

11 COST OF SALES

Raw material consumed 2,787,092 2,675,370

Direct wages 156,406 151,850

Factory overhead 445,258 443,392

3,388,756 3,270,612

Work-in-process

-at beginning of period 1,262,830 1,043,870

-at end of period (1,138,270) (1,084,390)

124,560 (40,520)

Cost of goods manufactured 3,513,316 3,230,092

Finished goods

-at beginning of period 877,488 385,437

-at end of period (908,314) (491,031)

(30,826) (105,594)

Cost of goods sold 3,482,491 3,124,498

12 EARNINGS PER ORDINARY SHARE - BASIC AND DILUTED

The calculation of basic and diluted earnings per ordinary share is based on the following data:

732,611 253,375

10,677 10,677

Earnings

Profit for the period

Less: dividend payable on preference shares

Profit attributable to ordinary shares 721,934 242,698


Weighted average number of ordinary shares for the purpose of basic earnings per share

398,145,188 398,145,188

Effect of dilutive potential ordinary shares 44,957,592 44,957,592

443,102,780 443,102,780

8 CONTINGENCIES AND COMMITMENTS

There are no material changes in contingencies and commitments as disclosed in the notes to the financial statements for the year ended December 31, 2014.

7 LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE

Present value of minimum lease payments

Less: Current portion payable within next twelve months

168,709 135,110

70,148 60,395

98,561 74,715

9 PROPERTY, PLANT AND EQUIPMENT

14,362,777 14,407,147

63,168 59,743

14,425,945 14,466,890

14,407,147 14,764,490

142,725 403,994

14,549,872 15,168,484

5,174 10,109

181,921 751,228

Property, plant and equipment

Capital work in progress

Net book value at the beginning of the period/ year

Additions / transferred during the period / year

Written down value of the assets disposed off/ adjustment

Depreciation charged during the period

Net book value at the end of the period/ year 14,362,777 14,407,147


2015December 31

2014



2015December 31

2014



2014March 31

2015

(Un-audited) (Un-audited)


2014March 31

2015



2014March 31

2015


10 SALES

Local

Export

Less:

Sales tax and excise duty

Discount

5,620,861

247,868

5,868,729

639,654

67,504

707,158

5,161,571

5,000,989

53,000

5,053,989

573,233

142,412

715,645

4,338,344

Number of shares

March 312014

March 312015


14 15

11 COST OF SALES


Direct wages 156,406 151,850


3,388,756 3,270,612

Work-in-process


-at end of period (1,138,270) (1,084,390)

124,560 (40,520)


Finished goods


-at end of period (908,314) (491,031)

(30,826) (105,594)




732,611 253,375

10,677 10,677

Earnings






398,145,188 398,145,188


443,102,780 443,102,780






168,709 135,110

70,148 60,395

98,561 74,715


14,362,777 14,407,147

63,168 59,743

14,425,945 14,466,890

14,407,147 14,764,490

142,725 403,994

14,549,872 15,168,484

5,174 10,109

181,921 751,228







Net book value at the end of the period/ year 14,362,777 14,407,147


2015December 31

2014



2015December 31

2014



2014March 31

2015



2014March 31

2015



2014March 31

2015


10 SALES

Local

Export

Less:


Discount

5,620,861

247,868

5,868,729

639,654

67,504

707,158

5,161,571

5,000,989

53,000

5,053,989

573,233

142,412

715,645

4,338,344

Number of shares

March 312014

March 312015


14 15

Basic earning per share (rupees) 1.81

0.61

Basic earnings per share have been calculated through dividing profit as stated above by weighted average

number of ordinary shares.

There is no diluting effect on the basic earnings per share of the Group as the conversion rights pertaining to outstanding preference shares, under the original terms of issue, are no longer exercisable.

"Related parties from the group`s perspective comprise associated companies ,key management personnel and post employment benefit plan. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the group, directly or indirectly, and includes the chief executive and directors of the parent company."

Transactions with key management personnel are limited to payment of short term and post employemt benefits. The group in the normal course of business carries out various transactions with its subsidiary and associated companies and continues to have policy whereby all such transactions are carried out on commercial tems and conditions which are equivalent to those prevailing in an arm`s length transactions.

Details of transactions with related parties are as follows:

13 TRANSACTIONS AND BALANCES WITH RELATED PARTIES



CONDENSED INTERIM

FINANCIAL INFORMATION

March 312014

March 312015


13.1 Transactions with related parties

Nature of relationship Nature of transaction

Associated Companies Purchase of services 19,840 27,359

Key management personnel Short term employee benefits 10,955 10,235

Post employment benefits 552 469

March 312014

March 312015


14 DATE OF AUTHORIZATION FOR ISSUE

15 GENERAL

These financial statements were authorized for issue on April 24, 2015 by the Board of Directors of the Company.

Figures have been rounded off to the nearest thousand rupee, unless otherwise stated.

16

Rupees in thousands


0.61



There is no diluting effect on the basic earnings per share of the Group as the conversion rights pertaining to outstanding preference shares, under the original terms of issue, are no longer exercisable.

"Related parties from the group`s perspective comprise associated companies ,key management personnel and post employment benefit plan. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the group, directly or indirectly, and includes the chief executive and directors of the parent company."

Transactions with key management personnel are limited to payment of short term and post employemt benefits. The group in the normal course of business carries out various transactions with its subsidiary and associated companies and continues to have policy whereby all such transactions are carried out on commercial tems and conditions which are equivalent to those prevailing in an arm`s length transactions.





CONDENSED INTERIM


March 312014

March 312015







March 312014

March 312015



15 GENERAL



16

Rupees in thousands



ASSETS

NON-CURRENT ASSETS

Property, plant and equipment 9 14,425,945

14,466,890

Intangible assets 342,805

344,008

14,768,750

14,810,898



CURRENT ASSETS

Stores, spares and loose tools 448,890

462,140

Stock-in-trade 6,282,310

6,140,170

Trade debts 5,811,322

6,025,103

Advances 1,254,303

1,256,100

Trade deposits and short-term prepayments 904,108

853,209

Other receivables 172,610

187,730

Other financial assets 21,962

21,596

Income tax refundable 379,762

387,963

Cash and bank balances 264,090

287,935

15,539,357

15,621,946

30,570,697 30,689,642


March 312015


Note

CONDENSED INTERIM

BALANCE SHEET



Rupees in thousandsNote

The annexed notes from 1 to 15 form an integral part of this condensed interim financial information.



Authorized Capital 3

Issued, subscribed and paid up capital 4

Capital Reserve


SURPLUS ON REVALUATION


Redeemable Capital 5

Long-term financing 6

Liabilities against assets subject to finance lease 7

Deferred taxation

Deferred income

CURRENT LIABILITIES

Trade and other payables

Interest/ mark-up accrued on loans and payables

Short-term borrowings


Long term loans

Liabilities against assets subject finance lease

CONTIGENCIES AND COMMITMENTS 8


March 312015

December 312014

6,000,000

4,431,029

1,293,858

4,303,993

10,028,880

4,516,349

4,571,349 2,215,699

98,561 2,067,463

44,594

757,301

576,972

3,804,753

1,818,628

70,148

7,027,802

-

30,570,697

6,000,000

4,431,029

1,293,858

3,876,195

9,601,082

4,568,357

4,826,469 2,442,807

74,715 2,048,938

45,158

817,486

500,528

4,240,947

1,462,760

60,395

7,082,116

-

30,689,642

18 19



ASSETS

NON-CURRENT ASSETS

Property, plant and equipment 9 14,425,945

14,466,890

Intangible assets 342,805

344,008

14,768,750

14,810,898



CURRENT ASSETS

Stores, spares and loose tools 448,890

462,140

Stock-in-trade 6,282,310

6,140,170

Trade debts 5,811,322

6,025,103

Advances 1,254,303

1,256,100

Trade deposits and short-term prepayments 904,108

853,209

Other receivables 172,610

187,730

Other financial assets 21,962

21,596

Income tax refundable 379,762

387,963

Cash and bank balances 264,090

287,935

15,539,357

15,621,946

30,570,697 30,689,642


March 312015


Note

CONDENSED INTERIM

BALANCE SHEET



Rupees in thousandsNote




Authorized Capital 3

Issued, subscribed and paid up capital 4

Capital Reserve


SURPLUS ON REVALUATION


Redeemable Capital 5

Long-term financing 6

Liabilities against assets subject to finance lease 7

Deferred taxation

Deferred income

CURRENT LIABILITIES

Trade and other payables

Interest/ mark-up accrued on loans and payables

Short-term borrowings


Long term loans

Liabilities against assets subject finance lease

CONTIGENCIES AND COMMITMENTS 8


March 312015

December 312014

6,000,000

4,431,029

1,293,858

4,303,993

10,028,880

4,516,349

4,571,349 2,215,699

98,561 2,067,463

44,594

757,301

576,972

3,804,753

1,818,628

70,148

7,027,802

-

30,570,697

6,000,000

4,431,029

1,293,858

3,876,195

9,601,082

4,568,357

4,826,469 2,442,807

74,715 2,048,938

45,158

817,486

500,528

4,240,947

1,462,760

60,395

7,082,116

-

30,689,642

18 19


CONDENSED INTERIM

CASH FLOW STATEMENT



Profit before taxation

Adjustments for non cash and other items

Cash generated from operations before working capital changes

Working capital changes

Cash generated from operations

Finance cost paid

Compensated absence paid

Income tax paid

Net cash generated/(used) in operating activities


Purchase of property, plant and equipment

Proceeds from disposal of property, plant and equipment

Purchase of other financial assets

Increase in long-term deposits

Net cash used in investing activities


Increase / (Decrease) in Long Term Financing

Increase/ (Decrease) in liabilities against finance lease

Decrease in Short Term Borrowing

Net cash (used)/generated from financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at end of the period


397,243

482,136

879,379

33,006

912,385

(219,396)

(7,244)

(31,777)

(258,417)

653,968

(120,171)

2,522

-

(5,215)

(122,864)

(126,360)

7,606

(436,195)

(554,949)

(23,844)

287,935

264,090

148,223

495,210

643,433

(366,258)

277,175

(1,136,363)

(6,198)

(86,080)

(1,228,641)

(951,466)

(62,958)

2,350

(50,219)

(2,348)

(113,175)

2,904,318

(7,244)

(1,844,441)

1,052,633

(12,008)

259,488

247,480



March 312015


Note

CONDENSED INTERIM

PROFIT AND LOSS ACCOUNT / STATEMENT OF COMPREHENSIVE INCOME


Gross Sales

Sales Tax and discount

Net Sales

Cost of Sales

Gross Profit

Other Operating Income

Distribution Cost

Administrative Cost

Other Operating Expenses

Finance Cost

Profit /(Loss) Before Taxation

Provision for Taxation

Profit /(Loss) For the year

Earnings per share Basic & diluted

Rupees in thousands

10

4,637,494

4,191,364

10

639,654

573,233

3,997,840

3,618,131

11

3,110,319

2,959,988

887,521

658,143

5,455 1,544

892,976 659,687

87,952 84,566

109,141 102,131

2,800

22,156

295,840

302,611

397,243 148,223

21,453

37,826

375,789 110,397

12 0.92 0.25

March 312015

March 312014

Note




20 21


CONDENSED INTERIM

CASH FLOW STATEMENT



Profit before taxation

Adjustments for non cash and other items

Cash generated from operations before working capital changes

Working capital changes

Cash generated from operations

Finance cost paid

Compensated absence paid

Income tax paid

Net cash generated/(used) in operating activities


Purchase of property, plant and equipment

Proceeds from disposal of property, plant and equipment

Purchase of other financial assets

Increase in long-term deposits

Net cash used in investing activities


Increase / (Decrease) in Long Term Financing

Increase/ (Decrease) in liabilities against finance lease

Decrease in Short Term Borrowing

Net cash (used)/generated from financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at end of the period


397,243

482,136

879,379

33,006

912,385

(219,396)

(7,244)

(31,777)

(258,417)

653,968

(120,171)

2,522

-

(5,215)

(122,864)

(126,360)

7,606

(436,195)

(554,949)

(23,844)

287,935

264,090

148,223

495,210

643,433

(366,258)

277,175

(1,136,363)

(6,198)

(86,080)

(1,228,641)

(951,466)

(62,958)

2,350

(50,219)

(2,348)

(113,175)

2,904,318

(7,244)

(1,844,441)

1,052,633

(12,008)

259,488

247,480



March 312015


Note

CONDENSED INTERIM

PROFIT AND LOSS ACCOUNT / STATEMENT OF COMPREHENSIVE INCOME


Gross Sales

Sales Tax and discount

Net Sales

Cost of Sales

Gross Profit

Other Operating Income

Distribution Cost

Administrative Cost

Other Operating Expenses

Finance Cost

Profit /(Loss) Before Taxation

Provision for Taxation

Profit /(Loss) For the year

Earnings per share Basic & diluted

Rupees in thousands

10

4,637,494

4,191,364

10

639,654

573,233

3,997,840

3,618,131

11

3,110,319

2,959,988

887,521

658,143

5,455 1,544

892,976 659,687

87,952 84,566

109,141 102,131

2,800

22,156

295,840

302,611

397,243 148,223

21,453

37,826

375,789 110,397

12 0.92 0.25

March 312015

March 312014

Note




20 21





1. LEGAL STATUS AND OPERATIONS

2 BASIS OF PREPARATION

Pak Elektron Limited ("PEL" or "the Company") was incorporated in Pakistan on March 03, 1956 as a public limited company under the Companies Act, 1913 (replaced by the Companies Ordinance, 1984). Registered office of the Company is situated at 17 - Aziz Avenue, Canal Bank, Gulberg - V, Lahore. The Company is currently listed on all three Stock Exchanges of Pakistan. The principal activity of the Company is manufacturing and sale of electrical capital goods and domestic appliances.

The Company is currently organized into two main operating divisions - Power Division & Appliances Division. The Company's activities are as follows:

Power Division: manufacturing and distribution of transformers, switchgears, energy meters, power transformers, construction of grid stations and electrification works.

Appliances Division: manufacturing, assembling and distribution of refrigerators, air conditioners, deep freezers, microwave ovens and other home appliances.

This condensed interim financial information is presented in Pak Rupees, which is the functional currency of the Company and figures have been rounded off to the nearest thousand of Rupees unless otherwise stated.

This condensed interim financial information of the Company for the 1st quarter ended March 31, 2015 has been prepared in accordance with the requirements of the International Accounting Standard 34 - 'Interim Financial Reporting', and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed.

CONDENSED INTERIM

STATEMENT OF CHANGES IN EQUITY















3,130,689

-

-

3,130,689

-

1,032,229

268,111

-

4,431,029

-

-

4,431,029

Share capital

6,134,282

110,397

53,112

6,297,791

1,116,901

2,064,458

-

121,932

9,601,082

375,789

52,009

10,028,880


529,740

-

-

529,740

-

1,032,229

(268,111)

-

1,293,858

-

-

1,293,858

Premium on

issue of shares

Capital reserves

2,473,853

110,397

53,112

2,637,362

1,116,901

-

121,932

3,876,195

375,789

52,009

4,303,993

Revenue reserves




3. SHARE CAPITAL

AUTHORIZED CAPITAL

5,000,000 5,000,000

625,000 625,000

375,000 375,000

1,000,000 1,000,000

6,000,000 6,000,000

Rupees in thousands

(Audited)(Un-audited)

March 312015

December 312014

500,000,000 500,000,000

62,500,000 62,500,000

37,500,000 37,500,000

100,000,000 100,000,000

600,000,000 600,000,000

Number of shares

March 312015

December 312014


Ordinary shares of Rs. 10 each


‘B’ class preference shares ofRs. 10 each

22 23





1. LEGAL STATUS AND OPERATIONS

2 BASIS OF PREPARATION

Pak Elektron Limited ("PEL" or "the Company") was incorporated in Pakistan on March 03, 1956 as a public limited company under the Companies Act, 1913 (replaced by the Companies Ordinance, 1984). Registered office of the Company is situated at 17 - Aziz Avenue, Canal Bank, Gulberg - V, Lahore. The Company is currently listed on all three Stock Exchanges of Pakistan. The principal activity of the Company is manufacturing and sale of electrical capital goods and domestic appliances.

The Company is currently organized into two main operating divisions - Power Division & Appliances Division. The Company's activities are as follows:

Power Division: manufacturing and distribution of transformers, switchgears, energy meters, power transformers, construction of grid stations and electrification works.

Appliances Division: manufacturing, assembling and distribution of refrigerators, air conditioners, deep freezers, microwave ovens and other home appliances.

This condensed interim financial information is presented in Pak Rupees, which is the functional currency of the Company and figures have been rounded off to the nearest thousand of Rupees unless otherwise stated.

This condensed interim financial information of the Company for the 1st quarter ended March 31, 2015 has been prepared in accordance with the requirements of the International Accounting Standard 34 - 'Interim Financial Reporting', and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed.

CONDENSED INTERIM

STATEMENT OF CHANGES IN EQUITY















3,130,689

-

-

3,130,689

-

1,032,229

268,111

-

4,431,029

-

-

4,431,029

Share capital

6,134,282

110,397

53,112

6,297,791

1,116,901

2,064,458

-

121,932

9,601,082

375,789

52,009

10,028,880


529,740

-

-

529,740

-

1,032,229

(268,111)

-

1,293,858

-

-

1,293,858

Premium on

issue of shares

Capital reserves

2,473,853

110,397

53,112

2,637,362

1,116,901

-

121,932

3,876,195

375,789

52,009

4,303,993

Revenue reserves




3. SHARE CAPITAL

AUTHORIZED CAPITAL

5,000,000 5,000,000

625,000 625,000

375,000 375,000

1,000,000 1,000,000

6,000,000 6,000,000

Rupees in thousands


March 312015

December 312014

500,000,000 500,000,000

62,500,000 62,500,000

37,500,000 37,500,000

100,000,000 100,000,000

600,000,000 600,000,000

Number of shares

March 312015

December 312014


Ordinary shares of Rs. 10 each


‘B’ class preference shares ofRs. 10 each

22 23









Current maturity




As at beginning of the period/ year 3,102,060 3,628,291

- 1,850,000

- 2,103,438

126,360 272,793

126,360 2,376,231

2,975,700 3,102,060

760,001 659,253

2,215,699 2,442,807

168,709 135,110

70,148 60,395

98,561 74,715


14,362,777 14,407,147

63,168 59,743

14,425,945 14,466,890

14,407,147 14,764,490

142,725 403,994

14,549,872 15,168,484

5,174 10,109

181,921 751,228

14,362,777 14,407,147







Net book value at the end of the period/ year


273,214,754 273,214,754 Issued for cash

Other than cash:

2,732,148




398,145,188 398,145,188 3,981,453


44,957,592 44,957,592 Issued for cash 449,576

443,102,780 443,102,780

2,732,148

1,375

4,083 60,408

1,183,439

3,981,453

449,576

4,431,029 4,431,029

March 312015

December 312014


March 312015

December 312014


Ordinary shares





Long term finances



Current maturity



268,111,239

26,811,123

103,222,826

398,145,188

-

-

398,145,188 398,145,188

5,629,976 2,464,286

- 2,103,438

- 1,062,252

- 3,165,690

5,629,976 5,629,976

1,058,627 803,507

4,571,349 4,826,469


2015December 31

2014




2015December 31

2014



2015December 31

2014


24 25









Current maturity




As at beginning of the period/ year 3,102,060 3,628,291

- 1,850,000

- 2,103,438

126,360 272,793

126,360 2,376,231

2,975,700 3,102,060

760,001 659,253

2,215,699 2,442,807

168,709 135,110

70,148 60,395

98,561 74,715


14,362,777 14,407,147

63,168 59,743

14,425,945 14,466,890

14,407,147 14,764,490

142,725 403,994

14,549,872 15,168,484

5,174 10,109

181,921 751,228

14,362,777 14,407,147







Net book value at the end of the period/ year


273,214,754 273,214,754 Issued for cash

Other than cash:

2,732,148




398,145,188 398,145,188 3,981,453


44,957,592 44,957,592 Issued for cash 449,576

443,102,780 443,102,780

2,732,148

1,375

4,083 60,408

1,183,439

3,981,453

449,576

4,431,029 4,431,029

March 312015

December 312014


March 312015

December 312014


Ordinary shares





Long term finances



Current maturity



268,111,239

26,811,123

103,222,826

398,145,188

-

-

398,145,188 398,145,188

5,629,976 2,464,286

- 2,103,438

- 1,062,252

- 3,165,690

5,629,976 5,629,976

1,058,627 803,507

4,571,349 4,826,469


2015December 31

2014




2015December 31

2014



2015December 31

2014


24 25



0.25

There is no diluting effect on the basic earnings per share as the conversion rights pertaining to outstanding preference shares, under the original terms of issue, are no longer exercisable.

Related parties from the Company's perspective comprise subsidiary, associated companies ,key management personnel and post employment benefit plan. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, and includes the chief executive and directors of the Company.

Transactions with key management personnel are limited to payment of short term and post employment benefits. The Company in the normal course of business carries out various transactions with its subsidiary and associated companies and continues to have policy whereby all such transactions are carried out on commercial tems and conditions which are equivalent to those prevailing in an arm`s length transactions.




398,145,188 398,145,188


443,102,780 443,102,780

March 312015

March 312014Number of shares






375,789 110,397

10,677 10,677

Earnings




10 SALES

Local

Export

Less:


Discount

4,389,626

247,868

4,637,494

639,654

-

639,654

3,997,840

4,138,364

53,000

4,191,364

573,233

-

573,233

3,618,131

11 COST OF SALES


Direct wages 156,406 151,850


3,039,009 3,107,224

Work-in-process


-at end of period (1,138,270) (1,084,390)

124,560 (40,520)


Finished goods


-at end of period (754,040) (385,460)

(53,250) (106,716)



2015March 31

2014



2015March 31

2014


March 312015

March 312014




Subsidiary Sales of goods & Services 2,493,715 1,990,070




March 312015

March 312014


26 27

Rupees in thousands



0.25

There is no diluting effect on the basic earnings per share as the conversion rights pertaining to outstanding preference shares, under the original terms of issue, are no longer exercisable.

Related parties from the Company's perspective comprise subsidiary, associated companies ,key management personnel and post employment benefit plan. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, and includes the chief executive and directors of the Company.

Transactions with key management personnel are limited to payment of short term and post employment benefits. The Company in the normal course of business carries out various transactions with its subsidiary and associated companies and continues to have policy whereby all such transactions are carried out on commercial tems and conditions which are equivalent to those prevailing in an arm`s length transactions.




398,145,188 398,145,188


443,102,780 443,102,780

March 312015

March 312014Number of shares






375,789 110,397

10,677 10,677

Earnings




10 SALES

Local

Export

Less:


Discount

4,389,626

247,868

4,637,494

639,654

-

639,654

3,997,840

4,138,364

53,000

4,191,364

573,233

-

573,233

3,618,131

11 COST OF SALES


Direct wages 156,406 151,850


3,039,009 3,107,224

Work-in-process


-at end of period (1,138,270) (1,084,390)

124,560 (40,520)


Finished goods


-at end of period (754,040) (385,460)

(53,250) (106,716)



2015March 31

2014



2015March 31

2014


March 312015

March 312014




Subsidiary Sales of goods & Services 2,493,715 1,990,070




March 312015

March 312014


26 27

Rupees in thousands

28


15 GENERAL



17-Aziz Avenue, Canal Bank, Gulberg-V, Lahore.Ph: (042) 35718274-5, 35717364-5

www.pel.com.pk



28


15 GENERAL



17-Aziz Avenue, Canal Bank, Gulberg-V, Lahore.Ph: (042) 35718274-5, 35717364-5

www.pel.com.pk



Documents

Interim Financial Report - PEL · Chairman - Executive Mr. M. Murad Saigol Chief Executive - Executive/Certified (DTP) Mr. M. Azam Saigol ... Soneri Bank Limited Standard Chartered