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1 Nishat Chunian Limited
Interim Financial Information Quarter Ended September 30, 2018 (Un-audited)
Nishat Chunian Limited
2 Nishat Chunian Limited
1 Nishat Chunian Limited
CONTENTS
02 CompanyInformation
04 Director’s Report
06 Unconsolidated Condensed Interim Statement of
FinancialPosition
08 Unconsolidated Condensed Interim Statement of
ProfitorLoss
09 Unconsolidated Condensed Interim Statement of
Comprehensive Income
10 Unconsolidated Condensed Interim Statement of Cash Flows
11 Unconsolidated Condensed Interim Statement of
Changes in Equity
12 Notes to the Unconsolidated Condensed Interim Financial
Information
22 Consolidated Condensed Interim Statement of
FinancialPosition
24 ConsolidatedCondensedInterimStatementofProfitorLoss
25 Consolidated Condensed Interim Statement Of
Comprehensive Income
26 Consolidated Condensed Interim Statement of Cash Flows
27 Consolidated Condensed Interim Statement Of Changes
In Equity
28 Notes to the Consolidated Condensed Interim Financial
Information
2 Nishat Chunian Limited
COMPANY INFORMATION
Board of Directors:Mrs. Farhat Saleem (Chairperson)Mr. Shahzad Saleem (Mr. Zain Shahzad Mr. Ahmad Khan Mrs. Sonia Karim (Resigned on 08-10-2018) Mr. Muhammad Ali ZebMr. Farrukh Ifzal Mr. Shoaib Ahmad Khan (Independent)
Mr. Shoaib Ahmad Khan (Chairman)Mr. Zain Shahzad Mr. Muhammad Ali Zeb
Mr. Shoaib Ahmad Khan (Chairman)Mr s. Sonia KarimMr. Farrukh Ifzal
CFO: Mr. Babar Ali Khan
Company Secretary: Mr. Awais Mahmood
Head of Internal Audit:Mr. Ahmad Bilal
Mills:Spinning 1, 4, 5, 7 & 849th Kilometre, Multan Road,Bhai Pheru, Tehsil Chunian,District Kasur.
Dyeing & 4th Kilometre, Manga Road,Raiwind.
Spinning 2, 3, 6 & Weaving49th Kilometre, Multan Road,Kamogal, Tehsil District Kasur.
Bankers to the Company:Allied Bank LimitedAskari Bank LimitedAl Barka Bank (Pakistan) LimitedBank Alfalah LimitedBank Al Habib LimitedBank Islami Pakistan LimitedDubai Islamic Bank Pakistan LimitedFaysal Bank LimitedHabib Bank LimitedHabib Metropolitan Bank LimitedIndustrial and Commercial Bank of China (ICBC)JS Bank LimitedMCB Bank LimitedMeezan Bank Limited
Bank of PakistanPak Kuwait Investment Company (Private) LimitedStandard Chartered Bank Pakistan LimitedSAMBA Bank LimitedSoneri Bank LimitedThe Bank of PunjabUnited Bank Limited
Auditors: Riaz Ahmad & CompanyChartered Accountants
31-Q, Gulberg-II,Lahore, Pakistan.Phone : 042-35761730-39Fax : 042-35878696-97Web : www.nishat.net
Share Registrar: Hameed Majeed Associates (Pvt) Limited1st Floor, H.M. House7-Bank Square, LahorePh: 042-37235081-2 Fax: 042-37358817
3 Nishat Chunian Limited
THIS PAGEHAS BEEN
INTENTIONALLYLEFT BLANK
4 Nishat Chunian Limited
Dear Shareholders
The Board of Directors is pleased to announce the unaudited results of Nishat (Chunian) Limited (“the Company”) for the quarter ended on September 30, 2018.
Operating Financial Results
Revenues earned during these three months period are Rs. 9.23 billion as compared to Rs. 8.37 billion during the corresponding three months of previous fiscal year, registering an increase of 10.26%. The increase in turnover is mainly driven by yarn sales in local market, whereas, Duty Drawback also had a marginal impact. Gross Margin increased significantly to 16.12% as compared to 6.35% in corresponding period of the preceding year. Profit after tax of the Company increased to 9.23% from -1.14 % as compare to the corresponding three months of the previous fiscal year, exchange gain have also contributed to this favorable variance.
Financial Highlights Quarter ended September 30
Increase / Decrease % 2018 2017
Sales (Rs.) 9,226,851,756 8,368,040,197 10.26% Gross Profit (Rs.) 1,487,342,217 531,186,317 180.00% Profit / (Loss) After Taxation (Rs.) 851,863,915 (95,139,346) 995.39% Gross Profit % 16.12% 6.35% Profit / (Loss) After Tax % 9.23% -1.14% Earnings / (Loss) Per Share (Rs.) 3.55 (0.40)
Future Prospects
The management is devoted to value creation through adoption of advance technology and further diversification in business. Spinning division has seen significant increase in turnover, this is a direct result of major capex investments over last few years to enhance existing capacity and improvise overall efficiency. The company has also started operating the 26 Juki Machines recently installed in Home Textile unit which has increased stitching capacity in general and will further train unskilled labour with necessary skills. Company’s constant focus on replacement and upgradation of existing machinery to modernize the overall process will positively impact the bottom line in the coming periods. Also, the devaluation trend of Pak Rupee against USD and Euro has created some breathing space for the export sector.
“The Linen Company (TLC)”, has successfully launched its retail outlet in Rawalpindi and is further looking to expand its retail network into other cities as well.
The company, in its EOGM held on August 20, 2018 has already decided to dispose of its cinema business. The transaction will be concluded once all the statutory approvals are formalized. This fact has already been communicated through media and stock exchange.
Subsidiary Companies and Consolidated Financial Statements
The Company’s portfolio of subsidiary companies include Nishat Chunian Power Limited, NC Electric Company Limited, Nishat Chunian USA Inc. and NC Entertainment (Pvt.) Limited. Therefore, the Company has annexed consolidated condensed interim financial information in addition to its separate condensed interim financial information, in accordance with the requirements of International Financial Reporting Standards and applicable provisions of the Company Act, 2017.
Acknowledgement
The Directors wish to express their appreciation to the dedicated employees who continue to play a pivotal role in the operations of company.
For and on behalf of the Board,
______________ __________ Chief Executive Director Date: 29th October 2018
DIrECTOr’S rEpOrT
5 Nishat Chunian Limited
6 Nishat Chunian Limited
Un-audited AuditedSeptember 30, June 30,
Note 2018 2018Rupees Rupees
SHARE CAPITAL AND RESERVES
5 3,000,000,000 3,000,000,000
Issued, subscribed and paid up share capital 6 2,402,215,560 2,402,215,560 Reserves 12,160,097,706 11,308,233,791 Total equity 14,562,313,266 13,710,449,351
LIABILITIES
NON-CURRENT LIABILITIES
Long term financing 7 4,397,282,350 4,756,266,450
CURRENT LIABILITIES
Trade and other payables 3,155,538,483 2,238,596,263 Unclaimed Dividend 37,979,226 38,206,334 Accrued mark-up 234,439,453 211,095,682 Short term borrowings 8 16,302,638,350 17,021,991,856 Current por�on of non-current liabili�es 1,416,198,900 1,416,992,650
21,146,794,412 20,926,882,785 TOTAL LIABILITIES 25,544,076,762 25,683,149,235
CONTINGENCIES AND COMMITMENTS 9
TOTAL EQUITY AND LIABILITIES 40,106,390,028 39,393,598,586
The annexed notes form an integral part of these financial statements.
________________Chief Execu�ve
EQUITY AND LIABILITIES
Authorized share capital
UNCONSOLIDaTED CONDENSED INTErIm STaTEmENT Of fINaNCIaL pOSITION
aS aT SEpTEmbEr 30, 2018
7 Nishat Chunian Limited
Un-audited AuditedSeptember 30, June 30,
Note 2018 2018Rupees Rupees
NON-CURRENT ASSETS
Fixed assets 10 11,230,974,719 11,359,643,510 Intangible asset 11 1,088,806 1,228,590 Investment in subsidiary companies 3,186,681,200 3,186,681,200 Long term loans to employees 13,867,013 13,940,372 Long term security deposits 25,726,440 23,647,440
14,458,338,178 14,585,141,112
CURRENT ASSETS
Stores, spare parts and loose tools 687,048,917 686,743,322 Stock-in-trade 11,784,794,133 10,447,356,778 Trade debts 6,809,395,412 8,124,577,164 Loans and advances 2,490,689,910 1,865,276,632 Short term prepayments 33,548,948 3,453,878 Other receivables 3,738,576,785 3,522,638,415 Accrued Interest 45,971,506 60,317,256 Short term investments 20,712,111 21,649,175 Cash and bank balances 37,314,128 76,444,854
25,648,051,850 24,808,457,474
TOTAL ASSETS 40,106,390,028 39,393,598,586
________________________ ____________ Chief Financial Officer Director
ASSETS
UNCONSOLIDaTED CONDENSED INTErIm STaTEmENT Of fINaNCIaL pOSITION
aS aT SEpTEmbEr 30, 2018
8 Nishat Chunian Limited
UNCONSOLIDaTED CONDENSED INTErIm STaTEmENT Of prOfIT Or LOSS (UN-aUDITED)
fOr qUarTEr ENDED SEpTEmbEr 30, 2018
September 30, September 30,Note 2018 2017
Rupees Rupees
SALES 9,226,851,756 8,368,040,197 COST OF SALES 12 (7,739,509,539) (7,836,853,880) GROSS PROFIT 1,487,342,217 531,186,317
DISTRIBUTION COST (246,423,034) (201,774,738) ADMINISTRATIVE EXPENSES (60,890,744) (53,063,232) OTHER OPERATING EXPENSES (48,172,977) (5,284,489)
(355,486,755) (260,122,459)
1,131,855,462 271,063,858
OTHER OPERATING INCOME 188,421,962 18,963,371
PROFIT FROM OPERATIONS 1,320,277,424 290,027,229
FINANCE COST (376,841,610) (307,723,849)
PROFIT BEFORE TAXATION 943,435,814 (17,696,620)
TAXATION (91,571,899) (77,442,726)
PROFIT AFTER TAXATION 851,863,915 (95,139,346)
EARNINGS PER SHARE - BASIC & DILUTED 3.55 (0.40)
The annexed notes form an integral part of these financial statements.
_______________ _____________________ ______________ Chief Execu�ve Chief Financial Officer Director
Quarter Ended
9 Nishat Chunian Limited
UNCONSOLIDaTED CONDENSED INTErIm STaTEmENT Of COmprEhENSIvE INCOmE (UN-aUDITED)
fOr qUarTEr ENDED SEpTEmbEr 30, 2018
September 30, September 30,2018 2017
Rupees Rupees
PROFIT AFTER TAXATION 851,863,915 (95,139,346)
OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 851,863,915 (95,139,346)
_________________ _______________________ _____________ Chief Execu�ve Chief Financial Officer Director
The annexed notes form an integral part of these financial statements.
Quarter Ended
10 Nishat Chunian Limited
UNCONSOLIDaTED CONDENSED INTErIm STaTEmENT Of CaSh fLOwS (UN-aUDITED)
fOr qUarTEr ENDED SEpTEmbEr 30, 2018
September 30, September 30,Note 2018 2017
Rupees Rupees CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from opera�ons 13 1,716,198,245 691,488,185
Net increase in long term security deposits (2,079,000) - Net decrease / (increase) in long term loans to employees 73,359 (1,755,061) Finance cost paid (353,497,839) (362,464,313) Income tax paid (83,071,170) (50,964,498) Net cash generated from opera�ng ac�vi�es 1,277,623,595 276,304,313
CASH FLOWS FROM INVESTING ACTIVITIESCapital expenditure on property, plant and equipment (100,911,140) (163,269,526) Capital expenditure on intangible assets - (212,849) Proceeds from disposal of opera�ng fixed assets 820,118 980,700 Loans to subsidiary companies (1,291,115,555) (1,463,107,000) Repayment of loans from subsidiary companies 1,124,697,498 2,073,099,328 Investment in subsidiary companies - 64,422,217 Short term investments made 988,949 1,106,721 Interest income received from subsidiary companies 27,999,105 1,038,783 Profit on bank deposits received 125,168 52,779
Net cash (used in) / generated from inves�ng ac�vi�es (237,395,857) 514,111,153
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from long term financing - 2,076,300,000 Repayment of long term financing (359,777,850) (204,120,350) Short term borrowings - net (719,353,506) (2,643,774,256) Dividend paid (227,108) (1,400)
Net cash used in financing ac�vi�es (1,079,358,464) (771,596,006)
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (39,130,726) 18,819,460
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 76,444,854 44,549,361
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 37,314,128 63,368,821
The annexed notes form an integral part of these financial statements.
_________________ _______________________ _____________ Chief Execu�ve Chief Financial Officer Director
Quarter Ended
11 Nishat Chunian Limited
UNCONSOLIDaTED CONDENSED INTErIm STaTEmENT Of ChaNGES IN EqUITy (UN-aUDITED)
fOr qUarTEr ENDED SEpTEmbEr 30, 2018
Bala
nce
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201
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2,21
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12 Nishat Chunian Limited
SELECTED NOTES TO ThE UNCONSOLIDaTED CONDENSED INTErIm fINaNCIaL INfOrmaTION (UN-aUDITED)
fOr qUarTEr ENDED SEpTEmbEr 30, 2018
1.
2.
3.
4.
5. AUTHORIZED SHARE CAPITAL
Un-audited Audited Un-audited AuditedSeptember 30, June 30, September 30, June 30,
2018 2018 2018 2018Rupees Rupees
280,000,000 280,000,000 Ordinary shares of Rupees 10 each 2,800,000,000 2,800,000,000
20,000,000 20,000,000 200,000,000 200,000,000
300,000,000 300,000,000 3,000,000,000 3,000,000,000
During prepara�on of this unconsolidated condensed interim financial informa�on, the significant judgmentsmade by the management in applying the Company’s accoun�ng policies and the key sources of es�ma�on anduncertainty were the same as those that applied in the preceding audited annual published financial statementsof the Company for the year ended 30 June 2018.
THE COMPANY AND ITS OPERATIONS Nishat (Chunian) Limited (“the Company”) is a public limited company incorporated in Pakistan under therepealed Companies Ordinance, 1984 (Now Companies Act. 2017) and is listed on the Pakistan Stock ExchangeLimited. Its registered office is situated at 31-Q, Gulberg II, Lahore. The Company is engaged in business ofspinning, weaving, dyeing, prin�ng, s�tching, processing, doubling, sizing, buying, selling and otherwise dealingin yarn, fabric and made-ups made from raw co�on, synthe�c fiber and cloth and to generate, accumulate,distribute, supply and sell electricity.
BASIS OF PREPARATIONThese condensed unconsolidated interim financial statements have been prepared in accordance with theaccoun�ng and repor�ng standards as applicable in Pakistan for interim financial repor�ng. The accoun�ng andrepor�ng standards as applicable in Pakistan for interim financial repor�ng comprise of Interna�onal Accoun�ng Standard (lAS) 34, Interim Financial Repor�ng, issued by the Interna�onal Accoun�ng Standards Board (IASB) asno�fied under the Companies Act, 2017; and Provisions of and direc�ves issued under the Companies Act, 2017.Where the provisions of and direc�ves issued under the Companies Act, 2017 differ with the requirements oflAS 34, the provisions of and direc�ves issued under the Companies Act, 2017 have been followed. Thisunconsolidated condensed interim financial informa�on should be read in conjunc�on with the precedingaudited annual published financial statements of the Company for the year ended 30 June 2018.
ACCOUNTING POLICIESThe accoun�ng policies and methods of computa�ons adopted for the prepara�on of this unconsolidatedcondensed interim financial informa�on are the same as applied in the prepara�on of the preceding auditedannual published financial statements of the Company for the year ended 30 June 2018.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTSThe prepara�on of this unconsolidated condensed interim financial informa�on in conformity with theapproved accoun�ng standards requires the use of certain cri�cal accoun�ng es�mates. It also requires themanagement to exercise its judgment in the process of applying the Company's accoun�ng policies. Es�matesand judgments are con�nually evaluated and are based on historical experience and other factors, includingexpecta�ons of future events that are believed to be reasonable under the circumstances.
(Number of shares)
15 % non-vo�ng cumula�ve conver�blepreference shares of Rupees 10 each
13 Nishat Chunian Limited
SELECTED NOTES TO ThE UNCONSOLIDaTED CONDENSED INTErIm fINaNCIaL INfOrmaTION (UN-aUDITED)
fOr qUarTEr ENDED SEpTEmbEr 30, 2018
6. ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL
Un-audited Audited Un-audited AuditedSeptember 30, June 30, September 30, June 30,
2018 2018 2018 2018Rupees Rupees
134,757,848 134,757,848 1,347,578,480 1,347,578,480
104,239,443 104,239,443 1,042,394,430 1,042,394,430
1,224,265 1,224,265
12,242,650 12,242,650
240,221,556 240,221,556 2,402,215,560 2,402,215,560
Un-audited AuditedSeptember 30, June 30,
2018 2018Rupees Rupees
7. LONG TERM FINANCING
5,363,481,250 5,698,259,100 450,000,000 475,000,000 5,813,481,250 6,173,259,100 1,416,198,900 1,416,992,650 4,397,282,350 4,756,266,450
Un-audited AuditedSeptember 30, June 30,
2018 2018Rupees Rupees
8. SHORT TERM BORROWINGS Short term running finances 3,769,218,351 2,287,732,856 Export finances-preshipment/SBP refinance 6,799,999,999 7,550,839,000 Other short term finances 5,733,420,000 7,183,420,000
16,302,638,350 17,021,991,856
Non-current por�on
(Number of shares)
Ordinary shares of Rupees 10 each fullypaid in cash
Ordinary shares of Rupees 10 each issued as fully paid bonus shares
Ordinary shares of Rupees 10 each issuedas fully paid for considera�on other thancash to members of Umer Fabrics Limited as per the Scheme of arrangement asapproved by the Honourable Lahore HighCourt, Lahore
From Banking Companies / financial ins�tu�ons -Secured Long Term Loans Long Term Musharaka
Less: Current por�on shown under current liabili�es
14 Nishat Chunian Limited
SELECTED NOTES TO ThE UNCONSOLIDaTED CONDENSED INTErIm fINaNCIaL INfOrmaTION (UN-aUDITED)
fOr qUarTEr ENDED SEpTEmbEr 30, 2018
9. CONTINGENCIES AND COMMITMENTS
Con�ngencies
i)
ii)
iii)
Commitmentsi)ii)
Un-audited AuditedSeptember 30, June 30,
2018 201810. FIXED ASSETS Rupees Rupees
Property, plant and equipmentOpera�ng fixed assets (Note 10.1) 11,191,856,972 11,287,175,272 Capital work in progress (Note 10.2) 39,117,747 72,468,238
11,230,974,719 11,359,643,510 -
10.1 Opera�ng Assets
Opening book value 11,287,175,272 11,719,057,304 Addi�ons during the period / year (10.1.1) 134,261,630 615,992,663
11,421,436,902 12,335,049,967 Book value of dele�ons during the period / year (10.1.2) 645,691 45,823,260 Less: Deprecia�on charged during the period / year 228,934,239 1,002,051,435
Closing book value 11,191,856,972 11,287,175,272
Le�ers of credit other than for capital expenditure are Rupees 999.055 million (30 June 2018: Rupees 1,265.473 million). Outstanding foreign currency forward contracts of Rupees 135.204 million (30 June 2018: Rupees 418.294 million).
There is no significant change in the status of con�ngencies as disclosed in the preceding audited annual financial statements of the Company for the year ended 30 June 2018 except for the following:
Post dated cheques have been issued to custom authori�es in respect of du�es amoun�ng to Rupees 3464.639 million (30 June 2018: Rupees 3,234.598 million) on imported material availed on the basis of consump�on and export plans. In the event the documents of exports are not provided on due dates, cheque issued as security shall be encashable.
The Company has issued cross corporate guarantees of Rupees 9.55 billion (30 June 2018: Rupees 9.25 billion) on behalf of NC Electric Company Limited - wholly owned subsidiary company to secure the obliga�ons of subsidiary company towards its lenders.
Guarantees of Rupees 630.454 million (30 June 2018: Rupees 609.109 million) are given by the banks of the Company to Sui Northern Gas Pipelines Limited against gas connec�ons, Shell Pakistan Limited against purchase of furnace oil, Lahore Electric Supply Company Limited against electricity connec�on, Director Excise and Taxa�on, Karachi against infrastructure cess, Chairman Punjab Revenue Authority, Lahore against infrastructure cess, Director Pakistan Central Co�on Commi�ee against co�on cess, and Nazir, Honourable High Court, Sindh against the no�fica�on in accordance with sec�on 8 of OGRA Ordinance 2002, regarding system gas tariff on industrial and cap�ve units.
15 Nishat Chunian Limited
SELECTED NOTES TO ThE UNCONSOLIDaTED CONDENSED INTErIm fINaNCIaL INfOrmaTION (UN-aUDITED)
fOr qUarTEr ENDED SEpTEmbEr 30, 2018
10.1.2 Book Value of dele�ons during the period / yearPlant and machinery - 121,810,851 Electric installa�ons - 10,000 Furniture and fixtures - 619,756 Office equipment 316,700 1,154,420 Motor vehicles 1,039,594 27,437,810 Total Cost of Dele�ons 1,356,294 151,032,837 Less: Accumulated Deprecia�on (710,603) (105,209,577) Less: Accumulated Impairment - -
645,691 45,823,260 10.2 Capital work-in-progress
Civil works on freehold land 2,209 2,210 Mobiliza�on advances - 137,500 Le�ers of credit - 39,324 Advances for capital expenditures 39,115,538 72,289,204
39,117,747 72,468,238
Un-audited AuditedSeptember 30, June 30,
2018 201811. INTANGIBLE ASSET Rupees Rupees
Computer so�ware 1,088,806 1,228,590
11.1 Intangible asset - Computer so�wareOpening book value 1,228,590 2,688,540 Add: Cost of addi�ons during the period / year - 257,650 Less: Amor�za�on charged during the period / year 139,784 1,717,600 Closing book value 1,088,806 1,228,590
10.1.1 Cost of addi�ons during the period / yearLand - 10,806,400 Building on freehold land - 91,707,904 Plant and machinery 118,752,236 421,689,770 Electric installa�ons 3,942,728 24,437,172 Factory equipment 858,165 11,668,521 Furniture and fixtures 3,717,891 23,803,595 Office equipment 1,329,240 11,322,593 Motor vehicles 5,661,370 20,556,708
134,261,630 615,992,663
10.1.2 Book Value of dele�ons during the period / yearPlant and machinery - 121,810,851 Electric installa�ons - 10,000 Furniture and fixtures - 619,756 Office equipment 316,700 1,154,420 Motor vehicles 1,039,594 27,437,810 Total Cost of Dele�ons 1,356,294 151,032,837 Less: Accumulated Deprecia�on (710,603) (105,209,577) Less: Accumulated Impairment - -
645,691 45,823,260 10.2 Capital work-in-progress
Civil works on freehold land 2,209 2,210 Mobiliza�on advances - 137,500 Le�ers of credit - 39,324 Advances for capital expenditures 39,115,538 72,289,204
39,117,747 72,468,238
Un-audited AuditedSeptember 30, June 30,
2018 201811. INTANGIBLE ASSET Rupees Rupees
Computer so�ware 1,088,806 1,228,590
11.1 Intangible asset - Computer so�wareOpening book value 1,228,590 2,688,540 Add: Cost of addi�ons during the period / year - 257,650 Less: Amor�za�on charged during the period / year 139,784 1,717,600 Closing book value 1,088,806 1,228,590
10.1.1 Cost of addi�ons during the period / yearLand - 10,806,400 Building on freehold land - 91,707,904 Plant and machinery 118,752,236 421,689,770 Electric installa�ons 3,942,728 24,437,172 Factory equipment 858,165 11,668,521 Furniture and fixtures 3,717,891 23,803,595 Office equipment 1,329,240 11,322,593 Motor vehicles 5,661,370 20,556,708
134,261,630 615,992,663
16 Nishat Chunian Limited
SELECTED NOTES TO ThE UNCONSOLIDaTED CONDENSED INTErIm fINaNCIaL INfOrmaTION (UN-aUDITED)
fOr qUarTEr ENDED SEpTEmbEr 30, 2018
Opening stock 902,207,503 681,950,465 Closing stock (951,455,986) (718,394,071)
(49,248,483) (36,443,606) Cost of goods manufactured 8,753,426,073 7,834,498,829
Finished goods and waste-opening stocks Finished goods 1,124,942,023 1,058,655,750 Waste 106,915,432 78,504,641
1,231,857,455 1,137,160,391 9,985,283,528 8,971,659,220
Finished goods and waste-closing stocks Finished goods (2,118,900,272) (1,057,530,842) Waste (126,873,717) (77,274,498)
(2,245,773,989) (1,134,805,340)
Cost of goods sold 7,739,509,539 7,836,853,880
September 30, September 30,2018 2017
12. COST OF GOODS SOLDRaw material consumed 6,312,051,784 5,698,355,659 Packing materials consumed 209,411,462 205,487,967 Stores, spare parts and loose tools 289,926,933 234,641,635 Commercial Processing S�tching etc. 154,898,504 19,951,647 Salaries, wages and other benefits 594,057,123 606,743,774 Fuel and power 903,006,303 749,967,268 Insurance 10,014,369 9,068,919 Postage and telephone 193,341 164,555 Travelling and conveyance 867,958 832,863 Vehicles running and maintenance 6,623,292 5,402,746 Entertainment 2,061,826 2,567,697 Deprecia�on 227,332,234 242,801,510 Repair and maintenance 83,439,994 77,134,950 Other factory overheads 8,789,433 17,821,245
8,802,674,556 7,870,942,435
Work-in-process
Un-audited Quarter Ended
…………… Rupees ……………
17 Nishat Chunian Limited
SELECTED NOTES TO ThE UNCONSOLIDaTED CONDENSED INTErIm fINaNCIaL INfOrmaTION (UN-aUDITED)
fOr qUarTEr ENDED SEpTEmbEr 30, 2018
Opening stock 902,207,503 681,950,465 Closing stock (951,455,986) (718,394,071)
(49,248,483) (36,443,606) Cost of goods manufactured 8,753,426,073 7,834,498,829
Finished goods and waste-opening stocks Finished goods 1,124,942,023 1,058,655,750 Waste 106,915,432 78,504,641
1,231,857,455 1,137,160,391 9,985,283,528 8,971,659,220
Finished goods and waste-closing stocks Finished goods (2,118,900,272) (1,057,530,842) Waste (126,873,717) (77,274,498)
(2,245,773,989) (1,134,805,340)
Cost of goods sold 7,739,509,539 7,836,853,880
September 30, September 30,2018 2017
12. COST OF GOODS SOLDRaw material consumed 6,312,051,784 5,698,355,659 Packing materials consumed 209,411,462 205,487,967 Stores, spare parts and loose tools 289,926,933 234,641,635 Commercial Processing S�tching etc. 154,898,504 19,951,647 Salaries, wages and other benefits 594,057,123 606,743,774 Fuel and power 903,006,303 749,967,268 Insurance 10,014,369 9,068,919 Postage and telephone 193,341 164,555 Travelling and conveyance 867,958 832,863 Vehicles running and maintenance 6,623,292 5,402,746 Entertainment 2,061,826 2,567,697 Deprecia�on 227,332,234 242,801,510 Repair and maintenance 83,439,994 77,134,950 Other factory overheads 8,789,433 17,821,245
8,802,674,556 7,870,942,435
Work-in-process
Un-audited Quarter Ended
…………… Rupees ……………
September 30, September 30,
2018 2017Rupees Rupees
13. CASH GENERATED FROM OPERATIONS
Profit / Loss before taxa�on 943,435,814 (17,696,620) Adjustment for non cash charges and other items:Deprecia�on on opera�ng fixed assets 228,934,239 244,413,166 Amor�za�on on intangible assets 139,784 1,299,426 (Gain)/Loss on sale of opera�ng fixed assets (174,426) 29,703 Interest income on loan to subsidiary company (13,653,355) (7,380,485) Interest on bank deposits (177,053) (208,455) Finance cost 376,841,610 307,723,849 Working capital changes (Note 13.1) 180,851,632 163,307,601
Cash generated from opera�ons 1,716,198,245 691,488,185
13.1 Working capital changes(Increase) / decrease in current assets- Stores, spare parts and loose tools (305,595) (287,938,254) - Stock in trade (1,337,437,355) 34,396,601 - Trade debts 1,315,181,752 (446,581,419) - Loans and advances (458,995,221) (281,335,618) - Short term deposits and prepayments (30,095,070) (21,956,406) - Other receivables (224,439,099) 98,927,437 Increase in current liabili�es - Trade and other payables 916,942,220 1,067,795,260
180,851,632 163,307,601
Un-audited Quarter Ended
18 Nishat Chunian Limited
SELECTED NOTES TO ThE UNCONSOLIDaTED CONDENSED INTErIm fINaNCIaL INfOrmaTION (UN-aUDITED)
fOr qUarTEr ENDED SEpTEmbEr 30, 2018
14.
SEGM
ENT
INFO
RMAT
ION
30-S
ep-18
30-S
ep-17
30-S
ep-18
30-S
ep-17
30-S
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30-S
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30-S
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30-S
ep-17
30-S
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30-S
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30-S
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30-S
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30-S
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30-S
ep-17
30-S
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30-S
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30-S
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30-S
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30-S
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30-S
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…
……
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Sale
s:Ex
tern
al1,
949,
076,
022
2,21
6,30
0,31
699
1,18
3,06
291
0,09
4,30
22,
710,
049,
223
1,81
3,26
3,43
01,
082,
882,
916
1,27
2,88
7,10
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7,52
9,13
123
2,18
7,87
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2,25
7,45
644
6,47
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91,
683,
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261,
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741
225,
089,
634
662,
798,
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531,
348,
313
197,
529,
131
232,
187,
877
509,
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508
346,
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1,63
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3,09
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-
-
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-
-
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al28
0,63
2,44
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0,70
2,07
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3,95
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1,58
8,17
3,79
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0,08
4,86
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105,
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108,
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1,
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)-
-
2,
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12,
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313
1,92
1,70
4,10
62,
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1,84
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7,52
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71,
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3,56
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(7,8
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/ (lo
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420,
780,
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177,
969,
352
204,
230,
596
98,9
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(39,
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(37,
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(28,
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(15,
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(95,
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(73,
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nce
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(376
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ision
for t
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on(9
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9)(7
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g P
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me T
extil
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Gen
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Elim
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f int
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f rep
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segm
ent a
sset
s and
liab
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s
30-S
ep-18
30-Ju
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30-S
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30-Ju
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30-S
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30-S
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30-S
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30-S
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Tota
l ass
ets
for r
epor
tabl
e se
gmen
ts7,
327,
401,
310
7,10
4,05
6,74
14,
945,
995,
884
4,78
5,85
1,42
66,
045,
106,
080
5,85
5,79
2,34
03,
538,
233,
796
3,64
4,72
5,10
464
9,64
2,92
666
9,19
5,42
94,
443,
655,
870
4,41
9,20
1,66
72,
962,
437,
246
2,97
9,46
7,77
81,
830,
483,
130
1,93
0,21
5,81
831
,742
,956
,242
31,3
88,5
06,3
03
Unal
loca
ted
asse
ts:
Long
term
inve
smen
ts3,
186,
681,
200
3,18
6,68
1,20
0Ot
her r
ecei
vabl
es3,
738,
576,
785
3,52
2,63
8,41
5Sh
ort t
erm
inve
stm
ent
20,7
12,1
1121
,649
,175
Cash
and
bank
bal
ance
s37
,314
,128
76,4
44,8
54Ot
her c
orpo
rate
asse
ts1,
380,
149,
562
1,19
7,67
8,63
9
Tota
l ass
ets a
s per
bal
ance
shee
t40
,106
,390
,028
39,3
93,5
98,5
86
Tota
l lia
bilit
ies
for r
epor
tabl
e se
gmen
ts46
0,40
6,97
817
3,28
4,72
831
0,77
4,71
010
7,58
0,31
737
9,83
5,75
713
7,90
5,43
024
7,38
0,34
023
9,48
4,32
145
,420
,653
43
,970
,892
64
1,37
7,54
958
0,31
2,91
742
7,58
5,03
238
6,87
5,27
838
9,84
2,30
738
3,77
2,36
72,
902,
623,
327
2,05
3,18
6,25
0
Unal
loca
ted
liabi
litie
s:Lo
ng te
rm fi
nanc
ing
5,81
3,48
1,25
06,
173,
259,
100
Acc
rued
mar
k-up
234,
439,
453
211,
095,
682
Sho
rt te
rm b
orro
win
gs16
,302
,638
,350
17,0
21,9
91,8
56Ot
her c
orpo
rate
liab
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s29
0,89
4,38
222
3,61
6,34
7
Tota
l lia
bilit
ies
as p
er b
alan
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heet
25,5
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76,7
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Stit
chin
g
……
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pees
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……
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Zone
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ne-2
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yein
g Sp
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ng
Wea
ving
Pro
cess
ing
and
Hom
e Te
xtile
P
ower
Gen
erati
on
Tot
al -
Com
pany
19 Nishat Chunian Limited
15. TRANSACTIONS WITH RELATED PARTIES
Subsidiary companiesSale of GoodsPurchase of GoodsCommon facili�es cost chargedDisbursement of loansRepayment of loansMark-up on short term loans
Associated companyInsurance premium paidInsurance claims receivedDona�on paid
Other related par�esPurchase of goodsSale of goods Contribu�on to employees' provident fund
Period end balances
Due to subsidiary companyDue from subsidiary companyShort term loan receivable from subsidiary companyMark-up receivable on loans made to subsidiary companyBank balances with related partyDue from related par�es other than subsidiary company
1,291,115,555 1,124,697,498
1,463,107,000 2,073,099,238
4,800,000 4,800,000
283,557,043 249,641,049 754,004,589 643,857,517
- 811,797,986
18,578,012 39,471,265
2,137,868 97,935,858
45,971,509 60,317,256 508,168,820 674,586,877
Un-audited Quarter EndedSeptember 30,
2018Rupees
Audited
June 30,2018
Rupees14,137,684
683,939,773
25,932,310 26,308,074
Year Ended
6,333,854 710,175 476,455,285 379,312,392
- 39,241
25,052,938 29,422,022 779,504 1,324,875
13,653,355 7,380,485
The related par�es comprise subsidiary companies, associated undertakings, other related companies, key management personnel and post employment benefit plan. The Company in the normal course of business carried out transac�ons with various related par�es. Details of transac�ons with related par�es, other than those which have been specifically disclosed elsewhere in these financial statements are as follows:
Un-audited Un-audited Quarter Ended Quarter EndedSeptember 30, September 30,
2018 2017Rupees Rupees
SELECTED NOTES TO ThE UNCONSOLIDaTED CONDENSED INTErIm fINaNCIaL INfOrmaTION (UN-aUDITED)
fOr qUarTEr ENDED SEpTEmbEr 30, 2018
20 Nishat Chunian Limited
SELECTED NOTES TO ThE UNCONSOLIDaTED CONDENSED INTErIm fINaNCIaL INfOrmaTION (UN-aUDITED)
fOr qUarTEr ENDED SEpTEmbEr 30, 2018
16. FINANCIAL RISK MANAGEMENT
17. CORRESPONDING FIGURES
18. DATE OF AUTHORIZATION FOR ISSUE
_________________ _______________________ __________ Chief Execu�ve Chief Financial Officer Director
In order to comply with the requirements of Internaonal Accounng Standard (IAS) 34 'Interim Financial Reporng', the unconsolidated condensed interim balance sheet and unconsolidated condensed interim statement of changes in equity have been compared with the balances of annual audited financial statements of preceding financial year, whereas the unconsolidated condensed interim profit and loss account, unconsolidated condensed interim statement of comprehensive income and unconsolidated condensed interim cashflow statement have been compared with the balances of comparable period of immediately preceding financial year.Corresponding figures have been rearranged / regrouped wherever necessary for the purpose of comparison. However, no significant rearrangements / regroupings have been made.
These unconsolidated condensed interim financial statements were approved by the Board of Directors and authorized for issue on October 29, 2018.
The Company's financial risk management objecves and polices are consistent with those disclosed in the preceding audited annual published financial statements of the Company for the year ended 30 June 2018.
21 Nishat Chunian Limited
NISHAT (CHUNIAN) LIMITED AND ITS SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION
FOR THE qUARTER ENDEDSEPTEMBER 30, 2018 (UN-AUDITED)
22 Nishat Chunian Limited
CONSOLIDaTED CONDENSED INTErIm STaTEmENT Of fINaNCIaL pOSITION
aS aT SEpTEmbEr 30, 2018
Un-audited AuditedSeptember 30, June 30,
Note 2018 2018Rupees Rupees
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized share capital 3,000,000,000 3,000,000,000
Issued, subscribed and paid-up share capital 2,402,215,560 2,402,215,560 Reserves 17,045,182,514 15,679,647,437
19,447,398,074 18,081,862,997 Non-controlling interest 6,415,736,597 5,976,634,360 Total equity 25,863,134,671 24,058,497,357
LIABILITIES
NON-CURRENT LIABILITIES
Long term financing 9,428,230,685 10,481,386,830 Deferred Revenue - 2,972,000
9,428,230,685 10,484,358,830 CURRENT LIABILITIES
Trade and other payables 4,688,003,190 3,178,485,746 Unclaimed Dividend 53,477,729 53,705,334 Accrued mark-up 584,341,290 570,404,272 Short term borrowings 25,298,912,663 25,510,180,650 Current por�on of long term financing 4,735,277,507 4,675,185,917
35,360,012,379 33,987,961,919 TOTAL LIABILITIES 44,788,243,064 44,472,320,749
CONTINGENCIES AND COMMITMENTS
TOTAL EQUITY AND LIABILITIES 70,651,377,735 68,530,818,106
- The annexed notes form an integral part of these consolidated condensed interim financial statements.
CHIEF EXECUTIVE __________________
Equity a�ributable to equity holders of the Holding Company
23 Nishat Chunian Limited
CONSOLIDaTED CONDENSED INTErIm STaTEmENT Of fINaNCIaL pOSITION
Un-audited AuditedSeptember 30, June 30,
Note 2018 2018Rupees Rupees
NON-CURRENT ASSETS
Fixed assets 28,074,263,540 28,359,395,549 Intangible assets 17,702,772 19,714,770 Long term loans to employees 17,648,817 17,897,227 Long term security deposits 25,831,440 23,752,440 Deferred income tax asset 8,793,556 8,793,557
28,144,240,125 28,429,553,543
CURRENT ASSETS
Stores, spare parts and loose tools 1,445,650,653 1,364,302,917 Stock-in-trade 14,128,465,451 12,756,423,851 Trade debts 19,604,877,176 19,204,333,280 Loans and advances 2,160,666,045 1,619,392,876 Short term deposits and prepayments 58,975,200 30,497,543 Other receivables 4,881,122,627 4,841,867,825 Short term investments 31,242,627 32,179,691 Cash and bank balances 196,137,831 252,266,580
42,507,137,610 40,101,264,563
70,651,377,735 68,530,818,106
________________________CHIEF FINANCIAL OFFICER
____________ DIRECTOR
ASSETS
TOTAL ASSETS
aS aT SEpTEmbEr 30, 2018
24 Nishat Chunian Limited
CONSOLIDaTED CONDENSED INTErIm STaTEmENT Of prOfIT Or LOSS (UN-aUDITED)
fOr ThE qUarTEr ENDED SEpTEmbEr 30, 2018
September 30, September 30,2018 2017
Rupees Rupees
SALES 14,819,049,634 13,330,345,558 COST OF SALES (11,913,102,694) (11,510,403,563) GROSS PROFIT 2,905,946,940 1,819,941,995
DISTRIBUTION COST (283,238,072) (246,485,692) ADMINISTRATIVE EXPENSES (120,946,981) (105,563,837) OTHER OPERATING EXPENSES (50,079,507) (10,326,127)
(454,264,560) (362,375,656)
2,451,682,380 1,457,566,339
OTHER OPERATING INCOME 182,803,360 27,881,408
PROFIT FROM OPERATIONS 2,634,485,740 1,485,447,747
FINANCE COST (735,747,806) (655,105,677)
PROFIT BEFORE TAXATION 1,898,737,934 830,342,070
TAXATION (94,390,394) (79,347,117)
PROFIT AFTER TAXATION 1,804,347,540 750,994,953
PROFIT ATTRIBUTABLE TO:
EQUITY HOLDERS OF THE HOLDING COMPANY 1,365,245,303 312,641,440 NON-CONTROLLING INTEREST 439,102,237 438,353,513
1,804,347,540 750,994,953
EARNINGS PER SHARE - BASIC & DILUTED 5.68 1.30
The annexed notes form an integral part of these consolidated condensed interim financial statements.
__________________ _________________________ ______________ CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER DIRECTOR
Quarter Ended
25 Nishat Chunian Limited
September 30, September 30,2018 2017
Rupees Rupees
PROFIT AFTER TAXATION 1,804,347,540 750,994,953
OTHER COMPREHENSIVE INCOME 289,774 73,028
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,804,637,314 751,067,981
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
EQUITY HOLDERS OF THE HOLDING COMPANY 1,365,535,077 312,714,468 NON-CONTROLLING INTEREST 439,102,237 438,353,513
1,804,637,314 751,067,981 -
The annexed notes form an integral part of these consolidated condensed interim financial statements.
__________________ _________________________ ____________ CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER DIRECTOR
Quarter Ended
CONSOLIDaTED CONDENSED INTErIm STaTEmENT Of COmprEhENSIvE INCOmE (UN-aUDITED)
fOr ThE qUarTEr ENDED SEpTEmbEr 30, 2018
26 Nishat Chunian Limited
CONSOLIDaTED CONDENSED INTErIm STaTEmENT Of CaSh fLOwS (UN-aUDITED)
fOr ThE qUarTEr ENDED SEpTEmbEr 30, 2018
September 30, September 30,Note 2018 2017
Rupees Rupees
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from opera�ons 6 2,245,171,401 2,148,269,285 Net increase in long term security deposits (2,079,000) - Finance cost paid (721,810,788) (703,610,539) Income tax paid (83,071,170) (50,964,498) Net decrease / (increase) in long term loans to employees 248,410 (1,622,639) Net cash generated from opera�ng ac�vi�es 1,438,458,853 1,392,071,609
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure on property, plant and equipment (292,734,255) (340,601,645) Capital expenditure on intangible assets - (700,049) Proceeds from disposal of opera�ng fixed assets 840,118 2,484,434 Short term investments made 937,064 951,045 Profit on bank deposits received 639,347 7,984,539
Net cash used in inves�ng ac�vi�es (290,317,726) (329,881,676)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long term financing 75,000,000 2,076,300,000 Repayment of long term financing (1,068,064,555) (1,252,887,956) Short term borrowings - net (211,267,987) (2,023,771,247) Dividend paid to non-controlling interest - (136,951) Dividend paid (227,108) (1,400)
Net cash used in financing ac�vi�es (1,204,559,650) (1,200,497,554)
Net decrease in cash and cash equivalents (56,418,523) (138,307,621)
Impact of exchange transla�on 289,774 73,028
Cash and cash equivalents at the beginning of the year 252,266,580 247,054,434
Cash and cash equivalents at the end of the year 196,137,831 108,819,841
The annexed notes form an integral part of these consolidated condensed interim financial statements.
__________________ _________________________ _______________ CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER DIRECTOR
Quarter Ended
27 Nishat Chunian Limited
fOr ThE qUarTEr ENDED SEpTEmbEr 30, 2018
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CONSOLIDaTED CONDENSED INTErIm STaTEmENT Of ChaNGES IN EqUITy (UN-aUDITED)
28 Nishat Chunian Limited
SELECTED NOTES TO ThE CONSOLIDaTED CONDENSED INTErIm fINaNCIaL INfOrmaTION (UN-aUDITED)
fOr ThE qUarTEr ENDED SEpTEmbEr 30, 2018
1.
The Group consists of:
Holding Company - Nishat (Chunian) Limited
Subsidiary Companies - Nishat Chunian Power Limited- Nishat Chunian USA Inc.- NC Electric Company Limited- NC Entertainment (Private) Limited
Nishat (Chunian) Limited
Nishat Chunian Power Limited
Nishat Chunian USA Incorpora�on
2.
Nishat Chunian Power Limited (“the Subsidiary Company”) is a public limited Company incorporated in Pakistan under the repealedCompanies Ordinance, 1984 (Now Companies Act, 2017) and listed on the Pakistan Stock Exchange (Guarantee) Limited. The principalac�vity of the Subsidiary Company is to build, own, operate and maintain a fuel fired power sta�on having gross capacity of 200 MW andnet capacity of 195.722 MW at Jamber Kalan, Tehsil Pa�oki, District Kasur, Punjab, Pakistan. Its registered office is situated at 31-Q, Gulberg II, Lahore. The Subsidiary Company has commenced commercial opera�ons from 21 July 2010 and the twenty five years term of the PowerPurchase Agreement (PPA) with Na�onal Transmission and Despatch Company Limited starts from this date.
NC Electric Company Limited
NC Electric Company Limited is a public limited company incporporated in Pakistan on 18 April 2014 under the repealed CompaniesOrdinance, 1984 (Now Companies Act, 2017). The Company is a wholly owned subsidiary of Nishat (Chunian) Limited. It's registered officeis situated at 31- Q, Gulberg II, Lahore. The principal objec�ve of NC Electric Company Limited is to develop, own and operate a 46 MW and8 TPH process steam coal fired electric power genera�on project at 49 KM, Multan Road, near Bhai Phero, District Kasur. NC ElectricCompany Limited commeneced commercial opera�ons from 01 May 2017.
Nishat Chunian USA Inc. is a foreign subsidiary incorporated under the Business Corpora�on Laws of the State of New York. The registeredoffice of Nishat Chunian USA Inc. is situated at 230 Fi¦h Avenue, Suite 1406, New York, NY 10001, USA. The principal business of the NishatChunian USA Inc. is to import home tex�le products and distribute to local retailers.
BASIS OF PREPARATION
This consolidated condensed interim financial informa�on is un-audited and is being submi�ed to shareholders as required by direc�vesissued under the Companies Act, 2017. These consolidated condensed interim financial statements of the Group for the quarter ended 30September 2018 have been prepared in accordance with the requirements of the Interna�onal Accoun�ng Standard (IAS) 34 "InterimFinancial Repor�ng" and provisions of and direc�ves issued under the Companies Act, 2017. In case where requirements differ, theprovisions of or direc�ves issued under the Companies Act, 2017 have been followed. This consolidated condensed interim financialinforma�on should be read in conjunc�on with the audited annual published financial statements of the Group for the year ended 30 June 2018.
NC Entertainment (Private) Limited
NC Entertainment (Private) Limited is registered under the repealed Companies Ordinance, 1984 (Now Companies Act, 2017) as a company limited by shares on 31 January 2014. The registered office of NC Entertainment (Private) Limited is situated at 31-Q, Gulberg II, Lahore. The main objec�ve of NC Entertainment (Private) Limited is to construct and/or operate cinemas, theatres and studios.
GROUP INFORMATION
Nishat (Chunian) Limited (“the Holding Company”) is a public limited Company incorporated in Pakistan under the repealed CompaniesOrdinance, 1984 (Now Companies Act, 2017) and is listed on the Pakistan Stock Exchange Limited. It's registered office is situated at 31-Q,Gulberg II, Lahore. The Company is engaged in business of spinning, weaving, dyeing, prin�ng, s�tching, processing, doubling, sizing,buying, selling and otherwise dealing in yarn, fabrics and made-ups made from raw co�on, synthe�c fibre, cloth and to generate,accumulate, distribute, supply and sell electricity.
29 Nishat Chunian Limited
SELECTED NOTES TO ThE CONSOLIDaTED CONDENSED INTErIm fINaNCIaL INfOrmaTION (UN-aUDITED)
fOr ThE qUarTEr ENDED SEpTEmbEr 30, 2018
3.
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
5. CONTINGENCIES AND COMMITMENTS
Holding CompanyCon�ngencies
i)
ii)
iii)
Commitmentsi)ii)
Subsidiary Company
Con�ngencies
i)
ii)
Post dated cheques have been issued to custom authori�es in respect of du�es amoun�ng to Rupees 3464.639 million (30 June 2018:Rupees 3,234.598 million) on imported material availed on the basis of consump�on and export plans. In the event the documents ofexports are not provided on due dates, cheque issued as security shall be encashable.
The accoun�ng policies and methods of computa�ons adopted for the prepara�on of this consolidated condensed interim financialinforma�on are the same as applied in the prepara�on of the preceding audited annual published financial statements of the Group forthe year ended 30 June 2018.
The prepara�on of this consolidated condensed interim financial informa�on in conformity with the approved accoun�ng standardsrequires the use of certain cri�cal accoun�ng es�mates. It also requires the management to exercise its judgment in the process ofapplying the Group's accoun�ng policies. Es�mates and judgments are con�nually evaluated and are based on historical experience andother factors, including expecta�ons of future events that are believed to be reasonable under the circumstances.
The Company has issued cross corporate guarantees of Rupees 9.55 billion (30 June 2018: Rupees 9.25 billion) on behalf of NC ElectricCompany Limited - wholly owned subsidiary company to secure the obliga�ons of subsidiary company towards its lenders.
ACCOUNTING POLICIES
Guarantees of Rupees 630.454 million (30 June 2018: Rupees 609.109 million) are given by the banks of the Company to Sui Northern GasPipelines Limited against gas connec�ons, Shell Pakistan Limited against purchase of furnace oil, Lahore Electric Supply Company Limitedagainst electricity connec�on, Director Excise and Taxa�on, Karachi against infrastructure cess, Chairman Punjab Revenue Authority,Lahore against infrastructure cess, Director Pakistan Central Co�on Commi�ee against co�on cess, and Nazir, Honourable High Court,Sindh against the no�fica�on in accordance with sec�on 8 of OGRA Ordinance 2002, regarding system gas tariff on industrial and cap�veunits.
During prepara�on of this consolidated condensed interim financial informa�on, the significant judgments made by the management inapplying the Group’s accoun�ng policies and the key sources of es�ma�on and uncertainty were the same as those that applied in thepreceding audited annual published financial statements of the Group for the year ended 30 June 2018.
There is no significant change in the status of con�ngencies as disclosed in the preceding audited annual financial statements of theCompany for the year ended 30 June 2018 except for the following:
Le�ers of credit other than for capital expenditure are Rupees 999.055 million (30 June 2018: Rupees 1,265.473 million). Outstanding foreign currency forward contracts of Rupees 135.204 million (30 June 2018: Rupees 418.294 million).
There are no significant changes in con�ngencies from the preceding annual published financial statements of the company for the year ended June 30, 2018, except for the following:During the financial year 2014, a sales tax demand of Rs 1,161.548 million was raised against the company through order dated November 28, 2013, by the Assistant Commissioner Inland Revenue (‘ACIR’) by disallowing input sales tax for the tax periods from July 2010 to June 2012. Such amount was disallowed on the grounds that the revenue derived by the company on account of ‘capacity purchase price’ was against a non-taxable supply and thus, the en�re amount of input sales tax claimed by the company was required to be appor�oned with only the input sales tax a�ributable to other revenue stream i.e. ‘energy purchase price’ admissible to the company. Against the aforesaid order, the company preferred an appeal dated December 10, 2013 before the Commissioner Inland Revenue (Appeals) (‘CIR(A)’) who vacated the ACIR’s order on the issue regarding appor�onment of input sales tax. However, the CIR(A) did not adjudicate upon the company’s other grounds of appeal. Consequently, the company preferred an appeal on March 17, 2014 before the Appellate Tribunal Inland Revenue (‘ATIR’) on the issues not adjudicated upon by the CIR(A) and the Department also preferred a second appeal on May 08, 2014 before the ATIR against the CIR(A)’s order. The ATIR vide its order dated 11-09-2018 accepted the company’s stance and decided the case in the favor of the company.During the financial year 2018, another amendment order dated June 13, 2018 was issued by the Addi�onal Commissioner Inland Revenue under sec�on 122 of the ITO for Tax Year 2012 and subsequently, rec�fica�on order dated June 27, 2018 under sec�on 221 of the ITO was issued whereby income tax of Rs 50.063 million was levied mainly comprising minimum tax on capacity sales. The company had filed an appeal on July 26, 2018 before the CIR(A) against the aforesaid orders and subsequently the CIR(A) decided the case in the favor of the company by dele�ng the demand through its order dated 12-09-2018.
30 Nishat Chunian Limited
SELECTED NOTES TO ThE CONSOLIDaTED CONDENSED INTErIm fINaNCIaL INfOrmaTION (UN-aUDITED)
fOr ThE NINE mONThS ENDED SEpTEmbEr 30, 2018
Un-audited AuditedQuarter ended Year endedSeptember 30, June 30,
2018 2018Commitments Rupees Rupees
215,155,123 144,073,101
Un-audited Un-audited Quarter ended Quarter endedSeptember 30, September 30,
2018 2017Rupees Rupees
6. CASH (USED IN) / GENERATED FROM OPERATIONS
Profit before taxa�on 1,898,737,934 830,342,070 Adjustment for non cash charges and other items: Provision for employee re�rement 2,047,341 1,838,490 Deprecia�on on opera�ng fixed assets 578,511,956 590,883,211 Amor�za�on on intangible assets 1,218,134 2,377,776 (Gain) / loss on sale of opera�ng fixed assets (194,426) (1,217,985) Interest on bank deposits (639,347) (7,984,539) Unrealised gain on deriva�ve financial instrument - - Finance costs 735,747,806 655,105,678
3,215,429,398 2,071,344,701
(Increase) / decrease in current assets- Stores, spare parts and loose tools (81,347,736) (180,156,084) - Stock in trade (1,372,041,600) (116,800,449) - Trade debts (400,543,896) (1,073,600,631) - Loans and advances (541,273,169) (7,001,176) - Short term deposits and prepayments (28,477,657) (19,043,263) - Other receivables (50,574,026) 503,205,083 Increase in current liabili�es - Trade and other payables 1,504,000,087 970,321,104
(970,257,997) 76,924,584 Net cash generated from opera�ons 2,245,171,401 2,148,269,285
7.
Cash flows from opera�ng ac�vi�es before working capital changes
TRANSACTIONS WITH RELATED PARTIES
The related par�es comprise of associated undertakings, other related companies, key management personnel and post employmentbenefit plan. The Group in the normal course of business carried out transac�ons with various related par�es. Details of transac�ons withrelated par�es, other than those which have been specifically disclosed elsewhere in these consolidated financial statements are asfollows:
Le�er of credit other than for capital expenditure:
31 Nishat Chunian Limited
Un-audited AuditedQuarter ended Year endedSeptember 30, June 30,
2018 2018Commitments Rupees Rupees
215,155,123 144,073,101
Un-audited Un-audited Quarter ended Quarter endedSeptember 30, September 30,
2018 2017Rupees Rupees
6. CASH (USED IN) / GENERATED FROM OPERATIONS
Profit before taxa�on 1,898,737,934 830,342,070 Adjustment for non cash charges and other items: Provision for employee re�rement 2,047,341 1,838,490 Deprecia�on on opera�ng fixed assets 578,511,956 590,883,211 Amor�za�on on intangible assets 1,218,134 2,377,776 (Gain) / loss on sale of opera�ng fixed assets (194,426) (1,217,985) Interest on bank deposits (639,347) (7,984,539) Unrealised gain on deriva�ve financial instrument - - Finance costs 735,747,806 655,105,678
3,215,429,398 2,071,344,701
(Increase) / decrease in current assets- Stores, spare parts and loose tools (81,347,736) (180,156,084) - Stock in trade (1,372,041,600) (116,800,449) - Trade debts (400,543,896) (1,073,600,631) - Loans and advances (541,273,169) (7,001,176) - Short term deposits and prepayments (28,477,657) (19,043,263) - Other receivables (50,574,026) 503,205,083 Increase in current liabili�es - Trade and other payables 1,504,000,087 970,321,104
(970,257,997) 76,924,584 Net cash generated from opera�ons 2,245,171,401 2,148,269,285
7.
Cash flows from opera�ng ac�vi�es before working capital changes
TRANSACTIONS WITH RELATED PARTIES
The related par�es comprise of associated undertakings, other related companies, key management personnel and post employmentbenefit plan. The Group in the normal course of business carried out transac�ons with various related par�es. Details of transac�ons withrelated par�es, other than those which have been specifically disclosed elsewhere in these consolidated financial statements are asfollows:
Le�er of credit other than for capital expenditure:
SELECTED NOTES TO ThE CONSOLIDaTED CONDENSED INTErIm fINaNCIaL INfOrmaTION (UN-aUDITED)
fOr ThE NINE mONThS ENDED SEpTEmbEr 30, 2018
Un-audited Un-audited Quarter ended Quarter endedSeptember 30, September 30,
2018 2017Rupees Rupees
Associated companyInsurance premium paid 26,666,250 80,873,275 Insurance claims received 779,504 1,324,875 Dona�on paid 1,167,000 -
Other related par�esPurchase of goods 6,333,854 710,175 Sale of goods 476,455,285 379,312,392 Contribu�on to employees' provident fund 27,979,523 28,146,074 Remunera�on paid to key management personnel 53,526,031 -
Un-audited Audited Quarter ended Year endedSeptember 30, June 30,
2018 2018Rupees Rupees
Period end balances
Bank balances with related party 2,137,868 18,975,894 Due from related par�es 97,935,858 39,471,265 Due to related par�es - 926,000
8. CORRESPONDING FIGURES
9. DATE OF AUTHORIZATION FOR ISSUE
________________________ ____________ Chief Execu�ve Chief Financial Officer Director
__________________
Corresponding figures have been rearranged / regrouped wherever necessary for the purpose of comparison. However, no significantrearrangements / regroupings have been made.
These consolidated condensed interim financial statements were approved and authorized for issue on October 29, 2018 by the Boardof Directors.
Un-audited Un-audited Quarter ended Quarter endedSeptember 30, September 30,
2018 2017Rupees Rupees
Associated companyInsurance premium paid 26,666,250 80,873,275 Insurance claims received 779,504 1,324,875 Dona�on paid 1,167,000 -
Other related par�esPurchase of goods 6,333,854 710,175 Sale of goods 476,455,285 379,312,392 Contribu�on to employees' provident fund 27,979,523 28,146,074 Remunera�on paid to key management personnel 53,526,031 -
Un-audited Audited Quarter ended Year endedSeptember 30, June 30,
2018 2018Rupees Rupees
Period end balances
Bank balances with related party 2,137,868 18,975,894 Due from related par�es 97,935,858 39,471,265 Due to related par�es - 926,000
8. CORRESPONDING FIGURES
9. DATE OF AUTHORIZATION FOR ISSUE
________________________ ____________ Chief Execu�ve Chief Financial Officer Director
__________________
Corresponding figures have been rearranged / regrouped wherever necessary for the purpose of comparison. However, no significantrearrangements / regroupings have been made.
These consolidated condensed interim financial statements were approved and authorized for issue on October 29, 2018 by the Boardof Directors.
32 Nishat Chunian Limited
INVESTORS’ EDUCATIONIn pursuance of SRO 924(1)/2015 dated September 9th, 2015 issued by the Securities and Exchange Commission of
Pakistan (SECP), the following informational message has been reproduced to educate investors:
33 Nishat Chunian Limited
34 Nishat Chunian Limited
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