· bank al-habib ltd. faysal bank ltd. habib bank ltd. mcb bank ltd. meezan bank ltd. national...

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Main Shahra-e-Faisal, Karachi - Pakistan Tel: +92-21-35657000 Fax: +92-21-35631523 E-mail: [email protected] Web: www.rphcc.com www.phdl.com.pk Owners & Operators of PAKISTAN HOTELS DEVELOPERS LTD. Condensed Interim Financial Information Six Mont Period Ended December 31, 201 hs 6 (Un-audited)

Transcript of  · bank al-habib ltd. faysal bank ltd. habib bank ltd. mcb bank ltd. meezan bank ltd. national...

Main Shahra-e-Faisal,

Karachi - Pakistan

Tel: +92-21-35657000

Fax: +92-21-35631523

E-mail: [email protected]

Web: www.rphcc.com

www.phdl.com.pk

Owners & Operators of

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Condensed Interim

Financial Information

Six Mont Period Ended

December 31, 201

hs

6

(Un-audited)

Vi s i o n / M i s s i o n

It is our cherished goal to be the Industry leader in hotel business byestablishing a complete, unique, distinctive and truly a five star deluxe

hotel complex.

To achieve the above objective and to provide the highest level ofsatisfaction to our valued customers, we are constantly engaged andworking with a missionary zeal to bring necessary improvements in ourexisting facilities and to excel in offering efficient and quality servicesto them.

We are also committed to maintain the highest level of Internationalhotel standards, which will add to the glory and prestige of the Country

and promote tourism.

1

Pakistan Hotels Developers Ltd.

2

COMPANY INFORMATION

Six-Months Ended December 2015

BOARD OF DIRECTORS:

MR. MANSOOR F.BAWEJA

Chairman

MR. MUZAFFAR F. BAWEJA

Chief Executive Officer

COMPANY SECRETARY:

MR. FAHAD IQBAL KHANNon-executive Directors:

MDirectorMR. MOHSIN BAWEJA

MR. ZAHEER BAWEJA

R. S.MAHMOOD BAWEJA

DirectorMR. MASROOR F. BAWEJADirector

DirectorMR. NAVED ALAM BAWEJADirector

Executive Directors:

MR. ZUBAIR BAWEJAManaging Director

Independent Director:

MR. M.A. MAJEED

HR & R COMMITTEE:

MR. MASROOR F. BAWEJAChairman

MR. ZAHEER BAWEJAMember

MR.NAVED ALAM BAWEJAMember

AUDIT COMMITTEE:

MR. M.A. MAJEEDChairman

MR. MOHSIN BAWEJA

Member

Member

BANKERS:

BANK AL-HABIB LTD.FAYSAL BANK LTD.HABIB BANK LTD.MCB BANK LTD.MEEZAN BANK LTD.NATIONAL BANK OF PAKISTANSILK BANK LTD.SUMMIT BANK LTD.

AUDITORS:

TANWIR ARIF & CO.Chartered Accountants

LEGAL ADVISOR:

SOFIA SAEED SHAH

REGISTERED OFFICE:

REGENT PLAZA HOTEL,MEZZANINE FLOOR195/2, SHAHRAH-E-FAISAL,KARACHI.

CHIEF FINANCIAL OFFICER:

SYED HASEEN ANWER

INDEPENDENT SHARE REGISTRAR

M/S. TECHNOLOGY TRADE (PVT) LTD.DAGIA HOUSE, 241-C, BLOCK-2,P.E.C.H.S.,OFF: SHAHRAH-E-QUAIDEEN,KARACHI

AL BARAKA BANK (PAKISTAN) LTD.

UNITED BANK LTD.

MR. S. MAHMOOD BAWEJA

COMPANY INFORMATION

Six-Months Ended December 2016

3

MANSOOR F. BAWEJAChairman

Karachi: February , 20123 7

CHAIRMAN’S REVIEW

The six month period under review witnessed a sad incident in the history of

your company. On 5th December 2016, a serious fire was broke out in late night.

In this tragic incident precious lives of 12 persons including one of the staff

member were lost beside several were injured. We want to convey heartiest

condolence to the families of all those who lost their lives. May Almighty Allah

Bless all the departed souls and place them in Jannatul Firdous, Ameen. We

also pray for the injured people for their early recovery.

It is to mention that management with the help of related authorities taken

immediate steps to handle the situation arisen as a result of fire. More then

four hundred guests and hotel staff were successfully evacuated. Every possible

efforts were made to provide medical facilities to injured persons. Besides

families of departed souls were also taken care of. However, the incident cause

severe damage to various service areas. As a result the business operations were

suspended and steps were initiated to revamp the facilities.

Despite the great shock and loss, we are presenting the financial statement well

in time which shows our determination and strength to overcome on the situation

and success in our rehabilitation work.

Alham-do-lillah we have started with soft opening banqueting & health club

facilities for valuable guests.

During the six months period under review, excellent performance shown by

the management and earned a pre-tax profit of Rs. 90 million although one month

revenue (December-2016) lost due to fire incident.

Mr. Naved Alam Baweja - Director on Board have given resignation from the

Directorship and his resignation accepted by the Board on 12th January, 2017

and Board appreciated the services rendered during his tenure.

On behalf of the Board of Directors, we thankful to our Shareholders, Clients,

Banks, Vendors for their support and stand with us in difficult time.

Pakistan Hotels Developers Ltd.

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Six-Months Ended December 2016

65

MUZAFFAR F. BAWEJAChief Executive Officer

Karachi: February , 20123 7

DIRECTORS’ REPORT

The Board of Directors of Pakistan Hotels Developers Limited (PHDL) have

honor to present the performance of the Company for first half of the financial year

2016-17 along with review report of the statutory Auditor.

Pakistan Hotels Developers Ltd.

Despites of shut down of our operation in almost whole December 2016,gross profit increasedby 1.3%. However sales and services were decreased by 10%. Net profit before taxation wasalso increased by Rs. 3,553 thousand which was 4% increased as compared to correspondingperiod of previous year.

Directors have not declared any interim dividend for the quarter ended 31st December, 2016

The Board of Directors wish to express their appreciation to the entire team of Pakistan

Hotels Developers Limited, the esteemed guests, the valuable shareholders as well as all the

other stakeholders for their confidence and support in such difficult days.

Financial results of six months period are summarized as follows

For the six-months period ended31st December

Sales and services-net

Gross Profit

Profit before Taxation

Profit after Taxation

Earning Per Share (Rupees)

2016 2015(Rupees in '000)

321,494

175,491

89,969

64,904

3.61

The Directors regret to report that a serious fire broke out on 5th December, 2016

and damaged several areas of the Hotel. Most of the guest and employees were

safely evacuated. But twelve people including one of the Hotel employee had lost

their precious lives and several were injured. Hotel operation had been temporally

suspended but Management are confident that all the operations will resume shortly

We express profound grief and sorrow for the loss of valuable lives and extend

heartfelt condolence to bereaved families and sympathies to the injured.

355,842

173,136

86,416

60,344

3.35

For and on behalf of the Board of Directors

AUDITOR'S REVIEW REPORT TO THE MEMBERS

TANWIR ARIFTANWIR ARIF & CO.Chartered Accountants.

7

We conducted our review in accordance with International Standard onReview Engagements 2410, “Review of Interim Financial InformationPerformed by the Independent Auditors of the Entity”. A review of interimfinancial information consists of making inquiries, primarily of personsresponsible for financial and accounting matters, and applying analyticaland other review procedures. A review is substantially less in scope than anaudit conducted in accordance with International Standards on Auditingand consequently does not enable us to obtain assurance that we wouldbecome aware of all significant matters that might be identified in an audit.Accordingly, we do not express an audit opinion.

We have reviewed the accompanying condensed balance sheet ofas at December 31, 201 and the

related condensed interim profit and loss account, condensed interim statementof comprehensive income, condensed interim cash flow statement, condensedinterim statement of changes in equity and notes to the accounts for the six-months period then ended (here-in-after referred to as the “interim financialinformation”) Management is responsible for the preparation and presentationof this interim financial information in accordance with approved accountingstandards as applicable in Pakistan for interim financial reporting Ourresponsibility is to express a conclusion on this interim financial informationbased on our review. The figures of the condensed statement of comprehensiveincome for the quarters ended December 31, 201 and quarter ended December31, 201 have not been reviewed as we are required to review only the cumulativefigures for six months period ended December 31, 201 .

Pakistan Hotels Developers Limited 6

.

.

65

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Introduction

Scope of Review

Based on our review, nothing has come to our attention that causes us to believethat the accompanying interim financial information is not prepared, in allmaterial respects, in accordance with approved accounting standards asapplicable in Pakistan for interim financial reporting.

Conclusion

Haydrabad: February 23, 2017

We draw attention to Note No. 8 to the financial information which describes theserious breakout of fire in the hotel. Our opinion is not qualified in respect of this matter.

Pakistan Hotels Developers Ltd.

LEFTBLA

NK

"The annexed notes form an integral part of this statement""See Auditors’ Review Report"

Pakistan Hotels Developers Ltd.

CONDENSED INTERIM BALANCE SHEETAS AT DECEMBER 31, 2016

DEC. 2016 JUN. 2016CAPITAL AND LIABILITIES:

Share capital Authorized

30,000,000 Ordinary Sharesof Rs. 10/= each

Issued, subscribed & paid-up18,000,000 Ordinary Sharesof Rs. 10/= eachUnappropriated Profit

Surplus on revaluation of fixed assets

Non current liabilities

Current liabilities

Current maturity

Creditors, accrued and other liabilities

300,000

180,000

146,888

326,888

4,434,111

8,067

78,068

86,135

5,116,722

300,000

180,000

132,774

312,774

4,423,129

6,186

85,842

92,028

5,089,359

Security deposits 5,8224,280

(Rupees in '000)

13,51411,831

Contingencies and commitments

9Karachi: February 23, 2017

Un-audited Audited

Liabilities against assets subjectto finance lease

245,317Deferred taxation 250,252

Six-Months Ended December 2016

ASSETS:

Long term deposits and advances

Current assets:

Stores and spares

Stock in trade - food and beverages

Trade debts un-secured considered good

Advances, prepayments and other receivables

5,310

2,519

1,959

91,611

155,462

10,580

5,116,7225,089,359

2,591

177

61,827

147,698

DEC. 2016 JUNE. 2016

(Rupees in '000)

Fixed assets 4,955,9504,931,081

15,74441,769

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Cash and bank balances 43,62941,334

MUZAFFAR F. BAWEJAChief Executive Officer

Un-audited Audited

Non-current assets

ManagingDirectorZUBAIR BAWEJA

"The annexed notes form an integral part of this account”"See Auditors’ Review Report"

Pakistan Hotels Developers Ltd.

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Chief Executive Officer

Karachi: February 23, 2017

CONDENSED INTERIM PROFIT AND LOSS ACCOUNTFOR THE SIX-MONTHS PERIOD ENDED DECEMBER 31, 2016

Administrative, selling andgeneral expenses

Other operating income / (Loss)

Financial charges

Net profit before taxation

Operating Profit

- Basic (Rupees)

Net Profit after taxation

Sales tax, discount and salesreturn

Sales and services-net

Gross Profit

Taxation

Current

Prior year

Deferred

(Rupees in '000)

Operating expenses

Earning per share

- Diluted (Rupees)

Turnover

Cost of sales and srevices

Three months endedDecember 31

2016 2015

Six months endedDecember 31

2016 2015

(39,744)

49

38,683

38,315

1.54

27,783

(64,091)

(18,373)

142,469

(10,532)

(13,000)

2,468

160,842

78,378

1.54

(368)

(84,961)

185

90,715

89,969

3.61

64,904

(146,003)

(25,065)

(30,000)

4,935

(42,156)

321,494

363,650

175,491

3.61

(746)

ManagingDirectorZUBAIR BAWEJAMUZAFFAR F. BAWEJA

(87,806)

1,098

86,428

86,416

3.35

60,344

(182,706)

(26,072)

(27,500)

4,820

(50,325)

355,842

406,167

173,136

3.35

(12)

(3,392)

(39,198)

91

72,111

72,099

2.69

48,438

(88,450)

(27,876)

199,668

(23,661)

(22,920)

2,651

(3,392)

227,544

111,218

2.69

(12)

12Karachi: February 23, 2017

MUZAFFAR F. BAWEJAChief Executive Officer

Six-Months Ended December 2016

Net profit after taxation 48,438 60,34464,90427,783

(Rupees in '000)

December 31,

2016

THREE-MONTHS ENDED

2015 2016

SIX-MONTHS ENDED

2015

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOMEFOR THE SIX -MONTHS PERIOD ENDED DECEMBER 31, 2016

Total comprehensive income 27,783

December 31,

48,438 60,34464,904

"The annexed notes form an integral part of this statement""See Auditors’ Review Report"

ManagingDirectorZUBAIR BAWEJA

CONDENSED INTERIM CASH FLOW STATEMENTFOR THE SIX-MONTHS PERIOD ENDED DECEMBER 31, 2016

Cash flow from operating activities

Net profit before taxationAdjustments for non cash items and other itemsDepreciation

Financial charges in lease assets

(Increase)/decrease in operating assets

Stores and spares

Trade debts

Advances, prepayments & other receivables

Increase/(decrease) in operating liabilities

Creditors and accrued liabilities

Income tax paid

Acquisition of fixed assets

Cash flows from financing activities:

Dividends Paid

Net Increase/(decrease) in cash and cash equivalent

Cash and cash equivalent at July 01

Cash and cash equivalent at December 31

2016 2015

Stock in trade - Food and Beverages

Net cash from investing activities

89,969

25,849

26,595

116,564

(72)

1,78229,784

10,469

127,033

104,807(5,000)

99,807

(6,250)

(3,573)

(95,852)

(2,295)43,629

41,334

(21,025)

Long term advances and deposits

(Rupees in ‘000)Notes

(22,226)

Cash generated from operations

Net cash used in financing activities

Cash flows from investing activities

(980)

(90,000)

09

MUZAFFAR F. BAWEJAChief Executive Officer

Karachi: February 23, 2017 13

Pakistan Hotels Developers Ltd.

"The annexed notes form an integral part of this statement""See Auditors’ Review Report"

Long term deposits

Finance lease net of rentals (2,279)

86,416

23,465

23,477

109,893

155

153

(39,591)

(37,868)

72,025

63,814(9,423)

54,391

(27,862)

3,685

(66,763)

(40,234)89,121

48,887

1,415

(8,211)

(27,862)

(72,000)

746

(5,270)

ManagingDirectorZUBAIR BAWEJA

(Rupees in ‘000)Notes

Pakistan Hotels Developers Ltd.

12

1,552

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITYFOR THE SIX-MONTHS PERIOD ENDED DECEMBER 31, 2016

14

Balance as at June 30, 2015

Transferred from surplus on revaluationof fixed assets to accumulated profit

Paid cash dividend (final) - 2015

Balance as at June 30, 2016

Balance as at December 31, 2016

180,000 172,543 352,543

(72,000) (72,000)

ShareCapital

Unappro-priated profit Total

(Rupees in '000)

180,000

180,000

146,888

10,982

132,774

326,888

10,982

312,774

10,242

Transferred from surplus onrevaluation of fixed assets toaccumulated profit.

64,904 64,904Total comprehensive income for thesix-months ended December 31, 2016

Paid cash dividend (final)- 2016 (90,000) (90,000)

ManagingDirectorZUBAIR BAWEJAMUZAFFAR F. BAWEJA

Chief Executive Officer

Karachi: February 23, 2017

Six-Months Ended December 2016

"The annexed notes form an integral part of this statement""See Auditors’ Review Report"

Total comprehensive income for thesix-months ended December 31, 2015

60,344 60,344

Balance as at December 31, 2015 180,000 171,129 351,129

10,242

15

NOTES TO INTERIM FINANCIAL INFORMATIONFOR THE SIX-MONTHS PERIOD ENDED DECEMBER 31, 2016

1) Pakistan Hotels Developers Limited was incorporated and domiciled in 1979 at Karachi,

Pakistan under the Companies Act, 1913 (now Companies Ordinance, 1984) as a private

limited company and converted into public limited company in 1981. The company is

listed with Pakistan Stock Exchange . The registered office of the company is situated

at 195/2, Shahrah-e-Fsisal,Karachi. The company is principally engaged in hotel business

and owns and operates a Five Star Hotel known as Regent Plaza Hotel and Convention

2) This condensed interim financial report of the company for the six months period ended

December 31,2016 has been prepared in accordance with the requirements of the International

Accounting Standard 34 Interim Financial Reporting and provisions of the 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.

3) These interim condensed financial statements and limited scope review report by the statutory

auditors are being circulated to shareholders as required under Section 245 of the Companies

Ordinance 1984 and Stock Exchange Listing Regulations.

4) The comparative balance sheet presented in the interim financial information has been extracted

from the audited financial statements of the Company for the year ended June 30, 2016. The

comparative condensed interim profit and loss account, condensed interim statement of comprehensive

income, condensed interim statement of changes in equity and condensed interim cash flow

statement are for the three/six-months period ended December 31, 2015.

5) The accounting policies and the methods of computation adopted in the preparation of this condensed

interim financial report are the same as those applied in the preparation of the financial statements

6)

7)

Pakistan Hotels Developers Ltd.

for the year ended June 30, 2016.

Additions to the fixed assets during the period was Rs 0.980 million (For the period ended December

2015: Rs.27.862 million). The cost of assets disposed off during the period was Rs. NIL. (For the

period ended December 2015: Rs. NIL).

There is no significant change in contingent liabilities of the company since last annual balance

sheet date.

On 5th December, 2016 , a serious breakout of fire in the hotel at around 3:00 a.m. In which 12 precious

lives including one staff member of the hotel lost and several injured and also damaged a several part of the

hotel service areas. Police has registered the case and lodged charges to the hotel management including CEO

and MD.

8)

Centre, Karachi.

Six-Months Ended December 2016

16

12) Figures have been rounded off to the nearest thousand rupees.

9)

10)

Cash and cash equivalent

31-12-2016 31-12-2015(Rupees in '000)

Cash and bank balances

Bank overdrafts 09.1

09.1 These are included in creditors, accrued and other liabilities and represent the balance

as per books without any corresponding facility from the bank.

Transaction with related parties and associatedundertakings

31-12-2016 31-12-2015(Rupees '000)

Gratuity fund

11) Directors have not declared any entitlements to the shareholders for the current period

(For the period ended December 31, 2015: Rs.3/= per share) in their meeting held on February 23rd

2017.

13) This interim financial report was authorized for issue by the Board of Directors of the

Company in their meeting held on February 23, 2017.

Karachi: February 23, 2017

MUZAFFAR F. BAWEJAChief Executive Oficer

Management hope the case will be decided by the Honorable Court at earliest in favor of

Management

3,500

ManagingDirectorZUBAIR BAWEJA

Revenue generation stopped from 5th December, 2016 to 3rd February, 2017, a soft opening of

banquet started from 4th February, 2017.

57,884

48,887

(8,997)

41,334

41,334