CORPORATE INFORMATION - Ghani Global Glassghaniglobalglass.com/wp-content/uploads/2017/10/... ·...

BOARD OF DIRECTORSAtique Ahmad Khan

Masroor Ahmad Khan

Haz Farooq Ahmad

Mian Zahid Said

Rabia Atique

Saira Farooq

Farzand Ali

AUDIT COMMITTEE

Mian Zahid Said - Chairman

Atique Ahmad Khan

Haz Farooq Ahmad

Saira Farooq

COMPANY SECRETARYFarzand Ali, FCS

AUDITORS

Rizwan & Company

Chartered Accountants

Member Firm of DFK International

Chairman

Chief Executive Ofcer

Director

Director

Director

Director

Director

HR & R COMMITTEE

Mian Zahid Said - Chairman

Atique Ahmad Khan

Haz Farooq Ahmad

Rabia Atique

CHIEF FINANCIAL OFFICERAsim Mahmud, FCA

SHARE REGISTRARVision Consulting Limited

1st Floor, 3-C, LDA Flats, Lawrence Road, Lahore

Tel: 042-36375531, 36375339, Fax: 042-36312550

GLASS PLANT52-K.M. Lahore Multan Road

Phool Nagar, Distt. Kasur

Ph:(049) 4510349-549, Fax: (049) 4510749

E-mail: [email protected]

REGIONAL MARKETING OFFICE215-A, Block C, Gulshan-e-Jamal

Rashid Minhas Road, Karachi

Tel: (021) 34330595


REGISTERED/CORPORATE OFFICE10-N, Model Town, Lahore 54000, Pakistan

UAN: 111 GHANI 1 (442-641)

Fax: (092) 42 35160393


Website: www.ghaniglobalglass.com

LEGAL ADVISORDSK Law, Lahore

BANKERS

Al Baraka Bank (Pakistan) Limited

Askari Bank Limited

Allied Bank Limited

Bank Al-Habib Limited

Bank Al-Falah Limited

Bank Islami Pakistan Limited

The Bank of Khyber

The Bank of Punjab

Habib Metropolitan Bank Limited

JS Bank Limited

MCB Bank Limited

Meezan Bank Limited

National Bank of Pakistan

Summit Bank Limited

Standard Chartered Bank Limited

United Bank Limited

Ghani Global Glass Limited 01

CORPORATE INFORMATIONCORPORATE INFORMATIONCORPORATE INFORMATION

1st Quarter 2017 02

OVERVIEW OF THE NATIONAL ECONOMY

Growth accelerated, mainly on recovery in agriculture and stronger manufacturing. With higher global prices for oil and other

commodities, ination slightly exceeded the forecast. The projection for the current account decit was surpassed by a wide

margin because of a very large increase in imports. Foreign exchange reserves were drawn down to ll a nancing gap. For

FY2018, projections for growth and ination are maintained, but the current account decit is expected to exceed the earlier

forecast again by a wide margin. The China Pak Economic Corridor (CPEC) is opening attractive avenues for investment

emerging from economic cooperation between the two rising powers of Asia. With extensive roads, railways and energy

infrastructure being laid down businessmen all around Pakistan are nding new opportunities that are worth their money and

time.

DIRECTORS’ REPORT

Dear Shareholders

Assalam-o-Alaikum Wa RehmatUllah Wa Barakatoh

The Directors of your Company are pleased to present the unaudited condensed interim nancial statements of GHANI GOBAL

GLASS LIMITED (the Company) for the rst quarter ended September 30, 2017, in compliance with the requirements of

Companies Act, 2017.

FINANCIAL PERFORMANCE:

Your Company's sales are improving day by day by acceptance of Company products in the market. For the period ended

September 2017, your Company have increased from amounting to Rs. 111.75 million from Rs. 87.16 million as compared with

the same period of last year depicting increase of 28.21%. Gross prot of the Company has increased from amounting to Rs.

4.72 million to Rs. 11.61 million as compared to the same period of last year and soon will be able to achieve its breakeven In-

Sha-Allah. Distribution cost and administrative cost incurred during period is Rs. 4.73 million and Rs.13.69 million whereas for

the last period it was Rs. 5.46 million and Rs. 16.89 million, respectively. Finance cost for the period incurred on the project

nance and working capital lines is amounting to Rs. 18.97 million and for the last period it was Rs. 16.02 million. Loss before

taxation for the period is amounting to Rs. 25.55 million as compared to loss for the last period was Rs. 32.95 million and after

taxation loss for the period is Rs. 26.74 million compared to Rs. 33.70 million in the last period.

A comparison of the key nancial results of your Company for the period ended September 30, 2017 with the same period last

year is as under:


Your Company has been facing tough resistance/ competition from inferior quality Chinese importers ruling from decades.

Under-utilization of production capacity, build-up of stocks and price competition with inferior quality Chinese importers are the

main reasons for loss to the Company.

Ghani Global Glass being the manufacturer of glass tubing is the pioneer to introducing brand new fully automated ampoules and

vials lines to cater the requirements of pharma customers. These manufacturing is being catered through high quality branded

machinery i.e. OCMI & SPAMI. Our customers are accepting the quality products and in the near days to come we will be able to

cater the overall national industry requirements In-Sha-Allah.

FUTURE PROSPECTS

The board of directors of your Company wishes to express their gratitude to valued shareholders, banks/nancial Institutions,

customers and suppliers for their continuous support, cooperation and patronage. We also wish to place on record the

dedication, hard work and diligence of executives, staff and workers of the Company. Needless to mention, all growth in the

business of the Company is not possible without will and blessings of ALMIGHTY ALLAH.

ACKNOWLEDGEMENTS

For and behalf of Board of Directors

HAFIZ FAROOQ AHMAD

(DIRECTOR)

MASROOR AHMAD KHAN

(CHIEF EXECUTIVE OFFICER)

Lahore

Dated: October 30, 2017

1st Quarter 2017 04

1st Quarter 2017 06

Assets

Non-current assets

Property, plant and equipment

Intangible assets-goodwill

Long term deposits

Current assets

Stores, spare parts and loose tools

Stock in trade

Trade debts

Loans and advances

Trade deposits and prepayments

Other receivables

Tax refunds due from government

Advance tax

Cash and bank balances

Total assets

Equity and Liabilities

Share capital and reserves

Authorized share capital

Issued, subscribed and paid up share capital

Accumulated losses

Loan from sponsors

Total equity

Non-current liabilities

Long term nancing

Long term security deposits

Current liabilities

Trade and other payables

Accrued prot on nancing

Current portion of long term nancing

Short term borrowings

Provision for taxation

Total liabilities

Total Equity and Liabilities

Contingencies and commitments

The annexed notes from 1 to 14 form an integral part of this condensed interim nancial information.

120,000,000 (June 30, 2017 : 120,000,000) ordinary

shares of Rupees. 10 each

Note

Un-audited Audited

September 30, 2017 June 30, 2017

Rupees

5 1,467,628,252

1,417,453,106

19,794,072

19,794,072

6,867,650

6,767,650

1,494,289,974

1,444,014,828

34,748,664

34,270,406

359,633,683

322,545,365

101,934,053

76,134,308

15,251,847

19,261,217

40,002,415

57,320,235

84,865

103,489

126,253,272

122,102,447

44,002,269

38,286,454

84,368,320

68,123,956

806,279,388

738,147,877

2,300,569,362

2,182,162,705

1,200,000,000 1,200,000,000

6 1,000,000,000 1,000,000,000 (203,332,631)

(176,593,674)

413,660,638

344,860,638 1,210,328,007

1,168,266,964

7 337,830,635

375,709,221

400,000

400,000

338,230,635

376,109,221

95,249,316

106,824,557

11,474,376

10,025,691

154,113,632

153,404,730

486,682,455

364,231,460

4,490,941

3,300,082

752,010,720

637,786,520

1,090,241,355

1,013,895,741

2,300,569,362

2,182,162,705

8 -

-


HAFIZ FAROOQ AHMAD

(DIRECTOR)

MASROOR AHMAD KHAN


ASIM MAHMUD

(CHIEF FINANCIAL OFFICER)

As at September 30, 2017

Condensed Interim Balance Sheet

1st Quarter 2017 08

For the rst quarter ended September 30, 2017

Condensed Interim Prot and Loss Account (un-audited)

Gross Sales

Sales tax

Net Sales

Cost of sales

Gross prot

Administrative expenses

Selling and distribution expenses

Other operating expenses

Other income

Loss from operations

Finance cost

Loss before taxation

Taxation

Loss after taxation

Loss per share

- basic and diluted


Note

September 30, 2017 September 30, 2016

Rupees

111,750,434 87,160,502

(16,481,678) (12,960,964)

95,268,756 74,199,538

(83,658,501) (69,478,321)

11,610,255 4,721,217

(13,685,747) (16,895,760)

(4,731,894) (5,460,665)

(63,400) (341,000)

(18,481,041) (22,697,425)

290,696 1,045,202

(6,580,090) (16,931,006)

(18,968,008) (16,022,342)

(25,548,098) (32,953,348)

(1,190,859) (741,995)

(26,738,957) (33,695,343)

9 (0.27) (0.49)

HAFIZ FAROOQ AHMAD

(DIRECTOR)

MASROOR AHMAD KHAN


ASIM MAHMUD



Rupees

(26,738,957) (33,695,343)

- -

(26,738,957) (33,695,343)

Net loss for the period

Other comprehensive income

Total comprehensive loss for the period



Condensed Interim Statement of Comprehensive Income (un-audited) For the rst quarter ended September 30, 2017

HAFIZ FAROOQ AHMAD

(DIRECTOR)

MASROOR AHMAD KHAN


ASIM MAHMUD


1st Quarter 2017 10

Balance as at July 01, 2016-(audited)


Other comprehensive income for the period


Transactions with owners:

Loan paid during the period - net

Shares issued during the period

Balance as at September 30, 2016 - (un-audited)

Balance as at July 01, 2017-(audited)


Other comprehensive income for the period


Transactions with owners:

Loan received during the period-net

Shares issued during the period

Balance as at September 30, 2017 - (un-audited)

The annexed notes from 1 to 14 form an integral part of this condensed interim financial information.

500,000,000

(60,668,354)

485,660,638

924,992,284

-

(33,695,343)

-

(33,695,343)

-

-

-

-

-

(33,695,343)

-

(33,695,343)

-

-

(146,000,000)

(146,000,000)

500,000,000

-

-

500,000,000

1,000,000,000

(94,363,697)

339,660,638

1,245,296,941

1,000,000,000

(176,593,674)

344,860,638

1,168,266,964

-

(26,738,957)

-

(26,738,957)

-

-

-

-

-

(26,738,957)

-

(26,738,957)

-

-

68,800,000

68,800,000

- - - -

1,000,000,000 (203,332,631) 413,660,638 1,210,328,007

Ordinary

Share capital

Accumulated

lossesTotal

…………..(Rupees)………...

Loan from

sponsors

Condensed Interim Statement of Changes in Equity For the rst quarter ended September 30, 2017

HAFIZ FAROOQ AHMAD

(DIRECTOR)

MASROOR AHMAD KHAN


ASIM MAHMUD


Cash ows from operating activities

Cash used in operations

Long term deposits

Long term security deposit

Finance cost paid

Income tax paid

Net cash used in operating activities

Cash ows from investing activities

Purchase of property, plant and equipment

Addition in capital work in progress

Net cash used in investing activities

Cash ows from nancing activities

Issue of shares

Loan received from / (paid to) sponsors

Long term nancing

Short term borrowings

Net cash generated from nancing activities

Net increase / (decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period


Note


Rupees

10 (40,180,682) (84,056,562)

(100,000) -

- 31,943

(17,519,323) (16,165,465)

(5,715,815) (4,625,932)

(23,335,138) (20,759,454)

(63,515,820) (104,816,016)

(74,251,127) (650,338)

(70,000) (19,209,776)

(74,321,127) (19,860,114)

- 500,000,000

68,800,000 (146,000,000)

(37,169,684) (1,060,141)

122,450,995 90,479,609

154,081,311 443,419,468

16,244,364 318,743,338

68,123,956 34,915,385

84,368,320 353,658,723

Condensed Interim Cash Flow Statement (un-audited) For the rst quarter ended September 30, 2017


HAFIZ FAROOQ AHMAD

(DIRECTOR)

MASROOR AHMAD KHAN


ASIM MAHMUD


1st Quarter 2017 12

For the rst quarter ended September 30, 2017

Selected Notes to the Accounts forming part ofthe Condensed Interim Financial Information (un-audited)

Ghani Global Glass Limited ("the Company") was incorporated in Pakistan under the repealed Companies Ordinance, 1984

(now Companies Act, 2017) as a private limited company on October 04, 2007 as Ghani Tableware (Private) Limited. Its

status was changed to public unlisted company, consequently its name was changed to Ghani Tableware Limited as on

July 24, 2008. Name of the Company was further changed to Ghani Global Glass Limited on January 14, 2009. The

Company became listed on Pakistan Stock Exchange on December 12, 2014 upon merger of Libaas Textile Limited with

and into the Company. The Company's registered ofce is situated at 10-N, Model Town Extension, Lahore.

The Company and its operations1

The Company is principally engaged in manufacturing and sale of glass tubes, glass-ware, vials and ampules.

Basis of preparation2

This condensed interim nancial information has been prepared in accordance with the International Accounting Standard

(IAS) 34 'Interim Financial Reporting' as applicable in Pakistan and notied by the Securities and Exchange Commission of

Pakistan (SECP) and provisions of and directives issued under the repealed Companies Ordinance, 1984. In case where

requirements differ, the provisions of or directives issued under the repealed Companies Ordinance, 1984 have been

followed.

2.1 Statement of compliance

This condensed interim nancial information do not include the information reported for annual nancial statements and

should be read in conjunction with the audited annual published nancial statements for the year ended June 30, 2017.

This condensed interim nancial information presented in Pak Rupees which is the functional and presentation currency

for the Company.

2.2. Functional and presentation currency

There are certain new standards, amendments and International Financial Reporting Interpretations Committee (IFRIC)

interpretations that became effective during the period and are mandatory for accounting periods beginning on or after

January 01, 2017 but are considered not to be relevant or do not have any signicant effect on the company's operations

and are, therefore, not disclosed in this condensed interim nancial information.

2.3. Changes in standards, interpretations and amendments to published approved accounting standards and IFRS

There are other amendments to the standards and new interpretations that are mandatory for accounting periods

beginning on or after January 01, 2017 but are considered not to be relevant or do not have any signicant effect on

company's operations and are, therefore, not detailed in this condensed interim nancial information.

2.4. Standards, interpretations and amendments to published approved accounting standards and IFRS that are not yet effective

The accounting policies and methods of computations adopted for the preparation of this interim condensed nancial

information are the same as applied in the preparation of the preceding audited annual published nancial statements of the

Company for the year ended June 30, 2017.

3. Accounting policies and computation methods

The preparation of this interim condensed nancial information in conformity with the approved accounting standards

requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the

process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based

4. Critical accounting estimates and judgments


on historical experience and other factors, including expectations of future events that are believed to be reasonable under

the circumstances.

During preparation of this interim condensed nancial information, the signicant judgments made by the management in

applying the Company’s accounting policies and the key sources of estimation and uncertainty were the same as those that

applied in the preceding audited annual published nancial statements of the Company for the year ended June 30, 2017.

5.2 Movement of capital work in progress

Opening balance

Add: addition during the period / year

5

5.1

5.1.1

Property, plant and equipment

Operating xed assets- tangible

Capital work in progress

Movement of operating xed assets- tangible

Opening book value

Add: addition during the period / year

Less: book value of the disposals

Less: depreciation charged during the period / year

Closing book value

Addition during the period / year

Land - Freehold

Building

Plant and machinery

Furnace

Furniture and xtures

Ofce equipments

Computers

Vehicles

Un-audited Audited

Note


Rupees

5.1 1,451,285,214

1,401,180,068

5.2 16,343,038

16,273,038

1,467,628,252

1,417,453,106

1,401,180,068

1,306,203,105

5.1.1 74,251,127

190,894,200

-

66,263

1,475,431,195

1,497,031,042

24,145,981

95,850,974

1,451,285,214

1,401,180,068

-

2,505,265

-

70,000

71,216,824

171,332,939

-

14,554,702

506,963

1,724,731

-

36,000

164,340

670,563

2,363,000

-

74,251,127

190,894,200

16,273,038 6,632,746

70,000 9,640,292

16,343,038 16,273,038

Less: Capitalization during the period / year

Closing balance

- -

16,343,038 16,273,038

1st Quarter 2017 14

6

Ordinary shares of Rupees 10

each fully paid in cash

Ordinary shares of Rupees 10

each issued for consideration

other than cash under scheme

of arrangement for

amalgamation.

Issued, subscribed and paid up share capital

Audited

June 30, 2017

98,000,000

2,000,000

Un-audited

September 30, 2017

98,000,000

2,000,000

(No. of Shares)

100,000,000

100,000,000

Un-audited Audited


(Rupees)

980,000,000

980,000,000

20,000,000

20,000,000

1,000,000,000

1,000,000,000

Un audited Audited


(Rupees)

7 Long term nancing

Diminishing Musharakah (DM) facility

DM from nancial institution - secured 2,126,700 945,200

Syndicate nancing from banking companies - secured 484,783,564 522,074,608

Islamic Financial Institution - secured 5,034,003 6,094,143

491,944,267 529,113,951

Current portion taken as current liability (154,113,632) (153,404,730)

337,830,635 375,709,221

8 Contingencies and commitments

8.1 Contingencies

8.2 Commitments

8.2.1

8.2.2


(Rupees)

9 Loss per share

Loss attributable to ordinary shareholders (Rupees) (26,738,957) (33,695,343)

Commitment for capital expenditure related to construction of building as at balance sheet date amounted to Rupees 50 million

(June 2017 : Rupees 45 million)

There are no material changes in contingencies as disclosed in the note to the nancial statements for the year ended June 30, 2017.

Commitment in respect of letter of credit for machinery, raw material, stores and spares outstanding as at balance sheet date is of

Rupees 146.55 million (June 2017: Rupees 105.70 million).

Number of ordinary shares outstanding during the period (Number) 100,000,000

68,944,099

Loss per share - basic and diluted (Rupees) (0.27) (0.49)


9.1 No gure for diluted earnings per share has been presented as the Company has not issued any instruments carrying options which

would have an impact on earnings per share when exercised.


Note (Rupees)

10 Cash ows from operations

Loss before taxation (25,548,098) (32,953,348) Adjustments for:

Depreciation on Property, plant and equipment 24,145,981

23,334,031

Finance cost 18,968,008

16,022,342 43,113,989

39,356,373

Operating cash ows before working capital changes 17,565,891

6,403,025

Effect on cash ows due to working capital changes:

(Increase) / decrease in current assets:

Stores, spare parts and loose tools (478,258)

11,894,776

Stock in trade (37,088,318)

(40,001,573)

Trade debts (25,799,745)

(11,951,097)

Tax refunds due from government (4,150,825)

(2,456,141)

Loans and advances 4,009,370

(10,822,044)

Trade deposits and prepayments 17,317,820

(17,058,682)

Other receivables 18,624

(929,181)

Increase / (decrease) in current liabilities:

Trade and other payables (11,575,241)

(19,135,645)

Net cash used in working capital changes (57,746,573)

(90,459,587)

Cash used in operations (40,180,682)

(84,056,562)

11 Transactions with related parties

Transactions with related parties other than those disclosed elsewhere are as follows:


………...(Rupees)……….

Associated companies / undertaking

Associated company Services 3,000,000

3,000,000

Guarantee Charges 650,000

650,000

Purchases 5,170,954

16,504,785

Key management personnel

Sponsors Loan received / (repaid) 68,800,000

(146,000,000)

Others

Provident fund trust Contribution 2,059,036 1,137,685

11.1 All transactions with related parties were carried out at an arms length.

Name of related party Nature of Transaction

Related parties comprise of subsidiary and associated companies, directors of the Company, companies in which directors also hold

directorship, related companies, key management personnel and staff retirement benet funds.

1st Quarter 2017 16

IFRS - 13 requires fair value measurement disclosures using following three levels fair value hierarchy that reects the

signicance of the inputs used in measuring fair value of nancial instruments.

Fair value estimation12.

Information about fair value hierarchy and assets classied under the hierarchy is as follows:

- Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities. The Company has no items to report

in this level.

- Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly

(i.e. as prices) or indirectly (i.e. drive from prices). The Company has no items to report in this level.

- Level 3: Inputs for asset or liability that are not based on observable market data (unobservable inputs). The Company has

no items to report in this level.

There were no changes in valuation techniques during the period. The carrying values of all nancial assets and liabilities

reected in this condensed interim nancial information approximate their fair values.

This condensed interim nancial information was approved by the Board of Directors of the Company and authorized for

issue on October 30, 2017.

Date of authorization13.

General14.

Corresponding gures have been re-arranged / re-classied wherever necessary to facilitate comparison. However, no

signicant reclassication has been made during the period.

14.1.

In order to comply with the requirements of International Accounting Standard 34 - 'Interim Financial Reporting',

corresponding gures in the condensed interim balance sheet comprise of balances as per the annual audited nancial

statements of the Company for the year ended June 30, 2017 and the corresponding gures in the condensed interim prot

and loss account, condensed interim statement of other comprehensive income, condensed interim statement of changes

in equity and condensed interim cash ow statement comprise of balances of comparable period as per the condensed

interim nancial information of the Company for the period ended September 30, 2016.

14.2.

Figures have been rounded off to the nearest rupees, unless otherwise stated.14.2.

HAFIZ FAROOQ AHMAD

(DIRECTOR)

MASROOR AHMAD KHAN


ASIM MAHMUD


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