Interim March 2016 - PEL · ended March 31, 2016. Alhamdulillah, your company has achieved Sales...

Interim Financial Reportfor the quarter endedMarch 31, 2016

Life-changing Engineering

Pak Elektron Limited

Corporate InformationDirectors’ Review

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

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION

CONDENSED INTERIM SEPARATE FINANCIAL INFORMATION

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

Contents0203

0608091011

2022232425

Corporate InformationDirectors’ Review

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

CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION

CONDENSED INTERIM SEPARATE FINANCIAL INFORMATION

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

Contents0203

0608091011

2022232425

CORPORATE INFORMATION DIRECTORS’ REVIEW

Interim Financial Report March 31, 2016

02 | | 03

BOARD OF DIRECTORS

Mr. M. Naseem Saigol Chairman - ExecutiveMr. M. Murad Saigol Chief Executive Officer - Executive/ Certified (DTP)Mr. M. Azam Saigol Director - Non ExecutiveMr. Muhammad Zeid Yousuf Saigol Director - Executive/Certified (DTP)Syed Manzar Hassan Director - ExecutiveMr. Asad Ullah Khawaja Director - NIT Nominee/IndependentSheikh Muhammad Shakeel Director - Non Executive/Certified (DTP)Mr. Wajahat A. Baqai Director - NBP Nominee U/S 182 of the Ordinance/ Non ExecutiveMr. Usman Shahid Director - NBP Nominee U/S 182 of the Ordinance/ Non ExecutiveMr. Khalid Siddiq Tirmizey Director - BOP Nominee U/S 182 of the Ordinance/ Non Executive

BANKERS (Cont’d)

Burj Bank LimitedEscort Investment Bank Faysal Bank LimitedBank Islami PakistanMCB Bank, LimitedNational Bank of PakistanNIB Bank LimitedPak Brunei Investment Company LimitedPak Libya Holding Company (Private) LimitedSilk Bank LimitedSoneri Bank LimitedStandard Chartered BankSummit Bank LimitedSaudi Pak Industrial and agricultural investment Company LimitedUnited Bank Limited

REGISTERED OFFICE

17- Aziz Avenue, Canal Bank,Gulberg-V, LahoreTel: 042-35718274-6, Fax: 042-35762707E-Mail: [email protected]

AUDIT COMMITTEE

HR & REMUNERATION COMMITTEE

COMPANY SECRETARY

CHIEF FINANCIAL OFFICER

AUDITORS

LEGAL ADVISOR

SHARE REGISTRAR

BANKERS

Mr. M. Azam Saigol Chairman/MemberMr. Asad Ullah Khawaja MemberMr. Usman Shahid MemberSheikh Muhammad Shakeel Member

Mr. M. Azam Saigol Chairman/MemberMr. M. Murad Saigol MemberMr. Asad Ullah Khawaja MemberSyed Manzar HassanMember

Muhammad Omer Farooq

Syed Manzar Hassan, FCA

Rahman Sarfaraz Rahim Iqbal RafiqChartered Accountants

M/s Hassan & Hassan Advocates

Corplink (Private) LimitedWings Arcade, 1-K CommercialModel Town, LahoreTel: 042-35916714, 35839182,Fax: 042-35869037E-Mail: [email protected]

Albaraka Islamic BankAskari Bank LimitedBank Alfalah LimitedBank of KhyberBank of Punjab

KARACHI

Kohinoor Building 25-West Wharf Road,KarachiTel: 021-32200951-4Fax: 021-32310303

TRANSFORMER FACILITY

34-K.M. Ferozepur Road, Keath Village, Lahore.Tel: 042-35935151-2

14-K.M. Ferozepur Road, LahoreTel: 042-35920151-9

ISLAMABAD

Room # 301, 3rd Floor,Green Trust Tower, Blue Area, IslamabadTel: 051-2824543, 2828941Fax: 051-2273858

206, No. 1007, Zhong Shan Naun Er Road, Shanghai, ChinaTel: 86-21-64567713Fax: 86-21- 54109971

Dear Shareholders

Your Directors are pleased to present the un-audited interim financial statements of the Company for the First quarter ended March 31, 2016. Alhamdulillah, your company has achieved Sales revenue during the period amounting to Rs. 7.750 billion as compared to Rs. 5.869 billion of corresponding quarter of last financial year, representing a growth of 32%. The gross margin and EPS achieved for the current quarter is 27% and Rs. 1.20 per share respectively which are slightly lower as compared to the corresponding quarter of previous year. Management of the company is committed to act on the strategy of improving product quality and market share through maximum capacity utilization, initiatives of operating cost control and material cost reduction as a result of R&D initiatives in our main products.

Summary of results is as under:

Quarter endedMarch 31, 2016Rupees in million

Quarter endedMarch 31, 2015

Increase /(Decrease)

Gross Profit

Finance Cost

Profit before tax

Profit after tax

Earnings per share - Rupees

Performance of the Company in both Appliances and Power Divisions showed positive improvement during the current period over the corresponding period of last financial year.

Appliances Division

Appliances Division's sale has shown a moderate increase in the first quarter ended March 31, 2016 against the corresponding period. This time, Refrigerators, Deep Freezers and Split Air Conditioners have positively contributed in increase in Revenue of Appliance Division. Deep Freezers and Air conditioners have shown positive uptick in sales as compared to the quarter of corresponding previous year. Sturdy marketing and advertising strategies, constant cost effective measures and extensive R & D initiatives proved to be the pronounced reason in appliance division growth and achievements. Stability of Country Law and Order situation has also played a key role in consumer buying and directly affected the Consumer Electronics Market.

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

Power Division

Power Division has achieved a momentous growth in first quarter especially in transformer business, including Distribution Transformers and Power Transformers. Elevated orders intake from the WAPDA/DISCOs as well as high sale orders from the Private Sectors are the main contributors in it. Your Company is working on new designs and prototypes for different power division products to rationalize costs without compromising on quality. New orders have started flowing in from Discos on top of continuous ordering from private customers and our in house EPC department. With promising ordering outlook we are optimistic that we would be able to meet our budgeted sales for the power division during the course of the financial year.

CORPORATE INFORMATION DIRECTORS’ REVIEW

02 | | 03

BOARD OF DIRECTORS

Mr. M. Naseem Saigol Chairman - ExecutiveMr. M. Murad Saigol Chief Executive Officer - Executive/ Certified (DTP)Mr. M. Azam Saigol Director - Non ExecutiveMr. Muhammad Zeid Yousuf Saigol Director - Executive/Certified (DTP)Syed Manzar Hassan Director - ExecutiveMr. Asad Ullah Khawaja Director - NIT Nominee/IndependentSheikh Muhammad Shakeel Director - Non Executive/Certified (DTP)Mr. Wajahat A. Baqai Director - NBP Nominee U/S 182 of the Ordinance/ Non ExecutiveMr. Usman Shahid Director - NBP Nominee U/S 182 of the Ordinance/ Non ExecutiveMr. Khalid Siddiq Tirmizey Director - BOP Nominee U/S 182 of the Ordinance/ Non Executive

BANKERS (Cont’d)

Burj Bank LimitedEscort Investment Bank Faysal Bank LimitedBank Islami PakistanMCB Bank, LimitedNational Bank of PakistanNIB Bank LimitedPak Brunei Investment Company LimitedPak Libya Holding Company (Private) LimitedSilk Bank LimitedSoneri Bank LimitedStandard Chartered BankSummit Bank LimitedSaudi Pak Industrial and agricultural investment Company LimitedUnited Bank Limited

REGISTERED OFFICE

17- Aziz Avenue, Canal Bank,Gulberg-V, LahoreTel: 042-35718274-6, Fax: 042-35762707E-Mail: [email protected]

AUDIT COMMITTEE

HR & REMUNERATION COMMITTEE

COMPANY SECRETARY

CHIEF FINANCIAL OFFICER

AUDITORS

LEGAL ADVISOR

SHARE REGISTRAR

BANKERS

Mr. M. Azam Saigol Chairman/MemberMr. Asad Ullah Khawaja MemberMr. Usman Shahid MemberSheikh Muhammad Shakeel Member

Mr. M. Azam Saigol Chairman/MemberMr. M. Murad Saigol MemberMr. Asad Ullah Khawaja MemberSyed Manzar HassanMember

Muhammad Omer Farooq

Syed Manzar Hassan, FCA

Rahman Sarfaraz Rahim Iqbal RafiqChartered Accountants

M/s Hassan & Hassan Advocates

Corplink (Private) LimitedWings Arcade, 1-K CommercialModel Town, LahoreTel: 042-35916714, 35839182,Fax: 042-35869037E-Mail: [email protected]

Albaraka Islamic BankAskari Bank LimitedBank Alfalah LimitedBank of KhyberBank of Punjab

KARACHI

Kohinoor Building 25-West Wharf Road,KarachiTel: 021-32200951-4Fax: 021-32310303

TRANSFORMER FACILITY

34-K.M. Ferozepur Road, Keath Village, Lahore.Tel: 042-35935151-2

14-K.M. Ferozepur Road, LahoreTel: 042-35920151-9

ISLAMABAD

Room # 301, 3rd Floor,Green Trust Tower, Blue Area, IslamabadTel: 051-2824543, 2828941Fax: 051-2273858

206, No. 1007, Zhong Shan Naun Er Road, Shanghai, ChinaTel: 86-21-64567713Fax: 86-21- 54109971

Dear Shareholders

Your Directors are pleased to present the un-audited interim financial statements of the Company for the First quarter ended March 31, 2016. Alhamdulillah, your company has achieved Sales revenue during the period amounting to Rs. 7.750 billion as compared to Rs. 5.869 billion of corresponding quarter of last financial year, representing a growth of 32%. The gross margin and EPS achieved for the current quarter is 27% and Rs. 1.20 per share respectively which are slightly lower as compared to the corresponding quarter of previous year. Management of the company is committed to act on the strategy of improving product quality and market share through maximum capacity utilization, initiatives of operating cost control and material cost reduction as a result of R&D initiatives in our main products.

Summary of results is as under:

Quarter endedMarch 31, 2016Rupees in million

Quarter endedMarch 31, 2015

Increase /(Decrease)

Gross Profit

Finance Cost

Profit before tax

Profit after tax

Earnings per share - Rupees

Performance of the Company in both Appliances and Power Divisions showed positive improvement during the current period over the corresponding period of last financial year.

Appliances Division

Appliances Division's sale has shown a moderate increase in the first quarter ended March 31, 2016 against the corresponding period. This time, Refrigerators, Deep Freezers and Split Air Conditioners have positively contributed in increase in Revenue of Appliance Division. Deep Freezers and Air conditioners have shown positive uptick in sales as compared to the quarter of corresponding previous year. Sturdy marketing and advertising strategies, constant cost effective measures and extensive R & D initiatives proved to be the pronounced reason in appliance division growth and achievements. Stability of Country Law and Order situation has also played a key role in consumer buying and directly affected the Consumer Electronics Market.

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

Power Division

Power Division has achieved a momentous growth in first quarter especially in transformer business, including Distribution Transformers and Power Transformers. Elevated orders intake from the WAPDA/DISCOs as well as high sale orders from the Private Sectors are the main contributors in it. Your Company is working on new designs and prototypes for different power division products to rationalize costs without compromising on quality. New orders have started flowing in from Discos on top of continuous ordering from private customers and our in house EPC department. With promising ordering outlook we are optimistic that we would be able to meet our budgeted sales for the power division during the course of the financial year.

Condensed InterimConsolidated Financial Information

M. MURAD SAIGOL

Chief Executive Officer

on behalf of the Board of Directors

LahoreApril 26, 2016

DIRECTORS’ REVIEW

Future Outlook

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

Acknowledgement

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

Condensed InterimConsolidated Financial Information

M. MURAD SAIGOL

Chief Executive Officer

on behalf of the Board of Directors

LahoreApril 26, 2016

DIRECTORS’ REVIEW

Future Outlook

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

Acknowledgement

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

CONDENSED INTERIMCONSOLIDATED BALANCE SHEETAS AT MARCH 31, 2016

M. MURAD SAIGOLChief Executive Officer

SYED MANZAR HASSANDirector

06 | | 07

(Un-Audited) (Audited)

March 312016

December 312015Rupees in thousands

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

ADVANCE AGAINST ISSUE OF ORDINARY SHARES - 1,575,252

SURPLUS ON REVALUATION OFPROPERTY, PLANT AND EQUIPMENT

4,757,766

4,804,200

The annexed notes from 1 to 18 form an integral part of this condensed interim consolidated financial information.

Authorized Capital 4 6,000,000 6,000,000

Contingencies and Commitments 10 - -

38,500,659 36,149,276

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment 11

Intangible assets

Long term investments 12

Long term advances and deposits

CURRENT ASSETS

Stores, spares and loose tools

Stock in trade

Trade debts

Due against construction work in progress

Short term advances

Short term deposits and prepayments

Other receivables

Short term investments

Advance income tax

Cash and bank balances

15,945,178

334,656

10,420

1,144,815

782,256

7,266,744

7,995,578

1,071,423

984,620

1,365,026

440,004

83,925

414,890

661,124

21,065,590

38,500,659

15,509,612

338,321

861,775

793,379

6,181,986

7,700,374

1,023,647

913,881

1,331,229

390,118

85,524

432,838

577,687

19,430,662

36,149,276

March 312016

Issued, subscribed and paid up capital 5

Capital reserve

Accumulated profit

5,426,392

4,279,947

8,469,550

18,175,889

4,431,029

1,293,858

7,891,437

13,616,324 TOTAL EQUITY

NON-CURRENT LIABILITIES

Redeemable capital 6

Long term finances 7

Liabilities against assets subject to finance lease 8

Deferred taxation

Deferred income

3,697,305

2,063,861

66,276

2,282,467

42,364

3,879,209

2,186,511

61,349

2,261,892

42,900

8,152,273 8,413,861

CURRENT LIABILITIES

Trade and other payables

Accrued interest/mark-up

Short term borrowings 9

Current portion of non-current liabilities

816,033

235,462

4,571,031

1,792,205

7,414,731

815,179

260,904

4,668,901

1,976,655

7,721,639

15,567,004 16,153,500TOTAL LIABILITIES

TOTAL EQUITY AND LIABILITIES

17,435,069 16,718,614

TOTAL ASSETS

CONDENSED INTERIMCONSOLIDATED BALANCE SHEETAS AT MARCH 31, 2016

06 | | 07

March 312016

4,757,766

4,804,200

38,500,659 36,149,276

ASSETS

NON-CURRENT ASSETS

Intangible assets

CURRENT ASSETS

Stock in trade

Trade debts

Short term advances

Other receivables

Advance income tax

15,945,178

334,656

10,420

1,144,815

782,256

7,266,744

7,995,578

1,071,423

984,620

1,365,026

440,004

83,925

414,890

661,124

21,065,590

38,500,659

15,509,612

338,321

861,775

793,379

6,181,986

7,700,374

1,023,647

913,881

1,331,229

390,118

85,524

432,838

577,687

19,430,662

36,149,276

March 312016

Capital reserve

Accumulated profit

5,426,392

4,279,947

8,469,550

18,175,889

4,431,029

1,293,858

7,891,437

Deferred taxation

Deferred income

3,697,305

2,063,861

66,276

2,282,467

42,364

3,879,209

2,186,511

61,349

2,261,892

42,900

8,152,273 8,413,861

CURRENT LIABILITIES

816,033

235,462

4,571,031

1,792,205

7,414,731

815,179

260,904

4,668,901

1,976,655

7,721,639

17,435,069 16,718,614

TOTAL ASSETS

CONDENSED INTERIM

CONSOLIDATED PROFIT AND LOSS ACCOUNT / STATEMENT OF COMPREHENSIVE INCOME

FOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)

CONDENSED INTERIMCONSOLIDATED CASH FLOW STATEMENTFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)

March 312016

March 312015Rupees in thousands

Cash flows from operating activities

Profit before taxation

Adjustments for non cash and other items

Cash generated from operations before working capital changes

Working capital changes

Cash (used in) / generated from operations

Finance cost paid

Compensated absence paid

Dividend

Income tax paid

Net cash (used in) / operating activitiesgenerated from

Cash flows from investing activities

Purchase of property, plant and equipment

Proceeds from disposal of property, plant and equipment

(Increase) in long term deposits

Net cash used in investing activities

Cash flows from financing activities

(Decrease) in long term finances

(Decrease) / increase in liabilities against finance lease

Proceeds from issue of ordinary shares

(Decrease) in short term borrowing

Net cash generated from / (used in) financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at end of the period

1,423,146

1,090,153

765,702

657,444

(332,993)

(394,704)

(7,244)

(31,777)

(433,725)

656,428

(120,171)

(5,215)

(122,864)

(126,360)

(434,152)

(552,906)

(19,342)

340,086

320,744

739,412

510,303

1,249,715

(1,569,309)

(319,594)

(327,700)

(2,542)

(176,011)

(507,126)

(826,720)

(580,515)

18,073

(283,040)

(845,482)

(507,574)

(45,116)

2,406,200

(97,870)

1,755,640

83,438

577,687

661,124

08 | | 09

March 312016

Revenue 13

Sales tax and discount 13

Revenue - net

Cost of sales 14

Gross profit

Other income

Distribution cost

Finance cost

Share of loss of associate

Provision for taxation

Profit after taxation

Other comprehensive income

Earnings per share - basic and diluted 15

7,749,528

(1,251,249)

6,498,279

(4,746,189)

1,752,090

11,710

1,763,800

(353,842)

(394,300)

739,412

(207,848)

531,564

5,868,729

(925,710)

4,943,019

(3,263,939)

1,679,080

1,685,606

(254,991)

Administrative cost (237,962) (188,526)

Other expenses (37,602) (2,800)

(471,148)

(2,439)

765,702

(33,091)

732,611

Total Comprehensive income for the period

(629,406) (446,317)

740,094 768,141

Operating profit 1,134,394 1,239,289

CONDENSED INTERIM

CONSOLIDATED PROFIT AND LOSS ACCOUNT / STATEMENT OF COMPREHENSIVE INCOME

FOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)

CONDENSED INTERIMCONSOLIDATED CASH FLOW STATEMENTFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)

March 312016

Adjustments for non cash and other items

Finance cost paid

Dividend

Income tax paid

Net cash (used in) / operating activitiesgenerated from

(Increase) in long term deposits

(Decrease) / increase in liabilities against finance lease

(Decrease) in short term borrowing

1,423,146

1,090,153

765,702

657,444

(332,993)

(394,704)

(7,244)

(31,777)

(433,725)

656,428

(120,171)

(5,215)

(122,864)

(126,360)

(434,152)

(552,906)

(19,342)

340,086

320,744

739,412

510,303

1,249,715

(1,569,309)

(319,594)

(327,700)

(2,542)

(176,011)

(507,126)

(826,720)

(580,515)

18,073

(283,040)

(845,482)

(507,574)

(45,116)

2,406,200

(97,870)

1,755,640

83,438

577,687

661,124

08 | | 09

March 312016

Revenue 13

Revenue - net

Cost of sales 14

Gross profit

Other income

Distribution cost

Finance cost

Share of loss of associate

Earnings per share - basic and diluted 15

7,749,528

(1,251,249)

6,498,279

(4,746,189)

1,752,090

11,710

1,763,800

(353,842)

(394,300)

739,412

(207,848)

531,564

5,868,729

(925,710)

4,943,019

(3,263,939)

1,679,080

1,685,606

(254,991)

(471,148)

(2,439)

765,702

(33,091)

732,611

(629,406) (446,317)

740,094 768,141

Operating profit 1,134,394 1,239,289

CONDENSED INTERIMCONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE QUARTER ENDED MARCH 31, 2016

Balance as at December 31, 2014 - (Audited)

Total comprehensive income for the period

Incremental depreciation

Balance as at March 31, 2015 - (Un-audited)

Dividend on ordinary shares

Total comprehensive income for the period.

Issue of right ordinary shares

Rupees in thousand

Revenue reserves

Premium on

issue of shares

1,293,858

2,986,089

4,279,947

11,026,441

732,611

52,009

11,811,061

2,147,410

155,535

(497,682)

13,616,324

531,564

3,981,452

46,550

18,175,889

4,431,029

995,363

5,426,392

Share capital

Capital reserves

5,301,554

732,611

52,009

6,086,174

2,147,410

155,535

(497,682)

7,891,437

531,564

46,550

8,469,550

Unappropriatedprofit

1 REPORTING ENTITY

2 BASIS OF PREPARATION

The Group comprises of the following companies

Parent Company

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

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

Power Division: manufacturing and distribution of transformers, switchgears, energy meters, power transformers, construction of grid stations and equipment procurement and construction (EPC).

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

Subsidiary Company

PEL marketing ( Private ) Limited ( PMPL) was incorporated in Pakistan on August 11, 2011 as a private limited company under the companies ordinance 1984. Registered office of PMPL is situated at 17 Aziz Avenue, canal bank Gulberg V, Lahore. The principal activity of PMPL is marketing and sale of domestic appliances. PMPL is wholly owned subsidiary of PEL.

This interim consolidated financial information is not audited and has been presented in condensed form and does not include all the information and disclosures as are required to be provided or made in a full set of annual financial statements. This condensed interim consolidated financial information should be read in conjunction with the audited financial statements of the Group for the year ended December 31, 2015.

The comparative interim consolidated balance sheet as at December 31, 2015 and the related notes to the condensed interim consolidated financial information are based on audited financial statements. The comparative interim consolidated profit and loss account/statement of comprehensive income, interim consolidated cash flow statement, interim consolidated statement of changes in equity and related notes to the condensed interim consolidated financial information for the three months ended March 31, 2015 are based on unaudited interim financial information.

2.1 Statement of compliance

This condensed interim consolidated financial information has been prepared in accordance with the requirements of International Accounting Standard 34 - Interim Financial Reporting, and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of and directives issued under the Companies Ordinance, 1984 have been followed.

NOTES TO THE CONDENSED INTERIMCONSOLIDATED FINANCIAL INFORMATIONFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)

10 | | 11

Total comprehensive income for the period.

Rupees in thousand

Revenue reserves

Premium on

issue of shares

1,293,858

2,986,089

4,279,947

11,026,441

732,611

52,009

11,811,061

2,147,410

155,535

(497,682)

13,616,324

531,564

3,981,452

46,550

18,175,889

4,431,029

995,363

5,426,392

Share capital

Capital reserves

5,301,554

732,611

52,009

6,086,174

2,147,410

155,535

(497,682)

7,891,437

531,564

46,550

8,469,550

1 REPORTING ENTITY

The Group comprises of the following companies

Parent Company

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

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

Power Division: manufacturing and distribution of transformers, switchgears, energy meters, power transformers, construction of grid stations and equipment procurement and construction (EPC).

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

Subsidiary Company

PEL marketing ( Private ) Limited ( PMPL) was incorporated in Pakistan on August 11, 2011 as a private limited company under the companies ordinance 1984. Registered office of PMPL is situated at 17 Aziz Avenue, canal bank Gulberg V, Lahore. The principal activity of PMPL is marketing and sale of domestic appliances. PMPL is wholly owned subsidiary of PEL.

This interim consolidated financial information is not audited and has been presented in condensed form and does not include all the information and disclosures as are required to be provided or made in a full set of annual financial statements. This condensed interim consolidated financial information should be read in conjunction with the audited financial statements of the Group for the year ended December 31, 2015.

NOTES TO THE CONDENSED INTERIMCONSOLIDATED FINANCIAL INFORMATIONFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)

10 | | 11

2.2 Basis of measurement

This condensed interim consolidated financial information has been prepared under the historical cost convention except for property, plant and equipment at revalued amounts and certain financial instruments at fair value/amortized cost. In this financial information, except for the amounts reflected in the statement of cash flows, all transactions have been accounted for on accrual basis.

2.3 Functional currency

This financial information is prepared in Pak Rupees which is the Group's functional currency.

The accounting policies and the methods of computation adopted in the preparation of this condensed interim financial information are the same as those applied in the preparation of the financial statements for the year ended December 31, 2015.

3 ACCOUNTING POLICIES AND METHODS OF COMPUTATION

5 ISSUED, SUBSCRIBED AND PAID UP CAPITAL

372,751,051 273,214,754

137,500 137,500

408,273 408,273

6,040,820 6,040,820

118,343,841 118,343,841

497,681,485 398,145,188

44,957,592 44,957,592

542,639,077 443,102,780

3,727,511 2,732,148

1,375 1,375

4,083 4,083

60,408 60,408

1,183,439 1,183,439

4,976,816 3,981,453

Issued for cash

Issued for other than cash

-against machinery

-Issued as bonus shares

A class preference shares of Rs 10 each

-against conversion of preference shares

Ordinary shares of Rs.10 each

-against acquisition of

PEL Appliances Limited

Issued for cash 449,576 449,576

5,426,392 4,431,029

4 AUTHORIZED CAPITAL

62,500,000

37,500,000

100,000,000

600,000,000

March 31 December 31

2016 2015

Rupees in thousand

March 31

Number of shares

500,000,000 500,000,000

62,500,000

37,500,000

100,000,000

600,000,000

December 31

5,000,000 5,000,000

625,000

375,000

1,000,000 1,000,000

6,000,000 6,000,000

Ordinary shares of Rs. 10 each

'A' class preference shares of Rs. 10 each

'B' class preference shares of Rs. 10 each

12 | | 13

398,145,188

5,629,976

(674,491)

(1,076,276)

3,879,209

398,145,188

99,536,297

497,681,485

4,955,485

(272,093)

(987,943)

3,697,305

5.1 Reconciliation of number of ordinary shares

As at beginning of the period / year

Add: Issued during the year as right ordinary shares

6 REDEEMABLE CAPITAL

Issued during the period / year

Redeemed during the year

Current portion presented under current liabilities

As at end of the period / year

2016 2015Number of shares

2016 2015Rupees in thousands

4,955,4854,685,248

7 LONG-TERM FINANCES - SECURED

Obtained during the period / year

Repaid during the period / year

8 LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE

Present value of minimum lease payments

(830,916)

2,186,511

130,812

(69,463)

61,349

2,062,633

(2,147,266)

3,102,060

3,017,427

(716,229)

2,063,861

154,309

(88,033)

66,276

(237,338)

3,017,428

2,780,090

This financial information is prepared in Pak Rupees which is the Group's functional currency.

3 ACCOUNTING POLICIES AND METHODS OF COMPUTATION

372,751,051 273,214,754

137,500 137,500

408,273 408,273

6,040,820 6,040,820

118,343,841 118,343,841

497,681,485 398,145,188

44,957,592 44,957,592

542,639,077 443,102,780

3,727,511 2,732,148

1,375 1,375

4,083 4,083

60,408 60,408

1,183,439 1,183,439

4,976,816 3,981,453

Issued for cash

-against machinery

5,426,392 4,431,029

62,500,000

37,500,000

100,000,000

600,000,000

2016 2015

Rupees in thousand

March 31

Number of shares

500,000,000 500,000,000

62,500,000

37,500,000

100,000,000

600,000,000

December 31

5,000,000 5,000,000

625,000

375,000

1,000,000 1,000,000

6,000,000 6,000,000

12 | | 13

398,145,188

5,629,976

(674,491)

(1,076,276)

3,879,209

398,145,188

99,536,297

497,681,485

4,955,485

(272,093)

(987,943)

3,697,305

4,955,4854,685,248

(830,916)

2,186,511

130,812

(69,463)

61,349

2,062,633

(2,147,266)

3,102,060

3,017,427

(716,229)

2,063,861

154,309

(88,033)

66,276

(237,338)

3,017,428

2,780,090

(1,356)

54,701

53,345

44,439

10,420

54,701

(2,038)

52,663

42,243

10,420

12 LONG TERM INVESTMENTS

Kohinoor Power Company Limited

Ownership interest 23.10 %

Cost of investment

2,910,600 shares (December 31, 2015: 2,910,600 shares)

Share of post acquisition profit- net of dividend received

Less: provision for impairment in value of investment

Investment in associate at equity method - Quoted

14 | | 15

9 SHORT TERM BORROWING

10 CONTINGENCIES AND COMMITMENTS

These facilities have been obtained from various banks under mark-up arrangements for working capital requirements. These facilities are secured against the pledge/hypothecation of raw material and components, work-in-process, finished goods, machinery, spare parts, charge over book debts, shares of public companies and other assets of the Group.

There is no material change in contingencies and commitments as disclosed in the notes to the financial statements for the year ended December 31, 2015.

11 PROPERTY, PLANT AND EQUIPMENT

Operating assets 11.1

Capital work-in-progress

15,446,464

63,148

15,509,612

15,326,029

619,149

15,945,178

14,407,147

1,905,504

16,312,651

126,445

739,742

15,446,464

1,823,488

19,266

54,542

1,905,504

15,446,465

93,126

15,539,591

17,965

195,597

15,326,029

52,528

35,932

93,126

11.1 Operating assets

Written down value at beginning of the period / year

Additions during the period / year 11.1.1

Written down value of the assets disposed off / adjustments

Depreciation charged during the period / year

11.1.1 Additions during the period / year

Plant and machinery

Office equipment and furniture

Computer hardware and allied items

Vehicles

2016 2015Rupees in thousands Note

13 REVENUE

Sales - local 5,620,861

Sales - export 247,868

5,868,729

Less: - sales tax and excise duty 639,654

- trade discounts 286,056

925,710

4,943,019

6,380,908

1,368,620

7,749,528

866,587

384,662

1,251,249

6,498,279

March 31 March 31

2016 2015

(Un-Audited)

Rupees in thousand

(Un-Audited)

(1,356)

54,701

53,345

44,439

10,420

54,701

(2,038)

52,663

42,243

10,420

12 LONG TERM INVESTMENTS

Cost of investment

2,910,600 shares (December 31, 2015: 2,910,600 shares)

Share of post acquisition profit- net of dividend received

Investment in associate at equity method - Quoted

14 | | 15

These facilities have been obtained from various banks under mark-up arrangements for working capital requirements. These facilities are secured against the pledge/hypothecation of raw material and components, work-in-process, finished goods, machinery, spare parts, charge over book debts, shares of public companies and other assets of the Group.

15,446,464

63,148

15,509,612

15,326,029

619,149

15,945,178

14,407,147

1,905,504

16,312,651

126,445

739,742

15,446,464

1,823,488

19,266

54,542

1,905,504

15,446,465

93,126

15,539,591

17,965

195,597

15,326,029

52,528

35,932

93,126

Plant and machinery

Vehicles

13 REVENUE

Sales - local 5,620,861

Sales - export 247,868

5,868,729

Less: - sales tax and excise duty 639,654

- trade discounts 286,056

925,710

4,943,019

6,380,908

1,368,620

7,749,528

866,587

384,662

1,251,249

6,498,279

March 31 March 31

2016 2015

(Un-Audited)

Rupees in thousand

(Un-Audited)

12,903 10,955

413 552

Other related parties:

24,335 19,840

Relationship Nature of transaction

Key Management Personnel Short-term employee benefits

Post employment benefits

Associated companies Services acquired

Earnings 531,564 732,611

Less: dividend on preference shares 10,677 10,677

520,886 721,934

Number of shares

434,622,427

429,722,619

Basic earnings per share (Rupees) 1.20 1.68

Number

Weighted average number of ordinary shares.

EARNINGS PER SHARE - BASIC AND DILUTED

Basic and diluted earnings per share have been calculated through dividing Profit as stated above by weighted average number of ordinary shares.

16 TRANSACTIONS WITH RELATED PARTIES

Related parties from the Group's perspective comprise associated companies, post employment benefit plans and key management personnel. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, and includes the Chief Executive and Directors of the Company.

Transactions with key management personnel are limited to payment of short term employee benefits only. The Group in the normal course of business carries out various transactions with other related parties and continues to have a policy whereby all such transactions are carried out on commercial terms and conditions which are equivalent to those prevailing in an arm's length transaction.

Details of transactions and balances with related parties is as follows:

16.1All transactions with related parties have been carried out on commercial terms and conditions.

This condensed interim financial information has been approved by the Board of Directors of the Company and authorized for issue on April 26 , 2016.

There are no other significant activities since December 31, 2015 affecting this condensed interim financial information.

17 DATE OF AUTHORIZATION FOR ISSUE

18 OTHERS

16 | | 17

March 31 March 31

2016 2015

(Un-Audited)

Rupees in thousand

(Un-Audited)

14 COST OF SALES

Raw material consumed

Direct wages

Factory overhead

Work-in-process

-at beginning of period

-at end of period

Cost of goods manufactured

Finished goods

-at end of period

Cost of sales

2,568,541

156,406

445,258

3,170,205

1,262,830

(1,138,270)

124,560

3,294,765

877,488

(908,314)

(30,826)

3,263,939

3,918,060

183,294

522,626

4,623,980

1,143,657

(841,205)

302,452

4,926,432

1,125,190

(1,305,433)

(180,243)

4,746,189

March 31 March 31

2016 2015

(Un-Audited)

Rupees in thousand

(Un-Audited)

12,903 10,955

413 552

24,335 19,840

Associated companies Services acquired

Earnings 531,564 732,611

Less: dividend on preference shares 10,677 10,677

520,886 721,934

Number of shares

434,622,427

429,722,619

Basic earnings per share (Rupees) 1.20 1.68

Number

Weighted average number of ordinary shares.

Basic and diluted earnings per share have been calculated through dividing Profit as stated above by weighted average number of ordinary shares.

Related parties from the Group's perspective comprise associated companies, post employment benefit plans and key management personnel. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, and includes the Chief Executive and Directors of the Company.

Transactions with key management personnel are limited to payment of short term employee benefits only. The Group in the normal course of business carries out various transactions with other related parties and continues to have a policy whereby all such transactions are carried out on commercial terms and conditions which are equivalent to those prevailing in an arm's length transaction.

This condensed interim financial information has been approved by the Board of Directors of the Company and authorized for issue on April 26 , 2016.

18 OTHERS

16 | | 17

March 31 March 31

2016 2015

(Un-Audited)

Rupees in thousand

(Un-Audited)

14 COST OF SALES

Direct wages

Factory overhead

Work-in-process

-at end of period

Finished goods

-at end of period

Cost of sales

2,568,541

156,406

445,258

3,170,205

1,262,830

(1,138,270)

124,560

3,294,765

877,488

(908,314)

(30,826)

3,263,939

3,918,060

183,294

522,626

4,623,980

1,143,657

(841,205)

302,452

4,926,432

1,125,190

(1,305,433)

(180,243)

4,746,189

March 31 March 31

2016 2015

(Un-Audited)

Rupees in thousand

(Un-Audited)

Condensed InterimFinancial Information

This page has been left blank intentionally

Condensed InterimFinancial Information

This page has been left blank intentionally

ASSETS

NON-CURRENT ASSETS

Intangible assets

CURRENT ASSETS

Stock in trade

Trade debts

Short term advances

Other receivables

Advance income tax

15,945,178

334,656

10,520

357,598

782,256

6,459,376

5,770,543

1,071,423

984,620

1,365,026

440,003

83,925

930,138

551,695

18,439,005

35,086,957

15,509,612

338,321

289,784

793,379

5,485,816

5,583,326

1,023,647

913,881

1,331,229

390,118

85,524

793,282

427,378

16,827,580

32,974,303

March 312016

16,647,952 16,146,723

TOTAL ASSETS

March 312016

4,757,766

4,804,200

The annexed notes from 1 to 18 form an integral part of this condensed interim financial information.

35,086,957

Capital reserve

Accumulated profit

5,426,392

4,279,947

5,608,651

15,314,990

4,431,029

1,293,858

5,258,423

Deferred taxation

Deferred income

3,697,305

2,063,861

66,276

1,793,623

42,364

3,879,209

2,186,511

61,349

1,804,911

42,900

7,663,429 7,974,880

CURRENT LIABILITIES

752,074

235,462

4,571,031

1,792,205

7,350,772

730,201

260,904

4,668,901

1,976,655

7,636,661

March 31,2016

December 31,2015Rupees in thousands

CONDENSED INTERIMBALANCE SHEET

AS AT MARCH 31, 2016

20 | | 21

32,974,303

ASSETS

NON-CURRENT ASSETS

Intangible assets

CURRENT ASSETS

Stock in trade

Trade debts

Short term advances

Other receivables

Advance income tax

15,945,178

334,656

10,520

357,598

782,256

6,459,376

5,770,543

1,071,423

984,620

1,365,026

440,003

83,925

930,138

551,695

18,439,005

35,086,957

15,509,612

338,321

289,784

793,379

5,485,816

5,583,326

1,023,647

913,881

1,331,229

390,118

85,524

793,282

427,378

16,827,580

32,974,303

March 312016

16,647,952 16,146,723

TOTAL ASSETS

March 312016

4,757,766

4,804,200

35,086,957

Capital reserve

Accumulated profit

5,426,392

4,279,947

5,608,651

15,314,990

4,431,029

1,293,858

5,258,423

Deferred taxation

Deferred income

3,697,305

2,063,861

66,276

1,793,623

42,364

3,879,209

2,186,511

61,349

1,804,911

42,900

7,663,429 7,974,880

CURRENT LIABILITIES

752,074

235,462

4,571,031

1,792,205

7,350,772

730,201

260,904

4,668,901

1,976,655

7,636,661

March 31,2016

December 31,2015Rupees in thousands

CONDENSED INTERIMBALANCE SHEET

AS AT MARCH 31, 2016

20 | | 21

32,974,303

CONDENSED INTERIMCASH FLOW STATEMENTFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)

March 31,2016

March 31,2015Rupees in thousands

CONDENSED INTERIM

PROFIT AND LOSS ACCOUNT / STATEMENT OF COMPREHENSIVE INCOMEFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)

Adjustments for non cash items

Finance cost paid

Dividend

Income tax paid

Net cash (used in) / generated from operating activities

(Decrease) in long term deposits

(Decrease) / in liabilities against finance leaseincrease

(Decrease) in short term borrowings

365,877

472,055

837,932

(1,370,119)

(532,187)

(289,453)

(2,542)

(176,013)

(468,880)

(1,001,067)

(580,515)

18,073

(67,814)

(630,256)

(507,574)

(45,116)

2,406,200

(97,870)

1,755,640

124,317

427,378

551,695

397,242

482,136

879,378

33,008

912,386

(219,396)

(7,244)

(31,777)

(258,417)

653,969

(120,172)

(5,215)

(122,866)

(126,360)

(436,194)

(554,948)

(23,845)

287,935

264,090

The annexed notes from 1 to 18 form an integral part of this condensed interim financial information

22 | | 23

March 312016

Revenue 13

Revenue - net

Cost of sales 14

Gross profit

Other income

Distribution cost

Finance cost

Earnings per share - basic and diluted - Rupees 15

5,623,535

(866,587)

4,756,948

(3,866,448)

890,500

11,028

901,528

(108,458)

(264,011)

365,877

(62,199)

303,678

4,637,494

(639,654)

3,997,840

(3,110,319)

887,521

892,976

(87,952)

(295,841)

397,242

(21,453)

375,789

(271,641) (199,893)

Operating profit 629,888 693,083

CONDENSED INTERIMCASH FLOW STATEMENTFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)

March 31,2016

March 31,2015Rupees in thousands

CONDENSED INTERIM

PROFIT AND LOSS ACCOUNT / STATEMENT OF COMPREHENSIVE INCOMEFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)

Adjustments for non cash items

Finance cost paid

Dividend

Income tax paid

Net cash (used in) / generated from operating activities

(Decrease) in long term deposits

(Decrease) / in liabilities against finance leaseincrease

(Decrease) in short term borrowings

365,877

472,055

837,932

(1,370,119)

(532,187)

(289,453)

(2,542)

(176,013)

(468,880)

(1,001,067)

(580,515)

18,073

(67,814)

(630,256)

(507,574)

(45,116)

2,406,200

(97,870)

1,755,640

124,317

427,378

551,695

397,242

482,136

879,378

33,008

912,386

(219,396)

(7,244)

(31,777)

(258,417)

653,969

(120,172)

(5,215)

(122,866)

(126,360)

(436,194)

(554,948)

(23,845)

287,935

264,090

22 | | 23

March 312016

Revenue 13

Revenue - net

Cost of sales 14

Gross profit

Other income

Distribution cost

Finance cost

Earnings per share - basic and diluted - Rupees 15

5,623,535

(866,587)

4,756,948

(3,866,448)

890,500

11,028

901,528

(108,458)

(264,011)

365,877

(62,199)

303,678

4,637,494

(639,654)

3,997,840

(3,110,319)

887,521

892,976

(87,952)

(295,841)

397,242

(21,453)

375,789

(271,641) (199,893)

Operating profit 629,888 693,083

Revenue reserves

Premium on

issue of shares TotalShare capital

Capital reserves

Rupees in thousand

4,431,029

995,363

5,426,392

1,293,858

2,986,089

4,279,947

3,876,195

375,789

52,009

4,303,993

1,296,577 155,535

(497,682) 5,258,423

303,678

46,550

5,608,651

9,601,082

375,789

52,009

10,028,880

1,296,577 155,535

(497,682)

10,983,310

303,678

3,981,452

46,550

15,314,989

NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)

1 REPORTING ENTITY

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

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

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

Appliances Division: manufacturing, assembling and distribution of refrigerators, air conditioners, microwave ovens, televisions, generators and washing machines.

This interim consolidated financial information is not audited and has been presented in condensed form and does not include all the information and disclosures as are required to be provided or made in a full set of annual financial statements. This condensed interim consolidated financial information should be read in conjunction with the audited financial statements of the company for the year ended December 31, 2015.

This financial information is prepared in Pak Rupees which is the Company's functional currency.M. MURAD SAIGOLChief Executive Officer

24 | | 25

Revenue reserves

Premium on

issue of shares TotalShare capital

Capital reserves

Rupees in thousand

4,431,029

995,363

5,426,392

1,293,858

2,986,089

4,279,947

3,876,195

375,789

52,009

4,303,993

1,296,577 155,535

(497,682) 5,258,423

303,678

46,550

5,608,651

9,601,082

375,789

52,009

10,028,880

1,296,577 155,535

(497,682)

10,983,310

303,678

3,981,452

46,550

15,314,989

NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONFOR THE QUARTER ENDED MARCH 31, 2016 (Un-Audited)

1 REPORTING ENTITY

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

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

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

Appliances Division: manufacturing, assembling and distribution of refrigerators, air conditioners, microwave ovens, televisions, generators and washing machines.

This interim consolidated financial information is not audited and has been presented in condensed form and does not include all the information and disclosures as are required to be provided or made in a full set of annual financial statements. This condensed interim consolidated financial information should be read in conjunction with the audited financial statements of the company for the year ended December 31, 2015.

This financial information is prepared in Pak Rupees which is the Company's functional currency.M. MURAD SAIGOLChief Executive Officer

24 | | 25

3 ACCOUNTING POLICIES

26 | | 27

372,751,051 273,214,754

137,500 137,500

408,273 408,273

6,040,820 6,040,820

118,343,841 118,343,841

497,681,485 398,145,188

44,957,592 44,957,592

542,639,077 443,102,780

3,727,511 2,732,148

1,375 1,375

4,083 4,083

60,408 60,408

1,183,439 1,183,439

4,976,816 3,981,453

Issued for cash

-against machinery

5,426,392 4,431,029

62,500,000

37,500,000

100,000,000

600,000,000

2016 2015

Rupees in thousand

March 31

Number of shares

500,000,000 500,000,000

62,500,000

37,500,000

100,000,000

600,000,000

December 31

5,000,000 5,000,000

625,000

375,000

1,000,000 1,000,000

6,000,000 6,000,000

398,145,188

5,629,976

(674,491)

(1,076,276)

3,879,209

398,145,188

99,536,297

497,681,485

4,955,485

(272,093)

(987,943)

3,697,305

4,955,4854,685,248

(830,916)

2,186,511

130,812

(69,463)

61,349

2,062,633

(2,147,266)

3,102,060

3,017,427

(716,229)

2,063,861

154,309

(88,033)

66,276

(237,338)

3,017,428

2,780,090

3 ACCOUNTING POLICIES

26 | | 27

372,751,051 273,214,754

137,500 137,500

408,273 408,273

6,040,820 6,040,820

118,343,841 118,343,841

497,681,485 398,145,188

44,957,592 44,957,592

542,639,077 443,102,780

3,727,511 2,732,148

1,375 1,375

4,083 4,083

60,408 60,408

1,183,439 1,183,439

4,976,816 3,981,453

Issued for cash

-against machinery

5,426,392 4,431,029

62,500,000

37,500,000

100,000,000

600,000,000

2016 2015

Rupees in thousand

March 31

Number of shares

500,000,000 500,000,000

62,500,000

37,500,000

100,000,000

600,000,000

December 31

5,000,000 5,000,000

625,000

375,000

1,000,000 1,000,000

6,000,000 6,000,000

398,145,188

5,629,976

(674,491)

(1,076,276)

3,879,209

398,145,188

99,536,297

497,681,485

4,955,485

(272,093)

(987,943)

3,697,305

4,955,4854,685,248

(830,916)

2,186,511

130,812

(69,463)

61,349

2,062,633

(2,147,266)

3,102,060

3,017,427

(716,229)

2,063,861

154,309

(88,033)

66,276

(237,338)

3,017,428

2,780,090

12 LONG-TERM INVESTMENTS

Investments in related parties

Wholly owned subsidiary at cost - Unquoted

Pel Marketing Private Limited

10,000 shares (December 31, 2015: 10,000 shares)of Rs. 10 each

Associate at cost - Quoted 12.1

10,420

10,520

54,701

44,281

10,420

54,701

45,795

Cost of investment

2,910,600 shares (2015: 2,910,600 shares)

Investment in associate at cost - Quoted

13 REVENUE

Sales - local

Sales - export

Less: - sales tax and excise duty

- trade discounts

4,254,915

1,368,620

5,623,535

866,587

4,756,948

4,389,626

247,868

4,637,494

639,654

3,997,840

28 | | 29

These facilities have been obtained from various banks under mark-up arrangements for working capital requirements. These facilities are secured against the pledge/hypothecation of raw material and components, work-in-process, finished goods, machinery, spare parts, charge over book debts, shares of public companies and other assets of the Company.

15,446,464

63,148

15,509,612

15,326,029

619,149

15,945,178

14,407,147

1,905,504

16,312,651

126,445

739,742

15,446,464

1,823,488

19,266

54,542

1,905,504

15,446,465

93,126

15,539,591

17,965

195,597

15,326,029

52,528

35,932

93,126

Plant and machinery

Vehicles

(Un-Audited)

March 31 March 31

(Un-Audited)

12 LONG-TERM INVESTMENTS

Investments in related parties

Wholly owned subsidiary at cost - Unquoted

Pel Marketing Private Limited

10,000 shares (December 31, 2015: 10,000 shares)of Rs. 10 each

Associate at cost - Quoted 12.1

10,420

10,520

54,701

44,281

10,420

54,701

45,795

Cost of investment

2,910,600 shares (2015: 2,910,600 shares)

Investment in associate at cost - Quoted

13 REVENUE

Sales - local

Sales - export

Less: - sales tax and excise duty

- trade discounts

4,254,915

1,368,620

5,623,535

866,587

4,756,948

4,389,626

247,868

4,637,494

639,654

3,997,840

28 | | 29

These facilities have been obtained from various banks under mark-up arrangements for working capital requirements. These facilities are secured against the pledge/hypothecation of raw material and components, work-in-process, finished goods, machinery, spare parts, charge over book debts, shares of public companies and other assets of the Company.

15,446,464

63,148

15,509,612

15,326,029

619,149

15,945,178

14,407,147

1,905,504

16,312,651

126,445

739,742

15,446,464

1,823,488

19,266

54,542

1,905,504

15,446,465

93,126

15,539,591

17,965

195,597

15,326,029

52,528

35,932

93,126

Plant and machinery

Vehicles

(Un-Audited)

March 31 March 31

(Un-Audited)

Basic earnings per share (Rupees) 0.67

14 COST OF SALES

Direct wages

Factory overhead

Work-in-process

-at end of period

Finished goods

-at end of period

Cost of sales

The calculation of basic and diluted profit per ordinaryshare is based on the following data:

Profits for the period

Less: dividend payable on preference shares

Profit attributable to ordinary shares

2,927,120

183,294

522,625

3,633,040

1,143,657

(841,205)

302,452

3,935,492

429,020

(498,064)

(69,044)

3,866,448

303,678

10,677

293,001

Number of shares

434,622,427

2,437,345

156,406

445,258

3,039,009

1,262,830

(1,138,270)

124,560

3,163,569

700,790

(754,040)

(53,250)

3,110,319

375,789

10,677

365,112

429,722,619

Number

Weighted average number of ordinary shares for the purpose of basic profit

Subsidiary:

2,248,644 2,493,715

12,903 10,955

413 552

24,335

19,840

Red Communication Art Private Limited Purchase of services

PEL Marketing Private Limited Sales of goods and services

This condensed interim financial information has been approved by the Board of Directors of the Company and authorized for issue on April 26, 2016.

18 OTHERS

| 3130 |

(Un-Audited)

March 31

2015Rupees in thousands Note

(Un-Audited)

Basic and diluted earnings per share have been calculated through dividing profit as stated above by weighted average number of ordinary shares.

Related parties from the company's perspective comprise associated companies, post employment benefit plans and key management personnel. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, and includes the Chief Executive and Directors of the Company.

Transactions with key management personnel are limited to payment of short term employee benefits only. The company in the normal course of business carries out various transactions with other related parties and continues to have a policy whereby all such transactions are carried out on commercial terms and conditions which are equivalent to those prevailing in an arm's length transaction.

(Un-Audited)

March 31

2015Rupees in thousands

(Un-Audited)

Basic earnings per share (Rupees) 0.67

14 COST OF SALES

Direct wages

Factory overhead

Work-in-process

-at end of period

Finished goods

-at end of period

Cost of sales

The calculation of basic and diluted profit per ordinaryshare is based on the following data:

Profits for the period

Less: dividend payable on preference shares

Profit attributable to ordinary shares

2,927,120

183,294

522,625

3,633,040

1,143,657

(841,205)

302,452

3,935,492

429,020

(498,064)

(69,044)

3,866,448

303,678

10,677

293,001

Number of shares

434,622,427

2,437,345

156,406

445,258

3,039,009

1,262,830

(1,138,270)

124,560

3,163,569

700,790

(754,040)

(53,250)

3,110,319

375,789

10,677

365,112

429,722,619

Number

Weighted average number of ordinary shares for the purpose of basic profit

Subsidiary:

2,248,644 2,493,715

12,903 10,955

413 552

24,335

19,840

Red Communication Art Private Limited Purchase of services

PEL Marketing Private Limited Sales of goods and services

This condensed interim financial information has been approved by the Board of Directors of the Company and authorized for issue on April 26, 2016.

18 OTHERS

| 3130 |

(Un-Audited)

March 31

2015Rupees in thousands Note

(Un-Audited)

Basic and diluted earnings per share have been calculated through dividing profit as stated above by weighted average number of ordinary shares.

Related parties from the company's perspective comprise associated companies, post employment benefit plans and key management personnel. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, and includes the Chief Executive and Directors of the Company.

Transactions with key management personnel are limited to payment of short term employee benefits only. The company in the normal course of business carries out various transactions with other related parties and continues to have a policy whereby all such transactions are carried out on commercial terms and conditions which are equivalent to those prevailing in an arm's length transaction.

(Un-Audited)

March 31

2015Rupees in thousands

(Un-Audited)

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

www.pel.com.pk

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

www.pel.com.pk

Interim March 2016 - PEL · ended March 31, 2016. Alhamdulillah, your company has achieved Sales...

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