Professional Documents
Culture Documents
Financial Information
for the Quarter/Six Months
Ended December 31, 2007
DIRECTORS’ REVIEW OF THE CONDENSED INTERIM FINANCIAL
INFORMATION FOR THE QUARTER & HALF YEAR
ENDED DECEMBER 31, 2007
We are pleased to present your Company’s individual and consolidated un-audited condensed interim financial
information for the Quarter & Half-year ended December 31, 2007. The condensed interim consolidated financial
information incorporate the Company’s 98% owned Farmacia retail venture, as well as its subsidiary BF Biosciences
Limited which is now expected to become operational by the middle of this year. Insha’Allah.
The Quarter under review has been one of turbulence and great tragedy for the nation. Uncertainty following the
imposition of emergency on November 3rd was greatly compounded in December by the assassination of Mohtarma
Benazir Bhutto. Consequently December, which already had fewer working days because of Eid holidays, was
badly hit in terms of sales. Unfortunately, the company also faced certain supply delays during the quarter on its
imported biotech products, resulting in sporadic shortages, which also hampered your company’s sales.
Net Sales of your Company’s pharmaceutical operations showed a decrease of 11.53% for the 2nd Quarter, from
Rs. 240.098 Million of the same Quarter of the last year to 212.406 Million during the Quarter under review. For the
six months ended December 31, 2007, our Net Sales closed at Rs. 453.816 Million, a decrease of 0.46% over the
figure of Rs. 455.913 Million achieved during the first half of the previous year. Similarly, Consolidated Net Sales
including Farmacia also showed a down fall in comparison with last year’s 2nd Quarter and Half-year under review.
For the Quarter ended December 31, 2007 Consolidated Net Sales stood at Rs. 234.351 Million, showing a decrease
of 11.06% over Rs. 263.505 Million achieved in the corresponding quarter of last year. Consolidated Net Sales for
the half year were Rs. 502.369 Million which were decreased by 0.27% in comparison with the Sales of Rs. 503.749
Million for the same period of last year.
Consequently, the cost of sales of your company also decreased by 10.52% and 2.26% as compared to the cost of
sales of the 2nd Quarter and six months of last year respectively, thus resulting in a decreased Gross Profit (GP)
Ratio of 55.70% for 2nd Quarter compared to the 56.21% of the same quarter last year and a marginal decrease in
GP Ratio of 56.42% for six months in comparison with 55.62% for the same period last year. In absolute terms the
GP of the 2nd Quarter stood at Rs. 118.318 Million, showing a decrease of 12.33% over the GP of Rs. 134.951
Million in comparison with the same 2nd quarter of last year. However the GP for six months stood at Rs. 256.026
Million with an increase to 0.97% over the GP of Rs. 253.566 Million in comparison with the same six months of last
year. The GP margins of the consolidated results also showed the similar trend in comparison with the same
quarter and six months of last year.
Your Company’s Net Profit Before Tax showed a decrease of 5.72% in 2nd Quarter and increase of 5.09% for six
months as a whole respectively with an absolute Rs. 4.193 Million over the figure of Rs. 73.282 Million for 2nd
quarter last year and registering an overall increase of Rs. 6.888 Million over the figure of Rs. 135.288 Million for six
months last year, respectively.
Net Profit After Tax (NPAT) of your Company stood at Rs. 50.961 Million for the 2nd Quarter with a decrease of
6.99% over the NPAT of Rs. 54.792 Million achieved during the same quarter last year. Simultaneously, the NPAT
for the Half Year stands at Rs. 105.634 Million, with an increase of 1.78% over the figure of Rs. 103.788 Million
achieved during the corresponding six months of last year.
Based on the net profit for the quarter and six months ended December 31, 2007 the Earning per Share (EPS), both
basic and diluted, stand at Rs. 3.52 and Rs. 7.30 per share respectively, compared to an EPS of Rs. 3.79 and Rs.
7.17 of same respective periods of last year, on the expended capital of Rs. 144.673 Million after the issuance of
bonus share during the 1st Quarter.
Future Scenario
As mentioned earlier, the Quarter just ended was an immensely challenging period for the Company and for Pakistan.
It is prayed that we are able to achieve a measure of stability during the remainder of the year, and that the
transition to democracy is a fair, transparent and peaceful one.
Any issues of stability aside, the coming six months should bring greater growth and profitability compared to the
first half of the year. The Company also has a few launches planned in the field of cardiology that should help bring
an improved position in the top line and bottom line of the Company.
Introduction
We have reviewed the accompanying condensed interim balance sheet of Ferozsons Laboratories Limited
(“the company”) as of December 31, 2007 and the related condensed interim profit and loss account,
condensed interim cash flow statement and condensed interim statement of changes in equity for the
six-months’ period then ended (the interim financial information). Management is responsible for the
preparation and fair presentation of this interim financial information in accordance with the approved
accounting standards as applicable in Pakistan. Our responsibility is to express a conclusion on this
interim financial information based on our review. The figures for the quarter ended December 31, 2007
in the condensed interim profit and loss account have not been reviewed as we are required to review
only the cumulative figures for the half year ended December 31, 2007.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410,
“Review of Interim Financial Information Performed by the Independent Auditor of the Entity.” A review
of interim financial information consists of making inquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with International Standards on Auditing and
consequently does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying
interim financial information as of and for the six months’ period ended December 31, 2007, is not
prepared in all material respects, in accordance with the approved accounting standards as applicable
in Pakistan.
CURRENT LIABILITIES
Trade and other payables 131,284,946 131,024,480
Accrued markup of long term financing 3,925,860 1,610,432
Current portion of long term financing 54,987,500 17,312,500
Current maturity of liabilities against assets
subject to finance lease 2,826,027 4,310,822
Current portion of interest rate swap 6,124,237 -
Provision for taxation - net 5,393,516 -
204,542,086 154,258,234
_______________ ______________
1,394,661,440 1,218,361,366
=================== ==================
The annexed notes 1 to 12 form an integral part of this condensed interim information.
Rawalpindi
January 31, 2008
AS AT DECEMBER 31, 2007
FIXED ASSETS
Property, plant and equipment 5 560,294,128 539,455,959
CURRENT ASSETS
Stores, spares and loose tools 3,460,603 4,280,632
Stock in trade 142,420,047 133,816,190
Trade debts - considered good 30,788,877 31,937,773
Current portion of long term loan 54,987,500 17,312,500
Loans and advances - considered good 26,755,061 14,546,615
Deposits and prepayments 3,770,965 3,015,174
Interest accrued 3,925,860 2,485,196
Other receivables 17,263,702 14,103,388
Advance income tax - net - 3,362,895
Short term investments 7 152,805,951 186,969,198
Cash and bank balances 76,055,752 41,680,940
512,234,318 453,510,501
_______________ ______________
1,394,661,440 1,218,361,366
=================== ==================
The annexed notes 1 to 12 form an integral part of this condensed interim financial information.
Rawalpindi
January 31, 2008 Chairperson and Chief Executive Director
CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2007
The annexed notes 1 to 12 form an integral part of this condensed interim financial information.
Rawalpindi
January 31, 2008 Chairperson and Chief Executive Director
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2007
The annexed notes 1 to 12 form an integral part of this condensed interim finanacial information.
Rawalpindi
January 31, 2008 Chairperson and Chief Executive Director
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2007
2. Basis of preparation
10.1 Contingencies:
10.2 Commitments:
These financial statements were authorized for issue by the board of directors of
the Company in their meeting held on January 31, 2008.
Rawalpindi
January 31, 2008 Chairperson and Chief Executive Director
Condensed Interim
Consolidated Financial
Information for the
Quarter/Six Months
Ended December 31, 2007
CONDENSED INTERIM CONSOLIDATED BALANCE
CURRENT LIABILITIES
Trade and other payables 142,977,669 157,342,421
Accrued markup of long term financing 3,925,860 1,610,432
Current portion of long term financing 54,987,500 17,312,500
Current maturity of liabilities against assets
subject to finance lease 2,826,027 4,310,822
Current portion of interest rate swap 6,124,237 -
Provision for taxation - net 5,564,721 -
216,406,014 180,576,175
_______________ ______________
1,434,239,457 1,272,535,926
=================== ==================
CONTINGENCIES AND COMMITMENTS 9 - -
The annexed notes 1 to 11 form an integral part of this condensed interim consolidated
financial information.
Rawalpindi
January 31, 2008
SHEET AS AT DECEMBER 31, 200 7
FIXED ASSETS
CURRENT ASSETS
_______________ ______________
1,434,239,457 1,272,535,926
=================== ==================
Attributable to:
The annexed notes 1 to 11 form an integral part of this condensed interim consolidated financial information.
Rawalpindi
January 31, 2008 Chairperson and Chief Executive Director
CONDENSED INTERIM CONSOLIDATED
CASH FLOW STATEMENT (UN-AUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2007
Rawalpindi
January 31, 2008 Chairperson and Chief Executive Director
CONDENSED INTERIM CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2007
Share Capital Revenue reserve Total Minority Total
capital reserve Unappropriated Interest Equity
profit
(Rupees) (Rupees) (Rupees) (Rupees) (Rupees) (Rupees)
---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------------
Balance as at June 30, 2006 100,467,200 321,843 415,926,970 516,716,013 28,444,580 545,160,593
Total recognized income for the period — — 106,513,379 106,513,379 125,255 106,638,634
---------------------------------------- ------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------- -----------------------------------
Balance as at December 31, 2006 120,560,640 321,843 462,160,029 583,042,512 28,569,835 611,612,347
=============== ============ =============== =============== ============= =============
Balance as at June 30, 2007 120,560,640 321,843 560,993,936 681,876,419 28,584,807 710,461,226
Total recognized income for the period — — 107,897,132 107,897,132 80,999 107,978,131
---------------------------------------- ------------------------------- ---------------------------------------- ---------------------------------------- ----------------------------------- -----------------------------------
Balance as at December 31, 2007 144,672,768 321,843 566,414,524 711,409,135 28,665,806 740,074,941
=============== ============ =============== =============== ============= =============
The annexed notes 1 to 11 form an integral part of this condensed interim consolidated financial information.
Rawalpindi
January 31, 2008 Chairperson and Chief Executive Director
NOTES TO THE CONDENSED INTERIM CONSOLIDATED
FINANCIAL INFORMATION (UN-AUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2007
Commitments:
ii Capital Expenditure 104,573,676 134,680,528
iii Letter of credits other than for
capital expenditure 33,992,644 33,271,273
10. GENERAL
These financial statements were authorized for issue by the board of directors of
the company in their meeting held on January 31, 2008.
Rawalpindi
January 31, 2008 Chairperson and Chief Executive Director