Professional Documents
Culture Documents
Contents
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Company Information Directors Review Auditors Report on Review of Interim Financial Information to the Members Condensed Interim Financial Report
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Condensed Interim Balance Sheet Condensed Interim Profit and Loss Account Condensed Interim Statement of Comprehensive Income Condensed Interim Cash Flow Statement Condensed Interim Statement of Changes in Equity Selected Explanatory Notes to the Condensed Interim Financial Report
Company Information
Board of Directors Sheikh Mukhtar Ahmed
Chairman
Bankers Askari Bank Limited Bank Alfalah Limited Bank Al Habib Limited BankIslami Pakistan Limited Barclays Bank PLC Citibank, N.A. Deutsche Bank AG Faysal Bank Limited Habib Bank Limited Habib Metropolitan Bank Limited HSBC Bank Middle East Limited JS Bank Limited MCB Bank Limited Meezan Bank Limited National Bank of Pakistan Standard Chartered Bank (Pakistan) Limited United Bank Limited Registered Office Ibrahim Centre, 1 - Ahmed Block, New Garden Town, Lahore - 54600, Pakistan. Head Office Ibrahim Centre, 15 - Club Road, Faisalabad - 38000, Pakistan. Registrars & Shares Registration Office M/s Technology Trade (Pvt) Ltd. Dagia House, 241 - C, Block - 2, P.E.C.H.S., Off: Shahrah-e-Quaideen, Karachi, Pakistan. Projects Location 38 - 40 Kilometres, Faisalabad - Sheikhupura Road, Faisalabad, Pakistan.
Muhammad Waseem Mukhtar Shahid Amin Anwarul Haque Mohammad Pervaiz Aslam Rana Mohammad Waqar Secretary Anwarul Haque - FCA Audit Committee Shahid Amin
Chairman
Mohammad Waqar
Member
Faisalabad, Pakistan.
Directors Review
The Directors of your Company are pleased to present before you the un-audited financial results of the Company for the half year ended December 31, 2011. Operating Performance During the half year under review, the polyester plant of your Company produced 105,084 tons of Polyester Staple Fibre (PSF) / Polyester chips as compared to production of 107,323 tons during the corresponding period of previous year, thus achieving an average capacity utilization of 96% as against 98% achieved during the corresponding period of previous year. Out of this production, 11,463 tons of PSF were consumed by the textile plants of your Company for the production of blended yarns as against 11,927 tons consumed during the corresponding period of previous year. The textile plants of your Company produced 16,187 tons of blended yarns of different counts during the half year as compared to 16,959 tons produced during corresponding period of previous year. Financial Performance During second quarter of the half year under review, your Company achieved net sales of Rs. 8,675 million as compared to Rs. 9,335 million during the corresponding quarter of previous year. Gross profit earned during the said quarter was Rs. 709 million as compared to Rs. 943 million during the corresponding quarter. During the half year under review, your Company achieved net sales of Rs. 18,410 million and gross profit of Rs. 1,273 million as compared to Rs. 17,690 million and Rs. 1,804 million respectively during corresponding period of previous year. Gross margins have squeezed due to high prices of heavy furnace oil and natural gas, devaluation of Pak Rupee against US Dollar and inventory losses caused by continuously falling prices of cotton and yarns. After accounting for the Companys proportionate share in profits of Allied Bank Limited, an associated company, amounting to Rs. 1,439 million during the half year as compared to Rs. 1,524 million during the corresponding period, your Company earned profit before tax of Rs. 2,559 million as against Rs. 2,631 million earned during the corresponding period. Profit after tax for the half year amounted to Rs. 2,398 million as compared to Rs. 2,147 million for the corresponding period of previous year. Balancing, Modernisation, Replacement and Expansion Polyester Staple Fibre Plant The plan to increase the overall production capacity of polyester staple fibre plant of your Company from 208,600 tons of PSF per annum to 436,100 tons is being implemented as per schedule. Major shipments against import of machinery have already arrived at site and are under installation. The management of your Company expects that commercial production will be started as per schedule. Power Generation Plant The management of your Company has decided to increase the generation capacity of its power generation plant, as reported in chairmans review of the latest Annual Report. In this regard, a letter of credit was opened in July 2011 for import of 5 power generating sets based on heavy fuel oil having a generation capacity of 5.3 MW each from NIIGATA, Japan who is the supplier of existing power generating sets of the Company. After installation, these power generating sets will add 26.5 MW to the existing 46.8 MW generation capacity of the power generation plant. Shipment of machinery is expected to start during calendar year 2012. Future Outlook Going forward, the demand of PSF in domestic market is expected to be suppressed due to excessive availability of cotton and lower capacity utilization by the downstream textile industry which is mainly because of lesser availability of power and natural gas. On the other hand, margins are expected to remain low as compared to last financial year due to rise in crude oil price in international market and increase in the rate of natural gas in domestic market. Earnings per share Earnings per share for the half year ended December 31, 2011 come to Rs. 7.72 as compared to Rs. 6.91 during the corresponding period of previous year.
On behalf of the Board Lahore February 25, 2012 MOHAMMAD NAEEM MUKHTAR Chief Executive Officer
Auditors Report
Introduction
We have reviewed the accompanying condensed interim balance sheet of Ibrahim Fibres Limited as at December 31, 2011 and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim cash flow statement, condensed interim statement of changes in equity and notes to the accounts for the six months period then ended (here-in-after referred to as the interim financial information). Management is responsible for the preparation and presentation of this interim financial information in accordance with 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 of the condensed interim profit and loss account and condensed interim statement of comprehensive income for the quarter ended December 31, 2011 and 2010 have not been reviewed, as we are required to review only the cumulative figures for the six months period ended December 31, 2011. 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 at December 31, 2011 and for the six months period then ended is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan.
Avais Hyder Liaquat Nauman Chartered Accountants Engagement partner: Syed Ali Adnan Tirmizey
Director
Other operating income Share of profit of associate - net Profit before taxation Provision for taxation Profit for the period Earnings per share - Basic and Diluted
The annexed notes form an integral part of this condensed interim financial report.
Director
The annexed notes form an integral part of this condensed interim financial report.
Director
Director
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CAPITAL RESERVES Share premium Merger reserve Share of changes in equity of associate Fair value reserve General reserve Unappropriated profit TOTAL
REVENUE RESERVES
Rupees
1,000,000,000 1,000,000,000 1,000,000,000 4,045,000 (404,500) (14,386,043) 72,017,550 7,110,423 (711,042) 6,399,381 92,655,793 (2,874,796) (2,874,796) 2,111,673,099 519,000,000 72,017,550 752,505 86,256,412 (319,422) 2,874,796 2,874,796 2,111,673,099 491,988 3,194,218 2,146,725,922 10,389,551,811 2,005,093,270 2,005,093,270 12,394,645,081 (931,520,986) (519,000,000) 2,398,437,969 5,756,000 (575,600) (4,919,883) 2,146,725,922 2,146,725,922 5,756,000 (575,600) (4,919,883) 491,988 3,194,218 (319,422) 2,150,353,223 16,767,443,618 2,005,093,270 7,110,423 (711,042) (2,874,796) 2,008,617,855 18,776,061,473 (931,520,986) 2,398,437,969 4,045,000 (404,500) (14,386,043) 30,000,000 (621,013,990) (30,000,000) (621,013,990) 72,017,550 85,503,907 2,081,673,099 8,893,839,879 15,238,104,385
3,105,069,950
Balance as at July 01, 2010 Transaction with owners Dividend for the year ended June 30, 2010 : Rs. 2/- per share Transferred to general reserve Total comprehensive income for the period Profit for the period Share of changes in equity of associate Deferred tax relating to share of changes in equity of associate Share of changes in equity of associate reclassified to profit and loss account on disposal Deferred tax relating to share of changes in equity of associate reclassified to profit and loss account on disposal Unrealised gain on remeasurement of Investment in associate - available for sale Deferred tax relating to unrealised gain on remeasurement of investment in associate - available for sale
Balance as at December 31, 2010 Total comprehensive income for the period Profit for the period Share of changes in equity of associate Deferred tax relating to share of changes in equity of associate Transfer to profit and loss account on disposal
3,105,069,950
3,105,069,950
Balance as at June 30, 2011 Transaction with owners Dividend for the year ended June 30, 2011 : Rs. 3/- per share Transferred to general reserve Total comprehensive income for the period Profit for the period Share of changes in equity of associate Deferred tax relating to share of changes in equity of associate Share of changes in equity of associate reclassified to profit and loss account on disposal Deferred tax relating to share of changes in equity of associate reclassified to profit and loss account on disposal 1,000,000,000 72,017,550 1,438,604 (9,306,939) 83,348,854
3,105,069,950
2,630,673,099
2,398,437,969 13,342,562,064
The annexed notes form an integral part of this condensed interim financial report.
Director
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Half year ended December 31, 2010 Acquisitions Rupees Disposals Rupees
Un-audited December 31, 2011 Rupees 4. INVESTMENT IN ASSOCIATE Allied Bank Limited (ABL) - Quoted 270,786,565 (June 30, 2011 : 315,786,565) ordinary shares of Rs.10/ - each Ownership interest 31.48% (June 30, 2011 : 36.71%) Share of post acquisition changes in equity Less : Dividend received during the period / year Less : 65,000,000 (June 30, 2011 : 45,000,000) ordinary shares classified as held for sale 7,383,839,647 7,828,308,376 (676,966,410) 14,535,181,613 (3,333,868,890) 11,201,312,723
4.1 The fair value of investment in associate as at December 31, 2011 is Rs. 11,343 million (June 30, 2011 : Rs.17,368 million). 4.2 The financial year end of ABL is 31st December. The latest available financial results of associate as of September 30, 2011 have been used for the purpose of application of equity method.
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(ii)
(iii)
(iv)
Un-audited December 31, 2011 Rupees in million 5.2 Commitments Under contracts for capital expenditure : Civil work Plant and machinery Under letters of credit for : Plant and machinery Raw materials and spare parts 11,449.170 402.729 957.531 276.216
1,189.152 44.000
12,448.954 1,230.606
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7.
AGGREGATE TRANSACTIONS WITH RELATED PARTIES The Company in the normal course of business carries out transactions with various related parties which comprise of associated undertakings and key management personnel. Significant transactions with related parties are as under : Half year ended December 31, 2011 2010 Rupees Rupees
Relationship
Nature of transaction
Associated undertakings
Rent paid Dividend received Commission Investment - available for sale Proceeds from disposal of investment - available for sale Remuneration Reimbursable expenses Proceeds from disposal of non - current assets held for sale Advance from directors against non - current assets held for sale Dividend paid
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9.
Director