Noon Pakistan Limited

FINANCIAL REPORT
FOR THE QUARTER ENDED
30 SEPTEMBER, 2015

1st Quarter Report

NOON PAKISTAN LIMITED

CONDENSED INTERIM
FINANCIAL INFORMATION
FOR THE QUARTER ENDED
30 SEPTEMBER, 2015

Page
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Corporate Information

Directors Report

Balance Sheet

Profit & Loss Account

Comprehensive Income Statement

Cash Flow Statement

Statement of Changes in Equity

Notes to the Accounts

10

Noon Pakistan Limited

BOARD OF DIRECTORS

Lt Gen Khalid Nawaz Khan

Chairman
HI (M), Sitara-i-Esar, (Retd)
Lt Gen Muhammad Haroon Aslam CE & MD
HI (M), SBt, (Retd)
Lt Gen Shafqaat Ahmed, HI (M), (Retd)
Mr. Qaiser Javed
Dr. Nadeem Inayat
Mr. Salman Hayat Noon
Lt Col Abdul Khaliq Khan (Retd)

COMPANY SECRETARY

Lt Col Muhammad Ashfaq (Retd)

AUDITORS

Hameed Chaudhri & Co.

Chartered Accountants

CHIEF FINANCIAL OFFICER

Syed Aamir Ahsan

LEGAL ADVISERS

Hamid Law Associates

BANKERS

Habib Bank Limited

United Bank Limited
National Bank of Pakistan
Bank Alfalah Limited
Faysal Bank Limited
The Bank of Punjab
NIB Bank Limited
MCB Bank Limited
Askari Bank Limited
Allied Bank Limited
Bank Islami Pakistan

REGISTERED OFFICE
&
SHARES DEPARTMENT

FFBL Complex, 103 A/B,

Shahrah-e-Quaid-e-Azam, Lahore.
Tel: +92-42-99205933-34
Email (Registered Ofce) : info@nurpurfoods.com
E-mail (Shares Deptt) : secretary@nurpurfoods.com

SHARES REGISTRAR

M/s Corplink (Pvt) Limited

Wings Arcade, 1-K-Block,
Model Town, Lahore
Tel: (042) 35839182, 35887262
Fax: (042) 35869037
Email : shares@corplink.com.pk

WEBSITE

www.nurpurfoods.com

PLANT

Bhalwal, District Sargodha.

1st Quarter Report

On behalf of the Board of Directors, I present un-audited condensed interim

financial statements of your Company for the quarter ended 30th September,
2015.
The sales of your Company witnessed a decline of 31% over corresponding
quarter of last year. The sales during current quarter were Rs. 358 million
against sales of Rs. 518 million during same quarter of last year.
Your Company registered a loss after tax of Rs. 73 million (negative 20% of the
net sales) against a loss after tax of Rs. 11 million (2% of the net sales) during
same quarter of last year. Loss per share decreased from Rs. 0.36 per share as
on 30th September 2014 to Rs. 2.32 per share on 30th September 2015.
The summarized results are as under:September, 2015

September, 2014

(Rupees in Million)

Net Sales
Gross Profit
Loss before Tax
Loss after Tax
Loss per Share

358
(0.3)
(69)
(73)
(2.32)

518
60
(6)
(11)
(0.36)

Due to competitive environment in dairy industry, the Company was not able to
transfer increasing cost of raw materials to its valued consumers by increasing
sale prices, but with the future plans of up-gradation & growth, we intend to
mitigate these exposures.
Fauji Fertilizer Bin Qasim Limited (FFBL) together with Fauji Foundation (FF),
have obtained controlling interest with 51% voting and 51% non-voting shares
of Noon Pakistan Limited on 04th September, 2015. The said acquisition will be
beneficial for the Company as well as for all stake holders.
The Company is now going for major expansions in its operations, which will
reflect as better financial results during the next periods of current year.
The Board is thankful to outgoing BOD members, our valued stakeholders in
general and the financial institutions in particular for their continued trust and
support to the Company.

For & on behalf of Board

Rawalpindi
Dated : 27 October, 2015

Lt. Gen. Khalid Nawaz Khan (Retd)

Chairman

Noon Pakistan Limited

CONDENSED INTERIM BALANCE SHEET

Un-Audited
Sep., 2015
Rupees

Audited
Jun., 2015
Rupees

395,000,000

395,000,000

313,632,000

313,632,000

(509,620,514)

(441,601,603)

(195,988,514)

(127,969,603)

459,191,179

463,279,159

1,155,722

2,795,925

1,155,722

2,795,925

321,911,959

409,094,031

22,136,539

19,590,707

802,713,067

751,323,886

Current portion of
non current liabilities

27,180,619

47,093,193

Taxation

20,637,601

17,055,057

973,103

974,603

Note
EQUITY AND LIABILITIES
SHARE CAPITAL AND
RESERVES
Authorised capital
Issued, subscribed and
paid- up capital
Unappropriated loss

SURPLUS ON
REVALUATION OF PROPERTY
PLANT AND EQUIPMENT
NON-CURRENT LIABILITIES
Liabilities against assets
subject to finance lease

CURRENT LIABILITIES
Trade and other payables
Accrued mark-up and interest
Short term finances

Dividends
CONTINGENCIES AND
COMMITMENTS

1,195,552,888 1,245,131,477

1,459,911,275 1,583,236,958

The annexed notes form an integral part of this condensed interim financial information.

1st Quarter Report

AS AT 30 SEPTEMBER 2015

ASSETS
NON-CURRENT ASSETS
Property, plant and
equipment

Note

Un-Audited
Sep., 2015
Rupees

Audited
Jun., 2015
Rupees

1,018,675,826

1,037,778,370

781,505

946,793

1,086,686

1,086,686

Intangible asset
Security deposits
Deferred taxation

1,598,003

1,598,003

1,022,142,020

1,041,409,852

118,421,569

123,463,394

Stock-in-trade

44,648,000

67,306,005

Trade debts - unsecured

considered good

11,199,672

21,625,863

Loans and advances

18,175,877

7,238,785

Deposits and
prepayments

13,167,810

14,769,046

2,809,255

1,718,485

1,277,299

1,277,299

112,864,040

105,160,896

Advance income tax, tax

deducted at source and
income tax refundable

61,574,459

58,210,727

Cash and bank balances

53,631,274

141,056,606

437,769,255

541,827,106

1,459,911,275

1,583,236,958

CURRENT ASSETS
Stores, spares and
loose tools

Due from Associated

Companies

Accrued profit on
term deposit receipts
Sales tax refundable

CHAIRMAN

CHIEF EXECUTIVE

DIRECTOR

Noon Pakistan Limited

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT

FOR THE QUARTER ENDED 30 SEPTEMBER, 2015

SALES - Net
COST OF SALES
GROSS (LOSS) / PROFIT

Un-Audited
Sep., 2015
Rupees

Un-Audited
Sep., 2014
Rupees

358,230,005

518,041,882

(358,556,789)

(458,127,546)

(326,784)

59,914,336

DISTRIBUTION COST

(25,695,621)

(30,494,793)

ADMINISTRATIVE EXPENSES

(24,387,371)

(23,862,888)

OTHER OPERATING EXPENSES

OTHER OPERATING INCOME

(1,500)

656,569

2,841,016

(49,426,423)

(51,518,165)

(LOSS) / PROFIT FROM OPERATIONS

(49,753,207)

8,396,171

FINANCE COST

(18,771,141)

(14,384,951)

LOSS BEFORE TAXATION

(68,524,348)

(5,988,780)

(3,582,544)

(5,180,419)

TAXATION
- Current
- Deferred

(684,254)

LOSS AFTER TAXATION

LOSS PER SHARE
- basic and diluted

(4,266,798)

(5,180,419)

(72,791,146)

(11,169,199)

(2.32)

(0.36)

- The annexed notes form an integral part of this condensed interim financial information.
- Appropriations have been reflected in the statement of changes in equity.

CHAIRMAN

CHIEF EXECUTIVE

DIRECTOR

1st Quarter Report

CONDENSED INTERIM STATEMENT

OF COMPREHENSIVE INCOME
FOR THE QUARTER ENDED 30 SEPTEMBER, 2015

LOSS AFTER TAXATION

Un-Audited
Sep., 2015
Rupees

Un-Audited
Sep., 2014
Rupees

(72,791,146)

(11,169,199)

(72,791,146)

(11,169,199)

Other comprehensive
income for the quarter

TOTAL COMPREHENSIVE
LOSS FOR THE QUARTER

The annexed notes form an integral part of this condensed interim financial
information.

CHAIRMAN

CHIEF EXECUTIVE

DIRECTOR

Noon Pakistan Limited

CONDENSED INTERIM CASH FLOW STATEMENT

FOR THE QUARTER ENDED 30 SEPTEMBER, 2015

CASH FLOW FROM OPERATING ACTIVITIES

Loss for the period - before taxation
Adjustments for non-cash charges and other items:
Depreciation
Amortization of intangible assets
Gain on sale of operating fixed assets
Finance cost
Profit on bank deposits
CASH (OUTFLOW) / INFLOW FROM OPERATING ACTIVITIES
- Before working capital changes
Decrease / (Increase) in current assets:
Stores, spares and loose tools
Stock-in-trade
Trade debts
Loans and advances
Short term security deposits and prepayments
Due from Associated Companies
Sales tax refundable
(Decrease) / Increase in trade and other payables
NET CASH OUTFLOW FROM OPERATING ACTIVITIES
- Before taxation
Income tax paid
NET CASH OUTFLOW FROM OPERATING ACTIVITIES
- After taxation
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
Sale proceeds of operating fixed assets
NET CASH OUTFLOW FROM INVESTING ACTIVITIES
CASH FLOW FROM FINANCING ACTIVITIES
Term finances - net
Islamic finances - net
New Shares issued
Loan From Chief Executive & a Director - net
Lease finances - net
Short term finances - net
Finance cost paid
Dividends paid
NET CASH INFLOW FROM FINANCING ACTIVITIES
NET (DECREASE) / INCREASE IN CASH AND
CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS - At beginning of the period
CASH AND CASH EQUIVALENTS - At end of the period

Un-Audited
Sep., 2015
Rupees

Un-Audited
Sep., 2014
Rupees

(68,524,348)

(5,988,780)

19,505,830
165,288
(14,473)
18,771,141
0

14,012,125
165,305
0
14,384,951
(1,740,690)

(30,096,562)

20,832,911

5,041,825
22,658,005
10,426,191
(10,937,092)
1,601,236
(1,090,770)
(7,703,144)
(87,182,072)

(8,388,512)
(13,912,000)
(17,696,714)
(3,006,512)
1,066,836
(1,702,238)
(19,518,406)
34,207,489

(67,185,821)

(28,950,057)

(97,282,383)

(8,117,146)

(3,363,732)

(1,925,884)

(100,646,115)

(10,043,030)

(1,563,313)
1,174,500

(2,606,347)
0

(388,813)

(2,606,347)

(19,590,858)
0
0
0
(1,961,918)
51,389,181
(16,225,309)
(1,500)

(15,781,179)
(3,400,000)
174,240,000
(127,338,260)
(5,918,849)
11,479,777
(12,593,536)
0

13,609,596

20,687,953

(87,425,332)
141,056,606

8,038,576
218,123,804

53,631,274

226,162,380

The annexed notes form an integral part of this condensed interim financial information.

CHAIRMAN

CHIEF EXECUTIVE

DIRECTOR

1st Quarter Report

CONDENSED INTERIM STATEMENT

OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE QUARTER ENDED 30 SEPTEMBER, 2015
Share
capital

Unappropriated Loss

Total

--------------------------- Rupees ----------------------------

Balance as at 01 July, 2014

139,392,000

(97,386,012)

42,005,988

Total comprehensive loss for the

quarter ended 30 September, 2014

(11,169,199)

(11,169,199)

Transfer from surplus on revaluation

of property, plant and equipment on
account of incremental depreciation
for the quarter-net of deferred taxation

235,447

235,447

(10,933,752)

(10,933,752)

Balance as at 30 September, 2014

139,392,000 (108,319,764)

31,072,236

Nominal value of shares issued during

the period

174,240,000

Total comprehensive loss for the

nine months ended 30 June, 2015

Transfer from surplus on revaluation

of property, plant and equipment on
account of incremental depreciation
for the quarter-net of deferred taxation

174,240,000

(338,593,468) (338,593,468)

5,311,629

5,311,629

174,240,000 (333,281,839) (159,041,839)

Balance as at 01 July, 2015

313,632,000 (441,601,603) (127,969,603)

Total comprehensive loss for the

quarter ended 30 September, 2015

Transfer from surplus on revaluation

of property, plant and equipment on
account of incremental depreciation
for the quarter-net of deferred taxation

4,772,235

4,772,235

(68,018,911)

(68,018,911)

Balance as at 30 September, 2015

(72,791,146)

(72,791,146)

313,632,000 (509,620,514) (195,988,514)

The annexed notes form an integral part of this condensed interim financial
information.

CHAIRMAN

CHIEF EXECUTIVE

DIRECTOR

Noon Pakistan Limited

NOTES TO AND FORMING PART OF THE CONDENSED

INTERIM FINANCIAL INFORMATION (UN-AUDITED)
FOR THE QUARTER ENDED 30 SEPTEMBER, 2015
1.

Noon Pakistan Limited (the Company) was incorporated in Pakistan on 26 September,

1966 as a Public Company and its shares are quoted on Karachi and Lahore Stock
Exchanges. It is principally engaged in processing and sale of toned milk, milk powder, fruit
juices, allied dairy and food products. The registered office of the Company is situated at
FFBL Complex, 103 A/B, Shahrah-e-Quaid-e-Azam, Lahore. and the plant is located at
Bhalwal, District Sargodha.

2.

This condensed interim financial information of the Company for the quarter ended 30
September, 2015 is un-audited and has been presented in accordance with the
requirements of the International Accounting Standard (IAS - 34 Interim Financial
Reporting) and provisions of and directives issued under the Companies Ordinance, 1984
(the Ordinance). In case where the requirements differ, the provisions of or directives issued
under the Ordinance have been followed. These are required to be presented to the
shareholders under section 245 of the Ordinance.

3.

This condensed interim financial information does not include all the information required
for the full financial statements and should be read in conjunction with the financial
statements of the Company as at and for the year ended 30 June, 2015.

4.

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
audited annual financial statements of the Company for the year ended 30 June, 2015.

5.

The preparation of this condensed interim financial information in conformity with the
approved accounting standards requires the use of certain critical accounting estimates. It
also requires management to exercise its judgment in the process of applying the
Company's accounting policies. Estimates and judgments are continually evaluated and
are based on historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances. Actual results may
differ from these estimates.

During the preparation of this condensed interim financial information, the significant
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 to annual
audited financial statements for the year ended 30 June, 2015.

6. Contingencies And Commitments

6.1 Guarantees aggregating as at September 30, 2015 Rs.11.972 million (June 30, 2015:
Rs.11.972 million) have been issued by banks of the Company to Sui Northern Gas Pipeline
Ltd., Unilever Pakistan Ltd. and Controller Naval Account.

6.2 Commitments in respect of irrevocable letters of credit as at September 30, 2015 amounting
to Rs. Nil (June 30, 2015: Rs. 16.048 Million).

6.3 Commitments in respect of purchase of plant and machinery through letter of credit as at
September 30, 2015 amounting to Rs. 805 Million.

10

1st Quarter Report

7.

Property, Plant and Equipment

Opening balance-Net book value
Additions during the period
Revaluation during the period

Book value of property plant and

equipment dispose off during the period

Un-Audited
Sep., 2015
Rupees

Un-Audited
Sep., 2014
Rupees

1,037,778,370

576,927,727

1,563,313

16,839,854

509,145,160

1,039,341,683

1,102,912,741

(1,160,027)
(19,505,830)

Depreciation charged during the period

1,018,675,826

8.

(2,612,679)
(62,521,692)
1,037,778,370

Transactions With Related Parties

8.1 The related parties comprise associated undertaking, other related companies and key
management personnel. The Company in the normal course of business carries out
transactions with various related parties. Detail of transactions with related parties are as
follows:

Un-Audited
Sep., 2015
Rupees

Un-Audited
Sep., 2014
Rupees

756
6,162,620

10,560
8,111,640

Associated companies
Sale of dairy products
Purchase of sugar

All transaction with related parties have been carried out on commercial terms and
conditions

9.

This condensed interim financial information was authorised for issue in the Board of
Directors' meeting held on 27 October, 2015.

Figures in this condensed interim financial information have been rounded-off to the
nearest Rupee. Corresponding figures have been re-arranged or re-classified wherever
necessary for the purposes of comparison; however, no material re-arrangement or reclassification has been made.

CHAIRMAN

CHIEF EXECUTIVE

11

DIRECTOR

Head Office Address:

FFBL Complex, 2nd & 3rd Floor,
103-Upper Mall, Lahore.
Tel: +92 42 99205933-34
www.nurpurfoods.com