Pak Agro Packaging : Quarterly Report for the Period Ended 30 September 2022

Interim Financial Statements

For the Quarter Ended 30 September 2022

(Un-Audited)

Pak Agro Packaging Limited

COMPANY INFORMATION

Board of Directors:	Dr. Safdar Ali Butt
	Chairman of the Board / Non-executive Director
	Khalid Butt
	Executive Director / CEO
	Dr. Tariq Javed
	Executive Director / CFO & Company Secretary
	Mrs Kaisra Jabeen Butt.
	Non-Executive Director
	Dr. Mubarak Hussain Haider
	Independent Director
	Mohammad Javed
	Independent Director
	Mr Iftkhar Mahmood
	Independent Director
External Auditor	Rafaqat Mansha Mohsin Dossani Masoom & Co.
	Chartered Accountants
	3rd Floor, Sharjah Centre, 62 Shadman Market, Lahore
	Phone: [phone]
	Fax: [phone]
Share Registrar	CDC Share Registrar Services Limited,
	CDC House, 99-B, Block 'B',
	SMCHS Main Shahra-e-Faisal,Karachi-74400
	Phone: [phone]; Fax: [phone]
	Website: www.cddcsrsl.com
Legal Advisor	Mr Abid Hussain Mirza
	Islamabad
Registered Office & Factory	Plot # 22-23 Phase - IV
	Hattar Industrial Estate, Hattar KPK.
	Phone: [phone]
Corporate Head Office	Third Floor, Green Trust Tower
	Jinnah Avenue, Blue Area, Islamabad.
	Phone: [phone]
Contact us:	Phone: [phone]
	www.pakagro.com
	[e-mail]

DIRECTORS' REPORT

Your directors are pleased to present their report on the first quarter of current financial year that ended on 30 Sept 2022.

Market Outlook

The impact of ravaging floods still persist in the agricultural sector of virtually the entire country. This has severely impaired the demand for our products in that sector. Farmers are still struggling to get back on their feet, facing considerable difficulties in preparing their lands for crop plantation. However, we feel that the situation will improve in coming months. We are hopeful that our sales will pick up in the coming quarters. At the same time, with stabilization in the price of our imported raw materials, our margins will begin to rise,

Operating Results

We recorded total sales of Rs 132.5 m and a gross profit of Rs 17.7 m. Our costs continue to rise due to exchange rate factor but we are at present unable to fully pass the impact of this increase to our customers due to the generally depressed economic situation of the market, particularly in the agricultural sector. Our gross profit margin is till below 13.5% of sales.

Our fish net manufacturing plant has come into operation and is contributing significantly to our sales volumes. With sales to agriculture sector considerably reduced, we were able to sustain the total sales revenue due to fish nets. We hope that as the demands for our products used by farmers rises in coming months for seasonal and economical reasons, our sales target for the year will be met.

We recorded a profit before tax of Rs 6.8 m and profit after tax of Rs 4.8 m, translating into EPS of 97paisa on annualized basis.

IPO Funds Proceeds

During the quarter, the entire IPO funds have been fully utilized. Payments made in the quarter were for construction of additional warehouse, commissioning of new fish net plant, and increase in net working capital arising out fish net production. A summary of IPO funds utilization is given below:

Machinery & Plant	Rs	94.2 m
Construction of production hall & Warehouse		12.5 m
Delivery Truck		3.1 m
IPO related expenses		10.7 m
Increase in stocks, repayment of current liabilities		77.5 m
		---------
Total IPO proceeds		198.0 m
		======

We wish to thank all our employees and business associates for the cooperation during the year.

Pak Agro Packaging Limited

Statement of Financial Position as at September 30, 2022

		Un-Audited		Audited
Equity and liabilities		September 30,		June 30, 2022
	2022
		(Rupees)		(Rupees)
	Note
Share capital and reserves
Share capital	4	200,000,000	200,000,000
Reserves	5	107,283,257	107,283,257
Revenue reserves
Unappropriated profit		51,537,565		46,703,048
		358,820,822	353,986,305
Non-current liabilities
Obligation against assets subject to finance lease	6	23,420,236		7,129,849
Long term loan	7	-		-
Deposit against vehicles	8	2,427,789		2,427,789
Deferred taxation	9	16,381,813		16,381,813
Employees' Gratuity Fund	10	2,069,710		2,069,710
		44,299,548	28,009,161
Current liabilities
Running finance	11	49,762,383		65,759,588
Current maturity of long term liabilities	12	11,868,000		8,808,777
Accrued and other liabilities	13	8,614,476		16,776,016
Taxation - net	14	(1,136,288)		3,078,672
		69,108,570	94,423,053
Contingencies and commitments	15			-
		472,228,941	476,418,519
Property and assets
Non-current assets
Operating fixed assets	16	208,228,430	213,183,852
Long term deposits	17	14,340,664	7,104,066
Current assets
Stock in trade	18	154,969,008		136,053,241
Trade debts	19	21,235,502		17,498,358
Advances and other receivables	20	59,571,630		46,829,213
Prepayments	21	1,403,732		2,169,056
Short term investment	22	-		30,000,000
Cash and bank balances	23	12,479,975		23,580,733
		249,659,847		256,130,601
		472,228,941	476,418,519

The annexed notes 1 to 33 form an integral part of these financial statements.

Pak Agro Packaging Limited

Statement of Profit or Loss

For the year ended September 30, 2022

		Un-Audited		Audited
		September 30,		June 30, 2022
		2022
	Note	(Rupees)		(Rupees)
Sales	24	132,520,984	502,900,382
Cost of sales	25	114,855,218		433,588,058
Gross profit		17,665,766	69,312,324
Operating expenses
Administrative	26	5,851,753		21,677,221
Selling and distribution	27	22,150		77,510
		5,873,903		21,754,731
Profit from operations		11,791,864	47,557,593
Financial expenses	28	4,978,428		5,341,319
Other charges	29	813,639		3,281,474
		5,792,067		8,622,793
		5,999,797	38,934,800
Other income	30	809,382		1,872,740
Profit for the year before taxation		6,809,179	40,807,540
Taxation	31	1,974,662		12,491,419
Profit for the year		4,834,517	28,316,121
Basic and diluted earnings per share (PKR)		0.24		1.42

The annexed notes 1 to 33 form an integral part of these financial statements.