Pak Agro Packaging : Transmission of Half Yearly Accounts for the period ended 31.12.2021

PAK AGRO PACKAGING LTD

FINANCIAL STATEMENTS

HALF YEARLY ENDED 30 DECEMBER 2021

Significant Ratios

1. Sales revenue at Rs204.4 million was 12.8% higher than comparable period last year.
2. Gross profit margin at Rs37.5 million was 17.8% higher than in the first half of previous financial year.
3. Gross Profit margin improved to 17.7% in comparison to 16.2% in the first half of previous financial year.
4. Net profit at Rs17 million was 10% higher than Rs 15.5 million in the comparable period last year.
5. Current ratio improved to 12.9 on 31 Dec 21, compared to 1.4 a year ago. This is principally due to unutilized IPO funds still held in the form of cash and short term deposits.

IMPORTANT / SIGNIFICANT EVENTS OF THE YEAR

1. The Company changed its status from private limited company to public limited company in last month of previous financial year
2. The Company was listed at the stock exchange in November 2021, the first company to listed on the GEM Board of PSX.
3. The Company formally offered 8 million of its shares for public subscription. Due to the hard work of our Consultants, M/s AKD Securities Ltd., cooperation of our bankers and the staff members, our issue was handsomely over-subscribed and the strike price came to Rs 24.75, 10% higher than the base price of Rs 22.00.
4. The company had expected the public subscription to be take place in early part of our financial year which would have enabled us to import machinery and build new production hall for our expansion program in good time to increase our sales significantly for the current year.
5. Current status on expansion program is that contract has been awarded for construction of new production hall which is expected to be ready by end of Feb 2022. Letters of credit have been opened for import of machinery to manufacture fish nets and back-processes. Some machinery is being acquired locally. It is expected that by end March 2022, all machinery would be delivered and installed. Commercial production should commence on this new segment in April 2022.
6. Total funds raised through IPO were Rs 198 million. The utilization so far of these funds is as follows:
7. 1. IPO Related Costs, Rs 10.7 million.
   2. Advance to Builders / Margins on L/Cs for import of machinery, Rs 14.1 million.
   3. Funds placed in Term Deposit Receipts, Rs 60 million
   4. Retirement of running finance facilities, Rs 70 million. These are however still available to the Company.
   5. Invested in higher stocks and held in cash form, Rs 44.0 million

WAY FORWARD

1. Due to the delays in listing, caused primarily by late finalization of GEM Listing rules by PSX, we have lost almost five months of production/sales on the new machines. However, we are still optimistic that with the arrival of new machinery we will be able to start manufacturing and sales of new products in early April 2022. This should help us take our sales revenue for the year ending 30 June 2022 to Rs 500 million.
2. The Company hopes to achieve sufficient profit level to pay cash dividends after June 2022, within less than eight months after the initial public issue. 5

GRATITUDE

The Board wishes to record its gratitude to all the workers, shareholders, consultants, suppliers and employees of the company who extended full cooperation in ensuring a successful half-year for the company. In particular we are thankful to The Bank of Khyber and The Bank of Punjab for their continued support.

Pak Agro Packaging Limited

Statement of Financial Position as at December 31, 2021

		Management	Audited
Equity and Liabilities		Dec 31, 2021		2021
		(Rupees)	(Rupees)
	Note
Share capital and reserves
Share capital	4	200,000,000	120,000,000
Share Premium	5	118,000,000	-
Loan from directors	6	-		7,500,000
Revenue reserves
Unappropriated profit		34,842,904	17,806,330
		352,842,904	145,306,330
Non-current liabilities
Obligation against assets subject to finance lease	7	7,634,955	3,089,167
Long term loan	8	2,616,115	2,616,115
Deposit against vehicles	9	2,427,789	2,427,789
Deferred taxation	10	14,685,485	14,685,485
Employees' Gratuity Fund	11	1,246,150	1,246,150
		28,610,494	24,064,705
Current liabilities
Running finance	12	-		65,415,932
Current maturity of long term liabilities	13	7,462,315	6,827,738
Accrued and other liabilities	14	10,891,551	9,127,025
Advance from customers	15	-		-
Taxation - net	24	155,560	1,013,766
		18,509,425	82,384,461
Contingencies and commitments	16	-		-
		399,962,824	251,755,496
Property and assets
Non-current assets
Operating fixed assets	17	137,079,773	132,136,535
Capital goods in transit	18	6,160,485
Capital work in progress	19	4,500,000
Long term deposits	20	3,410,336	3,410,336
IPO Charges		10,716,743
Current assets
Stock in trade	21	126,082,172	76,306,082
Advances and other receivables	22	4,084,781	10,472,825
Prepayments	23	1,015,961	1,109,532
Trade Debtors		2,397,724
Cash and bank balances	25	104,514,849	28,320,186
		238,095,487	116,208,625
		399,962,824	251,755,497

Chief Executive

Director

Pak Agro Packaging Limited

Statement of Profit or Loss

For the period ended December 31, 2021

		Management	Audited
			Dec 31, 2021		2021
	Note		(Rupees)	(Rupees)
Sales	26	204,390,852	402,497,955
Cost of sales	27	168,725,181	335,075,992
Gross profit		35,665,671	67,421,964
Operating expenses
Administrative	28	11,858,208	12,253,226
Selling and distribution	29	22,000	52,720
		11,880,208	12,305,946
Profit/(loss) form operation		23,785,463	55,116,018
Financial expenses	30	3,063,784	8,924,163
Other charges	31	1,641,197	3,803,005
Loss of stock due to fire	32	-		-
		4,704,981	12,727,168
		19,080,482	42,388,850
Other income	32	-		2,721,078
Profit/(loss) for the year before taxation		19,080,482	45,109,928
Taxation	33	2,043,909	11,510,485
Profit/(loss) for the year		17,036,574	33,599,443

The annexed notes 1 to 39 form an integral part of these financial statements.

Chief Executive

Director

Pak Agro Packaging Limited

Formerly Pak Agro Packaging (Private) Limited

Statement of Comprehensive Income

For the period ended December 31, 2021

	Management	Audited
		Dec 31, 2021		2020
		(Rupees)	(Rupees)
Profit/(loss) for the year	17,036,574	33,599,443
Other comprehensive income	-		-
Total comprehensive income for the year	17,036,574	33,599,443

The annexed notes 1 to 39 form an integral part of these financial statements.

Chief Executive

Director

Pak Agro Packaging Limited
Formerly Pak Agro Packaging (Private) Limited
Statement of Cash Flows
For the period ended Decmber 31, 2021
		Management	Audited
		Dec 31, 2021		2020
		(Rupees)	(Rupees)
Cash flow from operating activities	Note
Profit/(loss) for the period/year before taxation		19,080,482	45,109,928
Adjustments for:
Depreciation	(17.2.1)	7,338,005	15,335,675
Gain on disposal of assets		-		(2,721,078)
		7,338,005	12,614,597
Operating profit before working capital changes		26,418,488	57,724,525
Increase/(decrease) in:
Stock in trade		(49,776,090)	(28,395,499)
Trade Debtors		(2,397,724)	-
Advances and other receivables		6,388,044	(6,304,025)
Pre-payments		93,571	296,965
		(45,692,199)	(34,402,559)
		(19,273,711)	23,321,966
Increase /(decrease) in:
Current liabilities		1,764,526	(13,875,684)
Cash flow from operating activities		(17,509,185)	9,446,282
Tax deducted at source		(2,902,115)	(8,306,752)
Net cash flow from operating activities		(20,411,301)	1,139,530
Cash flow from investing activities
Fixed capital expenditures		(12,281,243)	(18,058,906)
Capital goods in transit		(6,160,485)
Capital work in progress		(4,500,000)
Sale proceed and insurance claim against fixed assets		-		4,433,000
Long term deposits		-		1,163,750
Deposit against vehicles		-		805,334
Net cash flow from investing activities		(22,941,728)	(11,656,823)
Cash flow from financing activities
Asset subject to finance lease		5,180,365	(1,092,294)
Loan from director		(7,500,000)	(70,110,000)
Share capital		80,000,000	90,000,000
Shares premium		118,000,000
Allotment of bouns shares		-		(20,000,000)
Running finance facility		(65,415,932)	21,876,836
IPO Charges		(10,716,743)	-
Long term loan		-		(2,617,385)
Provision for gratuity		-		1,246,150
Net cash flow from financing activities		119,547,690	19,303,307
Net increase/(decrease) in cash and cash equivalents		76,194,662	8,786,014
Cash and cash equivalent in the beginning of the year		28,320,186	19,534,172
Cash and cash equivalent at the end of the year		104,514,847	28,320,186
		(2)	(0)

The annexed notes 1 to 39 form an integral part of these financial statements.

Chief Executive

Director