berger interim september 2017 - welcome to berger paints...
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Trusted WorldwideBERGER PAINTS
Interim Financial Reportfor the quarter ended
September ��, ����
ContentsCompany Information
Directors’ Report
Director’s Report - Urdu
Condensed Interim Unconsolidated Balance Sheet
Condensed Interim Unconsolidated Profit and Loss Account
Condensed Interim Unconsolidated Statement of Comprehensive Income
Condensed Interim Unconsolidated Cash Flow Statement
Condensed Interim Unconsolidated Statement of Changes in Equity
Notes to the Condensed Interim Unconsolidated Financial Information
Consolidated Financial Statements
Condensed Interim Consolidated Balance Sheet
Condensed Interim Consolidated Profit and Loss Account
Condensed Interim Consolidated Statement of Comprehensive Income
Condensed Interim Consolidated Cash Flow Statement
Condensed Interim Consolidated Statement of Changes in Equity
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ContentsCompany Information
Directors’ Report
Director’s Report - Urdu
Condensed Interim Unconsolidated Balance Sheet
Condensed Interim Unconsolidated Profit and Loss Account
Condensed Interim Unconsolidated Statement of Comprehensive Income
Condensed Interim Unconsolidated Cash Flow Statement
Condensed Interim Unconsolidated Statement of Changes in Equity
Notes to the Condensed Interim Unconsolidated Financial Information
Consolidated Financial Statements
Condensed Interim Consolidated Balance Sheet
Condensed Interim Consolidated Profit and Loss Account
Condensed Interim Consolidated Statement of Comprehensive Income
Condensed Interim Consolidated Cash Flow Statement
Condensed Interim Consolidated Statement of Changes in Equity
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03
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02 | Berger Paints Pakistan Limited Interim Financ 7 03ial Report September 30, 201 |
Company Information
Board of Directors
Mr. Maqbool H.H. Rahimtoola - ChairmanDr. Mahmood Ahmad - Chief ExecutiveMr. Hamid Masood SohailMr. Muhammad NaseemMr. Ilyas SharifMr. Shahzad M. HusainMr. Zafar A. Osmani
Audit Committee
Mr. Hamid Masood Sohail - ChairmanMr. Maqbool H.H. RahimtoolaMr. Muhammad Naseem
Human Resource Committee
Mr. Zafar A. Osmani - ChairmanDr. Mahmood AhmadMr. Shahzad M. Husain
CFO & Company Secretary
Mr. Abdul Wahid Qureshi
Bankers
MCB Bank LimitedUnited Bank LimitedNational Bank of PakistanFaysal Bank LimitedJS Bank LimitedSummit Bank LimitedHabib Metropolitan Bank Limited
Auditors
KPMG Taseer Hadi & Co.Chartered Accountants
Solicitors
Surridge & Beecheno
Company Registrar
THK Associates (Private) Limited
Registered Office
36 Industrial Estate, Kot Lakhpat, Lahore.Tel: 92 42 111 237 437Fax: 92 42 35151549
Factory
28 Km, Multan Road, Lahore.Tel: 92 42 38102775Fax: 92 42 37543450
Web Presence
www.berger.com.pk
Directors’ Report
The Directors of the Company are pleased to present their review along with the interim financial statements of the Company for the quarter ending on September 30, 2017.
Operational Results
During the quarter under review, besides tough competition, change in economic scenario in the country and the raw material prices witnessed an increasing trend. These factors adversely affected the performance of the Company. Despite these challenges, however, your Company managed to achieve sales target in line with last year sales for the same period. Due to increased input costs and the change in product mix, gross margins stood at 24% at the end of September 30, 2017, compared with 34% for the same period last year.
Administrative and Selling expenditure remained under control and marketing activities were executed according to the marketing plan.
As a result of these factors, Earning per Share at the end of the first quarter resulted at Rs. 0.08 as compared with Rs. 2.09 for the same quarter of the previous year.
Future Outlook
Economic outlook of the country appears positive due to the progress on CPEC related projects and the focus of the government on mega projects in anticipation of general election next year. We are hopeful of a profitable growth in over the remaining months.
The Directors take this opportunity to thank our shareholders and valued customers for their continued trust as indeed the Company appreciates the dedication demonstrated by all tiers of the Company employees.
Lahore:Dated: 19 October 2017
Dr. Mahmood AhmadChief Executive
On behalf of the Board
02 | Berger Paints Pakistan Limited Interim Financ 7 03ial Report September 30, 201 |
Company Information
Board of Directors
Mr. Maqbool H.H. Rahimtoola - ChairmanDr. Mahmood Ahmad - Chief ExecutiveMr. Hamid Masood SohailMr. Muhammad NaseemMr. Ilyas SharifMr. Shahzad M. HusainMr. Zafar A. Osmani
Audit Committee
Mr. Hamid Masood Sohail - ChairmanMr. Maqbool H.H. RahimtoolaMr. Muhammad Naseem
Human Resource Committee
Mr. Zafar A. Osmani - ChairmanDr. Mahmood AhmadMr. Shahzad M. Husain
CFO & Company Secretary
Mr. Abdul Wahid Qureshi
Bankers
MCB Bank LimitedUnited Bank LimitedNational Bank of PakistanFaysal Bank LimitedJS Bank LimitedSummit Bank LimitedHabib Metropolitan Bank Limited
Auditors
KPMG Taseer Hadi & Co.Chartered Accountants
Solicitors
Surridge & Beecheno
Company Registrar
THK Associates (Private) Limited
Registered Office
36 Industrial Estate, Kot Lakhpat, Lahore.Tel: 92 42 111 237 437Fax: 92 42 35151549
Factory
28 Km, Multan Road, Lahore.Tel: 92 42 38102775Fax: 92 42 37543450
Web Presence
www.berger.com.pk
Directors’ Report
The Directors of the Company are pleased to present their review along with the interim financial statements of the Company for the quarter ending on September 30, 2017.
Operational Results
During the quarter under review, besides tough competition, change in economic scenario in the country and the raw material prices witnessed an increasing trend. These factors adversely affected the performance of the Company. Despite these challenges, however, your Company managed to achieve sales target in line with last year sales for the same period. Due to increased input costs and the change in product mix, gross margins stood at 24% at the end of September 30, 2017, compared with 34% for the same period last year.
Administrative and Selling expenditure remained under control and marketing activities were executed according to the marketing plan.
As a result of these factors, Earning per Share at the end of the first quarter resulted at Rs. 0.08 as compared with Rs. 2.09 for the same quarter of the previous year.
Future Outlook
Economic outlook of the country appears positive due to the progress on CPEC related projects and the focus of the government on mega projects in anticipation of general election next year. We are hopeful of a profitable growth in over the remaining months.
The Directors take this opportunity to thank our shareholders and valued customers for their continued trust as indeed the Company appreciates the dedication demonstrated by all tiers of the Company employees.
Lahore:Dated: 19 October 2017
Dr. Mahmood AhmadChief Executive
On behalf of the Board
30 September 30 June
2017 2017
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 1,148,840
1,138,904
Intangibles 8,280
8,017
Goodwill 36,750
36,750
Investments - related parties 73,761
74,568
Long-term loans 55,973
50,929
Long term loan to related party - Secured 40,000
40,000
Long-term deposits 22,277
20,774
Deferred taxation 1,859
1,859
1,387,740
1,371,801
CURRENT ASSETS
Stores 15,961
16,924
Stock in trade 891,848
1,018,236
Trade debts 1,081,927
1,249,455
Loans and advances 143,028 102,524
Trade deposits and short-term prepayments 28,958
30,387
Other receivables 10,662
13,732
Taxation - net 254,111
241,160
Sales tax refundable 12,357
58,129
Short term investments 42,275
42,275
Cash and bank balances 21,899
44,356
2,503,026
2,817,178
TOTAL ASSETS 3,890,766
4,188,979
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorised share capital
25,000,000 ordinary shares of Rs.10 each 250,000
250,000
Issued, Subscribed and paid-up capital 181,864 181,864
Reserves 370,000 370,807
Accumulated Profit 361,250 353,611
913,114 906,282
SURPLUS ON REVALUATION OF FIXED ASSETS - NET OF TAX 515,260 521,363
NON-CURRENT LIABILITIES
Long term financing 121,246 138,263
Staff retirement and other long term benefits 121,821 119,977
Deferred taxation - -
CURRENT LIABILITIES
Trade and other payables 1,171,877 1,472,877
Current maturity of long-term financing 68,088 68,088
Accrued finance cost 14,165 13,394
Short term borrowings - secured 965,195 948,735
2,219,325 2,503,094
CONTINGENCIES AND COMMITMENTS
TOTAL EQUITY AND LIABILITIES 3,890,766 4,188,979
The annexed notes 1 to 8 form an integral part of these condensed interim financial statements.
Rupees in thousand
As on 30 September 2017
Condensed InterimUnconsolidated Balance Sheet (Un-audited)
Chief Financial Officer Chief Executive Director
04 | Berger Paints Pakistan Limited Interim Financ 7 05ial Report September 30, 201 |
243,067 258,240
30 September 30 June
2017 2017
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 1,148,840
1,138,904
Intangibles 8,280
8,017
Goodwill 36,750
36,750
Investments - related parties 73,761
74,568
Long-term loans 55,973
50,929
Long term loan to related party - Secured 40,000
40,000
Long-term deposits 22,277
20,774
Deferred taxation 1,859
1,859
1,387,740
1,371,801
CURRENT ASSETS
Stores 15,961
16,924
Stock in trade 891,848
1,018,236
Trade debts 1,081,927
1,249,455
Loans and advances 143,028 102,524
Trade deposits and short-term prepayments 28,958
30,387
Other receivables 10,662
13,732
Taxation - net 254,111
241,160
Sales tax refundable 12,357
58,129
Short term investments 42,275
42,275
Cash and bank balances 21,899
44,356
2,503,026
2,817,178
TOTAL ASSETS 3,890,766
4,188,979
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorised share capital
25,000,000 ordinary shares of Rs.10 each 250,000
250,000
Issued, Subscribed and paid-up capital 181,864 181,864
Reserves 370,000 370,807
Accumulated Profit 361,250 353,611
913,114 906,282
SURPLUS ON REVALUATION OF FIXED ASSETS - NET OF TAX 515,260 521,363
NON-CURRENT LIABILITIES
Long term financing 121,246 138,263
Staff retirement and other long term benefits 121,821 119,977
Deferred taxation - -
CURRENT LIABILITIES
Trade and other payables 1,171,877 1,472,877
Current maturity of long-term financing 68,088 68,088
Accrued finance cost 14,165 13,394
Short term borrowings - secured 965,195 948,735
2,219,325 2,503,094
CONTINGENCIES AND COMMITMENTS
TOTAL EQUITY AND LIABILITIES 3,890,766 4,188,979
The annexed notes 1 to 8 form an integral part of these condensed interim financial statements.
Rupees in thousand
As on 30 September 2017
Condensed InterimUnconsolidated Balance Sheet (Un-audited)
Chief Financial Officer Chief Executive Director
04 | Berger Paints Pakistan Limited Interim Financ 7 05ial Report September 30, 201 |
243,067 258,240
Sales - net 1,149,930 1,135,663
Cost of sales 878,862 753,549
Gross Profit 271,068 382,114
Marketing and Distribution expenses 207,867 262,988
Administrative expenses 47,159 44,513
255,026 307,501
Operating Profit 16,042 74,613
Other operating income 10,787 1,370
26,829 75,983
Finance cost 22,117 16,029
Other operating expenses 2,486 4,137
24,603 20,166
Profit before taxation 2,226 55,817
Taxation 690 17,862
Profit after taxation 1,536 37,955
Earning per share - basic and diluted Rs.0.08 Rs.2.09
The annexed notes 1 to 8 form an integral part of these condensed interim financial statements.
Condensed InterimUnconsolidated Profit and Loss Account (Un-audited)For the period ended 30 September 2017
Chief Financial Officer Chief Executive Director
30 September 30 September
2017 2016Rupees in thousand
06 | Berger Paints Pakistan Limited Interim Financ 7 07ial Report September 30, 201 |
Chief Financial Officer Chief Executive Director
Profit after taxation
Other comprehensive income
Items that may be reclassified to profit and loss
Fair value (loss)/gain on 'Available for sale' investments
Total comprehensive income for the period
The annexed notes 1 to 8 form an integral part of these condensed interim financial statements.
1,536
(807)
729
37,955
12,077
50,032
30 September 30 September
2017 2016Rupees in thousand
Condensed InterimUnconsolidated Statement of Comprehensive Income (Un-audited)For the period ended 30 September 2017
Sales - net 1,149,930 1,135,663
Cost of sales 878,862 753,549
Gross Profit 271,068 382,114
Marketing and Distribution expenses 207,867 262,988
Administrative expenses 47,159 44,513
255,026 307,501
Operating Profit 16,042 74,613
Other operating income 10,787 1,370
26,829 75,983
Finance cost 22,117 16,029
Other operating expenses 2,486 4,137
24,603 20,166
Profit before taxation 2,226 55,817
Taxation 690 17,862
Profit after taxation 1,536 37,955
Earning per share - basic and diluted Rs.0.08 Rs.2.09
The annexed notes 1 to 8 form an integral part of these condensed interim financial statements.
Condensed InterimUnconsolidated Profit and Loss Account (Un-audited)For the period ended 30 September 2017
Chief Financial Officer Chief Executive Director
30 September 30 September
2017 2016Rupees in thousand
06 | Berger Paints Pakistan Limited Interim Financ 7 07ial Report September 30, 201 |
Chief Financial Officer Chief Executive Director
Profit after taxation
Other comprehensive income
Items that may be reclassified to profit and loss
Fair value (loss)/gain on 'Available for sale' investments
Total comprehensive income for the period
The annexed notes 1 to 8 form an integral part of these condensed interim financial statements.
1,536
(807)
729
37,955
12,077
50,032
30 September 30 September
2017 2016Rupees in thousand
Condensed InterimUnconsolidated Statement of Comprehensive Income (Un-audited)For the period ended 30 September 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation
Adjustment for non cash items:
Depreciation on propery, plant and equipment
Provision against slow moving stock
Provision against bad debts
Provision for staff retirement and other long term benefits
Amortization on intangibles
Gain on disposal of property, plant and equipment
Finance costs
Operating profit before working capital changes
(Increase) / Decrease in Current Assets
Stores
Stocks in Trade
Trade debts
Loans and advances
Trade deposits short-term prepayments
Others receivables
Increase / (Decrease) in Current Liabilities
Trade and other payables
Cash generated from operations
Finance costs paid
Income tax paid
Sales tax paid
Staff retirement and other long term benefits paid
Long-term loans - net
Long-term deposits - net
Net cash generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed capital expenditure
Sales proceeds on disposal of property, plant and equipment
Long term loans to / investment in related party - secured
Short term investments
Net cash outflow from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long term financing
Dividend Paid
Net cash generated from / (used in) financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period
The annexed notes 1 to 8 form an integral part of these condensed interim financial statements.
For the period ended 30 September 2017
Condensed InterimUnconsolidated Statement of Changes in Equity (Un-audited)
For the period ended 30 September 2017
Condensed InterimUnconsolidated Cash Flow Statement (Un-audited)
Chief Financial Officer Chief Executive Director
Chief Financial Officer Chief Executive Director
55,817
19,331
2,898
19,997
8,533
2,283
-
16,029
69,071
124,888
(287)
(75,614)
(21,441)
(29,600)
1,840
93,804
(31,298)
(38,643)
54,947
(19,272)
(41,790)
-
84
(9,581)
(1)
(70,560)
(15,613)
(9,180)
-
12
20,000
10,832
(20,150)
-
(20,150)
(24,931)
(368,257)
(393,188)
2,226
19,245
1,790
107
8,151
1,055
(817)
22,117
51,648
53,874
963
124,598
167,421
(40,504)
1,429
3,070
256,977
(277,055)
33,796
(21,346)
(13,641)
45,772
(6,307)
(5,044)
(1,503)
(2,069)
31,727
(31,977)
2,295
-
-
(29,682)
(17,017)
(23,945)
(40,962)
(38,917)
(504,379)
(543,296)
30 September 30 September
2017 2016Rupees in thousand
Balance as at 1 July 2016
Balance as at 30 September 2016
Balance as at 30 Jun 2017
Balance as at 30 September 2017
The annexed notes 1 to 8 form an integral part of these condensed interim financial statements.
Total comprehensive income for the period ended
30 September 2017
- Profit for the period
Other Comprehensive income for the period
Fair value loss on 'Available for sale' investments
Surplus on revaluation of property plant and
equipment realized through incremental
depreciation charged on related assets during the
period
Remeasurement of defined benefit obligation
Surplus on revaluation of property plant and
equipment realized through incremental
depreciation charged on related assets during the
period
Transaction with owners of the Company
recognized directly in equity - Distributions
Interim dividend for the year ended 30 June 2017
@ Rs. 4.50 per share.
Final dividend for the year ended 30 June 2016 @
Rs. 4.5 per share.
Fair value gain on 'Available for sale' investments
- Profit for the period
Other Comprehensive income for the period
Fair value gain on 'Available for sale' investments
Measurement of defined benefit obligation
Surplus on revaluation of property plant and
equipment realized through incremental
depreciation charged on related assets during the
period
Total comprehensive income for the period
ended 30 Jun 2017
- Profit for the period
Other Comprehensive income for the period
Total comprehensive income for the period ended
30 September 2016
Rupees in thousand
Share Fair value
premium reserve
General
reserve
Accumulated
Profit
181,864
56,819
6,977 285,000 289,242 819,902
-
- - - 37,955 37,955
-
- 12,077 - - 12,077
-
- - - - -
-
- 12,077 - - 12,077
181,864
56,819 19,054 285,000 327,197 869,934
-
- - - 7,565 7,565
181,864
56,819 19,054 285,000 334,762 877,499
-
- - - 164,156 164,156
-
- 9,934 - - 9,934
-
- - - 4,986 4,986
-
- 9,934 - 4,986 14,920
181,864 56,819 28,988 285,000 503,904 1,056,575
- - - - 13,385 13,385
- - - - (81,839) (81,839)
- - - - (81,839) (81,839)
181,864 56,819 28,988 285,000 353,611 906,282
- - - - 1,536 1,536
- - (807) - - (807)
- - (807) - - (807)
181,864 56,819 28,181 285,000 355,147 907,011
- - - - 6,103 6,103
181,864 56,819 28,181 285,000 361,250 913,114
Share
capital
Capital reserve Revenue reserve Total share
capital and
reserve
08 | Berger Paints Pakistan Limited Interim Financ 7 09ial Report September 30, 201 |
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation
Adjustment for non cash items:
Depreciation on propery, plant and equipment
Provision against slow moving stock
Provision against bad debts
Provision for staff retirement and other long term benefits
Amortization on intangibles
Gain on disposal of property, plant and equipment
Finance costs
Operating profit before working capital changes
(Increase) / Decrease in Current Assets
Stores
Stocks in Trade
Trade debts
Loans and advances
Trade deposits short-term prepayments
Others receivables
Increase / (Decrease) in Current Liabilities
Trade and other payables
Cash generated from operations
Finance costs paid
Income tax paid
Sales tax paid
Staff retirement and other long term benefits paid
Long-term loans - net
Long-term deposits - net
Net cash generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed capital expenditure
Sales proceeds on disposal of property, plant and equipment
Long term loans to / investment in related party - secured
Short term investments
Net cash outflow from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long term financing
Dividend Paid
Net cash generated from / (used in) financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period
The annexed notes 1 to 8 form an integral part of these condensed interim financial statements.
For the period ended 30 September 2017
Condensed InterimUnconsolidated Statement of Changes in Equity (Un-audited)
For the period ended 30 September 2017
Condensed InterimUnconsolidated Cash Flow Statement (Un-audited)
Chief Financial Officer Chief Executive Director
Chief Financial Officer Chief Executive Director
55,817
19,331
2,898
19,997
8,533
2,283
-
16,029
69,071
124,888
(287)
(75,614)
(21,441)
(29,600)
1,840
93,804
(31,298)
(38,643)
54,947
(19,272)
(41,790)
-
84
(9,581)
(1)
(70,560)
(15,613)
(9,180)
-
12
20,000
10,832
(20,150)
-
(20,150)
(24,931)
(368,257)
(393,188)
2,226
19,245
1,790
107
8,151
1,055
(817)
22,117
51,648
53,874
963
124,598
167,421
(40,504)
1,429
3,070
256,977
(277,055)
33,796
(21,346)
(13,641)
45,772
(6,307)
(5,044)
(1,503)
(2,069)
31,727
(31,977)
2,295
-
-
(29,682)
(17,017)
(23,945)
(40,962)
(38,917)
(504,379)
(543,296)
30 September 30 September
2017 2016Rupees in thousand
Balance as at 1 July 2016
Balance as at 30 September 2016
Balance as at 30 Jun 2017
Balance as at 30 September 2017
The annexed notes 1 to 8 form an integral part of these condensed interim financial statements.
Total comprehensive income for the period ended
30 September 2017
- Profit for the period
Other Comprehensive income for the period
Fair value loss on 'Available for sale' investments
Surplus on revaluation of property plant and
equipment realized through incremental
depreciation charged on related assets during the
period
Remeasurement of defined benefit obligation
Surplus on revaluation of property plant and
equipment realized through incremental
depreciation charged on related assets during the
period
Transaction with owners of the Company
recognized directly in equity - Distributions
Interim dividend for the year ended 30 June 2017
@ Rs. 4.50 per share.
Final dividend for the year ended 30 June 2016 @
Rs. 4.5 per share.
Fair value gain on 'Available for sale' investments
- Profit for the period
Other Comprehensive income for the period
Fair value gain on 'Available for sale' investments
Measurement of defined benefit obligation
Surplus on revaluation of property plant and
equipment realized through incremental
depreciation charged on related assets during the
period
Total comprehensive income for the period
ended 30 Jun 2017
- Profit for the period
Other Comprehensive income for the period
Total comprehensive income for the period ended
30 September 2016
Rupees in thousand
Share Fair value
premium reserve
General
reserve
Accumulated
Profit
181,864
56,819
6,977 285,000 289,242 819,902
-
- - - 37,955 37,955
-
- 12,077 - - 12,077
-
- - - - -
-
- 12,077 - - 12,077
181,864
56,819 19,054 285,000 327,197 869,934
-
- - - 7,565 7,565
181,864
56,819 19,054 285,000 334,762 877,499
-
- - - 164,156 164,156
-
- 9,934 - - 9,934
-
- - - 4,986 4,986
-
- 9,934 - 4,986 14,920
181,864 56,819 28,988 285,000 503,904 1,056,575
- - - - 13,385 13,385
- - - - (81,839) (81,839)
- - - - (81,839) (81,839)
181,864 56,819 28,988 285,000 353,611 906,282
- - - - 1,536 1,536
- - (807) - - (807)
- - (807) - - (807)
181,864 56,819 28,181 285,000 355,147 907,011
- - - - 6,103 6,103
181,864 56,819 28,181 285,000 361,250 913,114
Share
capital
Capital reserve Revenue reserve Total share
capital and
reserve
08 | Berger Paints Pakistan Limited Interim Financ 7 09ial Report September 30, 201 |
SALES
Berger Road Safety (Private) Limited - a subsidiary 25,076 23,301
Buxly Paints Limited - related party 51,800 41,252
Dadex Eternit 532
59
TOLL MANUFACTURING INCOME
Buxly Paints Limited - related party 4,453
3,153
RENTAL INCOME AND OTHER SERVICES CHARGED
Buxly Paints Limited - related party 300
1,352
Berger Road Safety (Private) Limited - a subsidiary 1,511
1,299
RENTAL EXPENSES
Buxly Paints Limited - related party 465
453
ROYALTY
Buxly Paints Limited - related party 450
558
Slotrapid Limited B.V.I - holding company 7,206
8,410
For the period ended 30 September 2017
Notes to the Condensed InterimUnconsolidated Financial Information (Un-audited)
Additions 31,977 9,180
30 September 30 September
2017 2016Rupees in thousand
1 . THE COMPANY AND ITS OPERATIONS
The company was incorporated in Pakistan on March 25, 1950 as a Private Limited Company under the
Companies Act, 1913 and was subsequently converted into a public Limited Company. The Company's
shares are quoted on Pakistan Stock Exchange (previously known as Karachi and Islamabad Stock
Exchanges). The Company is engaged in the manufacturing of paints, varnishes and other related items.
Slotrapid Limited is the holding Company of Berger Paints Pakistan Limited.
The registered office of the Company is situated at 36, Industrial Estate Kot Lakhpat Lahore and the
production facility of the Company is located at 28 Km Multan Road, Lahore.
2 . BASIS OF PREPARATION
These interim condensed financial statements are unaudited and are being submitted to the shareholders in
accordance with section 245 of the Companies Ordinance, 1984 and have been prepared in accordance with
the requirements of International Accounting Standard (IAS) - 34 "Interim Financial Reporting", as applicable
in Pakistan.
The interim condensed financial statements do not include all the information and disclosures required in the
annual financial statements, and should be read in conjunction with the Company's annual financial
statements as at June 30, 2017.
3 . SIGNIFICANT ACCOUNTING POLICIES
The accounting policies and methods of computation followed in the preparation of interim condensed
financial statements are same as those published in the annual financial statements for the year ended June
30, 2017.
4 . PROPERTY, PLANT AND EQUIPMENT
5 . CONTINGENCIES AND COMMITMENTS
5.1 Contingencies
There is no change in the status of contingency, set out in note 29 to the annual financial statements of the
company for the year ended 30 June 2017.
5.2 Commitments
5.2.1 Outstanding letter of credit as at September 30, 2017 amounted to Rs. 455.63 million [June 30, 2017: Rs.
482.70 million].
5.2.2 Outstanding letter of guarantees as at September 30, 2017 amounted to Rs. 77.69 million [June 30, 2017: Rs.
61.28 million].
30 September 30 September
2017 2016Rupees in thousand
7 . These interim condensed financial statements were authorized for issue on 19 October 2017 by the Board of
Directors of the Company.
8. GENERAL
Figures presented in these interim condensed financial statements have been rounded off to the nearest
thousand rupees.
Chief Financial Officer Chief Executive Director
10 | Berger Paints Pakistan Limited Interim Financ 7 11ial Report September 30, 201 |
6 . TRANSACTION WITH RELATED PARTIES
The following table provides details in respect of transactions entered into with related parties during the
quarter ended on September 30, 2017. All transactions were carried out at arms length price.
SALES
Berger Road Safety (Private) Limited - a subsidiary 25,076 23,301
Buxly Paints Limited - related party 51,800 41,252
Dadex Eternit 532
59
TOLL MANUFACTURING INCOME
Buxly Paints Limited - related party 4,453
3,153
RENTAL INCOME AND OTHER SERVICES CHARGED
Buxly Paints Limited - related party 300
1,352
Berger Road Safety (Private) Limited - a subsidiary 1,511
1,299
RENTAL EXPENSES
Buxly Paints Limited - related party 465
453
ROYALTY
Buxly Paints Limited - related party 450
558
Slotrapid Limited B.V.I - holding company 7,206
8,410
For the period ended 30 September 2017
Notes to the Condensed InterimUnconsolidated Financial Information (Un-audited)
Additions 31,977 9,180
30 September 30 September
2017 2016Rupees in thousand
1 . THE COMPANY AND ITS OPERATIONS
The company was incorporated in Pakistan on March 25, 1950 as a Private Limited Company under the
Companies Act, 1913 and was subsequently converted into a public Limited Company. The Company's
shares are quoted on Pakistan Stock Exchange (previously known as Karachi and Islamabad Stock
Exchanges). The Company is engaged in the manufacturing of paints, varnishes and other related items.
Slotrapid Limited is the holding Company of Berger Paints Pakistan Limited.
The registered office of the Company is situated at 36, Industrial Estate Kot Lakhpat Lahore and the
production facility of the Company is located at 28 Km Multan Road, Lahore.
2 . BASIS OF PREPARATION
These interim condensed financial statements are unaudited and are being submitted to the shareholders in
accordance with section 245 of the Companies Ordinance, 1984 and have been prepared in accordance with
the requirements of International Accounting Standard (IAS) - 34 "Interim Financial Reporting", as applicable
in Pakistan.
The interim condensed financial statements do not include all the information and disclosures required in the
annual financial statements, and should be read in conjunction with the Company's annual financial
statements as at June 30, 2017.
3 . SIGNIFICANT ACCOUNTING POLICIES
The accounting policies and methods of computation followed in the preparation of interim condensed
financial statements are same as those published in the annual financial statements for the year ended June
30, 2017.
4 . PROPERTY, PLANT AND EQUIPMENT
5 . CONTINGENCIES AND COMMITMENTS
5.1 Contingencies
There is no change in the status of contingency, set out in note 29 to the annual financial statements of the
company for the year ended 30 June 2017.
5.2 Commitments
5.2.1 Outstanding letter of credit as at September 30, 2017 amounted to Rs. 455.63 million [June 30, 2017: Rs.
482.70 million].
5.2.2 Outstanding letter of guarantees as at September 30, 2017 amounted to Rs. 77.69 million [June 30, 2017: Rs.
61.28 million].
30 September 30 September
2017 2016Rupees in thousand
7 . These interim condensed financial statements were authorized for issue on 19 October 2017 by the Board of
Directors of the Company.
8. GENERAL
Figures presented in these interim condensed financial statements have been rounded off to the nearest
thousand rupees.
Chief Financial Officer Chief Executive Director
10 | Berger Paints Pakistan Limited Interim Financ 7 11ial Report September 30, 201 |
6 . TRANSACTION WITH RELATED PARTIES
The following table provides details in respect of transactions entered into with related parties during the
quarter ended on September 30, 2017. All transactions were carried out at arms length price.
Berger Paints Pakistan LimitedConsolidated Financial Statements
This page has been left blank intentionally
12 | Berger Paints Pakistan Limited Interim Financ 7 13ial Report September 30, 201 |
Berger Paints Pakistan LimitedConsolidated Financial Statements
This page has been left blank intentionally
12 | Berger Paints Pakistan Limited Interim Financ 7 13ial Report September 30, 201 |
Sales - net 1,190,644 1,188,595
Cost of sales 907,346 794,162
Gross profit 283,298 394,433
Marketing and Distribution costs 215,394 273,510
Administrative expenses 49,361 44,826
264,755 318,336
Operating profit 18,543 76,097
Other income 8,272 93
26,815 76,190
Other charges 2,486 4,137
Finance cost 23,387 16,171
25,873 20,308
Share of profit of associated Company 254 247
Profit before taxation 1,196 56,129
Taxation 1,512 18,756
Profit after taxation (316) 37,373
Attributable to:
Equity holders of the parent 688 37,780
Non-controlling interest (1,004) (407)
Earning per share - basic and diluted 0.04 2.08
Rupees
As on 30 September 2017
Condensed InterimConsolidated Balance Sheet (Un-audited)
Chief Financial Officer Chief Executive Director Chief Financial Officer Chief Executive Director
30 September 30 June
2017 2017
1,155,803 1,146,452
45,030 44,767
69,590 70,143
55,973 50,929
24,981 23,478
1,710 1,710
1,353,087 1,337,479
15,961 16,924
897,239 1,022,809
1,159,011 1,291,939
148,893 110,305
28,958 30,387
12,764 15,834
299,361 329,694
42,275 42,275
21,817 49,755
2,626,279 2,909,922
3,979,366 4,247,401
250,000 250,000
181,864 181,864
742,425 736,441
924,289 918,305
17,154 18,158
515,260 521,363
121,246 138,263
121,821 119,977
3,732 3,732
- -
246,799 261,972
1,227,086 1,495,613
14,165 13,394
68,088 68,088
1,330 1,773
965,195 948,735
2,275,864 2,527,603
2,522,663 2,789,575
Non-current assets
Property, plant and equipment
Intangibles
Investments - related parties
Long term loans
Long term deposits
Deferred taxation
Current assets
Stores
Stock in trade
Trade debts
Loans and advances
Trade deposits and short term prepayments
Other receivables
Taxation - net
Short term investments
Cash and bank balances
Share capital and reserves
Authorised share capital
25,000,000 ordinary shares of Rs.10 each
Share capital
Reserves
Non-controlling intrest
Surplus on revaluation of fixed assets
Non-current liabilities
Long-term financing
Staff retirement benefits
Liabilities against assets subject to finance lease
Deferred taxation
Current liabilities
Trade and other payables
Accrued finance cost
Current maturity of long-term financing
Current maturity of liabilities against assets subject to finance lease
Short term borrowings
Contingencies and commitments
3,979,366 4,247,401
Rupees in thousand
Rupees
30 September
2017
30 September
2016Rupees in thousand
Condensed InterimConsolidated Profit and Loss Account (Un-audited)For the period ended 30 September 2017
14 | Berger Paints Pakistan Limited Interim Financ 7 15ial Report September 30, 201 |
Sales - net 1,190,644 1,188,595
Cost of sales 907,346 794,162
Gross profit 283,298 394,433
Marketing and Distribution costs 215,394 273,510
Administrative expenses 49,361 44,826
264,755 318,336
Operating profit 18,543 76,097
Other income 8,272 93
26,815 76,190
Other charges 2,486 4,137
Finance cost 23,387 16,171
25,873 20,308
Share of profit of associated Company 254 247
Profit before taxation 1,196 56,129
Taxation 1,512 18,756
Profit after taxation (316) 37,373
Attributable to:
Equity holders of the parent 688 37,780
Non-controlling interest (1,004) (407)
Earning per share - basic and diluted 0.04 2.08
Rupees
As on 30 September 2017
Condensed InterimConsolidated Balance Sheet (Un-audited)
Chief Financial Officer Chief Executive Director Chief Financial Officer Chief Executive Director
30 September 30 June
2017 2017
1,155,803 1,146,452
45,030 44,767
69,590 70,143
55,973 50,929
24,981 23,478
1,710 1,710
1,353,087 1,337,479
15,961 16,924
897,239 1,022,809
1,159,011 1,291,939
148,893 110,305
28,958 30,387
12,764 15,834
299,361 329,694
42,275 42,275
21,817 49,755
2,626,279 2,909,922
3,979,366 4,247,401
250,000 250,000
181,864 181,864
742,425 736,441
924,289 918,305
17,154 18,158
515,260 521,363
121,246 138,263
121,821 119,977
3,732 3,732
- -
246,799 261,972
1,227,086 1,495,613
14,165 13,394
68,088 68,088
1,330 1,773
965,195 948,735
2,275,864 2,527,603
2,522,663 2,789,575
Non-current assets
Property, plant and equipment
Intangibles
Investments - related parties
Long term loans
Long term deposits
Deferred taxation
Current assets
Stores
Stock in trade
Trade debts
Loans and advances
Trade deposits and short term prepayments
Other receivables
Taxation - net
Short term investments
Cash and bank balances
Share capital and reserves
Authorised share capital
25,000,000 ordinary shares of Rs.10 each
Share capital
Reserves
Non-controlling intrest
Surplus on revaluation of fixed assets
Non-current liabilities
Long-term financing
Staff retirement benefits
Liabilities against assets subject to finance lease
Deferred taxation
Current liabilities
Trade and other payables
Accrued finance cost
Current maturity of long-term financing
Current maturity of liabilities against assets subject to finance lease
Short term borrowings
Contingencies and commitments
3,979,366 4,247,401
Rupees in thousand
Rupees
30 September
2017
30 September
2016Rupees in thousand
Condensed InterimConsolidated Profit and Loss Account (Un-audited)For the period ended 30 September 2017
14 | Berger Paints Pakistan Limited Interim Financ 7 15ial Report September 30, 201 |
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 38,994
Finance cost paid (19,414)
Income taxes - net (46,677)
Staff retirement benefits 8,617
Long term loans (9,581)
Long term deposits (1)
Net cash inflows / (outflows) from operating activities (28,062)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure (9,179)
Sale proceeds on disposal of property, plant and equipment -
Short term investments 20,000
Net cash (outflows) / inflows from investing activities 10,821
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long term financing (20,150)
Lease liability (442)
Net cash (outflows) from financing activities (20,592)
Net increase / (decrease) in cash and cash equivalents (37,833)
Cash and cash equivalents at 1 Jul (350,503)
Cash and cash equivalents at 30 Sep (388,336)
Chief Financial Officer Chief Executive Director Chief Financial Officer Chief Executive Director
Profit after taxation 37,373
Fair value (loss)/gain on 'Available for sale' investments 12,077
Total comprehensive (loss)/income for the period 49,450
Attributable to :
Equity holder of the parent 49,857
Non-controlling intrest
(316)
(807)
(1,123)
(119)
(1,004) (407)
Condensed InterimConsolidated Statement of Comprehensive Income (Un-audited)For the period ended 30 September 2017
30 September
2017
30 September
2016Rupees in thousand
30 September
2017
30 September
2016Rupees in thousand
9,393
(22,616)
28,821
(6,307)
(5,044)
(1,503)
2,744
(31,977)
2,295
-
(29,682)
(17,017)
(443)
(17,460)
(44,398)
(498,980)
(543,378)
For the period ended 30 September 2017
Condensed InterimConsolidated Cash Flow Statement (Un-audited)
16 | Berger Paints Pakistan Limited Interim Financ 7 17ial Report September 30, 201 |
Other comprehensive income
Items that may be reclassified to profit and loss
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 38,994
Finance cost paid (19,414)
Income taxes - net (46,677)
Staff retirement benefits 8,617
Long term loans (9,581)
Long term deposits (1)
Net cash inflows / (outflows) from operating activities (28,062)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure (9,179)
Sale proceeds on disposal of property, plant and equipment -
Short term investments 20,000
Net cash (outflows) / inflows from investing activities 10,821
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long term financing (20,150)
Lease liability (442)
Net cash (outflows) from financing activities (20,592)
Net increase / (decrease) in cash and cash equivalents (37,833)
Cash and cash equivalents at 1 Jul (350,503)
Cash and cash equivalents at 30 Sep (388,336)
Chief Financial Officer Chief Executive Director Chief Financial Officer Chief Executive Director
Profit after taxation 37,373
Fair value (loss)/gain on 'Available for sale' investments 12,077
Total comprehensive (loss)/income for the period 49,450
Attributable to :
Equity holder of the parent 49,857
Non-controlling intrest
(316)
(807)
(1,123)
(119)
(1,004) (407)
Condensed InterimConsolidated Statement of Comprehensive Income (Un-audited)For the period ended 30 September 2017
30 September
2017
30 September
2016Rupees in thousand
30 September
2017
30 September
2016Rupees in thousand
9,393
(22,616)
28,821
(6,307)
(5,044)
(1,503)
2,744
(31,977)
2,295
-
(29,682)
(17,017)
(443)
(17,460)
(44,398)
(498,980)
(543,378)
For the period ended 30 September 2017
Condensed InterimConsolidated Cash Flow Statement (Un-audited)
16 | Berger Paints Pakistan Limited Interim Financ 7 17ial Report September 30, 201 |
Other comprehensive income
Items that may be reclassified to profit and loss
Balance as at 01 July 2016
Total comprehensive income for the period ended
30 September 2016
Profit for the period ended 30 September 2016
Other Comprehensive income for the period
- Fair value gain on 'Available for sale' investments
Total comprehensive income for the period ended
30 September 2016
Surplus on revaluation of property, plant and
equipment realized through incremental depreciation
Balance as at 30 September 2016
Transaction with owners of the Parent Company
Final dividend for the year ended 30 June 2016
@ Rs. 4.50 per share
Interim dividend for the year ended 30 June 2017
@ Rs. 4.50 per share
Total comprehensive income for the period ended
30 June 2017
Profit for the period
Other Comprehensive income for the period
- Fair value gain on 'Available for sale' investments
- Remeasurement of defined benefit obligation
Total comprehensive income for the period ended 30 June 2017
Surplus on revaluation of property, plant and
equipment realized through incremental depreciation
charged on related assets during the period
Balance as at 30 June 2017
Total comprehensive income for the period ended
30 September 2017
Profit for the period ended 30 September 2017
Other Comprehensive income for the period
- Fair value (loss) on 'Available for sale' investments
Total comprehensive income for the period ended
30 September 2017
Surplus on revaluation of property, plant and
equipment realized through incremental depreciation
charged on related assets during the period
Balance as at 30 September 2017
Total equity
attributable
to owners of the
parent
Company
181,864 56,819 6,977 285,000 302,727 833,387 19,628 853,015
- -
-
-
37,780
37,780
(407) 37,373
- -
12,077
-
-
12,077
- 12,077
- -
12,077
-
-
12,077
- 12,077
- -
12,077
-
37,780
49,857
(407) 49,450
181,864 56,819
19,054 285,000 348,073
charged on related assets during the period - - - - 7,566 7,566 - 7,566
890,810
19,221 910,031
- -
-
-
(81,839)
(81,839)
- (81,839)
- -
-
-
(81,839)
(81,839)
- (81,839)
- -
-
-
162,869
162,869
(1,063) 161,806
- -
9,934
-
-
9,934 - 9,934
- -
-
-
4,986
4,986 - 4,986
- -
9,934
-
4,986
14,920
- 14,920
- -
9,934
-
167,855
177,789
(1,063) 176,726
- -
-
-
13,384
13,384
- 13,384
181,864 56,819
28,988
285,000
365,634
918,305
18,158 936,463
- - - - 688 688 (1,004) (316)
- - (807) - - (807) - (807)
- - (807) - - (807) - (807)
- - (807) - 688 (119) (1,004) (1,123)
- - - - 6,103 6,103 - 6,103
181,864 56,819 28,181 285,000 372,425 924,289 17,154 941,443
Reserves
Total equity
Revenue
Share capital Share premium General reserve
Accumulated
Profit Fair value reserve
Capital
Non controlling
Intrest
Rupees in thousand
For the period ended 30 September 2017
Condensed InterimConsolidated Statement of Changes in Equity (Un-audited)
Notes
18 | Berger Paints Pakistan Limited Interim Financ 7 19ial Report September 30, 201 |
Chief Financial Officer Chief Executive Director
Balance as at 01 July 2016
Total comprehensive income for the period ended
30 September 2016
Profit for the period ended 30 September 2016
Other Comprehensive income for the period
- Fair value gain on 'Available for sale' investments
Total comprehensive income for the period ended
30 September 2016
Surplus on revaluation of property, plant and
equipment realized through incremental depreciation
Balance as at 30 September 2016
Transaction with owners of the Parent Company
Final dividend for the year ended 30 June 2016
@ Rs. 4.50 per share
Interim dividend for the year ended 30 June 2017
@ Rs. 4.50 per share
Total comprehensive income for the period ended
30 June 2017
Profit for the period
Other Comprehensive income for the period
- Fair value gain on 'Available for sale' investments
- Remeasurement of defined benefit obligation
Total comprehensive income for the period ended 30 June 2017
Surplus on revaluation of property, plant and
equipment realized through incremental depreciation
charged on related assets during the period
Balance as at 30 June 2017
Total comprehensive income for the period ended
30 September 2017
Profit for the period ended 30 September 2017
Other Comprehensive income for the period
- Fair value (loss) on 'Available for sale' investments
Total comprehensive income for the period ended
30 September 2017
Surplus on revaluation of property, plant and
equipment realized through incremental depreciation
charged on related assets during the period
Balance as at 30 September 2017
Total equity
attributable
to owners of the
parent
Company
181,864 56,819 6,977 285,000 302,727 833,387 19,628 853,015
- -
-
-
37,780
37,780
(407) 37,373
- -
12,077
-
-
12,077
- 12,077
- -
12,077
-
-
12,077
- 12,077
- -
12,077
-
37,780
49,857
(407) 49,450
181,864 56,819
19,054 285,000 348,073
charged on related assets during the period - - - - 7,566 7,566 - 7,566
890,810
19,221 910,031
- -
-
-
(81,839)
(81,839)
- (81,839)
- -
-
-
(81,839)
(81,839)
- (81,839)
- -
-
-
162,869
162,869
(1,063) 161,806
- -
9,934
-
-
9,934 - 9,934
- -
-
-
4,986
4,986 - 4,986
- -
9,934
-
4,986
14,920
- 14,920
- -
9,934
-
167,855
177,789
(1,063) 176,726
- -
-
-
13,384
13,384
- 13,384
181,864 56,819
28,988
285,000
365,634
918,305
18,158 936,463
- - - - 688 688 (1,004) (316)
- - (807) - - (807) - (807)
- - (807) - - (807) - (807)
- - (807) - 688 (119) (1,004) (1,123)
- - - - 6,103 6,103 - 6,103
181,864 56,819 28,181 285,000 372,425 924,289 17,154 941,443
Reserves
Total equity
Revenue
Share capital Share premium General reserve
Accumulated
Profit Fair value reserve
Capital
Non controlling
Intrest
Rupees in thousand
For the period ended 30 September 2017
Condensed InterimConsolidated Statement of Changes in Equity (Un-audited)
Notes
18 | Berger Paints Pakistan Limited Interim Financ 7 19ial Report September 30, 201 |
Chief Financial Officer Chief Executive Director
For Free Color Advisory111-BERGER (111-237-437) KHI, LHR, ISB.
Faisalabad: 041-8554044, 8724050 Peshawar: 091-5703127 Quetta: 081-2822772-3Gujranwala: 055-3250744, 3843450 Multan: 061-6300624, 6300475
Berger Paints Pakistan Limited 28 Km, Multan Road, Lahore, Pakistan.111-BERGER (111-237-437) KHI, LHR, ISB.
www.berger.com.pk
www.facebook.com/berger.pak
BERGER HELPLINE
08000-2000
www.twitter.com/BergerPakistan
Notes
20 | Berger Paints Pakistan Limited
For Free Color Advisory111-BERGER (111-237-437) KHI, LHR, ISB.
Faisalabad: 041-8554044, 8724050 Peshawar: 091-5703127 Quetta: 081-2822772-3Gujranwala: 055-3250744, 3843450 Multan: 061-6300624, 6300475
Berger Paints Pakistan Limited 28 Km, Multan Road, Lahore, Pakistan.111-BERGER (111-237-437) KHI, LHR, ISB.
www.berger.com.pk
www.facebook.com/berger.pak
BERGER HELPLINE
08000-2000
www.twitter.com/BergerPakistan
Notes
20 | Berger Paints Pakistan Limited