quarterly report 2017 - tpl trakker ltd

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TPL Trakker Quarterly Report March 2017CORPORATE OFFICE 12th & 13th Floor, Centrepoint, O Shaheed-e-Millat Expressway, Adjacent KPT Interchange, Karachi - 74900 Phone: (+92)-21-34390300 UAN: (+92)-21-111-000-300 Fax: (+92)-21-35316032 Email: [email protected] Website: www.tpltrakker.com
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Company Information Geographical Presence
DIRECTOR'S REPORT Economic Outlook
Strategic Investment Investment in Group Companies
Future Outlook Acknowledgement
Unconsolidated Condensed Interim Prot & Loss Account Unconsolidated Condensed Interim Cash Flow Statement
Unconsolidated Condensed Interim Statement of Changes in Equity Notes to the Unconsolidated Condensed Interim Financial Statements
Consolidated Condensed Interim Balance Sheet Consolidated Condensed Interim Prot And Loss Account
Consolidated Condensed Interim Cash Flow Statement Consolidated Condensed Interim Statement of Changes in Equity
Notes to the Consolidated Condensed Interim Financial Statements
04 05
Vision
Mission
To be the market leader for bringing innovative solutions and products to Pakistan and beyond.
In continuation of the vision to be the best of the best in everything and anything we do and setting benchmarks for
outside.
TPL TRAKKER INSTALLATION CENTER 20-B, Block 6, P.E.C.H.S., Karachi (Behind Bank Al Habib Islamic Banking Branch on Main Shahrah-e-Faisal) Phone: +92-21-34324011-13 UAN: +92-21-111-000-300 FAX: +92-21-34324014
ISLAMABAD OFFICE 55-B, 10th Floor (South) ISE Tower, Jinnah Avenue, Blue Area, Islamabad. UAN: +92-51-111-000-300 FAX: +92-51-2895073
LAHORE OFFICE 51-M, Denim Road, Quaid-e-Azam Industrial Estate (Kot Lakhpat), Lahore UAN: +92-42-111-000-300 FAX: +92-42-35157233
MULTAN OFFICE House No. 5, Suraj Miani Road, Opp. Ashraf Cardiac Clinic, Chungi No. 1, Multan UAN: +92-61-111-000-300 FAX: +92-61-4519391
FAISALABAD OFFICE P-6161, West Canal road, Faisalabad UAN: 041-111-000-300, Phone: +92-41-8501471-3 Fax: +92-41-8501470
HYDERABAD OFFICE A-8/9, District Council Complex, Hyderabad Phone: +92-22-2783154 FAX: +92-22-2728676
06Quarterly Report Mar 2017
BOARD OF DIRECTORS LEGAL ADVISOR Jameel Yusuf (S.St.) Director/Chairman Mohsin Tayebaly & Co. Ali Jameel Director Maj Gen (R) Zafar-ul-Hasan Naqvi Director BANKERS Mark Rousseu Director Habib Metropolitan Bank Limited Nadeem Arshad Elahi Director Standard Chartered Bank Limited Saad Nissar Director National Bank of Pakistan Limited Vice Admiral (R) Muhammad Sha HI (M) Director Dubai Islamic Bank Pakistan Limited Bilal Alibhai Director Habib Bank Limited JS Bank Limited CHIEF EXECUTIVE OFFICER Bank Al Habib Limited Ali Jameel Bank Islami United Bank Limited Al Baraka Bank (Pakistan) Limited Bank of Punjab Summit Bank
CHIEF FINANCIAL OFFICER SHARE REGISTRAR Yousuf Zohaib Ali THK Associates 1st Floor, 40-C, Block-6, PECHS, Karachi-75530, Pakistan.
Tel: (021) 34168270 UAN: 111-000-322
Fax: (021) 34168271
AUDIT COMMITTEE REGISTERED OFFICE Nadeem Arshad Elahi Chairman 12th Floor, Centrepoint, O-Shaheed-e- Maj Gen (R) Zafar-ul-Hasan Naqvi Member Millat Expressway, Adjacent KPT Saad Nissar Member Interchange, Karachi, Postal Naseer Ali Khan Secretary Code: 74900
HUMAN RESOURCE & REMUNERATION COMMITTEE WEB PRESENCE Maj Gen (R) Zafar-ul-Hasan Naqvi Chairman www.tpltrakker.com Ali Jameel Member Nadeem Arshad Elahi Member Nader Nawaz Secretary
AUDITORS EY Ford Rhodes Chartered Accountants
DIRECTORS’ REPORT
Business Performance - Consolidated
The Group performed well during the period under review and achieved increase in revenue of Rs. 139.2 million i.e. 10% whereas the prot before tax was reported at Rs. 132.3 million as compared to loss before tax of Rs. 19.4 million in the corresponding period. This was majorly due to the fact that during the period ended March 31, 2017, there is an exchange loss of Rs. 1.8 million as compared to Rs. 68.9 million in the corresponding period. And revenue of Rs. 71 million was added for TPL Life Insurance Limited, a subsidiary acquired during the period. Additionally, a gain on bargain purchase of TPL Life Insurance Limited of Rs. 86 million was included in other income. The Group reported earnings per share of Rs. 0.33 as compared to Rs. 0.18 in the corresponding nine months period.
Revenue
Period Ended
Mar 2015
Mar 2016
Mar 2017
Asset Tracking
Asset tracking consists of the Company’s agship product, Vehicle Tracking as well as a new product line launched in Q2 of this scal year called Bike Tracking. Bike Tracking is a discreet motorbike tracker that lets you remotely monitor the unauthorized movements of your motorbike in real-time.
Container Tracking
Container tracking consists of two product areas: Safe Transport Environment (STE) and Container Tracking business.
For the nine months period ended March 2017, revenue from the Company’s major business segments was as follows:
Rupees in ‘000’
March’17 725,463 318,031 50,012 14,649
1,108,155
1,100,049
Business Segments Standalone Revenue
Dear Shareholders
On behalf of the Directors of the Company, it is my pleasure to present to you the condensed interim nancial statements with the performance review of the Company for the nine months period ended March 31, 2017.
Ination rate increased 4.94% YoY basis. US Dollar declined by approximately 1.6% as compared to last quarter while the interest rate was steady at 5.75%. Pakistan entering MSCI’s Emerging Markets category, depicts larger foreign direct investments. Investment in CPEC increased by 34% and GDP is expected to grow at the rate of 5.2% for the scal year 2016-2017.
After the end of Punjab Rozgar Scheme, a sales plunge of 41% in Suzuki Bolan and 45% in Suzuki Ravi was mitigated by some models of Honda (Civic and City) and Suzuki (WagonR and Swift) aggregating a decline of 10% in locally produced automobiles sale during the period ended March 31, 2017; compared to the same period of last year, according to data of the Pakistan Automotive Manufacturers Association (PAMA). Auto sales decreased to 158,608 units during the period under review from 176,898 units in the same period of last year.
Business Performance - Standalone
The Company reported an increase in revenue of Rs. 8.1 million i.e. 0.74% and increase in gross prot of Rs. 50.5 million, i.e. 9.6% compared to the corresponding period. Furthermore, Company has also improved the gross prot margin to 52% from 48% for the nine months period. Loss before tax of Rs. 21.1 million reported in this quarter mainly resulted due to decline in STE revenue because of Pak Afghan border closure. Earnings per share was Rs 0.25 as compared to Rs. 0.26 in the corresponding nine months period.
Quarterly Report Mar 2017
1,000,000 2015 2016 2017
During the period, the Company has acquired a wholly owned subsidiary namely TPL Life Insurance Limited (formerly Asia Care Health and Life Insurance Company Limited). The company has further opted for 8 million right shares @ Rs. 10 per share in this quarter.
TPL Life Insurance Limited aims to provide innovative life and health insurance products based on international standards, tailored to cater to the divergent needs of the citizens of Pakistan. Through investing in state-of-the-art technologies and utilizing market intelligence, the Company aspires to be the fastest growing Health and Life Insurance Company in Pakistan.
TPL Properties Limited (TPLP)
TPLP has entered into a joint venture agreement with the sponsors / shareholders of Homie Katarak Chambers (Private) Limited (HKC). TPLP will acquire 90% shares in HKC by issuing its shares at agreed swap ratio. TPLP’s interest in acquiring a controlling stake in HKC is due to the fact that HKC owns a property which TPLP is keen on developing into a residential cum commercial project. For this purpose the company has started meeting and negotiating with foreign architects and designers.
Further TPLP’s new services segment of developer services have been received well by the market and it has received requirements from corporates including a leading FMCG and Financial Institution. The identication of location options together with design concept development is in progress.
TPLP achieved a growth of 1.3% in rental income to Rs. 275.8 million from Rs. 272.1 million approximately in the corresponding period.
TPL Direct Insurance Limited (TDIL)
TPL Direct Insurance Limited closed on a positive note for the nine months ended March 31, 2017.
4. STRATEGIC INVESTMENT
09 10
Net Premium Participants Takaful Fund - Gross Contributions Total Revenue Prot after tax EPS
March’17 942,315 476,582
Rupees in ‘000’
Quarterly Report Mar 2017
Safe Transportation Environment (STE)
Safe Transportation Environment (STE) Project was initiated by the FBR in 2010 to manage risk of cargo pilferage in Customs transit and transshipment movements and to meet the requirement of the bilateral Afghan Transit Trade Agreement. TPL Trakker is the only licensee of FBR under Tracking and Monitoring Cargo Rules 2012.
During the period ending March 31, 2017, more than 593 Prime Mover Device’s (PMD) have been installed and approximately 43,500 trips have been monitored by installing Container Security Device (CSD) as compared to approximately 552 PMDs and 48,400 trips in the same period of the corresponding year. The decline in trips and revenue was due to Pak Afghan border closures for approximately 32 days, the longest period in recent history.
Container Tracking
Container tracking has been an important product for the Company. As part of this service, we provide a range of end-to-end monitoring services such as intrusion monitoring and route deviation, which protect shipments against pilferage or theft. Our infrastructure stretches across major urban centers of Pakistan, and we provide security services for routes through TPL Security Services. During the period ending March 31, 2017 approximately 12,100 trips have been monitored as compared to 11,500 trips in the corresponding period.
TPL Maps
Digital maps across the world have signicant impact on the commercial and social-economic growth. Based on insights we took the initiative of developing Pakistan’s rst digital maps, and hence the TPL Maps project was initiated in 2015 as a strategic business unit of TPL Trakker.
TPL Maps, Pakistan’s rst digital Mapping solution provider, oers location based solutions, in car navigation services, location information and the largest GIS database in Pakistan. TPL Maps is the only Company licensed by the Survey of Pakistan. With 100+ cities, 3.0 million + addresses, live trac, 3D models, Night view, Street Vision, Satellite view. The Maps are available on iOS and Android platforms along with web interface.
TPL Maps have also ventured into product development by launching the online directory (TPLdirectory.com), Location Based Advertising Solutions (LBAS), Virtual Tours portal (tpltours.com) with 360 degree walk through tours of monuments and historical locations. We are currently working on developing expertise in Articial Intelligence (AI), Virtual Reality (VR), Predictive Trac and Big Data Analytics along with other new technologies. TPL Maps also oers business specic customized solutions for mapping and GIS data analytics using state of the art technologies.
We have received an overwhelming response from public and private sector organizations, corporates and individuals with almost 220,000+ downloads since the launch in mid-August, 2016.
The Navigation business growth looks very promising; we have secured the entire business from IMC and Suzuki with long term contract. We are also eyeing other Automobile manufacturers along with imported vehicles. During the period, more than 9,100 units were sold generating growth of 27% in revenue as compared to 5,900 units sold in the same period last year.
TPL Rupiya
TPL Rupiya is working with a local issuing bank in order to drive tap & Pay services on the Lahore Transport Company (LTC) buses. The project aims to digitize the passenger ticketing process which will provide transaction transparency to LTC and bring over 80,000 people into nancial inclusivity. The pilot phase of the project is expected to be rolled out for the women only Pink Bus; this will be
Quarterly Report Mar 2017
used to test the solution delivery, reconciliation of transactions and will be reviewed by the State Bank of Pakistan (SBP) in regards to TPL Rupiya getting approval for the permanent PSP/PSO license, for which SBP have earlier issued a conditional license. Once the permanent license is granted, the project will be scaled up to allow for Tap & Pay service oering on over 250 buses in the LTC network. Furthermore, TPL Rupiya will then look to build its merchant network and expand its service oering across other channels.
ACKNOWLEDGEMENT
CONCLUSION
11 12
Together with Hisense, TPL Trakker has submitted its application for pre-qualication on 10th February 2017.
In addition to the Punjab Safe City Projects, we are also exploring upcoming opportunities in Karachi and Quetta as well.
We would like to thank the shareholders of the Company for the condence they have reposed in us. We also appreciate the valued support and guidance provided by the Securities Exchange and Commission of Pakistan, Federal Board of Revenue and the Pakistan Stock Exchange. We would also express our sincere thanks to the employees, strategic partners, vendors, suppliers, nancial institutions and customers for their support in pursuit of our corporate objectives.
The Board of Directors thank Almighty Allah for His blessings and hope that the future will give new dimensions to the business.
Karachi: April 25, 2017
Quarterly Report Mar 2017
Strategy and Focus Areas
The strategy and focus of the company is to reposition itself as an Internet of Things (IoT) focused technology company rather than just a tracking company and move further towards regional expansion.
Customer and market expansion
The Company is looking to expand its product range in order to provide not just Asset Tracking services, but also to provide higher value added services in the form of monitoring reports and data. To this end, the Company is looking to increase its targeted customer segments through creating Digital Sales channels, aggressively marketing online and introducing new products. In terms of new sales channels, the company is already selling PT devices through daraz.pk and Yayvo.com & is now launching them on Telemart.pk and Mycart.pk.
Major projects are being undertaken across the country due to the China-Pakistan Economic Corridor (CPEC). The potential growth of container trips here is exponential. The Company is taking initiative by exploring local assembly & manufacturing of devices in order to be exible enough to capture this expected growth in demand.
Another focus of the Company is to launch TPL Trakker Franchises which is well underway and expected launch date falls in the 4th Quarter of this year.
Big Data & IoT
The Company is also moving into Big Data and is in the process of amalgamating the data available throughout its subsidiaries. Currently, work is being undertaken to develop driving behavior score algorithms. The next step will be to correlate insurance claims data with the corresponding driving behavior score – in order to do this a POC is under process with TPL Direct Insurance.
Furthermore, the Company is looking to expand its operations beyond the borders of Pakistan and become a regional player in the eld of IoT within the next two years with negotiations already underway with existing players in Qatar and UAE.
Safe City Project
TPL Trakker Ltd has partnered exclusively with Hisense, one of the largest Chinese multinational white goods and electronics manufacturer, to bid for the Punjab Safe City Project. After the success of the Lahore Safe City Project, the Punjab government is now implementing the Safe City Project in 6 other cities of Punjab. This project aims to improve the Police’s operational eciency and is worth USD 300+ Million.
TPL Security Services (Private) Limited (TPLSS)
TPL Security Services (Private) Limited performed well with a revenue growth of 35% compared to corresponding period. The increase in revenue is due to expansion of customer base and the Company’s constant eorts to explore new business opportunities.
Quarterly Report Mar 2017
Jameel Yusuf (S.St.) Chairman
725,463
318,031
50,012
14,649
1,108,155
853,632
308,089
1,161,721
62,258
0.82
10%
55%
22%
26%
26%
942,315
476,582
1,418,897
78,624
1.04
20172016
March 31, 2017
As at March 31, 2017 (Un-audited) March 31,
2017 Rupees
20
19 Quarterly Report Mar 2017
ASSETS NON-CURRENT ASSETS Fixed Assets Property and equipment 5 746,979,196 547,429,989 Intangible assets 1,444,093,870 1,430,336,278 2,191,073,066 1,977,766,267 Long-term investments 6 804,841,384 446,565,530 Long-term loans 706,644 430,466 Long-term deposits 53,795,176 30,480,042 Interest accrued 220,102 13,482,945 Due from related parties 7 52,915,735 243,307,802 Deferred tax asset - 4,585,096 3,103,552,107 2,716,618,148 CURRENT ASSETS Stock-in-trade 368,744,508 293,838,894 Trade debts 1,250,061,186 1,037,594,834 Loans and advances 25,097,200 9,295,832 Trade deposits and prepayments 81,074,701 36,843,396 Interest accrued 11,777,792 12,148,610 Other receivables 8,343,399 8,183,397 Short-term investments 659,230,449 772,530,449 Due from related parties 7 64,657,114 85,030,006 Taxation - net 39,356,272 - Cash and bank balances 8 13,588,757 74,082,114 2,521,931,378 2,329,547,532 TOTAL ASSETS 5,625,483,484 5,046,165,680
EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Share capital Authorised 230,000,000 (June 30, 2010: 230,000,000) ordinary shares of Rs.10/- each 2,300,000,000 2,300,000,000 Issued, subscribed and paid-up capital 2,172,489,630 2,172,489,630 Revenue reserve - unappropriated prot 681,442,718 771,646,701 2,853,932,348 2,944,136,331 SURPLUS ON REVALUATION OF FIXED ASSETS 228,863,550 - NON-CURRENT LIABILITIES Long-term nancing 645,864,831 724,255,448 Liabilities against assets subject to nance lease 11,335,887 20,717,461 Deferred liabilities 3,177,778 5,377,780 Deferred tax 3,322,862 - Long Term Loans 66,558,668 50,653,413 730,260,026 801,004,102 CURRENT LIABILITIES Trade and other payables 597,557,398 360,982,256 Accrued mark-up 50,897,584 103,519,045 Short term nancing 72,984,305 34,199,476 Running nance under mark-up arrangements 9 769,061,860 420,965,430 Current portion of non-current liabilities 199,828,679 207,051,627 Due to related parties 10 54,204,786 68,159,261 Taxation - net - 866,482 Advance monitoring fees 67,892,949 105,281,670 1,812,427,561 1,301,025,247 CONTINGENCIES AND COMMITMENTS 11 TOTAL EQUITY AND LIABILITIES 5,625,483,485 5,046,165,680
The annexed notes from 1 to 16 form an integral part of these condensed interim nancial statements.
Quarterly Report Mar 2017
21 22
Unconsolidated Condensed Interim Cash Flow Statement
For the Nine Months Ended March 31, 2017 (Un-audited)
Quarterly Report Mar 2017 Quarterly Report Mar 2017
March 31, 2017
March 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES Prot before taxation 68,219,991 59,653,606 Adjustment for non cash charges and other items: Depreciation 93,078,918 91,707,128 Amortisation 39,008,810 50,230,296 Reversal of provision for doubtful debts (588,116) 19,458,273 Finance cost 110,726,936 81,357,966 Loss/ (gain) on sale of property and equipment (3,539,013) (1,919,154) Exchange loss / (gain) -net 453,923 10,281,825 Gain on disposal of investment in TPL Life (1,170,000) - Deferred income (2,200,001) (3,903,315) 235,771,457 47,213,019 Operating prot before working capital changes 303,991,448 306,866,625 (Increase) / decrease in current assets Stock in trade (74,905,614) (71,830,394) Trade debts (211,878,236) (42,765,338) Loans and advances (15,801,368) 30,376,788 Trade deposits & prepayments (44,231,305) 46,319,287 Other receivables (160,002) (894,643) Accrued markup 13,633,661 60,468,824 Due from related parties 210,764,959 (6,656,670) (122,577,904) 15,017,854 Increase / (decrease) in current liabilities Trade and other payables 225,878,418 38,727,110 Due to related party (13,954,475) 13,513,332 Advance monitoring fees (37,388,721) 5,207,544
Cash ows from operations 174,535,221 57,447,986 Payments for: Finance cost (163,348,397) (60,947,842) Income taxes (47,054,767) (33,032,186) (210,403,165) (93,980,028) Net cash ows from operating activities 145,545,600 285,352,437 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of - property and equipment (61,654,653) (123,697,658) - capital work-in-progress (4,570,545) - - intangible assets (6,355,555) (128,996,314) - intangible assets under development (46,410,847) Sale proceeds from disposal of property and equipment 3,633,247 10,609,157 Purchase of investment in TPL Life (440,280,021) - Sale proceeds from disposal of investment 76,550,000 - Long-term loans (276,178) 205,816 Long-term deposits (23,315,134) (1,214,213) Net cash ows used in investing activities (502,679,686) (243,093,212) CASH FLOWS FROM FINANCING ACTIVITIES Dividend paid (10,696,724) Long-term loans - net 10,587,703 (60,166,666) Obligation under nance lease - net (6,393,899) (25,586,738) Short Term Financing 38,784,829 (14,290,809) Long term nancing - net (83,737,610) (60,470,339) Net cash ows used in nancing activities (51,455,702) (160,514,552)
Net increase / (decrease) in cash and cash equivalents (408,589,787) (118,255,327) Cash and cash equivalents at the beginning of the period (346,883,316) (212,744,235) Cash and cash equivalents at the end of the period 14 (755,473,103) (330,999,562)
The annexed notes from 1 to 16 form an integral part of these condensed interim nancial statements.
Turnover – net 12 1,108,154,995 1,100,049,706 341,977,633 361,818,247 Cost of sales (530,977,280) (573,386,344) (173,796,237) (197,763,764) Gross prot 577,177,715 526,663,362 168,181,396 164,054,483 Distribution expenses (167,271,780) (167,129,080) (56,038,019) (53,284,088) Administrative expenses (255,658,139) (233,638,657) (96,513,065) (82,711,773) Operating prot 154,247,796 125,895,625 15,630,312 28,058,622
Finance cost (113,763,995) (84,476,631) (40,646,987) (27,565,078) Other income 29,554,562 29,733,857 3,835,380 12,201,636 Exchange (loss) / gain (453,923) (10,281,825) (453,923) 641,758 Workers' welfare fund (1,364,449) (1,217,420) 459,944 (1,217,420) Prot before taxation 68,219,991 59,653,606 (21,175,274) 12,119,518 Taxation (13,150,073) (3,632,734) - - Prot for the period 55,069,918 56,020,872 (21,175,274) 12,119,518 Other comprehensive income Other comprehensive income to be reclassied to prot or loss in subsequent periods
Unrealised loss on available-for -sale investment at fair value (119,924,167) - (119,924,167) - Total comprehensive income for the period (64,854,249) 56,020,872 (141,099,441) 12,119,518 Earnings per share - Basic and diluted (Rupees) 0.25 0.26 (0.10) 0.06
The annexed notes from 1 to 16 form an integral part of these condensed interim nancial statements.
Unconsolidated Condensed Interim Statement of Changes in Equity
23 24
For the Nine Months Ended March 31, 2017 (Un-audited) For the Nine Months Ended March 31, 2017 (Un-audited)
Notes to the Unconsolidated Condensed Interim Financial Statements
June 30, 2016
March 31, 2017
Quarterly Report Mar 2017
1. LEGAL STATUS AND OPERATIONS 1.1. TPL Trakker Limited (the Company) was incorporated in Pakistan on December 04, 2008 as a private limited company
under the Companies Ordinance, 1984. Subsequently in 2009, the Company was converted into a public company. The Company got listed on then Karachi Stock Exchange Limited (Now Pakistan Stock Exchange Limited) on July 16, 2012. The registered oce of the Company is situated at Centrepoint Building, O Shaheed-e-Millat Expressway, Near KPT Interchange Flyover, Karachi. The principal activity of the Company is installation and sale of tracking devices, vehicle tracking and eet management.
1.2. TPL Holdings (Private) Limited is the parent company, which holds 114,950,274 (2016: 114,950,274) ordinary shares of the
Company representing 52.91 percent (2016: 52.91 percent) shareholding as of the balance sheet date. 1.3. These condensed interim nancial statements are the separate condensed interim nancial statements of the Company,
in which investments in the below mentioned subsidiaries and associates have been accounted for at cost less accumulated impairment losses, if any, as of balance sheet date, the Company has the following subsidiaries and associates:
% of shareholding
TPL Security Services (Private) Limited (TPLS) 99.90 99.90 TPL Properties Limited (TPLP) 26.44 26.44 TPL Life Insurance Limited (TPLL) 86.00 - Centrepoint Management Services (Private) Limited (Sub-subsidiary) (CMS) 26.44 26.44 Associates
TPL Direct Insurance Limited (TDIL) 24.39 24.39 Trakker Middle East LLC (TME) 29.00 29.00
2. STATEMENT OF COMPLIANCE These condensed interim nancial statements of the Company for the nine months period ended March 31, 2017 have
been prepared in accordance with the requirements of the International Accounting Standard 34 - Interim Financial Reporting and provisons of and directives issued under the Companies Ordinance, 1984. In case where requirements dier, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed.
3. BASIS OF PREPARATION 3.1. These condensed interim unconsolidated nancial information has been prepared in accordance with approved
accounting standards as applicable in Pakistan for Interim Financial Reporting. This condensed interim unconsolidated nancial information does not contain information required for full nancial statements and should be read in conjunction with the nancial information of the Company for year ended June 30, 2016.
3.2. This condensed interim nancial information comprises of the condensed interim unconsolidated balance sheet as at
March 31, 2017, condensed interim unconsolidated prot and loss account, condensed interim unconsolidated cash ow statement, condensed interim unconsolidated statement of changes in equity and notes thereto for the nine months period ended March 31, 2017.
3.3. The comparative condensed unconsolidated balance sheet, presented in the condensed interim nancial information, as at June 30, 2016 has been extracted from the annual audited unconsolidated nancial statements of the company for the year then ended whereas the comparative condensed interim unconsolidated prot and loss account, condensed interim unconsolidated cash ow statement and condensed statement of changes in equity for the nine months period ended March 31, 2016. The comparative condensed interim unconsolidated prot and loss account for the nine months period ended March 31, 2016 which is included in this condensed interim unconsolidated nancial information is neither audited nor reviewed.
4. SIGNIFICANT ACCOUNTING POLICIES The accounting policies and the methods of computation adopted in the preparation of this condensed interim nancial
report are the same as those applied in the preparation of the annual nancial statements (unconsolidated) for the year ended June 30, 2016, except for the adoption of the following new standards:
Quarterly Report Mar 2017
Jameel Yusuf (S.St.) Director
Ali Jameel Chief Executive
Balance as at July 01, 2015 - restated 2,172,489,630 625,309,601 2,797,799,231 Prot for the period - 56,020,872 56,020,872 Other comprehensive income for the period, net of tax - - - Total comprehensive income for the period - 56,020,872 56,020,872 Balance as at March 31, 2016 2,172,489,630 681,330,473 2,853,820,103 Balance as at July 01, 2016 2,172,489,630 771,646,701 2,944,136,331 Prot for the period - 55,069,918 55,069,918 Other comprehensive income for the period, net of tax - (119,924,167) (119,924,167) Total comprehensive loss for the period - (64,854,249) (64,854,249) Final dividend for the year ended June 30, 2016 @ Rs.0.25 per share - (25,574,673) (25,574,673) Surplus on revaluation of operating xed assets realised : - on account of incremental depreciation charged on related assets for the period - 243,177 243,177 - deferred tax thereon - (18,238) (18,238) - 224,939 224,939 Balance as at March 31, 2017 2,172,489,630 681,442,718 2,853,932,348
The annexed notes from 1 to 16 form an integral part of these condensed interim nancial statements.
March 31, 2017
Notes to the Unconsolidated Condensed Interim Financial Statements
For the Nine Months Ended March 31, 2017 (Un-audited)
Notes to the Unconsolidated Condensed Interim Financial Statements
Quarterly Report Mar 2017
computer equipment and softwares, oce equipments, furniture and ttings.
6. LONG-TERM INVESTMENTS Represents investments in TPL Securities (Private) Ltd (TPLS), TPL Life Insurance Limited (TPLL) [subsidiary
companies] and TPL Direct Insurance Limited (TDIL) [assocaited company] amounting to Rs. 37.441 million, Rs. 364.9 and Rs. 402.499 million (June 30, 2016: Rs. 44.066 million, Nil and Rs. 402.499 million) respectively.
In July 2016, the Company has acquired TPL Life Insurance Limited (formerly Asia Care Health and Life Insurance Company Limited), a wholly owned subsidiary, at a total net consideration of Rs. 260.280 million (for 50 million ordinary shares). Subsequent to the initial purchase, the Company has made a further investment aggregating to Rs. 180 million (for 18 million ordinary shares) by virtue of availing the right shares oered to the Company.
Later the Comapny sold 9.5 million ordinary shares having carrying valule of Rs. 75.380 million against the sale proceed of Rs. 76.550 million, resulting in a gain of Rs. 1.17 million. As of March 31, 2017, the Company holds 58.5 million ordinary shares of TPLL representing 86% of its shareholding."
7. DUE FROM RELATED PARTIES - unsecured Holding company - TPL Holdings (Private) Limited 113,590 18,789,612 Subsidiary companies - TPL Security Services (Private) Limited 55,688,298 57,334,544 - TPL Properties Limited 52,802,145 243,307,802 108,490,443 300,642,346 Others - Trakker Direct Finance (Private) Limited 771,300 757,425 - The Resource Group Pakistan Limited 5,884,572 5,884,572 - TPL Logistic (Private) Limited 778,522 734,805 - TPL Rupiyah (Private) Limited 1,534,422 1,529,048 8,968,816 8,905,850 117,572,849 328,337,808 Less: Current portion 64,657,114 85,030,006 52,915,735 243,307,802
March 31, 2017
Associates - Investment Entities: Applying the Consolidation Exception (Amendment) IFRS 11 - Joint Arrangements - Accounting for Acquisition of Interest in Joint Operation (Amendment)
IAS 1 - Presentation of nancial statements: Disclosure initiative - clarication on materiality, disaggregation and subtotals, Note, Other Comprehensive Income (OCI) (Amendments)
IAS 16 - Property, Plant and Equipment and IAS 38 - Intangible Assets - Clarication of Acceptable Method of Depreciation
and Amortization (Amendment) IAS 16 - Property, Plant and Equipment and IAS 41 Agriculture - Agriculture: Bearer Plants (Amendment) IAS 27 Separate Financial Statements: Equity Method in Separate Financial Statements (Amendment) The Company expect that the adoption of above standards and improvements does not have any material impact on these
condensed interim nancial statements.
5. PROPERTY AND EQUIPMENT Operating xed assets 5.1 725,711,720 528,924,376 Capital work-in-progress 5.2 21,267,476 18,505,613 746,979,196 547,429,989 5.1. The movement in operating xed assets during the period / year is as follows: Opening balance 528,924,376 490,816,104 Add: Additions during the period / year 5.1.1 56,494,813 168,481,934 Surplus on revaluation 233,465,683 - 818,884,872 659,298,038 Disposals during the period/year (WDV) (94,234) (10,530,406) Depreciation charge for the period/ year (93,078,918) (119,843,256) (93,173,152) (130,373,662) Operating xed assets (WDV) 725,711,720 528,924,376 5.1.1. Additions including transfers during the period / year Computers and accessories 5,369,029 16,073,524 Generator - 16,000,400 Electrical equipment 39,811,573 59,910,828 Furniture and ttings 7,681,809 44,380,727 Vehicles - 25,458,320 Mobile phones 3,632,402 6,658,135 56,494,813 168,481,934
Quarterly Report Mar 2017
Notes to the Unconsolidated Condensed Interim Financial Statements
For the Nine Months Ended March 31, 2017 (Un-audited)
Notes to the Unconsolidated Condensed Interim Financial Statements
Quarterly Report Mar 2017
8. CASH AND BANK BALANCES Cash in hand 560,920 594,853 At banks in: current accounts - local currency - conventional banking 12,160,661 10,599,955 - islamic banking 583,318 10,338,250 12,743,979 20,938,205 current accounts - foreign currency - conventional banking 132,564 133,314 saving accounts - local currency - conventional banking 151,294 52,415,742 13,588,757 74,082,114
9. RUNNING FINANCE UNDER MARK-UP ARRANGEMENTS The facilities for short term running nance are obtained from various commercial banks aggregating to Rs.
712.5 million (2016: Rs. 420 million) which was fully utilized (2016: fully utilised) as of the balance sheet date. These carry markup ranging between 3 months KIBOR plus 1 percent to 3.5 percent (2016: 3 months KIBOR plus 2.1 percent to 3.5 percent) per annum. These are secured by way of registered hypothecation over stocks and book debts aggregating to Rs. 480 million (2016: Rs. 313 million) and equitable rst pari passu charge over properties to the extent of Rs. 396 million (2016: Rs. 268 million).
10. DUE TO RELATED PARTIES - Unsecured Associated Companies TPL Direct Insurance Limited (TDIL) 46,373,030 67,857,685 Trakker Middle East LLLC (TME) 301,576 301,576 Subsidiary company TPL Life Insurance Limited 7,530,180 - 10.1 54,204,786 68,159,261 10.1. There are no major changes in the terms and conditions as disclosed in the nancial statements (unconsolidat-
ed) for the year ended June 30, 2016. 11. CONTINGENCIES AND COMMITMENTS There are no major changes in the status of contingencies and commitments as reported in the annual nancial
statements (unconsolidated) of the Company for the year ended June 30, 2016.
March 31, 2017
March 31, 2016
13. TRANSACTIONS WITH RELATED PARTIES
Related parties of the Company comprise holding company, subsidiaries, associates, directors and key management personnel. Transactions with related parties during the period, other than those which have been disclosed elsewhere in these condensed interim nancial statements are as follows:
Name / Relationship TPL Holdings (Private) Limited – (Holding company) Expenses paid by the Company 65,447 2,383,702 Mark-up on current account (Due to) 6,113,767 6,205,208 Mark-up on current account (Due from) - - Amount Paid /repaid by the Holding company 160,547,646 29,500,000 Amount received by the Company from TPL Holdings (Private) Limited 179,289,115 247,843,107 TPL Direct Insurance Limited – (Subsidiary company) Sales 153,548,561 208,516,983 Expenses paid by the Company on behalf of TDIL 46,226,373 45,122,342 Amount received from TDIL 110,156,339 167,244,917 Mark-up on current account 7,218,043 12,304,098 Asset transferred by the compnay to TDIL - 10,405,776 Payment made to TDIL - 3,601,548 Expenses paid by TDIL on behalf of the Company 1,226,620 2,667,158 TPL Security Services (Pvt) Limited – (Subsidiary company) Expenses incurred by the Company 79,440,349 62,808,542 Services acquired by the Company from TPLS 9,153,945 9,457,530 Amount received by the Company 68,671,096 30,720,000 Adjustment on account of amount payable on behalf of the company for services recevied 3,261,554 6,238,529
Quarterly Report Mar 2017
Trakker Middle East LLC. - (Associated company) Expense paid by TME on behalf of the Company - 43,386 TPL Direct Finance (Pvt.) Ltd. [formerly Trakker Financial Consultancy (Private) Limited] - (Common directorship) Expenses incurred by the Company 13,875 34,545 Mark-up on current account 51,852 52,955 The Resource Group Pakistan Limited - (Common directorship) Expenses incurred by the Company - 1,000,000 Mark-up on current account 400,222 280,548 TPL Logistics (Pvt) Limited - (Common directorship) Expenses incurred by the Company 43,717 82,420 Markup on current account 51,904 49,990 TPL Rupiya (Private) Limited Expenses incurred by the Company 5,375 1,529,047 Markup on current account 104,137 51,168 TPL Properties (Private) Limited - (Associated company) Expenses incurred by the Company 16,911,437 17,253,499 Payments made by the Company 119,245,997 - Amount received by the Company 325,853,091 7,147,504 Expenses paid by TPLP on behalf of the Company 810,000 - Mark up on current account 10,366,656 13,083,687 TPL Life Insurance Company Expenses incurred by the Company 19,760,854 - Expenses paid by TPL Life on behalf of the Company 4,593,258 - Amount received by Company 4,697,776 - Advance against expenses 18,000,000 - Centrepoint Management Services (Pvt.) Ltd Services acquired by the Company from CMS 25,298,492 26,670,291 Payments made by the Company 33,313,882 - Advance against rent given to CMS - 8,530,660 Digicore Electronics (Pty) Limited Purchases made during the year by the Company 8,290,037 14,277,933 Payments made by the Compnay 12,700,546 9,454,427 Sta retirment benet TPL Trakker Limited - Provident fund employer contribution 10,943,391 8,287,821
29 30
Notes to the Unconsolidated Condensed Interim Financial Statements
For the Nine Months Ended March 31, 2017 (Un-audited)
Notes to the Unconsolidated Condensed Interim Financial Statements
Quarterly Report Mar 2017
14. CASH AND CASH EQUIVALENTS Cash and bank balances 13,588,757 60,829,311 Running nance under mark-up arrangements (769,061,860) (391,828,873) (755,473,103) (330,999,562)
15. DATE OF AUTHORISATION OF ISSUE These condensed interim nancial statements were authorised for issue on April 25, 2017 by the Board of
Directors of the Company. 16 GENERAL
16.1. Corresponding gures have been reclassied for the purpose of better presentation and comparison, wherev- er necessary. However, there are no material reclassications to the report.
16.2. Figures have been rounded o to the nearest rupee, unless otherwise stated.
Quarterly Report Mar 2017
As at March 31, 2017 (Un-audited) March 31,
2017 Rupees
Consolidated Condensed Interim Balance Sheet
As at March 31, 2017 (Un-audited)
March 31, 2017
EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Share capital Authorised 230,000,000 (June 30, 2016: 230,000,000) ordinary shares of Rs.10/- each 2,300,000,000 2,300,000,000
Issued, subscribed and paid-up capital 2,172,489,630 2,172,489,630 Revenue reserves - unappropriated prot 582,385,140 533,816,997 2,754,874,770 2,706,306,627 Non-controlling interest 2,613,684,749 2,525,420,572 5,368,559,519 5,231,727,199 SURPLUS ON REVALUATION OF FIXED ASSETS 228,863,550 - NON - CURRENT LIABILITIES Long-term nancing 2,545,144,276 2,746,866,809 Liabilities against assets subject to nance lease 11,335,887 30,217,506 Long-term loans 66,558,668 50,653,413 Deferred Liabilities 11,719,201 10,738,080 Due to related parties 8 82,872,176 32,338,178 Accrued mark-up 897,621 5,612,555 2,718,527,829 2,876,426,541
CURRENT LIABILITIES Trade and other payables 902,133,041 620,806,027 Accrued mark-up 67,517,660 178,348,148 Short - term nancing 72,984,305 234,199,476 Running nance under mark - up arrangements 769,061,860 420,965,430 Current portion of non - current liabilities 432,078,682 451,312,032 Due to related parties 8 46,674,606 91,453,670 Advance monitoring fees 67,892,949 105,281,670 2,358,343,103 2,102,366,453
CONTINGENCIES AND COMMITMENTS 9 TOTAL EQUITY AND LIABILITIES 10,674,294,001 10,210,520,193
The annexed notes from 1 to 16 form an integral part of these consolidated condensed interim nancial statements.
Jameel Yusuf (S.St.) Director
Ali Jameel Chief Executive
Quarterly Report Mar 2017
Consolidated Condensed Interim Prot and Loss Account
Jameel Yusuf (S.St.) Director
Ali Jameel Chief Executive
For the Nine Months Ended March 31, 2017 (Un-audited) For the Nine Months Ended March 31, 2017 (Un-audited)
March 31, 2017
March 31, 2016
Total Comprehensive income attributable to : Owners of the parent 72,747,877 38,026,973 (31,993,773) (22,120,275) Non-Controlling interest 12,884,177 (45,729,636) (3,015,477) (56,768,258) 85,632,054 (7,702,663) (35,009,251) (78,888,533)
The annexed notes from 1 to 16 form an integral part of these consolidated condensed interim nancial statements.
Consolidated Condensed Interim Cash Flow Statement
March 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES Prot before taxation 132,252,216 (19,404,004) Adjustment for non cash charges and other items: Depreciation 125,467,281 118,273,574 Amortisation of intangible assets 42,255,205 50,328,794 Provision for doubtful debts - 19,458,273 Finance cost 161,677,772 275,983,365 Gain on sale of property and equipment (3,555,499) (1,919,154) Reversal of provision for doubtful debts (7,206,974) - Gain on bargain purchase of a subsidiary (86,282,392) - Share of prot in investment in associates (9,159,421) (20,265,419) Exchange (gain) / loss-net (197,779) 67,681,825 Deferred Income (3,770,288) (3,903,315) 219,227,905 505,637,943 Operating prot before working capital changes 351,480,121 486,233,939 (Increase) / decrease in current assets Stock-in-trade (74,619,141) (71,841,394) Trade debts (214,397,395) (97,289,454) Loans and advances (64,188,042) 47,091,088 Trade deposits and prepayments (31,817,924) 21,448,909 Other receivables (160,006) (691,093) Due from related parties 18,613,056 19,841,807 Interest accrued 370,807 41,247,959 Accrued invsetment income (4,941,070) - Premiums due but unpaid (15,488,227) - (386,627,943) (40,192,178) Increase / (decrease) in current liabilities Trade and other payables 276,588,150 (98,827,024) Advance monitoring fees (25,073,916) 5,207,543 Due to related parties 21,182,959 (260,158,560) Retention money - 3,704,375 Advance against rent and maintenance (19,616,813) 47,685,190 253,080,380 (302,388,476) Cash ows from operations 217,932,558 143,653,285
Payments for : Finance costs paid (277,223,194) (421,251,053) Income taxes paid (54,551,352) (70,648,371) (331,774,544) (491,899,424) Net cash ows from operating activities (113,841,986) (348,246,139)
35 36Quarterly Report Mar 2017
Consolidated Condensed Interim Cash Flow Statement
March 31, 2017
Ja m
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of - property and equipment (102,720,270) (151,184,244) - capital work-in-progress – net (5,333,709) 28,231,092 - intangible assets (22,888,300) (128,996,313) - intangible assets under development (46,410,847) - Sale proceed from disposals of property and equipment 8,292,961 10,609,157 Purchase of TPL Life shares (440,280,021) - Sale of TPL Life shares 76,550,000 - Purchase of investment - mutual funds & listed equities (223,571,170) - Proceeds from disposal of mutual funds & listed equities 500,701,490 - Prot on TDR 29,062,645 - Dividends received 439,584 - Long-term investments (857,476) (11,393,708) Investment property (31,123,341) (24,795,145) Long-term loans (276,178) 205,816 Long-term deposits (102,774,190) (1,314,213) Net cash ows used in investing activities (361,188,822) (278,637,558) CASH FLOWS FROM FINANCING ACTIVITIES Long-term loans - net (1,428,078) (57,666,666) Dividend paid (10,696,724) - Obligation under nance lease repaid - net (43,965,940) (15,458,936) Short-term nancing - net (161,215,169) 185,709,191 Issue of shares - 342,500,000 Long term nancing (178,538,229) (104,084,167) Deferred liabilities - (3,903,316) Loan from director (15,428,025) - Net cash ows (used in) / from nancing activities (411,272,165) 347,096,106 Net (decrease) / increase in cash and cash equivalents (886,302,973) (279,787,591) Cash and cash equivalents at the beginning of the period 506,809,044 (32,038,317) Cash and cash equivalents at the end of the period 13 (379,493,929) (311,825,908)
The annexed notes from 1 to 16 form an integral part of these consolidated condensed interim nancial statements.
For the Nine Months Ended March 31, 2017 (Un-audited)
37 38Quarterly Report Mar 2017 Quarterly Report Mar 2017
Notes to the Consolidated Condensed Interim Financial Statements
For the Nine Months Ended March 31, 2017 (Un-audited)
1 LEGAL STATUS AND OPERATIONS OF THE GROUP The Group comprises of the Holding Company and the following subsidiary companies that have been
consolidated in these nancial statements: 1.1. Holding Company TPL Trakker Limited TPL Trakker Limited [the Holding Company] is a subsidiary of TPL Holdings (Private) Limited [TPL, the ultimate
parent company], which holds 52.91 percent (2016: 52.91 percent) ordinary shares of the Holding Company. The Holding Company was incorporated in Pakistan on December 04, 2008 under the Companies Ordinance, 1984 (the Ordinance). The Holding Company is listed on Pakistan Stock Exchange Limited (PSEL) with eect from July 16, 2012. The principal activity of the Holding Company is installation and sale of tracking devices, vehicle tracking and eet management. The registered oce of the Holding Company is situated at Centrepoint Building, O Shaheed-e-Millat Expressway, Near KPT Interchange Flyover, Karachi.
1.2. As of the balance sheet date, the Holding Company has the following subsidiaries and associates:
1.2.1. TPL Security Services (Pvt) Limited TPL Security Services (Private) Limited (TPLS) is a private limited company incorporated on May 01, 2000 in
Pakistan under the Companies Ordinance, 1984. The principal activity of TPLS is to provide security services. The registered oce of the TPLS is situated at 39-K, Block-6, P.E.C.H. Society, Karachi. The company is in a process to update the new registered address as Centrepoint Building, O Shaheed-e-Millat Expressway, Near KPT Intercange Flyover, Karachi, Pakistan. TPLS is fully supported by the nancial assistance of the Holding Company for smooth running of business operations.
1.2.2. TPL Life Insurance Limited The Holding company has acquired a wholly owned subsidiary namely TPL Life Insurance Limited (TPLL)
(formerly Asia Care Health & Life Insurance Company Limited). It was incorporated on March 19, 2008 under the Companies Ordinance, 1984 as public limited company and registered as a life insurance company by the Securities and Exchange Commission of Pakistan (SECP) under the Insurance Ordinance, 2000, it was granted licence for insurance business on March 02, 2009. The registered oce of the Company is situated at Centrepoint Building, O Shaheed-e-Millat Expressway, Near KPT Interchange Flyover, Karachi. Subsequent to the initial purchase, the Company has made a further investment of Rs.180 million (for 18 million ordinary shares) by virture of availing the right shares oered to the Company.
Later during the period, the Company has sold 9.5 million ordinary shares having carrying value of Rs. 75.380 million against the proceed of Rs. 76.550 million.
March 31, June 30, 2017 2016
% of shareholding
Subsidiaries TPL Security Services (Private) Limited [TPLS] 99.90 99.90 TPL Life Insurance Limited [TPLL] 86.00 - TPL Properties Limited [TPLP] 26.44 26.44 Centrepoint Management Services (Private) Limited (Sub-subsidiary) 26.44 26.44 Associates TPL Direct Insurance Limited [TDIL] 24.39 24.39 Trakker Middle East LLC [TME] 29.00 29.00
Notes to the Consolidated Condensed Interim Financial Statements
For the Nine Months Ended March 31, 2017 (Un-audited)
1.2.3. TPL Properties Limited TPL Properties Limited (TPLP) was incorporated in Pakistan as a private limited company on February 14, 2007
under the Companies Ordinance, 1984. The principal activity of TPLP is to invest, purchase, develop and build real estate and to sell, rent out or otherwise dispose o in any manner the real estate including commercial and residential buildings, houses, shops, plots or other premises. The registered oce of the TPLP is situated at Centrepoint Building, O Shaheed-e-Millat Expressway, Near KPT Interchange Flyover, Karachi, Pakistan.
During the year ended June 30, 2016, TPLP has issued 34.25 million and 8 million ordinary shares having a face value of Rs. 10 each at premium, for cash consideration. Further, on June 30, 2016, the PSEL approved the listing of TPLP through issuance of 55.75 million ordinary shares subscribed through book building process by High Net Worth Individuals and Institutions. However, the trading in TPLP shares on PSEL started from July 4, 2016.
1.2.4. Centrepoint Management Services (Private) Limited Centrepoint Management Services (Private) Limited (CMS) was incorporated in Pakistan as a private limited
company on August 10, 2011 under the Companies Ordinance, 1984. The principal activity of CMS is to provide building maintenance services to all kinds and description of residential and commercial buildings. The registered oce of the Company is situated at Centrepoint Building, O Shaheed-e-Millat Expressway, Near KPT Interchange Flyover, Karachi, Pakistan. CMS is a subsidiary of TPL Trakker Limited by vitue of TPLP 99% shareholding in the company as of the balance sheet date.
Associates 1.2.5. TPL Direct Insurance Limited TPL Direct Insurance Limited (TDIL) was incorporated in Pakistan in 1992 as a public limited company under
the Companies Ordinance, 1984 to carry on general insurance business. The principal oce of TDIL is located at Centrepoint Building, O Shaheed-e-Millat Expressway, Near KPT Interchange Flyover, Karachi, Pakistan.
1.2.6. Trakker Middle East L.L.C. Trakker Middle East L.L.C. (TME) is a limited liability company registered in Abu Dhabi, United Arab Emirates.
The principal activities of the TME are the selling, marketing and distribution of products and services in the eld of wireless, eet management, tracking and telemetry services. The registered oce of TME is at P.O. Box 52331, Abu Dhabi, United Arab Emirates.
2. BASIS OF PREPARATION These unaudited consolidated condensed interim nancial statements have been prepared in condensed
form in accordance with approved accounting standards as applicable in Pakistan for interim nancial reporting and is being submitted to the shareholders as required under section 245 of the Companies Ordinance, 1984. These consolidated condensed interim nancial statements do not include all of the information required for full annual nancial information and should be read in conjunction with the annual nancial information as at and for the year ended June 30, 2016.
These consolidated condensed interim nancial statements have been prepared under the ‘historical cost’ convention, except for investment property which is measured at fair value and certain nancial instruments which are measured in accordance with the requirements of International Accounting Standard (IAS-39) “Financial Instruments: Recognition and Measurement”.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies and methods of computation followed for the preparation of these consolidated
condensed interim nancial statements are the same as those applied in preparing the consolidated nancial statement for the year ended June 30, 2016.
4039 Quarterly Report Mar 2017
March 31, 2017
For the Nine Months Ended March 31, 2017 (Un-audited)
4. PROPERTY AND EQUIPMENT Operating Fixed Assets 4.1 1,490,270,460 1,286,959,218 Capital work-in-progress 21,267,476 18,505,613 1,511,537,936 1,305,464,831 4.1. Operating xed assets The following is the movement in operating xed assets during the period: Opening balance 1,286,959,218 1,274,750,025 Add: Additions during the period 100,175,632 182,104,554 Add: Surplus of revaluation of land & building 233,465,683 - 1,620,600,533 1,456,854,579 Less: Disposals during the period (WDV) 4,862,792 10,890,316 Depreciation charge for the period 125,467,281 159,005,045 130,330,073 169,895,361 Operating xed assets (WDV) 1,490,270,460 1,286,959,218 5. INTANGIBLE ASSETS Opening balance 1,520,261,040 1,451,210,613 Add: Additions/ transfers during the period 22,888,300 91,236,607 Intangible assets under development 46,410,847 60,831,039 Less: Disposals during the period - (25,349,718) 1,589,560,187 1,577,928,541 Less: Amortisation charge for the period 57,667,501 42,255,205 Intangible assets (WDV) 1,547,304,982 1,520,261,040
6. LONG TERM INVESTMENTS Investment in associated companies - equity method TPL Direct Insurance Limited 525,593,534 506,417,217
Notes to the Consolidated Condensed Interim Financial Statements
For the Nine Months Ended March 31, 2017 (Un-audited)
March 31, 2017
7. DUE FROM RELATED PARTIES - unsecured, considered good Ultimate parent company TPL Holdings (Private) Limited 7.1 113,590 18,789,612 Others TPL Direct Finance (Private) Limited [formerly Trakker Financial Consultancy (Private) Limited] 771,300 757,425 TPL Logistic (Private) Limited 778,522 734,805 TPL Rupiya (Private) Limited 1,534,422 1,529,048 The Resource Group Pakistan Limited 5,884,572 5,884,572 7.1 8,968,816 8,905,850 9,082,406 27,695,462 7.1. Represents current account balances with related parties carrying markup at the variable rate of 6 months
KIBOR plus 3 percent i.e. 9.06 percent and xed rate of 18 percent (June 30, 2016:9.06 percent and xed rate of 18 percent) per annum and are repayable on demand.
8. DUE TO RELATED PARTIES - UNSECURED Ultimate parent company TPL Holdings (Private) Limited 82,872,176 32,651,583 Associated companies TPL Direct Insurance Limited (TDI) 46,373,030 67,857,685 Trakker Middle East (TME) 301,576 301,576 46,674,606 68,159,261 Loan from a Director - 22,981,004 129,546,782 123,791,848 Less: Current portion 46,674,606 (91,453,670) 82,872,176 32,338,178
9. CONTINGENCIES AND COMMITMENTS There are no major changes in the status of contingencies and commitments as reported in the annual nancial
statements of the Company for the year ended June 30, 2016.
Quarterly Report Mar 2017
41 42Quarterly Report Mar 2017 Quarterly Report Mar 2017
12. TRANSACTIONS WITH RELATED PARTIES Related parties of the Group comprise of ultimate parent company, associates, suppliers, directors and key
management personnel. Transactions with related parties and associated undertakings during the period, other than those which have been disclosed elsewhere in these consolidated condensed interim nancial statements, are as follows:
Name / Relationship TPL Holdings (Private) Limited – (Holding company) Amount received by the Company 371,289,115 358,893,107 Advances given by the Company - 29,500,000 Expenses paid by the Company 65,447 2,383,702 Payment made by the Company 302,013,647 580,300,000 Loan Received by the company - 50,500,000 Loan Paid by the company 313,405 - Mark up amount Paid by the Company 1,603,606 - Mark-up on current account 9,862,497 38,937,527 TPL Direct Insurance Limited (TDIL) – (Associated Company) Sales 153,548,561 208,516,983 Expenses incurred/paid by the Company on behalf of TDIL 46,226,373 45,122,342 Amount received from TDIL 110,156,339 167,244,917 Mark-up on current account 7,218,043 12,304,098 Asset transferred by the Company to TDIL 10,405,776 - Services acquired by the Company - 34,067,403 Services rendered by the Company 12,400,819 7,481,005 Payment made by the Company - 3,601,548 Advance Received against maintenance and other services by the Company 20,156,355 9,317,066 Expenditure incurred/paid by TDIL on behalf of the Company 1,226,620 2,667,158 TPL Direct Finance (Private) Limited - (Common directorship) Expenses incurred by the Company 13,875 34,545 Mark-up on current account 51,852 52,955 Global Connect Limited - (Common directorship) Amount received by the Company - 1,423,261 The Resource Group Pakistan Limited - (Common directorship) Expenses incurred by the Company - 1,000,000 Service rendered by TPL Security 1,249,500 - Mark-up on current account 400,222 280,548
Notes to the Consolidated Condensed Interim Financial Statements
For the Nine Months Ended March 31, 2017 (Un-audited)
March 31, 2017
Notes to the Consolidated Condensed Interim Financial Statements
For the Nine Months Ended March 31, 2017 (Un-audited) March 31,
2017 Rupees
Jameel Yusuf (S.St.) Director
Ali Jameel Chief Executive
TPL Logistics (Private) Limited - (Common directorship) Expenses incurred by the Company 43,717 82,420 Markup on current account 51,904 49,990 Digicore Electronics (Pty) Limited - (Common directorship) Purchases made during the year by the Company 8,290,037 14,277,933 Payments made to Digicore 12,700,546 9,454,427 Trakker Middle East LLC. - (Associated company) Expenses paid by TME on behalf of the Company - 43,386 Sta retirement benet TPL Trakker Limited-Provident Fund Employer Contribution 10,943,391 8,287,821
13. CASH AND CASH EQUIVALENTS Cash and bank balances 389,567,931 80,002,965 Running nance under mark-up arrangements (769,061,860) (391,828,873) (379,493,929) (311,825,908) 14. DATE OF AUTHORISATION OF ISSUE These consolidated condensed interim nancial statements were authorised for issue on April 25, 2017 by the
Board of Directors of the Company. 15. CORRESPONDING FIGURES Certain prior year’s gures have been rearranged consequent upon certain changes in the current year’s
presentation for more appropriate comparison, where necessary. 16. GENERAL Figures have been rounded o to the nearest rupee, unless otherwise stated.
43 44Quarterly Report Mar 2017 Quarterly Report Mar 2017
Note: Note:
Note: