Ghani Automobile Industries Limited

First QuarterFinancial Statements

2014-15

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Corporate InformationBOARD OF DIRECTORS

AUDIT COMMITTEE

COMPANY SECRETARY

CHIEF FINANCIAL OFFICER

AUDITORS

LEGAL ADVISORS

SHARE REGISTRAR

BANKERS

HEAD OFFICE &REGISTERED OFFICE

Mr. Imtiaz Ahmad Khan Chairman

Mr. Aftab Ahmad Khan Chief Executive OfficerMr. Anwaar Ahmad Khan

Mrs. Reema AnwaarMrs. Ayesha AftabMr. Junaid GhaniMr. Obaid GhaniMr. Jubair Ghani

ChairmanMemberMember

ChairmanMemberMember

Hafiz Mohammad Imran Sabir

Mr. Umer Farooq Khan

Hassan Farooq & CompanyChartered Accountants

Ally Law AssociatesCh. Muhammad Siddique

Corplink (Pvt) Ltd.Wings Arcade, 1-K Commercial Model Town Lahore, PakistanPhones : (042) 35916714, 35916719 Fax : (042) 35869037

Albaraka Islamic BankAllied Bank of Pakistan LimitedHabib Bank LimitedMeezan Bank Limited, Islamic BankingSoneri Bank Limited, Islamic BankingBurj Bank LimitedHabib Metropolitan Bank LimitedBank Alfalah Limited

40-L Model Town Lahore, PakistanUAN : (042) 111 949 949Fax : (042) 3517 2263E-mail : i nfo@ghaniautomobiles.comhttp://www.ghaniautomobiles.com

MARKETING OFFICE

AUTOMOBILE PLANT

12 D/3, Chandni Chowk KDA Scheme No. 7-8 Karachi - 74000UAN : (021) 111 949 949, Fax : (021) 3492 6349E-mail : info@ghaniautomobiles.com

49-KM, Multan Road, (from Lahore)

HR & R COMMITTEE Mr. Anwaar Ahmad KhanMrs. Ayesha AftabMr. Obaid Ghani

Dr. Amjad AqeelMrs. Ayesha AftabMr. Jubair Ghani

Ms. Zahra AftabDr. Amjad Aqeel

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Director’s Report

FINANCIAL INDICATORS

Rupees ‘000’

Sales – Net

Gross profit / (loss)

Profit / (loss) before taxation

Net profit / (loss)

Earning / (loss) per share

47,153

2,613

(2,746)

(2,746)

(0.05)

32,999

2,876

(1,297)

(1,297)

(0.03)

September 30, 2013September 30, 2014

Dear Shareholders,

Assala-mo-Alaikum wa Rahmatullah wa Barakatohu.

The Board of Directors of Ghani Automobile Industries Limited is pleased to present financial statements of the company for the first quarter ended September 30, 2014.

The results for the first quarter ended September 30, 2014 are as follow:

During the first quarter ended September 30, 2014, the net sale of the Company has increased to Rupees 47 million as compared to Rupees 33 million for the corresponding period of last year. Gross Profit was Rupees 2.6 million as compared to Rupees 2.8 million for the corresponding period of the last year. The Company has recently issued 150% right shares at 50% discount which had been heavily under - subscribed by the shareholders and the profitability of the Company had been impacted due to payment of underwriter's commission (one time) for the right issue.

On behalf of the Directors, we are pleased to record our appreciation for our customers, employees, suppliers, shareholders and financial institutions for their trust in the management of the company.

We thank Allah Subhanatallah for blessing all of us and your company. We all should continue our endeavors to fully obey the commandments of Almighty Allah and Sunnah of our Prophet Muhammad (Sallallaho-Alaihe-Wasallum).

On behalf of the Board of Directors

Lahore: October 28, 2014 Aftab Ahmed Khan

Chief Executive Officer

Condensed Interim Balance Sheet

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30 Sep 2014 30 Jun 2014Rupees Rupees

EQUITY & LIABILITIES

share capital and reserveAuthorized Share Capital50,000,000 (Jun 2014: 20,000,000) ordinaryshares of Rs.10 each 500,000,000

500,000,000

Issued, subscribed and paid up capital 500,000,000

200,000,000

Accumulated losses (144,183,562)

(141,437,661)

355,816,438

58,562,339

Current liabilitiesShort term Bank Financing 73,569,200

93,853,774

Loan from sponsors 168,680,000

170,205,000 Creditors, accrued and other liabilities 108,489,418

99,309,768

Provision for taxation -

1,243,770 350,738,618

364,612,312

Contingecies and commitments -

-

706,555,056 423,174,651 ASSETS

Non-current assets

Property, plant and equipment 37,666,293

38,254,831

Security deposits 667,386

667,386

Deferred tax 24,342,618

24,342,618

Discount on Right Shares 150,000,000

-

Current AssetsStores, spares and loose tools 710,534

665,012

Stock in trade 81,810,788

87,521,496

Trade debtors - unsecured but considered good 196,981,938

197,782,798

Advances and other receivables 85,670,613

63,893,621

Cash and bank balances 128,704,886

10,046,889

493,878,759

359,909,816

706,555,056

423,174,651

The annexed notes form an integral part of these financial statements

____________ DIRECTOR

________________________CHIEF EXECUTIVE OFFICER

for the quarter ended September 30, 2014 (un-audited)

Condensed Interim Profit & Loss Accountfor the quarter ended September 30, 2014 (un-audited)

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2014 2013Rupees Rupees

Sales-Net 47,153,204

32,998,753

Cost of sales 44,540,441

30,122,500

Gross profit 2,612,763

2,876,253

Administrative expenses 1,888,585

1,668,935

Distribution and marketing expenses 3,216,235

2,972,901

5,104,820

4,641,836

(2,492,056) (1,765,583)

Other Operating Income 6,671,150 3,129,000

Operating Profit before finance cost 4,179,094 1,363,417

Finance Cost 6,924,995

2,660,585

(Loss) before taxation (2,745,901)

(1,297,168)

Taxation -

-

(Loss) after taxation (2,745,901)

(1,297,168)

Earning Per Share - Basic Restated (0.05)

(0.03)

The annexed notes form an integral part of these accounts

July to September

____________ DIRECTOR

________________________CHIEF EXECUTIVE OFFICER

Condensed Interim Cash Flow Statementfor the quarter ended September 30, 2014 (un-audited)

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2014 2013Rupees Rupees

CASH FLOWS FROM OPERATING ACTIVITIES(loss) for the year before tax (2,745,901) (1,297,168)

Adjustment for :Depreciation 588,538 657,926

Financial charges 6,924,995 2,660,585

7,513,533 3,318,511

Operating profit before working capital changes 4,767,632 2,021,343

(Increase) / decrease in current assetsStore, spares and loose tools (45,522) -

Stock in trade 5,710,708 24,775,427

Trade debtors 800,860 (1,173,423)

Advances and other receivables (19,807,534) (68,990)

(13,341,488) 23,533,014

Increase / (decrease) in current liabilitiesCreditors, accrued and other liabilities 9,179,650 (16,612,020)

605,794 8,942,337 Financial charges paid (6,924,995) 558,777 Taxes paid (3,213,228) (2,163,281)

NET CASH FLOWS FROM OPERATING ACTIVITIES (9,532,429) 7,337,833

Issuance of Right Shares 150,000,000 -

Murabaha financing received (1,525,000) -

Murabaha financing repaid (20,284,574) (3,119,122)

NET CASH FLOWS FROM FINANCING ACTIVITIES 128,190,426 (3,119,122)

Net (decrease) / increase in cash 118,657,997 4,218,711

Cash and cash equivalents at the beginning of the year 10,046,889 4,802,316

Cash and cash equivalents at the end of the year 128,704,886 9,021,027

The annexed notes form an integral part of these accounts

July to September

____________ DIRECTOR

________________________CHIEF EXECUTIVE OFFICER

Statement of Changes in Equityfor the quarter ended September 30, 2014 (un-audited)

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Share Capital Accumulated Loss TotalCapital profit/(loss)Rupees Rupees Rupees

Balance as on June 30, 2013 200,000,000 (137,393,865) 62,606,135

Net loss for the year - (4,043,796) (4,043,796)

Balance as on June 30, 2014 200,000,000 (141,437,661) 58,562,339

Balance as on July 01, 2014 200,000,000 (141,437,661) 58,562,339

Issue of Right Shares 300,000,000 300,000,000

Net loss for the period - (2,745,901) (2,745,901)

Balance as on September 30, 2014 500,000,000 (144,183,562) 355,816,438

The annexed notes form an integral part of these accounts

____________ DIRECTOR

________________________CHIEF EXECUTIVE OFFICER

Notes to the Condensed InterimFinancial Statementsfor the quarter ended September 30, 2014 (un-audited)

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1 COMPANY AND ITS OPERATIONS

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preparation of Financial Statements

2.2 Accounting Conventions

30 Sep 2014 30 Jun 2014

Rupees Rupees

3 ISSUED, SUBSCRIBED AND PAID UP CAPITAL

19,250,000 (Jun 2014: 19,250,000) ordinary shares of

Rupees 10 each fully paid in cash 192,500,000 192,500,000 250,000 (Jun 2014: 250,000) ordinary shares of Rupees

10 each fully paid other than cash 2,500,000 2,500,000

500,000 (Jun 2014: 500,000) ordinary shares of Rupees 10

each issued as bonus shares 5,000,000 5,000,000

30,000,000 (Jun 2014: Nil) ordinary shares of Rupees 10

each issued as Right issue 300,000,000 -

500,000,000 200,000,000

The accounting policies and method of computation adopted for the preparation of these interim financial statements are

the same as applied in the preparation of the preceding annual published financial statements of the company for the year

ended June 30, 2014

The company is a public listed company incorporated in Pakistan under the Companies Ordinance, 1984 in September 1987.

The registered office of the company is situated at 40-L Model Town, Lahore. The shares of the company are quoted on

Stock Exchanges in Pakistan. The name of the company has been changed from Ghani Textile Limited to Ghani Automobile

Industries Limited with effect from March 31, 2004. The principal activity of company has been changed during year 2004

from manufacture and trade of grey cloth to manufacture, assemble and trade of Automotive Vehicles of all kinds and sorts.

These financial statements are unaudited and are being submitted to the shareholders as required under Section 245 of the

Companies Ordinance, 1984. These have been prepared in accordance with International Accounting Standard No. 34,

Interim Financial Reporting as applicable in Pakistan and notified by Securities and Exchange Commission of Pakistan.

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4 CONTINGENCIES AND COMMITMENTS

CONTINGENCIES

4.1

4.2

4.3

COMMITMENTS

4.4

30 Sep 2014 30 Jun 2014

Rupees Rupees

5 ADDITION / (DELETION) IN FIXED ASSETS - AT COST

Computers - 11,100

- 11,100

6 AUTHORISED FOR ISSUE

The financial statements were approved by board of directors and authorised for issue on October 28, 2014.

7 CORRESPONDING FIGURES

Corresponding figures have been rearranged, where necessary, for the purpose of comparison and

rounded off to the nearest rupee.

Letter of credit in transit other than capital expenditure are Rupees Nil (2014:Rupees 6,069,990).

There is a contingent liability of Rupees 1,727,290 (2014:Rupees 1,727,290) in respect of income tax for assessment up to

assessment year 2001-2002 against order under section 62 and 52 of repealed Income Tax Ordinance, 1979. The company

has filed the appeals against above orders.

The Punjab Employees Social Security Institution has raised a demand of Rupees 2,245,057 (2014: Rupees 2,245,057) as

less payment of contribution for the period from 1989 to 1995. The company has not acknowledged this demand and files

appeal under section 57 of the Social Security Ordinance, 1965. After remand of the case by Labour Court, appeal is now

under process with Additional Commissioner, Punjab Employees Social Security Institute.

The company has given bank guarantee of Rupees 729,000 ( 2014: Rupees 729,000 ) to WAPDA.

____________ DIRECTOR

________________________CHIEF EXECUTIVE OFFICER

Head Office:40-L, Model Town, Lahore, PakistanUAN: +92-42-111 949 949Fax: +92-42-35172263www.ghaniautomobiles.com