KHYBER TOBACCO COMPANY LIMITED DIRECTORS' REVIEW
The Directors of the Company are pleased to present the condensed Interim Financial Information (un-audited) of the company for the First Quarter ended 30 September 2023.
Key financial indicators for the period under review are as below:
Financial Highlights | Jul-Sept 2023 | Jul-Sept 2022 | % |
Rs. in Millions | |||
TURNOVER -Gross | 1,837.31 | 2,537.52 | -28% |
Turnover-net | 570.44 | 1,791.50 | -68% |
Cost of sales | 618.75 | 1,157.95 | -47% |
Gross profit | (48.31) | 633.55 | -108% |
Profit (Loss) before taxation | (217.31) | 423.30 | -151% |
Profit (Loss) for the period | (249.76) | 405.54 | -117% |
Earnings (Loss) per share - basic/diluted | (36.08) | 84.36 | -143% |
The company remains affected by the easy availability of counterfeit cigarettes in the market. The partial implementation of the Track and Trace System is one of the core reasons that the illicit and counterfeit cigarette market has flourished recently. In order to curtail illicit trade and provide a level playing field, the implementation of Track & Trace in true latter and spirit is the need of the hour. The Company continues to face a challenging macro-environment due to pressure on foreign currency reserves, high inflation, and the sudden increase in tobacco prices.
Sales revenue net stood at Rs 570.44 Million as compared to Rs 1791.5 Million in the corresponding period of last year. Cost of sales decreased due to low Export sales of tobacco and the company has suffered a gross Loss of Rs. (48.31) Million as compared to a Profit of 633.55 Million in the corresponding period of last year.
Moreover, KTC's initiatives for on-spot detection of counterfeit products include sensitizing Law Enforcement Agencies, Retailers, and Consumers to identify genuine products in the market. Consistent enforcement efforts by the Government with dedicated human and financial resources are key to ensuring a level playing field in the legitimate tobacco sector which will positively impact revenue collection.
The EPS of the Company both basic and diluted for the period under review comes to Rs. (36.08) as compared to Rs. 84.36 for the corresponding period of last year.
Future Outlook:
The management is certain that the situation will turn around in the near future. Local cigarette and tobacco sales have improved slightly prior to period end and I am confident that the results of the next quarter will show visible improvements in cigarette sales. However, if the export trend is not restored, the liquidity position of the company may suffer.
Acknowledgment:
The board would like to thank and appreciate its employees, customers, and strategic partners for their dedication, commitment, and contribution in these challenging times. The board also extends its gratitude to our suppliers, banks, and shareholders for their unwavering support and cooperation.
The composition of the Board is as follows:
Category | Names |
Independent Directors | Mr. Shahzad Javed Panni |
Mrs. Sonia Farooq | |
Executive Directors | Ms. Samera Irfan |
Mr. Shahzad Javed Panni | |
Mr. Zia Ur Rehman | |
Non-executive Director | Mr. Rahat Ullah |
Mr. Pir Wairs Shah | |
Mr. Khalil Ur Rehman | |
Mrs. Sonia Farooq | |
Female Directors | Mrs. Samera Irfan |
Mrs. Sonia Farooq | |
ON BEHALF OF THE BOARD | |
Pir Farhan Shah | Sameera Irfan |
Company Secretary | Chief Executive Officer |
31 October 2023 |
KHYBER TOBACCO COMPANY LIMITED
CONDENSED INTERIM BALANCE SHEET (UN-AUDITED) FOR THE PERIOD ENDED 30 SEPTEMBER 2023
Un-audited
Sept 30,
2023
Note Rupees
SHARE CAPITAL AND RESERVES
Audited
30 June
2023
Rupees
Note |
NON CURRENT ASSETS |
Un-audited
Sept 30,
2023
Rupees
Audited
30 June
2023
Rupees
Issued, subscribed and paid up share capital (ordi)nary shares of Unappropriated Profit
Revenue reserves
surplus on revaluation of property Plant and Equipment-net of tax
69,226,040
3,183,448,909
3,312,465
288,196,528
3,544,183,942
69,226,040
3,352,438,743
3,312,465
368,963,006
3,793,940,254
Property, plant and equipment | 5 |
Long term deposits |
2,683,806,907
7,044,411
2,690,851,318
2,744,656,198
6,237,411
2,750,893,609
NON CURRENT LIABILITIES
Employee benefits
Deferred tax liabilities-net
CURRENT LIABILITIES
Trade and other payables
Unclaimed dividend
Loan From Director
Provision for Taxation
CONTINGENCIES AND COMMITMENTS
94,490,576
132,217,504
226,708,081
7,097,163,260
16,171,291
401,035,639
7,514,370,190
11,285,262,212
87,810,788
105,942,415
193,753,203
3,614,916,768
16,171,291
101,035,638
-
3,732,123,697
7,719,817,154
CURRENT ASSETS
Stock in trade Trade debts
Advances and Prepayments Advance duty and sales tax Advance income tax
Non-current assets classified as held for sale Stores, Spare Parts and Loose Tools
Cash and bank balances
5,840,893,708
951,619,902
282,344,961
87,584,142
124,592,566
45,449,285
1,261,926,330
8,594,410,894
11,285,262,212
1,706,636,284
1,407,685,764
746,341,728
2,424,234
-
-
19,357,351
1,086,478,184
4,968,923,545
7,719,817,154
-
The annexed notes 1 to 7 form an integral part of these financial information
CHIEF EXECUTIVE | DIRECTOR | DIRECTOR |
KHYBER TOBACCO COMPANY LIMITED
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED) FOR THE PERIOD ENDED 30 SEPTEMBER 2023
Three month ended
September-23
2023 | 2022 | ||
Turnover-net | 571,403,951 | 1,791,503,889 | |
Cost of sales | (618,754,750) | (1,157,951,264) | |
Gross profit | (47,350,799) | 633,552,625 | |
Administrative expenses | (79,951,137) | (69,832,791) | |
Selling and Distribution cost | (61,532,930) | (56,350,053) | |
Impairment loss on financial assets | - | - | |
Other expenses | - | (7,064,668) | |
Finance cost | (28,474,038) | (89,005,577) | |
Other operating income | - | 12,010,000 | |
Profit (Loss) before taxation | (217,308,903) | 423,309,536 | |
Taxation | (32,447,409) | (17,762,684) | |
Profit (Loss) for the period | (249,756,312) | 405,546,852 | |
Earnings (Loss) per share - basic and diluted | |||
(36.08) | 84.36 | ||
CHIEF EXECUTIVE | DIRECTOR |
KHYBER TOBACCO COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
Three month ended
September-23
Profit / (Loss) for the period
Items that will not be reclassified to profit or loss:
Surplus on revaluation of property, plant and equipment
Remeasurement gain/(loss) on post retirement benefits liability Related deffered tax
Total comprehensive income for the period
2023
Rupees
(249,756,312)
-
-
-
-
-
(249,756,312)
2022
Rupees
405,546,852
-
-
-
-
-
405,546,852
CHIEF EXECUTIVE | DIRECTOR |
DIRECTOR
KHYBER TOBACCO COMPANY LIMITED
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023 | Capital Reserves | ||||||
Reserves for | Unappropriated | ||||||
Share capital General reserve | Revaluation | ||||||
issuance of | Total | ||||||
surplus | profit | ||||||
bonus shares |
Rupees
Balance at 01 July 2022
Total comprehensive income/(loss) for the period
Profit/(loss) for the period
Other comprehensive income for the period
Surplus on revaluation of property, plant and equipment
- on account of incremental depreciation
- on account of disposal
Other comprehensive loss for the year
Balance at 30 September 2022
Balance at 01 July 2023
Total comprehensive income/(loss) for the period
48,073,640
-
-
-
-
-
-
48,073,640
69,226,040
3,312,465 | 360,188,752 | - | 1,352,674,467 | |||
- | - | - | 405,546,852 | |||
- | - | - | - | |||
- | - | - | - | |||
- | - | |||||
- | - | - | - | |||
- | (3,906,541) | - | 3,906,541 | |||
- | (3,906,541) | - | 409,453,393 | |||
3,312,465 | 356,282,211 | - | 1,762,127,860 | |||
3,312,465 | 368,963,006 | 3,352,438,743 |
1,764,249,324
405,546,852
-
-
-
-
-
405,546,852
2,169,796,176
3,793,940,254
Profit/(loss) for the period Audit Adjustment
Other comprehensive income for the period
Transfer from surplus on revaluation of property, plant and equipment - net of tax
- on account of incremental depreciation
- on account of disposal
Transactions with owners
Shares issued as fully paid bonus shares
Balance at 30 September 2023
-
-
-
-
-
-
-
-
-
69,226,040
- | - | - | (249,756,312) | |||
- | - | - | - | |||
- | - | - | - | |||
- | - | - | ||||
- | (80,766,478) | - | 80,766,478 | |||
- | - | - | ||||
- | - | - | ||||
- | - | - | - | |||
- | (80,766,478) | - | (168,989,834) | |||
3,312,465 | 288,196,528 | - | 3,183,448,909 | |||
(249,756,312)
-
-
-
-
-
-
(249,756,312)
3,544,183,942
CHIEF EXECUTIVE | DIRECTOR | DIRECTOR |
KHYBER TOBACCO COMPANY LIMITED
CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
Three month ended
September-23
CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(loss) before taxation
Adjustments for:
Depreciation
Provision for staff retirement benefits Provision for WPPF written back Trade creditors written back Advance to supplier written off Impairment loss on financial assets Exchange loss / (gain) on foreign transaction Finance cost
Working capital changes
(INCREASE) / DECREASE IN CURRENT ASSETS
Stock in trade
Stores, Spare Parts and Loose Tools
Trade debts - considered good
Advances and Prepayments
Advance duty and Taxes
Advance income tax
Trade and other payables
Cash generated from operations
Gratuity paid
Income tax paid
Finance cost paid
WWF/WPPF
Dividend paid
Net cash generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment Additions to Intangible Assets
Security deposits
Proceeds from sale of Fixed Asset
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Short term loan-Unsecured
Repayment of short term loan
Net increase (decrease) in cash and cash equivalents
Effects of exchange rates on cash and cash equivalents
Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period
2023 Rupees
(217,308,903)
66,811,509
6,915,573
-
-
-
-
-
22,736,275
-
96,463,357
(120,845,546)
(4,134,257,424)
(26,091,934)
456,065,862
463,996,767
(85,159,908)
(124,592,566)
3,482,246,492
32,207,289
(88,638,258)
(235,785)
(5,635,744)
(1,775,336)
-
(7,646,865)
(96,285,122)
(28,266,733)
-
-
-
(28,266,733)
300,000,001
-
300,000,001
175,448,146
-
1,086,478,184
1,261,926,330
2022
Rupees 423,309,536
37,141,261
3,799,516
2,832,383
43,773,160
467,082,696
(397,985,908)
(267,094,839)
19,469,398
(101,354,118)
538,909,852
(208,055,615)
259,027,081
(8,617,508)
(47,247,890)
(2,832,383)
-
(1,708,831)
(60,406,612)
198,620,469
(24,804,760)
-
40,700,002
15,895,242
106,169,483
-
106,169,483
320,685,193
679,358,847
1,000,044,040
CHIEF EXECUTIVE | DIRECTOR | DIRECTOR |
KHYBER TOBACCO COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
-
THE COMPANY AND ITS OPERATIONS
Khyber Tobacco Company Limited (" the Company ") is a public limited company incorporated in Pakistan on October 15, 1954 under
the Companies Act, 1913 (now the Companies Act, 2017) and is listed on the Pakistan Stock Exchange Limited. The Company is engaged in the manufacture and sale of cigarettes and tobacco. The Company's registered office and production plant is situated at
Nowshera Road, Mardan. - BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE
These financial Statements of the Company for the period ended 30 September 2023 has been prepared in accordance with approved accounting standards as applicable in pakistan. The accounting and reporting standards applicable in Pakistan comprises of: International Financial Reporting Standards (IFRS), issued by International Accounting Standard Board (IASB) as notified under the companies Act 2017 and Provisions and directives issued under the companies Act 2017. Where provisions of and directives issued under the companies Act 2017 differ from the IFRS Standards, the provision of and directives issued under the Companies Act 2017 have been followed. Details oc company's accounting policies are included in note 3.
Thse Financial Statements have been prepared under historical cost convention except for the Property, Plant and Equipment which measured at revalued cost. These Financial Statements are presented in Pak Rupees, which is the Company's functional currency. All amounts have been rounded to the nearest rupee, unless otherwise indicated. - SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES
The accounting policies, significant judgements, estimates and assumptions used by the management in preparation of these financial information are the same as those applied in preparation of audited annual financial statements for the year ended 30 June 2023. - CONTINGENCIES AND COMMITMENTS
Contingencies and Commitments are the same as disclosed in the annual financial statements for the year ended June 30, 2023
5 PROPERTY, PLANT AND EQUIPMENT
Break up of Property, Plant and Equipment is as follows:
Un-audited | Audited | ||
Sept 30, | 30.Jun | ||
2023 | 2023 | ||
Rupees | Rupees | ||
Operating Fixed Assets | 2,683,806,907 | 2,744,656,198 | |
Long term deposits | 7,044,411 | 6,237,411 | |
Intangible Assets | - | - | |
2,690,851,318 | 2,750,893,609 |
KHYBER TOBACCO COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2023
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Khyber Tobacco Company Ltd. published this content on 01 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2023 05:36:13 UTC.
