Panther Tyres : Final Progress Report as of December 31, 2023

March 21, 2024

PTL/Corp/PSX/14

The General Manager

Pakistan Stock Exchange

Stock Exchange Building

Stock Exchange Road

Karachi,

Dear Sir,

Final Progress Report as of December 31, 2023

We are pleased to submit the final progress report as of December 31, 2023, along with the Agreed Upon Procedures' Report as issued by our Auditors, M/S KPMG Taseer Hadi & Co, on the implementation status of the project. This progress report is being submitted in compliance with the requirement of Clause 16(ii)(a) of post-issue reporting and disclosures of the "Public Offering Regulations, 2017" and in pursuance of the requirement specified in clause 4.1.10 of the prospectus to the issue of the Company.

Yours truly,

__________________

Company Secretary Mohsin Muzaffar Butt

CC:

Executive Director/HOD,

Offsite-II Department,

Supervision Division,

Securities & Exchange Commission of Pakistan,

63, NIC Building, Jinnah Avenue, Blue Area,

Islamabad.

PROGRESS REPORT

PANTHER TYRES LIMITED

FINAL PROGRESS REPORT

31 DECEMBER 2023

(AS REQUIRED BY REGULATION 16 OF THE PUBLIC OFFERING

REGULATIONS 2017).

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PROGRESS REPORT

TABLE OF CONTENTS

PREAMBLE……..……………………………………………………………………………………………………………3

IPO PROCEEDS…………………………………………………………………………………………………………..…3

IMPLEMENTATION STATUS………………………………………………………………………………………….4

ANNEXURE-I………………………………………………………………………………………………………………..8

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PROGRESS REPORT

PREAMBLE

We are pleased to submit the final progress report as of December 31, 2023, along with the Agreed Upon Procedures' Report as issued by our Auditors, M/S KPMG Taseer Hadi & Co, on the implementation status of the project. This progress report is being submitted in compliance with the requirement of Clause 16(iia) of post-issue reporting and disclosures of the "Public Offering Regulations, 2017" and in pursuance of the requirement specified in clause 4.1.10 of the prospectus to the issue of the Company.

The Company carried out an IPO in February 2021 to partially finance its major expansion project. A sum of Rs.1.410 billion was allocated to this expansion from IPO proceeds as per detail below:

	Description			Funds Required (PKR)
Plant and Machinery
4 Roll Calendar Line Comerio Italy		586,310,100
Banbury Tangential Mixer		328,629,670
Freehold Land & Development Expenses		100,000,000
Building and Civil Works
Building for Calendar Department		166,780,230
Building for Mixing Department		167,880,000
Building for Tube Department		60,400,000
Total		1,410,000,000

SUMMARY OF IPO PROCEEDS

The Company had raised funds through the issuance of 30 million ordinary shares at a strike price of Rupees 65.80 per share as per detail given below:

	Description			Amount (PKR)
Issuance of 30,000,000 ordinary shares at the strike price of Rs.65.8 per		1,974,000,000
share
Less: IPO expenses		(99,566,342)
Net IPO proceeds		1,874,433,658
Less: Funds Utilized to pay off Working Capital Loan (Ref clause 4.1.8)		*(464,433,658)
Net Funds available for expansion		1,410,000,000

*The excess funds amounting to Rupees 464.43 million received through IPO were utilized to reduce the short-term working capital lines as per clause 4.1.8 of the prospectus.

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PROGRESS REPORT

IMPLEMENTATION STATUS

The status of the expansion project as of the close of December 2023 is given below in prescribed format:

				Funds						Actual
						Allocation			Expenditures
	Description			Required
					%			as on 31 Dec,
				(PKR)
									2023 (PKR)
Freehold Land & Development Expenses	100,000,000		7.10%		101,021,403
Building and Civil Works
Building for Tube Department	60,400,000		4.30%		60,810,689
Building for Calendar Department	166,780,230		11.80%		163,095,182
Building for Mixing Department	167,880,000		11.90%		369,216,985
Plant and Machinery
4 Roll Calendar Line Comerio Italy	586,310,100		41.60%		770,263,898
Banbury Tangential Mixer	328,629,670		23.30%		521,593,400
	Total			1,410,000,000			100%			1,986,001,557

Implementation status of each project is being given below separately:

LAND AND DEVELOPMENTS

This land is located adjacent to the existing land of the factory located at 29.4 KM Sheikhupura Road. The acquisition process of this land is already complete.

Start date

Completion date

Commitment made in the

(disclosed in

Rationale for

(disclosed in the

Current status

prospectus

the

delay, if any

prospectus)

prospectus)

Acquisition of land

1Q FY 2021

3Q FY 2021

100%

Project

Complete

completed

BUILDING AND CIVIL WORKS

Following are the three buildings which were to be constructed through IPO funds:

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PROGRESS REPORT

Start date

Completion date

Current

Rationale

Commitment made in the prospectus

(disclosed in the

(disclosed in the

for delay, if

status

prospectus)

prospectus)

any

Refer to

Tube department Building

3Q FY 2021

4Q FY 2021

100%

sub

Complete

section

'a'

Refer to

Calendar department Building

4Q FY 2021

2Q FY 2022

100%

sub

Complete

section

'b'

Refer to

Mixing department Building

3Q FY 2021

2Q FY 2022

100%

sub

Complete

section

'c'

a) MC Tube Building

This was an extension of the existing building of the motorcycle tube section, which was completed in FY2022. The completion of this building got delayed because the listing process took more than expected time.

b) Calendar Building

This building has been constructed to accommodate the newly acquired calendaring line. The work on the building is finished, and the project is 100% complete. Since, the arrival of calendaring line was delayed, the civil work was put on hold which caused the delay of time line as disclosed in the prospectus.

c) Mixing Building

This is a new state-of-the-artmulti-story building designed to accommodate recently acquired automated mixing lines. Civil and other related work on the project is 100% complete.

The above table shows a substantial increase in the cost of the project from Rs.167 million to Rs.369 million. As per the initial layout finalized prior to IPO, the building was planned to accommodate two mixing lines and the construction cost was estimated at Rs.167 million. Subsequently, on the advice of the technical team, the building design/area was changed to accommodate the four mixing lines. This resulted in an extended scope of work and an escalation of the cost of the building to Rs.369 million. Enhanced scope of work took more than originally planned time and hence affected the projected completion date. The change in scope and overall cost escalation was duly approved by the Board.

PLANT AND MACHINERY

Plant & machinery financed through IPO include the 4 Roll Calendar Line and Banbury Tangential mixer, along with accessories.

The implementation status of these machines is given as follows:

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