Tariq Glass Industries : Transmission of 1st Quarterly Report for the Period Ended September 30, 2023

CONTENTS

	COMPANY INFORMATION	2
	VISION & MISSION STATEMENT	3
	DIRECTORS' REVIEW (English)	4
	DIRECTORS' REVIEW (Urdu)	5
	CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION	7
	CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS	8
	CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME	9
	CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY	10
	CONDENSED INTERIM STATEMENT OF CASH FLOWS	11
	NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS	12

1st Quarterly Report 2023-24

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COMPANY INFORMATION

BOARD OF DIRECTORS

MR. MANSOOR IRFANI	CHAIRMAN
MR. OMER BAIG	MANAGING DIRECTOR / CEO
MR. MOHAMMAD BAIG	EXECUTIVE DIRECTOR
MR. SAAD IQBAL	NON-EXECUTIVE DIRECTOR
MS. RUBINA NAYYAR	NON-EXECUTIVE / FEMALE DIRECTOR
MR. MUHAMMAD IBRAR KHAN	INDEPENDENT DIRECTOR
MR. FAIZ MUHAMMAD	INDEPENDENT DIRECTOR

AUDIT COMMITTEE

	MR. FAIZ MUHAMMAD	CHAIRMAN
	MR. MANSOOR IRFANI	MEMBER
	MR. SAAD IQBAL	MEMBER
	HUMAN RESOURCE &
	REMUNERATION COMMITTEE
	MR. FAIZ MUHAMMAD	CHAIRMAN
	MR. OMER BAIG	MEMBER
	MS. RUBINA NAYYAR	MEMBER
	CHIEF FINANCIAL OFFICER
	MR. WAQAR ULLAH
	COMPANY SECRETARY
	MR. MOHSIN ALI

EXTERNAL AUDITORS

CROWE HUSSAIN CHAUDHURY & CO.

CHARTERED ACCOUNTANTS, LAHORE

CORPORATE CONSULTANTS

MR. RASHID SADIQ

M/S R.S. CORPORATE ADVISORY , LAHORE

TAX CONSULTANTS

GRANT THORNTON ANJUM RAHMAN, CHARTERED ACCOUNTANTS, LAHORE

LEGAL ADVISOR

KASURI AND ASSOCIATES, LAHORE

BANKERS

AL-BARAKA BANK (PAK) LIMITED ALLIED BANK LIMITED ASKARI BANK LIMITED

BANK ALFALAH LIMITED

BANK ALHABIB LIMITED

FAYSAL BANK LIMITED

HABIB BANK LIMITED

HABIB METROPOLITAN BANK LIMITED

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED MCB BANK LIMITED

MEEZAN BANK LIMITED NATIONAL BANK OF PAKISTAN

PAKISTAN KUWAIT INVESTMENT CO., (PVT) LIMITED SAMBA BANK LIMITED

THE BANK OF KHYBER

THE BANK OF PUNJAB

UNITED BANK LIMITED

SHARES REGISTRAR

SHEMAS INTERNATIONAL (PVT) LIMITED 533-Main Boulevard, Imperial Garden Block, Paragon City, Barki Road, Lahore.

TEL: [phone]

E-MAIL: [e-mail]

COMPANY RATING

LONG TERM: A+	SHORT TERM: A1
OUTLOOK: STABLE	RATING AGENCY: PACRA

RATING DATE: DECEMBER 23, 2022

REGISTERED OFFICE

128-J, MODEL TOWN, LAHORE. UAN: 042-111-34-34-34

FAX: [phone]

E-MAIL: [e-mail]

WEBSITE: www.tariqglass.com

WORKS

33-KM, LAHORE / SHEIKHUPURA ROAD,

DISTRICT SHEIKHUPURA.

TEL: [phone]

FAX: [phone]

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VISION

STATEMENT

To be a premier glass manufacturing organization of International standards and repute, offering innovative value-added products, tailored respectively to the customer's needs and satisfaction. Optimizing the shareholder's value through meeting their expectations, making Tariq Glass Industries Limited an "Investor Preferred Institution" is one of our prime policies. We are a "glassware supermarket" by catering all household and industrial needs of the customers under one roof.

MISSION

STATEMENT

To be a world class and leading company continuously providing quality glass tableware, containers and float by utilizing best blend of state of the art technologies, highly professional staff, excellent business processes and synergistic organizational culture.

1st Quarterly Report 2023-24

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Directors' Review

The Directors of the Company present before you their review together with the un-audited interim financial statements of the Company for the first quarter ended September 30, 2023.

Financial and Operational Performance:

Despite the initial optimism for economic growth, the pervasive political unrest and weakened financial administration have negatively impacted macroeconomic performance, leaving a mark on all sectors of the economy. The economy's underperformance is further exacerbated by an escalating energy crisis and a deteriorating law and order situation in the country. The lack of clear strategies to address the gas and power crisis, as well as ongoing fiscal and current account deficits have posed significant threats to economic stability and growth.

In the midst of these challenging economic and political conditions, the Company has achieved commendable financial results by registering net sales of Rs. 6,919 million, a slight increase compared to the same period of last year with significant improvement in the gross profit margin, which stands at 22.15% for the quarter under report, a notable leap from the 10.98% recorded during the same period of last year. This improved margin can be attributed to the successful implementation of strategies by partially passing on the increased costs to the consumers during the reporting period. Consequently, the Company has not only regained its financial footing but also recuperated its position of profitability, reporting a profit after tax of Rs. 759 million and earnings per share (EPS) of Rs. 4.41 for the quarter under consideration, compared to Rs. 353 million and Rs. 2.05 (Re-stated) respectively for the same period of the preceding year.

A brief summary of the financial results for the first quarter ended September 30, 2023 is as under:

	(Million Rupees)
	Three Months Ended September 30
	FY-2023-2024	FY-2022-2023
Sales - net	6,919	6,437
Gross profit	1,533	706
Operating profit	1,276	471
Profit before tax	1,110	372
Profit after tax	759	353
Earnings per share - basic and diluted - Rupees (2023: Re-stated)	4.41	2.05

Alhamdulillah, one plant each of the Company's Tableware and the Float Glass were fully operational during the period under report. However, one plant each of Float Glass (Unit-1) and the Tableware Plant completed the useful campaign life and are closed for rebuild.

The Board of Directors in their meeting held on September 26, 2023 had recommended 60% final cash dividend, for the year ended June 30, 2023 which has subsequently been approved by the members of the Company in the annual general meeting held on October 27, 2023. The enclosed condensed interim financial statements do not reflect the effect of 60% final cash dividend approved by the members in the annual general meeting held on October 27, 2023.

Future Outlook:

Escalating costs, primarily driven by inflation and aggravated by elevated interest rates, have presented substantial challenges to the industry. These challenges have culminated in the industry's inability to entirely absorb the surging costs within their selling prices, a circumstance intensified by fierce competition. Consequently, this has led to a reduction in liquidity and an increase in leverage. Moreover, factors such as the imposition of higher rate of Super Tax and government initiatives aimed at regulating economic activity have further compounded the pressure on sales, pricing strategies, and the overall liquidity position of the industry.

Despite these challenges, management remains optimistic about future economic prospects and is committed to improving the Company's performance.

	For and on behalf of the Board
	MANSOOR IRFANI	OMER BAIG
Lahore, October 27, 2023	Chairman	Managing Director / CEO

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1st Quarterly Report 2023-24

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6

Condensed Interim Statement of Financial Position

As at September 30, 2023

ASSETS	Note
Non-current assets
Property, plant and equipment	5
Intangible assets
Investment in associate
Long term advances and deposits
Current assets
Stores and spare parts
Stock in trade
Trade debts
Advances, deposits and prepayments
Cash and bank balances
Total assets
EQUITY AND LIABILITIES
Share capital and reserves
Authorized share capital
500,000,000 ordinary shares of Rs. 10 each
Issued, subscribed and paid-up capital
172,167,187 ordinary shares of Rs. 10 each
Share premium
nappropriated profit
Surplus on revaluation of freehold land
Loan from director
Shareholders' equity
Non-current liabilities
Long term finances - secured
Deferred taxation
Current liabilities
Trade and other payables
Contract liabilities
Unclaimed dividend
Accrued mark-up
Current portion of long term liabilities
Short term borrowings
Taxation - net

Total equity and liabilities

Contingencies and commitments

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(Un-audited)

September 30, 2023

Rupees

13,745,887,334

3,575,290

269,500,000

542,094,003

14,561,056,627

1,292,169,792

5,077,677,088

1,815,727,845

401,267,038

462,470,919

9,049,312,682

23,610,369,309

5,000,000,000

1,721,671,870

410,116,932

11,308,163,889

2,515,984,264

-

15,955,936,955

1,661,778,669

895,099,564

2,556,878,233

2,623,585,409

335,319,237

13,821,999

57,821,515

945,610,754

1,121,395,207

-

5,097,554,121

23,610,369,309

(Audited) June 30, 2023 Rupees

13,837,112,437

4,883,972

269,500,000

67,844,003

14,179,340,412

1,245,932,710

4,608,449,316

1,957,898,325

376,291,586

431,749,673

8,620,321,610

22,799,662,022

5,000,000,000

1,721,671,870

410,116,932

10,549,186,421

2,515,984,264

135,000,000

15,331,959,487

1,907,003,607

930,766,354

2,837,769,961

2,252,864,195

298,663,075

13,825,399

84,205,686

914,360,754

921,546,448

144,467,017

4,629,932,574

22,799,662,022

The annexed notes from 1 to 12 form an integral part of these condensed interim financial statements.

October 27, 2023	MANSOOR IRFANI	OMER BAIG	WAQAR ULLAH
Lahore	CHAIRMAN	MANAGING DIRECTOR / CEO	CHIEF FINANCIAL OFFICER

1st Quarterly Report 2023-24

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Condensed Interim Statement of

Profit or Loss (Un-audited)

For the Quarter Ended September 30, 2023

		September 30,		September 30,
		2023	2022
	Note	Rupees		Rupees
Revenue	7	6,918,720,691	6,436,760,210
Cost of sales		(5,385,915,019)	(5,730,319,776)
Gross profit		1,532,805,672	706,440,434
Administrative expenses		(127,721,438)		(124,368,218)
Selling and distribution expenses		(129,076,807)		(111,187,627)
		(256,798,245)		(235,555,845)
Operating profit		1,276,007,427	470,884,589
Other income		18,095,692	37,876,357
Other operating expenses		(95,293,350)	(28,662,783)
Finance cost		(88,818,887)	(107,988,736)
Profit before taxation		1,109,990,882		372,109,427
Taxation		(351,013,414)	(18,897,424)
Net profit for the period		758,977,468	353,212,003
Earnings per share - basic and diluted (Restated)		4.41	2.05

The annexed notes from 1 to 12 form an integral part of these condensed interim financial statements.

October 27, 2023	MANSOOR IRFANI	OMER BAIG	WAQAR ULLAH
Lahore	CHAIRMAN	MANAGING DIRECTOR / CEO	CHIEF FINANCIAL OFFICER

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Condensed Interim Statement of

Comprehensive Income (Un-audited)

For the Quarter Ended September 30, 2023

	September 30,			September 30,
	2023	2022
	Rupees			Rupees
Net profit for the period	758,977,468	353,212,003
Other comprehensive income for the period	-	-
Total comprehensive income for the period	758,977,468	353,212,003

The annexed notes from 1 to 12 form an integral part of these condensed interim financial statements.

October 27, 2023	MANSOOR IRFANI	OMER BAIG		WAQAR ULLAH
Lahore	CHAIRMAN	MANAGING DIRECTOR / CEO	CHIEF FINANCIAL OFFICER
					1st Quarterly Report 2023-24

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