CORPORATE INFORMATIONghaniglobalglass.com/wp-content/uploads/2020/02/...Hafiz Farooq Ahmad Saira...

LEGAL ADVISOR

DSK Law, Lahore

SHARE REGISTRAR

Vision Consulting Limited 1st Floor,3-C, LDA Flats, Lawrence Road, LHRTel: 042-36375531, 36375339Fax: 042-36312550

BANKERS

Al Baraka Bank (Pakistan) LimitedAskari Bank LimitedAllied Bank LimitedBank Al-Habib LimitedBank Al-Falah LimitedBank Islami Pakistan LimitedBank of KhyberBank of Punjab Habib Metropolitan Bank LimitedJS Bank LimitedMCB Bank LimitedMeezan Bank LimitedNational Bank of PakistanSummit Bank LimitedStandard Chartered Bank LimitedUnited Bank Limited

BOARD OF DIRECTORS

Atique Ahmad KhanMasroor Ahmad KhanHafiz Farooq AhmadMian Zahid SaidRabia AtiqueSaira FarooqFarzand Ali

Chairman Chief Executive OfficerDirectorDirectorDirectorDirectorDirector

AUDIT COMMITTEE

Mian Zahid Said – Chairman

Hafiz Farooq AhmadSaira Farooq

HR & R COMMITTEE

Mian Zahid Said – Chairman

Atique Ahmad KhanHafiz Farooq Ahmad

COMPANY SECRETARY

Farzand Ali, FCS

CHIEF FINANCIAL OFFICER

Asim Mahmud, FCA

AUDITORS

Rizwan & CompanyChartered AccountantsMember Firm of DFK International

GLASS PLANT

52-K.M. Lahore Multan Road,Phool Nagar Distt. KasurPh: (049) 4510349-549, Fax: (049) 4510749E-mail: [email protected]

REGIONAL MARKETING OFFICE

301-302, 3rd Floor Yousaf Chamber,KCHSU, Block 7/8, Near MCB Bank,Shar-e-Faisal Karachi.Phone: 021-34330595Email: [email protected]

REGISTERED/CORPORATE OFFICE

10-N, Model Town Ext. Lahore-54000, PakistanUAN: (042)111-ghani1(442-641)Phone: 042-35161424-5, Fax: 042-35160393Email: [email protected]: www.ghaniglobal.com

CORPORATE INFORMATION

Half Year December 201601Ghani Global Glass

Atique Ahmad Khan

Rabia Atique

A comparison of the key financial results of your company for the half year ended December 31, 2016 is as under:

DIRECTORS’ REPORT


The Directors of your Company are pleased to present the unaudited condensed interim financial statements of theCompany for the half year ended December 31, 2016, along with review report of the auditors thereon, in compliance with the requirements of Companies Ordinance,1984.

Dear Members

Assalam-o-Alaikum Wa RehmatUllah Wa Barakatoh

FINANCIAL PERFORMANCE

Your company’s commercial run started just before three quarters (during April 2016). Ghani Global Glass is the only Company in Pakistan producing European Quality Glass Tubing USP Type-I for manufacture of Glass Ampoules and Tubular-Vials used by the Pharmaceutical Industry for filling of liquid and power injectable.

To meet the quality requirements of pharmaceutical industry your company has installed a state-of-the-art facility with Europeanmachinery and expertise near Lahore. Marketing team of your company has made a significant improvement in the last six monthsby way of quality awareness to end users. Based on our sales target, we continuously produced the tubing as per our capacity and country requirement. Although our sale remains down than the target but very promising competing with Chinese product which ischeap and low grade quality available in the market.

During the year under review your company secceeded to close the sale at amounting to Rs. 181.817 million. Company achievedgross profit amounting to Rs. 5.736 million. Management of your company also succeeded to restrict administrative, selling and other operating expenses aggregate amounting to Rs. 35.360 million. Finance cost incurred on the project finance and working capital lines is amounting to Rs. 32.328 million. Net loss during the period under review is amounting to Rs. 57.556 million.

FUTURE PROSPECTS

Your company has introduced the manufacturing and selling of USP Type-I Glass Tubing as an import substitute. Our aim is tomake awareness amongst the manufactures and end-users of Glass Ampoules and Vials about the quality parameter and its impact

Par�culars

Lahore February 27, 2017

For and on behalf of the Board of Directors

Masroor Ahmad KhanChief Executive officer

and on behalf of the Board of Directors


on the product we produce in our country. We have started converting people from low quality Chinese product to premium qualityG3 Tubing.

After commencement of commercial operations of USP Type-I Glass Tubing during April 2016, your company has now commencedthe process of producing value added products like Glass Ampoules and Tubular Vials of USP Type-I in January 2017. For setup ofthis value addition project, your company has imported and installed world renowned “OCMI” and “SPAMI” ampoules and vials manufacturing machinery. In this context this is the only organization providing the end-to-end solutions i.efrom producing tubing till its end product. Hopefully this value addition project will be fully operationalby end of May 2017.

In the next step your company will tap the international market for its product and currently we are focusing in dialogue with numberof producers in Africa and near East Gulf. in addition to increase in sales, this will facilitate to earn the foreign currency for the countryas well.

The directors express their deep appreciation to the dedication of company’s employees to their professional obligationsand cooperation by the bankers and government agencies.

ACKNOWLEDGEMENT

We thank our shareholders who reposed their confidence on management of the company, customers, the officials of theSECP, the Pakistan Stock Exchange and pray for a better future for them and the Company.


Par�culars


2 7 FEB 2017Lahore:

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS ON REVIEW OF CONDENSED INTERIM FINANCIAL INFORMATION

Rizwan & Company Chartered Accountants

Engagement Partner: Rizwan Bashir


CONDENSED INTERIM BALANCE SHEETAS AT DECEMBER 31, 2016 (UN-AUDITED)

TOTAL ASSETS 2,139,295,909 1,717,254,642

EQUITY AND LIABILITIES

Share capital and reserves

Authorized share capital

Issued, subscribed and paid up share capital

Accumulated losses

Loan from sponsors

Total equity

Non-current liabilities

Long term financing

Long term security deposits

Current liabilities

Trade and other payables

Accrued profit on financing

Short term financing - secured

Current portion of long term financing

Provision for taxation

Total liabilities

CONTINGENCIES AND COMMITMENTS

TOTAL EQUITY AND LIABILITIES

The annexed notes from 1 to 14 form an integral part of these condensed interim financial information.

120,000,000 (June 2016: 120,000,000)

ordinary shares of Rupees 10 each

6

7

7

8

1,200,000,000 1,200,000,000

1,000,000,000 500,000,000

(118,224,369) (60,668,354)

309,660,638 485,660,638

1,191,436,269 924,992,284

451,466,386 528,168,752

400,000

368,057

451,866,386 528,536,809

91,413,333 93,477,018 6,696,651 5,687,537

242,931,222 84,451,613

153,404,732 78,822,646 1,547,316

1,286,735

495,993,254 263,725,549

947,859,640 792,262,358 -

-

2,139,295,909 1,717,254,642

ASSETS

Note(Rupees)

UN-AUDITED

December 31,

2016

AUDITED

30 June,

2016

Note(Rupees)

UN-AUDITED

December 31,

2016

AUDITED

30 June,

2016

Non-current assets

Property, plant and equipment

Intangible assets

Long term deposits

5 1,325,123,725

1,312,835,851

19,794,072

19,794,072

4,970,250

4,674,530

1,349,888,047

1,337,304,453

789,407,862 379,950,189

Current assets

Stores and spares

Stock in trade

Trade debts

Loans and advances

Trade deposits and short term prepayments

Other receivables

Advance income tax

Balance with statutory authorities

Cash and bank balances

34,168,825 41,507,151

237,463,761 140,319,040

56,237,010 35,455,350

8,971,507

9,633,200

19,990,514

19,310,646

602,161

22,984

21,239,152

8,498,469

103,671,212

90,287,964

307,063,720 34,915,385

MASROOR AHMAD KHAN(CHIEF EXECUTIVE OFFICER)

HAFIZ FAROOQ AHMAD(DIRECTOR)




CONDENSED INTERIM PROFIT AND LOSS ACCOUNTFOR THE HALF YEAR ENDED DECEMBER 31, 2016 (UN-AUDITED)

HALF YEAR ENDED QUARTER ENDED

December 31, December 31, December 31, December 31,

2016 2015 2016 2015

Note (Rupees) (Rupees)

Gross sales - local 181,816,920

94,656,417

Sales tax (27,085,369)

(14,124,405)

154,731,551

80,532,012

Cost of sales (148,995,737) (79,564,616)

Gross profit 5,735,814

-

-

-

-

- 967,396

-

-

-

-

-

Administrative expenses (29,274,405) (5,368,815) (12,330,155) (2,471,456)

Selling and distribution expenses (5,608,853) (149,463)

Other operating expenses (476,900) (151,100) (135,900) (106,100)

(35,360,158) (5,519,915) (12,615,518) (2,577,556)

Other income 4,656,759 144,997 3,611,558 62,768 (24,967,585) (5,374,918) (8,036,564) (2,514,788)

Finance cost (32,327,849) (1,685,194) (16,305,504) (978,640) Loss before taxation (57,295,434) (7,060,112) (24,342,068) (3,493,428)

Taxation (260,581)

(410,720)

481,415

(1,359,997)

Loss after taxation (57,556,015)

(7,470,832)

(23,860,653)

(4,853,425)

Earnings per share

- basic and diluted 9 (0.70)

(0.13)

(0.24)

(0.08)


- -


CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOMEFOR THE HALF YEAR ENDED DECEMBER 31, 2016 (UN-AUDITED)



Loss for the period


Total comprehensive loss for the period

Other comprehensive income /

(loss) for the period

HALF YEAR ENDED QUARTER ENDED


2016 2015 2016 2015(Rupees) (Rupees)

(57,556,015) (7,470,832) (23,860,653) (4,853,425)

- - - -

(57,556,015) (7,470,832) (23,860,653) (4,853,425)



CONDENSED INTERIM CASH FLOW STATEMENTFOR THE HALF YEAR ENDED DECEMBER 31, 2016 (UN-AUDITED)

HALF YEAR ENDED

December 31, December 31,

2016 2015

Note (Rupees)

CASH FLOWS FROM OPERATING ACTIVITIES

Cash used in operations 10

Finance cost paid

Taxes paid

Net cash used in operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Additions in property, plant and equipment Additions in capital work in progress

Proceeds from disposal of property, plant and equipment

Long term deposits paid

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issue of shares

Long term financing (repayments) / proceeds

Long term security deposit proceeds

Loan from sponsors (repaid) / received

Short term finance proceeds

Net cash generated from nancing activities

Net increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period

(104,389,200)

(31,318,735)

(12,740,683)

(44,059,418)

(148,448,618)

(54,079,432)

(5,482,667)

63,500

(295,720)

(59,794,319)

500,000,000

(2,120,280)

31,943

(176,000,000)

158,479,609

480,391,272

272,148,335

34,915,385

307,063,720

(84,278,448)

(39,236,918)

(3,826,530)

(43,063,448)

(127,341,896)

(4,413,727) (162,042,540)

-

-

(166,456,267)

-

38,325,636

200,000

259,775,638

4,873,746

303,175,020

9,376,857

6,813,728

16,190,585





CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITYFOR THE HALF YEAR ENDED DECEMBER 31, 2016 (UN-AUDITED)

Loan from

sponsorsAccumulated

losses

Issued,

subscribed and

paid up share

capital

Balance as at July 01, 2015 (audited) 500,000,000 (9,432,616) 45,300,000 535,867,384

Total comprehensive loss for the period -

(7,470,832)

-

(7,470,832)

Transaction with sponsors:

Loan received / (repaid) during the period -

-

259,775,638

259,775,638

Balance as at December 31, 2015 (un-audited) 500,000,000

(16,903,448)

305,075,638

788,172,190


(43,764,906)

-

(43,764,906)



-

180,585,000

180,585,000

Balance as at June 30, 2016 (audited) 500,000,000

(60,668,354)

485,660,638

924,992,284


(57,556,015)

-

(57,556,015)

Shares issued during the period 500,000,000

-

-

500,000,000



-

(176,000,000)

(176,000,000)

Balance as at December 31, 2016 (un-audited) 1,000,000,000

(118,224,369)

309,660,638

1,191,436,269

Total

(Rupees)



SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONFOR THE HALF YEAR ENDED DECEMBER 31, 2016 (UN-AUDITED)

1 LEGAL STATUS AND OPERATIONS

1.1

1.2

2 STATEMENT OF COMPLIANCE

2.1

2.2

2.3 Functional and presentation currency

3 BASIS OF PREPARATION

3.1

3.2

3.3

IFRS 13 - Fair Value Measurement

These financial statements are presented in Pak Rupees which is the functional and presentation currency forthe Company.

IAS 1 - Presentation of Financial Statements - Disclosure Initiative (Amendment)

IAS 16 - Property, Plant and Equipment and IAS - 38 intangible assets - Clarification of Acceptable Method ofDepreciation and Amortization (Amendment)

IAS 16 - Property, Plant and Equipment IAS - 41 Agriculture - Agriculture: Bearer Plants (Amendment)

IAS 27 - Separate Financial Statements - Equity Method in Separate Financial Statements (Amendment)

IAS 27 - Separate Financial Statements - Investment Entities: Applying the Consolidation Exception (Amendment)

This condensed interim financial information is unaudited but subject to limited scope review by the statutoryauditors and is being submitted to shareholders as required by section 245 of the Companies Ordinance, 1984.

The accounting policies and methods of computations adopted for the preparation of this interim condensedfinancial information are the same as applied in the preparation of the preceding audited annual publishedfinancial statements of the Company for the year ended June 30, 2016.

The Company is principally engaged in manufacture, procurement and sale of glass tubing and glass ware.The Company commenced its trial run production from October 01, 2015 and commenced commercial operationsof the production facilities from April 01, 2016.

IFRS 10 - Consolidated Financial Statements

IFRS 12 - Disclosure of Interests in Other Entities

IFRS 11 - Joint Arrangements - Accounting for Acquisition of Interest in Joint Operation (Amendment)

Ghani Global Glass Limited ("the Company") was incorporated in Pakistan under the Companies Ordinance,1984 as a private limited company on October 04, 2007 as Ghani Tableware (Private) Limited. Its status waschanged to public unlisted company, consequently its name was changed to Ghani Tableware Limited as onJuly 24, 2008. Name of the Company was further changed to Ghani Global Glass Limited on January 14, 2009.The Company is listed on Pakistan Stock Exchange. Its registered office is situated at 10 - N, Model Town Extension, Lahore.

This condensed interim financial information do not include the information reported for annual financialstatements and should be read in conjunction with the audited annual published financial statements for theyear ended June 30, 2016.

This condensed interim financial information of the Company has been prepared in accordance with theInternational Accounting Standard (IAS) 34 'Interim Financial Reporting' as applicable in Pakistan and notifiedby the Securities and Exchange Commission of Pakistan (SECP) and provisions of and directives issuedunder the Companies Ordinance, 1984. In case where requirements differ, the provisions of or directives issued

under the Ordinance have been followed.

The Company has adopted the following amended International Financial Reporting Standards (IFRSs) whichbecame effective during the period:


UN-AUDITED AUDITED

December 31, June 30,

2016 2016

Note (Rupees)

PROPERTY, PLANT AND EQUIPMENT

Operating fixed assets - tangibles 1,313,008,312

1,306,203,105

Capital work in progress 12,115,413

6,632,746

1,325,123,725

1,312,835,851

Operating xed assets - tangibles

Opening book value 1,306,203,105

52,733,757

Additions / transfers during the period / year 54,079,432

1,278,290,805

Book value of the disposals during the period / year

5.1

5.2

5.1.1

5.1.2 (55,441)

-

1,360,227,096

1,331,024,562

Depreciation charged during the period / year (47,218,784)

(24,821,457)

Closing book value 1,313,008,312

1,306,203,105

Additions and transfer during the period / year

Building 70,000

132,879,249

Plant and machinery 53,104,696

812,823,240

Furnace -

325,102,255

Furniture and fixture 588,113

1,555,589

Office equipments 20,000

632,950

Computers 296,623

390,589

Vehicles -

4,906,933

54,079,432

1,278,290,805

Book value of the disposals during the period / year

Vehicles 55,441 -

55,441 -

Capital work in progress

Civil works 12,115,413 6,632,746

Improvements to Accounting Standards Issued by the IASB in September 2014

5

5.1

5.1.1

5.1.2

5.2

4 ACCOUNTING ESTIMATES AND JUDGEMENTS

IFRS 7 - Financial Instruments: Disclosures - Servicing contracts

IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations - Changes in methods of disposal

IAS 34 - Interim Financial Reporting - Disclosure of information 'elsewhere in the interim financial report'

IFRS 7 - Financial Instruments: Disclosures - Applicability of the offsetting disclosures to condensed interim financial statements

IAS 19 - Employee Benefits - Discount rate: regional market issue

The adoption of the above amendments and interpretation did not have any significant impact on this condensed interim financial statements.

During preparation of this interim condensed financial information, the significant judgments made by themanagement in applying the Company’s accounting policies and the key sources of estimation and uncertaintywere the same as those that applied in the preceding audited annual published financial statements of theCompany for the year ended June 30, 2016.

The preparation of this interim condensed financial information in conformity with the approved accountingstandards requires the use of certain critical accounting estimates. It also requires the management toexercise its judgment in the process of applying the Company's accounting policies. Estimates and judgmentsare continually evaluated and are based on historical experience and other factors, including expectations offuture events that are believed to be reasonable under the circumstances.



UN-AUDITED AUDITED

June 30,

2016

(No. of Shares) Note

50,000,000 50,000,000

Opening balance

50,000,000 -

6.1.1

100,000,000 50,000,000

Closing balance

Note

LONG TERM FINANCING

Diminishing Musharaka facility

Syndicated financing from Islamic Banks / windows

Non Banking Finance Company

Current portion of long term financing

CONTINGENCIES AND COMMITMENTS

Contingencies

Shares issued during the period / year

Reconciliation of issued, subscribed and paid up ordinary

shares

Terms and conditions are consistent with those disclosed in the preceding audited annual published financial statements of theCompany for the year ended June 30, 2016.

During the period, the Company has issued right shares of 50 million (1 share for every 1 share held) at par.

There are no material changes in the status of contingencies as reported in the notes to the financial statements of the Company for the year ended June 30, 2016.

December 31,

2016

UN-AUDITED

December 31,

2016

(Rupees)

500,000,000

500,000,000

1,000,000,000

UN-AUDITED

December 31,

2016

(Rupees)

596,656,695

8,214,423

604,871,118

(153,404,732)

451,466,386

AUDITED

June 30,

2016

500,000,000

-

500,000,000

AUDITED

June 30,

2016

596,656,695

10,334,703

606,991,398

(78,822,646)

528,168,752

ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL

UN-AUDITED AUDITED UN-AUDITED AUDITED

June 30, December 31, June 30,

2016 2016 2016

(No. of Shares) (Rupees)

98,000,000

48,000,000

980,000,000

480,000,000

2,000,000

2,000,000

20,000,000

20,000,000

50,000,000

1,000,000,000

500,000,000

December 31,

2016

100,000,000

6.1

6.1.1

7

7.1

8

8.1

8.1.1

6

Ordinary shares of Rupees 10 each fully paid incash

Ordinary shares of Rupees10 each issued forconsideration other than cash


2016 2015(Rupees)

CASH USED IN OPERATIONS

Loss before taxation (57,295,434)

(7,060,112)

Depreciation on Property, plant and equipment 47,218,784

1,436,031

Finance cost 32,327,849

1,685,194

Gain on disposal of Property, plant and equipment (8,059)

-

Operating cash flows before working capital changes 22,243,140

(3,938,887)

Effect on cash ows due to working capital changes:

(Increase) / decrease in current assets:

Stores and spares 7,338,326

(7,311,754)

Stock in trade (97,144,721)

(63,098,913)

Trade debts (20,781,660)

(18,993,136)

Loans and advances 661,693

5,177,785

Trade deposits and short term prepayments (679,868)

3,098,945

Other receivables (579,177)

51,696

Balances with statutory authorities (13,383,248)

(25,753,524)

Increase / (decrease) in current liabilities:

Trade and other payables (2,063,685)

26,489,340

(104,389,200) (84,278,448)

Adjustments for:

HALF YEAR ENDED

UN-AUDITED

EARNINGS PER SHARE - BASIC AND DILUTED


2016 2015 2016 2015(Rupees) (Rupees)

(Rupees) (57,556,015)

(7,470,832)

(23,860,653)

(4,853,425)

(Number) 82,285,014

59,758,551

100,000,000

59,758,551

(Rupees) (0.70)

(0.13) (0.24) (0.08)

There is no dilutive effect on the basic earnings per share.

UN-AUDITED

QUARTER ENDED

Earnings per share - basic anddiluted

Weighted average number of

ordinary shares outstanding

Loss attributable to ordinaryshareholders

HALF YEAR ENDED

UN-AUDITED

Commitments

10

9

9.1

8.2

8.2.1

8.2.2 Commitments for construction of building as at balance sheet date amounted to Rupees 95.9 million (June 30, 2016: Rupees 8million).

Commitments in respect of letter of credit amounted to Rupees 168.47 million (June 30, 2016: Rupees 143.49 million).


12

TRANSACTIONS WITH RELATED PARTIES


2016 2015(Rupees)

Associated companies / undertaking

Associated Companies Services 6,000,000

8,300,000

Guarantee Charges 1,300,000

1,300,000

Purchases 20,804,530

29,498,548

Other

Provident Fund Contribution 2,688,181 1,317,876

Sponsors Loan received / (repaid) (176,000,000) 259,775,638

Nature of TransactionName

HALF YEAR ENDED

HAFIZ FAROOQ AHMAD

(DIRECTOR)


11

12.A

13

14

14.1

14.2

14.3re-arranged and re-classified wherever necessary for the purpose of comparison and better presentation.

period as per the condensed interim financial information of the Company for the half year ended December 31, 2015. income, condensed interim statement of changes in equity and condensed interim cash flow statement comprise of balances of comparable30, 2016 and the corresponding figures in the condensed interim profit and loss account, condensed interim statement of other comprehensive

FAIR VALUE ESTIMATION

Information about fair value hierarchy and assets classified under the hierarchy is as follows:

IFRS - 13 requires fair value measurement disclosures using following three levels fair value hierarchy that reflects the significance of the inputs used in measuring fair value of financial instruments.

- Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. drive from prices).

- Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.level.

- Level 3: Inputs for asset or liability that are not based on observable market data (unobservable inputs).

There were no changes in valuation techniques during the period. The carrying values of all financial assets and liabilitiesreflected in this condensed interim financial information are approximate at their fair values.

DATE OF AUTHORIZATION

CORRESPONDING FIGURES

Figures have been rounded off to the nearest rupees, unless otherwise stated.

In order to comply with the requirements of International Accounting Standard 34 - 'Interim Financial Reporting', corresponding figures inthe condensed interim balance sheet comprise of balances as per the annual audited financial of the Company for the year ended June

This unaudited condensed interim financial information for the half year ended December 31, 2016 has been authorized for issue by Board of Directors of the Company on February 27, 2017.

Consequent to substitution of Fourth Schedule to the Companies Ordinace,1984 and more more statements, corresponding figure have figure

FINANCIAL RISK MANAGEMENT

The Company's financial risk management objectives and policies are consistent with those disclosed in the preceding audited

annual published financial statements of the Company for the year ended June 30, 2016.

The Company has no items to report in these levels.


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