DYNEA PAKISTAN LIMITED · 2020. 5. 1. · IFRIC 23 – Uncertainty over income tax treatments IFRS...

Condensed Interim Financial StatementsFOR THE NINE MONTHS ENDED MARCH 31, 2020.

(UN-AUDITED)

DYNEA PAKISTAN LIMITED

CONTENTS

Company Information 1

Directors' Review Report 2

Condensed Interim Statement of Financial Position 4

Condensed Interim Statement of Profit or Loss Account 5

Condensed Interim Statement of Comprehensive Income 6

Condensed Interim Statement of Cash Flows 7

Condensed Interim Statement of Changes in Equity 8

Notes to the Condensed Interim Financial Statements 9

Page No.

DYNEA PAKISTAN LIMITED

DYNEA PAKISTAN LIMITEDCOMPANY INFORMATION

01

DYNEA PAKISTAN LIMITEDDIRECTORS' REVIEW REPORT TO THE SHAREHOLDERS

FOR THE NINE MONTHS ENDED MARCH 31, 2020.The Directors of your Company are pleased to present this report along with the unaudited financial results for the third quarter and nine months ended March 31, 2020.

During the nine months ended March 31, 2020, the Company earned a profit before tax of Rs. 360.68 million and an after tax profit of Rs. 254.95 million compared to the profit before tax of Rs. 269.17 million and the after tax profit of Rs.190.95 million during the corresponding period last year. The basic and diluted earnings per share increased from Rs.10.12 to Rs.13.51.

Resin Division

The Resin Division generated sales revenue of Rs.1,566.58 million compared to Rs.2,005.51 million achieved during the same period last year, showing a decline of 21.89%. The Resin Division result was Rs.158.48 million compared to Rs.184.06 million for the corresponding period of the previous financial year.

Moulding Compound Division

The Moulding Compound Division generated sales revenue of Rs.2,194.39 million compared to Rs.2,029.66 million achieved during the same period last year, showing an increase of 8.12%. The Moulding Compound Division result was Rs.380.51 million compared to Rs.255.18 million for the corresponding period of the previous financial year.

Future Outlook

The COVID-19 health crisis and continuing economic uncertainty present a unique set of challenges for Dynea. The company anticipates pressure on resin sales volume due to excess capacity, ongoing competition and slowdown in the construction sector. In addition, there has been a trend in recent years of resin users going captive and making their own resins.

Whilst the Company cannot predict when and how the economy will move forward as the COVID-19 situation improves, Company Management is well advanced with planning a strategy to take advantage of opportunities as they may arise.

Vend Fee and Permit Fee Case

In December 2019, The Government of Sindh filed an application that the Department does not press the instant and connected appeals, and that a fresh demand shall be raised following the notification dated 14 February 2002 and Sindh (Amendment) Abkari Ordinance 2002 notified on 30 October 2002. In addition to that the Department would surrender the demand secured by Indemnity Bonds for the period 1990 upto October 2002. The Supreme Court accepted the withdrawal on those terms.Upon the receipt of the fresh demand from the Department, the Company intend to approach the relevant Court of Justice to defend the case. The Company expects, based on the view of the legal advisor and the merit of the case, that the decision will be in the favor of the Company. Accordingly, no provision for any liability has been made in these condensed interim financial statements. The management is confident that the Company will be able to continue as a going concern.

Acknowledgment

In conclusion, as Directors of the Company, we would like to thank the Almighty Allah for all his blessings in these challenging times. We wish to convey our appreciation to our shareholders, customers, financial institutions and other stakeholders for their continued support and the confidence that they have shown in the Company.

On behalf of the Board

Shabbir Abbas Chief Executive Officer

Ameen Mohammad BandukdaDirector

Karachi: April 27, 2020

02

03

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DYNEA PAKISTAN LIMITEDCONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2020

04Karachi: April 27, 2020

SHABBIR ABBASChief Executive Officer

AMEEN MOHAMMAD BANDUKDADirector

SHAKEEL UDDINChief Financial Officer




DYNEA PAKISTAN LIMITEDCONDENSED INTERIM STATEMENT OF PROFIT OR LOSS

FOR THE NINE MONTHS ENDED 31 MARCH 2020(UN-AUDITED)





DYNEA PAKISTAN LIMITEDCONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME



DYNEA PAKISTAN LIMITEDCONDENSED INTERIM STATEMENT OF CASH FLOWS






DYNEA PAKISTAN LIMITEDCONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE NINE MONTHS ENDED 31 MARCH 2020





1. THE COMPANY AND ITS OPERATIONS

2. BASIS OF PREPARATION

2.1

-

-

2.2

2.3

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

4. NEW STANDARDS, AMMENDMENTS AND IMPROVEMENTS OF IFRSs

IFRS 9 – Prepayment features with negative compensation (Amendments)

IAS 19 – Plan amendment, curtailment or settlement (Amendments)

IAS 28 – Long term interests in associates and joint ventures (Amendments)

IFRIC 23 – Uncertainty over income tax treatments

IFRS 16 – Leases

Dynea Pakistan Limited (the Company) was incorporated on June 20, 1982, in Pakistan as a public limited

company and is listed on Pakistan Stock Exchange Limited. It is engaged in the manufacture and sale of

formaldehyde, urea / melamine formaldehyde and moulding compounds. The registered office of the

Company is situated at Office No. 406, Parsa Tower, Plot No. 31/1/A, Block-6, P.E.C.H.S, Shahrah-e-Faisal,

Karachi, Pakistan.

These condensed interim financial statements have been prepared in accordance with the accounting and

reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting

standards as applicable in Pakistan for interim financial reporting comprise of:

These condensed interim financial statements do not include all the information and disclosures required in

annual financial statements and should be read in conjunction with the Company’s annual financial

statements for the year ended 30 June 2019.

These condensed interim financial statements is presented in Pakistan Rupees which is the Company’s

functional and presentation currency.

The accounting policies and methods of computation adopted in the preparation of these condensed interim

financial statements are consistent with those followed in the preparation of the Company’s annual financial

statements for the year ended 30 June 2019 except for the adoption of new standards, amendments and

interpretation of International Financial Reporting Standards (IFRSs) as disclosed in note 4.

The Company has adopted the following accounting standards and amendments of IFRSs and the

improvements to accounting standards which became effective during the current period:

Standard or amendment:

Provisions of and directives issued under the Companies Act, 2017.

International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International

Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and

Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements

of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

DYNEA PAKISTAN LIMITEDNOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED 31 MARCH 2020

09

10

31 March 2020

1,347 (1,233)

(298)(184)

16

Karachi: April 27, 2020




BOOK POSTP R I N T E D M AT T E R

If undelivered please return to:

Dynea Pakistan LimitedOffice No. 406, Parsa Tower, Plot No. 31/1/A, Block-6, P.E.C.H.S, Shahrah-e-Faisal,Karachi-75400. PhFaxEmail

: (92-21) 34520132 - 35: (92-21) 34392182: [email protected]

DYNEA PAKISTAN LIMITED · 2020. 5. 1. · IFRIC 23 – Uncertainty over income tax treatments IFRS...

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