Ghani Automobile Industries Limited

Third QuarterFinancial Statements

2014-15

The Power of PerfectionThe Power of Perfection

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The Power of Perfection

Corporate InformationBOARD OF DIRECTORS

AUDIT COMMITTEE

COMPANY SECRETARY

CHIEF FINANCIAL OFFICER

AUDITORS

LEGAL ADVISORS

SHARE REGISTRAR

BANKERS

HEAD OFFICE &REGISTERED OFFICE

Mr. Imtiaz Ahmad Khan Chairman

Mr. Aftab Ahmad Khan Chief Executive OfficerMr. Anwaar Ahmad Khan

Mrs. Reema AnwaarMrs. Ayesha AftabMr. Junaid GhaniMr. Obaid GhaniMr. Jubair Ghani

ChairmanMemberMember

ChairmanMemberMember

Hafiz Mohammad Imran Sabir

Mr. Umer Farooq Khan

Hassan Farooq & CompanyChartered Accountants

Ally Law Associates

Corplink (Pvt) Ltd.Wings Arcade, 1-K Commercial Model Town Lahore, PakistanPhones : (042) 35916714, 35916719 Fax : (042) 35869037

Albaraka Islamic BankAllied Bank of Pakistan LimitedHabib Bank LimitedMeezan Bank Limited, Islamic BankingSoneri Bank Limited, Islamic BankingBurj Bank LimitedHabib Metropolitan Bank LimitedBank Alfalah Limited

40-L Model Town Lahore, PakistanUAN : (042) 111 949 949Fax : (042) 3517 2263E-mail : i nfo@ghaniautomobiles.comhttp://www.ghaniautomobiles.com

MARKETING OFFICE

AUTOMOBILE PLANT

12 D/3, Chandni Chowk KDA Scheme No. 7-8 Karachi - 74000UAN : (021) 111 949 949, Fax : (021) 3492 6349E-mail : info@ghaniautomobiles.com

49-KM, Multan Road, (from Lahore)

HR & R COMMITTEE Mr. Anwaar Ahmad KhanMrs. Ayesha AftabMr. Obaid Ghani

Dr. Amjad AqeelMrs. Ayesha AftabMr. Jubair Ghani

Ms. Zahra AftabDr. Amjad Aqeel

UBL Ameen Islamic Banking

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Directors’ Report

FINANCIAL INDICATORS

Rupees ‘000’

Sales – Net

Gross profit / (loss)

Profit / (loss) before taxation

Net profit / (loss)

Earning / (loss) per share

123,198

(7,027)

11,382

10,557

0.26

84,825

7,591

(408)

(886)

(0.02)

March 31, 2014March 31, 2015

Dear Shareholders,

Assala-mo-Alaikum wa Rahmatullah wa Barakatohu.

The board of Directors of Ghani Automobile Industries Limited is pleased to present financial statements of the company for the third quarter and nine months ended March 31, 2015.

During the nine months ended March 31, 2015, the net sale of the Company has increased to Rupees 123 million as compared to Rupees 85 million for the corresponding period of last year. The Company has recorded Gross Loss of Rupees 7 million as compared to Gross Profit of Rupees 8 million for same period of the last year. Profit before tax has increased to Rupees 11 million as compared to Loss of Rupees 0.4 million for the corresponding period of last year. Similarly, the profit after tax also increased to Rupees 10 million as compared to net loss of Rupees 0.9 million for the same period of the last year. Earning per share has also increased to Rupees 0.26 as compared to loss per share of Rupees 0.02 for the corresponding period of last year. On behalf of the Directors, we are pleased to record our appreciation for our customers, employees, suppliers, shareholders and financial institutions for their trust in the management of the company.

We thank Allah Subhanatallah for blessing all of us and your company. We all should continue our endeavors to fully obey the commandments of Almighty Allah and Sunnah of our Prophet Muhammad (Sallallaho-Alaihe-Wasallum).

On behalf of the Board of Directors

Lahore: April 28, 2015 Aftab Ahmed Khan

Chief Executive Officer

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Condensed Interim Balance SheetAs at March 2015 (UN-AUDITED)

31 MAR 2015 30 JUNE 2014

NOTE Rupees Rupees

EQUITY & LIABILITIES

Share capital and reserves

Authorized Share Capital

50,000,000 (Jun 2014: 20,000,000) ordinary

shares of Rs.10 each 500,000,000 500,000,000

Issued, subscribed and paid up capital 500,000,000 200,000,000

Accumulated losses (130,880,597) (141,437,661)

369,119,403 58,562,339Non-current liabilities

Cuurent liabilities

Short term Bank Financing 5,397,758 96,526,624

Loan from sponsors 4 117,680,000 170,205,000

Creditors, accrued and other liabilities 90,325,127 96,636,918

Provision For Taxation 4,431,740 1,243,770

217,834,625 364,612,312

Contingencies and commitments 5 - -

586,954,028 423,174,651

ASSETS

Non-current assets

Property, plant and equipment 36,489,217 38,254,831

security deposits 907,386 667,386

Deferred Cost 177,949,870 24,342,618

Current assets

Stores, spares and loose tools 660,064 665,012

Stock in trade 95,623,201 87,521,496

Trade debts 185,042,029 197,782,798

Advances and other receivables 89,168,242 63,893,621

Cash and bank balances 1,114,019 10,046,889

371,607,555 359,909,816

586,954,028 423,174,651

The annexed notes form 1 to 8 an integral part of these financial statements

______________________

DIRECTOR

________________________

CHIEF EXECUTIVE OFFICER

Condensed Interim Profit & Loss Account

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for the Period ended March 31, 2015 (UN-AUDITED)

2015 2014 2015 2014

NOTE Rupees Rupees Rupees Rupees

Sales-Net 35,663,405 27,778,015 123,197,933 84,824,603

Cost of sales 37,708,133 21,756,643 130,225,305 77,233,544

Gross (loss) / profit (2,044,728) 6,021,372 (7,027,372) 7,591,059

Administrative expenses 1,526,644 763,028 4,235,269 3,093,516

Distribution and marketing expenses 1,388,942 2,342,031 7,661,988 7,526,126

2,915,586 3,105,059 11,897,257 10,619,642

(4,960,314) 2,916,313 (18,924,629) (3,028,583)

Other Operating Income 3,046,703 1,969,000 38,255,265 10,101,000

Operating profit before finance costs (1,913,611) 4,885,313 19,330,636 7,072,417

Finance Cost 256,002 2,926,099 7,949,084 7,480,798

Profit before taxation (2,169,613) 1,959,214 11,381,552 (408,381)

Taxation

Current Tax (70,000) (277,780) (4,431,740) (848,246)

Deferred Tax 18,873 - 3,607,252 370,168

(51,127) (277,780) (824,488) (478,078)

Profit after taxation (2,220,740) 1,681,434 10,557,064 (886,459)

Earning / (loss) per share - Basic and Diluted (0.05) 0.03 0.26 (0.02)

The annexed notes form an integral part of these accounts

January To March July To March

______________________

DIRECTOR

________________________

CHIEF EXECUTIVE OFFICER

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Condensed Interim Statement Of Comprehensive Incomefor the Period ended March 31, 2015 (UN-AUDITED)

2015 2014 2015 2014

NOTE Rupees Rupees Rupees Rupees

Profit and loss for the period (2,220,740) 1,681,434 10,557,064 (886,459)

Other comprehensive income - - - -

Total comprehensive profit for the period (2,220,740) 1,681,434 10,557,064 (886,459)

The annexed notes 1 to 8 form an integral part of these condensed interim financial statements.

January To March July To March

______________________

DIRECTOR

________________________

CHIEF EXECUTIVE OFFICER

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Condensed Interim Cash Flow Statementfor the Period ended March 31, 2015 (UN-AUDITED)

31 March 2015 30 JUNE 2014

Rupees Rupees

CASH FLOWS FROM OPERATING ACTIVITIES

Profit / (loss) for the period before tax 11,381,552 (4,043,796)

Adjustment for :

Depreciation 1,765,614 2,632,816

Financial charges 7,949,084 8,779,122

9,714,698 11,411,938

Operating profit / (loss) before working capital changes 21,096,250 7,368,142

(Increase) / decrease in current assets

Store, spares and loose tools 4,948 148,618

Stock in trade (8,101,705) 17,020,575

Trade debtors 12,740,769 (6,433,207)

Advances and other receivables (27,147,689) 1,476,907

(22,503,677) 12,212,893

Increase / (decrease) in current liabilities

Creditors, accrued and other liabilities (6,311,791) (4,589,383)

(7,719,218) 14,991,652

Financial charges paid (7,949,084) (8,102,803)

Taxes paid 629,298 (5,841,305)

NET CASH FLOWS FROM OPERATING ACTIVITIES (15,039,004) 1,047,544

Security deposits (240,000) -

Acquisition Of Fixed Assets - (11,100)

NET CASH FLOWS FROM INVESTING ACTIVITIES (240,000) (11,100)

Murabaha financing received

Murabaha financing received -

Loan from sponsors - 2,100,000

Issuance of Right Shares 150,000,000 -

Murabaha financing repaid (91,128,866) 2,108,129

Repayment of loan from sponsors (52,525,000) -

NET CASH FLOWS FROM FINANCING ACTIVITIES 6,346,134 4,208,129

Net increase / (decrease) in cash (8,932,870) 5,244,573

Cash and cash equivalents at the beginning of the period 10,046,889 4,802,316

Cash and cash equivalents at the end of the period 1,114,019 10,046,889

The annexed notes form an integral part of these accounts

______________________

DIRECTOR

________________________

CHIEF EXECUTIVE OFFICER

Condensed Interim Statement Of Changes In Equity

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for the Period ended March 31, 2015 (UN-AUDITED)

Share Capital Accumulated

LossCapital profit/(loss)

Rupees Rupees Rupees

Balance as on June 30, 2013 200,000,000 (141,437,661)

Net Profit for the year - -

Balance as on June 30, 2014 200,000,000 (141,437,661) 58,562,339

58,562,339

Balance as on July 01, 2014 200,000,000 (141,437,661) 58,562,339

Issue of Right Shares 300,000,000 - 300,000,000

Net profit / (loss) for the period - 10,557,064 10,557,064

Balance as on March 31, 2015 500,000,000 (130,880,597) 369,119,403

The annexed notes 1 to 8 form an integral part of these condensed interim financial statements

TOTAL

______________________

DIRECTOR

________________________

CHIEF EXECUTIVE OFFICER

-

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Notes To The Condensed Interim Financial Statementsfor the Period ended March 31, 2015 (UN-AUDITED)

The company is a public listed company incorporated in Pakistan under the Companies Ordinance, 1984 in September 1987. The registered office of the company is situated at 40-L Model Town, Lahore. The shares of the company are quoted on Stock Exchanges in Pakistan. The name of the company has been changed from Ghani Textile Limited to Ghani Automobile Industries Limited with effect from March 31, 2004. The principal activity of company has been changed during year 2004 from manufacture and trade of grey cloth to manufacture, assemble and trade of Automotive Vehicles of all kinds and sorts.

These financial statements are unaudited and are being submitted to the shareholders as required under Section 245 of the Companies Ordinance, 1984. These have been prepared in accordance with International Accounting Standard No. 34, Interim Financial Reporting as applicable in Pakistan and notified by Securities and Exchange Commission of Pakistan. The interim condensed financial statements do not include all the information and disclosure required in the annual financial statements, and should be read in conjunction with the company's annual financial statement for the year ended june 30, 2014.

The accounting policies and method of computation adopted for the preparation of these interim financial statements are the same as applied in the preparation of the preceding annual published financial statements of the company for the year ended June 30, 2014.

1 COMPANY AND ITS OPERATIONS

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preparation of Financial Statements

2.2 Accounting Conventions

31 March 2015 30 JUNE 2014

Rupees Rupees3 ISSUED, SUBSCRIBED AND PAID UP CAPITAL

19,250,000 (Jun 2014: 19,250,000) ordinary shares of

Rupees 10 each fully paid in cash 192,500,000 192,500,000

250,000 (Jun 2014: 250,000) ordinary shares of Rupees

10 each fully paid other than cash 2,500,000 2,500,000

500,000 (Jun 2014: 500,000) ordinary shares of Rupees 10

each issued as bonus shares 5,000,000 5,000,000

30,000,000 (Jun 2014: Nil) ordinary shares of Rupees 10

each issued as bonus shares 3.1 300,000,000 -

500,000,000 200,000,000

4 LOAN FROM SPONSORS

It represents un-secured, non-interest bearing loan from directors payable on demand

5 CONTINGENCIES AND COMMITMENTS

Contingencies

Commitments

Commitments as at March 31, 2015 was Nil (June 30, 2014: Rs. 6,069,990/-).

3.1

There is no change in contingent liabilities since the date of published audited financial statements for the year ended June 30, 2014 except the contingent liability related to bank guarantee issued in favour of SNGPL amounting to Rs. 1,200,000/- .

6 TRANSACTIONS WITH RELATED PARTIES

Name of Related Party Nature of Transaction

Ghani Glass Ltd. Sale of Motorcycles

Organisational expenses

Ghani Value Glass Ltd. Sale of Motorcycles

Directors

Anwaar Ahmad Khan (March 31, 2015 Nill) June 30, 2014

Aftab Ahmad Khan 2.913 million shares of Ghani glass limited are

Spouse of directors pledged against morabaha facility availed from

Obaid Ghani Soneri Bank Limited by the Company.

Junaid Ghani

7 CORRESPONDING FIGURES

8 AUTHORIZATION TO ISSUE

This condensed interim financial information was authorized for issue in the Board of Directors meeting held on April 28, 2015.

The related parties comprised of associated undertakings, directors and key personnel. The directors of the related companies are close members of the familyof the directors of the company. The company in the normal course of business carries out transactions with the related parties. Transactions with related parties during the period are as follows:

86,000 923,434

20,000

43,000

- 150,000,000

129,000 150,943,434

In order to comply with the requirement of International Accounting Standard 34 -'Interim Financial Reporting' the condensed interim balance sheet and condensed interim statement of changes in equity have been compared with the balances of annual audited financial statements of preceding financial year, whereas, the condensed interim profit and loss account, condensed interim statement of comprehensive income and condensed interim cash flow statement have been compared with the balances of comparable period of preceding financial year.

During the period Company has issued thirty million ordinary shares at discount of 50%. The Company has also complied with the requirements of Companies ordinance 1984 with respect to issuance of shares at discount.

Fa

ran

: 0

30

0-4

43

15

38

, 0

32

1-4

01

89

36

Head Office:40-L, Model Town, Lahore, PakistanUAN: +92-42-111-949-949Fax: +92-42-35172263www.ghaniautomobiles.com