Biafo Industries Limited’s financial results for the year ended June 30, 2011

Karachi: We refer to your letter No. KSE/Gen-5494 dated: September 15, 2011 and give below the desired information:

Our fax machine number through which fax will be transmitted is 051-2274744 Cell number of Ms. Shabana Faiz (deputed for transmitting of Fax) is 0300-9130077.

Ms. Shabana Faiz shall contact the Exchange on phone number 2439618, 5274383 before and after transmitting the fax.

We have to inform you that the Board of Directors of our company in their meeting held on Monday September 26, 2011 at 11.30 a.m. at registered office of the company Islamabad recommended the following:

1. Cash Dividend

Final Cash Dividend for the year ended June 30, 2011 at Rs. 2.80 per share i.e. 28%.

2. Bonus Shares     Nil

We are enclosing copies of Balance Sheet along with Profit and Loss Account, Statement of Comprehensive income, Cash Flow Statement and Statement of Changes in Equity for the year ended June 30, 2011.

The Annual General Meeting of the company will be held on October 24, 2011 at 11.00 a.m. at 203-04, 2nd Floor, M. Gulistan Khan House, 82-East, Fazal-ul-Haq road, Blue Area, Islamabad. (Copy of Notice of AGM is enclosed.)

The above entitlement will be paid to the shareholders whose names will appear in the Register of Members on October 16, 2011.

Share Transfer books of the company will remain closed from October 17, 2011 to October 24, 2011 both days inclusive. Transfers received at Riasat Ishtiaq Consulting (Pvt.) Ltd, Office No. 19-20, 2nd Floor, Hill View Plaza, Jinnah Avenue, Blue Area, Islamabad or Office No. 203-204, 2nd Floor, Mohammad Gulistan Khan House, 82- East, Fazal-ul-Haq Road, Blue Area, Islamabad at the close of business on October 16, 2011 will be treated in time for the purpose of above entitlement to the transferees. We will be sending you 300 copies of printed accounts for distribution amongst the members of the Exchange.

Notice of 23rd Annual General Meeting of Shareholders

Notice is hereby given that the 23rd Annual General Meeting of Biafo Industries Limited will be held on Monday 24th October 2011 at 11.00 a.m. at # 203,2nd Floor, M. Gulistan Khan House, 82-East Fazal-ul-Haq Road, Blue Area, Islamabad to transact the following business:

Ordinary Business

1. To confirm the minutes of the 22nd Annual General Meeting held on October 26, 2010.

2. To receive and adopt the Audited Accounts of the Company for the year ended June 30, 2011 together with Auditors’ report and Directors’ report thereon.

3. To approve the payment of final dividend of Rs 2.80 per share (28%) and also the interim dividends of Rs 1.25 per share (12.5%) declared on October 19, 2010, Rs.1.50 per share (15%) declared on February 18, 2011 and Rs.2.20 per share (22%) declared on April 19, 2011 making a total of Rs.7.75 per share (77.5%) for the year ended June 30, 2011.

4. To appoint Auditors for the year 2011-12 and to fix their remuneration. Retiring Auditors M/s KPMG Taseer Hadi and Co. Chartered Accountants being eligible offer themselves for reappointment for the year 2011-12.

5. To transact such other business as may be placed before the meeting with the permission of the Chairman.

Notes:

1. Share Transfer Books of the Company will remain closed from October 17, 2011 to October 24, 2011 both days inclusive.

2. A member entitled to attend and vote at the meeting shall be entitled to appoint another person, as his/her and proxy to attend, demand or join in demanding a poll, speak and vote instead of his/her and a proxy so appointed shall have such rights, as attending, speaking and voting at the meeting as are available to a member. Proxies in order to be effective must be received at the registered office of the company not later than 48 hours before the meeting duly stamped, signed and witnessed. A proxy need not be a member of the Company.

3. CDC Shareholders or their proxies are required to bring with them their original National Identity cards or Passports along with the Participant’s ID numbers and their Account Numbers at the time of attending the Annual General Meeting in order to authenticate their usual documents required for such purposes.

4. Shareholders are requested to promptly notify in writing to the Company of any change in their address.

Balance Sheet as at 30 June 2011

 

2011

2010

Note

Rupees

Rupees

Non Current Assets
Property, plant and equipment 4 265,806,932 273,100,062
Long term deposits 2,207,103 543,419
———–  ———–
268,014,035 273,643,511
Current Assets
Stores, spare parts and loose tools 5 8,821,182  3,857,800
Stock in trade 6 113,373,676 106,412,939
Trade debts unsecured 7 101,795,366 35,712,871
Advances 8 2,224,222 2,573,553
Trade deposits and short term prepayments 9 1,551,456 1,136,712
Advance income tax – net 10 1,661,769
Other receivables 11 503,875 474,840
Other financial assets 12 145,984,098 102,423,747
Cash and bank balances 13 33,667,947 51,712,868
———–  ———–
Current Liabilities 407,921,822 307,967,100
Trade and other payables 14 96,083,538 72,086,478
Markup accrued 525,114 29,984
Short term borrowings – Secured 15 42,666,382
Provision for taxation 10 786,399
———– ———–
140,061,433 72,116,462
———– ———–
Net Current Assets 267,860,389 235,850,638
Non Current Liabilities
Deferred employee benefit 16 1,019,689 815,849
Deferred tax liability – net 17 33,429,543 35,606,334
———– ———–
34,449,232 36,422,183
———– ———–
501,425,192 473,071,966
———– ———–
Represented by:
Share Capital and Reserves
Share capital 18 200,000,000 200,000,000
———– ———–
Unappropriated profit 237,515,259 206,054,454
Surplus on revaluation of Fixed Assets – Net of tax 19 63,909,933 67,017,512
———– ———–
501,425,192 473,071,966
———–  ———–
Contingencies and Commitments 20

 

The annexed notes 1 to 36 form an integral part of these financial statements.

Director

Chief Executive

Profit and Loss Account for the Year Ended 30 June 2011

 

2011

2010

Note

Rupees

Rupees

Net Sales 21 870,365,068 588,494,619
Cost of sales 22 (581,674,395) (396,687,968)
———– ———–
Gross Profit 288,690,673 191,806,652
Other operating income 23 10,305,437 6,913,633
Distribution cost 24  (8,096,615) (7,412,052)
Administrative expenses 25 (33,591,742)  (29,446,508)
Finance costs 26 (3,247,336) (2,276,147)
———– ———–
Operating profit 254,060,417 159,585,577
Workers profit participation fund (12,703,021) (7,979,279)
Workers’ welfare fund (4,757,082) (3,071,554)
———–  ———–
Profit before Taxation 236,600,315 148,534,745
Taxation
Current 27 (61,423,880) (37,337,124)
Deferred 27 2,176,792 1,134,851
———– ———–
(59,247,088)  (36,202,272)
 ———– ———–
Profit for the Year 177,353,226 112,332,473
 ———– ———–
Earnings Per Share – Basic and diluted 28 8.87 5.62

 

 

The annexed notes 1 to 36 form an integral part of these financial statements.

Statement of Comprehensive Income for the Year Ended 30 June 2011

 

2011

2010

Rupees

Rupees

Profit for the year 177,353,226 112,332,473
Other comprehensive income
———– ———–
Total Comprehensive Income for the Year 177,353,226 112,332,473

 

The annexed notes 1 to 36 form an integral part of these financial statements.

Statement of Comprehensive Income for the Year Ended 30 June 2011

Cash Flow Statement for the Year Ended 30 June 2011

 

2011

2010

Note

Rupees

Rupees

Cash Flows from Operating Activities
Profit before taxation 236,600,315 148,534,745
Adjustments for:
Depreciation 17,428,563 18,459,852
Finance costs  3,247,336 2,276,147
Provision for Workers’ profit participation fund 12,703,021 7,979,279
Provision for Workers, welfare fund 4,757,082 3,071,554
Provision for employee benefit 216,243 22,674
Provision for slow moving stores, spare parts and loose tools 218,500 215,000
Unrealized gain on remeasurement of investment  (9,087,851) (4,318,240)
Gain on disposal of property, plant and equipment (295,457)  (1,394)
Interest on deposit accounts and TDRs (880,059) (1,077,584)
Exchange gain (42,070) (1,516,415)
———– ———–
28,265,308 25,110,873
———– ———–
264,865,622 173,645,618
Changes in:
Store, spare parts and loose tools (3,181,882) (1,221,092)
Stock in trade  (6,960,737) (36,266,389)
Trade debts (64,269,987) 26,838,607
Advances, deposits, prepayments and other receivables (1,748,911) 1,357,164
Trade and other payables 15,317,010 23,807,377
 ———–  ———–
(60,844,507) 14,515,667
 ———–  ———–
Cash generated from operations 204,021,114 188,161,285
Finance costs paid  (2,752,206) (2,294,222)
Employees benefits paid  (12,403) (1,360)
Payments to Workers’ profit participation fund (7,979,279)  (7,989,310)
Payments to Workers’ welfare fund (3,071,554)   (3,021,222)
Income taxes paid (60,943,645)  (37,462,966)
———– ———–
(74,759,088)  (50,769,080)
———– ———–
Net cash from operating activities 129,262,026 137,392,205
Cash Flows from Investing Activities
Purchase of property, plant and equipment (12,337,764) (2,284,715)
Proceeds from disposal of property, plant and equipment 2,497,787 12,000
Investment made during the year (34,275,000)  (64,160,000)
Interest received on deposit accounts and TDRs 870,868 804,083
———–  ———–
Net cash used in investing activities (43,244,109)  (65,628,632)
Cash Flows from Financing Activities
Payment of finance lease liabilities  – (2,603,612)
Payment of dividend  (146,729,220)  (87,461,379)
———– ———–
Net cash used in financing activities (146,729,220) (90,064,991)
———–  ———–
Net Decrease in Cash and Cash Equivalents  (60,711,303) (18,301,418)
Cash and Cash Equivalents at Beginning of the Year 51,712,868  70,014,286
———–  ———–
Cash and Cash Equivalents at End of the Year 29  (8,998,435) 51,712,868

 

 

The annexed notes 1 to 36 form an integral part of these financial statements.

Statement of Changes in Equity for the Year Ended 30 June 2011

 

Unappropriated Total equity
Share capital profit profit
 Rupees Rupees  Rupees
Balance at 01 July 2009 200,000,000 180,261,349 380,261,349
———– ———– ———–
Total comprehensive income for the year 112,332,473 112,332,473
Transfer from surplus on revaluation of Property, plant and equipment incremental depreciation for the period – net of deferred tax
3,460,632 3,460,632
 ———– ———– ———–
115,793,105 115,793,305
Transactions with members recorded directly in equity Distribution to members
Dividend to members: Final dividend of 2009 @ Rs. 2.50 per share  (50,000,000) (50,000,000)
Dividend to members: First Interim dividend of 2010 @ Rs. 1.00  per share  – (20,000,000) (20,000,000)
Dividend to members: Second Interim dividend of 2010 @ Rs. 1.00 per share (20,000,000)  (20,000,000)
———–  ———–  ———–
Total distribution to members  – (90,000,000) (90,000,000)
———–  ———–  ———–
Balance at 30 June 2010  200,000,000 206,054,454 406,054,454
———– ———– ———–
Balance at 01 July 2010 200,000,000  206,054,434 406,054,454
———– ———–  ———–
Total comprehensive income for the year 177,353,226 177,353,226
Transfer from surplus on revaluation of property, plant mid equipment incremental depreciation for the period – net of deferred tax
3,107,579  3,107,579
 ———–  ———– ———–
180,460,805  180,460,805
Transactions with members recorded directly in equity
Distribution to members
Dividend to members: Final dividend of 2010@ Rs. 2.50 per share (50,000,000) (50,000,000)
Dividend to members: First Interim dividend of 2011
per share (25,000,000) (25,000,000)
Dividend to numbers Second Interim dividend of 2011@ Rs.1.50  – (30,000,000) (30,000,000)
Dividend to members: Third Interim dividend of 2011 @ Rs.2.20 per share  – (44,000,000) (44,000,000)
———–  ———–  ———–
Total distribution to members  – (149,000,000) (149,000,000)
———– ———– ———–
Balance at 30 June 2011  200,000,000 237,515,259 437,515,259

The annexed notes 1 to 36 form an integral part of these financial statements.

 

For more information, contact:
Biafo Industries Limited
Head Office: No. 203-204, 2nd Floor,
Muhammad Gulistan Khan House,
82-East, Fazl ul Haq Road,
Blue Area, Islamabad – Pakistan.
Tel: (92-51) 2277358-9,
Fax: (92-51) 2274744,
E-mail: management@biafo.com,
Website: www.biafo.com

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