Baluchistan Wheels : Transmission of Quarterly Report for the Period Ended September 30, 2023

1st QUARTERLY REPORT

SEPTEMBER 2023

(UN-AUDITED)

w w w. b w h e e l s . c o m

CONTENTS

Company Information	03
Directors' Report to the Shareholders (English)	04
Directors' Report to the Shareholders (Urdu)	06
Condensed Interim Statement of Financial Position	07
Condensed Interim Statement of Profit or Loss	08
Condensed Interim Statement of Comprehensive Income	09
Condensed Interim Statement of Cash Flows	10
Condensed Interim Statement of Changes of Equity	11
Notes to the Condensed Interim Financial Statements	12

3

COMPANY INFORMATION

CHAIRMAN (Non-Executive Director)			EXTERNAL AUDITORS
Mr. Anis Wahab Zuberi			BDO Ebrahim & Co.
			(Chartered Accountants)
CHIEF EXECUTIVE (Executive Director)
Mr. Razak H.M. Bengali			LEGAL ADVISOR
			Mohsin Tayebaly & Company
INDEPENDENT DIRECTORS			(Advocates)
Syed Zubair Ahmed Shah
Mr. Aamir Amin			TAX CONSULTANTS
Mr. Irfan Ahmed Qureshi			Baker Tilly Mehmood Idrees Qamar
Mr. Muhammad Javed			(Chartered Accountants)
EXECUTIVE DIRECTORS			BDO Ebrahim & Co.
Mr.Muhammad Siddique Misri	Director Marketing/ Business Development		(Chartered Accountants)
Mr. Muhammad Irfan Ghani	Chief Operating Officer
			BANKERS
NON-EXECUTIVE DIRECTOR			Habib Bank Limited
Mrs. Saba Nadeem			Bank Al-Habib Limited
			Faysal Bank Limited
CHIEF FINANCIAL OFFICER			National Bank of Pakistan
Mr. Muhammad Yasin Yunus Ladha
			SHARE REGISTRAR
COMPANY SECRETARY			THK Associates (Pvt) Limited
Mr. Muhammad Asad Saeed			Plot # 32-C 2, Jami Commercial Street 2, D.H.A.
			Phase VII Karachi - 75400.
AUDIT COMMITTEE			UAN#[phone]
Syed Zubair Ahmed Shah	Independent Director	Chairman	Direct:[phone]
Mr. Anis Wahab Zuberi	Non-Executive Director	Member	Fax#[phone]
Mr. Aamir Amin	Independent Director	Member
Mr. Irfan Ahmed Qureshi	Independent Director	Member	HEAD OFFICE
Mrs. Saba Nadeem	Non-Executive Director	Member	1st Floor,State Life Building # 3
			Dr.Ziauddin Ahmed Road,Karachi.
HUMAN RESOURCES AND REMUNERATION COMMITTEE		E-mail:[e-mail]
Mr. Muhammad Javed	Independent Director	Chairman	Website:http://www.bwheels.com
Syed Zubair Ahmed Shah	Independent Director	Member	Telephone # [phone]
Mr. Anis Wahab Zuberi	Non-Executive Director	Member	Fax # [phone]
Mr.Muhammad Irfan Ghani	Chief Operating Officer(Executive Director)	Member
			FACTORY AND REGISTERED OFFICE
MANAGEMENT COMMITTEE			Main RCD Highway, Hub Chowki,
Mr. Razak H.M. Bengali	Chief Executive		Lasbella, Baluchistan.
Mr.Muhammad Siddique Misri	Director Marketing/ Business Development		Telephone # [phone],28
Mr.Muhammad Irfan Ghani	Chief Operating Officer		Fax # [phone]
Mr.Muhammad Yasin Yunus Ladha	S.G.M (Finance) / Chief Financial Officer (CFO)
Mr. Fareed Abdul Razzak	G.M (Finance)/Deputy CFO
Syed Pervaiz Akhter	G.M (HR/IR)
Mr. Muhammad Asad Saeed	D.G.M (Finance) / Company Secretary
Mr. Kumail Irfan Ghani	D.G.M (Supply & Services)
CHIEF INTERNAL AUDITOR
Mr. Atif Iqbal	Sr. Manager

4

		DIRECTORS' REPORT
The Directors take	pleasure in presenting the Un-Audited Condensed Interim Financial
Statements for the 1	st	Quarter ended September 30, 2023
FINANCIAL RESULTS
During the period (July - September 2023) the Company had overall consolidated revenue of Rs.
509 million as compared to Rs. 403 million of corresponding period of last year (increased by
26%).
The car wheels sale was Rs. 162 million as compared to Rs. 191 million in the corresponding
period of previous year (decreased by 15%). Likewise, the Truck/Bus wheels sale decreased from
Rs.48 million to Rs. 42 million (decreased by 13%). Contrary to, the sale of Tractor wheels
increased from Rs. 142 million to Rs. 295 million (increased by 108%).
The Gross Profit shrunk by 51% to Rs.44.202 million as against Rs.90.522 million. The
Company earned Net Profit after tax of Rs.28.169 million as against Rs.27.596 million in the
corresponding period of last year.
The decrease in gross profit is mainly due to drop in the production and sale of car wheels and
truck/bus wheels segments. However, the production and sale of tractor wheels increased
substantially, signaling improvement in agriculture indicators. The slight increase in net profit is
due to reversal of prior year's tax provision.
There are no significant changes in Contingencies and Commitments as disclosed in Note 28 of
the Financial Statements for the year ended June 30, 2023.
FUTURE OUTLOOK
The massive hikes in auto prices coupled with expensive auto financing on account of record
high interest rates, has hit the purchasing power of many consumers, which in turn would keep
auto sales subdued and its performance unsatisfactory in Financial Year (FY) 24. However,
easing auto-part imports would accelerate the production and sales volumes of autos in FY 24.
The management being conscious of the challenges that lie ahead and continuously evolving
strategies and adopting measure to meet future challenges and to maintain business growth.

5

ACKNOWLEDGEMENT

We take this opportunity to thank our customers and all the stakeholders who reposed their trust and confidence in the company and acknowledge the efforts of the entire BWL team including our staff and workers and look forward to their continued support.

May Allah bless us and help us to achieve success for your company and for the benefit of all stake holders, and the Country in general. Aameen!

For and on Behalf of the Board

Razak H.M. Bengali	Muhammad Siddique Misri
Chief Executive	Director
Karachi:October 17, 2023

6

7

BALUCHISTAN WHEELS LIMITED

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT SEPTEMBER 30, 2023

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment Long-term loans and advances Long-term deposits

CURRENT ASSETS

	(Un-audited)		(Audited)
	September 30,		June 30,
	2023	2023
Note	--------(Rupees in '000)--------
5	941,783	946,396
	10,915	7,753
	5,419		8,579
	958,117	962,728

Stores, spare parts and loose tools
Stock-in-trade	6
Trade debts	7
Loans and advances
Deposits and short-term prepayments
Other receivables
Short-term investments	8
Sales tax refundable
Taxation - net
Bank balances	9

TOTAL ASSETS

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized share capital

31,206

387,042

241,227

33,609

3,651

14,122

600,407

-

13,157

68,587

1,393,008

2,351,125

36,505

649,130

110,408

38,408

778

13,951

514,904

12,049

-

18,772

1,394,905

2,357,633

25,000,000 (30 June 2023:25,000,000) ordinary shares of Rs.10/- each

Issued, subscribed and paid-up capital

Revenue reserves

Revaluation surplus on land

NON-CURRENT LIABILITIES

Lease liabilities

Long-term deposits

Deferred taxation

CURRENT LIABILITIES

Trade and other payables

Unclaimed dividend

Current portion of:

Lease liabilities

Long-term deposits

Sales tax payable

Taxation - net

Provision for warranty

CONTINGENCIES AND COMMITMENTS

10

11

250,000

133,343

1,325,052

579,075

2,037,470

12,295

1,184

31,400

44,879

192,032

18,015

16,079

98

40,914

-

1,638

268,776

2,351,125

250,000

133,343

1,343,553

579,075

2,055,971

13,768

1,115

31,485

46,368

187,926

8,184

20,197

89

-

37,396

1,502

255,294

2,357,633

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

RAZAK H.M. BENGALI	MUHAMMAD YASIN YUNUS LADHA	MUHAMMAD SIDDIQUE MISRI
CHIEF EXECUTIVE	CHIEF FINANCIAL OFFICER	DIRECTOR

8

BALUCHISTAN WHEELS LIMITED

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UNAUDITED)

FOR THE PERIOD ENDED SEPTEMBER 30, 2023

Turnover - net

Cost of sales

Gross profit

Administrative expenses

Selling & distribution expenses

Other expenses

Other income

Operating profit

Finance costs

Profit before taxation

Taxation

Profit after taxation

Earnings per share- basic and diluted ( Rupees per share)

Note

12

Quarter Ended

September 30,		September 30,
2023	2022
------------------Rs. in '000-------------------
508,628	403,396
(464,426)	(312,874)
44,202	90,522
(34,497)		(34,651)
(14,843)		(18,982)
(1,552)		(16,920)
29,077		20,290
(21,815)	(50,263)
22,387	40,259
(1,766)	(1,391)
20,621	38,868
7,548	(11,272)
28,169	27,596
2.11	2.07

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

RAZAK H.M. BENGALI	MUHAMMAD YASIN YUNUS LADHA	MUHAMMAD SIDDIQUE MISRI
CHIEF EXECUTIVE	CHIEF FINANCIAL OFFICER	DIRECTOR

9

10

BALUCHISTAN WHEELS LIMITED
CONDENSED INTERIM STATEMENT OF CASH FLOW (UNAUDITED)
FOR THE PERIOD ENDED SEPTEMBER 30, 2023
September 30,	September 30,
2023	2022
--------(Rupees in '000)--------
CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation

Adjustments for:

Depreciation on operating fixed assets

Government grants release

(Gain)/Loss on sales of operating fixed assets Finance costs

Accrual for compensated absenses

Provision for warranty claims and adjustment claims Provision for employees' defined benefit obligations Profit on saving accounts and treasury bills

Realized/ unrealized (gain)/loss on change in fair value of listed equity securities

Dividend income

Decrease / (increase) in current assets

Stores, spares and loose tools

Stock-in-trade

Trade debts

Loans and advances

Deposits & short-term prepayments

other receivables

Sales tax (refundable)/ payable - net

20,621

10,078

-

(13)

1,766

-

136

-

(28,059)

(560)

-

(16,652)

3,969

5,299

262,088

(130,819)

4,799

(2,873)

14,122

40,914

193,530

38,868

11,447

(90)

(6)

1,391

500 -

350

(20,343)

282

(133)

(6,602)

32,266

4,425

(224,623)

155,625

12,623

562

(17,078)

(31,385)

(99,851)

	197,499	(67,585)
(Decrease)/ increase in current liabilities
Trade and other payables	14,530	4,890
Changes in working capital	212,029	(62,695)
CASH FLOWS FROM OPERATING ACTIVITIES
Finance cost paid	1,711	1,366
Income tax (paid)/refundable - net	(40,354)	(44,275)
Employees' benefits paid	-	-
Long-term loans and advances - net	(3,162)	(396)
Long-term deposits	3,238	-
Net cash (used in)/ generated from operating activities	173,462	(106,000)
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed capital expenditure	(10,183)	(629)
Proceed from sale of operating fixed assets	1,155	1,066
Profit received on saving accounts and treasury bills	13,937	2,529
Short-term Investments redeemed/(made) during the period	(85,503)	79,581
Dividend received	-	133
Net cash generated/ (used in) from investing activities	(80,594)	82,680

CASH FLOWS FROM FINANCING ACTIVITIES

Long term financing

Lease rental paid

Dividend paid on ordinary shares

Net cash (used in) financing activities

Net increase/(decrease) 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

-

(6,214)

(36,839)

(43,053)

49,815

18,772

68,587

(5,350)

(5,616)

(4)

(10,970)

(34,290)

66,034

31,744

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

RAZAK H.M. BENGALI	MUHAMMAD YASIN YUNUS LADHA	MUHAMMAD SIDDIQUE MISRI
CHIEF EXECUTIVE	CHIEF FINANCIAL OFFICER	DIRECTOR