WORKING TOGETHER
FOR A
BETTER FUTURE
CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2022
CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2022
CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2022
TABLE OF CONTENTS
COMPANY INFORMATION | 01 |
DIRECTORS' REPORT | 02 |
INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS | 04 |
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION | 05 |
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED) | 06 |
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) | 07 |
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) | 08 |
CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED) | 09 |
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED) | 10 |
CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2022
COMPANY INFORMATION
Chairman (Non-Executive)
Mr. Kamal A. Chinoy
Independent Directors
Dr. Amjad Waheed
Ms. Nausheen Ahmad
Mr. Nihal Cassim
Non-Executive Directors
Mr. Haroun Rashid
Mr. Mustapha A. Chinoy
Mr. Shuji Tsubota
Director and Chief Operating Officer
Mr. Samir M. Chinoy
Chief Executive Officer
Mr. Yousuf H. Mirza
Chief Financial Officer
Mr. Mujtaba Hussain
Company Secretary & Head of Legal Affairs
Ms. Schaane Ansari
External Auditors
A. F. Ferguson & Co., Chartered Accountants
Legal Advisor(s)
Mrs. Sana Shaikh Fikree
Investor Relations Contact
Shares Registrar
THK Associates (Pvt.) Ltd
Plot No. 32-C, Jami Commercial Street 2 D.H.A., Phase VII, Karachi - 75500.
Phone: +92 21-111-000-322, +92 21-37120628-29
Email: sfc@thk.com.pk
Registered Office
101, Beaumont Plaza, 10, Beaumont Road, Karachi - 75530. Telephone Numbers : +9221-35680045-54
UAN : +92 21-111-019-019, Fax : 021-35680373
E-mail : investors@isl.com.pk
Lahore Office
Chinoy House, 6 Bank Square, Lahore - 54000. Telephone Nos: +92 42-37229752-55, UAN: +92 42-111-019-019
Fax: +92 42-37249755
E-Mail: lahore@isl.com.pk
Islamabad Office
Office No.303-A, 3rd Floor, Evacuee Trust Complex, Sector F-5/1, Sir Agha Khan Road, Islamabad.
Telephone Nos: +92 51-2823041 - 2 Fax: 051-28230413
Multan Office
Office No. 708-A, "The United Mall", Plot No. 74, Abdali Road, Multan.
Telephone Nos: +92 61-4570571
Factory
399 - 404, Rehri Road, Landhi, Karachi.
Telephone Nos: +92 21-35013104 - 5 Fax : 021-35013108
E-mail: info@isl.com.pk
Service Center
Plot# LE-73-79,102-103,112-118,125-129 Survey # Nc.98, Near Arabian Country Club, National Industrial Park, Bin Qasim, Karachi. Telephone Nos: +92 21-34724184
Website
www.isl.com.pk
Bankers
Allied Bank Limited
Askari Bank Limited
Bank Al Habib Limited
Bank Alfalah Limited
BankIslami Pakistan Limited
Dubai Islamic Bank Pakistan Limited
Faysal Bank Limited
Habib Bank Limited
Habib Metropolitian Bank Limited
Industrial and Commercial Bank of China Limited
MCB Bank Limited
MCB Islamic Bank Limited
Meezan Bank Limited
National Bank of Pakistan
Samba Bank Limited
Standard Chartered Bank (Pakistan) Limited
United Bank Limited
01
CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2022
DIRECTORS' REPORT
FOR THE PERIOD ENDED DECEMBER 31, 2022
The Directors of your Company are pleased to present the financial statements for the half year ended December 31, 2022.
Pakistan is currently facing an economic crisis, characterized by a high fiscal deficit, significant trade and current account imbalances, and high inflation. The country has also struggled with a shortage of foreign currency, which has made it difficult to pay for imports and service its debt. The IMF program has stalled and other international financing being unavailable, the country's foreign exchange reserves are on a continuous decline. The State Bank of Pakistan has placed strict restrictions over import payments, albeit unannounced. LC opening has nearly become impossible for import of raw materials. As a result, large-scale manufacturing in the country has declined by 5.5%. Consequently the demand for your Company's products has also dropped sharply.
Inflation has remained stubbornly high at 25% resulting in the State Bank of Pakistan's policy rate increasing to 17%. It is expected that the policy rate will continue to increase. While the official value of PKR has been maintained between Rs. 225 to 230 against USD, the gap between interbank and open market rate has been severely hurting the already precarious foreign currency reserves and diverting remittances from banking channels to the grey market.
Global steel prices declined sharply near the start of the financial year to USD 570 /MT after having reached an all-time high of USD 1,100 /MT last year. However, thereafter steel prices have seen a recovery on the back of production cuts by major mills across the world and ease of COVID related restrictions in China.
In the wake of such uncertain economic conditions your Company has been focusing on vigilant inventory management in line with the weak market demand while undertaking certain key productivity measures to counter the economic headwinds. Some of the measures taken include shutdowns during peak hours to save energy costs, lowering the borrowing levels to save on interest costs and restricting capital spending to key initiatives only.
Gas availability has remained a challenge in winter and has had an adverse impact in meeting the Company's energy requirements. It is expected that gas supply will improve in the coming months.
Rigorous efforts are being employed in working capital management to reduce leverage. As a result, the Company's net cash generated from operating activities was Rs. 9 Bn in the half year.
In the backdrop of the above stated weak economic conditions, the Company's revenue dropped by 22% from Rs. 43 Bn (SPLY) to Rs. 34 Bn for the half year ended 31 Dec 2022. High-interest rates with extreme volatility in exchange rates increased the finance costs and exchange loss by more than 3 times. The Company posted a profit after tax of Rs. 61 million and EPS of Rs. 0.14 compared to PAT of Rs. 4,224 million and EPS of Rs. 9.71 in the same period last year. In these uncertain times, your Company is proactively working towards meeting the challenges of this tough economic environment.
We thank the management and staff for their untiring efforts towards the Company's goals. The Board would also like to express its appreciation to our valued customers, dealers, vendors, banks and all other stakeholders for their cooperation and trust.
We pray to Allah for the continued success of your Company.
Mr. Yousuf H. Mirza | Mr. Kamal A. Chinoy |
Chief Executive Officer | Chairman |
Karachi : January 27, 2023 |
02
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International Steels Ltd. published this content on 22 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 February 2023 05:26:14 UTC.