Security Papers : Transmission of Quarterly Report for the Period Ended September 30, 2022 of Security Papers Limited

CONTENTS

Company Information	02
Directors' Report	03
Condensed Interim Statement of Financial Position	04
Condensed Interim Statement of Profit or Loss (Un-audited)	05
Condensed Interim Statement of Other Comprehensive Income (Un-audited)	06
Condensed Interim Statement of Changes in Equity (Un-audited)	07
Condensed Interim Statement of Cash Flows (Un-audited)	08
Notes to the Condensed Interim Financial Information (Un-audited)	09
Attention Shareholders	15

QUARTERLY REPORT

COMPANY INFORMATION

BOARD OF DIRECTORS
Chairman
Mr. Mohammad Aftab Manzoor	-	Non-executive
Directors
Mr. Muhammad Sualeh Ahmad Faruqui	-	Non-executive - Independent
Mr. Jamal Nasim	-	Non-executive
Dr. Abolghassem Jamshidi	-	Non-executive
Ms. Figen Caliskan	-	Non-executive
Mrs. Uzma Aijaz	-	Non-executive - Independent
Hafiz Mohammad Yousaf	-	Non-executive
Mr. Shafqaat Ahmed	-	Non-executive
Mr. Munir Ahmed	-	Non-executive - Independent
Chief Executive Officer
Mr. Imran Qureshi	-	Executive
BOARD AUDIT COMMITTEE
Mrs. Uzma Aijaz	-	Chairperson
Mr. Jamal Nasim	-	Member
Dr. Abolghassem Jamshidi	-	Member
Hafiz Mohammad Yousaf	-	Member
Mr. Shafqaat Ahmed	-	Member
Mr. Rizwan Ul Haq Khan	-	Secretary
BOARD HUMAN RESOURCE AND REMUNERATION COMMITTEE
Mrs. Uzma Aijaz	-	Chairperson
Mr. Mohammad Aftab Manzoor	-	Member
Mr. Jamal Nasim	-	Member
Mr. Munir Ahmed	-	Member
Mr. Rizwan Ul Haq Khan	-	Secretary
CHIEF FINANCIAL OFFICER	-	Mr. Babar Aijaz
COMPANY SECRETARY	-	Mr. Rizwan Ul Haq Khan
BANKERS
Bank Al Habib Limited
National Bank of Pakistan
Meezan Bank Limited
Habib Metropolitan Bank Limited
Bank Alfalah Limited
Khushhali Microfinance Bank Limited
MIB Bank Limited
AUDITORS	TAX CONSULTANTS
KPMG Taseer Hadi & Co.	A. F. Ferguson & Co.
Chartered Accountants	Chartered Accountants
LEGAL ADVISORS
Mohsin Tayebaly & Co.
Advocates & Legal Consultants
REGISTERED OFFICE	SHARE REGISTRARS
Jinnah Avenue, Malir Halt,	FAMCO Associates (Pvt.) Limited
Karachi - 75100	8-F, Near Hotel Faran, Nursery,
Tel	: ([phone]	Block-6, P.E.C.H.S, Shahra-e-Faisal,
Fax	: ([phone]	Karachi.
E-mail :[e-mail]	Tel: [phone]
		Fax: [phone]
		E-mail: [e-mail]
FACTORY	WEB SITE
Jinnah Avenue, Malir Halt,	http://www.security-papers.com
Karachi - 75100
Tel	: ([phone]
Fax	: ([phone]

QUARTERLY REPORT

02

DIRECTORS' REPORT

The Directors are pleased to present the un-audited financial information for the three months period ended September 30, 2022.

BUSINESS AND PERFORMANCE REVIEW

The Company produced 976 tons of finished paper during the period under review as against 1090 tons in the corresponding period of preceding year owing to lower demand for Banknote Paper.

Net sales were reported at Rs 1,183 million during the three months period under review as against Rs 1,184 million in the corresponding period of preceding year. The Company achieved sales volume of 961 tons as against 986 tons during the corresponding period of preceding year.

Gross profit decreased to Rs 281 million as against Rs 418 million in the corresponding period of preceding year owing to rising input costs. The profit before and after taxation during the period under review stood at Rs 313 million and Rs 210 million as against Rs 332 million and Rs 228 million respectively during the corresponding period of preceding year. It includes other income of Rs 162 million earned during the period under review as against Rs 67 million in the corresponding period of preceding year.

FUTURE PROSPECTS

The country is facing burgeoning economic challenges, further aggravated by floods and elevated political noise coupled with increase in commodity and utility prices kept exchange rate under pressure. Globally, owing to the Russia-Ukraine war, significant uncertainties prevailed around the outlook for international commodity prices and global financial conditions. As a result, the input cost is on a rising trend. During this period the Company has started delivery of Ballot paper which is a step towards Company's commitment to enhance its product and customer base. Your Company remains cognizant of the present business challenges and is continually assessing its strategy to meet the customers' demand while improving productivity through innovation, efficiency and effective cost containment initiatives.

ACKNOWLEDGEMENT

The directors of your Company take this opportunity to express their gratitude to all the stakeholders for their encouragement and support.

On behalf of the Board of Directors

IMRAN QURESHI	JAMAL NASIM
Chief Executive Officer	Director
Karachi
Dated: October 25, 2022
QUARTERLY REPORT	03

Condensed Interim Statement of Financial Position

As at 30 September 2022

					30 September				30 June
		2022		2022
					Un-audited				Audited
ASSETS	Note				------ (Rupees in '000) ------
Non-current assets
Property, plant and equipment	5	1,759,269		1,785,402
Right-of-use assets	5.3	23,416		22,194
Intangible assets		15,846		15,855
Long-term investment	6	2,868,997		1,180,955
Lease deposits		5,831		4,936
			4,673,359			3,009,342
Current assets
Stores, spares and loose tools		243,507		214,612
Stock-in-trade		893,526		560,764
Trade debts - considered good		937,974		837,489
Loan, advances, deposits, prepayments and other receivables		55,130		119,887
Interest accrued		57,555		30,457
Short investments	7	1,774,448		3,377,234
Cash and bank balances		570,774		758,182
Total assets		4,532,914		5,898,625
		9,206,273			8,907,967
EQUITY AND LIABILITIES
Share capital and reserves
Authorised share capital
70,000,000 (30 June 2022: 70,000,000) ordinary shares of Rs 10 each	700,000		700,000
Issued, subscribed and paid-up capital
59,255,985 (30 June 2022:59,255,985) ordinary shares of Rs. 10 each	592,559		592,559
Revenue reserves
General reserves		5,951,267		5,594,837
Unappropriated profit		210,949		950,207
Total shareholders' equity			6,754,775			7,137,603
Non-current liabilities
Lease Liabilities				16,578				16,445
Staff retirement benefits				42,987				34,180
Deferred taxation - net				153,473				156,652
Current liabilities		213,038		207,277
Trade and other payables			1,168,820			1,074,998
Accrued mark-up			152			108
Unclaimed dividend			4,086			4,134
Unpaid dividend			996,907			404,348
Current portion of lease liabilities			7,166			7,753
Taxation - net			61,329			71,746
Total liabilities		2,238,460		1,563,087
		2,451,498			1,770,364
Contingencies and commitments	8
TOTAL EQUITY AND LIABILITIES
	9,206,273		8,907,967

The annexed notes 1 to 13 form an integral part of this condensed financial information.

IMRAN QURESHI	BABAR AIJAZ	JAMAL NASIM
Chief Executive Officer	Chief Financial Officer	Director

QUARTERLY REPORT

04