Yours truly sd AF Ferguson Co Chartered Accountants Management Note As at

Yours truly sd af ferguson co chartered accountants

This preview shows page 59 - 65 out of 94 pages.

Yours truly -sd- A.F. Ferguson & Co. Chartered Accountants Management Note: As at September 30, 2013, the following events have taken place loan restructuring agreements with commercial banks have been signed restructuring terms with IFC have been agreed in principle and is pending for signing, and legal proceedings mentioned above in Section 6.1 - 4.1 (a) (iv) and (v) (i) have been withdrawn
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Page 60 of 94 6.2 SHARE BREAK-UP VALUE CERTIFICATE The Board of Directors August 30, 2013 Engro Fertilizers Limited D 814 7 th & 8 th Floors, The Harbour Front Building Plot No. HC-3, Block 4 Scheme No.5, Clifton Karachi Dear Sirs AUDITORS’ CERTIFICATE ON THE BREAK -UP VALUE OF SHARES Based on audited financial statements of Engro Fertilizers Limited for the half year ended June 30, 2013, the break-up value of an ordinary share of Rs. 10 each of the Company is Rs. 15.40 per share, as calculated below: Rupees in thousand Equity Issued, subscribed and paid-up capital 12,228,000 Share premium 11,144 Hedging reserve Remeasurement of post employment benefits (222,600) 2,050 Unappropriated profit 6,808,120 Total Equity 18,826,714 Number of ordinary shares in issue (in thousands) 1,222,800 Rupees Break-up value per share 15.40 Yours truly -sd- A.F. Ferguson & Co. Chartered Accountants
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Page 61 of 94 MANAGEMENT NOTE: The revised break-up value of the Company on the basis of post IPO paid up capital as at 30 June 2013, is given below: Rupees in thousand Equity Issued, subscribed and paid-up capital 12,978,000 Share premium 1,379,894 Hedging reserve Remeasurement of post employment benefits (222,600) 2,050 Unappropriated profit 6,808,120 Total Equity 20,945,464 Number of ordinary shares in issue (in thousands) 1,297,800 Rupees Break-up value per share 16.14
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Page 62 of 94 6.3 AUDITORS CERTIFICATE ON ISSUED, SUBSCRIBED, AND PAID UP CAPITAL OF THE COMPANY
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Page 63 of 94 6.4 SUMMARY FINANCIAL HIGHLIGHTS INCOME STATEMENT ------------------ PKR Million ------------------ Jun 13- Half Year Dec ‘12 Dec ‘11 Dec ‘10 Sales 20,519 30,627 31,353 19,018 Gross Profit 8,483 9,861 16,733 8,910 Operating Expenses 1,785 3,083 2,795 2,294 Financial Charges 4,525 10,703 7,644 1,351 EBITDA 9,172 11,540 17,355 7,238 Profit after Tax 1,425 (2,935) 4,588 3,730 BALANCE SHEET ------------------ PKR Million ------------------ Jun ‘13 Half Year Dec ‘12 Dec ‘11 Dec ‘10 Equity 18,827 15,798 18,617 13,639 Non-Current Assets 80,941 83,123 86,540 84,631 Current Assets 15,517 14,382 14,337 13,422 Total Assets 96,458 97,505 100,877 98,053 Current Liabilities 16,433 26,248 17,689 16,209 Non-Current Liabilities 61,198 55,459 64,571 68,205 Total Liabilities 77,631 81,707 82,260 84,414 FINANCIAL RATIOS Jun ‘13 Half Year Dec ‘12 Dec ‘11 Dec ‘10 Gross Margin 41% 32% 53% 47% EBITDA Margin 45% 38% 55% 38% Net Margin 7% -10% 15% 20% EPS / (LPS) 1.25 (2.74) 4.28 3.48 Current Ratio* 1.74 1.27 1.87 1.78 Debt to Equity ratio 0.76 0.78 0.78 0.83 Return on Assets 1.47% N/A ** 4.61% 3.80 % Return on Equity 7.57% N/A ** 24.64% 27.35% Breakup Value per share 15.40 14.73 17.35 12.71 *Current Liabilities exclude current maturity of long term loans ** Negative EPS, thus return on Asset/Equity is not meaningful.
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Page 64 of 94 PART 7 7 MANAGEMENT OF THE COMPANY 7.1 POLICY MATTERS All policy-related matters are managed by the Board of Directors, headed by the Chairman of the Board. At present, the Board comprises of 8 Directors including the CEO. The Board of Directors comprises of one (1) executive and seven (7) non-executive directors, who collectively share responsibility of ensuring competent management of affairs of the organization.
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