AGRIAUTO INDUSTRIES LIMITED

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT MARCH 31, 2019

March 31, June 30,

Note 2019 2018
(Un-audited) (Audited)
----------- (Rupees in ‘000) -----------
ASSETS

NON-CURRENT ASSETS
Property, plant and equipment 6 2,021,717 1,584,818
Intangible asset 9,780 14,657
Long-term deposits 13,038 6,234
2,044,535 1,605,709
CURRENT ASSETS
Stores, spares and loose tools 103,373 95,788
Stock-in-trade 1,309,828 1,456,346
Trade debts 938,414 574,251
Advances, deposits, prepayments and other receivables 7 379,832 51,238
Accrued profit 2,871 1,318
Short-term investments 8 356,454 743,488
Sales tax receivable 21,909 36,675
Taxation – net 180,612 324,202
Cash and bank balances 639,300 425,961
3,932,593 3,709,267

TOTAL ASSETS 5,977,128 5,314,976

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorised capital
40,000,000 (June 30, 2018: 40,000,000) ordinary
shares of Rs. 5/- each 200,000 200,000

Issued, subscribed and paid-up capital 28,800,000 (June 30, 2018:

144,000 144,000
28,800,000) ordinary shares of Rs. 5/- each
Reserves 5,019,090 4,556,676
5,163,090 4,700,676
NON-CURRENT LIABILITY
Deferred taxation 68,217 76,011

CURRENT LIABILITIES
Trade and other payables 714,117 512,269
Unpaid dividend 8,310 2,516
Unclaimed dividend 23,394 23,504
Sales tax payable - -
745,821 538,289
COMMITMENTS 9

TOTAL EQUITY AND LIABILITIES 5,977,128 5,314,976

The annexed notes from 1 to 13 form an integral part of these consolidated condensed interim financial statements.
 AGRIAUTO INDUSTRIES LIMITED
CONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS
FOR THE NINE MONTHS & QUARTER MARCH 31, 2019
(UN-AUDITED)

Nine months ended Quarter ended

March 31, March 31, March 31, March 31,
2019 2018 2019 2018
(Rupees in ‘000) (Rupees in ‘000)

Turnover – net 7,651,565 6,150,929 2,714,856 2,159,016

Cost of sales (6,355,903) (4,909,694) (2,241,141) (1,727,496)

Gross profit 1,295,662 1,241,235 473,715 431,520

Distribution costs (104,046) (90,909) (35,827) (32,565)

Administrative expenses (178,774) (170,563) (61,740) (55,213)
(282,820) (261,472) (97,567) (87,778)
Operating profit 1,012,842 979,763 376,148 343,742

Other expenses (81,260) (78,056) (28,408) (25,095)

Other income 48,954 50,041 18,551 19,401
Finance costs (426) (351) (123) (144)
(32,732) (28,366) (9,980) (5,838)
Profit before taxation 980,110 951,397 366,168 337,904

Taxation (186,500) (187,970) (72,444) (66,694)

Profit after taxation 793,610 763,427 293,724 271,210

---------------------------------- (Rupees) -------------------------------------

Earnings per share - basic and diluted 27.56 26.51 10.20 9.42

The annexed notes from 1 to 13 form an integral part of these consolidated condensed interim financial statements.
 AGRIAUTO INDUSTRIES LIMITED
CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE NINE MONTHS & QUARTER MARCH 31, 2019
(UN-AUDITED)

Nine months ended Quarter ended

March 31, March 31, March 31, March 31,
2019 2018 2019 2018
(Rupees in ‘000) (Rupees in ‘000)

Profit after taxation for the period 793,610 763,427 293,724 271,210

Other comprehensive income - - - -

for the period

Total comprehensive income

for the period 793,610 763,427 293,724 271,210

The annexed notes from 1 to 13 form an integral part of these consolidated condensed interim financial statements.
 AGRIAUTO INDUSTRIES LIMITED
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED MARCH 31, 2019
(UN-AUDITED)

Nine months ended

March 31, March 31,
2019 2018
(Rs. in ‘000)
CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation 980,110 951,397

Adjustments for:
Depreciation and amortization 142,617 150,155
Finance costs 426 351
Reversal for impairment of trade debts - (39)
Gain on disposal of property, plant and equipment (125) (2,923)
Profit on term deposit receipts (24,932) (32,559)
Profit on bank balances (16,641) (8,454)
1,081,455 1,057,928

Increase in current assets (534,969) (302,270)

Increase in current liabilities 199,675 150,988
Cash generated from operations 746,161 906,646

Finance costs paid (426) (351)

Income tax paid (50,705) (45,628)
(10) -
Net cash generated from operating activities 695,020 860,667

CASH FLOWS FROM INVESTING ACTIVITIES

Fixed capital expenditure (586,347) (80,945)
Proceeds from disposal of property, plant and equipment 5,039 11,225
Short term investment (22,000) -
Profit received on term deposit receipts 25,325 29,560
Profit received on bank balances 14,451 9,851
Net cash used in investing activities (563,532) (30,309)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid (325,516) (323,200)
Net decrease in cash and cash equivalents (194,028) 507,158

Cash and cash equivalents at the beginning of the period 1,165,328 1,037,261

Cash and cash equivalents at the end of the period 971,300 1,544,419

CASH AND CASH EQUIVALENTS

Cash and bank balances 639,300 458,143
Short-term investments 332,000 1,086,276
971,300 1,544,419

The annexed notes from 1 to 13 form an integral part of these consolidated condensed interim financial statements.
 AGRIAUTO INDUSTRIES LIMITED
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED MARCH 31, 2019
(UN-AUDITED)

Reserves
Capital reserve Revenue reserves

Issued,
Unapp-ropriated
subscribed and Share premium General Total Total equity
profit
paid-up capital

---------------------------------------- (Rupees in’000) ----------------------------------------

Balance as at July 01, 2017 144,000 12,598 3,075,000 840,565 3,928,163 4,072,163

Final dividend for the year ended June 30,

- - - (216,000) (216,000) (216,000)
2017 @ Rs.7.5 /- per share

Interim dividend for the year ended June 30,

- - - (115,200) (115,200) (115,200)
2018 @ Rs. 4.0 /- per share

Transfer to general reserve - - 580,000 (580,000) - -

Profit after taxation for the period - - - 763,427 763,427 763,427

Other comprehensive income - - - - - -
Total comprehensive income for the period - - - 763,427 763,427 763,427

Balance as at March 31, 2018 144,000 12,598 3,655,000 692,792 4,360,390 4,504,390

Balance as at July 01, 2018 144,000 12,598 3,655,000 889,082 4,556,680 4,700,680

Final dividend for the year ended June 30,

- - - (244,800) (244,800) (244,800)
2018 @ Rs.8.5 /- per share

Interim dividend for the year ended June 30,

- - - (86,400) (86,400) (86,400)
2019 @ Rs.3.0 /- per share

Transfer to general reserve - - 590,000 (590,000) - -

Profit after taxation for the period - - - 793,610 793,610 793,610

Other comprehensive income - - - - - -
Total comprehensive income for the period - - - 793,610 793,610 793,610

Balance as at March 31, 2019 144,000 12,598 4,245,000 761,492 5,019,090 5,163,090

The annexed notes from 1 to 13 form an integral part of these consolidated condensed interim financial statements.
 AGRIAUTO INDUSTRIES LIMITED
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED MARCH 31, 2019
(UN-AUDITED)

1 THE COMPANY AND ITS OPERATIONS

1.1 Agriauto Industries Limited (the Company) was incorporated in Pakistan on June 25, 1981 as a public limited company
and is listed on Pakistan Stock Exchange. The Holding Company is engaged in the manufacture and sale of
components for automotive vehicles, motor cycles and agricultural tractors. The registered office of the Holding
Company is situated at 5th Floor, House of Habib, Main Shahrah-e-Faisal, Karachi

1.2 The Group comprises of the Holding Company and Agriauto Stamping Company (Private) Limited (the Subsidiary
Company). The Subsidiary Company was incorporated in Pakistan on January 20, 2012 as a private limited company.
The Subsidiary Company is engaged in stamping of sheet metal parts, dies, fixtures primarily for the automotive industry
and has commenced its commercial operations on 02 July, 2014. The registered office of the Subsidiary Company is
situated at 5th Floor, House of Habib, Main Shahrah-e-Faisal, Karachi.

2 STATEMENT OF COMPLIANCE
These consolidated condensed interim financial statements have been prepared in accordance with the accounting and
reporting standards as applicable in Pakistan for interim financial reporting which comprise of International Accounting
Standard (IAS) 34 - 'Interim Financial Reporting', issued by the International Accounting Standards Board (IASB) as
notified under the Companies Act, 2017 and provisions of and directives issued under the Companies Act, 2017. Where
the provisions of and directives issued under the Companies Act, 2017 differ with the requirement of IAS 34, the
provisions of and directives issued under the Companies Act, 2017 have been followed.

3 BASIS OF PREPARATION
These consolidated condensed interim financial statements do not include all the information and disclosures required
in the annual financial statements and should be read in conjunction with the Company’s audited consolidated financial
statements for the year ended June 30, 2018.

4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies and methods of computation adopted in the preparation of these consolidated condensed
interim financial statements are consistent with those followed in the preparation of the Company’s annual
unconsolidated financial statements for the year ended June 30, 2018 except for the adoption of new standards,
amendments and interpretation of International Financial Reporting Standards (IFRSs) as disclosed in note 5

5 NEW STANDARDS, AMMENDMENTS AND INTERPRETATIONS OF IFRSs

Effective 1 July 2018, the Company has adopted IFRS 15 “Revenue from Contracts with Customers” (replacing IAS 18
“Revenue”, IAS 11 “Construction Contracts” and related interpretations) and IFRS 9 “Financial Instruments (replacing
IAS 39 “Financial Instruments: Recognition and Measurement”. The effects of adoption of these standards are explained
below;

5.1 IFRS 15 Revenue from Contracts with Customers

According to IFRS 15, revenue is recognized to depict the transfer of promised goods or services to a customer in an
amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or
services. Revenue is recognized when, or as, the customer obtains control of the goods or services. IFRS 15 also
includes guidance on the presentation of contract balances, that is, assets and liabilities arising from contracts with
customers, depending on the relationship between the entity's performance and the customer's payment.

The Company has applied IFRS 15 with initial application date of 1 July 2018 as notified by the Securities and Exchange
Commission of Pakistan (SECP). The first-time application of IFRS 15 by the Company has not had any significant
effects with regard to the amount of revenue recognised and when it is recognised. Hence, no cumulative adjustment
amounts have been recognised to adjust the opening equity as at 1 July 2018. Accordingly, the information presented
for previous years has not been restated, as previously reported, under IAS 18 and related interpretations.

The management of the Company has assessed that the Company is in compliance with the requirements of IFRS 15.

5.2 IFRS 9 Financial Instruments

IFRS 9 sets out requirements for recognising and measuring financial assets, financial liabilities and some contracts to
buy or sell non-financial items. The details of new significant accounting policies and the nature and effect of the
changes to previous accounting policies are set out below:

5.2.1 Effect of adopting IFRS 9 on the classification of financial assets

Financial asset Original category New category under IFRS 9
under IAS 39
Trade debts Loans and receivables Amortised cost
Deposits and other receivables Loans and receivables Amortised cost
Short-term investments Held to maturity Amortised cost
Cash and bank balances Loans and receivables Amortised cost
Long-term deposits Loans and receivables Amortised cost
5.2.2 Classification and measurement of financial assets and financial liabilities
IFRS 9 largely retains the existing requirements in IAS 39 for the classification and measurement of financial liabilities.
However, it eliminates the previous IAS 39 categories for financial assets of held to maturity, loans and receivables and
available for sale.
The adoption of IFRS 9 has not had a significant effect on the Company’s accounting policies related to financial
liabilities. The impact of IFRS 9 on the classification and measurement of financial assets is set out below:

a) Initial recognition and measurement

Under IFRS 9, on initial recognition, a financial asset is classified as measured at: amortised cost; Fair Value through
Other Comprehensive Income (FVOCI) – debt investment; FVOCI – equity investment; or Fair Value through Profit or
Loss (FVTPL).
The classification of financial assets under IFRS 9 is generally based on the business model in which a financial asset
is managed and its contractual cash flow characteristics.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at
FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding.

b) Subsequent measurement
The following accounting policies apply to the subsequent measurement of financial assets.
Financial assets at amortised cost - These assets are subsequently measured at amortised cost using the effective
interest method. The amortised cost is reduced by impairment losses, if any.
Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on
derecognition is recognised in profit or loss.

5.2.3 Impairment of financial assets

IFRS 9 replaces the ‘incurred loss’ model in IAS 39 with an ‘expected credit loss’ (ECL) model. The new impairment
model applies to financial assets measured at amortised cost, contract assets and debt investments at FVOCI, but not
to investments in equity instruments.
At each reporting date, the Company assesses whether financial assets are credit-impaired. A financial asset is ‘credit-
impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial
asset have occurred. Loss allowances for financial assets measured at amortised cost are deducted from the gross
carrying amount of the respective asset.

The Company uses the standard’s simplified approach and calculates ECL based on life time ECL on its financial
assets. For this purpose, the management conducts an exercise to assess the impairment of its financial assets using
historical data and forward looking information.
Based on such exercise, the Company has concluded that it is in compliance with the requirements of the new
accounting standard including the assessment of impairment on its financial assets using expected credit loss model.

March 31, June 30,

2019 2018
Note ------ (Rupees in ‘000) ------
(Un-audited) (Audited)
6 PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets 6.1 & 6.2 1,494,084 1,481,752
Capital work-in-progress 527,633 103,066
2,021,717 1,584,818
6.1 The following additions and disposals were made in the operating fixed assets during the period:

Additions at cost Disposal at NBV

Nine months ended Nine months ended
March 31, March 31,
2019 2018 2019 2018
(Un-audited) (Un-audited)
-------- (Rupees in ‘000) -------- -------- (Rupees in ‘000) --------
Owned
Plant and machinery 127,751 21,488 675 3,722
Vehicles 25,020 20,626 3,509 4,496
Furniture and fixtures 1,928 2,147 560 -
Computers 1,770 1,640 151 84
Office equipment 1,536 161 22 -
158,005 46,062 4,917 8,302
6.2 Depreciation charge for the period amounted to Rs. 140,758 (March 31, 2018: Rs. 149,038).
 AGRIAUTO INDUSTRIES LIMITED
NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED MARCH 31, 2019
(UN-AUDITED)

7 Includes an amount of Rs. 353.296 million (June 30, 2018: 40.594 million) deposited with commercial banks in respect of cash margin
requirement on import.

March 31, June 30,

2019 2018
(Un-audited) (Audited)
Note -------- (Rupees in ‘000) --------
8 SHORT TERM INVESTMENTS
Financial assets at amortised cost
Term deposit receipts 8.1 354,000 598,000
Treasury bills - 98,692
Accrued profit thereon 2,454 3,261
356,454 699,953
8.1 Represents one to three months term deposit receipts with a commercial bank under conventional banking relationship carrying profit rate
ranging from of 4.75% to 9.75% (March 31, 2018: 4.05% to 6.00%) per annum having maturity date of 17July 2019.

9 COMMITMENTS
There is no material change in the status of commitments as reported in the annual financial statements for the year ended June 30, 2018
other than described below:

9.1 Commitments in respect of outstanding letters of credit for raw material amounting to Rs. 676.631 million (June 30, 2018: Rs. 967.347
million).

9.2 Commitments in respect of capital expenditure amounting to Rs. 21.139 million (June 30, 2018: Rs. 287.965 million).

10 TRANSACTIONS WITH RELATED PARTIES

Related parties of the Company of comprises the subsidiary company, companies with common directorship, retirement funds, directors and
key management personnel. Balance due from / to the related parties have been disclosed in respective notes to these consolidated
condensed interim financial statements. Detail of transactions with related parties during the period, other than disclosed elsewhere in these
consolidated condensed interim financial statements, are as follows:

Name of related party and Nature of transactions March 31, March 31,
relationship with the Company 2019 2018
(Un-audited) (Un-audited)
Subsidiary (wholly owned) -------- (Rupees in ‘000) --------
Retirement benefit funds
Provident fund Contribution 8,887 7,286
*
Key management personnel Remuneration and other benefits 26,275 19,240
Fee for attending board meetings 1,275 825
Common directorship Services received 5,899 4,874
* The amount has been restated to include the remuneration and other benefits of Chief Financial Officer and Company Secretary in
compliance with S.R.O 1194(1)/2018, dated October 02, 2018.

11 NON-ADJUSTING EVENT AFTER THE BALANCE SHEET DATE

The Board of Directors of the subsidiary Company has approved interim cash dividend of Rs. 1.0 /- per share for the year ended June 30,
2019 in its meeting held on April 24, 2019.

These consolidated condensed interim financial statements does not include the effect of the said interim dividend.

12 DATE OF AUTHORISATION FOR ISSUE

These consolidated condensed interim financial statements were authorized for issue on April 24, 2019 by the Board of Directors of the
Company.

13 GENERAL
Figures have been rounded off to the nearest rupees in thousands.