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C
ontents

03 Company Profile 09 Condensed Interim Statement of Changes in Equity

04 Directors' Review 10 Condensed Interim Statement of Cash Flow

05 Auditors' Review Report 11 Notes to the Condensed Interim Financial Statements

06 Condensed Interim Statement of Financial Position

08 Condensed Interim Statement of Profit or Loss

Account and Other Comprehensive Income

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Company Profile

Board of Directors Legal Advisors

Mr. Ali Kuli Khan Khattak Chairman S. Abid Sherazi & Co.
Mr. Ahmad Kuli Khan Khattak CEO/Director Ahmed and Qazi
Mr. Muhammad Kuli Khan Khattak Director Hassan & Hassan (Advocates)
Mrs. Shahnaz Sajjad Ahmad Director
Maj. (R) Muhammad Zia Director Share Registrar
Mr. Sohail Hameed Ind. Director CDC Share Registrar Services Limited
Mr. Shahid Kamal Khan Ind. Director CDC House, 99-B, Block ‘B’,
S.M.C.H.S. Main Sharah-e-Faisal
Audit Committee Karachi-74400
Mr. Sohail Hameed Chairman
Maj. (R) Muhammad Zia Member Bankers
Mr. Shahid Kamal Khan Member National Bank of Pakistan
Mr. Shahnawaz Damji, ACA Secretary Al-Baraka Bank (Pakistan) Ltd.
JS Bank Ltd.
Human Resource & Faysal Bank Ltd.
Remuneration Committee The Bank of Punjab
Mr. Shahid Kamal Khan Chairman MCB Islamic
Mr. Ahmad Kuli Khan Khattak Member Bank Alfalah Ltd.
Maj. (R) Muhammad Zia Member Bank Islami Pakistan Ltd.
Mr. Sohail Hameed Member Bank Al Habib Ltd.
Mr. Shahrukh Asghar Secretary Samba Bank Limited
Habib Metropolitan Bank Limited
Chief Financial Officer
Mr. Muhammad Aamir, FCA Registered Office
F-3, Hub Chowki Road, S.I.T.E.
Company Secretary Post Box No. 2706, Karachi - 75730
Mr. Talha Ahmed Zaidi, ACA
Website: www.gil.com.pk
Auditors Email: [email protected]
M/s. ShineWing Hameed Chaudhri & Co.
Chartered Accountants
5th Floor, Karachi Chambers
Hasrat Mohani Road, Karachi

3 2023
Half Yearly Report
DIRECTORS’ REVIEW

The Directors of your Company take pleasure to present the unaudited condensed interim
financial statements for the half year ended December 31, 2023.

Market Share and Company’s Performance

Despite facing an unprecedented political situation and subsequent economic challenges, the
Company has demonstrated resilience by maintaining its 1st position in the overall market during
the half-year ended December 31, 2023. Despite a general decline of 50% in the truck and bus
market, the Company's sales units have only decreased by 48%, and according to information
from the Pakistan Automotive Manufacturers Association (PAMA), the Company, still holds market
share of approximately 45%. This showcases the Company's ability to navigate difficult
circumstances and retain a strong presence in the market.

The financial results for the period ended are as follows:

Half Year Ended 31 December

2023 2022
----------Rupees in 000---------
Sales 5,007,835 7,949,851
Gross profit 813,937 1,068,159
Profit from operations 304,889 548,816
Profit before taxation 5,055 195,268
(Loss) / Profit after taxation (102,862) 105,609
(Loss) / Earnings per share - basic and diluted (Rupees) (2.41) 2.48

Operating results

Due to prevailing political and economic uncertainties, overall industry is facing operational and
financial issues. Despite tough market conditions, the Company has managed to post net
revenues of Rs. 5.007 billion during the half year ended December 31, 2023 as compared to net
revenues of Rs. 7.9 billion during comparative period of last year with gross profit of Rs. 813.9 million
during half year ended December 31,2023. Inflationary pressure in operational and finance costs
resulted in Rs. 5 million as profit before tax however, after taxation of Rs. 107.9 million, the loss after
tax is being reported as Rs.102.8 million.

Future outlook

The business sector in Pakistan is anticipated to experience a gradual return to stability following
the general elections. Confidence-building initiatives by the new government, coupled with the
sustained implementation of growth-oriented policies, are poised to enhance trust within the
business community. Consequently, the Company anticipates navigating challenges smoothly
under a favorable business policy environment.

Acknowledgement

The board acknowledges the trust and confidence in the Company and its products by the
shareholders, valued suppliers, customers, dealers and bankers and appreciate their co-operation
and support during these unusual circumstances. The Board is pleased to record its appreciation
for the continued diligence and devotion of the employees. The Board takes this opportunity to
thank the Company’s principals Isuzu Motors Limited, Isuzu Motors Company (Thailand) Limited
and Isuzu Motors International Operations (Thailand) Company Limited and the trading house
Marubeni Corporation for their continued support and assistance.

By order of the Board

Ali Kuli Khan Khattak Ahmad Kuli Khan Khattak

Chairman Chief Executive Officer
Karachi 4

February 29, 2024

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GHANDHARA INDUSTRIES LIMITED
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
FOR THE HALF YEAR ENDED DECEMBER 31, 2023
1. LEGAL STATUS AND NATURE OF BUSINESS
Ghandhara Industries Limited (the Company) was incorporated on February 23, 1963. The
Company's shares are quoted on Pakistan Stock Exchange Limited. The principal activity is the
assembly, progressive manufacturing and sale of Isuzu trucks, buses and pick ups. The registered
office of the Company is situated at F-3, Hub Chowki Road, S.I.T.E, Karachi. The manufacturing
facilities of the Company are located at S.I.T.E., Karachi with regional offices at Lahore, Multan,
Rawalpindi and Peshawar.
Bibojee Services (Private) Limited, the ultimate Holding Company, held 16,686,794
(June 30, 2023: 16,686,794) ordinary shares of Rs.10 each of the Company.
2. BASIS OF PREPARATION
These condensed interim financial statements have been prepared in accordance with the
accounting and reporting standards as applicable in Pakistan for interim financial reporting. The
accounting and reporting standards applicable in Pakistan for interim financial reporting comprise
of:
- International Accounting Standard (IAS) 34, issued by the International Accounting Standards
Board (IASB) as notified under the Companies Act, 2017; and
- Provision of and directives issued under the Companies Act, 2017.
Where the provision of and directives issues under the Companies Act, 2017 differ with the
requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017
have been followed.
These condensed interim financial statements have been subjected to limited scope review by the
auditors, as required under section 237 of Companies Act, 2017 and should be read in conjunction
with audited annual financial statements of the Company for the year ended June 30, 2023.
3. CHANGES IN ACCOUNTING POLICIES
The accounting policies and the methods of computation adopted in the preparation of these
condensed interim financial statements are consistent with those applied in the preparation of
audited annual financial statements for the year ended June 30, 2023.
Actuarial valuations are carried out on annual basis. The last actuarial valuation was carried out on
June 30, 2023. The impact of re-measurement of post-employment benefit plans has not been
incorporated in the condensed interim financial statements.
4. ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of condensed interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets and liabilities, income and expenses. Actual results may differ from
these estimates.
In preparing this condensed interim financial statements, the judgements made by management in
applying the Company’s accounting policies and the key sources of estimation and uncertainty were
the same as those that applied to the audited annual financial statements for the year ended
June 30, 2023.
5. PROPERTY, PLANT AND EQUIPMENT (Un-audited) (Audited)
December 31, June 30,
2023 2023
Note -----(Rupees in '000)-----
Operating fixed assets 5.1 5,746,262 5,787,162
Right to use assets 85,911 71,431
Capital work-in-progress 221,410 175,275
6,053,583 6,033,868

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GHANDHARA INDUSTRIES LIMITED NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS

5.1 Operating fixed assets (Un-audited) (Audited)

December 31, June 30,
2023 2023
Note -----(Rupees in '000)-----
Net book value at beginning of the period / year 5,787,162 4,077,413
Additions during the period / year 5.2 6,842 116,398
Revaluation on fixed assets - 1,714,639
Disposals costing Rs.5,765 thousand
(June 30, 2023: Rs.49,850 thousand)
at net book value - (25,665)
Depreciation charge for the period / year (47,742) (95,623)
Net book value at end of the period / year 5,746,262 5,787,162
5.2 Additions to operating fixed assets,
including transfer from capital work-in-progress,
during the period / year
- Plant and machinery 1,552 46,203
- Permanent tools 698 836
- Furniture and fixture 1,965 40
- Motor vehicles / trucks 1,427 66,558
- Office machines & equipment - 533
- Computers 1,200 958
- Jigs and special tools - 1,270
6,842 116,398
6. TRADE DEBTS - Unsecured
Considered good
Ghandhara Automobiles Limited - a related party 1,516 1,765
Government and semi - government agencies 1,410,683 951,725
Others 435,339 336,408
1,847,538 1,289,898
Considered doubtful 131,471 86,783
1,979,009 1,376,681
Less: provision for expected credit losses 131,471 86,783
1,847,538 1,289,898
7. LOANS AND ADVANCES - Unsecured
Considered good
Current portion of long term loans to employee 1,598 1,686
Advances due from:
- employees 3,088 3,205
- suppliers, contractors and others 761,515 162,697
764,603 165,902
Considered doubtful
Advances to suppliers 7,694 7,497
Less: provision for doubtful advances (7,694) (7,497)
- -
766,201 167,588

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GHANDHARA INDUSTRIES LIMITED NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS

8. The Board of Directors of the Company in their meeting held on July 21, 2023, discussed that
keeping in view capital expenditure strategy of the Company, the Board, out of revenue reserves,
decided to transfer and classify a sum of Rs.1,500,000 thousand to separate capital reserve for
capital expenditure (un-available by way of dividend) to more accurately reflect the nature of these
reserves. This reserve represents funds set aside for the purchase of fixed assets in future.
9. Includes advances from customers aggregating Rs.4,232,789 thousand (June 30, 2023:
Rs.3,213,130 thousand) against sale of vehicles and carry no mark-up.
10. SHORT TERM BORROWINGS - Secured (Un-audited) (Audited)
December 31, June 30,
2023 2023
-----(Rupees in '000)-----
Finance against imported merchandise 290,905 364,808
Istisna 823,820 1,009,670
Murabaha 448,940 379,843
Running finance / musharakah 1,084,224 1,499,057
Short term loan 300,000 -
2,947,889 3,253,378
11. CONTINGENCIES AND COMMITMENTS
11.1 Contingencies
There has been no significant change in status of contingencies as disclosed in note 27.1 of the
audited annual financial statements of the Company for the year ended June 30, 2023.
11.2 Commitments (Un-audited) (Audited)
December 31, June 30,
2023 2023
-----(Rupees in '000)-----
Bank guarantees 3,493,660 4,780,157

Letters of credit 2,501,014 1,828,958

Commitments other than letters of credit 279,000 325,000

12. COST OF SALES (Un-audited)
Quarter ended Half year ended
December 31, December 31, December 31, December 31,
2023 2022 2023 2022
Note ----------------------- (Rupees in '000) -----------------------
Stocks at beginning
of the period 1,873,095 2,568,946 2,019,904 2,500,363
Cost of goods
manufactured 12.1 2,432,204 3,797,997 4,358,845 7,481,597
Trading goods - purchases 35,554 37,774 38,997 67,399

2,467,758 3,835,771 4,397,842 7,548,996

4,340,853 6,404,717 6,417,746 10,049,359

Stocks at end of
the period (2,223,848) (3,167,667) (2,223,848) (3,167,667)
2,117,005 3,237,050 4,193,898 6,881,692

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GHANDHARA INDUSTRIES LIMITED NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS

12.1 Cost of goods manufactured (Un-audited)

Quarter ended Half year ended
December 31, December 31, December 31, December 31,
2023 2022 2023 2022
----------------------- (Rupees in '000) -----------------------
Work in process at beginning
of the period 162,296 29,159 402,775 92,472
Raw materials and
components consumed 2,261,971 3,573,557 3,759,519 6,855,555
Direct labour and factory
overheads 167,320 333,942 355,934 672,231

2,429,291 3,907,499 4,115,453 7,527,786

2,591,587 3,936,658 4,518,228 7,620,258

Work in process at end
of the period (159,383) (138,661) (159,383) (138,661)

2,432,204 3,797,997 4,358,845 7,481,597

13. CASH GENERATED FROM / (USED IN) OPERATIONS (Un-audited)

Half year ended
December 31, December 31,
2023 2022
Note ----- (Rupees in '000) -----
Profit before taxation 5,055 195,268
Adjustment for non cash charges
and other items
Depreciation / amortization on:
- property, plant and equipment 47,742 46,185
- right to use assets 14,700 18,225
- intangible assets 396 396
Gain on disposal of operating fixed assets (11,008) (4,302)
Provision for compensated absences 2,038 415
Provision for doubtful debts 37,462 777
Amortization of gain on sale and lease back
of fixed asset (121) (218)
Provision for gratuity 18,345 12,201
Interest income (62,228) (49,545)
Finance cost 299,834 353,548

352,215 572,950
Working capital changes - net 13.1 92,052 (676,258)

444,267 (103,308)

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GHANDHARA INDUSTRIES LIMITED NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS

13.1 Working capital changes - net (Un-audited)

Half year ended
December 31, December 31,
2023 2022
----- (Rupees in '000) -----
(Increase) / decrease in current assets:
Stores (10,673) (17,561)
Stock-in-trade (124,036) (15,994)
Trade debts (595,102) (518,981)
Loans and advances (598,613) 1,857
Trade deposits and prepayments 521,498 (68,020)
Other receivables 15,740 6,672
Sales tax refundable / adjustable (63,852) 156,190

(855,038) (455,837)
Increase / (decrease) in trade and other payables 947,090 (220,421)

92,052 (676,258)

14. CASH AND CASH EQUIVALENTS

Cash and bank balances 95,342 365,744
Short term borrowings (2,947,889) (4,686,176)

(2,852,547) (4,320,432)

15. FINANCIAL RISK MANAGEMENT

The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk and market
risk (including currency risk, interest rate risk and price risk).
The condensed interim financial statements do not include all financial risk management
information and disclosures required in the audited annual financial statements and should be read
in conjunction with the audited annual financial statement of the Company as at
June 30, 2023.
There have been no changes in the risk management policies since the year end.

16. TRANSACTIONS WITH RELATED PARTIES

16.1 Significant transactions with related parties are as follows:
(Un-audited)
Name of related party and Nature of Half year ended
nature of relationship transactions December 31, December 31,
2023 2022
---- (Rupees in '000) ----

(a) Associated Companies

Ghandhara Tyre and Purchase of tyres 101,531 180,777
Rubber Company Ltd.
(Common Directorship)

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GHANDHARA INDUSTRIES LIMITED NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
(Un-audited)
Name of related party and Nature of Half year ended
nature of relationship transactions December 31, December 31,
2023 2022
---- (Rupees in '000) ----

Ghandhara Automobiles Litmited Assembly charges 184,509 435,429

(Common Directorship) Sale of parts 446 79
Rental income 2,338 2,126
Purchases of vehicles 14,710 11,208
Purchases of parts 50 -

Rehman Cotton Mills Ltd. Rent expense 1,200 900

(Common Directorship)

Gammon Pakistan Ltd. Rent expense 2,263 1,996

(Common Directorship)

Janana De Maluchho Textile Reimbursement of expenses 1,917 1,289

Mills Limited
(Common Directorship)

Ghandhara DF (Pvt.) Ltd. Rental income 2,338 2,126

(Common Directorship)

Universal Insurance Reimbursement of expenses 791 815

Company Ltd.
(Common Directorship)

Business Vision Advance - made for property 46,000 -

(Private) Limited
(Common Directorship)

(b) Other

Gratuity fund Contribution paid 44,911 -

Key management Remuneration and

personnel other benefits 95,573 83,993

(Un-audited) (Audited)
December 31, June 30,
16.2 Period / year end balances are as follows: 2023 2023
---- (Rupees in '000) ----
Receivables from related parties

Property, plant and equipment 171,000 125,000

Trade debts 1,516 1,765

Other receivables 6,733 22,474

Payable to related parties

Compensated absences 8,654 7,436

Trade and other payables 107,304 134,232

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 Address: F-3, Hub Chowki Road, S.I.T.E., Karachi-75730
UAN : 111-445-111, 9221 38709000, Toll Free: 0800-11190
Email: [email protected], [email protected] URL: www.gil.com.pk
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