Main Shahra-e-Faisal,
Karachi - Pakistan
Tel: +92-21-35657000
Fax: +92-21-35631523
E-mail: [email protected]
Web: www.rphcc.com
www.phdl.com.pk
Owners & Operators of
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Condensed Interim
Financial Information
Six Mont Period Ended
December 31, 201
hs
6
(Un-audited)
Vi s i o n / M i s s i o n
It is our cherished goal to be the Industry leader in hotel business byestablishing a complete, unique, distinctive and truly a five star deluxe
hotel complex.
To achieve the above objective and to provide the highest level ofsatisfaction to our valued customers, we are constantly engaged andworking with a missionary zeal to bring necessary improvements in ourexisting facilities and to excel in offering efficient and quality servicesto them.
We are also committed to maintain the highest level of Internationalhotel standards, which will add to the glory and prestige of the Country
and promote tourism.
1
Pakistan Hotels Developers Ltd.
2
COMPANY INFORMATION
Six-Months Ended December 2015
BOARD OF DIRECTORS:
MR. MANSOOR F.BAWEJA
Chairman
MR. MUZAFFAR F. BAWEJA
Chief Executive Officer
COMPANY SECRETARY:
MR. FAHAD IQBAL KHANNon-executive Directors:
MDirectorMR. MOHSIN BAWEJA
MR. ZAHEER BAWEJA
R. S.MAHMOOD BAWEJA
DirectorMR. MASROOR F. BAWEJADirector
DirectorMR. NAVED ALAM BAWEJADirector
Executive Directors:
MR. ZUBAIR BAWEJAManaging Director
Independent Director:
MR. M.A. MAJEED
HR & R COMMITTEE:
MR. MASROOR F. BAWEJAChairman
MR. ZAHEER BAWEJAMember
MR.NAVED ALAM BAWEJAMember
AUDIT COMMITTEE:
MR. M.A. MAJEEDChairman
MR. MOHSIN BAWEJA
Member
Member
BANKERS:
BANK AL-HABIB LTD.FAYSAL BANK LTD.HABIB BANK LTD.MCB BANK LTD.MEEZAN BANK LTD.NATIONAL BANK OF PAKISTANSILK BANK LTD.SUMMIT BANK LTD.
AUDITORS:
TANWIR ARIF & CO.Chartered Accountants
LEGAL ADVISOR:
SOFIA SAEED SHAH
REGISTERED OFFICE:
REGENT PLAZA HOTEL,MEZZANINE FLOOR195/2, SHAHRAH-E-FAISAL,KARACHI.
CHIEF FINANCIAL OFFICER:
SYED HASEEN ANWER
INDEPENDENT SHARE REGISTRAR
M/S. TECHNOLOGY TRADE (PVT) LTD.DAGIA HOUSE, 241-C, BLOCK-2,P.E.C.H.S.,OFF: SHAHRAH-E-QUAIDEEN,KARACHI
AL BARAKA BANK (PAKISTAN) LTD.
UNITED BANK LTD.
MR. S. MAHMOOD BAWEJA
COMPANY INFORMATION
Six-Months Ended December 2016
3
MANSOOR F. BAWEJAChairman
Karachi: February , 20123 7
CHAIRMAN’S REVIEW
The six month period under review witnessed a sad incident in the history of
your company. On 5th December 2016, a serious fire was broke out in late night.
In this tragic incident precious lives of 12 persons including one of the staff
member were lost beside several were injured. We want to convey heartiest
condolence to the families of all those who lost their lives. May Almighty Allah
Bless all the departed souls and place them in Jannatul Firdous, Ameen. We
also pray for the injured people for their early recovery.
It is to mention that management with the help of related authorities taken
immediate steps to handle the situation arisen as a result of fire. More then
four hundred guests and hotel staff were successfully evacuated. Every possible
efforts were made to provide medical facilities to injured persons. Besides
families of departed souls were also taken care of. However, the incident cause
severe damage to various service areas. As a result the business operations were
suspended and steps were initiated to revamp the facilities.
Despite the great shock and loss, we are presenting the financial statement well
in time which shows our determination and strength to overcome on the situation
and success in our rehabilitation work.
Alham-do-lillah we have started with soft opening banqueting & health club
facilities for valuable guests.
During the six months period under review, excellent performance shown by
the management and earned a pre-tax profit of Rs. 90 million although one month
revenue (December-2016) lost due to fire incident.
Mr. Naved Alam Baweja - Director on Board have given resignation from the
Directorship and his resignation accepted by the Board on 12th January, 2017
and Board appreciated the services rendered during his tenure.
On behalf of the Board of Directors, we thankful to our Shareholders, Clients,
Banks, Vendors for their support and stand with us in difficult time.
Pakistan Hotels Developers Ltd.
4
Six-Months Ended December 2016
65
MUZAFFAR F. BAWEJAChief Executive Officer
Karachi: February , 20123 7
DIRECTORS’ REPORT
The Board of Directors of Pakistan Hotels Developers Limited (PHDL) have
honor to present the performance of the Company for first half of the financial year
2016-17 along with review report of the statutory Auditor.
Pakistan Hotels Developers Ltd.
Despites of shut down of our operation in almost whole December 2016,gross profit increasedby 1.3%. However sales and services were decreased by 10%. Net profit before taxation wasalso increased by Rs. 3,553 thousand which was 4% increased as compared to correspondingperiod of previous year.
Directors have not declared any interim dividend for the quarter ended 31st December, 2016
The Board of Directors wish to express their appreciation to the entire team of Pakistan
Hotels Developers Limited, the esteemed guests, the valuable shareholders as well as all the
other stakeholders for their confidence and support in such difficult days.
Financial results of six months period are summarized as follows
For the six-months period ended31st December
Sales and services-net
Gross Profit
Profit before Taxation
Profit after Taxation
Earning Per Share (Rupees)
2016 2015(Rupees in '000)
321,494
175,491
89,969
64,904
3.61
The Directors regret to report that a serious fire broke out on 5th December, 2016
and damaged several areas of the Hotel. Most of the guest and employees were
safely evacuated. But twelve people including one of the Hotel employee had lost
their precious lives and several were injured. Hotel operation had been temporally
suspended but Management are confident that all the operations will resume shortly
We express profound grief and sorrow for the loss of valuable lives and extend
heartfelt condolence to bereaved families and sympathies to the injured.
355,842
173,136
86,416
60,344
3.35
For and on behalf of the Board of Directors
AUDITOR'S REVIEW REPORT TO THE MEMBERS
TANWIR ARIFTANWIR ARIF & CO.Chartered Accountants.
7
We conducted our review in accordance with International Standard onReview Engagements 2410, “Review of Interim Financial InformationPerformed by the Independent Auditors of the Entity”. A review of interimfinancial information consists of making inquiries, primarily of personsresponsible for financial and accounting matters, and applying analyticaland other review procedures. A review is substantially less in scope than anaudit conducted in accordance with International Standards on Auditingand consequently does not enable us to obtain assurance that we wouldbecome aware of all significant matters that might be identified in an audit.Accordingly, we do not express an audit opinion.
We have reviewed the accompanying condensed balance sheet ofas at December 31, 201 and the
related condensed interim profit and loss account, condensed interim statementof comprehensive income, condensed interim cash flow statement, condensedinterim statement of changes in equity and notes to the accounts for the six-months period then ended (here-in-after referred to as the “interim financialinformation”) Management is responsible for the preparation and presentationof this interim financial information in accordance with approved accountingstandards as applicable in Pakistan for interim financial reporting Ourresponsibility is to express a conclusion on this interim financial informationbased on our review. The figures of the condensed statement of comprehensiveincome for the quarters ended December 31, 201 and quarter ended December31, 201 have not been reviewed as we are required to review only the cumulativefigures for six months period ended December 31, 201 .
Pakistan Hotels Developers Limited 6
.
.
65
6
Introduction
Scope of Review
Based on our review, nothing has come to our attention that causes us to believethat the accompanying interim financial information is not prepared, in allmaterial respects, in accordance with approved accounting standards asapplicable in Pakistan for interim financial reporting.
Conclusion
Haydrabad: February 23, 2017
We draw attention to Note No. 8 to the financial information which describes theserious breakout of fire in the hotel. Our opinion is not qualified in respect of this matter.
Pakistan Hotels Developers Ltd.
LEFTBLA
NK
"The annexed notes form an integral part of this statement""See Auditors’ Review Report"
Pakistan Hotels Developers Ltd.
CONDENSED INTERIM BALANCE SHEETAS AT DECEMBER 31, 2016
DEC. 2016 JUN. 2016CAPITAL AND LIABILITIES:
Share capital Authorized
30,000,000 Ordinary Sharesof Rs. 10/= each
Issued, subscribed & paid-up18,000,000 Ordinary Sharesof Rs. 10/= eachUnappropriated Profit
Surplus on revaluation of fixed assets
Non current liabilities
Current liabilities
Current maturity
Creditors, accrued and other liabilities
300,000
180,000
146,888
326,888
4,434,111
8,067
78,068
86,135
5,116,722
300,000
180,000
132,774
312,774
4,423,129
6,186
85,842
92,028
5,089,359
Security deposits 5,8224,280
(Rupees in '000)
13,51411,831
Contingencies and commitments
9Karachi: February 23, 2017
Un-audited Audited
Liabilities against assets subjectto finance lease
245,317Deferred taxation 250,252
Six-Months Ended December 2016
ASSETS:
Long term deposits and advances
Current assets:
Stores and spares
Stock in trade - food and beverages
Trade debts un-secured considered good
Advances, prepayments and other receivables
5,310
2,519
1,959
91,611
155,462
10,580
5,116,7225,089,359
2,591
177
61,827
147,698
DEC. 2016 JUNE. 2016
(Rupees in '000)
Fixed assets 4,955,9504,931,081
15,74441,769
10
Cash and bank balances 43,62941,334
MUZAFFAR F. BAWEJAChief Executive Officer
Un-audited Audited
Non-current assets
ManagingDirectorZUBAIR BAWEJA
"The annexed notes form an integral part of this account”"See Auditors’ Review Report"
Pakistan Hotels Developers Ltd.
11
Chief Executive Officer
Karachi: February 23, 2017
CONDENSED INTERIM PROFIT AND LOSS ACCOUNTFOR THE SIX-MONTHS PERIOD ENDED DECEMBER 31, 2016
Administrative, selling andgeneral expenses
Other operating income / (Loss)
Financial charges
Net profit before taxation
Operating Profit
- Basic (Rupees)
Net Profit after taxation
Sales tax, discount and salesreturn
Sales and services-net
Gross Profit
Taxation
Current
Prior year
Deferred
(Rupees in '000)
Operating expenses
Earning per share
- Diluted (Rupees)
Turnover
Cost of sales and srevices
Three months endedDecember 31
2016 2015
Six months endedDecember 31
2016 2015
(39,744)
49
38,683
38,315
1.54
27,783
(64,091)
(18,373)
142,469
(10,532)
(13,000)
2,468
160,842
78,378
1.54
(368)
(84,961)
185
90,715
89,969
3.61
64,904
(146,003)
(25,065)
(30,000)
4,935
(42,156)
321,494
363,650
175,491
3.61
(746)
ManagingDirectorZUBAIR BAWEJAMUZAFFAR F. BAWEJA
(87,806)
1,098
86,428
86,416
3.35
60,344
(182,706)
(26,072)
(27,500)
4,820
(50,325)
355,842
406,167
173,136
3.35
(12)
(3,392)
(39,198)
91
72,111
72,099
2.69
48,438
(88,450)
(27,876)
199,668
(23,661)
(22,920)
2,651
(3,392)
227,544
111,218
2.69
(12)
12Karachi: February 23, 2017
MUZAFFAR F. BAWEJAChief Executive Officer
Six-Months Ended December 2016
Net profit after taxation 48,438 60,34464,90427,783
(Rupees in '000)
December 31,
2016
THREE-MONTHS ENDED
2015 2016
SIX-MONTHS ENDED
2015
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOMEFOR THE SIX -MONTHS PERIOD ENDED DECEMBER 31, 2016
Total comprehensive income 27,783
December 31,
48,438 60,34464,904
"The annexed notes form an integral part of this statement""See Auditors’ Review Report"
ManagingDirectorZUBAIR BAWEJA
CONDENSED INTERIM CASH FLOW STATEMENTFOR THE SIX-MONTHS PERIOD ENDED DECEMBER 31, 2016
Cash flow from operating activities
Net profit before taxationAdjustments for non cash items and other itemsDepreciation
Financial charges in lease assets
(Increase)/decrease in operating assets
Stores and spares
Trade debts
Advances, prepayments & other receivables
Increase/(decrease) in operating liabilities
Creditors and accrued liabilities
Income tax paid
Acquisition of fixed assets
Cash flows from financing activities:
Dividends Paid
Net Increase/(decrease) in cash and cash equivalent
Cash and cash equivalent at July 01
Cash and cash equivalent at December 31
2016 2015
Stock in trade - Food and Beverages
Net cash from investing activities
89,969
25,849
26,595
116,564
(72)
1,78229,784
10,469
127,033
104,807(5,000)
99,807
(6,250)
(3,573)
(95,852)
(2,295)43,629
41,334
(21,025)
Long term advances and deposits
(Rupees in ‘000)Notes
(22,226)
Cash generated from operations
Net cash used in financing activities
Cash flows from investing activities
(980)
(90,000)
09
MUZAFFAR F. BAWEJAChief Executive Officer
Karachi: February 23, 2017 13
Pakistan Hotels Developers Ltd.
"The annexed notes form an integral part of this statement""See Auditors’ Review Report"
Long term deposits
Finance lease net of rentals (2,279)
86,416
23,465
23,477
109,893
155
153
(39,591)
(37,868)
72,025
63,814(9,423)
54,391
(27,862)
3,685
(66,763)
(40,234)89,121
48,887
1,415
(8,211)
(27,862)
(72,000)
746
(5,270)
ManagingDirectorZUBAIR BAWEJA
(Rupees in ‘000)Notes
Pakistan Hotels Developers Ltd.
12
1,552
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITYFOR THE SIX-MONTHS PERIOD ENDED DECEMBER 31, 2016
14
Balance as at June 30, 2015
Transferred from surplus on revaluationof fixed assets to accumulated profit
Paid cash dividend (final) - 2015
Balance as at June 30, 2016
Balance as at December 31, 2016
180,000 172,543 352,543
(72,000) (72,000)
ShareCapital
Unappro-priated profit Total
(Rupees in '000)
180,000
180,000
146,888
10,982
132,774
326,888
10,982
312,774
10,242
Transferred from surplus onrevaluation of fixed assets toaccumulated profit.
64,904 64,904Total comprehensive income for thesix-months ended December 31, 2016
Paid cash dividend (final)- 2016 (90,000) (90,000)
ManagingDirectorZUBAIR BAWEJAMUZAFFAR F. BAWEJA
Chief Executive Officer
Karachi: February 23, 2017
Six-Months Ended December 2016
"The annexed notes form an integral part of this statement""See Auditors’ Review Report"
Total comprehensive income for thesix-months ended December 31, 2015
60,344 60,344
Balance as at December 31, 2015 180,000 171,129 351,129
10,242
15
NOTES TO INTERIM FINANCIAL INFORMATIONFOR THE SIX-MONTHS PERIOD ENDED DECEMBER 31, 2016
1) Pakistan Hotels Developers Limited was incorporated and domiciled in 1979 at Karachi,
Pakistan under the Companies Act, 1913 (now Companies Ordinance, 1984) as a private
limited company and converted into public limited company in 1981. The company is
listed with Pakistan Stock Exchange . The registered office of the company is situated
at 195/2, Shahrah-e-Fsisal,Karachi. The company is principally engaged in hotel business
and owns and operates a Five Star Hotel known as Regent Plaza Hotel and Convention
2) This condensed interim financial report of the company for the six months period ended
December 31,2016 has been prepared in accordance with the requirements of the International
Accounting Standard 34 Interim Financial Reporting and provisions of the directives issued
under the Companies Ordinance, 1984. In case where requirements differ, the provisions of
or directives issued under the Companies Ordinance, 1984 have been followed.
3) These interim condensed financial statements and limited scope review report by the statutory
auditors are being circulated to shareholders as required under Section 245 of the Companies
Ordinance 1984 and Stock Exchange Listing Regulations.
4) The comparative balance sheet presented in the interim financial information has been extracted
from the audited financial statements of the Company for the year ended June 30, 2016. The
comparative condensed interim profit and loss account, condensed interim statement of comprehensive
income, condensed interim statement of changes in equity and condensed interim cash flow
statement are for the three/six-months period ended December 31, 2015.
5) The accounting policies and the methods of computation adopted in the preparation of this condensed
interim financial report are the same as those applied in the preparation of the financial statements
6)
7)
Pakistan Hotels Developers Ltd.
for the year ended June 30, 2016.
Additions to the fixed assets during the period was Rs 0.980 million (For the period ended December
2015: Rs.27.862 million). The cost of assets disposed off during the period was Rs. NIL. (For the
period ended December 2015: Rs. NIL).
There is no significant change in contingent liabilities of the company since last annual balance
sheet date.
On 5th December, 2016 , a serious breakout of fire in the hotel at around 3:00 a.m. In which 12 precious
lives including one staff member of the hotel lost and several injured and also damaged a several part of the
hotel service areas. Police has registered the case and lodged charges to the hotel management including CEO
and MD.
8)
Centre, Karachi.
Six-Months Ended December 2016
16
12) Figures have been rounded off to the nearest thousand rupees.
9)
10)
Cash and cash equivalent
31-12-2016 31-12-2015(Rupees in '000)
Cash and bank balances
Bank overdrafts 09.1
09.1 These are included in creditors, accrued and other liabilities and represent the balance
as per books without any corresponding facility from the bank.
Transaction with related parties and associatedundertakings
31-12-2016 31-12-2015(Rupees '000)
Gratuity fund
11) Directors have not declared any entitlements to the shareholders for the current period
(For the period ended December 31, 2015: Rs.3/= per share) in their meeting held on February 23rd
2017.
13) This interim financial report was authorized for issue by the Board of Directors of the
Company in their meeting held on February 23, 2017.
Karachi: February 23, 2017
MUZAFFAR F. BAWEJAChief Executive Oficer
Management hope the case will be decided by the Honorable Court at earliest in favor of
Management
3,500
ManagingDirectorZUBAIR BAWEJA
Revenue generation stopped from 5th December, 2016 to 3rd February, 2017, a soft opening of
banquet started from 4th February, 2017.
57,884
48,887
(8,997)
41,334
41,334