 |
|
|
Notes To The Accounts (Un Audited)
For The Half Year Ended December 31, 2005
|
| 1 |
The Company and Its Operation |
| |
Haroon Oils Limited (the Company) was incorporated in
Karachi, Pakistan on May 30, 1964 as a public Limited
Company under the Companies Act 1913 (now Companies
Ordinance, 1984). The shares of the Company are listed on
Karachi and Lahore Stock Exchanges in Pakistan. The
principal activity of the Company is blending and sale of
lubricating oils and greases. The registered office of the
Company is situated at 11 - Dockyard Road West Wharf
Industrial Area, Karachi. |
| 2 |
Basis of Operation |
| 2.1 |
These financial statements have been prepared in
compliance with the International Accounting Standard 34
Interim Financial Reporting and section 245 of the Companies
Ordinance, 1984. |
| 2.2 |
These financial statements are unaudited and have been
reviewed by the auditors as required by the Code of
Corporate Governance. |
| 2.3 |
The figures of profit and loss account for the quarter
ended December 31, 2005 and 2004 have not been reviewed as
auditors are required to review only the cumulative figures
for the half year ended December 31, 2005. |
| 3 |
Accounting Policies |
| |
The accounting policies and the methods of computation
followed in the preparation of the half year financial
statements are the same as those of the published annual
financial statements for the year ended June 30, 2005. |
|
|
|
| 4 |
Acquisitions and Disposal of
Fixed Assets
|
| |
|
Acquisition |
|
Disposals |
|
Acquisition |
|
Disposals |
| |
|
December 31,
2005 |
|
December 31,
2004 |
| |
|
Rupees |
|
Rupees |
| |
|
|
|
|
|
|
|
|
| |
Owned assets |
|
|
|
|
|
|
|
| |
Electric installation
Furniture and fixture
Office equipment
Air conditioner
Vehicles
Computers |
11,400
7,300
75,400
263,500
49,600 |
|
-
-
38,205
330,425
- |
|
175,000
-
5,300
195,000
- |
|
700,000
-
-
76,900
- |
| |
|
|
|
|
|
|
|
|
| |
Leased assets |
|
|
|
|
|
|
|
| |
Electric installation
Vehicles |
-
969,000 |
|
-
- |
|
2,447,000
1,069,000 |
|
-
- |
| |
|
1,376,200 |
|
368,630 |
|
3,891,300 |
|
776,900 |
| |
|
|
|
|
|
|
|
|
| 5 |
Contingencies and Commitment |
| |
There has been no
significant changes in the contingencies and commitments
since the last audited financial statements except as
disclosed in a and b. |
| a. |
Letter of guarantee in
favor of customers amounting to Rs. 2,195,710 (June 30,
2005: Rs. 2,164,596). |
| b. |
Future rentals payble
under operating leases in respect of vehicles amounting to
Rs. 70,515 (June 30, 2005: Rs. 368,929). |
| |
|
|
|
|
|
| |
|
Half Year
Ended |
|
Quarter
Ended |
| |
|
December 31
2005 |
|
December 31
2004 |
|
December 31
2005 |
|
December 31
2004 |
| |
|
Rupees |
|
Rupees |
|
Rupees |
|
Rupees |
| 6 |
Sales |
|
|
|
|
|
|
|
| |
Gross Sales
Sales tax |
137,694,527
(17,967,958) |
|
127,935,839
(16,720,939) |
|
73,965,995
(9,654,537) |
|
67,840,590
(8,862,726) |
| |
|
119,726,569 |
|
111,214,900 |
|
64,311,458 |
|
58,977,864 |
| |
|
|
|
|
|
|
|
|
| 7 |
Cost of Sales |
|
|
|
|
|
|
|
| |
Opening Stock |
|
|
|
|
|
|
|
| |
Raw materials
Packing material |
2,909,625
4,074,163 |
|
4,234,494
2,995,405 |
|
5,635,272
3,167,191 |
|
4,618,241
3,115,195 |
| |
|
6,983,788 |
|
7,229,899 |
|
8,802,463 |
|
7,733,436 |
| |
|
|
|
|
|
|
|
|
| |
Add: Purchases |
|
|
|
|
|
|
|
| |
Raw materials
Packing materials |
75,296,386
13,117,523 |
|
63,482,396
11,811,369 |
|
32,667,013
7,873,092 |
|
31,053,073
6,108,461 |
| |
|
88,413,909 |
|
75,293,765 |
|
40,540,105 |
|
37,161,534 |
| |
|
95,397,697 |
|
82,523,664 |
|
49,342,568 |
|
44,894,970 |
| |
|
|
|
|
|
|
|
|
| |
Less: Closing |
|
|
|
|
|
|
|
| |
Raw materials
Packing materials |
4,111,717
3,419,980 |
|
2,897,412
3,739,911 |
|
4,111,717
3,419,980 |
|
2,897,412
3,739,911 |
| |
|
7,531,697 |
|
6,637,323 |
|
7,531,697 |
|
6,637,323 |
| |
|
|
|
|
|
|
|
|
| |
Raw and Packaging Material
Consumed |
87,866,000 |
|
75,886,341 |
|
41,810,871 |
|
38,257,647 |
| |
Salaries, wages, benefits &
other staff welfare
Excise duty
Rent, rates & taxes
Insurance
Electricity, gas and water
Printing, and stationery
Postage and telephone
Repairs & maintenance
Traveling & conveyance
Entertainment
Vehicle running and maintenance
Operating lease rentals
Depreciation
General supplies and utilities |
2,501,177
12,479,425
842,018
155,550
656,014
21,237
12,560
192,840
18,379
49,000
95,185
34,620
1,473,822
66,729 |
|
2,533,146
12,980,771
840,684
145,430
685,466
11,303
12,222
231,074
11,985
145,000
34,095
69,240
1,430,392
83,092 |
|
1,306,274
6,386,921
544,532
81,700
327,486
8,181
6,084
110,123
11,024
3,000
78,507
-
736,601
41,975 |
|
1,376,132
6,917,086
555,152
72,715
283,144
6,923
6,067
143,862
6,885
79,000
13,115
34,620
734,356
34,358 |
| |
|
|
|
|
|
|
|
|
| |
Cost of Good Manufactured |
106,464,556 |
|
95,100,241 |
|
51,453,279 |
|
48,521,062 |
| |
|
|
|
|
|
|
|
|
| |
Finished Goods |
|
|
|
|
|
|
|
| |
Opening stock
Closing stock |
7,431,717
(13,284,006) |
|
10,936,426
(15,015,761) |
|
15,503,589
(13,284,006) |
|
15,597,598
(15,015,761) |
| |
|
(5,852,289) |
|
(4,079,335) |
|
2,219,583 |
|
581,837 |
| |
|
100,612,267 |
|
91,020,906 |
|
53,672,862 |
|
49,102,899 |
| |
|
|
|
|
|
|
|
|
| 8 |
Distribution Expenses |
|
|
|
|
|
|
|
| |
Salaries, wages, benefits &
other staff welfare expenses
Rent, rates and taxes
Insurance
Electricity, gas and water
Printing & stationery
Postage and telephone
Laboratory expenses
Repairs & maintenance
Traveling & conveyance
Entertainment
Vehicle running & maintenance
Operating lease rentals
Provision for doubtful debts
Depreciation
Transportation
Advertising and sales promotion
Fees & subscription
General supplies & utilities |
5,308,290
113,162
43,700
210,604
85,438
233,944
143,431
65,647
383,428
116,566
382,657
175,503
275,668
145,145
3,028,034
471,953
36,861
70,291 |
|
4,858,964
112,592
43,687
211,266
67,221
224,096
36,289
112,749
378,317
90,802
246,759
254,496
48,190
150,295
2,992,499
1,046,786
24,468
34,143 |
|
2,724,322
55,841
22,150
98,827
31,042
109,613
49,476
27,286
239,324
71,364
198,383
48,255
113,110
72,572
1,598,544
229,438
26,185
52,928 |
|
2,548,949
49,311
22,241
76,402
36,134
95,423
23,455
21,654
169,447
81,950
127,634
127,248
48,190
75,147
1,606,455
520,585
12,151
15,683 |
| |
|
11,290,322 |
|
10,933,619 |
|
5,768,660 |
|
5,658,059 |
|
|
|
| |
|
Half Year
Ended |
|
Half Year
Ended |
| |
|
December 31
2005 |
|
December 31
2004 |
|
December 31
2005 |
|
December 31
2004 |
| |
|
Rupees |
|
Rupees |
|
Rupees |
|
Rupees |
| 9 |
Administrative Expenses |
|
|
|
|
|
|
|
| |
Salaries, wages, benefits &
other staff welfare expenses
Rent, rates and taxes
Insurance
Electricity, gas and water
Printing & stationery
Postage and telephone
Repairs & maintenance
Traveling & conveyance
Entertainment
Vehicle running & maintenance
Operating lease rentals
Depreciation
Amortisation of intangible assets
Subscription
Legal & professional
Auditors' remuneration
Donation
General supplies & utilities |
5,500,235
163,356
108,683
212,343
175,254
209,040
236,256
30,190
82,132
250,901
70,350
835,777
41,876
54,771
281,688
172,500
7,000
14,410 |
|
4,651,720
178,816
109,901
165,686
151,691
186,734
225,880
48,324
65,986
171,030
70,350
771,425
41,876
61,147
227,462
172,500
14,500
38,099 |
|
2,751,869
54,393
60,300
87,200
62,643
95,286
125,572
13,750
20,525
120,708
35,175
410,441
20,938
15,788
179,300
101,250
-
6,448 |
|
2,385,827
54,963
62,573
54,602
69,289
87,460
96,829
6,776
43,070
75,063
35,175
421,658
20,938
31,712
74,123
101,250
5,000
19,187 |
| |
|
8,446,762
|
|
7,353,127
|
|
4,161,586
|
|
3,645,495
|
| |
|
|
|
|
|
|
|
|
| 10 |
Other Operating Expenses |
|
|
|
|
|
|
|
| |
Rent, rates and taxes on
investment property
Depreciation on investment property
Worker's Profit Participation Fund
Worker's Welfare Fund |
278,328
128,706
-
- |
|
278,328
128,706
92,252
61,454 |
|
139,164
64,353
-
- |
|
139,164
64,353
20,625
17,622 |
| |
|
407,034 |
|
560,740 |
|
203,517 |
|
241,764 |
| |
|
|
|
|
|
|
|
|
| 11 |
Other Operating Income |
|
|
|
|
|
|
|
| |
Investment property rentals
Gain on sale of fixed assets
Others |
1,270,692
1,521,450
379,729 |
|
1,155,174
941,141
62,955 |
|
635,346
1,158,250
34,370 |
|
568,299
425,000
42,573 |
| |
|
3,171,871 |
|
2,159,270 |
|
1,827,966 |
|
1,035,872 |
| |
|
|
|
|
|
|
|
|
| 12 |
Finance Cost |
|
|
|
|
|
|
|
| |
Mark up on redeemable capital -
secured
Mark up on short term running finances - secured
Profit on morabaha finances - secured
Finance charges in respect of finance leases
Interest on Worker's Profit Participation fund
Bank charges, guarantee commission and finance
arrangement fee |
551,774
1,339,731
304,518
174,543
-
115,422 |
|
518,599
776,547
92,601
223,279
20,143
183,267 |
|
267,939
783,270
188,913
81,973
-
51,963 |
|
245,839
435,168
64,778
122,196
20,143
103,140 |
| |
|
2,485,988 |
|
1,814,436 |
|
1,374,058 |
|
991,264 |
| |
|
|
|
|
|
|
|
|
| 13 |
Taxation |
|
|
|
|
|
|
|
| |
Current - Turnover tax @ 0.50%
Deferred |
606,885
(103,786) |
|
1,053,934
(44,474) |
|
323,090(115,897) |
|
302,220
(27,573) |
| |
|
503,099 |
|
1,009,460 |
|
207,193 |
|
274,647 |
| |
|
|
|
|
|
|
|
|
| 14 |
Transaction With Related
Parties |
|
|
|
|
|
|
|
| |
Repayment of loan |
- |
|
500,000 |
|
|
|
|
| |
Sales |
7,374,057 |
|
1,409,108 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
| 15 |
General |
|
|
|
|
|
|
|
| 15.1 |
The figures have
been rounded to nearest rupee. |
| 15.2 |
The figures have
been rearranged to facilitate comparison. |
| 15.3 |
These financial
statements have been authorized for issue on February 18,
2006 by Board of Directors of the Company. |
| |
|
|
|
|
|
|
|
|
|
Imran Azim
Chief Executive |
Nasim Beg
Director |
|
|
|
|
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|
