NINE MONTHS ACCOUNTS

MARCH, 31

2023
03 Company Profile
04 Directors’ Review
07 Directors’ Review (in Urdu)
08 Condensed Interim Statement of
Financial Position
10 Condensed Interim Statement of
Profit or Loss Account and other
Comprehensive Income (Un-audited)
11 Condensed Interim Statement of
Changes in Equity (Un-audited)
12 Condensed Interim Statement of
Cash Flows (Un-audited)
13 Notes to and forming Part of the
Condensed Interim Financial
Statement (Un-audited)
 COMPANY PROFILE

Board of Directors* Major Bankers

Lt. Gen. (Retd.) Ali Kuli Khan Khattak - Chairman Al-Baraka Bank Pakistan Limited
Mr. Hussain Kuli Khan - Chief Executive Askari Bank Limited
Mr. Ahmad Kuli Khan Khattak Bank Al-Falah Limited
Mr. Adnan Ahmed Dubai Islamic Bank Pakistan Limited
Mr. Manzoor Ahmed Faysal Bank Limited
Mrs. Nazia Qureshi Habib Bank Limited
Syed Ahmed Iqbal Ashraf Habib Metropolitan Bank Limited
Mr. Umair Aijaz Industrial and Commercial Bank of China Limited
MCB Bank Limited
Company Secretary National Bank of Pakistan
Mr. Yasir Ali Quraishi Samba Bank Limited
The Bank of Punjab
Chief Financial Officer United Bank Limited
Mr. Siraj A. Lawai
Registered Office & Factory
Board Audit Committee* H-23/2, Landhi Industrial Trading Estate,
Mr. Ahmad Kuli Khan Khattak Landhi, Karachi, Pakistan
Lt. Gen. (Retd.) Ali Kuli Khan Khattak Phone : 021-35080172-81, 021-38020207-13
Mr. Manzoor Ahmed UAN: +92 21 111 487 487
Syed Ahmed Iqbal Ashraf Fax: +92 21 3508 0171
Mr. Umair Aijaz Website: [Link]

Board Human Resource & Remuneration Committee* Branch Offices:

Mr. Ahmad Kuli Khan Khattak Lahore Office
Lt. Gen. (Retd.) Ali Kuli Khan Khattak Plot No. 20, Shahrah-e-Fatima Jinnah, Lahore.
Mr. Adnan Ahmed Phone : 042-36308605-6
Mr. Hussain Kuli Khan Fax : 042-36300108
Mr. Manzoor Ahmed
Mrs. Nazia Qureshi Multan
Syed Ahmed Iqbal Ashraf Plot No. 758-759/21, Khanewal Road, Multan
Phone : 061-774407
Auditors Fax : 061-774408
ShineWing Hameed Chaudhri & Co.
Chartered Accountants Islamabad
Plot No. 148-149, Khuda Bakhsh Road, Saraan,
Legal Advisor Kahuta Industrial Triangle,
Ahmed & Qazi Advocates & Legal Consultants Kahuta Road, Hummak Islamabad
Phone: +92 51-5971612-13 / 51-5971650
Share Registrar Fax: +92 51-597 1615
CDC Share Registrar Services Limited.
CDC House 99-B, Block-B, S.M.C.H.S., Customer Care & Service Centre Lahore
Main Shahra-e-Faisal Karachi-74400 Plot No. 20, Shahrah-e-Fatima Jinnah, Lahore.
Customer Support Services (Toll Free) 0800-CDCPL (23275) Phone : 042-36308605-6
Fax: (92-21) 34326053, Email: info@[Link] Fax : 042-36308607
Website: [Link]

* Sequence of names in alphabetical order

Nine Months Accounts 2023| 03

 DIRECTORS’ REVIEW

The Directors hereby present the unaudited condensed interim financial statements of the Company for
the nine months ended March 31, 2023.

BUSINESS REVIEW

Net sales in value terms for the nine months ended under review was Rs. 10.63 billion as compared to Rs.
12.91 billion in the same period last year, showing decline of 18%.

Sales for the period under review, in Replacement Market (RM) was mainly impacted due to heavy rains
and destruction caused by floods in certain parts of country in first half, slowdown in economic activity
and increase in smuggling of tyres. Moreover, passenger car OEMs observed non production days, based
on non-availability of CKD kits, which impacted OEM sales. Whereas farm OEM sales, which were
impacted in first half due to floods, has shown improvement in Q3 due to upcoming harvesting season.
We expect that farm tyres sales in both OEM and Replacement market segments, will improve further in
coming months due to seasonal factor. Restriction on import of raw materials also impacted current
quarter sales.

The export sales of the Company for the period were Rs. 150 million as compared to Rs. 37 million in same
period last year.

The gross profit for the period was Rs. 1,517 million as compared to Rs. 1,640 million in same period last
year. Gross profit margin was 14.3% as compared to 12.7% in same period last year. Higher gross margin
was mainly due to better sales mix, price increase and enhanced focus on RM which was partly offset by
significant devaluation of Rupee, and general inflation.

The finance cost for the period was Rs. 909 million, increased by Rs 401 million, as compared to same
period last year. Increase in financial cost is mainly attributable to increase in discount rate and higher
working capital requirements consequent to devaluation of Pak Rupee, partially offset by better working
capital management.

The uncertain economic conditions led to significant devaluation of Pak Rupee against US Dollar in Q3,
which resulted in exchange loss of Rs 331 million.

As a result of the factors mentioned above, loss after tax for the nine months ended March 31, 2023 was
Rs. 238.3 million as compared to profit after tax of Rs. 336.6 million reported in the same period last year.

FUTURE PROSPECTS

As reported earlier, your Company has developed new radial tyres in 17 inch and 18 inch rim sizes for
Sports Utility Vehicle (SUV) / Crossover. The Company is already supplying tyres of new variant of 17 inch
rim size to an OEM. For mass production of 18 inch rim size, the Company plans to import few machines
and molds, which would be procured once restrictions on import of machinery are eased.

Political stability and improvement in key economic indicators are very critical for future direction of the
economy. We are hopeful that economic and political situation would improve resulting in stability in
exchange rate and ease off on restrictions on opening of LCs.

04 | Nine Months Accounts 2023

Lately under invoicing and smuggling has increased substantially, which is not only affecting the local
industry but also depriving the Government of its due tax revenue. We hope that the Government will
continue its efforts to curb smuggling and ensure proper classification of tyres in appropriate categories
of ITP. This will not only result in higher tax revenue for the Government but will also provide level playing
field to the local industry and will be helpful in providing employment.

The Company is also working on strategies to reduce costs. Moreover, it is also working on developing
new sizes and designs for both OEM and RM segments.

Despite the current economic situations, we believe that the long term growth potential of the business
is intact.

For and on behalf of the Board of Directors.

Hussain Kuli Khan Umair Aijaz

Chief Executive Director

Karachi
April 28, 2023

Nine Months Accounts 2023| 05

 18 17 / SUV

18 17 OEM

ITP

RMs OEMs

2023 28

06 | Nine Months Accounts 2023

 2023 31

18 12.91 10.63

RM

OEM OEM CKD OEMs

RM OEM

37 150

14.3 1,640 1,517

RM 12.7

401 909

SBP

331

336.6 238.3 2023 31

Nine Months Accounts 2023| 07

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT MARCH 31, 2023

March 31, June 30,

2023 2022
(Un-audited) (Audited)
Note --- Rupees in '000 ---
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorised capital
125,000,000 (June 30, 2022: 125,000,000) ordinary shares
of Rs 10 each 1,250,000 1,250,000
Issued, subscribed and paid-up share capital 1,219,334 1,219,334
Reserve for capital expenditure 1,000,000 1,000,000
Unappropriated profit 1,021,052 1,625,199
TOTAL EQUITY 3,240,386 3,844,533
LIABILITIES
NON CURRENT LIABILITIES
Long term finances 608,988 796,083
Staff benefits 503,229 440,729
Deferred liabilities
- Deferred tax liability 21,639 262,919
- Others 207,075 254,304
228,714 517,223
Long term deposits from dealers 10,430 10,370
1,351,361 1,764,405
CURRENT LIABILITIES
Current maturity of long term finances 269,045 489,148
Current maturity of deferred liabilities 210,177 177,327
Current maturity of lease liability - 2,613
Short term finances 1,748,994 2,991,027
Running finances under mark-up arrangements 4,727,417 2,904,137
Trade and other payables 5 3,270,498 3,599,739
Unclaimed dividend 19,329 19,462
Accrued mark-up 270,163 178,709
Provisions 82,857 82,857
10,598,480 10,445,019
TOTAL LIABILITIES 11,949,841 12,209,424
TOTAL EQUITY AND LIABILITIES 15,190,227 16,053,957
Contingencies and commitments 6

Siraj A. Lawai Hussain Kuli Khan Umair Ajiaz

Chief Financial Officer Chief Executive Director

08 | Nine Months Accounts 2023

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT MARCH 31, 2023

March 31, June 30,

2023 2022
(Un-audited) (Audited)
Note --- Rupees in '000 ---
ASSETS
NON CURRENT ASSETS
Property, plant and equipment 7 5,244,212 5,498,198
Right-of-use assets - 1,317
Intangible assets 2,663 1,123
Investment in an associated company 24,168 25,918
Long term loans and advances 6,190 10,508
Long term deposits 19,468 19,426
5,296,701 5,556,490
CURRENT ASSETS
Stores and spares 758,916 693,421
Stocks 8 4,733,121 5,299,420
Trade debts 2,273,409 2,518,372
Loans and advances 106,043 148,645
Deposits and prepayments 80,985 57,388
Other receivables 296,977 217,189
Taxation - net 1,463,933 1,425,639
Cash and bank balances 180,142 137,393
9,893,526 10,497,467

TOTAL ASSETS 15,190,227 16,053,957

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

Siraj A. Lawai Hussain Kuli Khan Umair Ajiaz

Chief Financial Officer Chief Executive Director

Nine Months Accounts 2023| 09

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS ACCOUNT
AND OTHER COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2023
Quarter ended Nine months ended
March 31, March 31,
2023 2022 2023 2022
Note --------------- Rupees in '000 ---------------
Sales - net 3,462,614 4,745,517 10,632,070 12,913,675
Cost of sales 9 (3,050,451) (4,158,808) (9,115,346) (11,274,011)
Gross profit 412,163 586,709 1,516,724 1,639,664
Administrative expenses (74,144) (87,587) (233,856) (232,839)
Distribution cost (162,728) (160,366) (456,013) (434,650)
Other income 19,766 21,575 69,930 83,906
Other expenses 10 298,519 (12,773) (331,492) (49,019)
(Loss) / profit from operations (103,462) 347,558 565,293 1,007,062
Finance cost (320,927) (206,157) (908,764) (508,000)
(424,389) 141,401 (343,471) 499,062
Share of profit / (loss) of an
associated company 121 2,385 (1,750) 5,415
(Loss) / profit before taxation (424,268) 143,786 (345,221) 504,477
Taxation 145,851 (48,427) 106,874 (167,846)
(Loss) / profit for the period (278,417) 95,359 (238,347) 336,631
Other comprehensive income - - - -
Total comprehensive
(loss) / income for the period (278,417) 95,359 (238,347) 336,631

Rupees Rupee ------- Rupees -------

(Loss) / earnings per share
basic and diluted 11 (2.28) 0.78 (1.95) 2.76

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

Siraj A. Lawai Hussain Kuli Khan Umair Ajiaz

Chief Financial Officer Chief Executive Director

10 | Nine Months Accounts 2023

STATEMENT OF CHANGES IN EQUITY
FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2023

Capital Revenue
Reserve Reserve

Issued,
Reserve for
subscribed Unappropriated
capital Total
and paid-up profit
expenditure
share capital

------------ Rupees in '000 ------------

Balance as at July 1, 2021 (Audited) 1,219,334 1,000,000 1,296,281 3,515,615

Total comprehensive income

for the nine months
period ended March 31, 2022 - - 336,631 336,631

Balance as at March 31, 2022 (Un - audited) 1,219,334 1,000,000 1,632,912 3,852,246

Total comprehensive loss

for the three months
period ended June 30, 2022 - - (7,713) (7,713)

Balance as at July 1, 2022 (Audited) 1,219,334 1,000,000 1,625,199 3,844,533

Trasaction with owners recognised

directly in equity
Final Dividend for the year ended
June 30, 2022 @ Rs.3 per share (365,800) (365,800)

Total comprehensive loss

for the nine months
period ended March 31, 2023 - - (238,347) (238,347)

Balance as at March 31, 2023 (Un-audited) 1,219,334 1,000,000 1,021,052 3,240,386

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

Siraj A. Lawai Hussain Kuli Khan Umair Ajiaz

Chief Financial Officer Chief Executive Director

Nine Months Accounts 2023| 11

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)
FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2023
Nine months ended
Mar 31,
2023 2022
Note --- Rupees in '000 ---

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operations 12 1,433,817 281,375
Staff retirement gratuity paid (45,180) (36,572)
Compensated absences paid (6,504) (4,097)
Long term deposits from dealers - net 60 580
Finance cost paid (826,117) (467,992)
Taxes paid (172,700) (251,154)
Long term loans and advances - net 4,318 647
Long term deposits - net (42) 2,477
Profit on bank deposits received 955 501
Net cash generated / (used) in operating activities 388,607 (474,235)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (128,203) (662,858)
Purchase of intangibles assets (2,160) -
Proceeds from sale of operating fixed assets 5,827 4,378
Net cash used in investing activities (124,536) (658,480)

CASH FLOWS FROM FINANCING ACTIVITIES

Long term finances - repaid (434,023) (569,402)
Long term finances - obtained - 348,627
Lease rental paid - net (2,613) (5,309)
Short term finances - net (1,242,033) 2,013,960
Dividend paid (365,933) (102)
Net cash (used in) / generated from financing activities (2,044,602) 1,787,774
Net (decrease) / increase in cash and cash equivalents (1,780,531) 655,059
Cash and cash equivalents at beginning of the period (2,766,744) (3,214,945)
Cash and cash equivalents at end of the period 13 (4,547,275) (2,559,886)

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

Siraj A. Lawai Hussain Kuli Khan Umair Ajiaz

Chief Financial Officer Chief Executive Director

12 | Nine Months Accounts 2023

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM
FINANCIAL STATEMENTS (UN-AUDITED)
FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2023

1. LEGAL STATUS AND OPERATIONS

1.1 Ghandhara Tyre And Rubber Company Limited (the Company) (formerly The General Tyre and
Rubber Company of Pakistan Limited ) was incorporated in Pakistan on March 7, 1963 as a
private limited company and was subsequently converted into a public limited company. Its
shares are listed on Pakistan Stock Exchange Limited. The registered office of the Company is
situated at H - 23/2, Landhi Industrial Trading Estate, Landhi, Karachi with regional offices at
Lahore, Multan and Islamabad. The Company is engaged in the manufacturing and trading of
tyres and tubes for automobiles and motorcycles.

2. BASIS OF PREPARATION

2.1 Statement of Compliance

These condensed interim financial statements is unaudited and 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, 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 provisions of and directives issued 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.

2.2 These condensed interim financial statements does not include all the information and
disclosures required in an annual financial statements, and should be read in conjunction with
the Company's annual audited financial statements for the year ended June 30, 2022.

3. SIGNIFICANT ACCOUNTING POLICIES

3.1 The accounting policies and methods of computation adopted in the preparation of these
condensed interim financial statements are consistent with those applied in the preparation of
the annual audited financial statements for the year ended June 30, 2022.

3.2 New standards, amendments to approved accounting standards and new interpretations

3.2.1 Amendments to published accounting standards which were effective during the period.

There were certain amendments to approved accounting standards which were mandatory for
the Company's annual accounting period which began on July 01, 2022. However, these do not
have any significant impact on the Company’s financial reporting and, therefore, have not been
detailed in this condensed interim financial statements.

4. ACCOUNTING ESTIMATES, JUDGEMENTS AND FINANCIAL RISK MANAGEMENT

The preparation of these condensed interim financial statements requires management to

make judgments, estimates and assumptions that affect the application of accounting policies
and the reported amounts. Actual results may differ from these judgments, estimates and
assumptions.

Nine Months Accounts 2023| 13

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM
FINANCIAL STATEMENTS (UN-AUDITED)
FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2023

However, the management believes that the change in outcome of judgments, estimates and
assumptions would not have a material impact on the amounts disclosed in this condensed
interim financial statements.

Judgments and estimates made by the management in the preparation of these condensed
interim financial statements are the same as those applied in the Company's financial
statements for the year ended June 30, 2022.

The Company’s financial risk management objectives and policies are consistent with those
disclosed in the Company's financial statements for the year ended June 30, 2022.

March 31, June 30,

2023 2022
(Un-audited) (Audited)
5. TRADE AND OTHER PAYABLES --- Rupees in '000 ---

Trade creditors 290,858 301,230

Bills payable 1,409,772 1,387,683
Accrued expenses 1,046,542 1,360,530
Royalty fee payable 145,273 126,022
Advances from customers 59,505 72,593
Staff provident fund payable 5,454 4,863
Staff retirement gratuity 61,792 85,544
Short term deposits 3,763 2,772
Workers' profit participation fund - 6,637
Workers' welfare fund 12,891 12,891
Payable to Waqf-e-Kuli Khan 8,902 8,902
Interest payable on custom duties 29,933 29,933
Sales tax 146,295 172,211
Others 49,518 27,928
3,270,498 3,599,739

6. CONTINGENCIES AND COMMITMENTS

6.1 Contingencies

6.1.1 There is no significant change in the status of the contingencies as disclosed in note 15.1 to the
audited financial statements of the Company for the year ended June 30, 2022.

6.1.2 Guarantees issued by commercial banks on

behalf of the Company 242,540 459,526
6.1.3 Post dated cheques issued to the Collector of Customs
against duty on imported plant & machinery,
raw materials and stores & spares 41,928 41,928

14 | Nine Months Accounts 2023

 March 31, June 30,
Note 2023 2022
6.2 Commitments (Un-audited) (Audited)
--- Rupees in '000 ---

6.2.1 Commitments in respect of:

- letters of credit for capital expenditure 31,478 57,165
- letters of credit for purchase of raw material
and stores & spares 540,964 810,406
- purchase orders issued to local suppliers for
capital expenditure 160,499 147,734
- sales contracts entered into by the Company 128,874 23,590
- tentative schedules for supply of tyres 1,724,493 2,619,644

7. PROPERTY, PLANT AND EQUIPMENT

Operating fixed assets 7.1 4,614,708 4,908,830
Capital work-in-progress 629,504 589,368
5,244,212 5,498,198

7.1 Operating fixed assets

Book value at beginning of the period / year 4,908,830 4,595,512
Additions during the period / year 7.2 96,874 801,428

Disposals costing Rs. 28.846 million

(June 30, 2022: Rs. 77.107 million) - book value (4,555) (4,491)

Depreciation for the period / year (386,441) (483,619)

Book value at end of the period / year 4,614,708 4,908,830

7.2 Details of transfer to operating fixed assets

during the period are as follows:
Building on leasehold land - 5,005
Plant and machinery 57,291 537,496
Boilers and accessories - 17,828
Laboratory equipment - 43,427
Moulds - 112,697
Vehicles 32,300 82,596
Factory and office equipment 4,129 557
Computer equipments 3,154 1,822
96,874 801,428

Nine Months
1st Accounts 2023|
Quarter 2022 15
| 15
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM
FINANCIAL STATEMENTS (UN-AUDITED)
FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2023

March 31, June 30,

Note 2023 2022
(Un-audited) (Audited)
8. STOCKS
--- Rupees in '000 ---
Raw materials
- in hand 1,411,214 2,289,790
- in transit 444,898 769,373
1,856,112 3,059,163
Work-in-process 162,708 333,240
Finished goods
- in hand 8.1 2,714,301 1,898,283
- in transit - 8,734
2,714,301 1,907,017
4,733,121 5,299,420

8.1 Finished goods include item costing Rs. 178.869 million (June 30, 2022: Rs.141.204 million)
which are stated at the net realisable values aggregating Rs.129.425 million (June 30, 2022:
Rs.95.088 million). The aggregate amount charged to profit or loss account in respect of stocks
written down to the net realisable value is Rs. 3.668 million (June 30, 2022: Rs.1.150 million)

For the quarter ended Nine months period ended

March 31, March 31,
2023 2022 2023 2022
-----------------Un-audited------------------
9. COST OF SALES Note --------------- Rupees in '000 ---------------

Opening stock of finished goods 3,337,346 2,833,673 1,907,017 1,921,332

Cost of goods manufactured 9.1 2,425,766 3,878,162 9,880,186 11,829,971

Finished goods purchased 1,640 32,088 42,444 107,823

2,427,406 3,910,250 9,922,630 11,937,794

5,764,752 6,743,923 11,829,647 13,859,126
Closing stock of finished goods 2,714,301 2,585,115 2,714,301 2,585,115
3,050,451 4,158,808 9,115,346 11,274,011

16 | Nine Months Accounts 2023

 For the quarter ended Nine months period ended
March 31, March 31,
2023 2022 2023 2022
-----------------Un-audited------------------
--------------- Rupees in '000 ---------------
9.1 Cost of goods manufactured
Opening work in process 321,291 334,937 333,240 193,782

Raw material consumed

and factory overhead 2,267,183 3,945,637 9,709,654 12,038,601
2,588,474 4,280,574 10,042,894 12,232,383
Closing work in process 162,708 402,412 162,708 402,412
2,425,766 3,878,162 9,880,186 11,829,971

10. OTHER EXPENSES

Other expenses, for the nine month period ended March 31, 2023, includes exchange loss of
Rs. 330.992 million.

11. (LOSS) / EARNING PER SHARE -

BASIC AND DILUTED
(Loss) / Profit after taxation (278,417) 95,359 (238,347) 336,631
------------------ (Number of shares)------------------
Weighted average number of
ordinary shares 121,933,350 121,933,350 121,933,350 121,933,350

Rupees Rupee ------- Rupees -------

(Loss) / earnings per share
Basic and diluted (2.28) 0.78 (1.95) 2.76

Nine months period ended

March 31,
2023 2022
(Un-audited)
Note --- Rupees in '000 ---
12. CASH GENERATED FROM OPERATIONS
(Loss) / profit before taxation (345,221) 504,477
Adjustments for non-cash charges and other items
Depreciation on property, plant and equipment 386,441 358,338
Amortisation 620 1,428
Depreciation on right-of-use assets 1,317 3,027
Provision for staff retirement gratuity 76,495 56,240
Charge of employees compensated absences 9,928 8,920
Charge of provision for doubtful trade debts -net 5,024 4,606
Profit on bank deposits (955) (501)
Gain on sale of operating fixed assets (1,272) (2,801)
Finance cost 908,764 508,000
Share of loss/(profit) of an associated company 1,750 (5,415)
Working capital changes 12.1 390,926 (1,154,944)
1,433,817 281,375

Nine Months
1st Accounts 2023|
Quarter 2022 17
| 17
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM
FINANCIAL STATEMENTS (UN-AUDITED)
FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2023

Nine months period ended

March 31,
2023 2022
(Un-audited)
--- Rupees in '000 ---

12.1 Working capital changes

(Increase) / decrease in current assets:
- Stores and spares (65,495) (56,444)
- Stocks 566,299 (1,399,834)
- Trade debts 239,939 (986,118)
- Loans and advances 42,602 (162,831)
- Deposits and prepayments (23,597) (33,515)
- Other receivables (79,788) (7,365)
679,960 (2,646,107)
Increase / (decrease) in current liabilities:
- Trade and other payables (289,034) 1,491,163
390,926 (1,154,944)

13. CASH AND CASH EQUIVALENTS

Running finances under mark-up arrangements (4,727,417) (2,757,870)
Cash and bank balances 180,142 197,984
(4,547,275) (2,559,886)

14. OPERATING SEGMENT

These condensed interim financial statements have been prepared on the basis of a single
reportable segment. All non-current assets of the Company as at March 31, 2023 are located in
Pakistan. Revenues from external customers attributed to foreign countries in aggregate are not
material. The Company has earned revenues from one (March 31, 2022: three) customers
aggregating Rs.1,335.06 million (March 31, 2022: Rs.4,672.61 million) during the period which
constituted 12.56% (March 31, 2022: 30.06%) of net sales.

15. TRANSACTIONS AND BALANCES WITH RELATED PARTIES

Related parties comprise of associated companies, companies in which directors are interested,
staff retirement benefit funds, key management personnel and close members of the families of
key management personnel. The Company in the normal course of business carries out
transaction with various related parties.

18 | Nine Months Accounts 2023

 Nine months period ended
March 31,
2023 2022
(Un-audited)
--- Rupees in '000 ---
15.1 Significant transactions with related parties are as follows:
Associated companies/undertakings:
Sales of goods 316,942 256,884
Services received - 709
Rent 1,350 1,350
Interest earned 955 501
Mark-up on short-term and long term finance 96,196 51,404
Donation - 8,414
Other related parties:
Provision towards gratuity staff fund 14,440 9,163
Contribution towards employees provident fund 19,282 15,853
Salaries and other employee benefits 241,767 242,656
Meeting fees 6,200 5,700
Sale of fixed assets 4,341 4,868

March 31, June 30,

2023 2022
(Un-audited) (Audited)
--- Rupees in '000 ---
15.2 Period / year end balances are as follows:
Payables to associated companies / related parties
Staff retirement gratuity 38,718 46,534
Long term and running finances 692,017 856,274
Trade and other payable 13,597 16,256
Accrued mark-up 25,199 7,710
Receivables from associated companies / related parties
Long term loans and advances 546 964
Loans and advances 874 970
Bank balances 8,389 10,262

Nine Months
1st Accounts 2023|
Quarter 2022 19
| 19
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM
FINANCIAL STATEMENTS (UN-AUDITED)
FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2023

16. GENERAL

16.1 Date of authorisation for issue

These condensed interim financial statements were authorised for issue on April 28, 2023 by
the Board of Directors of the Company.

16.2 Corresponding figures have been rearranged and reclassified for better presentation wherever
considered necessary.

16.3 Figures have been rounded off to the nearest thousand of rupees, unless otherwise stated.

Siraj A. Lawai Hussain Kuli Khan Umair Ajiaz

Chief Financial Officer Chief Executive Director

20 | Nine Months Accounts 2023

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 GHANDHARA TYRE AND RUBBER COMPANY LIMITED
HEAD OFFICE/FACTORY
H-23/2, Landhi Industrial Trading Estate, Landhi, Karachi, Pakistan. Phone: +92 21 3508 0172 (10 Lines),
UAN: +92 21 111 487 487 Fax: +92 21 3508 0171, Email: headoffice@[Link]
Web: [Link]