Arpak International Investments : Transmission of Quarterly Report for the period ended on March 31, 2024

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Ifundeliveredpleasereturnto: ARPAKINTERNATIONAL INVESTMENTSLIMITED King's Arcade,20-A,MARKAZF-7, ISLAMABAD-PAKISTAN TEL:[phone]

Arpak

International

Investments

Limited

CONDENSEDINTERIM

FINANCIAL INFORMATION FOR

THE NINEMONTHSPERIOD ENDED

MARCH31,2024(UN-AUDITED)

ARPAKINTERNATIONAL INVESTMENTSLIMITED

COMPANY INFORMATION

Board of Directors
Begum Laila Sarfaraz	Chairperson
Mr. Abbas Sarfaraz Khan	Chief Executive
Ms. Najda Sarfaraz	Director
Mr. Iskander M. Khan	Director
Mr. Babar Ali Khan	Director
Mr. Usman Salim Khan	Independent Director
Mr. FaiysalAli Khan	Independent Director
Company Secretary
Mr. Mujahid Bashir
Chief Financial Officer
Mr. Rizwan Ullah Khan
Head of Internal Audit
Mr. Zaheer Mir

Auditors

M/s. ShineWing Hameed Chaudhri & Co.,

Chartered Accountants

Legal Advisor

Mr. Zahoor Alam

Advocate

Shares Registrar

Messers Hameed Majeed Associates (Pvt.) Limited

H.M. House, 7-Bank Square, Lahore.

Phone No. : 042-37235081

Fax No. : 042-37235083

Bankers

MCB Bank Limited

Bank Al-Habib Limited

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ARPAKINTERNATIONAL INVESTMENTSLIMITED

DIRECTOR'SREVIEWREPORT

The Board of Directors of Arpak International Investments Limited takes pleasure in presenting the review on the operational and financial performance of the Company for the nine-month period ended March 31, 2024.

OPERATIONS

During the period under review, the Company earned from its operations of Rs. 7.491 million (March 31, 2023: Rs. 2.726 million) and after incorporating the share of loss and provision made for impairment in investment in an Associated Company, the Company's pre-tax loss has been reflected to Rs. 206.877 million for the period.

INVESTMENTS

The Company has investments of Rs. 25 million in an associated Company and Rs. 27.098 million in mutual funds that ensures appropriate returns on invested funds.

The Board of Directors in the meeting held on March 15,2024 approved the subscription of 5,000,000 Ordinary Shares of Rs. 10 each, in "Premier Grain Ethanol Limited." This newly incorporated company will engage in the manufacturing, production, and sale of Ethanol, alongside related products derived from grains as primary raw materials. Moreover, at the Extra Ordinary General Meeting held on April 22, 2024, the shareholders unanimously approved the investment plan to be financed by the sale of the Company's property located in F-7-1 Islamabad, for further investment in "Premier Grain Ethanol Limited."

FUTURE OUTLOOK

The Company beside the subscription of 5,000,000 Ordinary Shares of Rs 10/- each in Premier Grain Ethanol Limited, intends to subscribe towards the Right Shares, as and when offered by the Premier Grain Ethanol Limited.

ACCOUNTING POLICIES

The accounting policies adopting in the preparation of the condensed interim financial information for the quarter and nine months period are the same as applied in the preparation of the preceding annual financial statements of the Company.

ACKNOWLEDGEMENT

The Directors appreciate the hard work and dedication displayed by the employees of the Company.

ONBEHALFOF THEBOARD

Islamabad	(Abbas Sarfaraz Khan)	(Iskander M. Khan)
April 26, 2024	Chief Executive	Director

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ARPAKINTERNATIONAL INVESTMENTSLIMITED

CONDENSEDINTERIMSTATEMENTOFFINANCIAL POSITION

AS ATMARCH31,2024

		Un-audited		Audited
		March31,		June30,
		2024	2023
	Note	Rupees		Rupees
Assets
Non-current Assets
Property,plantandequipment		84,232	101,785
Investmentproperty		8,833,097	8,978,100
Longterminvestments	5	266,784,907	320,679,966
Loantoan AssociatedCompany	6	12,500,000	18,750,000
		288,202,236	348,509,851
Current Assets

ARPAKINTERNATIONAL INVESTMENTSLIMITED

CONDENSEDINTERIMSTATEMENTOFPROFITORLOSS(UN-AUDITED)FORTHEQUARTER ANDNINEMONTHSPERIODENDEDMARCH31,2024

	QuarterEnded		NineMonthsEnded
	March31		March31		March31		March31
	2024	2023	2024	2023
	----------------------------------	Rupees------------------------------------
Income	5,765,766	3,921,394	17,843,401	10,021,528
OperatingandGeneralExpenses	(3,292,503)	(4,106,731)	(10,351,651)	(12,720,004)
OperatingProfit/Loss	2,473,263	(185,337)	7,491,750	(2,698,476)
BankCharges	(1,082)	(24,965)	(9,611)	(28,404)

Currentportionofloantoan AssociatedCompany
Shortterminvestment	7

Advancetoemployees-consideredgood

Accruedprofitandmark-up

Prepaymentsandotherreceivables

Advanceincometaxandtaxdeductedatsource

Bankbalances

EquityandLiabilities

ShareCapitalandReserves Authorisedcapital 5,000,000ordinarysharesofRs.10each

Issued,subscribedandpaid-upcapital 4,000,000ordinarysharesofRs.10eachissuedforcash Reserves

Unappropriatedprofit

Shareofsurplusonrevaluationofproperty, plantandequipmentof AssociatedCompanies

Deferredtaxation

CurrentLiabilities

12,500,000

27,098,502

139,750

10,203,556

1,210,106

2,987,399

6,976,385

61,115,698

349,317,934

50,000,000

40,000,000

12,840,781

(321,666,937)

609,527,982

340,701,826

242,001

12,500,000

23,774,513

139,750

5,160,961

5,698

1,978,784

8,319,166

51,878,872

400,388,723

50,000,000

40,000,000

12,840,781

(145,267,882)

480,869,418

388,442,317

217,170

		2,472,181	(210,302)	7,482,139	(2,726,880)
ShareofProfit/(Loss)of Associated
Companies --netoftaxation	6,718,162	6,850,454	66,539,924	(8,505,600)
Provisionmadeforimpairment
ininvestmentinan AssociatedCompany	4,508,903	17,960,086	(279,568,386)	(52,063,868)
Profit/(Loss)beforetaxation	13,699,246	24,600,238	(205,546,323)	(63,296,348)
Taxation	(375,410)	(404,634)	(1,331,493)	(785,920)
Profit/(Loss)aftertaxation		13,323,836		24,195,604		(206,877,816)		(64,082,268)
Profit/(Loss)perShare		3.33		6.05		(51.72)		(16.02)

Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.

Accrualsandotherpayables

Unclaimeddividend

Taxation

ContingenciesandCommitments

8

4,626,232

1,039,042

2,708,833

8,374,107

349,317,934

9,280,340

1,039,042

1,409,854

11,729,236

400,388,723

Theannexednotesformanintegralpartofthesefinancialstatements.

CHIEFEXECUTIVE

DIRECTOR

CHIEFFINANCIAL OFFICER

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CHIEFEXECUTIVE

DIRECTOR

CHIEFFINANCIAL OFFICER

7

ARPAKINTERNATIONAL INVESTMENTSLIMITED

CONDENSEDINTERIMSTATEMENTOFCOMPREHENSIVEINCOME(UN-AUDITED)

FORTHEQUARTER ANDNINEMONTHSPERIODENDEDMARCH31,2024

ARPAKINTERNATIONAL INVESTMENTSLIMITED

CONDENSEDINTERIMSTATEMENTOFCASHFLOWS(UN-AUDITED)

FORTHENINEMONTHSPERIODENDEDMARCH31,2024

QuarterEndedNineMonthsEnded

March31	March31	March31	March31
2024	2023	2024	2023
----------------------------------	Rupees	------------------------------------

Cashflowfromoperatingactivities

March31

2024

Rupees

March31

2023

Rupees

(Loss)/Profitaftertaxation

OtherComprehensiveIncome

Itemsthatmaybereclassifiedsubsequently

toprofitandloss:

Fairvalue(loss)/gainonre-measurementofavailable-for-saleinvestments

Reclassificationofgainonsaleof available-for-saleinvestments

Shareofothercomprehensiveincomefrom AssociatedCompany-net

ShareofShareofsurplusarisenonrevaluationofproperty,

plantandequipmentcarriedoutby

an AssociatedCompany

Itemsthatwillnotbereclassifiedsubsequently

toprofitandloss:

Shareofsurplusarisenonrevaluationofproperty,

plantandequipmentcarriedoutby

an AssociatedCompany

TotalComprehensiveIncomeforthe Year

13,323,836

0

498,454

30,952,641

31,451,095

0

44,774,931

24,195,604

0

93,014

(27,564,374)

(27,471,360)

0

(3,275,756)

(206,877,816)

0

78,507

128,658,564

128,737,071

0

(78,140,745)

(64,082,268)

0

(326,933)

70,141,549

69,814,616

0

5,732,348

Profit/Lossfortheperiod-beforetaxationand

shareofprofitof AssociatedCompanies

Adjustmentsfornon-cashchargesandotheritems:

Depreciationonproperty,plantandequipment

Depreciationoninvestmentproperty

Mark-uponloantoan AssociatedCompany

DividendIncome

Gainonredemptionofshortterminvestments-net

Fairvalueprofit/(loss)onre-measurementofshortterminvestment

Gainonsaleoflongterminvestments

Lossbeforeworkingcapitalchanges

Effectoncashflowduetoworkingcapitalchanges

(Increase)/decreaseincurrentassets

Advancetoemployees- consideredgood

Prepaymentsandotherreceivables

Increase/(decrease)incurrentLiabilities

Accrualsandotherpayables

Unclaimeddividend

Cashusedinoperatingactivities

Incometaxpaid

Netcashusedinoperatingactivities

7,482,139

17,553

145,003

(5,042,595)

(3,624,278)

(243,353)

0

(1,265,531)

0

(1,204,408)

(4,650,181)

0

(5,854,589)

(7,120,120)

(1,016,298)

(8,136,418)

(2,726,880)

48,777

81,728

(3,577,760)

-

(2,450,561)

(247,002)

0

(8,871,698)

0

(312,900)

8,669,119

0

8,356,219

(515,479)

(1,890,486)

(2,405,965)

Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.

Cashflowfrominvestingactivities

Purchaseofproperty,plantandequipment

Mark-upreceivedonloantoan AssociatedCompany

Redemptionofshortterminvestment

ReinvestmentinShort TermInvestment

Dividendreceived

Longtermloanrepaid

Dividendpaid

Netcashgeneratedfrominvestingactivities

Netincrease/(decrease)incashandcashequivalents

Cashandcashequivalents -atbeginningoftheperiod

Cashandcashequivalents -atendoftheperiod

0

0

0

(3,080,636)

3,624,278

6,250,000

0

6,793,642

(1,342,776)

8,319,166

6,976,385

(3,000,000)

2,891,499

325,873

0

0

6,250,000

0

6,467,372

4,061,407

1,001,294

5,062,701

CHIEFEXECUTIVE

DIRECTOR

CHIEFFINANCIAL OFFICER

8

Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.

CHIEFEXECUTIVE

DIRECTOR

CHIEFFINANCIAL OFFICER

9

ARPAKINTERNATIONAL INVESTMENTSLIMITED

STATEMENTOFCHANGESINEQUITY (UN-AUDITED)

FORTHENINEMONTHSPERIODENDEDMARCH31,2024

		Reserves			Shareof
					surpluson
					revaluation
Share			Unrealised	Unappr-	ofproperty,
Capital	General	gainonlong	opriated	plantand	Total
capital
reserve	reserve	term	profit/(loss)	equipment
			investments		ofan
					Associated
					Company
	-------------------------------------		Rupees--------------------------------------

ARPAKINTERNATIONAL INVESTMENTSLIMITED

SELECTEDNOTESTO ANDFORMINGPARTOFTHE

CONDENSEDINTERIMFINANCIAL INFORMATION(UN-AUDITED)

FORTHENINEMONTHSPERIODENDEDMARCH31,2024

1. LEGAL STATUS ANDNATUREOFBUSINESS
   Arpak International Investments Limited (the Company) was incorporated in Pakistan on
   July 26, 1977 as a Public Company and its shares are quoted on Lahore and Karachi Stock Exchanges. The registered office of the Company is situated at 20-A, Markaz F-7, Islamabad. It is principallyengagedininvestmentbusinessofvariousforms.
2. BASISOFPREPARATION

BalanceasatJuly01,2022

Distributiontoowners

Totalcomprehensiveincome

fortheninemonthsperiodended

March31,2023

Lossfortheperiod

Othercomprehensiveincome

Effectofitemsdirectlycreditedto

equitybyan AssociatedCompany

Shareofsurplusonrevaluationofproperty,

plantandequipmentrealisedduring theyearbyan AssociatedCompany onaccountofincrementaldepreciation anduponsaleofrevaluedassets- (netofdeferredtaxation)

40,000,000	7,440,781	5,400,000	0	(98,322,096)	408,947,433	363,466,118
-	-	-	-	(64,082,268)	-	(64,082,268)
-	-	-	-	-	69,814,616	69,814,616
-	-	-	-	(64,082,268)	69,814,616	5,732,348
-	-	-	-	20,754,852	-	20,754,852

(326,933)

326,933

0

2.1. Statementofcompliance

2.1.1 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:

1. International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and
2. ProvisionsofanddirectivesissuedundertheCompanies Act,2017.

Where the 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 havebeenfollowed.

	BalanceasatMarch31,2023	40,000,000	7,440,781	5,400,000	0	(141,976,445)	479,088,982	389,953,318
	BalanceasatJuly01,2023	40,000,000	7,440,781	5,400,000	0	(145,267,882)	480,869,418	388,442,317
		Totalcomprehensiveincome
		fortheninemonthsperiodended
	March31,2024
	Lossfortheperiod	-	-	-	-	(206,877,816)		(206,877,816)
	Othercomprehensiveincome	-	-	-	-	78,507	128,658,564	128,737,071
			-	-	-	-	(206,799,309)	128,658,564	(78,140,745)
	Effectsofitemsdirectlycreditedin
	equityby AssociatedCompanies	-	-	-	-	30,400,254	-	30,400,254
	Shareofsurplusonrevaluationofproperty,
	plantandequipmentrealisedduring
	theyearbyan AssociatedCompany
	onaccountofincrementaldepreciation
	anduponsaleofrevaluedassets-
	(netofdeferredtaxation)	-	-	-	-	-	-	-
	Balan	ceasatMarch31,2024	40,000,000	7,440,781	5,400,000	-	(321,666,937)	609,527,982	340,701,826

Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.

CHIEFEXECUTIVE

DIRECTOR

CHIEFFINANCIAL OFFICER

10

2.1.2 These condensed interim financial statements do not include all the information and disclosures as required in an annual audited financial statements, and these should be read in conjunction with the Company's annual audited financial statements for the year ended June 30, 2023. These condensed interim financial statements are being submitted to the shareholders as required by the section237oftheCompanies Act,2017.

2.2 New standards, amendments to approved accounting standards and interpretations that areeffectiveduringtheperiod

The new standards, amendments to approved accounting standards and interpretations that are mandatory for the accounting periods beginning on July 1, 2019 are considered not to be relevant or to have any significant effect on the Company's interim financial reporting and are, therefore, notdetailedinthesecondensedinterimfinancialstatements.

3. ACCOUNTINGPOLICIES

The accounting policies and the methods of computation adopted in the preparation of this condensed interim financial information are the same as those applied in the preparation of auditedannualfinancialstatementsoftheCompanyfortheyearendedJune30,2023.

4. ACCOUNTINGESTIMATES ANDJUDGEMENTS

The preparation of this condensed interim financial information in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonableunderthecircumstances. Actualresultsmaydifferfromtheseestimates.

During the preparation of this condensed interim financial information, the significant judgements made by the management in applying the Company's accounting policies and the key sources of estimation and uncertainty were the same as those that applied to annual audited financial statementsfortheyearendedJune30,2023.

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5.	LONGTERMINVESTMENTS		Un-audited	Audited
					March31,	June30,
				2024	2023
			Note		----Rupees----

9. TRANSACTIONSWITHRELATEDPARTIES

9.1 Significanttransactionswithrelatedpartiesareasfollows:

		Un-audited
Relationship	Natureoftransactions	Ninemonthsended

AssociatedCompanies:

ThePremierSugarMillsandDistilleryCompany

Ltd.(PSM)-quoted

	Carryingvalue-underequitymethod	5.1.		985,494,173
	Less:Impairmentloss			(801,389,232)
				184,104,941
	PremierBoardMillsLtd.(PBML)-un-quoted
		5.2.		82,679,966
				266,784,907

759,820,846

(521,820,846)

238,000,000

82,679,966

320,679,966

		Match31,
		2024	2023
		----Rupees----
Associated	Mark-upearnedon
Company	loantoan AssociatedCompany	5,042,595	3,577,760
Keymanagement	Remunerationandotherbenefits	4,850,840	3,775,230
personnel
		Un-audited	Audited
		March31,	June30,

5.1. Investment in PSM represents 400,000 fully paid ordinary shares of Rs.10 each representing 10.67% (June 2023: 10.67%) of PSM's issued, subscribed and paid-up capital as at March 31, 2024. PSM was incorporated on July 24, 1944 as a public limited company and its shares are quoted on Pakistan Stock Exchange. The principal activity of PSM is manufacturing and sale of white sugar and spirit. Market value of the Company's investment in PSM as at March 31, 2024 was Rs.460 per share (June 30, 2023: Rs. 595 per share). PSM is an associate of the Company duetocommondirectorship.

5.2. Investment in PBML represents 600,000 fully paid ordinary shares of Rs.10 each representing 10.63% ( June 2023: 10.63%) of PBML's issued, subscribed and paid-up capital as at March 31, 2024. PBML was incorporated on May 12, 1980 as a public company and it is evaluating certain proposals for setting-up some industrial unit. PBML is an associate of the Company due to commondirectorship.

5.2.1 Carrying values of investments in PBML as at March 31, 2024 have not been accounted for using the equity method as required by IAS 28 (Investments in Associates) due to nonavailability of condensedinterimfinancialinformationfortheperiodendedMarch31,2024.

6. LOANTO AN ASSOCIATEDCOMPANY

The Company and Chashma Sugar Mills Ltd.(CSM) - an Associated Company had entered into a loan agreement on May 20, 2008 whereby the Company has advanced amounts aggregating Rs.50 million to CSM. The loan carries mark-up at the rate of 1-Month KIBOR+1.25% per annum; effective mark-up rates charged by the Company, during the current financial year, ranged from 23.50 % to 23.78 % (June 2023: 15.55% to 22.95%) per annum. As per the original loan agreement, the loan was receivable in 8 equal half-yearly instalments commenced from May, 2013. The Company and CSM, in the preceding financial years entered into revised agreements and changed the repayment terms. As per latest agreement, outstanding balance of Rs.43.750 million is now receivable in seven half-yearly instalments commencing November, 2022. The loan is securedagainstapromissorynoteofRs.77million.

7.	SHORTTERMINVESTMENTS- AtfairvaluethroughprofitorlossUn-audited	Audited
		Note	March31,	June30,
	FirstHabibCashFund		----Rupees----
	265,177(June30,2023:234,758.30)Units-cost		26,855,149	23,699,203
	Adjustmentonre-measurementtofairvalue		243,353	75,310
			27,098,502	23,774,513
8.	CONTINGENCIES ANDCOMMITMENTS

There was no known contingency and commitment outstanding as at March 31, 2024 and June 30, 2023.

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		2024	2023
9.2	Period/yearendbalancesareasfollows:	----Rupees----
	Loantoan AssociatedCompany	25,000,000	31,250,000
	AccruedMark-uponloantoan AssociatedCompany	10,203,556	5,160,961

10. FINANCIAL RISKMANAGEMENT

The Company's activities expose it to a variety of financial risks: market risk (including currency risk,interestrateriskandpricerisk),creditriskandliquidityrisk.

There has been no change in the Company's sensitivity to these risks since June 30, 2023. There have been no change in risk management objectives and policies of the Company during the period.

• This condensed interim financial information does not include all financial risk management information and disclosures as are required in the audited annual financial statements and should bereadinconjunctionwiththeCompany'sauditedannualfinancialstatementasatJune30,2023

11. CORRESPONDINGFIGURES

11.1 In order to comply with the requirements of IAS 34 'Interim Financial Reporting', the condensed interim balance sheet has been compared with the balances of annual audited financial statements of the preceding financial year, whereas, the condensed interim profit and loss account, condensed interim cash flow statement and condensed interim statement of changes in equity have been compared with the balances of comparable period of the immediately preceding financialyear.

12. GENERAL

This condensed interim financial information was approved by the Board of Directors and authorisedforissueon April26,2024.

CHIEFEXECUTIVE

DIRECTOR

CHIEFFINANCIAL OFFICER

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