: Transmission of Quarterly Report for the Period Ended 31-03-2024

GRAYS LEASING LIMITED

Condensed Interim Financial Statements

31 March 2024 (Un-Audited)

COMPANY INFORMATION

BOARD OF DIRECTORS	Mr. Khawar Anwar Khawaja	Chairman
	Mr. Muhammad Tahir Butt	Chief Executive
	Mr. Khurram Anwar Khawaja
	Mr. Muhammad Ashraf Butt
	Mr. Omer Khawar Khawaja
	Mr. Muhammad Arshad
	Mrs. Nuzhat Khawar Khawaja
AUDIT COMMITTEE	Mr. Muhammad Arshad
	Mr. Khurram Anwar Khawaja
	Mr. Omer Khawar Khawaja
AUDITORS	Riaz Ahmad & Company
	Chartered Accountants
	10-B Saint Mary Park
	Main Boulevard, Gulberg III,
	Lahore 54660, Pakistan
	Phones: 92 (042) 35718137-9
	E-mail: [e-mail]
COMPANY SECRETARY	Muhammad Adil Munir
CHIEF FINANCIAL OFFICER	Muhammad Faisal Azam
HEAD OF INTERNAL AUDIT	Saeed Ahmad Shaheen
HUMAN RESOURCE AND
REMUNERATION COMMITTEE	Mr. Omer Khawar Khawaja	Chairman
	Mr. Muhammad Tahir Butt
	Mr. Khurram Anwar Khawaja
LEGAL ADVISOR	Lexicon Law Firm
REGISTERED AND HEAD OFFICE	701-A, 7th Floor, City Towers
	6-K, Main Boulevard, Gulberg - II, Lahore
	Tel: [phone] - 2
	Fax: [phone]
	E-mail:[e-mail]
	Website: www.graysleasing.com
BANKERS	Meezan Bank Limited
	The Bank of Punjab
	Askari Bank Limited
	National Bank of Pakistan
	Habib Bank Limited
	State Bank of Pakistan
SHARE REGISTRAR	Bank Al-Habib Limited
CorpTec Associates (Pvt) Ltd.
	503-E, Johar Town, Lahore.

We are pleased to present the condensed interim financial information for the period ended 31 March 2024, together with report of the Board of Directors of the company.

During the period ended 31 March 2024, the company transacted business worth Rupees 59.207 million as compared to Rupees 25.114 million on 31 March 2023. During the period ended 31 March 2024, the company earned a profit before and after tax of Rupees 9.444 million and Rupees 5.869 million respectively as compared to profit before and after tax of Rupees 8.458 million and Rupees 6.946 million during the corresponding period of 2023. Net investment stands at Rupees 410.804 million as on 31 March 2024 as compared to Rupees 424.510 million as on June 30, 2023. During the period ended 31 March 2024, there is reversal in provision of Rupees 0.143 million against potential lease losses and written off against allowance for potential lease losses is Rupees 20.142 million, resultantly the equity of the company comes to Rupees 68.971 million.

In our country despite of high KIBOR rate and increase in value of vehicles still there is a huge demand of financing in SME sector which is still undiscovered, but the leasing sector is unable to cater the needs of the potential customers due to non-availability of the funds from commercial banks. However, the company has emphasized on the recoveries from the stuck-up clients and the proceeds from stuck ups to disburse new leases.

Since Grays Leasing Limited is a non-deposit taking NBFI therefore its credit rating is not mandatory.

At the end, we would like to thank our clients who provided us the opportunity to serve them. We also extend lot of appreciation to the company employees at all levels for their efforts.

For and on behalf of the board

	Muhammad Tahir Butt
Sialkot: 24 April 2024	Chief Executive

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2024

NOTE

ASSETS
Current assets
Cash and bank balances
Advances and prepayments
Sales tax recoverable
Current maturity of non-current assets	4
Non-current assets
Net investment in lease finance
Long term security deposits and prepayments
Fixed assets	5
TOTAL ASSETS
LIABILITIES
Current liabilities
Loans from related parties	6
Accrued and other liabilities
Current maturity of non-current liabilities
Unclaimed dividend
Provision for taxation
Non-current liabilities
Deposits on lease contracts
Deferred income tax liability	7
Employees' retirement benefit
TOTAL LIABILITIES
NET ASSETS
REPRESENTED BY:
Authorized share capital
35,000,000 (30 June 2023: 35,000,000) ordinary shares of Rupees 10 each
Issued, subscribed and paid-up share capital
21,500,000 (30 June 2023: 21,500,000) ordinary shares of Rupees 10 each
Statutory reserve
Accumulated loss
Shareholders' equity
CONTINGENCIES AND COMMITMENTS	8

UN-AUDITED

31 MARCH 2024

Rupees

6,234,223

1,165,414

493,406

120,334,207

128,227,250

156,307,097

2,500

585,885

156,895,482

285,122,732

27,000,000

4,651,803

101,815,840

777,785

4,206,585

138,452,013

75,435,821

222,113

2,041,807

77,699,741

216,151,754

68,970,978

350,000,000

215,000,000

59,256,615

(205,285,637)

68,970,978

68,970,978

AUDITED

30 JUNE 2023

Rupees

13,916,514

1,042,154

422,310

172,539,576

187,920,554

97,522,349

2,500

655,512

98,180,361

286,100,915

25,000,000

5,265,649

126,482,186

777,785

2,508,742

160,034,362

59,395,220

1,854,916

1,714,429

62,964,565

222,998,927

63,101,988

350,000,000

215,000,000

59,256,615

(211,154,627)

63,101,988

63,101,988

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

MUHAMMAD TAHIR BUTT	KHURRAM ANWAR KHAWAJA	MUHAMMAD FAISAL AZAM
CHIEF EXECUTIVE OFFICER		CHIEF FINANCIAL OFFICER

CONDENSED INTERIM PROFIT OR LOSS (UN-AUDITED)

FOR THE PERIOD ENDED 31 MARCH 2024

	PERIOD ENDED
	31 MARCH	31 MARCH
	2024	2023
NOTE	Rupees	Rupees

REVENUE

QUARTER ENDED

31 MARCH	31 MARCH
2024	2023
Rupees	Rupees

Income from lease operations

Other income

EXPENDITURE
Administrative and other operating expenses
Financial and other charges
Allowance for potential lease losses - net	4.1

PROFIT BEFORE TAXATION

Taxation

PROFIT AFTER TAXATION

Earnings / (loss) per share - basic and diluted

19,005,566

3,840,450

22,846,016

(13,523,707)

(21,290)

143,044

(13,401,953)

9,444,063

(3,575,073)

5,868,990

0.273

17,134,723

2,185,756

19,320,479

(13,678,164)

(169,203)

2,984,902

(10,862,465)

8,458,014

(1,511,743)

6,946,271

0.323

6,193,346

2,291,242

8,484,588

(4,314,051)

146,179

91,922

(4,075,950)

4,408,638

7,594,118

12,002,756

0.558

6,046,043

816,244

6,862,287

(4,976,041)

7,531

769,287

(4,199,223)

2,663,064

(628,497)

2,034,567

0.095

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

MUHAMMAD TAHIR BUTT	KHURRAM ANWAR KHAWAJA	MUHAMMAD FAISAL AZAM
CHIEF EXECUTIVE OFFICER		CHIEF FINANCIAL OFFICER

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE PERIOD ENDED 31 MARCH 2024

PERIOD ENDED

31 MARCH		31 MARCH
2024		2023
Rupees		Rupees

QUARTER ENDED

31 MARCH				31 MARCH
2024			2023
Rupees				Rupees

PROFIT / (LOSS) AFTER TAXATION	5,868,990	6,946,271	12,002,756	2,034,567
OTHER COMPREHENSIVE INCOME :
Items that will not be reclassified to profit or loss	-	-	-	-
Items that may be reclassified subsequently to profit or loss	-	-	-	-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
5,868,990	6,946,271	12,002,756	2,034,567

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

MUHAMMAD TAHIR BUTT	KHURRAM ANWAR KHAWAJA	MUHAMMAD FAISAL AZAM
CHIEF EXECUTIVE OFFICER		CHIEF FINANCIAL OFFICER

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)

FOR THE PERIOD ENDED 31 MARCH 2024

Note

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operations

9

Finance cost paid

Income tax paid

Gratuity paid

NET CASH (USED IN) / GENERATED FROM OPERATING ACTIVITIES

CASH FLOWS FROM INVESTING ACTIVITIES

Net Investment in lease finance

Fixed assets - acquired

Profit on bank deposits received

NET CASH USED IN INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES

Deposits on lease contracts - net

Loan repaid

Loan obtained

NET CASH FROM FINANCING ACTIVITIES

NET DECREASE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

PERIOD ENDED

31 MARCH		31 MARCH
2024		2023
Rupees		Rupees
8,412,777	4,016,459
(21,290)	(169,203)
(3,510,033)	(4,802,559)

• (1,350,000)
  4,881,454 (2,305,303)

(6,436,335)				42,389,203
(12,500)			(13,500)
510,835				1,045,869
(5,938,000)	43,421,572
(8,625,745)		(13,295,110)
(13,000,000)			-
15,000,000				(25,000,000)
(6,625,745)		(38,295,110)
(7,682,291)	2,821,159
13,916,514	14,649,145
6,234,223	17,470,304

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

MUHAMMAD TAHIR BUTT	KHURRAM ANWAR KHAWAJA	MUHAMMAD FAISAL AZAM
CHIEF EXECUTIVE OFFICER		CHIEF FINANCIAL OFFICER

8

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)

FOR THE PERIOD ENDED 31 MARCH 2024

ISSUED,

SUBSCRIBED AND PAID-UP SHARE CAPITAL

Rupees

CAPITAL RESERVE

STATUTORY

RESERVE

Rupees

ACCUMULATED

LOSS

Rupees

SHAREHOLDERS'

EQUITY

Rupees

9

Balance as at 30 June 2022 (Audited)

Profit for the period ended 31 March 2023

Other comprehensive income for the period ended 31 March 2023 Total comprehensive income for the period ended 31 March 2023

Balance as at 31 March 2023 (Un-Audited)

Loss for the quarter ended 30 June 2023

Other comprehensive loss for the quarter ended 30 June 2023 Total comprehensive loss for the quarter ended 30 June 2023

Balance as at 30 June 2023 (Audited)

Profit for the period ended 31 March 2024

Other comprehensive income for the period ended 31 March 2024 Total comprehensive income for the period ended 31 March 2024

Balance as at 31 March 2024 (Un-Audited)

215,000,000			59,256,615
-		-
-			-
-		-
215,000,000	59,256,615
-		-
-			-
-	-
215,000,000			59,256,615
-		-
-			-
-		-
215,000,000	59,256,615

(216,321,625)

6,946,271

-

6,946,271

(209,375,354)

(1,025,102)

(754,171)

(1,779,273)

(211,154,627)

5,868,990

-

5,868,990

(205,285,637)

57,934,990

6,946,271

-

6,946,271

64,881,261

(1,025,102)

(754,171)

(1,779,273)

63,101,988

5,868,990

-

5,868,990

68,970,978

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

MUHAMMAD TAHIR BUTT	KHURRAM ANWAR KHAWAJA	MUHAMMAD FAISAL AZAM
CHIEF EXECUTIVE OFFICER		CHIEF FINANCIAL OFFICER

SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

FOR THE PERIOD ENDED 31 MARCH 2024

1LEGAL STATUS AND NATURE OF BUSINESS

Grays Leasing Limited (the Company) is a public limited Company incorporated in Pakistan under the repealed Companies Ordinance, 1984 (Now Companies, 2017). The Company's shares are listed on Pakistan Stock Exchange Limited. The Company is engaged in leasing business. It has been classified as a Non-Banking Finance Company (NBFC). Its registered office is situated at 701-A, 7th Floor, City Towers, 6-K, Main Boulevard, Gulberg-II, Lahore.

1.1 As on the reporting date, equity of the Company is Rupees 68,970,978. The Company as a non-deposit taking NBFI meets the minimum equity requirement of Rupees 50.000 million. During the period, the Company has sanctioned new leases of Rupees 59,207,123 and recovered Rupees 64,530,422 against lease finance receivable. Further, during the period, the Company earned income of Rupees 19,005,566 from lease operations and has incurred profit before taxation of Rupees 9,444,063. Sponsors of the Company have sanctioned credit facilities of Rupees 50,000,000, out of which loans of Rupees 27,000,000 have been utilized by the Company for working capital requirements. The sponsors of the Company have explicitly provided a commitment to provide the necessary support to the Company, if the need arises, to address any liquidity and minimum equity requirement to enable the Company to continue its business.

2	BASIS OF PREPARATION

2.1 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 as 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;

•Provisions of and directives issued under the Companies Act, 2017 along with part VIIIA of the repealed Companies Ordinance, 1984; and

•Non-Banking Finance Companies (Establishment and Regulations) Rules, 2003 (the NBFC Rules), Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFC Regulations).

Where provisions of and directives issued under the Companies Act, 2017, part VIIIA of the repealed Companies Ordinance, 1984, the NBFC Rules, and the NBFC Regulations differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017, part VIIIA of the repealed Companies Ordinance, 1984, the NBFC Rules, and the NBFC Regulations have been followed.

2.2 These condensed interim financial statements do not include all the information and disclosures required in annual financial statements and should be read in conjunction with the annual audited financial statements of the Company for the year ended 30 June 2023. These condensed interim financial statements are un-audited, however, have been subjected to limited scope review by the auditors and are being submitted to the shareholders as required by the Listed Companies (Code of Corporate Governance) Regulations, 2019 and Section 237 of the Companies Act, 2017.

3ACCOUNTING POLICIES

The accounting policies and methods of computations adopted for the preparation of these condensed interim financial statements are the same as applied in the preparation of the preceding audited annual published financial statements of the Company for the year ended 30 June 2023.

3.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of these condensed interim financial statements in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

During preparation of these condensed interim financial statements, the significant judgments 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 in the preceding audited annual published financial statements of the Company for the year ended 30 June 2023.

10