Habib Rice Products : Transmission of Quarterly Report For the Period Ended - 31 March 2024

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Habib Rice Products Ltd.

3rd Quarter

Unaudited Accounts

March 31, 2024

Contents

	Page No
Company Information	1
Chairman's Review / Directors' Report	2
Condensed Interim Statement of Financial Position (Un-audited)	3
Condensed Interim Statement of Profit or Loss (Un-audited)	4
Condensed Interim Statement of Comprehensive Income (Un-audited)	5
Condensed Interim Statement of Changes in Equity (Un-audited)	6
Condensed Interim Statement of Cash Flows (Un-audited)	7
Condensed Notes to the Financial Statements (Un-audited)	8-12

COMPANY INFORMATION

BOARD OF DIRECTORS

Executive Directors

Mr. Owais G. HabibManaging Director

Mr. Tufail Y. Habib

Non Executive Directors

Mr. Gaffar A. HabibChairman

Dr. Howard J. Synenberg

Ms. Fatemah G. Habib

Dr. Salma Habib

Mr. Adil Ahmed Chapra

Mr. Asad R. Premjee

BOARD OF AUDIT COMMITTEE

Mr. Gaffar A. Habib

Ms. Fatemah G. Habib

Dr. Salma Habib

Mr. Asad R. Premjee

BOARD OF HR AND REMUNERATION COMMITTEE

Mr. Gaffar A. Habib

Mr. Tufail Y. Habib

Ms. Fatemah G. Habib

Dr. Salma Habib

Mr. Adil Ahmed Chapra

NOMINATION COMMITTEE

Mr. Gaffar A. Habib

Mr. Owais G. Habib

Mr. Tufail Y. Habib

Ms. Fatemah G. Habib

RISK MANAGEMENT COMMITTEE

Mr. Gaffar A. Habib

Mr. Owais G. Habib

Mr. Tufail Y. Habib

Dr. Salma Habib

CHIEF EXECUTIVE OFFICER

Mr. Owais G. Habib

CHIEF FINANCIAL OFFICER

Mr. Jamshed Ali Khan

COMPANY SECRETARY

Mr. Ali Asghar Rajani

AUDITORS

Grant Thornton Anjum Rahman

Chartered Accountants

SHARE REGISTRAR

M/s. CDC Share Registrar Services Ltd.

CDC House, 99-B,Block-B,

S.M.C.H.S., Main Sharah-e-Faisal, Karachi.

REGISTERED OFFICE	ADMINISTRATIVE OFFICES & FACTORY
2nd Floor, UBL Building	Ahmad Habib Boulevard,
I. I. Chundrigar Road,	Hub - 90250
Karachi - 74000, Pakistan.	Pakistan.
Telephone	: [phone]	Telephone : [phone]
Fax	: [phone]	Fax	: [phone]

1

CHAIRMAN'S REVIEW / DIRECTORS' REPORT

3rd Quarter Ended March 31, 2024 (Unaudited)

Dear Shareholders,

This year has been full of challenges - the Rice had been sprayed on - making our Protein un-exportable.

Domestic market was flooded with cheap soya meal - meant for Afghanistan, at half the International price, was retained for local consumption - dealing a fatal blow to our Protein prices.

At the time of writing this report, the Government has come to realize this tainted activity and has set a minimum prices of this soya meal which hopefully will help us in liquidating our unsold Proteins.

Sui Gas price was more than doubled - and not available compelling our operations to use very expensive furnace oil and KE power.

Our attempt to pass on the higher cost, has not been accepted by our customers.

All these factors combined has resulted in a terrible bottom line.

In closing:-Please join me in my prayers to Allah the Beneficent, the Merciful, the Provider, to solve our problems and Bless our operations with Bounties as Befits His Glory, Aameen.

On behalf of the Board,

OWAIS G. HABIB	GAFFAR A. HABIB
Chief Executive Officer	Chairman
Karachi: April 29, 2024

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Habib Rice Products Ltd.

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2024 (UN-AUDITED)

			March 31,		June 30,
		2023	2023
			(Un-audited)		(Audited)
ASSETS	Note	--------------- Rupees ---------------
NON CURRENT ASSETS
Property, plant and equipment	4	516,993,400	546,097,521
Right -of-use assets		9,462,889	4,515,643
Long-term deposits		27,282,370	26,892,370
Deferred tax		7,846,859	14,215,514
CURRENT ASSETS			561,585,518		591,721,048
Stores, spares parts and loose tools			123,838,887		120,519,353
Stock in trade	5		288,687,625		341,446,247
Trade debts	6		3,263,732		37,707,519
Loan and advances			9,343,065		4,766,535
Trade deposits, prepayments and other receivable		3,281,298		5,944,555
Short - term investments	7		257,132		195,804,425
Taxation-net			84,648,359		71,119,847
Cash and bank balances	8		82,028,937		191,015,449
			595,349,035		968,323,930
EQUITY AND LIABILITIES		1,156,934,553	1,560,044,978
SHARE CAPITAL AND RESERVES
Authorised capital		300,000,000	300,000,000
Issued,subscribed and paid-up capital		200,000,000	200,000,000
Reserves		601,224,563	901,847,270
NON-CURRENT LIABILITIES		801,224,563	1,101,847,270
Lease liabilities			-		274,711
Provision for Gas Infrastructure
Development Cess	10		-		3,187,351
CURRENT LIABILITIES			-		3,462,062
Trade and other payables	9		96,994,895		160,281,487
Current maturity of lease liabilities			781,097		561,670
Current maturity of Gas Infrastructure
Development Cess	10		216,387,175		212,070,073
Provision for gas rate revision	11		16,438,682		46,089,704
Unclaimed and unpaid dividend			25,108,141		35,732,712
			355,709,990		454,735,646
		1,156,934,553	1,560,044,978
CONTINGENCIES AND COMMITMENTS	12

The annexed notes from 1 to 15 form an integral part of these condensed interim financial statements.

OWAIS G. HABIB	JAMSHED ALI KHAN
Chief Executive Officer	Chief Financial Officer

Karachi: April 29, 2024

GAFFAR A. HABIB

Chairman

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Habib Rice Products Ltd.

CONDENSED INTERIM STATEMENT OF

PROFIT OR LOSS

FOR THE 3RD QUARTER ENDED 31 MARCH 2024 (UN-AUDITED)

			9 Months ended			Quarter ended
Note			March 31,		March 31,			March 31,	March 31,
	2024		2023		2024		2023
			-------------------------------------		Rupees -------------------------------------
Turnover - net	1,903,427,519		1,902,762,273		507,673,953		729,894,567
Cost of sales	(1,937,649,537)		(1,415,555,217)		(573,293,869)		(496,093,139)
Gross profit / (loss)	(34,222,018)		487,207,056		(65,619,916)		233,801,428
Distribution costs	(130,856,995)		(92,906,238)		(51,303,153)		(41,845,868)
Administrative expenses	(106,900,669)	(87,820,493)		(32,251,339)		(30,170,771)
Other expenses	(618,287)		(34,447,542)		551,558		(22,240,831)
Other income	67,860,011		37,087,798		20,125,030		20,783,888
Finance costs	(16,594,213)		(13,915,691)		(1,785,525)		(1,457,225)
	(221,332,171)		295,204,890			(130,283,345)		158,870,621

Gain on discounting of provision for GIDC

Profit / (Loss) before taxation

Taxation

• Current
• Prior Year
• Deferred

Profit / (Loss) for the period

11,694,161		7,379,905	-		-
(209,638,010)		302,584,795	(130,283,345)		158,870,621
(23,660,878)		(39,059,243)		(6,719,394)		(19,656,630)
(955,164)		-		(955,164)		-
(6,368,655)		(2,946,876)		(4,665,011)		(1,705,998)
(30,984,697)		(42,006,119)	(12,339,569)		(21,362,628)
(240,622,707)		260,578,676	(142,622,914)		137,507,993

Earning / (Loss) per
share - basic and diluted	(6.02)	6.51	(3.57)	3.44

The annexed notes from 1 to 15 form an integral part of these condensed interim financial statements.

OWAIS G. HABIB

Chief Executive Officer

Karachi: April 29, 2024

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JAMSHED ALI KHAN	GAFFAR A. HABIB
Chief Financial Officer	Chairman

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Habib Rice Products Ltd.

CONDENSED INTERIM STATEMENT OF

COMPREHENSIVE INCOME

FOR THE 3RD QUARTER ENDED 31 MARCH 2024 (UN-AUDITED)

		9 Months ended		Quarter ended
		March 31,	March 31,		March 31,	March 31,
	2024	2023	2024	2023
		-------------------------------------	Rupees -------------------------------------
Profit / (Loss) after
taxation	(240,622,707)	260,578,676	(142,622,914)	137,507,993
Other comprehensive
income	-	-	-	-

Total comprehensive

income / (loss) (240,622,707) 260,578,676 (142,622,914)137,507,993

The annexed notes from 1 to 15 form an integral part of these condensed interim financial statements.

OWAIS G. HABIB	JAMSHED ALI KHAN
Chief Executive Officer	Chief Financial Officer

Karachi: April 29, 2024

GAFFAR A. HABIB

Chairman

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Habib Rice Products Ltd.

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE 3RD QUARTER ENDED 31 MARCH 2024 (UN-AUDITED)

			Reserves
	Issued,	Capital	Revenue reserves	Total	Total
Particulars	Subscribed	Reserve
And Paid-up				reserves	equity
Share	General	Unappropriated
	Capital	Premium	Reserve	Profit

------------------------------------------------------- Rupees -------------------------------------------------

Balance as at 01 July 2022

Final dividend @ 40% for the year ended 30 June 2022

Interim dividend @ 40% for the year ended 30 June 2023

Net Profit

Other comprehensive income Total comprehensive income

Balance as at 31 March 2023

Balance as at 01 July 2023

Final dividend @ 30% for the year ended 30 June 2023

Net Profit / (Loss)

Other comprehensive income Total comprehensive income

Balance as at 31 March 2024

200,000,000		10,000,000	50,000,000	668,783,376	728,783,376	928,783,376
-		-	-	(80,000,000)	(80,000,000)	(80,000,000)
-		-	-	(80,000,000)	(80,000,000)	(80,000,000)
-		-	-	260,578,676	260,578,676			260,578,676
-		-	-	-	-		-
-		-	-	260,578,676	260,578,676		260,578,676
200,000,000		10,000,000	50,000,000	769,362,052	829,362,052	1,029,362,052
200,000,000		10,000,000	50,000,000	841,847,270	901,847,270	1,101,847,270
-		-	-	(60,000,000)	(60,000,000)	(60,000,000)
-		-	-	(240,622,707)	(240,622,707)			(240,622,707)
-		-	-	-	-			-
-		-	-	(240,622,707)	(240,622,707)			(240,622,707)
200,000,000	10,000,000	50,000,000	541,224,563	601,224,563	801,224,563

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The annexed notes from 1 to 15 form an integral part of these condensed interim financial statements.

	OWAIS G. HABIB	JAMSHED ALI KHAN	GAFFAR A. HABIB
Karachi: April 29, 2024	Chief Executive Officer	Chief Financial Officer	Chairman

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CONDENSED INTERIM STATEMENT OF CASH FLOWS

FOR THE 3RD QUARTER ENDED 31 MARCH 2024 (UN-AUDITED)

			March 31,		March 31,
		2024	2023
			(Un-audited)(Un-audited)
CASH FLOWS FROM OPERATING ACTIVITIES	Note	--------------- Rupees ---------------
Profit / (Loss) before taxation		(209,638,010)	302,584,795
Adjustments for non cash Items:
Depreciation on operating fixed assets	4.1	37,329,012	40,701,428
Depreciation on right-of-use assets		9,707,169	8,755,821
Profit on term deposits receipts and
interest on savings accounts		(38,972,811)	(29,068,368)
Dividend income on mutual fund units		(3,287,956)	(1,278,427)
Dividend income - BAHL		-	(5,293,953)
Gain on disposal of operating fixed assets		(4,188)	(20,616)
Unrealised fair value gain / loss on
short-term investments		(8,631,238)	11,767,701
Gain on remeasurement of provision for GIDC - net		(11,694,161)	(7,379,905)
Finance costs		16,594,213	13,915,691
Operating profit before working capital changes			(208,597,970)		334,684,167
Working capital changes	13	(10,968,012)	(74,062,905)
Cash generated from operations			(219,565,982)		260,621,262
Taxes refunded / paid			(38,144,554)		(33,231,757)
Finance costs paid			(3,221,713)		(2,420,828)
Long term deposits - net			(390,000)		(401,500)
Net cash generated from operating activities			(41,756,267)		(36,054,085)
		(261,322,249)		224,567,177
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure			(8,299,696)		(24,045,394)
Short term investments - net			202,410,552		99,885,570
Profit on term receipts and interest on
saving accounts received			40,995,240		28,560,664
Dividend income received - Mutual funds			3,287,956		1,278,427
Dividend income received - BAHL			-		5,293,953
Proceeds from disposal of operating fixed assets			78,993		82,000
Net cash generated from / (used in) investing activities		238,473,045		111,055,220
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid			(70,624,571)		(163,024,486)
Lease rentals paid			(15,258,287)		(4,078,344)
Net cash used in financing activities			(85,882,858)		(167,102,830)
Net (increase) / decrease in cash and cash equivalents		(108,732,062)	168,519,567
Cash and cash equivalents at beginning of the period	191,015,449	109,083,841
Cash and cash equivalents at end of the period	8
	82,283,387		277,603,408

The annexed notes from 1 to 15 form an integral part of these condensed interim financial statements.

OWAIS G. HABIB	JAMSHED ALI KHAN
Chief Executive Officer	Chief Financial Officer

Karachi: April 29, 2024

GAFFAR A. HABIB

Chairman

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NOTES TO THE CONDENSED INTERIM

FINANCIAL STATEMENTS

FOR THE 3RD QUARTER ENDED 31 MARCH 2024 (UN-AUDITED)

• THE COMPANY AND ITS OPERATIONS

Habib Rice Products Limited (the Company) is a public listed company limited by shares incorporated in Pakistan on July 10, 1980 and is listed on the Pakistan Stock Exchange. The registered office of the Company is situated at 2nd Floor, UBL Building I.I. Chundrigar Road, Karachi. The Company is engaged in the production of rice based starch sugar and proteins. The Company's primary production facility is located at its industrial complex in Hub Industrial Area, District Lasbela, Baluchistan.

• 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; and
• Provisions of and directives issued under the Companies 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 have been followed.

1. 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 Company's annual financial statements for the year ended 30 June 2023. These condensed interim financial statements are unaudited.
2. The figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the quarters ended 31 March 2024 and 31 March 2023 and notes forming part thereof have not been reviewed by the auditors of the Company, as they have reviewed the cumulative figures for the half years ended 31 December 2023 and 31 December 2022.
3. These condensed interim financial statements are presented in the Pakistani rupees which is also the Company's functional currency

• ACCOUNTING POLICIES, ESTIMATES, JUDGEMENTS AND FINANCIAL RISK POLICIES
  The accounting policies, estimates, judgements and financial risk policies used in these condensed interim financial statements are the same as those applied in the preparation of annual financial statements for the year ended 30 June 2023.

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