Panther Tyres : Half Yearly Progress Report

PROGRESS REPORT

PANTHER TYRES LIMITED

HALF YEARLY PROGRESS REPORT

FOR THE PERIOD ENDED AUGUST 31, 2022

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PROGRESS REPORT

TABLE OF CONTENTS

INTRODUCTION……………………………………………………………………………………………………………3

IPO PROCEEDS……..………………………………………………………………………………………………………3

IMPLEMENTATION STATUS………………………………………………………………………………………….4

ANNEXURE-I PICTURES ………………………………………………………………………………………………..8

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PROGRESS REPORT

PREAMBLE

We are pleased to share the progress report for the half year period ended Aug 31, 2022. This progress report is being submitted in compliance with the requirement of Clause 16(i)(ii) of post issue reporting and disclosures of the "Public Offering Regulations, 2017" and in pursuance of the requirement specified in the clause 4.1.10 of the prospectus to the issue of the Company. The Company carried out IPO in February 2021, to partially finance its major expansion plan at estimated costs of Rs. 3.066 billion as per clause 2.1.2 of the prospectus to the issue. A sum of Rs.1.410 billion was allocated to this expansion from IPO proceeds, rest of the amount was either arranged from banks or funded through internal cash flows of the Company.

Following is the detail of capital expenditure which were planned to be funded through IPO proceeds of Rs.1.410 billion:

	Description			Funds Required			Allocation %
			(PKR)
Plant and Machinery
4 Roll Calendar Line Comerio Italy	586,310,100		41.6%
Banbury Tangential Mixer - Dalian China	328,629,670		23.3%
Freehold Land & Development Expenses	100,000,000		7.1%
Building and Civil Works
Building for Calendar Department	166,780,230		11.8%
Building for Mixing Department	167,880,000		11.9%
Building for Tube Department	60,400,000		4.3%
Total	1,410,000,000		100.0%

The detail of utilization of IPO proceeds and progress status of the expansion project as on August 31,

2022 is herein under:

IPO PROCEEDS

The Company had raised funds through issuance of 30 million ordinary shares at strike price of Rupees

65.80 per share. The net IPO proceeds generated through this transaction is detailed below:

Description	Amount (PKR)
Issuance of 30,000,000 ordinary shares at floor price of Rs. 47 per share	1,410,000,000
Excess funds received - share premium at Rs 18.80	564,000,000
Less: IPO expenses	(99,566,342)
Net IPO proceeds	1,874,433,658
Less: Funds Utilized to pay off Working Capital Loan (Ref clause 4.1.8)	*(464,433,658)
Net Funds available for expansion	1,410,000,000

*The excess funds amounting to Rupees 464.43 million received through IPO were utilized to reduce the short-term working capital limits as per clause 4.1.8. to the prospectus.

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PROGRESS REPORT

IMPLEMENTATION STATUS

The status of the expansion project as of the close of Aug 2022 is given below on prescribed format:

										Actual
	Description			Funds Required			Allocation			Expenditures till
			(PKR)			%			31 Aug-2022
										(PKR)
Plant and Machinery
4 Roll Calendar Line Comerio Italy	586,310,100		41.60%		576,512,841
Banbury Tangential Mixer	328,629,670		23.30%		906,800
Freehold Land & Development Expenses	100,000,000		7.10%		101,021,403
Building and Civil Works
Building for Calendar Department	166,780,230		11.80%		159,252,067
Building for Mixing Department	167,880,000		11.90%		274,990,537
Building for Tube Department	60,400,000		4.30%		60,810,689
	Total			1,410,000,000			100%			1,173,494,338

Brief detail of every project as mentioned above is given here below:

PLANT AND MACHINERY

Over the period of time, operational capacity of the company reached to its optimal level in all segments and some more products were also required to be added in portfolio. Accordingly, the company planned to expand its production capacities and also to bring in the new state of art tyre manufacturing technology in the back end process. In this regard, the company chalked out the whole expansion plan as detailed in prospectus to the issue.

The first phase of this expansion as earlier communicated has been completed as on September 30, 2021, which mainly included installation of machineries of front-end sections like tyre building machines, curing presses, tube splicers, PCI units, building drums, molds etc. The source of finance for these additions in P&M was long-term loans from banks in the form of TERF & LTFF facilities.

The second phase is currently in progress and has reached its final phase except one machinery which is relating to mixing department. The same is expected to arrive in the second quarter of FY2023.

Further detail of the progress of projects financed through IPO is given here below:

Commitment made in the

Start date

Completion date

Rationale for

(disclosed in the

(disclosed in the

Current status

prospectus

delay, if any

prospectus)

prospectus)

Purchase and installation of 4

Installation of

As explained

3Q FY 2021

3Q FY 2022

Calendar Line

Roll Calender line

below

in process

Purchase and installation of

L/C

As explained

3Q FY 2021

2Q FY 2022

established in

Banbury Tangential Mixer

below

3Q FY 2022

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