Shaffi Chemical Industries : Transmission of Quarterly Report for the Period Ended 2023-03-31 REVOKED

SHAFFI CHEMICAL INDUSTRIES LIMITED

Corporate Profile	1
Directors' Report	2,3
............................................................................................................	4,5
Condensed Interim Statement of Financial Position	6
Condensed Interim Statement of Profit or Loss	7
Condensed Interim Statement of Comprehensive Income	8
Condensed Interim Statement of Changes in Equity	9
Condensed Interim Statement of Cash Flows	10
Condensed Interim Notes to the Financial Information	11,12,13

SHAFFI CHEMICAL INDUSTRIES LIMITED
Mrs. Seema Iftikhar	(Chairman of Board)
HLB Ijaz Tabussum & Co.
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SHAFFI CHEMICAL INDUSTRIES LIMITED

DIRECTORS' REPORT

Dear Shareholders,

On behalf of the Board of Directors of Shaffi Chemical Industries Ltd., I place before you the quarterly financial statements of the company for the quarter ended March, 31, 2023.

FINANCIAL HIGHLIGHTS:

As already reported in Directors' Report of the latest annual financial statements that the company has settled all its liabilities with ABL and all pending litigations has also been withdrawn by the both parties. Further in order to rectify the default of clause 5.11.1(e) of PSX Regulations, the company has also paid all its outstanding annual listing fees to PSX with the request to remove the name of company from defaulter segment and to shift the company name at normal trade counter to restore the trading in the shares of our company. Meanwhile winding up petition filed by deputy registrar of companies Peshawar, which is pending before the Hon'ble High Court Peshawar, is being contested by the company vigorously and in compliance of our revival plan submitted before Hon'ble High Court Peshawar, the management has started the furniture business in the factory premises with the hope that if it is appreciated by the furniture market, the furniture business will continue to be expanded in future and for working capital requirement, the company will initiate the process for issuance of right shares to the existing shareholders in compliance of all applicable provisions of the Companies Act 2017 and all other legal forums thereon.

Accordingly, during the quarter under review, the company has secure sale revenue of Rs. 9.921 million from furniture business and earned operating profit of Rs. 2.372 million as against loss of Rs. (0.837) million of the preceding period ended March 31, 2022 whereas after adjustment of finance Cost of Rs. (2.931) million, impairment of long term investment of Rs. 0.307 million, share of Profit/(loss) from associated company of Rs. (0.183) million and tax liability of Rs. (0.394) million, the company managed to cap after tax loss at Rs. (0.829) million as compare to Rs. 1.492 million of the corresponding period ended March 31, 2022. The disputed cases relating to First Capital ABN AMRO equities (Pakistan) Ltd, Lahore Stock Exchange and others are being contested vigorously at its proper forums by your company and are explained in the latest annual financial statements for the P.E. June 30, 2022 under the title "Contingencies and Commitments".

FUTURE OUTLOOK:

As the company has settled all the disputes with Allied Bank Limited but due to the current economic condition prevailing in the country and sharp devaluation of Pak Rupee against US dollar, it is not feasible to restart its core business activities, however initially the company has started new furniture business in the factory premises to cope with saving the wealth of its minority shareholder and if feasible, the management will take necessary steps for increase of this furniture business and for required business operations, the working capital of the company shall be enhanced by issuing of right shares to the existing shareholders in due course of time in future. Meanwhile the company has requested to PSX to remove company name from defaulters' segment, so that trading in shares of the company may also be started to execute the right issuance process in near future.

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SHAFFI CHEMICAL INDUSTRIES LIMITED

EARNING PER SHARE:

The earnings per share of the company for the period under review are Rs. (0.07) as compared to Rs. 0.12 in the corresponding period ended March 31, 2022.

ACKNOWLEDGEMENT:

The Board of Directors deeply expresses its appreciation to the staff, workers and all other stakeholders for their continued support in achieving the reported level of performance.

For and on behalf of Board

IMRAN KABIR	IFTIKHAR SHAFFI
Director	Chief Executive

Lahore

Dated:- 27th April, 2023

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