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Notes to the Financial Statements
For The Half Year Ended Dec. 31st, 2004 |
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| 1. |
Corporate Information
Ghandhara Nissan Limited (the Company) was incorporated on 8
August 1981 in Pakistan as a private Limited Company and
subsequently converted into a Public Limited Company on 24
May 1992. The registered office of the Company is situated
at Ghandhara House, 109/2 Clifton, Karachi. The Company's
shares are listed on Karachi Stock Exchange. The principal
activity of the Company is assembly / progressive
manufacture of Nissan passenger Cars, Trucks and Buses,
import and marketing of Nissan vehicles and assembly of
other vehicles under contract agreement |
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| 2. |
Accounting Policies |
|
2.01 |
The Accounting Policies adopted for the
preparation of the Financial Statements for the six months
ended 31st December, 2004 are same as those applied in the
preparation of the annual audited financial statements for
the year ended 30th June, 2004. |
|
2.02 |
These financial statements have
been prepared in accordance with the requirements of the
Companies Ordinance, 1984 and International Financial
Reporting Standards (IAS 34) "Interim Financial Reporting"
as applicable in Pakistan. Wherever the requirements of the
Companies Ordinance, 1984 or directives issued by the
Securities and Exchange Commission of Pakistan (SECP) differ
with the requirements of this standard, the requirements of
Companies Ordinance, 1984 or the requirements of the said
directives take the precedence. |
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| 3. |
Presentation
Figures in the financial statements have been rounded
off to the nearest thousand rupees.
All figures except 30 June 2004 figures appearing in the
financial statements are unaudited. Figures for December,
2003 represent pre merger figures of the company. |
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|
| 4. |
Operating Fixes Assets
Owned assets |
|
|
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Additions |
|
|
|
|
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Vehicles
Other equipment
Office equipment
EDP equipment |
|
1,690
1,719
35
799 |
|
-
-
-
150 |
| |
|
|
4,243 |
|
150 |
| |
|
|
|
|
|
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Disposals |
|
|
|
|
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Vehicles |
|
(845) |
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(1,150) |
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|
|
3,398 |
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(1,000) |
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|
|
|
|
|
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5. capital Work in Progress |
|
|
|
|
| |
|
|
|
|
|
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Material in
transit
Advances to supplier |
|
24,782
28,253 |
|
-
- |
| |
|
|
53,035 |
|
|
| |
|
|
|
|
|
|
|
| 5. |
long Term Loans
- The company has arranged additional term finance
facility amounting to Rs. 100 million from Saudi Pak
industrial and Agricultural investment Company (Private)
Limited for expansion of production facilities.
- The Term finance facility is repayable in six semi
annual installments commencing from 27 May 2005.
- The Term finance facility carries mark up at six
monthly KIBOR rate plus 2.5 per cent.
- There Term finance facility is secured against first
pari passu change over fixed assets amounting to Rs 125
million.
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|
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7. Related Party Transactions |
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|
|
31 Dec.
2004 |
|
31 Dec
2003 |
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|
|
(Rupees in '000') |
| |
Sales and
service
Purchases
Cost allocated
Royalty
Contract assembly charges
Commission charged
Insurance premium
Holding company:
Loan received |
|
950
18,560
-
8,710
8,120
-
4,302
- |
|
23,189
140
2,400
-
-
4,180
687
288,853 |
| |
|
|
|
|
|
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8. Non Cash Transaction |
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Financial
activities |
|
|
|
|
| |
Paid by
holding company
LMM Finance
Lease finance
Finance under mark up arrangement
Short term loan from holding company |
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-
-
-
- |
|
(46,462)
(145,795)
(34,115)
226,372 |
| |
|
|
|
|
|
| |
|
|
- |
|
- |
| |
|
|
|
|
|
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| 9. |
Commitments
Outstanding letters of credit amounting to Rs 152,258
thousand (30 June 2004: Rs 131,563 thousand). |
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| 10. |
Approval of Financial
Statements
The financial statements were approved by the Board of
Directors and authorized for issue on 23rd February, 2005. |
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|
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|
|
Ahmed Kuli Khan
Khattak
Chief Executive |
Ch. Sher Muhammad
Director |
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