3

Ghani Global Group

Faith
Experience
Innovation
Growth

HALF YEARLY
December 31, 2023

Ghani Chemical Industries Limited

 CORPORATE INFORMATION
BOARD OF DIRECTORS BOARD COMMITTEES
Masroor Ahmad Khan Audit & Risk Management Committee
(Chairman)
Shiekh Muhammad Saleem Ahsan
Haz Farooq Ahmad (Chairman)
(Chief Executive Ofcer)
Masroor Ahmad Khan
Atique Ahmad Khan
Rabia Atique Rabia Atique
Muhammad Yahya HR&R and Compensation Committee
Haz Imran Lateef Haz Imran Lateef
Shiekh Muhammad Saleem Ahsan (Chairman)
Rabia Atique
MANAGEMENT TEAM Haz Farooq Ahmad
M. Ashraf Bawany Muhammad Yahya
(President)

Asim Mahmud BANKERS

(Director Finance / CFO) Albaraka Bank Pakistan Limited
Farzand Ali Allied Bank Limited
(GM Corporate / Company Secretary) Askari Bank Limited
Syed Sibtul Hassan Gilani Bank Alfalah Limited
(GM Procurement & Imports) Bank Islami (Pakistan) Limited
Bilal Butt Dubai Islamic Bank Limited
(GM Sales & Marketing)
Faysal Bank Limited
Abid Ameen Habib Bank Limited
(Head of Plants)
Habib Metro Bank Limited
JS Bank Limited
EXTERNAL AUDITORS Meezan Bank Limited
ShineWing Hameed Chaudhri & Co.
National Bank of Pakistan
Chartered Accountants
Soneri Bank Limtied
The Bank of Punjab
SHARIAH ADVISOR (SUKUK) REGISTERED/CORPORATE OFFICE
Al Halal Shariah Advisors (Private) Limited 10-N, Model Town Ext, Lahore.
UAN: 111 GHANI 1 (442-641)
CREDIT RATING Fax: (092) 042-35160393
Long term rating A E-mail: info.gases@ghaniglobal.com
Short term rating A1 Website: www.ghaniglobal.com
(by The Pakistan Credit Rating Agency Limited)
REGIONAL MARKETING OFFICE
C-7/A, Block F, Gulshan-e-Jamal
LEGAL ADVISOR Rashid Minhas Road, Karachi.
Asif Mahmood Khan, Advocate Ph: 021-34572150
DSK Law Firm, Lahore. MANUFACTURING PLANTS
- Phool Nagar, Tehsil Pattoki.
Distt. Kasur, Punjab.
SHARE REGISTRAR
Corplink (Private) Limited - Eastern Industrial Zone, Port Qasim,
Wings Arcade, 1-K Commercial, Karachi, Sindh.
Model Town, Lahore-Pakistan. - Hattar Special Economic Zone,
Tell: 042-35916714 Distt. Haripur, KPK.

Ghani Chemical Industries Limited 01 Half Year December 31, 2023

 DIRECTORS’ REVIEW

DEAR SHAREHOLDERS,
Assalam-o-Alaikum Wa RehmatUllah Wa Barakatoh
The Directors of your Company are pleased to present the unaudited reviewed condensed interim nancial statements of the
Company for the half year ended December 31, 2023, along with review report of the Auditors thereon, in compliance with the
requirements of Companies Act, 2017.

FINANCIAL PERFORMANCE
By the grace of Almighty Allah despite all adverse economic factors during the period under review, your Company improved
the sales / turnover and protability as compared to the same period of last year. For the period ended December 2023, your
company closed sales amounting to Rs. 2,910 million as compared to corresponding last period end sales of Rs. 2,484 million
showing the 17% increase. Gross prot increased to Rs. 862 million from Rs. 773 million as compared to same period in last
year. Distribution cost and administrative cost incurred during period is Rs. 79 million and Rs. 108 million whereas for the
comparative period it was Rs. 105 million and Rs. 120 million, respectively. Prot from operations increased to around 36%
from 31% last year, by grace of Almighty Allah.

Finance cost decreased for the period incurred on the long term nance and working capital lines to Rs. 212 million compared to
Rs. 214 million for the last period. Alhamdulillah Company earned prot after tax amounting to Rs. 456 million as compared to the
comparative period which was Rs. 254 million ALHAMDULILLAH. As a result Earnings per share improved as Rs. 0.92 as
compared to last period's Earnings per share of Rs. 0.53.

December 30, 2023 December 30, 2022

Particulars
(Rupees in’000 ) (Rupees in’000 )
Gross sales 2,910,545 2,484,048
Sales – net 2,465,036 2,123,848
Gross prot 862,383 772,627
Administrative expenses 108,168 120,156
Selling and distribution expenses 79,089 105,312
Prot from operations 897,738 662,894
Finance cost 211,528 213,526
Prot after taxation 456,025 254,212
Earnings per share - basic and diluted (Rupees) 0.92 0.53
FUTURE PROSPECTS
Your Company has been taking bold steps for new developments in healthcare both in public and private sector across the
country with increasing emphasis on a healthier and generally better quality of life. In addition to oxygen, nitrous oxide, and other
industrial gases like Liquid Nitrogen being prepared for use in pharmaceutical-based products as well as in food and beverage
industry.

To overcome the high utility price issue (being the only raw material for manufacturing of medical and industrial gases), your
Company has decided to set up 07MW Coal Power Plant based on mix of local & imported coal in Port Qasim and/or any other
nearby suitable location at a projected cost of US$5.00-5.5M. By setting up of this project, it is expected to save 45-50% power
cost of Air Separation Unit (ASU) plants of the Company installed at Port Qasim, Karachi. This will also provide strong
competitive advantage as power is major element in Production Cost.

Ghani Chemical Industries Limited 02 Half Year December 31, 2023

Your Company is in process to setup Pakistan's largest and the company's 5th 275TPD ASU plant for manufacturing of medical
and industrial gases at Hattar Special Economic Zone. Alhamdulillah, import portion of Plant and Machinery of this project has
arrived, unloaded and custom cleared. In addition to above, your Company is also in process for set up of import substitute
calcium carbide manufacturing project at Hattar Special Economic Zone. Hopefully this project will save millions of US$ and shall
also open the doors for earning foreign exchange for the country. Both the projects are expected to be in operation during
April/May 2024.
To meet the additional requirements of medical and industrial gases in Southern Region of the country, your Company has
decided to relocate one of the 110TPD ASU plant installed at Phool Nagar (out of two) at some suitable location after installation
& commissioning of Hattar Plant.

ACKNOWLEDGEMENTS
Indeed, all growth in the business of the Company was not possible without the Will and Blessings of ALMIGHTY ALLAH. The
Board of Directors wishes to express their gratitude to valued shareholders, banks/nancial Institutions, and suppliers for their
continuous support, cooperation and patronage. We also wish to place on record the dedication, hard work and diligence of
executives, staff and workers of the company.

For and behalf of Board of Directors

Lahore: HAFIZ FAROOQ AHMAD ATIQUE AHMAD KHAN

February 28, 2024 (Chief Executive Ofcer) (Director)

Ghani Chemical Industries Limited 03 Half Year December 31, 2023

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Ghani Chemical Industries Limited 04 Half Year December 31, 2023

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December 30, 2023 December 30, 2022

Particulars
(Rupees in’000 ) (Rupees in’000 )
Gross sales 2,910,545 2,484,048
Sales – net 2,465,036 2,123,848
Gross prot 862,383 772,627
Administrative expenses 108,168 120,156
Selling and distribution expenses 79,089 105,312
Prot from operations 897,738 662,894
Finance cost 211,528 213,526
Prot after taxation 456,025 254,212
Earnings per share - basic and diluted (Rupees) 0.92 0.53

Ghani Chemical Industries Limited 05 Half Year December 31, 2023

Ghani Chemical Industries Limited 06 Half Year December 31, 2023
 Ghani Chemical Industries Limited
Condensed Interim Statement of Financial Position as at December 31, 2023

Dec. 31, June 30,

2023 2023
Un-audited Audited
ASSETS Note Rupees in thousand
Non-current assets
Property, plant and equipment 5 9,431,452 7,210,169
Right of use assets 492,117 498,874
Intangible assets 1,479 1,479
Long term deposits 67,193 67,193
9,992,241 7,777,715
Current assets
Stores, spares and loose tools 396,301 313,845
Stock-in-trade 294,507 79,375
Trade debts 6 1,327,432 1,020,529
Loan and advances 7 1,406,707 1,582,155
Deposits, prepayments and other receivables 469,935 443,570
Sales tax refunds due from Government 54,062 34,230
Advance income tax 247,033 440,031
Short term investments - term deposit receipts 250,000 911,000
Cash and bank balances 8 947,507 525,173
5,393,484 5,349,908
Total assets 15,385,725 13,127,623
Equity and liabilities
Share capital and reserves
Authorised share capital 8,500,000 8,500,000
Issued, subscribed and paid-up share capital 5,001,879 5,001,879
Share premium 164,011 164,011
Revaluation surplus on freehold and leasehold land 497,278 497,278
Merger reserve 1,342,746 1,342,746
Unappropriated profit 2,280,069 1,824,044
Total equity 9,285,983 8,829,958
Non-current liabilities
Long term finances 9 1,940,331 1,270,043
Redeemable capital 10 420,000 0
Long term security deposits 55,069 49,091
Lease liabilities 5,593 5,805
Deferred liabilities 11 769,506 662,815
3,190,499 1,987,754
Current liabilities
Trade and other payables 12 364,077 350,096
Contract liabilities - advances from customers 236,327 59,745
Accrued profit 230,134 122,787
Unclaimed dividend 491 491
Short term borrowings 1,605,139 1,127,439
Current portion of non-current liabilities 353,881 407,883
T axation 13 119,194 241,470
2,909,243 2,309,911
Total liabilities 6,099,742 4,297,665
Contingencies and commitments 14
Total equity and liabilities 15,385,725 13,127,623

The annexed notes 1 to 21 form an integral part of these condensed interim financial statements.

Hafiz Farooq Ahmad Asim Mahmud Atique Ahmad Khan

(Chief Executive Officer) (Chief Financial Officer) (Director)

Ghani Chemical Industries Limited 07 Half Year December 31, 2023

 Ghani Chemical Industries Limited
Condensed Interim Statement of Profit or Loss & Other
Comprehensive Income (Un-audited)
For the Quarter and Six Months Period Ended December 31, 2023

Six months period ended Quarter ended

Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2023 2022 2023 2022
Note ---------------- Rupees in thousand ----------------

Sales 2,910,545 2,484,048 1,476,275 1,217,585

Less: sales tax (445,509) (360,200) (223,935) (169,782)

Sales - net 2,465,036 2,123,848 1,252,340 1,047,803

Cost of sales (1,602,653) (1,351,221) (831,645) (665,529)

Gross profit 862,383 772,627 420,695 382,274

Distribution cost (79,089) (105,312) (35,888) (22,881)

Administrative expenses (108,168) (120,156) (58,237) (79,615)

Other expenses (53,910) (38,981) (29,329) (23,428)

Other income 15 276,522 154,716 169,954 126,767

35,355 (109,733) 46,500 843

Profit from operations 897,738 662,894 467,195 383,117

Finance cost (211,528) (213,526) (107,948) (109,101)

Profit before taxation 686,210 449,368 359,247 274,016

Taxation 16 230,185 195,156 129,209 142,514

Profit after taxation 456,025 254,212 230,038 131,502

Other comprehensive income 0 0 0 0

Total comprehensive income
for the period 456,025 254,212 230,038 131,502

---------------------------- Rupee --------------------------

Earnings per share 0.92 0.53 0.47 0.28

The annexed notes 1 to 21 form an integral part of these condensed interim financial statements.

Hafiz Farooq Ahmad Asim Mahmud Atique Ahmad Khan

(Chief Executive Officer) (Chief Financial Officer) (Director)

Ghani Chemical Industries Limited 08 Half Year December 31, 2023

 Ghani Chemical Industries Limited
Condensed Interim Statement of Changes in Equity (Un-audited)
For the Six Months Period Ended December 31, 2023

Capital reserves

Revenue
Revaluation reserve -
Share
surplus on unappr- Total
capital Share Merger
freehold and opriated
premium reserves
leasehold land profit

--------------------------------- Rupees in thousand ----------------------------------

Balance as at June 30, 2023 (audited) 5,001,879 164,011 497,278 1,342,746 1,824,044 8,829,958

Total comprehensive income for the period

of six months ended December 31, 2023 0 0 0 0 456,025 456,025

Balance as at December 31, 2023 (un-audited) 5,001,879 164,011 497,278 1,342,746 2,280,069 9,285,983

Balance as at June 30, 2022 (Re-stated) 4,347,163 300,000 298,727 1,342,746 1,316,153 7,604,789

Proceeds from right shares

issued during the period 220,000 0 0 0 0 220,000

Bonus shares issued during the period 434,716 (135,989) (298,727) 0 0 0

Total comprehensive income for the period

of six months ended December 31, 2022 0 0 0 0 254,212 254,212

Balance as at December 31, 2022 (un-audited) 5,001,879 164,011 0 1,342,746 1,570,365 8,079,001

The annexed notes 1 to 21 form an integral part of these condensed interim financial statements.

Hafiz Farooq Ahmad Asim Mahmud Atique Ahmad Khan

(Chief Executive Officer) (Chief Financial Officer) (Director)

Ghani Chemical Industries Limited 09 Half Year December 31, 2023

 Ghani Chemical Industries Limited
Condensed Interim Statement of Cash Flows (Un-audited)
For the Six Months Period Ended December 31, 2023
Six months period ended
Dec. 31, Dec. 31,
2023 2022
Cash flows from operating activities (Rupees in thousand)
Profit for the period - before taxation 686,210 449,368
Adjustments for non-cash charges and other items:
Finance cost 211,528 213,526
Depreciation 82,487 83,582
Amortisation of intangible assets 0 1,480
Amortisation of right-of-use assets 6,757 5,267
Gain on disposal of operating fixed assets (53,266) (4,709)
Gain on sale of held-for-sale investments 0 (12,361)
Provision for Gas Infrastructure Development Cess 403 0
Loss on forward foreign exchange contracts 2,022 0
Allowance for expected credit loss 0 5,000
Amortisation of deferred income (3,909) (323)
Profit before working capital changes 932,232 740,830
Effect on cash flows due to working capital changes
(Increase) / decrease in current assets:
Stores, spares and loose tools (82,456) (126,039)
Stock-in-trade (215,132) 63,728
Trade debts (306,903) 71,495
Loans and advances 175,448 (1,287,836)
Deposits, prepayments and other receivables (26,365) (94,209)
Short term investments - term deposit receipts 661,000 (401,000)
Sales tax refunds due from Government (19,832) 16,084
Increase / (decrease) in current liabilities:
Trade and other payables and contract liabilities 188,541 (141,969)
374,301 (1,899,746)
Cash generated from / (used in) operations 1,306,533 (1,158,916)
T axation - net (47,218) (136,067)
Net cash generated from / (used in) operating activities 1,259,315 (1,294,983)
Cash flows from investing activities
Fixed capital expenditure (2,430,218) 34,563
Proceeds from sale of operating fixed assets 179,714 7,225
Proceeds from investments held-for-sale 0 638,990
Net cash (used in) / generated from investing activities (2,250,504) 680,778
Cash flows from financing activities
Proceeds from right issue 0 220,000
Long term finances - net 722,555 562,549
Redeemable capital - Sukuk (redeemed) - net 311,667 (108,333)
Lease liabilities (196) (433)
Long term security deposits - net 5,978 4,075
Short term borrowings - net 477,700 209,137
Finance cost paid (104,181) (164,988)
Net cash generated from financing activities 1,413,523 722,007
Net increase in cash and cash equivalents 422,334 107,802
Cash and cash equivalents at beginning of the period 525,173 855,168
Cash and cash equivalents at end of the period 947,507 962,970
The annexed notes 1 to 21 form an integral part of these condensed interim financial statements.

Hafiz Farooq Ahmad Asim Mahmud Atique Ahmad Khan

(Chief Executive Officer) (Chief Financial Officer) (Director)

Ghani Chemical Industries Limited 10 Half Year December 31, 2023

 Ghani Chemical Industries Limited
Notes to the Condensed Interim Financial Statements (Un-audited)
For the Six Months Period Ended December 31, 2023
.
1. Legal status and operations

Ghani Chemical Industries Ltd. (the Company) was incorporated in Pakistan as a private
limited company on November 23, 2015 under the repealed Companies Ordinance, 1984
(now the Companies Act, 2017) and was converted into a public limited company on April
20, 2017. The Company is principally engaged in manufacturing, sale and trading of medical
& industrial gases and chemicals. The registered office and head office of the Company are
situated at 10-N, Model T own Extension, Lahore whereas production facilities are situated at
Phool Nagar, District Kasur and Industrial Zone, Port Qasim, Karachi. The Company’s
liaison office is situated in Sangjani, District Rawalpindi.
The Company is a Subsidiary of Ghani Global Holdings Ltd., which holds 279,905,983 (June
30, 2023: 279,905,983) ordinary shares of the Company representing 55.96% (June 30,
2023: 58.53%) of its paid-up capital as at December 31, 2023.
As per the Scheme of Compromises, Arrangement and Reconstruction, as sanctioned by the
Lahore High Court, Lahore on February 06, 2019, the Holding Company had transferred its
manufacturing undertaking to the Company on July 08, 2019 after the effective date.
2. Basis of preparation
2.1 Statement of compliance
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;
- Islamic Financial Accounting Standards issued by the Institute of Chartered Accountants
of Pakistan 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.
2.2 These condensed interim financial statements do not include all of the information required
for annual financial statements and should be read in conjunction with the annual audited
financial statements of the Company as at and for the year ended June 30, 2023. Selected
explanatory notes are included to explain events and transactions that are significant to the
understanding of the changes in the Company's financial position and performance since the
last annual audited financial statements.
2.3 These condensed interim financial statements are un-audited and are being submitted to
the members as required by section 237 of the Companies Act, 2017. The figures for the six
months period ended December 31, 2023 have, however, been subjected to limited scope
review by the external Auditors.
2.4 Basis of measurement
These condensed interim financial statements have been prepared under the historical
cost convention except property, plant and equipment at revalued amounts assessed by an
independent valuer.

Ghani Chemical Industries Limited 11 Half Year December 31, 2023

 2.5 Functional and presentation currency

These condensed interim financial statements are presented in Pak Rupees, which is also
the Company’s functional currency. All amounts have been rounded to the nearest
thousand, unless otherwise stated.
3. Significant accounting policies

The accounting policies adopted for the preparation of these condensed interim financial
statements are the same as those applied in preparation of audited financial statements of
the Company as at and for the year ended June 30, 2023.

3.1 Changes In Accounting Standards, Interpretations And Amendments To Published

Approved Accounting Standards
a) Standards, interpretations and amendments to published approved accounting
standards that are effective
There are certain amendments and interpretations to the accounting and reporting
standards which are mandatory for the Company's annual accounting periods which began
on July 01, 2023. However, these do not have any significant impact on the Company's
financial reporting.
b) Standards, interpretations and amendments to published approved accounting
standards that are not yet effective
There are certain amendments and interpretations to the accounting and reporting standards
that will be mandatory for the Company's annual accounting periods beginning on or after
July 01, 2024. However, these will not have any material impact on the Company's financial
reporting and, therefore, have not been disclosed in these condensed interim financial
statements.
4. Accounting estimates and judgements
The preparation of these condensed interim financial statements requires management to
make judgements, estimates and assumptions that affect the application of the accounting
policies and the reported amounts of assets and liabilities, income and expenses. Actual
results may differ from these estimates.

In preparing these condensed interim financial statements, the significant judgements made
by management in applying the Company's accounting policies and the key sources of
estimation uncertainty were the same as those applied to the financial statements for the
year ended June 30, 2023.

5. Property, plant and equipment Un-audited Audited

Dec. 31, June 30,
2023 2023
Note Rupees in thousand
Operating fixed assets 5.1 6,605,648 6,241,673
Capital work-in-progress
- buildings 124,379
- plant and machinery 2,239,025 209,889
Stores held for capital expenditure 462,400 758,607

9,431,452 7,210,169

Ghani Chemical Industries Limited 12 Half Year December 31, 2023

 Un-audited Audited
Dec. 31, June 30,
2023 2023
Note Rupees in thousand
5.1 Operating fixed assets - tangible
Book value as at June 30, 2023 6,241,673
Add: additions made during the period
- building 399
- plant and machinery 361,332
- furniture and fixtures 1,229
- office equipment 2,851
- computers and accessories 870
- vehicles 206,229

572,910
Book value of operating fixed assets sold (126,448)
Depreciation charge for the period (82,487)

Book value as at December 31, 2023 6,605,648

6. Trade debts - unsecured

Considered good 1,327,432 1,020,529
Considered doubtful 19,856 19,856
1,347,288 1,040,385
Allowance for expected credit loss (19,856) (19,856)

1,327,432 1,020,529

6.1 Receivables from the government institutions aggregate to Rs.646.330 million as at

December 31, 2023 (June 30, 2023: Rs.396.069 million).
7. Loans and advances - unsecured, considered good
Advances to:
- employees against expenses 7,727 4,853
- employees against salaries 92 92
- suppliers and contractors 362,166 205,691
Due from related parties 7.1 1,029,055 866,331
Letters of credit 9,152 506,673
1,408,192 1,583,640
Allowance for impairment (1,485) (1,485)
1,406,707 1,582,155
7.1 Period end balance includes due from Ghani Global Glass Ltd. (GGGL) amounting
Rs.983.113 million (June 30, 2023 Rs.866.059 million) and from Ghani Global Holdings Ltd.
(the Holding Company) amounting Rs.45.942 million (June 30, 2023 Rs.0.272 million).
7.2 Maximum amounts due from GGGL at the end of any month during the period was
Rs.870.428 million (June 30, 2023: Rs.866.519 million).
7.3 Maximum amount due from the Holding Company at the end of any month during the period
was Rs.46.000 million (June 30, 2023: Rs.0.272 million).

Ghani Chemical Industries Limited 13 Half Year December 31, 2023

 Un-audited Audited
Dec. 31, June 30,
2023 2023
8. Cash and bank balances Rupees in thousand
Cash-in-hand 1,586 392
Pay orders in hand 64,000 0
Cash at banks on:
- current accounts 414,770 233,583
- deposit / saving accounts 467,151 291,198
881,921 524,781

947,507 525,173
9. Long term finances
From banking companies - secured
Diminishing Musharakah 434 1,279
Diminishing Musharakah 750 750
Diminishing Musharakah 190,890 245,440
Diminishing Musharakah and Islamic Refinance Facility 6,858 11,429
Diminishing Musharakah 500,000 0
Diminishing Musharakah (ITERF) 363,163 395,835
Long Term Islamic Finance Facility 283,176 283,176
Shirkatul Milk 136,583 0
Diminishing Musharakah 499,993 499,993
From Islamic Financial Institutions - secured
Diminishing Musharakah 2,649 4,029
Diminishing Musharakah 179,990 0
Others
From sponsoring directors - unsecured 52,000 52,000
2,216,486 1,493,931
Current portion grouped under current liabilities (276,155) (223,888)
1,940,331 1,270,043

10. Redeemable capital - sukuk

Balance as at June 30, 2023 162,500
Sukuk issue made during the period 420,000
Less : certificates redeemed during the period (108,333)

Balance as at December 31, 2023 474,167

Current portion grouped under current liabilities (54,167)

420,000

11. Deferred liabilities

Gas infrastructure development cess 5,750 7,991

Deferred income - Government grant 14,056 17,369

Deferred taxation 749,700 637,455

769,506 662,815

Ghani Chemical Industries Limited 14 Half Year December 31, 2023

 12. Trade and other payables Un-audited Audited
Dec. 31, June 30,
2023 2023
Rupees in thousand

Trade creditors 107,959 252,910

Accrued liabilities 158,160 24,419
Workers' (profit) participation fund 36,915 18,328
Workers' welfare fund 52,869 46,764
Payable to employees' provident fund 1 13
Withholding income tax 8,173 7,662

364,077 350,096
13. Provision for taxation - net
Balance as at June 30, 2023 241,470
Add: provision made during the period:
current period 117,377
prior year 564
117,941
359,411
Less: payments / adjustments made against
completed assessments 240,217

Balance as at December 31, 2023 119,194

13.1 Income tax assessments of the Company have been completed up to the tax year 2023 i.e.
accounting year ended June 30, 2023.
13.2 Income tax expense is recognised in each interim period based on best estimate. Amounts
accrued for income tax expense in one interim period may have to be adjusted in a
subsequent interim period of that financial year if the estimate changes.
13.3 Provision for Super T ax amounting Rs.62.254 million approximately has not been made in
these condensed interim financial statements based on the fact that additions of Rs.3 billion
approximately are expected to be capitalised in the second half year ending June 30, 2024.
The management anticipates that due to availability of initial allowance and tax depreciation,
the Company's taxable profit for the year ending June 30, 2024 will not fall under the slab
applicable for Super Tax.

14. Contingencies and commitments

Contingencies
14.1 The Company has filed two separate constitutional petitions on February 15, 2009 before the
Lahore High Court (the LHC), Lahore on the ground that the Company was not required to
pay any advance tax on electricity bills due to huge carried forward tax losses and available
refunds. The LHC has granted stay orders upon furnishing of bank guarantees in favour of
LESCO amounting Rs.3.140 million. The outcome of the cases is pending and the
management is hopeful that matter shall be decided in favour of the Company.

14.2 During the financial year ended June 30, 2020, the Company has filed a writ petition before
the Sindh High Court, Karachi against Federation of Pakistan owing to dispute between K-
Electric regarding origination bill including amount of Rs.35.858 million in lieu of Industrial
Support Package (ISPA). As per order of the Sindh High Court dated May 05, 2020; the
Company has submitted post-dated cheques of the involved amount to the Court for further
proceeding of the matter. The management is of the view that the case will be decided in
favour of the Company.

Ghani Chemical Industries Limited 15 Half Year December 31, 2023

 14.3 The Department has filed references before the Lahore High Court against the orders
passed by the Appellate Tribunal in favour of the Company for the T ax Years 2011 and
2014.The references are pending adjudication.
14.4 The un-availed funded and unfunded credit facilities from banks (other than loans from
directors) as of reporting date were for Rs.1,906.421 million (June 30, 2023: Rs.403.840
million). These limits include credit lines that are interchangeable and may be utilised for
either funded facilities or unfunded facilities.

14.5 Bank guarantees aggregating Rs.103.342 million (June 30, 2023: Rs.133.670 million) have
been provided to various customers / institutions against supplies of products.

Commitments
14.6 Commitments in respect of letters of credit amounted to Rs.355.500 million as at December
31, 2023 (June 30, 2023: Rs.1,943.721 million).

14.7 Commitments for construction of buildings as at December 31, 2023 amounted Rs.140
million (June 30, 2023: Rs.200 million).
Six months period ended
Dec. 31, Dec. 31,
2023 2022
15. Other income Rupees in thousand
Profit on bank deposits 92,579 79,532
Return on advances to Holding Company
and Associated Companies 101,481 58,114
Gain on sale of investments held-for-sale 0 12,361
Gain on disposal of operating fixed assets 53,266 4,709
Compensation charges recovered from Engro
Polymer and Chemicals Ltd. due to
short lifting of chemical supplies 29,196 0

276,522 154,716
16. Taxation
Current
- for the period (note 13) 117,377
- prior year (note 13) 564
Deferred 112,244

230,185
17. Transactions with related parties
Material transactions with related parties during the period were as follows :
Relationship with related party
Nature of transaction

Holding Company Commission against

Corporate guarantees 3,600 1,908
Return on advances 2,119 0
Associated Company
- Ghani Global Glass Ltd. Sale of raw materials 32,959 80,129
Return on advances given 99,362 40,513
Sharing of expenses 268,382 179,733
Sale of plant & machinery 82,600 0
Provident fund trust Contribution paid 16,090 14,795

Ghani Chemical Industries Limited 16 Half Year December 31, 2023

 18. Segment reporting

18.1 The Company has following two strategic divisions which are its reportable segments.
Following summary describes the operations of each reportable segments:

a) Industrial Chemicals

This segment covers business of trading of chemicals.

b) Industrial and Medical Gases

This segment covers business with large-scale industrial consumers, typically in the oil,
chemical, food and beverage, metal, glass sectors and medical customers in healthcare
sectors. Gases and services are supplied as part of customer specific solutions and range
from supply by road tankers in liquefied form. Gases for cutting and welding, hospital,
laboratory applications and a variety of medical purposes are also distributed under pressure
in cylinders.

18.2 Segment results were as follows:

Six months ended December 31, 2023 Six months ended December 31, 2022
Industrial Industrial
and Industrial and Industrial
T otal T otal
Medical Chemicals Medical Chemicals
Gases Gases
------------------------------------------- Rupees in thousand -----------------------------------

Net sales 2,348,497 116,539 2,465,036 1,751,399 372,449 2,123,848

Cost of sales (1,500,453) (102,200) (1,602,653) (993,621) (357,600) (1,351,221)
Gross profit 848,044 14,339 862,383 757,778 14,849 772,627

Distribution cost (76,716) (2,373) (79,089) (102,153) (3,159) (105,312)

Administrative expenses (102,760) (5,408) (108,168) (114,148) (6,008) (120,156)
(179,476) (7,781) (187,257) (216,301) (9,167) (225,468)

Segment profit 668,568 6,558 675,126 541,477 5,682 547,159

Unallocated corporate expenses

Other expenses (53,910) (38,981)
Other income 276,522 154,716
897,738 662,894
Finance cost (211,528) (213,526)
Profit before taxation 686,210 449,368
T axation (230,185) (195,156)
Profit after taxation 456,025 254,212

As at December 31, 2023 As at December 31, 2022

Industrial Industrial
Industrial Industrial
and T otal and T otal
Chemicals Chemicals
Medical Medical
------------------------------------ Rupees in thousand ------------------------------------
Segment assets 11,592,739 2,687 11,595,426 9,168,095 30,018 9,198,113
Unallocated assets 3,790,299 3,330,171
T otal assets 15,385,725 12,528,284
Segment liabilities 2,477,618 142,959 2,620,577 2,038,993 11,171 2,050,164
Unallocated liabilities 3,479,165 2,399,119
T otal liabilities 6,099,742 4,449,283

- All the non-current assets of the Company at the reporting date were located within
Pakistan. Depreciation expense mainly relates to industrial and medical gases segment.

Ghani Chemical Industries Limited 17 Half Year December 31, 2023

 - Transfers between business segments are recorded at cost. There were no inter segment
transfers during the period .

- One of the Company's customers having net sales aggregating Rs.704.269 million
contributed towards 28.57% of the Company's net sales.

19. Financial risk management

19.1 Financial risk factors

The Company’s activities expose it to a variety of financial risks: market risk (including
currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit
risk and liquidity risk.

These condensed interim financial statements do not include all financial risk management
information and disclosures required in the annual financial statements and should be read
in conjunction with the Company's financial statements as at and for the year ended June
30, 2023.

There have been no changes in the risk management department or in any risk
management policies since the year ended June 30, 2023.

19.2. Fair value estimation

During the period, there were no significant changes in the business or economic
circumstances that affect the fair value of the Company's financial assets and financial
liabilities. Further, there were no reclassifications of financial assets.

20. Corresponding figures

The comparative condensed interim statement of financial position presented in these

condensed interim financial statements has been extracted from the audited financial
statements of the Company for the year ended June 30, 2023, whereas the comparative
condensed interim statement of profit or loss & other comprehensive income, condensed
interim statement of changes in equity and condensed interim statement of cash flows have
been extracted from the un-audited condensed interim financial statements for the period
ended December 31, 2022.

21. Date of authorisation for issue

These condensed interim financial statements were approved and authorised for issue by
the Board of Directors of the Company on February 28, 2024 .

Hafiz Farooq Ahmad Asim Mahmud Atique Ahmad Khan

(Chief Executive Officer) (Chief Financial Officer) (Director)

Ghani Chemical Industries Limited 18 Half Year December 31, 2023

 Corporate Ofce:
10-N, Model Town Ext., Lahore 54000, Pakistan. UAN: 111 GHANI 1 (442-641)
Tel: 042 35161424-5, Fax: +92 42 35160393
www.ghaniglobal.com