18th May 2009 07:00
Paints and Chemical Industries Company "Pachin"
S.A.E.
The Consolidated Financial Statements
Together with the
Limited Review Report
For the Period from July 1, 2008 until
March 31, 2009
LIMITED REVIEW REPORT
To: The Board of Directors of Paints and Chemical Industries Company "Pachin"
Introduction
We have reviewed the accompanying consolidated balance sheet of Paints and Chemical Industries Company as of March 31, 2009, and the related statements of consolidated income, cash flows and changes in equity for the period from July 1, until March 31, 2009 and the summary of significant accounting polices and the disclosure thereto. These financial statements are the responsibility of the company's management. Our responsibility is to issue a report on these financial statements based on our review.
Scope of Limited Review
We conducted our review in accordance with the Egyptian Standard No. (2410) applicable to review engagements. This standard requires that we plan and perform the review to obtain moderate assurance that the financial statements are free of material misstatement. A review is limited primarily to inquiries of the company's personal and an analytical procedure applied to financial data and thus provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements as of March 31, 2009 do not give a true and fair view of the company's financial position and the results of its operations and cash flows for the nine month period then ended according to the Egyptian Accounting Standards.
Cairo, May 11, 2009
Kamel M. Saleh ACA
F.E.S.A.A (RAA 8510)
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PAINTS AND CHEMICAL INDUSTRIES COMPANY "PACHIN" S.A.E. |
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Consolidated Balance Sheet |
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As of March 31, 2008 |
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Consolidated |
Pachin |
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Notes |
31/3/2009 |
30/6/2008 |
31/3/2009 |
30/6/2008 |
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|
EGP |
EGP |
EGP |
EGP |
||||||
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Non-Current Assets |
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Property, plant and equipment (Net) |
(2b, 4) |
244 282 856 |
215 924 576 |
16 426 447 |
17 853 224 |
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Projects under construction |
(2c, 5) |
38 087 146 |
48 658 552 |
3 872 909 |
1 888 146 |
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Investment in subsidiary companies |
(2f, 6) |
-- |
-- |
249 880 000 |
232 387 000 |
||||
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Available for sales investments |
(2f, 7) |
774 906 |
|
774 906 |
774 906 |
774 906 |
|||
|
Other non-current assets |
(2d, 8) |
16 016 000 |
16 016 000 |
16 016 000 |
16 016 000 |
||||
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Total Non-Current Assets |
299 160 908 |
281 374 034 |
286 970 262 |
268 919 276 |
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Current Assets |
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Inventories (Net) |
(2g, 9, 16b) |
230 278 529 |
165 409 576 |
90 455 529 |
78 739 794 |
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Letters of Credit |
2 008 078 |
7 363 465 |
459 459 |
2 034 087 |
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Accounts receivable (Net) |
(2h, 10, 16b) |
42 223 854 |
36 603 351 |
29 410 858 |
30 990 136 |
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Notes receivable (Net) |
(11, 16b) |
9 717 613 |
10 558 224 |
2 197 238 |
5 766 840 |
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Due from subsidiary companies |
(12) |
-- |
-- |
4 450 100 |
5 820 758 |
||||
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Other debit balances |
(13) |
57 649 592 |
51 202 108 |
46 492 098 |
139 070 065 |
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Investments for trading |
(2i, 14) |
1 590 886 |
75 772 987 |
222 112 |
317 727 |
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Cash and cash equivalents |
(2j, 15) |
51 729 009 |
61 850 705 |
10 021 533 |
18 824 940 |
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Total Current Assets |
395 197 561 |
408 760 416 |
183 708 927 |
281 564 347 |
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Current Liabilities |
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Provisions |
(16 a) |
38 928 731 |
38 928 731 |
35 836 819 |
35 836 819 |
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Banks - overdraft |
(17) |
18 458 831 |
41 609 365 |
1 331 601 |
1 249 091 |
||||
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Short-term Loans |
(24) |
8 000 000 |
-- |
-- |
-- |
||||
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Accounts and notes payable |
(2l, 18) |
49 500 313 |
44 198 257 |
11 000 810 |
10 836 767 |
||||
|
Due to El-Obour for Paint |
(19) |
-- |
-- |
16 199 324 |
10 957 576 |
||||
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Other credit balances |
(20) |
46 714 955 |
40 469 301 |
17 370 584 |
17 939 534 |
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Total Current Liabilities |
161 602 830 |
165 205 654 |
81 739 138 |
76 819 787 |
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|
Working Capital |
233 594 731 |
243 554 762 |
101 969 789 |
204 744 560 |
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Total Investment finianced by : |
532 755 639 |
524 928 796 |
388 940 051 |
473 663 836 |
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Share Capital |
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|
Share capital |
(21) |
200 000 000 |
200 000 000 |
200 000 000 |
200 000 000 |
||||
|
Reserves |
(22) |
201 754 501 |
191 420 791 |
175 558 975 |
170 627 297 |
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|
Retained earnings |
31 262 525 |
16 838 942 |
19 190 549 |
3 951 441 |
|||||
|
Profit for the period / year |
59 055 335 |
107 917 721 |
(6 261 007) |
98 633 564 |
|||||
|
Total Share Capital |
492 072 361 |
516 177 454 |
388 488 517 |
473 212 302 |
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|
Minority Interest |
172 573 |
182 398 |
-- |
-- |
|||||
|
Total Sharholders Equity and Minority Interest |
492 244 934 |
516 359 852 |
388 488 517 |
473 212 302 |
|||||
|
Long-term liabilities |
(23) |
8 510 705 |
8 568 944 |
451 534 |
451 534 |
||||
|
Long-term loans |
(24) |
32 000 000 |
-- |
-- |
-- |
||||
|
Total Financing of Working Capital and Non-Current Assets |
532 755 639 |
524 928 796 |
388 940 051 |
473 663 836 |
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PAINTS AND CHEMICAL INDUSTRIES COMPANY "PACHIN" S.A.E. |
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Consolidated Income Statement |
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From July 1, 2008 until March 31, 2009 |
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|
|
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|
|
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|
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|
|
|
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Consolidated |
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Pachin |
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Notes |
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Period from 1/1/2009 to 31/3/2009 |
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Period fom 1/7/2008 to 31/3/2009 |
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Period from 1/1/2008 to 31/3/2008 |
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Period from 1/7/2007 to 31/3/2008 |
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Period fom 1/1/2009 to 31/3/2009 |
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Period fom 1/7/2008 to 31/3/2009 |
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Period fom 1/1/2008 to 31/3/2008 |
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Period fom 1/7/2007 to 31/3/2008 |
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|
|
|
EGP |
|
EGP |
|
EGP |
|
EGP |
|
EGP |
|
EGP |
|
EGP |
|
EGP |
|
Net sales |
(3) |
|
120 653 910 |
|
445 740 270 |
|
135 629 375 |
|
434 921 801 |
|
30 960 019 |
|
104 347 286 |
|
42 799 092 |
|
127 435 501 |
|
Cost of sales |
|
|
(106 889 961) |
|
(376 015 318) |
|
(111 998 143) |
|
(341 474 331) |
|
(32 513 807) |
|
(105 708 665) |
|
(40 434 864) |
|
(119 665 611) |
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Gross Profit |
|
|
13 763 949 |
|
69 724 952 |
|
23 631 232 |
|
93 447 470 |
|
(1 553 788) |
|
(1 361 379) |
|
2 364 228 |
|
7 769 890 |
|
|
|
|
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|
|
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General and administrative expenses |
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|
(4 082 251) |
|
(11 500 100) |
|
(3 783 991) |
|
(10 028 159) |
|
(1 869 137) |
|
(5 686 492) |
|
(2 856 172) |
|
(7 423 166) |
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Allowance for attending the Board of Directors |
|
( 176 000) |
|
( 342 500) |
|
( 63 500) |
|
( 200 000) |
|
( 52 500) |
|
( 125 000) |
|
( 42 500) |
|
( 96 000) |
|
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Profit from Operations |
|
|
9 505 698 |
|
57 882 352 |
|
19 783 741 |
|
83 219 311 |
|
(3 475 425) |
|
(7 172 871) |
|
( 534 444) |
|
250 724 |
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Interest expenses |
|
|
(1 848 108) |
|
(6 071 544) |
|
( 735 013) |
|
(1 497 599) |
|
( 333 202) |
|
( 927 909) |
|
( 251 493) |
|
( 624 465) |
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Profit on sale of investments |
|
|
101 829 |
|
2 194 655 |
|
( 44 553) |
|
1 254 943 |
|
6 407 |
|
466 753 |
|
( 44 553) |
|
814 302 |
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Gain on revaluation of trading investment |
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|
47 381 |
|
2 097 519 |
|
161 200 |
|
1 139 748 |
|
6 781 |
|
13 651 |
|
1 940 |
|
178 086 |
|
Investment income |
|
|
-- |
|
17 276 |
|
6 780 |
|
20 341 |
|
3 716 |
|
17 276 |
|
6 780 |
|
20 341 |
|
Interest income |
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|
335 646 |
|
778 924 |
|
715 349 |
|
2 610 012 |
|
64 591 |
|
224 839 |
|
228 730 |
|
822 124 |
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Capital gain |
|
|
-- |
|
-- |
|
26 750 |
|
26 750 |
|
-- |
|
-- |
|
26 750 |
|
26 750 |
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Other income |
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|
593 639 |
|
1 110 334 |
|
447 967 |
|
1 262 485 |
|
714 269 |
|
1 423 974 |
|
356 426 |
|
1 007 656 |
|
Gain/(losses) from foreign currency translation exchange |
445 846 |
|
1 078 844 |
|
( 100 028) |
|
(2 240 124) |
|
69 912 |
|
( 306 720) |
|
81 675 |
|
( 530 863) |
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Profit before taxes |
|
|
9 181 931 |
|
59 088 360 |
|
20 262 193 |
|
85 795 867 |
|
(2 942 951) |
|
(6 261 007) |
|
( 128 189) |
|
1 964 655 |
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Minority interest |
|
|
( 6 194) |
|
( 33 025) |
|
( 10 276) |
|
( 42 040) |
|
-- |
|
-- |
|
-- |
|
-- |
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Profit after tax and minority interest |
|
|
9 175 737 |
|
59 055 335 |
|
20 251 917 |
|
85 753 827 |
|
(2 942 951) |
|
(6 261 007) |
|
( 128 189) |
|
1 964 655 |
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PAINTS AND CHEMICAL INDUSTRIES COMPANY "PACHIN" S.A.E. |
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Consolidated Cash Flows Statement |
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From July 1, 2008 until March 31, 2009 |
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Consolidated |
Pachin |
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|
31/03/2009 |
31/03/2008 |
31/03/2009 |
31/03/2008 |
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Notes |
EGP |
EGP |
EGP |
EGP |
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Cash Flows from Operating Activities |
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Net Profit before Tax and Minority Interest |
59 088 360 |
85 795 867 |
(6 261 007) |
1 964 655 |
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Adjustments to Reconcile Net Profit to Net Cash Provided from Operating Activities |
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Depreciation |
8 876 261 |
7 133 428 |
1 482 031 |
1 574 644 |
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Capital gain |
-- |
( 26 750) |
-- |
( 26 750) |
||||
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Gain on revaluation of trading investment |
(2 097 519) |
(1 139 748) |
( 13 651) |
( 178 086) |
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|
Profit on the sale of investments |
(2 194 655) |
(1 254 943) |
( 466 753) |
( 814 302) |
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Provision used |
-- |
(2 006 550) |
-- |
(1 317 855) |
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Operating Profit before Working Capital Changes |
63 672 447 |
88 501 304 |
(5 259 380) |
1 202 306 |
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(Increase) decrease in receivables and other debit balances |
(11 227 376) |
(5 775 565) |
99 097 505 |
74 360 353 |
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(Increase) in inventories and letter of credit |
(59 513 566) |
(15 925 718) |
(10 141 107) |
(7 073 270) |
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Increase in creditors and other credit balances |
11 489 471 |
13 418 929 |
4 836 841 |
1 998 776 |
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Net Cash Provided from Operating Activities |
4 420 976 |
80 218 950 |
88 533 859 |
70 488 165 |
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Cash Flows from Investing Activities |
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Purchase of investments for trading |
(124 341 450) |
(145 950 867) |
(72 650 166) |
(79 470 490) |
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Proceeds from the sale of investments for trading |
202 815 725 |
154 142 443 |
73 226 185 |
80 408 095 |
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Purchase of fixed assets and other long-term assets |
(27 162 776) |
(53 190 773) |
(2 539 658) |
(1 647 342) |
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Purchase of investments in subsidiary (Pachin for Inks) |
-- |
-- |
(17 493 000) |
(9 996 000) |
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Proceeds from the sale of fixed assets |
499 641 |
140 025 |
499 641 |
103 479 |
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Net Cash (used in) Provided from Investing Activities |
51 811 140 |
(44 859 172) |
(18 956 998) |
(10 602 258) |
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Cash Flows from Financing Activities |
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Proceeds from banks overdraft |
16 849 466 |
33 602 648 |
82 510 |
12 270 773 |
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Dividends paid |
(83 203 278) |
(81 797 778) |
(78 462 778) |
(78 374 967) |
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Net Cash (used in) Financing Activities |
(66 353 812) |
(48 195 130) |
(78 380 268) |
(66 104 194) |
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Net changes in cash and cash equivalents during the period |
(10 121 696) |
(12 835 352) |
(8 803 407) |
(6 218 287) |
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|
Net cash and cash equivalents at beginning of the period |
(15) |
61 850 705 |
85 611 100 |
18 824 940 |
30 065 484 |
|||
|
Net cash and cash equivalents at end of the period |
(15) |
51 729 009 |
72 775 748 |
10 021 533 |
23 847 197 |
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PAINTS AND CHEMICAL INDUSTRIES COMPANY "PACHIN" S.A.E. |
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Cosolidated Changes in Shareholders' Equity Statement |
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From July 1, 2008 till March 31, 2009 |
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|
Share |
Reserves |
Retained |
Profit for the |
Minority Interest |
Total |
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|
Capital |
Earnings |
Year |
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|
EGP |
EGP |
EGP |
EGP |
EGP |
EGP |
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Balance as of June 30, 2007 |
200 000 000 |
182 311 140 |
6 824 029 |
100 884 170 |
168 045 |
490 187 384 |
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|
Transferred to reserves |
-- |
9 109 651 |
-- |
(9 109 651) |
-- |
-- |
|||||
|
Transferred to retained earnings |
-- |
-- |
10 014 913 |
(10 014 913) |
-- |
-- |
|||||
|
Dividends |
-- |
-- |
-- |
(81 759 606) |
( 38 172) |
(81 797 778) |
|||||
|
Net profit as of June 30, 2008 |
-- |
-- |
-- |
107 917 721 |
52 525 |
107 970 246 |
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|
Balance as of June 30, 2008 |
200 000 000 |
191 420 791 |
16 838 942 |
107 917 721 |
182 398 |
516 359 852 |
|||||
|
Transferred to reserves |
-- |
10 333 710 |
-- |
(10 333 710) |
-- |
-- |
|||||
|
Transferred to retained earnings |
-- |
-- |
14 423 583 |
(14 423 583) |
-- |
-- |
|||||
|
Dividends |
-- |
-- |
-- |
(83 160 428) |
( 42 850) |
(83 203 278) |
|||||
|
Net profit as of March 31, 2009 |
-- |
-- |
-- |
59 055 335 |
33 025 |
59 088 360 |
|||||
|
Balance as of March 31, 2009 |
200 000 000 |
201 754 501 |
31 262 525 |
59 055 335 |
172 573 |
492 244 934 |
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Paints and Chemical Industries Company "Pachin"
(S.A.E.)
Notes to the Consolidated Financial Statements
As of December 31, 2008
1. Background
Paints and Chemical Industries Company "Pachin" (SAE)
The company was established according to the Ministerial Decree No. 751 for 1958. On October 3, 1997, the Extraordinary General Assembly agreed to circulate 27% of its share via GDR offer in the Stock Markets of London and New York. Accordingly, the Holding Company's share was reduced to less than 50 %, and the company became subject to the Companies Law No. 159 for 1981 and its executive regulation. The Commercial Register was issued after this modification on October 15, 1997. On October 31, 2000, the Extraordinary General Assembly agreed to amend some articles in the Articles of Incorporation.
The company's objective is to manufacture various kinds of paints, varnishes, printing inks, animal extract products and related products, in addition to purchasing and dividing land for the purpose of using or reselling, and performing specialized construction works.
El-Obour for Paints and Chemicals Industries Company (SAE)
The company was established according to the General Authority for Investment and Free Zones Decree No. 78 for 1999 and Law No. 8 for 1997 and its executive regulation. The Company was registered at the Commercial Register on January 14, 1999. On September 19, 2006, the Extraordinary General Assembly agreed to amend Article No. (2) of the company's Articles of Incorporation by adding the trademark of "Pachin" to the Company's name. Therefore, the company's name became El Abour for Paints and Chemical Industries Company "Pachin"
The company's objective is to manufacture various kinds of paints, varnishes, printing inks, animal extract products and related products and also, to manufacture other chemical products and special packages for the company's products.
Pachin for Inks
The company was established according to the General Authority for Investment and Free Zones Decree No. 13623 for 2005, and Law No. 8 for 1997 and its executive regulation. The company was registered at the Commercial Register on April 27, 2005.
The company's objective is to manufacture and pack printing inks and related products and to manufacture other chemical products and special packages for the company's products.
2. Significant Accounting Policies
The consolidated financial statements have been prepared according to the Egyptian Accounting Standards and applicable laws and regulations. The Egyptian Accounting Standards require referral to the International Financial Reporting Standards "IFRS", when no Egyptian Accounting Standard or legal requirement exist to address certain types of transactions and their treatment.
The principal accounting policies adopted in the preparation of the financial statements are set out below:
a. Basis for Preparing the Consolidated Financial Statements
The consolidated financial statements incorporate the financial statements of the subsidiary companies under the control of the Holding Company (Paints and Chemical Industries Company "Pachin"(SAE). The subsidiaries are represented in El-Obour for Paints and Chemical Industries Company where the Holding Company's share is 99.95%, and Pachin for Inks where the Holding Company's share is 99.96%.
The consolidated financial statements are prepared on the following basis:
All inter-company transactions and balances are eliminated.
The unrealized profits resulting from the inter-company transactions are eliminated.
The cost method is used to account for the ownership in subsidiaries.
The consolidated income statement includes the results of operation for all subsidiary companies starting from the date of ownership, and the minority interest is eliminated.
b. Property, Plant and Equipment
Property, plant and equipment are recorded at historical cost and are depreciated over their estimated useful life on a straight-line basis at the rates stated below:
|
Type of Asset |
Depreciation Rate |
|
Buildings and constructions |
2 - 5 % |
|
Machinery and equipments |
4.9 - 7.5 % |
|
Vehicles |
10 - 20 % |
|
Tools |
7.5 % |
|
Furniture and office equipments |
10 % |
c. Projects under Construction
Projects under construction are carried at cost, less any recognized impairment loss. Costs include all costs associated with acquiring the asset and bringing it to ready for use condition. The depreciation of these assets follows the same basis of similar fixed assets. The projects under construction are charged with the costs of new projects, and the purchased equipments that are not used yet.
The amounts paid as advances for purchasing property, plant and equipment are recorded as projects under construction. When the asset is received and is ready for use, it is transferred to fixed asset and is depreciated on the same basis as similar fixed assets.
d. Long-Term Assets
The other long term assets (Patent) are recognized according to acquisition cost. On the balance sheet date, the book value of assets is reviewed and in the case that there are indications that the recoverable amounts of these assets is lower than their book value, then the carrying value of assets will be reduced to its recoverable amount, and the impairment loss is recognized immediately and charged to the income statement.
e. Impairment of Assets
On the balance sheet date, the book value of assets owned by the company is reviewed (except for inventory), and in the case that there are indications that the recoverable amounts of these assets is lower than their book value, then the carrying value of assets will be reduced to its recoverable amount, and an impairment loss is recognized immediately and charged to the income statement.
On the balance sheet date, the company's management (periodically) revaluates, the existence of indications of impairment in the losses value, which were previously recognized resulting from the impairment of the assets' book value in the previous periods. In case of existence of these indications, this impairment is revaluated and reflected so that the book value of these assets does not exceed the original net book value before recording the impairment loss.
f. Investments in Subsidiaries and Available for Sale Investments
- Investments in subsidiary companies and long-term investments are stated at cost. The company assesses whether there is any indication that the value of each investment is impaired. If such indication exists, the value of the related investment is reduced by the impairment loss and this loss is charged to the income statement, for each investment separately.
- The available for sale financial investments, with no reliable fair value, are recognized according to all its related costs, less the impairment losses of its value. These losses are charged to the income statement.
g. Inventories
Inventories are stated at the lower of cost or net realizable value as follows:
Raw Materials, Packaging, Spare Parts and Fuel
Cost is calculated using the weighted average method.
Work in-Progress
The cost includes direct and indirect manufacturing costs of partially completed stages in addition to the material, direct wages costs of the completed production stage.
Goods Available for Sale
Goods available for sale are stated at cost.
Consignment Goods
Consignment goods from finished product are stated at manufacturing cost.
Finished Goods
Finished goods are stated at manufacturing cost.
h. Accounts Receivable
Accounts receivable are carried at nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. Allowances for accounts receivable are formed when there is evidence that the company will not be able to recover the amounts due according to the original terms of receivables. The provision represents the difference between the book value and the recoverable as stated in the expected cash flows.
i. Investments for Trading:
Investments for trading which are issued by banks are stated at fair value, representing its recoverable value as of evaluation date. The resulting differences are stated in the income statement, while the investment certificates are evaluated at their nominal value.
j. Cash and Cash Equivalents
Cash and cash equivalents are stated at their nominal value.
k. Provisions
Provisions are recognized when the company has a present obligation (legal or constructive) as a result of past events and that it is probable that an outflow of economic resources will be required to settle the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date. When the effect of the time value of money is material, the amount of a provision shall be the present value of expected expenditures, required to settle the obligation.
l. Accounts Payable
Accounts payable are recorded at their fair value.
m. Foreign Currencies Transactions
The company maintains its accounts in Egyptian pound. Transactions denominated in foreign currencies are recorded using the exchange rates prevailing at the transaction date. On the financial statements date, balances of monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate prevailing on that date. Differences arising from revaluation are stated in the income statement.
n. Revenue Recognition
Revenue is recognized on an accrual basis upon delivery of goods to customers and the issuance of the sales invoice.
Interest income is recognized on an accrual basis.
o. Borrowing Cost
Borrowing cost is recorded in the income statement as financing expenses in the period it was incurred.
p. Cash Flows Statement
The cash flows statement is prepared using the indirect method. For the purpose of preparing the cash flows statement, cash and cash equivalents are comprised of cash on hand and at banks and checks under collection.
q. Taxation
The company's tax is calculated based on the prevailing tax laws and regulations in Egypt. A provision is formed for tax liabilities after performing sufficient studies in the light of the tax assessments.
Deferred tax is recognized on the temporary differences between the assets and liabilities tax bases set by the new Egyptian tax law, and their reported amounts per the accounting principles used in the preparation of the financial statements. Accordingly, the income statement for the reporting period is to be charged by the tax burden represented by the current tax (calculated on taxable profit based on local tax laws, regulations, instructions and tax rates ruling at the date of the financial statements), as well as the deferred tax.
Generally, the recognized deferred tax liabilities on taxable temporary differences are reported as long-term liabilities, whereas deferred tax assets reported as long-term assets shall not be recognized for deductible temporary differences except to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized or there is convincing evidence that sufficient taxable profit will be available in the future.
r. Financial Instruments
A financial instrument is any contract that gives rise to both a financial asset of one enterprise and a financial liability or equity instrument of another enterprise. Financial assets and liabilities are recognized on the company's balance sheet when the company becomes a party to the contractual rights and obligations of the financial instrument.
Financial Assets: are represented in cash on hand and at banks, accounts and notes receivable, and certain other debit balances.
Financial Liabilities: are represented in short-term loans, accounts and notes payable and certain other credit balances.
s.Use of Estimates
The preparation of financial statements in conformity with the Egyptian Accounting Standards requires the company's management to make estimates and assumptions about the carrying amounts of assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses during the reporting period.
The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from those estimates used in the preparation of the financial statements. The estimates and underlying assumptions are reviewed on an ongoing basis.
3. Sales Analysis
|
Consolidated |
Pachin |
|||
|
Quantity (Ton) |
Amount'000 |
Quantity (Ton) |
Amount'000 |
|
|
Paints |
48 942 |
404 486 |
6 867 |
78 280 |
|
Inks |
610 1 |
37 365 |
968 |
22 178 |
|
Animal Extract Product |
725 |
3 889 |
725 |
3 889 |
|
445 740 |
104 347 |
|||
|
4. Property, Plant and Equipment |
|||||||||||||
|
Lands |
Buildings |
Machinery |
Vehicles |
Tools |
Furniture |
Total |
|||||||
|
and |
and Office |
||||||||||||
|
Equipments |
Equipments |
||||||||||||
|
EGP |
EGP |
EGP |
EGP |
EGP |
EGP |
EGP |
|||||||
|
Cost |
|||||||||||||
|
As of July 1, 2008 |
40 149 216 |
98 480 339 |
129 222 306 |
15 168 517 |
14 695 141 |
13 577 732 |
311 293 251 |
||||||
|
Additions |
-- |
37 119 405 |
137 236 |
149 390 |
240 507 |
87 644 |
37 734 182 |
||||||
|
Disposals |
-- |
-- |
( 714 535) |
( 3 190) |
( 7 679) |
( 1 969) |
( 727 373) |
||||||
|
Cost as of March 31, 2009 |
40 149 216 |
135 599 744 |
128 645 007 |
15 314 717 |
14 927 969 |
13 663 407 |
348 300 060 |
||||||
|
Accumulated Depreciation |
|||||||||||||
|
As of July 1, 2008 |
-- |
(20 264 140) |
(48 398 223) |
(10 714 158) |
(7 266 145) |
(8 726 009) |
(95 368 675) |
||||||
|
Depreciation charge |
-- |
(2 042 038) |
(4 292 677) |
(1 149 097) |
( 683 485) |
( 708 964) |
(8 876 261) |
||||||
|
Disposals |
-- |
-- |
216 813 |
1 271 |
7 679 |
1 969 |
227 732 |
||||||
|
As of March 31, 2009 |
-- |
(22 306 178) |
(52 474 087) |
(11 861 984) |
(7 941 951) |
(9 433 004) |
(104 017 204) |
||||||
|
NBV @ March 31, 2009 |
40 149 216 |
113 293 566 |
76 170 920 |
3 452 733 |
6 986 018 |
4 230 403 |
244 282 856 |
||||||
|
NBV @ June 30, 2008 |
40 149 216 |
78 216 199 |
80 824 083 |
4 454 359 |
7 428 996 |
4 851 723 |
215 924 576 |
||||||
|
Pachin Company: |
|||||||||||||
|
Land |
Buildings |
Machinery |
Vehicles |
Tools |
Furniture |
Total |
|||||||
|
and |
and Office |
||||||||||||
|
Equipments |
Equipments |
||||||||||||
|
EGP |
EGP |
EGP |
EGP |
EGP |
EGP |
EGP |
|||||||
|
Cost |
|||||||||||||
|
As of July 1, 2008 |
173 143 |
19 788 333 |
29 484 774 |
6 096 592 |
5 496 852 |
6 813 420 |
67 853 114 |
||||||
|
Additions |
-- |
-- |
132 399 |
132 340 |
239 327 |
50 829 |
554 895 |
||||||
|
Disposals |
-- |
-- |
( 714 535) |
( 3 190) |
( 7 679) |
( 1 969) |
( 727 373) |
||||||
|
Cost as of March 31, 2009 |
173 143 |
19 788 333 |
28 902 638 |
6 225 742 |
5 728 500 |
6 862 280 |
67 680 636 |
||||||
|
Accumulated Depreciation |
|||||||||||||
|
As of July 1, 2008 |
-- |
(10 024 059) |
(25 579 775) |
(5 308 927) |
(3 694 959) |
(5 392 170) |
(49 999 890) |
||||||
|
Depreciation charge |
-- |
( 359 112) |
( 552 567) |
( 202 607) |
( 166 082) |
( 201 663) |
(1 482 031) |
||||||
|
Disposals |
-- |
-- |
216 813 |
1 271 |
7 679 |
1 969 |
227 732 |
||||||
|
As of March 31, 2009 |
-- |
(10 383 171) |
(25 915 529) |
(5 510 263) |
(3 853 362) |
(5 591 864) |
(51 254 189) |
||||||
|
NBV @ March 31, 2009 |
173 143 |
9 405 162 |
2 987 109 |
715 479 |
1 875 138 |
1 270 416 |
16 426 447 |
||||||
|
NBV @ June 30, 2008 |
173 143 |
9 764 274 |
3 904 999 |
787 665 |
1 801 893 |
1 421 250 |
17 853 224 |
5. Projects under Construction
|
Consolidated |
Pachin |
||||||
|
31/3/2009 |
30/6/2008 |
31/3/2009 |
30/6/2008 |
||||
|
EGP |
EGP |
EGP |
EGP |
||||
|
Machinery and equipments |
10 254 451 |
3 503 813 |
2 708 995 |
767 335 |
|||
|
Buildings |
8 744 839 |
35 171 400 |
-- |
-- |
|||
|
Tools and equipments |
1 396 846 |
109 259 |
93 190 |
-- |
|||
|
Furniture |
1 269 416 |
-- |
207 859 |
-- |
|||
|
Vehicles |
2 428 734 |
-- |
281 736 |
-- |
|||
|
Software and programs |
7 802 495 |
7 162 513 |
44 500 |
44 500 |
|||
|
31 896 781 |
45 946 985 |
3 336 280 |
811 835 |
||||
|
Letter of credit (Fixed Assets) |
-- |
717 749 |
536 629 |
717 749 |
|||
|
Capital expenditure |
6 190 365 |
1 993 818 |
-- |
358 562 |
|||
|
Balance |
38 087 146 |
48 658 552 |
3 872 909 |
1 888 146 |
|||
6. Investment in Subsidiaries
|
Company Name |
Issued Capital EGP |
Ownership % |
Ownership Amount EGP |
Paid % |
31/3/2009 Paid Amount EGP |
30/6/2008 Paid Amount EGP |
|
Obour for Paints and Chemical Industries |
200 000 000 |
99. 95% |
199 900 000 |
100% |
199 900 000 |
199 900 000 |
|
Pachin for Inks |
50 000 000 |
99. 96% |
49 980 000 |
100% |
49 980 000 |
32 487 000 |
|
249 880 000 |
232 387 000 |
These companies are not listed in the stock market.
7. Available for Sale Investments
|
Consolidated |
Pachin |
|||
|
31/3/2009 EGP |
30/6/2008 EGP |
31/3/2009 EGP |
30/6/2008 EGP |
|
|
Governmental bonds at the National Investment Bank |
774 906 |
774 906 |
774 906 |
774 906 |
8. Other Long-Term Assets
Other long -term assets as of March 31, 2009 amounting to EGP 16 016 000 , equivalent to Euro 2 200 000 represent the amount paid to the Danish Company Deroup A/S for the final cession of the trademarks according to the contract dated December 4, 2006.
9. Inventories
|
Consolidated |
Pachin |
||||||
|
31/3/2009 |
30/6/2008 |
31/3/2009 |
30/6/2008 |
||||
|
EGP |
EGP |
EGP |
EGP |
||||
|
Raw materials and packaging |
180 348 028 |
125 802 830 |
71 849 361 |
60 996 178 |
|||
|
Less: Provision for scrap materials |
(500 396) |
(500 396) |
(500 396) |
(500 396) |
|||
|
179 847 632 |
125 302 434 |
71 348 965 |
60 495 782 |
||||
|
Finished products |
35 422 386 |
25 448 613 |
11 024 581 |
11 039 635 |
|||
|
Less: Provision for finished goods |
(798 649) |
(798 649) |
(798 649) |
(798 649) |
|||
|
34 623 737 |
24 649 964 |
10 225 932 |
10 240 986 |
||||
|
Fuel and spare parts |
7 598 318 |
7 774 437 |
4 347 504 |
4 234 626 |
|||
|
Less: Provision for spare parts |
(481 533) |
(481 533) |
(481 533) |
(481 533) |
|||
|
7 116 785 |
7 292 904 |
3 865 971 |
3 753 093 |
||||
|
Work in-progress |
6 797 203 |
6 016 178 |
3 121 489 |
2 340 464 |
|||
|
Consignment goods with others |
798 342 |
1 301 893 |
798 342 |
1 301 893 |
|||
|
Inventories for sale purpose |
919 807 |
299 548 |
919 807 |
299 548 |
|||
|
Scrap |
175 023 |
546 655 |
175 023 |
308 028 |
|||
|
230 278 529 |
165 409 576 |
90 455 529 |
78 739 794 |
||||
10. Accounts Receivable (net)
|
Consolidated |
Pachin |
||||
|
31/3/2009 |
30/6/2008 |
31/3/2009 |
30/6/2008 |
||
|
EGP |
EGP |
EGP |
EGP |
||
|
Accounts receivable |
53 106 615 |
47 486 112 |
37 161 758 |
38 741 036 |
|
|
Less: |
|||||
|
Impairment for accounts receivable |
(10 882 761) |
(10 882 761) |
(7 750 900) |
(7 750 900) |
|
|
42 223 854 |
36 603 351 |
29 410 858 |
30 990 136 |
||
11. Notes Receivable (Net)
|
Consolidated |
Pachin |
||||
|
31/3/2009 |
30/6/2008 |
31/3/2009 |
30/6/2008 |
||
|
EGP |
EGP |
EGP |
EGP |
||
|
Notes receivable |
11 155 613 |
11 996 224 |
2 635 238 |
6 204 840 |
|
|
Less: |
|
|
|||
|
Impairment for notes receivable |
(1 438 000) |
(1 438 000 ) |
(438 000) |
(438 000) |
|
|
9 717 613 |
10 558 224 |
2 197 238 |
5 766 480 |
||
12. Due from Subsidiary (Pachin for Inks)
The balance of this account amounting to EGP 4 450 100, stated in the standalone balance sheet of Paints and Chemical Company "Pachin" , represents the amounts paid by the Holding Company on behalf of the mentioned company.
13. Other Debit Balances
|
Consolidated |
Pachin |
||||
|
31/3/2009 |
30/6/2008 |
31/3/2009 |
30/6/2008 |
||
|
EGP |
EGP |
EGP |
EGP |
||
|
Accrued income |
224 999 |
299 370 |
96 883 |
95 100 698 |
|
|
Advanced to purchase investments * |
1 147 650 |
1 147 650 |
1 147 650 |
1 147 650 |
|
|
Advanced to suppliers |
4 500 229 |
2 930 357 |
2 022 296 |
1 567 929 |
|
|
Employees loans |
759 526 |
804 711 |
759 526 |
804 711 |
|
|
Deposits with others |
2 959 455 |
1 806 099 |
1 841 122 |
958 997 |
|
|
Corporate tax** |
28 882 618 |
28 882 618 |
28 882 618 |
28 882 618 |
|
|
Withholding tax |
8 438 812 |
7 409 913 |
7 765 723 |
7 232 623 |
|
|
Sales tax |
2 668 719 |
-- |
-- |
-- |
|
|
Other debit balances |
8 067 584 |
7 921 490 |
3 976 280 |
3 374 839 |
|
|
57 649 592 |
51 202 108 |
46 492 098 |
139 070 065 |
||
* This balance represents the advance payments to purchase investments in Pachin - Libya for Paints and Chemical Industries (under construction) with a percentage of 25% of the contribution value amounting to a million Libyan Dinar (50%), paid during June 2008.
** This balance represents:
14. Trading Investments
|
Consolidated |
Pachin |
||||
|
31/3/2009 |
30/6/2008 |
31/3/2009 |
30/6/2008 |
||
|
EGP |
EGP |
EGP |
EGP |
||
|
Investment Certificates |
1 590 886 |
75 772 987 |
222 112 |
317 727 |
|
|
1 590 886 |
75 772 987 |
222 112 |
317 727 |
||
15. Cash and Cash Equivalents
|
Consolidated |
Pachin |
||||
|
31/3/2009 |
30/6/2008 |
31/3/2009 |
30/6/2008 |
||
|
EGP |
EGP |
EGP |
EGP |
||
|
Cash on hand |
2 091 279 |
-- |
1 072 227 |
-- |
|
|
Banks current accounts |
17 851 418 |
13 083 020 |
4 123 457 |
3 596 031 |
|
|
Banks time deposits |
29 849 977 |
42 046 799 |
3 631 250 |
12 676 673 |
|
|
Checks under collection* |
1 936 335 |
6 720 886 |
1 194 599 |
2 552 236 |
|
|
51 729 009 |
61 850 705 |
10 021 533 |
18 824 940 |
||
* Represents outstanding checks with due dates before 31/3/2009, which were collected after this date.
16. Provisions
|
Balance as of 1/7/2008 |
Provision Established during the Period |
Provision No Longer Required during the Period |
Provision Utilized during the Period |
Balance as of 31/3/2009 |
|
|
|
EGP |
EGP |
EGP |
EGP |
EGP |
|
A- Provisions-Current Liabilities |
|
|
|
|
|
|
Provision for tax disputes |
32 149 283 |
-- |
-- |
-- |
32 149 283 |
|
Provision for claims |
6 196 743 |
-- |
-- |
-- |
6 196 743 |
|
Other provisions |
582 705 |
-- |
-- |
-- |
582 705 |
|
Total provisions (current liabilities) |
38 928 731 |
-- |
-- |
-- |
38 928 731 |
|
B- Provisions Deducted from Current Assets |
|
||||
|
Accounts receivable provision |
10 882 761 |
-- |
-- |
-- |
88 276 110 |
|
Notes receivable provision |
1 438 000 |
-- |
-- |
-- |
1 438 000 |
|
Raw material provision |
500 396 |
-- |
-- |
-- |
500 396 |
|
Finished goods provision |
798 649 |
-- |
-- |
-- |
798 649 |
|
Spare parts provision |
481 533 |
-- |
-- |
-- |
481 533 |
|
53 030 070 |
-- |
-- |
-- |
53 030 070 |
17. Banks Overdraft
Banks overdraft represent credit facilities that the group has obtained from various banks as of March 31, 2009 amounting to EGP 18 .459 million These facilities are secured by time deposits.
18. Accounts and Notes Payable
|
Consolidated |
Pachin |
||||
|
31/3/2009 |
30/6/2008 |
31/3/2009 |
30/6/2008 |
||
|
EGP |
EGP |
EGP |
EGP |
||
|
Accounts payable |
46 099 212 |
42 549 461 |
10 188 189 |
10 534 572 |
|
|
Notes payable |
3 401 101 |
1 648 796 |
812 621 |
302 195 |
|
|
49 500 313 |
44 198 257 |
11 000 810 |
10 836 767 |
||
19. Due to El-Obour for Paints and Chemicals Industries Company
The balance of this account amounting to EGP 16 199 324, stated in the standalone balance sheet of Paints and Chemical Company "Pachin" , represents the amounts paid by the Holding Company on behalf of the mentioned company.
20. Other Credit Balances
|
Consolidated |
Pachin |
|||
|
31/3/2009 |
30/6/2008 |
31/3/2009 |
30/6/2008 |
|
|
EGP |
EGP |
EGP |
EGP |
|
|
Accrued expenses |
6 957 706 |
9 125 517 |
6 271 109 |
7 785 155 |
|
Accounts receivable - credit balances |
17 352 027 |
10 056 260 |
2 955 944 |
2 454 789 |
|
Sales tax |
3 864 746 |
2 862 528 |
844 344 |
1 057 193 |
|
Fixed assets - creditors |
1 791 667 |
3 295 574 |
148 444 |
31 594 |
|
Deposit to others |
6 635 340 |
5 366 855 |
1 451 390 |
915 840 |
|
Employees share in profit |
43 104 |
1 523 624 |
43 104 |
42 242 |
|
Withholding tax |
363 863 |
404 159 |
132 493 |
147 399 |
|
Current portion of sales taxes * |
84 879 |
352 172 |
-- |
-- |
|
Salary tax |
-- |
130 984 |
-- |
130 984 |
|
Other employees benefits |
4 082 370 |
4 082 371 |
4 082 370 |
4 082 371 |
|
Income tax |
1 060 898 |
1 060 898 |
653 906 |
653 906 |
|
Other creditors |
4 478 355 |
2 208 959 |
787 480 |
638 061 |
|
46 714 955 |
40 469 301 |
17 370 584 |
17 939 534 |
|
* Refer to Note No. "23-A"
21. Paid-up Capital
The company's authorized capital amounted to EGP 200 million, and the issued and paid-up capital amounted to EGP 200 million, distributed among 20 million shares with par value of EGP 10 each.
22. Reserves
|
|
Consolidated |
Pachin |
||
|
|
31/3/2009 |
30/6/2008 |
31/3/2009 |
30/6/2008 |
|
EGP |
EGP |
EGP |
EGP |
|
|
Legal reserve |
123 145 688 |
112 811 978 |
96 950 162 |
92 018 484 |
|
Reserve invested in treasury bonds |
774 905 |
774 905 |
774 905 |
774 905 |
|
Fixed assets reserve |
6 290 899 |
6 290 899 |
6 290 899 |
6 290 899 |
|
Other reserves |
71 543 009 |
71 543 009 |
71 543 009 |
71 543 009 |
|
201 754 501 |
191 420 791 |
175 558 975 |
170 627 297 |
|
23. Long-Term Liabilities
The long-term liabilities are represented as follows:
The sales tax installment on the imported assets which amounted to EGP 122 813 (after deducting the current portion and recording it in other credit balances).
The deferred revenue related to the company's granted assets which will be recorded revenue over the estimated useful lives of those assets amounting to EGP 420 365.
The deferred tax liability amounting to EGP 7 967 527, resulting from the difference between the books depreciations rates and the tax depreciations rates (Refer to Note No. "2Q").
24. Long-Term Loans
The company obtained a loan amounting to EGP 40 million during January 2009 from the Industry Developing Bank guaranteed by Pachin for Chemical Industry Co. and El Obour for Chemical Industry Co. in addition, Pachin for Link is obligated not to mortgage any buildings or machines to any banks.
The loan installment amounting to EGP 8 million, is to be paid over five semi-annual installments. The first installment in the amount of EGP 9.444 million, is due on December 31, 2009 (after a 6 month grace period), and after adding interest and commissions (Cloredor at the rate of 1.5%, interest 13% yearly, and commission at .05% monthly ). The last installment is due on December 31, 2011. 000 000 8
|
31/3/2009 |
|
|
EGP |
|
|
8 000 000 |
Short term loans |
|
32 000 000 |
Long term loans |
|
40 000 000 |
25. Contingent Liabilities
The uncovered portion of the Letters of Credit amounted to EGP 943 423 as of March 31, 2009.
26. Capital Commitments
The capital commitments at March 31, 2009 are represented in :
The unexecuted portion of the factory building for Pachin for Inks amounting to EGP 1.7 million.
The unpaid portion of the Letters of Credit amounting to EGP 421 391 as of March 31, 2009.
The unpaid portion of the company's share in Pachin - Libya for Paints and Chemical Industries amounting to 750 000 Libyan Dinar.
27. Managing the Risks Related to Financial Instruments
Foreign Exchange Risk
Foreign currency risk represents the change in currency rates, which affects the receipts, disbursements and the translation of assets, and liabilities in foreign currencies. The company exerts all efforts to avoid having a net foreign currency open position.
Credit Risk
This risk represents some customers' failure to pay their debts on due dates. The company forms a provision for doubtful debts to meet this risk.
.Interest Rate Risk
This risk represents the change in interest rates which affects the operations results. The company's management exerts all efforts to obtain the best conditions in the market for banking facilities and performs periodic review on the interest rates.
Fair Value
The fair value of financial instrument does not differ from the book value as of the balance sheet date.
28. Tax Position
Paints and Chemicals Industries Company
The company is subject to corporate tax according to Law No. 91 for 2005. The company submits its tax returns on due time and pays the due taxes. The Tax Authority inspected the company's books and the taxes were settled and paid until June 30, 1993.
The Tax Authority inspected and assessed the company's books for years 1993/1994 until 1996/1997, and the disputed points were transferred to court.
The Tax Authority inspected the company's books for year 1997/1998 until 2000/2001. The company objected the claim resulting from the inspection and the disputed points were transferred to the Internal Committee. The tax claims amounted to EGP 26.5 million. The disputed points were transferred to the Appeal Committee and the final resolution has not been determined yet.
The Tax Authority inspected and assessed the company's books for years 2001/2002 until 2004/2005, and the company received a tax claim amounting to EGP 89 568 684 which the company objected, and the disputed points were transferred to the Internal Committee. The management believes that these claims will be greatly reduced.
The Tax Authority inspected the company's books for sales tax until June 30, 2006.
The Tax Authority inspected and assessed the company's books for salary tax until 2004.
El-Obour for Paints and Chemicals Industries Company
The company is enjoying a tax exemption starting from the first year of operation according to Law No. 8 for 1997. This exemption will end on June 30, 2011.
The Tax Authority inspected the company's books for sales tax until June 30, 2006 and the due tax was paid.
The company's books where not inspected for salary tax yet.
Pachin for Inks
The company is subject to the provisions of Law No. 8 for 1997 and its executive regulations. The company started its operation on May 8, 2008.
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Financial Controller |
Chairman of the Board and Managing Director |
Related Shares:
Paints&ch.gdr