First Quarter Report September 2024

First Quarter Report September 2024
Contents
PAGE
Corporate Information 2
Directors Review 3-4
Directors Review - Urdu 5-6
Condensed Interim Statement of Financial Position 7
Condensed Interim Statement of Profit or Loss 8
Condensed Interim Statement of Comprehensive Income 9
Condensed Interim Statement of Cash Flows 10
Condensed Interim Statement of Changes in Equity 11
Notes to the Condensed Interim Financial Statements 12-24
CENTURY PAPER & BOARD MILLS LIMITED

1
Corporate Information
Board of Directors
Iqbal Ali Lakhani - Chairman
Amin Mohammed Lakhani
Babar Ali Lakhani
Anushka Lakhani
Asif Qadir
Ali Aamir
Aftab Ahmad - Chief Executive Officer
Advisor
Sultan Ali Lakhani
Audit Committee
Ali Aamir - Chairman
Babar Ali Lakhani
Human Resource & Remuneration Committee
Asif Qadir - Chairman
Anushka Lakhani
Aftab Ahmad
Chief Financial Officer
Muhammad Rashid Dastagir
Email: rashid-dastagir@centurypaper.com.pk
Company Secretary
Mansoor Ahmed
Email: mansoor-ahmed@centurypaper.com.pk
External Auditors
BDO Ebrahim & Co.
Chartered Accountants
Email: info@bdoebrahim.com.pk
Shares Registrar
FAMCO Share Registration Services (Private) Limited
8-F, Near Hotel Faran, Nursery, Block-6, P.E.C.H.S. Shahra-e-Faisal, Karachi.
Phone: (021) 34380101-5, 34384621-3
Email: info.shares@famcosrs.com
Website: www.famcosrs.com
Head Office and Registered Office
Lakson Square, Building No.2, Sarwar Shaheed Road, Karachi-74200, Pakistan.
Phone: (021) 38400000
Fax: (021) 35684336, 35683410
Email: info@centurypaper.com.pk
Website: www.centurypaper.com.pk
Lahore Office
14-Ali Block, New Garden Town, Lahore-54600, Pakistan.
Phone: (042) 35886801-4 Fax: (042) 35830338
Mills
62 KM, Lahore-Multan Highway, N-5, District Kasur, Pakistan.
Phone: (049) 4511464-5, 4510061-2 Fax: (049) 4510063
FIRST QUARTER REPORT SEPTEMBER 2024

2
Directors Review
On behalf of the Board of Directors, we are pleased to present the performance review
of your Company together with the unaudited financial statements for the quarter that
ended on September 30, 2024.
OPERATIONS AND SALES REVIEW
The Company produced 42,579 metric tons during the quarter under review (July-
September 2024) as compared to 46,115 metric tons for the corresponding quarter of
last year. The sales volumes for the quarter under review (July-September 2024) stood
at 44,061 metric tons as compared to 47,240 metric tons for the corresponding quarter
of last year. In terms of value, the net sales were recorded at Rs. 10,132 million as
compared to Rs. 11,398 million for the corresponding quarter of last year. The machines
were operated throughout the quarter in alignment with reduced market demand for the
respective paper and paperboard products.
FINANCIAL PERFORMANCE
The Company posted a gross profit of Rs. 1,031 million for the quarter under review (July-
September 2024) as compared to Rs. 1,269 million for the corresponding quarter of last
year. Reduced sales volumes and lower selling prices for the Company's products
compared to the corresponding quarter impacted gross profit; however, decreased raw
material and energy costs helped to partially offset this decline. The net operating profit
for the quarter under review (July-September 2024) was recorded at Rs. 757 million
as compared to Rs. 968 million for the corresponding quarter of last year.
The finance cost for the quarter under review (July-September 2024) stood at Rs. 510
million compared to Rs. 477 million during the corresponding quarter of last year. Interest
rates gradually declined during the quarter due to policy rate cuts; however, the benefit
was offset by elevated working capital requirements.
The Company reported profit before and after tax for the quarter at Rs. 247 million (L.Y.
491 million) and Rs. 147 million (L.Y. Rs. 300 million) respectively.
EARNINGS PER SHARE
The basic earnings per share for the quarter under review (July-September 2024) is
reported at Rs. 0.37 as compared to Rs. 0.75 for the corresponding quarter of last year.
There is no dilution effect on the earnings per share for the period under review.

3
Directors Review
NEAR TERM OUTLOOK
There are encouraging signs of improvement in the national economy, reflected in the
drop of inflation to single digits, successive policy rate cuts, currency stabilization and
an increase in forex reserves. Additionally, the new IMF program supports the stability
of key economic indicators. Industrial activity is also beginning to recover, albeit at a
gradual pace, with major sectors of large-scale manufacturing showing steady gains in
output. This uptick in industrial activity is expected to drive higher demand for paper and
paperboard products. Material and fuel prices have moderated over the past few months,
with limited volatility anticipated in the near term. The market anticipates further policy
rate cuts, which are expected to drive reductions in finance costs. The Company's
management is closely monitoring these positive developments and stands prepared to
enhance operations and financial performance, leveraging the Company's expanded
capacities and capabilities achieved through comprehensive BMR efforts over the past
few years.
ACKNOWLEDGMENTS
The Directors wish to acknowledge the devotion of the employees of all cadres and are
appreciative of their dedication and commitment. They also extend heartfelt appreciation
to the Company's suppliers, customers and bankers for their continued confidence and
support.
On behalf of the Board of Directors
IQBAL ALI LAKHANI AFTAB AHMAD

Chairman Chief Executive Officer
Karachi: October 28, 2024

4
2024
42,579 2024
46,115
44,061 2024
47,240
10,132 2024
11,398
1,269 1,031 2024
757 2024
968
477 510 2024
0.75 0.37

5
2024 28

6
Condensed Interim Statement of Financial Position
as at September 30, 2024
September 30, June 30,
2024 2024
(Un-audited) (Audited)
Note (Rupees in thousands)
ASSETS
NON - CURRENT ASSETS
Property, plant and equipment
Operating fixed assets 7 10,398,121 10,648,823
Capital work in progress 8 839,663 856,358
11,237,784 11,505,181
Intangible assets 22,268 14,692
Long-term advances 8,261 8,599
Long-term deposits 9,831 9,831
11,278,144 11,538,303
CURRENT ASSETS
Stores and spares 9 3,959,050 4,060,143
Stock-in-trade 10 6,913,487 6,857,445
Trade debts 6,008,829 5,086,269
Advances 102,310 133,793
Trade deposits and short term prepayments 11 517,293 407,107
Other receivables 27,349 14,045
Tax refunds due from Government 12 651,333 651,333
Taxation - net 357,406 -
Short-term investment 13 515,554 -
Cash and bank balances 14 742,979 788,493
19,795,590 17,998,628
TOTAL ASSETS 31,073,734 29,536,931
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized share capital
1,000,000,000 (June 30, 2024: 1,000,000,000)
ordinary shares of Rs. 10 each 10,000,000 10,000,000
Issued, subscribed and paid-up capital
401,712,926 (June 30, 2024: 401,712,926)
ordinary shares of Rs. 10 each 4,017,129 4,017,129
Reserves 9,812,026 9,664,757
13,829,155 13,681,886
NON - CURRENT LIABILITIES
Long-term financing 15 3,368,378 3,741,044
Lease liabilities against right of use assets 9,046 11,276
Deferred taxation 861,592 818,660
Deferred capital grant 16 138,801 158,609
4,377,817 4,729,589
CURRENT LIABILITIES
Trade and other payables 17 5,314,831 4,950,854
Short-term borrowings 18 5,639,529 4,304,161
Interest and mark-up accrued 19 278,150 227,900
Taxation - net - 6,160
Unclaimed dividend 1,643 1,643
Current portion of long-term lease liabilities
against right of use assets 10,526 12,170
Current portion of deferred capital grant 16 87,407 93,211
Current portion of long-term financing 15 1,534,676 1,529,357
12,866,762 11,125,456
TOTAL EQUITY AND LIABILITIES 31,073,734 29,536,931
CONTINGENCIES AND COMMITMENTS 20
The annexed notes from 1 to 32 form an integral part of these condensed interim financial statements.
IQBAL ALI LAKHANI AFTAB AHMAD MUHAMMAD RASHID DASTAGIR

Chairman / Director Chief Executive Officer Chief Financial Officer
7
Condensed Interim Statement of Profit or Loss
for the quarter ended September 30, 2024 (Un-audited)
Quarter ended
September 30, September 30,
2024 2023
Turnover - net 21 10,132,236 11,397,574

Cost of sales 22 (9,101,275) (10,128,674 )
Gross profit 1,030,961 1,268,900
General and administrative expenses (272,257) (244,276 )
Selling expenses (27,196) (24,254 )
Distribution expenses (47,617) (47,176 )
Other operating charges
Workers' Profit Participation Fund (13,266) (26,369 )
Workers' Welfare Fund (5,041) (10,020 )
Others (8,581) (14,053 )
(26,888) (50,442 )
Other income 100,200 64,834
Operating profit 757,203 967,586
Finance cost 23 (510,188) (476,581 )
Profit before income tax and minimum tax differential 247,015 491,005
Minimum tax differential - (15,324 )
Profit before income tax 247,015 475,681
Taxation
Current (56,814) (176,166 )
Deferred (42,932) -
(99,746) (176,166 )
Profit for the period 147,269 299,515
Earnings per share - basic and diluted (Rupee) 24 0.37 0.75


8
Condensed Interim Statement of Comprehensive Income
Quarter ended
2024 2023
(Rupees in thousands)
Other comprehensive income - -
Total comprehensive income for the period 147,269 299,515


9
Condensed Interim Statement of Cash Flows
Quarter ended
2024 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 25 503,247 2,989,488
Finance cost paid (439,108) (551,441)
Taxes paid (420,380) (444,850)
Gratuity paid (19,745) (19,762)
Workers' Profit Participation Fund paid (60,298) (75,999)
Long-term advances 338 (36,297)
Long-term deposits - (173,010)
Net cash (used in) / generated from operating activities (435,946) 1,688,129
CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of property, plant & equipment (32,548) (236,904)
Net cash used in investing activities (32,548) (236,904)
CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of long-term financing from banking companies (392,961) (49,356)
Lease rentals paid (3,873) (3,128)
Net cash used in financing activities (396,834) (52,484)
Net (decrease) / increase in cash and cash equivalents (865,328) 1,398,741
Cash and cash equivalents at the beginning of the period (3,515,668) (3,270,127)
Cash and cash equivalents at the end of the period (4,380,996) (1,871,386)
CASH AND CASH EQUIVALENTS

Cash and bank balances 14 742,979 961,061
Short term highly liquid investment 13 515,554 -
Short-term borrowings 18 (5,639,529) (2,832,447)
(4,380,996) (1,871,386)


10
Condensed Interim Statement of Changes in Equity
Reserves
Issued,
subscribed and Other
Capital Revenue Components of
paid-up capital Equity Total
Actuarial gain / Total Sub -
Ordinary share Share Merger Redemption General Unappro- (loss) on total
capital premium reserve reserve Total reserve priated profit defined benefit
plan - net of
deferred tax
Balance as at July 1, 2023 4,017,129 1,822,122 7,925 1,070,913 2,900,960 5,800,000 267,838 126,040 6,193,878 9,094,838 13,111,967
Total comprehensive income for the period

ended September 30, 2023
Profit for the period - - - - - 299,515 - 299,515 299,515 299,515
Balance as at September 30, 2023 4,017,129 1,822,122 7,925 1,070,913 2,900,960 5,800,000 567,353 126,040 6,493,393 9,394,353 13,411,482
Balance as at July 1, 2024 4,017,129 1,822,122 7,925 1,070,913 2,900,960 5,800,000 791,731 172,066 6,763,797 9,664,757 13,681,886
Total comprehensive income for the period

ended September 30, 2024
Profit for the period - - - - - - 147,269 - 147,269 147,269 147,269
Balance as at September 30, 2024 4,017,129 1,822,122 7,925 1,070,913 2,900,960 5,800,000 939,000 172,066 6,911,066 9,812,026 13,829,155

CENTURY PAPER & BOARD MILLS LIMITED 11
Notes to the Condensed Interim Financial Statements
1. STATUS AND NATURE OF BUSINESS

Century Paper & Board Mills Limited (the Company) was incorporated in Pakistan as a
public limited company on August 2, 1984 under the repealed Companies Ordinance, 1984
(now Companies Act 2017) and its ordinary shares are listed on Pakistan Stock Exchange
(PSX). The Company is engaged in manufacturing and marketing of paper, board and
related products.
2. GEOGRAPHICAL LOCATION AND ADDRESSES OF BUSINESS UNITS
The geographical Location and addresses of the Company's business units / immovable
assets are as under:
Business Unit Address
- Registered office Lakson Square Building No. 2, Sarwar Shaheed Road, Karachi,
Pakistan.
- Mills (Plant) 62 KM, Lahore-Multan Highway, N-5, District Kasur, Pakistan.
- Regional office 14-Ali Block, New Garden Town, Lahore, Pakistan.
3. BASIS OF PREPARATION
3.1 Statement of compliance
These condensed interim financial statements are unaudited and are being submitted to
the shareholders as required under Section 237 of the Companies Act, 2017.
These condensed interim financial statements of the Company for the first quarter ended
September 30, 2024 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 Standard Board (IASB) 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 from
the requirements of IAS 34, the provisions of and directives issued under the Companies
Act, 2017 have been followed.
These condensed interim financial statements do not include all the information and
disclosures required for the complete set of annual financial statements and should be read
in conjunction with the annual financial statements of the Company as at and for the year
ended June 30, 2024 which have been prepared in accordance with approved accounting
standards as applicable in Pakistan. However, selected explanatory notes are included to
explain events and transactions that are significant to an understanding of the changes in
the Companys financial position and performance since the last annual financial statements.
The comparative of statement of financial position presented in these condensed interim
financial statements, together with the notes thereto have been extracted from the annual
audited financial statements of the Company for the year ended June 30, 2024, whereas
the comparative of the condensed interim statement of profit or loss, condensed interim
statement of comprehensive income, condensed interim statement of cash flows and
condensed interim statement of changes in equity together with the notes thereto are
extracted from the unaudited condensed interim financial statements for the first quarter
ended September 30, 2023.
3.2 Basis of measurement
These condensed interim financial statements have been prepared under the historical cost
convention, except for the recognition of certain staff retirement benefits at present value.
These condensed interim financial statements have been prepared following accrual basis
of accounting except for cash flow information.
3.3 Functional and presentation currency
These condensed interim financial statements have been presented in Pak Rupees, which
is the functional and presentation currency of the Company.
12
for the quarter ended September 30, 2024
4. MATERIAL ACCOUNTING POLICIES AND CHANGES THEREIN

The accounting policies adopted and methods of computation followed in the preparation
of these condensed interim financial statements are same as those for the preceding annual
financial statements for the year ended June 30, 2024.
4.1 Initial application of standards, amendments or an interpretation to existing standards
a) Standards, amendments and interpretations to accounting standards that are effective
in the current period
Certain standards, amendments and interpretations to approved accounting standards are
effective for accounting periods beginning on January 01, 2024, but are considered not to
be relevant or did not have any significant effect on the Companys operations (although
they may affect the accounting for future transactions and events) and are, therefore, not
detailed in these condensed interim financial statements.
b) Standards, amendments and interpretations to existing standards that are not yet
effective and have not been early adopted by the Company
There are certain standards, amendments to the accounting standards and interpretations
that are mandatory for the Company's accounting periods beginning on or after January
1, 2025, but are considered not to be relevant or expected to have any significant effect
on the Company's operations and are, therefore, not detailed in these condensed interim
financial statements.
5. ESTIMATES AND JUDGMENTS
The preparation of condensed interim financial statements requires management to make
certain judgments, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates. The significant judgments made by management in applying
the Company's accounting policies and key sources of estimation of uncertainty are the
same as those that were applied to the financial statements for the year ended June 30,
2024.
6. TAXATION
The provisions for taxation for the first quarter ended September 30, 2024, have been made
using the best estimated effective tax rate applicable to expected total annual earnings.
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 of the annual income
tax rate changes.

2024 2024
7. OPERATING FIXED ASSETS Note (Rupees in thousands)
Fixed assets 7.1 10,384,240 10,632,127

Right-of-use assets 7.2 13,881 16,696
10,398,121 10,648,823
7.1 Fixed assets
Opening net book value (NBV) 10,632,127 10,339,212
Additions during the period / year at cost 7.1.1 39,227 1,404,768
10,671,354 11,743,980
Disposals during the period / year at NBV 7.1.2 - (12,481)
Depreciation charge for the period / year (287,114) (1,099,372)
(287,114) (1,111,853)
Closing net book value (NBV) 10,384,240 10,632,127

13

2024 2024
7.1.1 Detail of additions (at cost) during the period / year are as follows:
Buildings on freehold land - 151,616

Plant and machinery 7.1.3 26,117 1,089,636
Furniture and fixtures - 2,110
Vehicles 8,724 95,268
IT equipments 4,051 62,920
Electrical and other equipments 335 3,218
39,227 1,404,768
7.1.2 Detail of disposals (at NBV) during the period / year are as follows
Vehicles - 11,281
IT equipments - 731
Electrical and other equipments - 470
- 12,482
7.1.3 This includes transfers from capital work in progress amounting to Rs. 26.12 million (June
30, 2024: Rs. 1,221.88 million).
7.2 Right-of-use assets
Opening net book value (NBV) 16,696 27,954

Depreciation charge for the period / year (2,815) (11,258)
13,881 16,696
8. CAPITAL WORK IN PROGRESS
This comprises of:

Building 14,542 14,542
Plant and machinery 824,932 841,627
Advances to suppliers 189 189
8.1 839,663 856,358
8.1 Movement of carrying amount is as follows:
Opening balance 856,358 1,350,556

Additions (at cost) during the period / year 9,422 727,686
865,780 2,078,242
Transfer to operating fixed assets during the period / year (26,117) (1,221,884)
Closing balance 839,663 856,358

14
2024 2024
9. STORES AND SPARES
In hand
Stores 1,657,181 1,623,592
Spares 1,042,666 1,051,397
Fuel 813,021 1,168,310
3,512,868 3,843,299
In transit 504,992 275,654
Provision for slow moving stores and spares (58,810) (58,810)
3,959,050 4,060,143
10. STOCK-IN-TRADE
Raw materials
in hand 3,650,734 3,614,432
in transit 1,740,699 1,814,422
5,391,433 5,428,854
Work-in-process 127,947 139,428
Finished goods 1,394,107 1,289,163
6,913,487 6,857,445
11. TRADE DEPOSITS AND SHORT TERM PREPAYMENTS
Deposits 11.1 184,190 186,605

Prepayments 122,651 10,050
Minimum tax - levy 210,452 210,452
517,293 407,107
11.1 This includes an amount of Rs. 182.36 million to Universal Gas Distribution Company (Private)
Limited (UGDCL) as Security Deposit against contract for supply of gas at concessional rate.
This represents short term deposits in the normal course of business and does not carry any
interest or mark-up.
12. TAX REFUNDS DUE FROM GOVERNMENT
Income tax 12.1 555,270 555,270

Sales tax 96,063 96,063
651,333 651,333
12.1 There has been no significant change in the status as set out in note 17 to the annual financial
statements of the Company for the year ended June 30, 2024.
13. SHORT-TERM INVESTMENT
Investment at fair value through profit or loss 13.1 515,554 -

15
13.1 This represents investment in mutual funds of the Lakson Investment Limited which are
readily encashable and the fair values of these investments are determined using quoted
repurchase price.
2024 2024
14. CASH AND BANK BALANCES
Cash at bank - conventional mode

Current account 258,593 151,914
Term deposits 14.1 386,768 386,768
645,361 538,682
Cheques in hand 95,862 245,653
Cash in hand 1,756 4,158
742,979 788,493
14.1 These represents term deposits under lien with bank as security for bank guarantees (open-
ended) as referred to note 19.1.1 and carries profit at the effective rate of 12.25% to 14.00%
(June 30, 2024 18.00% to 18.40%) per annum.
15. LONG TERM FINANCING
From banking companies - secured

Utilized under mark-up arrangements financed by:
Islamic mode
Faysal Bank Limited - Musharaka 15.1 320,100 359,274
Bank Islami Pakistan Limited 15.1 186,077 189,207
Meezan Bank Limited - Musharaka 15.2 3,000,000 3,250,000
3,506,177 3,798,481
Conventional mode
Syndicated - Consortium of Banks 15.3 891,325 952,928
Habib Metropolitan Bank Limited 15.3 119,798 123,253
JS Bank Limited 15.3 325,289 327,614
Allied Bank Limited - Term Loan -1 15.4 60,465 68,125
1,396,877 1,471,920
4,903,054 5,270,401
Current portion:
Islamic mode (1,125,288) (1,123,449)
Conventional mode (409,388) (405,908)
(1,534,676) (1,529,357)
3,368,378 3,741,044

16
Borrowed Rate of Repayment

Rs. in Million Banks Purpose Mark-up Tenor Installments
15.1 Islamic Temporary Economic Refinance Facility (ITERF) Schemes of the State Bank of
Pakistan
500 Faysal Bank Ltd. Balancing, Modernization 2.20% 7 Years 20 Quarterly

and Replacement (BMR)
250 Bank Islami Pak Ltd. of plant and machinery 3.05% 10 Years 32 Quarterly
The finance facility is secured by way of mortgage of immovable properties and / or First Pari
Passu Hypothecation Charge over the Fixed Assets of the Company along with 25% Margin.
15.2 Diminishing Musharaka Financing

To rationalize use of 3 months
4,000 Meezan Bank Ltd. short term working KIBOR 5 Years 16 Quarterly
capital limits. + 0.15%
The finance facility is secured by way of First Pari Passu Hypothecation Charge over all
present and future movable fixed assets (including Plant & Machinery) of the Company with
25% margin. The effective markup rate was 20.29% (2024 : 22.43%).
15.3 Temporary Economic Refinance Facility (TERF) Scheme of the State Bank of Pakistan
1,500 Syndicated - 2.20% 7 Years 20 Quarterly

Consortium of Banks Balancing, Modernization
200 Habib Metropolitan and Replacement (BMR) 4.50% 10 Years 32 Quarterly
Bank Ltd. of plant and machinery
400 JS Bank Ltd. 5% 10 Years 32 Quarterly
The finance facility is secured by way of mortgage of immovable properties and / or First Pari
Passu Hypothecation Charge over the Fixed Assets of the Company along with 25% Margin.
15.4 Renewable energy finance facility scheme of the State Bank of Pakistan
2.75%
400 Allied Bank Ltd. Solar Grid Panels to 7 Years 28 Quarterly
4.50%
This term loan is secured by way of first hypothecation charge over all assets belonging to
the Company with 25% margin.
2024 2024
16. DEFERRED CAPITAL GRANT
Capital grant 16.1 226,208 251,820

Current portion shown under current liability (87,407) (93,211)
138,801 158,609

17
2024 2024
16.1 Following is the movement in government grant during the period / year:
Opening balance 251,820 361,873

Amortized during the period / year (25,612) (110,053)
Closing balance 226,208 251,820
- This represents government grant recognized on long term financing facilities obtained
under SBP Refinance Scheme from certain banks under "Islamic / Temporary Economic
Refinance Facility (I/TERF)" (Refer note 15).
- These deferred capital grants have been recorded in accordance with IAS-20 Government
Grants and are being amortized on a systematic basis over the respective tenor of loans.
17. TRADE AND OTHER PAYABLES
Creditors 17.1 1,569,351 1,625,178

Foreign bills payable 1,619,232 1,153,739
Accrued liabilities 1,195,630 1,180,109
Sales tax payable - net 81,368 144,802
Contract liabilities 42,103 57,320
Gratuity payable 54,750 58,251
Employee leave encashments 105,650 122,336
Workers' Profit Participation Fund 15,697 62,774
Workers' Welfare Fund 96,443 91,402
Minimum tax - levy 210,452 210,452
Provident fund payable 13,594 12,552
Other liabilities 310,561 231,939
5,314,831 4,950,854
17.1 The aggregate amount of the outstanding balance of associated undertakings is Rs. 99.80
million (June 30, 2024: Rs. 14.47 million).
18. SHORT TERM BORROWINGS
From banking companies - secured

Running finances
Islamic mode 798,443 332,387
Conventional mode 2,291,086 971,774
18.1 3,089,529 1,304,161
Money market loans - Conventional mode 18.2 2,550,000 3,000,000
5,639,529 4,304,161

18
18.1 The Company has available aggregate short term running finance facilities amounting to Rs.
15,500 million (June 30, 2024: Rs. 15,500 million). Markup rates are linked with KIBOR from
one to three months plus spread ranging from 0.05% to 1.50% (June 30, 2024: from 0.05%
to 1.50%) per annum.
These arrangements are secured by way of pari-passu hypothecation charges created on

stock-in-trade, stores and spares and trade debts of the Company.
18.2 Short-term money market loans have been arranged as a sub-limit of the running finance
facility.
2024 2024
19. INTEREST AND MARK-UP ACCRUED
Interest and mark-up accrued on:

Long-term financing from Banks
Islamic mode 6,400 12,672
Conventional mode 17,759 9,969
24,159 22,641
Short-term borrowings from Banks
253,991 205,259
278,150 227,900
20. CONTINGENCIES AND COMMITMENTS
20.1 Contingencies
20.1.1 Guarantees
Guarantees have been issued by banks on behalf of the Company in the normal course of
business aggregating to Rs. 1,367.19 million (June 30, 2024: Rs. 1,367.19 million) including
guarantee relating to Sindh Infrastructure Cess amounting to Rs. 650 million (June 30, 2024:
Rs. 650 million) furnished to Excise and Taxation Department and a guarantee of Rs. 136.77
million (June 30, 2024: Rs. 136.77 million) issued in favor of The Nazir High Court of Sindh
in accordance with the order of the Honorable High Court of Sindh on the matter of super
tax.
20.1.2 Sales tax
a) The Deputy Commissioner has adjudicated amounts of Rs. 299.99 million and Rs.230.611
million as inadmissible input tax adjustments on the ground of fake and flying invoices along
with 100% penalty vide his order-in-original no. 14/07 and 15/07 dated February 26, 2024
and February 27, 2024 respectively. These orders were issued in response to show cause
notices dated January 22, 2024 pertaining to input tax claimed on coal purchases from
December 2021 to September 2023. This was despite the fact that the Company had provided
all necessary information and evidence for the purchase, receipt, and consumption of coal
during the period mentioned in the show cause notices.
Aggrieved with the orders passed by the Deputy Commissioner, the Company lodged an
appeal before the Commissioner (Appeals) dated March 21, 2024 with the plea that the orders
were unfairly decided, without considering the facts, evidence, and explanations provided
by the Company. However, the Company had to pay Rs. 80 million under Section 48 of
Chapter-IX of the Sales Tax Act 1990, in response to the order.
Based on the advice of the legal adviser, the management believes that the decision is likely
to be in favor the Company. Therefore, no liability has been provided in these financial
statements against the demand adjudicated in the orders.
19
b) The Appellate Tribunal, Punjab Revenue Authority has issued an Order No. PRA 10/2023
dated February 14, 2023 upholding the demand of Rs. 30 million as previously determined
by the Commissioner (Appeals) vide his Order No. PRA 328/2018 dated November 06, 2019.
However, the Company has filed a reference application before the Honorable Lahore High
Court against the decision with the plea that order by the Appellate Tribunal was passed
without comprehensive concluding the evidence and explanation provided by the Company.
No provision has been made in these financial statements as the management is of the
opinion, based on advice of tax advisor, that the decision is likely to be in the favor of the
Company.
c) Five cases of inadmissible input sale tax amounting to Rs. 94.45 million were adjudicated
against the Company by Deputy Commissioner Inland Revenue. The appeals were filed by
the Company against these orders at respective forum. These cases were remanded back
to the adjudicating authorities by the Appellate Authorities with the direction to verify the
compliance of the Company with the relevant provisions of the Sales Tax Act, 1990. No
provision has been made in these financial statements as the management is of the opinion,
based on advice of tax advisor, that the decision is likely to be in the favor of the Company.
20.2 Commitments
The Company's commitments as at statement of financial position date are as follows:
- Letters of credit other than for capital expenditure at the end of the period amounted to Rs.
3,211.02 million (June 30, 2024: Rs. 2,245.61 million).
- Capital expenditure including letters of credit amounted to Rs. 2.91 million (June 30, 2024:
Rs. 2.91 million).
Quarter ended
2024 2023
21. TURNOVER
Local turnover 11,945,433 13,430,581

Sales tax (1,813,197) (2,033,007)
Net turnover 10,132,236 11,397,574
22. COST OF SALES

Materials consumed 6,129,629 7,184,986
Fuel and power 1,772,457 2,041,720
Depreciation on property, plant and equipment 262,819 258,852
Salaries, wages and other benifits 385,901 370,306
Stores and spares consumption 307,967 258,767
Repairs and maintenance 41,173 43,648
Packing expenses 262,920 245,013
Insurance 29,262 30,383
Rent rates and taxes 2,610 2,207
Manufacturing cost 9,194,738 10,435,882
Work-in-process
Opening stock 139,428 130,390
Closing stock (127,947) (124,155)
11,481 6,235
Cost of goods manufactured 9,206,219 10,442,117
Finished goods
Opening stock 1,289,163 1,057,075
Closing stock (1,394,107) (1,370,518)
(104,944) (313,443)
9,101,275 10,128,674
20
Quarter ended
2024 2023
23. FINANCE COST
Long-term financing
Islamic mode 175,931 238,961
23.1 206,420 261,131
Short term borrowings
298,545 206,914
Bank charges and commission 2,127 3,329
Finance cost on Leases 620 1,024
510,188 476,581
23.1 These include financial charges at commercial rate on loan availed under State Bank of
Pakistan scheme of Temporary Economic Refinance (TERF) as per IAS 20 - Government
Grants (refer note 16).
24. EARNINGS PER SHARE - BASIC AND DILUTED

The basic earnings per share as required under "IAS 33 Earnings per share" is given below:-
Weighted average number of ordinary shares (in thousands) 401,713 401,713
Basic earnings per share (Rupee) 24.1 0.37 0.75
24.1 There is no dilutive effect on the basic earnings per shares of the Company.
25. CASH GENERATED FROM OPERATIONS
Profit before income taxation 247,015 475,681

Adjustment for non cash charges and other items:
Depreciation on property, plant and equipment 289,927 281,954
Amortization of intangible assets 2,438 1,601
Provision for gratuity 16,244 17,747
Minimum tax differential - 15,324
Finance cost 510,187 476,581
Amortization of deferred income - government grants (20,829) (18,057)
Working capital changes 25.1 (555,001) 1,712,288
256,232 2,513,807
503,247 2,989,488

21
Quarter ended
2024 2023
25.1 Changes in working capital
Decrease / (increase) in current assets

Stores and spares 101,093 (544,719)
Stock-in-trade (56,042) 1,559,900
Trade debts (922,560) 260,961
Advances 31,483 109,499
Trade deposits and short-term prepayments (110,186) (113,124)
Other receivables (13,304) (16,658)
(969,516) 1,255,859
Increase in current liabilities
Trade and other payables 414,515 456,429
(555,001) 1,712,288
26. TRANSACTIONS AND BALANCES WITH RELATED PARTIES

The related parties and associated undertakings comprise of group companies, other
associated companies, staff retirement funds, directors and key management personnel.
Transactions with related parties and associated undertakings are as under:
Nature of transaction Nature of Relation Basis of Relation Quarter ended
2024 2023
Sale of goods, Services and Reimbursement of expenses
Merit Packaging Limited Associated company Common Director 785,744 878,664
Colgate Palmolive (Pakistan) Limited Associated company Common Director 316,352 203,967
Century Insurance Company Limited Associated company Common Director and
0.43% shares held 17,092 1,060
Cyber Internet Services (Private) Limited Associated company Common Director 378 2,120
SIZA Foods (Private) Limited Associated company Common Director 95 -
SIZA Services (Private) Limited Associated company Common Director and
22.18% shares held 57 -
Sybrid (Private) Limited Associated company Common Director 40 184
Purchase of goods, Services and Reimbursement of expenses

Century Insurance Company Limited Associated company Common Director and
0.43% shares held 187,792 177,056
Merit Packaging Limited Associated company Common Director 33,068 50,257
Lakson Business Solutions Limited Associated company Common Director 3,702 3,747
Hassanali and Gulbanoo Lakhani Foundation Associated undertaking Trustee 2,521 2,484
Princeton Travels (Private) Limited Associated company Common Director 884 725
22.18% shares held 1,552 1,388
Cyber Internet Services (Private) Limited Associated company Common Director 6,147 5,998
SIZA (Private) Limited Associated company Common Director and
27.31% shares held - 109

22
Nature of transaction Nature of Relation Basis of Relation Quarter ended
2024 2023
Colgate Palmolive (Pakistan) Limited Associated company Common Director 28 49
Express Publications (Private) Limited Associated company Common Management 1,006 541
Sybrid (Private) Limited Associated company Common Director 1,004 893
Rent and other allied charges

Hassanali and Gulbanoo Lakhani Foundation Associated undertaking Trustee 1,573 2,249
SIZA (Private) Limited Associated company Common Director and
27.31% shares held 1,786 1,368
22.18% shares held 256 223
SIZA Commodities (Private) Limited Associated company Common Director and
9.76% shares held 56 52
Donation
The Layton Rahmatulah Benevolent Trust Related Party Trustee - 1,000
Purchase of short term investments

Lakson Investment Company Limited Associated company Common Director 1,500,000 -
Sale proceeds on redemption of short term investments

Lakson Investment Company Limited Associated company Common Director 1,018,525 -
Others
Contribution to Staff Retirement Benefit Plans Employees Fund 36,197 36,150
Remuneration and other benefits Key Management
Personnel 132,280 94,068

2024 2024
(Audited)
26.1 Period / year end balances
Receivable from related parties 978,319 822,462

Payable to related parties 99,799 14,467
Prepayment to related parties - 10,050
Short-term investment 515,554 -
Payable to retirement benefit plan 68,344 70,802
27. FINANCIAL RISK MANAGEMENT
The Company's financial risk management objective and policies are consistent with that
disclosed in the annual financial statements for the year ended June 30, 2024.

23
28. FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying values of all financial assets and liabilities reflected in the condensed interim
financial statements approximate their fair values. Fair value is the amount for which asset
could be exchanged or liability settled between knowledgeable, willing parties in an arm length
transaction.
The Company uses the following hierarchy for determining and disclosing the fair value of
financial instruments by valuation technique:
Level 1: quoted prices (Unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included within level 1 that are observable for the asset
either directly or derived from prices.
Level 3: inputs for the asset or liability that are not based on observable market data
(unadjusted) inputs.
Transfers during the period
During the period ended September 30, 2024, there were no transfers between level 1 and
level 2 fair value measurement and into or out of Level 3 fair value measurements.
29. NUMBER OF EMPLOYEES
The number of employees as at period ended September 30, 2024 was 1,581 (June 30, 2024:
1,605) and average number of employees during the period was 1,591 (June 30, 2024: 1,632).
30. DATE OF AUTHORIZATION FOR ISSUE
These condensed interim financial statements were authorized for issue on October 28, 2024
by the Board of Directors of the Company.
31. CORRESPONDING FIGURES
Corresponding figures have been rearranged and reclassified, wherever necessary for the
purpose of comparison and better presentation.
32. GENERAL
Amounts have been rounded off to the nearest thousands of rupees unless otherwise stated.


24

First Quarter Report September 2024

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First Quarter Report September 2024

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First Quarter Report September 2024

Directors Review 3-4

Directors Review - Urdu 5-6

Condensed Interim Statement of Financial Position 7

Condensed Interim Statement of Profit or Loss 8

Condensed Interim Statement of Comprehensive Income 9

Condensed Interim Statement of Cash Flows 10

Condensed Interim Statement of Changes in Equity 11

Notes to the Condensed Interim Financial Statements 12-24

CENTURY PAPER & BOARD MILLS LIMITED