LAKH DATA FLOUR

MILL PVT CO LTD.

ANNUAL REPORT 2022

Contents

Company Information....................................................................................................1

Director Report to the Shareholders...............................................................................2

Statements of Compliance with the Code of Corporate Governance............................3

Past seven years key operating and financial data.........................................................4

Notice of the annual general meeting...............................................................................5

Balance Sheet....................................................................................................................6
Profit and Loss Account...................................................................................................7

Statement of Comprehensive Income..............................................................................8

Cash flow statement..........................................................................................................9

LAKH DATA FLOUR MILL

COMPANY INFORMATION

Board of Directors

Chief Executive

M QASIM KHAN QAISRANI

Directors
.R Committee

Mr. Fahad Haji Jaffer Mr. Shams-uz-Zoha

Dr. Muhammad Abbas Memon

Chief Financial Officer Taimoor yasire khan

Mr. Nafees Shams Qureshi

M/s. Navin Merchant Advocates
Dr. Muhammad Abbas Memon Mr. Shams-ul-Haque
Mr. Shams-uz-Zoha Mrs. Naveen Shams Mr. Fahad Haji Jaffer Mr. Faizan Farooq
Mr. Muhammad Owais
Mr. Muhammad Safyan Qureshi

H.R Committee

Mr. Fahad Haji Jaffer Mr. Shams-uz-Zoha

Dr. Muhammad Abbas Memon

Chief Financial Officer Rana Saif-ur-Rehman Company Secretary

Mr. Nafees Shams Qureshi

 Bankers

Habib Metropolitan Bank Limited Bank Al Habib Limited

Bank Alfalah Limited United Bank Limited MCB Bank Limited

LAKH DATA FLOUR MILLS

Investment on Assets
A sum of Rs. 1879,400 was added for the addition in property, plant & equipments during the period
from July 2005 to June 2006. The details of additions of assets recorded in property, plant & equipments
schedule.

Review on working and Profit & Loss Account

Profit & Loss Account for the year ended 30th June 2005 and 30th June 2006 Compared as
under:-
2006 2005

Note <------------Rupees------------>

Sales 20 871,085,337 762,259,773

Cost of sales 21 (856,285,427) (746,810,585)
Gross profit 14,799,910 15,449,188
Administrative expenses 22 (10,226,204) (8,451,164)
Selling expenses (83,029) (145,164)
Other operating expenses 23 (419,250) (580,293)

(10,728,483) (9,176,621)
Operating profit 4,071,427 6,272,567
Financial charges 24 (14,951) (125,290)
Profit before taxation 4,056,476 6,147,277
Taxation 25 (2,993,837) (1,925,291)
Profit after taxation 1,062,639 4,221,985

Appropriation of Profit
The Board of Directors of the Company proposed appropriation of profit for the year ended
June 2006 as under:
2006 2005
Profit / (loss) before taxation 4,056,476 6,147,277
Less: Taxation (2,993,837) (1,925,291)
Profit after taxation 1,062,639 4,221,985
Un-appropriated profit brought forward 33,743,369 27,178,728
34,806,008 31,400,713
Less: Dividend declared @ 50% (Rs.5 per share) (1500,000) (600,000)
Add: Adjustment of incremental depreciation 2,684,528 3,534,345
Add: Other comprehensive income (345,425) 8,686
Correction of Error ----------- (600,376)
Un-appropriated profit carried forward 35,645,111 33,743,369,
LAKH DATA FLOUR MILLS

Basic Earning Per Share

Basic earning per share during the year ended June 2006 as under:
2006 2005
Profit after taxation 1,062,639 4,221,986
No. of shares 300,000 300,000
======== ========
Basic earning per share 3.54 14.07

Proposed dividend
The Board of Directors of the Company proposed to declare payment of cash dividend @ Rs.
1.75 per share i.e. 17.50% amounting to Rs. 525,000 for the year ended June 30, 2016.

Changes in Equity as on 30th June 2016

Share Unappropria Tot
capital ted profit al

<----------------- Amount in Rupees------------------>

Balance as at July 01, 2014 - restated 3,000,000 27,178,728 30,178,728
Profit after taxation for the year ended June 30,2014 - 4,221,985 4,221,985
Other Comprehensive Income
- Remeasurements of defined benefit liability - net of tax - 8,686 8,686
- Transfer from surplus on revaluation of fixed assets on account of: - 3,534,345 3,534,345
incremental depreciation for the year - net of tax -
Correction of error - (600,376) (600,376)
Transactions with owners:
Dividend for the year June 30, 2014 @ Rs.2 per share - (600,000) (600,000)
Balance as at July 01, 2015 - restated 3,000,000 33,743,369 36,743,369
Profit for the year ended June 30, 2016 - 1,062,639 1,062,639
Other Comprehensive Income
- Remeasurements of defined benefit liability - net of tax - (345,425) (345,425)
- Transfer from surplus on revaluation of fixed assets on account of:
incremental depreciation for the year - net of tax - 2,684,528 2,684,528
Transactions with owners:
Dividend for the year June 30, 2015 @ Rs.5 per share - (1,500,000) (1,500,000)
Balance as at June 30, 2016 3,000,000 35,645,111 38,645,111

Running Finance Facility –

Secured Habib Metropolitan Bank
Ltd.
This represents finance availed from Habib Metropolitan Bank Limited with sanctioned limit
of Rs. 10.00 million. The finance is secured against hypothecation of stock and personal
guarantee of all the directors and carries mark-up rate @ 3 Months KIBOR + 0.75%
p.a
LAKH DATA FLOUR MILLS

Future Program
Considering the prevailing situation in the country the Board of Directors of the company has
decided to run the business of the factory as usual and that no major changes or new
investment whatsoever is proposed during the forthcoming year.

 The company has maintained proper books of accounts as required by the law.

 There are no significant doubts upon the Company’s ability to continue as a going
concern.

 The Company has paid all taxes, duties and there are no unpaid disputed balances.

 There has been no material deviation in observing the code of corporate governance.

 Specified pattern of shareholding is included in this report.

 Past seven years key operating and financial data is attached.

GOODLUCK INDUSTRIES LIMITED

Comparative statements of key operations for last seven years

Jun-2015 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Jun-2021 Jun-2022

Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
Balance Sheet

Paid up Capital 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000
Reserve and surplus/(deficit) 35,645,111 35,002,667 27,837,651 19,011,214 11,149,909 10,002,969 9,922,677 9,157,150
Shareholders equity 38,645,111 38,002,667 30,837,651 22,011,214 14,149,909 13,002,969 12,922,677 12,157,150
Long term & Deferred liabilties 22,664,364 21,521,822 22,857,543 24,111,095 6,427,679 7,106,025 7,601,926 6,806,832
Current Liabilities 4,550,400 4,389,734 6,540,626 2,008,581 1,898,272 2,104,912 2,658,345 1,587,097
Operating Assets 209,853,136 213,096,319 216,188,213 222,330,407 2,971,489 2,588,417 2,628,514 3,034,010
Current Assets 43,159,257 39,395,652 36,165,701 22,132,020 19,203,588 19,324,709 20,268,952 17,231,586
Long Term Deposits 355,282 355,282 349,282 313,282 300,782 300,782 285,482 285,482

Trading Results

Turn over / Sales 871,085,337 762,259,773 69,303,183 471,977,106 415,325,716 381,582,157 488,276,553 428,267,753
Gross Profit 14,799,910 15,449,188 15,449,188 4,396,303 9,283,727 8,795,230 10,905,732 11,080,626
Other Income 0 0 6,696,791 31,172 0 0 0 0
Operating Profit (Loss) 4,071,427 6,272,566 8,724,510 (2,459,465) 2,549,566 1,750,744 4,122,916 4,790,173
Finacial charges 14,951 125,290 11,717 40,609 17,868 148,829 113,959 223,812
Profit before tax 4,056,476 6,147,277 8,712,793 (2,468,902) 2,531,698 1,601,915 4,008,957 4,566,361
Profit after tax 1,062,639 4,221,985 5,590,049 1,165,302 1,746,940 680,292 1,365,527 2,372,910
Dividend declared 525,000 1,500,000 600,000 600,000 600,000 600,000 600,000 600,000
LAKH DATA FLOUR MILLS PROFIT
AND LOSS ACCOUNT
FOR THE YEAR ENDED JUNE 30, 2022

2022 2021

Note <------------Rupees------------>

Sales 20 871,085,337 762,259,773

Cost of sales 21 (856,285,427) (746,810,585)
Gross profit 14,799,910 15,449,188
Administrative expenses 22 (10,226,204) (8,451,164)
Selling expenses (83,029) (145,164)
Other operating expenses 23 (419,250) (580,293)
(10,728,483) (9,176,621)
Operating profit 4,071,427 6,272,567
Financial charges 24 (14,951) (125,290)
Profit before taxation 4,056,476 6,147,277
Taxation 25 (2,993,837) (1,925,291)
Profit after taxation 1,062,639 4,221,985

Earnings per share - basic 26 3.54 14.07

The annexed notes 1 to 37 form an integral part of these financial statements.

CHIEF EXECUTIVE
5. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
The preparation of financial statements in conformity with approved accounting standards requires the
use of certain critical accounting estimates. It also requires management to exercise its judgement in
the process of applying the Company's accounting policies. Estimate and judgements are continually
evaluated and are based on historic experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances. Revisions to accounting estimates
are recognised in the period in which the estimates is revised and in any future periods affected.

5.1 In the process of applying the company's accounting policies, management has made the
following estimates and judgements which are significant to the financial statements:

i Estimated useful life of property, plant and equipment - note 8

ii Revaluation surplus on freehold land - note - 14
iv Provision for employees’ defined benefit plans - note 15.1
v Deferred taxation - note 15.2

5.2 Correction of Error

Previously, the effect of change in tax rate relating to deferred tax on revaluation surplus was
being charged to Profit and Loss account. However, in order to comply with the requirements of
IAS 12 the correction of error as stated below has been accounted for retrospectively in
accordance with IAS 8 'Accounting Policies, Changes in Accounting Estimates and Errors',
resulting in following restatements of financial statements of prior periods.

2022 2021
Impact on Balance Sheet
Increase in Revaluation Surplus 600,376 658,924

Impact on Retained Earnings

- decrease in reported retained earnings (600,376) (658,924)

This has resulted in restated balances of 'Surplus on Revaluation of Fixed Assets' for the prior
years as follows;

As previously stated as at June 30, 2014 192,467,375

Effect of change in tax rate 2014 658,924
After restated as at June 30, 2014 193,126,298

As previously stated as at June 30, 2015 188,933,031

Effect of change in tax rate 2014 658,924
Effect of change in tax rate 2015 600,376
After restated as at June 30, 2015 190,192,329

6. EARNINGS PER SHARE

The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic
EPS is calculated by dividing the profit or loss attributable ordinary shareholders of the Company by the
weighted average number of ordinary shares outstanding druing the perio
 Note 2022 2021
<------------Rupees------------>

7. LONG TERM DEPOSITS 211,132 211,132

8,450 8,450
Karachi Electric Supply Corporation Limited
23,500 23,500
Pakistan Telecommunication Corporation Limited
1,500 1,500
Sui Southern Gas Company Limited
20,000 20,000
Mobilink
23,700 23,700
Warid Communication
25,000 25,000
Cellular Services - Ufone
42,000 42,000
Central Depository Company of Pakistan Limited
355,282 355,282
Euro Track skygate International (Private) Limited

8. STOCK IN TRADE 17,344,985 5,637,236

736,075 1,817,820
Raw Material
738,054 5,137,656
Finished goods
18,819,114 12,592,712
Packing material

9. TRADE DEBTORS 8,793,894 6,666,642

258,312 258,312
Unsecured - considered good
Receivable against transportation 11.1
9,052,206 6,924,954

9.1 Th
is
a
m
ou
nt

10. ADVANCES, DEPOSITS & OTHER RECEIVABLES

Deposit with Pakistan Flour Mills Association 585,392 585,392
Others 12.1 1,500,000 -
2,085,392 585,392

11. CASH AND BANK BALANCES

Cash in hand 932,737 1,555,529
Cash with banks - current accounts 4,235,002 9,977,180
5,167,739 11,532,709

12. SURPLUS ON REVALUATION OF FIXED ASSETS

During the financial year ended June 30, 2013 the company revalued its leaseholdland, buildings on
leasehold land and plant & machinery to replace the carrying amounts of these assets with their
market values / depreciated market values. The revaluation was carried-out on on August 30, 2012 by
an independent valuers namely M/s. Yunus Mirza & Co. The appraisal surplus arisen on these
revaluations aggregates to Rs. 225,892,372.
The appraisal surplus arisen on this revaluation was credited to "Surplus on Revaluation Account" to
comply with the requirements of Section 235 of the Companies Ordinance 1984. The year-end
balance has been arrived at as follows:
 Note 2022 2021
<------------Rupees------------>
Restated
Balance at beginning of the period / year 208,263,935 213,539,076
Less: Incremental depreciation on revalued assets for the
year - (4,753,165) (5,275,141)
203,510,770 208,263,935
Less: related deferred tax of:
- balance at beginning of the year 18,071,606 20,412,778
- surplus arisen during the year - -
- incremental depreciation for the period / year (1,521,013) (1,740,797)
- effect of change in tax rate (547,624) (600,376)
16,002,969 18,071,606

Balance at end of the period / year 187,507,801 190,192,329

15. DEFERRED LIABILITIES

Staff gratuity 15.1 9,538,566 7,938,720
Deferred taxation 15.2 13,125,798 13,583,102
22,664,364 21,521,822
15.1 Staff gratuity
Defined benefit plan - (staff retirement
gratuity) - unfunded 15.1.4 9,538,566 7,938,720
15.1.1 As stated in 5.6, the company operates a defined benefit plan i.e an unapproved gratuity scheme for
all its permanent employees subject to completion of first year of service. Actuarial valuation of the
plan is carried out every year and the latest actuarial valuation was carried out as at June 30, 2016.
The disclosures made in notes 15.1.2 to 15.1.11 are based on the information included in that
actuarial report.
15.1.2 The projected unit credit method using the following significant assumptions was used for this valuation:

2016 2015
- Discount rate - per annum compound 7.25% 9.50%
- Expected rate of increase in salaries - per annum 6.25% 8.50%
- Expected remaining working lifetime of members 8 years 7 years
15.1.3 Mortality Rate
- The rates assumed were based on SLIC (01-05) SLIC (01-05)
Mortality Table Mortality Table

Note 2016 2015

<------------Rupees------------>
15.1.4 Balance sheet reconciliation
Present value of defined benefit
obligation 15.1.5 9,538,566 7,938,720
Fair value of plan assets - -
Net liability in the balance sheet 9,538,566 7,938,720
15.1.5 Movement in defined benefit obligation
Present value of defined benefit obligation as at July 1 7,938,720 6,965,942
Current service cost 488,215 344,245
Interest cost 747,353 905,497
Remeasurement on obligation 507,978 (12,964)
Benefits paid during the year (143,700) (264,000)
Present value as at June 30 9,538,566 7,938,720
 2016 2015
Note <------------Rupees------------>
15.1.6 Movement in net liability in the balance sheet is as follows:
Opening balance of net liability 7,938,720 6,965,942
Charge for the year 15.1.7 1,235,568 1,249,742
Net remeasurement for the year 15.1.9 507,978 (12,964)
Benefits paid during the year (143,700) (264,000)
Closing balance of net liability 9,538,566 7,938,720
15.1.7 Charge for the year has been allocated as under:
Cost of sales 21 450,890 474,688
Administrative expenses 22 784,678 775,054
1,235,568 1,249,742

15.1.8 The following amounts have been recognised in the profit and loss account in respect of the staff
retirement gratuity:
Current service cost 488,215 344,245
Net Interest cost 747,353 905,497
Expenses 1,235,568 1,249,742

15.1.9 Net remeasurement for the year comprises of the following:

Actuarial gains due to changes in demographic assumptions
507,978 -
Actuarial losses due to experience adjustments - (12,964)
Amount chargeable to other comprehensive income 507,978 (12,964)

15.1.10 The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

Impact on defined benefit obligation

Change in Increase in Decrease in
assumptions assumption assumption
<------------Rupees------------>
Discount rate 1% 9,143,178 9,996,046
Salary growth rate 1% 9,996,046 9,136,190
15.1.11 The above sensitivity analysis are based on a change in an assumption while holding all other
assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions
may be correlated. When calculating the sensitivity of the defined benefit obligation to significant
actuarial assumptions the same method (present value of the defined benefit obligation calculated
with the projected unit credit method at the end of the reporting period) has been applied as when
calculating the staff retirement gratuity recognised within the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change
compared to the previous method
Based on actuary's advice the expected charge to profit and loss account for the year ending June 30,
2017 amounts to Rs. 1.230 million
Historical information
information
20162016 20152015 2014220140142013202013132012
----------------------Rupees
----------------------Rupees20201212
---------------------
---------------------
Present value of defined benefit ----------------------Rupees ---------------------
Present
benefit value of defined benefit
obligation
obligation 9,538,566
9,538,566 7,938,720
7,938,720 6,965,942 6,011,081 6,550,511
obligation 9,538,566 7,938,720 6,6,9965,65,942942
Experience
Experience adjustment
adjustment on
on 6,6,0011,11,081081 6,6,55550,0,5
obligation 507,978 (12,964)
(12,964) 42,081 (1,226,920) 2,659,339
Experience adjustment on