Unity Food QR Sep 2021 (Nov 02)

04 Unity Foods Limited 01st Quarterly Report September 2021-22 05
08 Unity Foods Limited 01st Quarterly Report September 2021-22 09

Directors’ Review Report
On behalf of the Board of Directors of Unity Foods Limited (the Company) we are pleased to present the Directors’ Review
Report for the first quarter ended September 30, 2021.
During the quarter, the Company’s unconsolidated topline stood at PKR 16.6 billion which is an impressive growth of over
36.3% over three months ended September 30, 2020. Despite turbulent times, your Company continues to excel and grow
and has been successful in achieving a gross profit of PKR 1.2 billion. However, owing to unprecedented and unpredictable
rupee devaluation during the quarter, our bottom-line has been adversely affected by PKR 683.8 million which comprises of
PKR 292.7 million realized exchange loss whereas the remaining PKR 391.1 million represents unrealized exchange loss. As a
result, the Company has incurred a net loss of PKR 28.7 million for the period. The unrealized loss corresponds to inventory
held by the Company at cost having higher Net Realizable Value (NRV) on the balance sheet date. The impact of such losses,
till the time of realization, may vary (positively or negatively) in line with exchange rate movement.
Your Company is cognizant of this inherent and exogenous risk and is in discussions with its suppliers and lenders to evaluate
potential structures under which its FCY exposure will be limited and resultantly reduce profit volatility owing to exchange
fluctuations.
During the quarter, Sunridge Foods (Pvt) Ltd., the 100% owned subsidiary of Unity Foods, posted sales of PKR 1.7 billion
with gross profit of PKR196 million and a net loss of PKR 5.5 million. Sales grew over 4 times compared to the quarter ended
September 2020 owing largely to rapid expansion of our brand, higher volumes and rising local prices. Sunridge’s selling and
distribution expenses have also increased by over 400% largely on account of brand building activities that will have a positive
impact on the market share going forward.
On a consolidated basis, our sales stood at around PKR 18.2 billion.
KEY FINANCIAL HIGHLIGHTS (Consolidated) 1QFY22 1QFY21 FY21 FY20
Net Sales 18,241 12,580 68,831 30,480
Gross Profits 1,421 1,098 5,651 2,100
Operating Profits 933 814 4,004 1,122
Net Profit/ (Loss) (34) 635 3,338 214
Earnings/ (Loss) per Share (0.03) 0.98 3.61 0.36
Total Assets 46,517 26,877 44,186 19,541
Total Equity 13,154 10,955 13,188 5,893
Risks and Uncertainties
The new financial year has brought exceptional challenges to the global economy as commodity and energy price surge remain
relentless as we report. This, coupled with devaluation, as explained above, has sprouted new challenges for the Company.
While our Industrial and Commercial Sales continue to provide a natural hedge to the business, the management remains
vigilant and is actively managing the business to keep adverse impacts to a minimum.
Future Outlook
The Company is now focusing on consolidating in the markets where it has achieved optimal product penetration. It will
continue to build relations with both its suppliers and distributors for smooth and efficient supply chain management, while
continuing to increase its market share with respect to consumer packs.
10 Unity Foods Limited

The Company will also continue to develop its client base in the Industrial and Commercial segment from where it can derive
steady cashflows. With Covid vaccination program moving forward smoothly in the country, the Company expects HORECA
sector to achieve full strength and complement the already supportive demand.
Appointment of Auditor
The Board has recommended appointment of KPMG Taseer Hadi & Co., Chartered Accountants as external auditor of the
Company for the financial year ending June 30, 2022.
Commitments and Contingencies
There have been no major changes in commitments affecting financial position of the Company’s affairs between the balance
sheet date and the date of this report.
Acknowledgements
Alhamdulillah, we are humbled and grateful to our various stakeholders including the shareholders, bankers and others in
the faith imposed in the Company that helped our growth over last four years. We thank them for their relentless support,
as without this it would not have been possible to achieve these successes in such a short span of time. We look forward to
this unwavering support and confidence from our stakeholders to help the Company grow further and expand our product
portfolio.
We also acknowledge the efforts and hard work of our committed human resource for the extraordinary efforts they have put
in to bring to fruition the outstanding results. We expect continued efforts from our employees to attain higher goals going
forward.
For and on behalf of the Board,
Muhammad Farrukh Abdul Majeed Ghaziani

Chief Executive Director
Karachi
October 27, 2021
01st Quarterly Report September 2021-22 11

Condensed Interim Unconsolidated Statement of Financial Position
As at September 30, 2021
September 30, 2021 June 30, 2021

Note (Unaudited) (Audited)
ASSETS -------------(Rupees)-------------
Non-current assets
Property, plant and equipment 5 7,723,537,767 7,759,129,877
Right-of-use assets 168,384,865 192,881,614
Intangible assets 8,671,574 9,321,846
Long term deposits 21,930,527 20,938,286
Long term investment 6 827,640,674 827,640,674
8,750,165,407 8,809,912,297
Current assets
Stock-in-trade 10,709,188,746 10,752,535,480
Stores and spares 55,065,111 38,402,176
Trade debts 11,915,699,553 12,290,844,147
Advances, deposits and prepayments 139,167,209 117,644,803
Other receivables 43,103,216 85,642,353
Sales tax receivable 393,287,611 400,635,324
Taxation - net of provision 3,208,787,813 2,865,729,672
Short term investments 7 9,372,073,045 6,858,985,954
Cash and bank balances 525,503,286 318,042,746
36,361,875,590 33,728,462,655
Total assets 45,112,040,997 42,538,374,952
EQUITY AND LIABILITIES

Share capital and reserves
Share capital 9,940,500,000 9,940,500,000
Unappropriated profit 3,410,114,476 3,438,779,398
13,350,614,476 13,379,279,398
Non-current liabilities
Long term loans 8 177,568,468 163,358,284
Lease liabilities 82,178,906 107,744,457
Deferred government grants 27,242,936 10,853,424
Deferred tax - net 107,059,198 64,772,714
394,049,508 346,728,879
Current liabilities
Current portion of long term loans 193,011,955 183,805,051
Current portion of lease liabilities 103,974,051 98,031,835
Current portion of deferred government grants 15,433,146 16,074,244
Trade and other payables 13,581,808,448 13,631,498,677
Accrued mark-up 260,010,816 188,730,879
Short term borrowings 17,212,469,590 14,693,556,982
Unclaimed dividend 669,007 669,007
31,367,377,013 28,812,366,675
Contingencies and commitments 9
Total equity and liabilities 45,112,040,997 42,538,374,952
The annexed notes from 1 to 17 form an integral part of these condensed interim unconsolidated financial statements.
Director Chief Executive Chief Financial Officer

Condensed Interim Unconsolidated Statement of Profit or Loss (Unaudited)
For the Quarter Ended September 30, 2021
Note September 30, 2021 September 30, 2020

-------------(Rupees)-------------
Net sales 10 16,586,501,751 12,169,277,409

Cost of sales (15,361,549,244) (11,167,087,618)
Gross profit 1,224,952,507 1,002,189,791
Selling and distribution expenses (163,770,955) (172,711,704)

Administrative expenses (117,489,032) (70,315,669)
Other operating (expenses) / income 11 (687,838,143) 12,020,506
(969,098,130) (231,006,867)
Other income 152,867,892 16,932,265

408,722,269 788,115,189
Finance cost (357,606,161) (146,470,386)

Profit before taxation 51,116,108 641,644,803
Taxation
Current (37,494,546) (23,613,864)
Deferred (42,286,484) (27,232,414)
(79,781,030) (50,846,278)
(Loss) / profit after taxation (28,664,922) 590,798,525
Basic and diluted (loss) / earnings per share 12 (0.03) 0.93

Unconsolidated Statement of Comprehensive Income (Unaudited)
September 30, 2021 September 30, 2020

-------------(Rupees)-------------
Other comprehensive income - -
Total comprehensive (loss) / income (28,664,922) 590,798,525

Unconsolidated Statement of Cash Flows (Unaudited)

-------------(Rupees)-------------
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from / (used in) operating activities 13 653,980,083 (2,310,616,223)
Taxes paid (380,552,687) (83,984,843)

Long term deposits paid (992,241) -
Net cash generated from / (used in) operating activities 272,435,155 (2,394,601,066)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment (35,373,745) (114,996,474)

Short term investments (2,506,958,469) (2,970,000,000)
Profit received on short term investments 222,259,361 2,523,863
Net cash used in investing activities (2,320,072,853) (3,082,472,611)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short term borrowings - net 2,667,720,832 2,759,775,452

Long term loan received 88,413,516 130,808,750
Long term loan repaid (49,119,730) -
Rentals paid against right-of-use assets (28,103,833) (8,090,850)
Lease liabilities - net - 4,972,003
Finance cost paid (275,004,323) (114,768,460)
Proceeds from issuance of right shares - 4,500,000,000
Transaction cost paid on issuance of right shares - (72,601,151)
Net cash generated from financing activities 2,403,906,462 7,200,095,744
Net increase in cash and cash equivalents 356,268,764 1,723,022,067
Cash and cash equivalents at the beginning of the period (938,797,367) (102,132,974)
Cash and cash equivalents at the end of the period 13.1 (582,528,603) 1,620,889,093

UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Unappropriated Total

profit
--------------------------(Rupees)--------------------------
Balance as at June 30, 2020 (audited) 5,440,500,000 409,190,974 5,849,690,974
Transactions with owners recorded directly in equity

Issuance of right shares 4,500,000,000 - 4,500,000,000
Transaction cost incurred on issuance of right shares - (72,601,151) (72,601,151)
Total comprehensive income

for the quarter ended September 30, 2020 - 590,798,525 590,798,525
Balance as at September 30, 2020 (Unaudited) 9,940,500,000 927,388,348 10,867,888,348
Balance as at June 30, 2021 (audited) 9,940,500,000 3,438,779,398 13,379,279,398
Total comprehensive loss

for the quarter ended September 30, 2021 - (28,664,922) (28,664,922)
Balance as at September 30, 2021 (Unaudited) 9,940,500,000 3,410,114,476 13,350,614,476

Notes to the Unconsolidated Financial Statements (Unaudited)
1 THE COMPANY AND ITS OPERATIONS
1.1 Unity Foods Limited (“the Company”) was incorporated in Pakistan in 1991 as a Private Limited Company under
the Companies Ordinance, 1984 (now the Companies Act, 2017) and subsequently converted into a Public Limited
Company on June 16, 1991. Shares of the Company are listed in Pakistan Stock Exchange since February 01, 1994.
The principal business activity of the Company has been changed from yarn manufacturing to edible oil extraction,
refining and related businesses.
1.2 Geographical locations and addresses of business units including plants of the Company are as under:
Addresses Purpose
Karachi, Sindh
- Unity Tower, Plot No. 8-C, Block-6, P.E.C.H.S. Registered Office of the Company
- Plot No. A-48, Industrial Zone, Port Qasim Oil Refinery
- Plot No. D-51 & D52 Industrial Zone, Port Qasim For Capacity Expansion
- Plot No. W2/1/67 & 68 Industrial Zone, Port Qasim For Capacity Expansion
Kotri, District Hyderabad, Sindh

- Plot No. N-25 & N-27/B, SITE Area Edible Oil Extraction Plant, Refinery and Pellitising Mills
Hub, Balochistan
- Plot No. C-375, C-376, C-377, C-382, C-383 and C-384 Soap plant
Hub Industrial Estate, Lasbella
1.3 The Company has the following subsidiary:
Name Percentage of shareholding

Sunridge Foods (Private) Limited 100%
2 STATEMENT OF COMPLIANCE
These condensed interim unconsolidated financial statements of the Company for the three months period ended
September 30, 2021 have been prepared in accordance with the requirements of the International Accounting
Standard (IAS) -34 “Interim Financial Reporting” and provisions issued under the Companies Act, 2017. In case where
the requirements differ, the provisions of and the directives issued under the Companies Act, 2017 have been followed.
These condensed interim unconsolidated financial statements do not include all the information and disclosures
required in the annual audited unconsolidated financial statements and should be read in conjunction with the
Company’s annual audited unconsolidated financial statements for the year ended June 30, 2021
3 ACCOUNTING ESTIMATES, JUDGEMENTS AND FINANCIAL RISK MANAGEMENT
3.1 The preparation of these condensed interim unconsolidated financial statements in conformity with approved
accounting standards require management to make estimates, assumptions and use judgements that affect the
application of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and
judgments are continually evaluated and are based on historical experience and other factors, including reasonable
expectations of future events. Revisions to accounting estimates are recognized prospectively commencing from
the period of revision. In preparing these condensed interim unconsolidated financial statements, the significant
judgments made by the management in applying the Company’s accounting policies and key sources of estimations
and uncertainties were the same as those that were applied to the annual audited unconsolidated financial statements
for the year ended June 30, 2021.
3.2 The Company’s financial risk management objectives and policies are consistent with those disclosed in the annual
audited unconsolidated financial statements for the year ended June 30, 2021.

4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies and the methods of computation adopted in the preparation of these condensed interim
unconsolidated financial statements are consistent with those applied in the preparation of the audited unconsolidated
financial statements for the year ended June 30, 2021.
4.1 Standards, interpretations and amendments to published approved accounting standards that are effective in the
current period:
Certain standards, amendments and interpretations to accounting standards are effective for accounting periods
beginning on July 01, 2021 but are considered not to be relevant or to have any significant effect on the Company’s
operations (although they may affect the accounting for future transactions and events) and are, therefore, not
detailed in these condensed interim unconsolidated financial statements.
4.2 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 July 01, 2022 but are considered not to be relevant or to
have any significant effect on the Company’s operations and are, therefore, not detailed in these condensed interim
unconsolidated financial statements.
Note September 30, 2021 June 30, 2021

(Unaudited) (Audited)
5 PROPERTY, PLANT AND EQUIPMENT -------------(Rupees)-------------
Operating fixed assets 5.1 5,662,395,342 5,704,554,574

Capital work-in-progress (CWIP) 5.2 2,061,142,425 2,054,575,303
7,723,537,767 7,759,129,877
5.1 Operating fixed assets
Written down value (WDV) - opening 5,704,554,574 2,733,661,828
Additions during the period / year- (at cost)

- Lease hold land - 624,293,130
- Building - 1,324,946,795
- Plant and machinery 16,445,808 1,068,790,021
- Furniture, fixture and office equipment 4,249,021 16,812,819
- Computer and auxilliary equipment 8,111,794 12,426,645
- Motor vehicles - 89,948,077
28,806,623 3,137,217,487
Disposals during the period / year - (WDV)
- Plant and machinery - (5,225,419)
- Furniture, fixture and office equipment - (377,910)
- Motor vehicles - (3,361,332)
- (8,964,661)
Depreciation charged during the period/ year (70,965,855) (157,360,080)
Written down value (WDV) - closing 5,662,395,342 5,704,554,574
5.2 Capital work-in-progress (CWIP)
Opening balance 2,054,575,303 597,263,138

Additions during the period/ year 6,567,122 4,471,388,499
Transferred / adjustments during the period/ year - (3,014,076,334)
Closing balance 2,061,142,425 2,054,575,303

-------------(Rupees)-------------
6 LONG TERM INVESTMENT
Unquoted - at cost
Wholly Owned Subsidiary
Investment in Sunridge Foods (Private) Limited 6.1 827,640,674 827,640,674
6.1 The Company holds 100% shares of Sunridge Foods (Private) Limited.
7 SHORT TERM INVESTMENTS
At fair value through profit or loss

Mutual funds 7.1 3,032,073,045 1,618,985,954
At amortized cost
Term deposit receipts 7.2 6,340,000,000 5,240,000,000
9,372,073,045 6,858,985,954
7.1 This represents HBL Cash Fund Units redeemable along with dividend units at closing price of previous day NAV. Units
amounting to Rs. 3,031.90 million (June 30, 2021: 1,618.82 million) is pledged as security against a loan of Rs. 2,980
million (June 30, 2021: 1,603.70 million) from Habib Bank Limited.
7.2 This carries profit at 6.5% - 7.2% (June 30, 2021: 6.5%) having maturity upto one year.

8 LONG TERM LOANS Note (Unaudited) (Audited)
-------------(Rupees)-------------
Financing under SBP Scheme - non-shariah arrangements 236,928,430 281,530,016

Financing under ITERF Scheme - shariah arrangement 8.1 133,651,993 65,633,319
370,580,423 347,163,335
Current portion shown under current liabilities (193,011,955) (183,805,051)
177,568,468 163,358,284
8.1 There is no material change in the terms and conditions of long term loans as disclosed in the annual audited
unconsolidated financial statements for the year ended June 30, 2021.
9 CONTINGENCIES AND COMMITMENTS
There are no significant changes in the status of contingencies and commitments as reported in note 23 to the annual
audited unconsolidated financial statements of the Company for the year ended June 30, 2021, except as disclosed
below in note 9.1 and 9.2.
9.1 Contingencies
In respect of the GIDC matter, as mentioned in note 23.1.1 of the annual audited unconsolidted financial statements
for the year ended June 30, 2021, during the period, the Honorable Supreme Court of Pakistan (SCP) passed an interim
order dated September 01, 2021, whereby granting an interim relief to the petitioners and directed that the impugned
judgement of High Court of Sindh dated June 4, 2021 and recovery of the impugned levy shall remain suspended.
The SCP further directed that the petitioners shall keep the bank guarantees valid and enforceable and shall furnish
fresh bank guarantees equivalent to the amount of levy claimed by the respondents against release of all future
consignments of imported goods till final judgement is passed by the SCP.

9.2 Commitments
Commitments under letter of credit for raw materials as at September 30, 2021 amounted to Rs. 3,303.15 million
(June 30, 2021: Rs. 6,093.50 million).
10 NET SALES -------------(Rupees)-------------
Local sales 16,586,501,751 11,859,201,913
Export sales - 310,075,496
16,586,501,751 12,169,277,409
11 OTHER OPERATING (EXPENSES) / INCOME

Exchange (loss) / gain (683,806,198) 57,600,273
Worker’s welfare fund (1,043,186) (12,839,371)
Worker’s profit participation fund (2,988,759) (32,740,396)
(687,838,143) 12,020,506
12 EARNINGS PER SHARE
---------(Number of shares)---------
Weighted average number of ordinary shares
outstanding during the quarter 994,050,000 636,984,783
-------------(Rupees)-------------
Basic and diluted (loss) / earnings per share (0.03) 0.93
13 CASH FLOWS FROM OPERATING ACTIVITIES

Adjustments for non-cash items:
Depreciation on operating fixed assets 70,965,855 33,057,390
Depreciation on right-of-use assets 27,051,303 7,376,617
Amortization on intangible assets 650,272 602,930
Amortization on deferred government grant (5,524,241) (5,696,669)
Exchange (gain)/ loss - unrealized 391,073,263 (22,789,021)
Gain on revaluation of mutual fund units - unrealized (6,128,622) -
Income from short term investment (94,416,883) (11,167,106)
Finance cost 357,606,161 146,470,386
792,393,216 789,499,330
Changes in working capital
(Increase)/ decrease in current assets:
Stock-in-trade 43,346,734 31,226,178
Stores and spares (16,662,935) (1,989,464)
Trade debts 375,144,594 (2,346,286,330)
Advances, deposits and prepayments (21,522,406) (7,357,555)
Other receivables (85,303,341) 1,688,942
Sales tax receivable 7,347,713 (135,801,354)
302,350,359 (2,458,519,583)
Increase/ (decrease) in current liabilities:
Trade and other payables (440,763,492) (640,400,574)
Sales tax payable - (1,195,396)
(440,763,492) (641,595,970)
Cash generated from / (used in) operating activities 653,980,083 (2,310,616,223)
13.1 Cash and cash equivalents comprise of:
Cash and bank balances 525,503,286 1,620,889,093

Short term borrowings - running finance (secured) (1,108,031,889) -
(582,528,603) 1,620,889,093

14 TRANSACTIONS AND BALANCES WITH RELATED PARTIES
Related parties comprise of the Subsidiary, associated companies, directors of the Company, companies in which the
Company’s Directors also hold directorship, related group companies, key management personnel and staff retirement
benefit funds. All transaction with related parties are under agreed terms/ contractual arrangements.
Transactions with related parties other than those disclosed elsewhere are as follows:
Transactions with related parties (Unaudited) For the quarter ended

Name of related party Nature of relationship Nature of transaction -------------(Rupees)-------------
Sunridge Foods (Private) Limited Subsidiary Purchases 42,231,438 -

Payments 40,000,000 -
Unity Feeds (Private) Limited Common directorship Sales 81,640,763 29,789,940

Sale proceeds 70,918,693 -
Provident fund Staff retirement benefit fund Contribution paid 8,013,511 5,505,654
Directors and executives Key management personnel Remuneration paid 34,958,969 11,378,821
Balance as at
Balances with related parties September 30, 2021 June 30, 2021
Name of related party Nature of relationship Nature of balance -------------(Rupees)-------------
Sunridge Foods (Private) Limited Subsidiary Trade creditor 13,970,217 11,738,779
Unity Feeds (Private) Limited Common directorship Trade debtor 81,640,763 70,918,693
Provident fund Staff retirement benefit fund Net contribution payable 2,566,762 2,239,746
15 CORRESPONDING FIGURES
Certain corresponding figures have been rearranged and reclassified, wherever considered necessary, for the purposes
of comparison and to reflect the substance of the transactions, the effect of which is immaterial.
16 GENERAL
Figures have been rounded-off to the nearest rupee unless otherwise stated.
17 DATE OF AUTHORIZATION FOR ISSUE
These condensed interim unconsolidated financial statements were authorized for issue in the Board of Directors
meeting held on October 27, 2021.

Condensed Interim Consolidated Statement of Financial Position
As at September 30, 2021

ASSETS ------------------(Rupees)-------------------
Non-current assets
Property, plant and equipment 5 8,809,069,398 8,663,518,821
Right-of-use assets 173,242,877 198,043,252
Intangible assets 290,178,405 290,842,478
Long term deposits 27,793,073 25,780,830
9,300,283,753 9,178,185,381
Current assets
Stock-in-trade 11,093,027,794 11,767,752,193
Stores and spares 55,065,111 38,402,176
Trade debts 12,341,925,500 12,508,420,427
Advances, deposits and prepayments 149,458,670 139,027,298
Other receivables 43,904,760 86,420,577
Sales tax receivable 393,287,611 400,635,324
Taxation - net of provision 3,227,766,833 2,877,586,894
Short term investments 6 9,372,073,045 6,858,985,954
Cash and bank balances 540,682,742 330,464,916
37,217,192,066 35,007,695,759
Total assets 46,517,475,819 44,185,881,140
EQUITY AND LIABILITIES

Share capital and reserves
Share capital 9,940,500,000 9,940,500,000
Unappropriated profit 3,213,727,449 3,247,910,090
13,154,227,449 13,188,410,090
Non-current liabilities
Long term loans 7 177,568,468 171,547,909
Lease liabilities 87,394,758 113,215,439
Staff Retirement Benefits 6,233,100 5,513,100
Deferred government grants 27,242,936 11,172,954
Deferred tax - net 36,278,497 1,110,446
334,717,759 302,559,848
Current liabilities
Current portion of long term loans 213,775,861 199,367,074
Current portion of lease liabilities 104,942,949 98,927,742
Current portion of deferred government grants 16,700,845 17,341,943
Trade and other payables 13,807,987,728 13,982,556,582
Accrued mark-up 260,010,816 214,320,052
Short term borrowings 18,595,954,209 16,136,556,982
Contract liabilities 28,489,196 45,171,820
Unclaimed dividend 669,007 669,007
33,028,530,611 30,694,911,202
Contingencies and commitments 8 - -
Total equity and liabilities 46,517,475,819 44,185,881,140
The annexed notes from 1 to 16 form an integral part of these condensed interim consolidated financial statements.

Condensed Interim Consolidated Statement of Profit or Loss (Unaudited)

------------------(Rupees)-------------------
Net sales 9 18,241,318,941 12,580,304,091

Cost of sales (16,820,236,136) (11,482,541,991)
Gross profit 1,421,082,805 1,097,762,100
Selling and distribution expenses (363,066,026) (209,073,921)

Administrative expenses (125,392,790) (74,935,770)
Other operating (expenses) / income 10 (687,888,769) 8,810,115
(1,176,347,585) (275,199,576)
Other income 194,854,485 17,404,732

439,589,705 839,967,256
Finance cost (398,997,642) (153,717,840)

Taxation
Current (39,707,781) (24,303,400)
Deferred (35,066,923) (27,232,414)
(74,774,704) (51,535,814)
(Loss) / profit attributable to:

Owners of the Holding Company (34,182,641) 621,099,928
Non-controlling interest - 13,613,674
(34,182,641) 634,713,602
Basic and diluted (loss) / earnings per share 11 (0.03) 0.98

Consolidated Statement of Comprehensive Income (Unaudited)

-------------(Rupees)-------------
Other comprehensive income - -
Remeasurement gain on staff retirement benefits - 210,388
Total comprehensive (loss) / income (34,182,641) 634,923,990
Total comprehensive (loss) / income for the period attributable to:

Owners of the Holding Company (34,182,641) 621,245,096
Non-controlling interest - 13,678,894
(34,182,641) 634,923,990

Consolidated Statement of Cash Flows (Unaudited)

-------------(Rupees)-------------
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from / (used in) operating activities 12 984,648,344 (2,334,250,255)
Taxes paid (388,674,014) (84,320,367)

Staff gratuity paid - (657,100)
Long term deposits paid (992,241) -
Net cash generated from / (used in) operating activities 594,982,089 (2,419,227,722)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment (224,384,897) (566,815,339)

Short term investments (2,506,958,469) (2,970,000,000)
Long term deposits paid - (200,000)
Profit received on short term investments 222,259,361 2,523,863
Net cash used in investing activities (2,509,084,005) (3,534,491,476)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short term borrowings - net 2,580,329,764 2,759,775,452

Long term loan received 88,413,516 141,945,893
Long term loan repaid (53,220,052) -
Rentals paid against right-of-use assets (28,103,833) (8,090,850)
Lease liabilities - net (182,139) 4,832,572
Loan repaid to related party - (75,490,811)
Finance cost paid (309,500,358) (122,467,453)
Proceeds from issuance of right shares - 4,500,000,000
Transaction cost paid on issuance of right shares - (72,601,151)
Net cash generated from financing activities 2,277,736,898 7,127,903,652
Net increase in cash and cash equivalents 363,634,982 1,174,184,454
Cash and cash equivalents at the beginning of the period (2,369,375,197) (181,559,891)
Cash and cash equivalents at the end of the period 12.1 (2,005,740,215) 992,624,563

Consolidated Statement of Changes in Equity
Attributable to equity holders of the Holding Company
Unappropriated Non - Controlling
Share capital Total Reserves Total Equity
profit Interest
--------------------------(Rupees)--------------------------
Balance as at June 30, 2020 (audited) 5,440,500,000 412,785,010 5,853,285,010 39,934,537 5,893,219,547
Transactions with owners recorded directly in equity

Issuance of right shares 4,500,000,000 - 4,500,000,000 - 4,500,000,000
Transaction cost incurred on issuance of right shares - (72,601,151) (72,601,151) - (72,601,151)

for the quarter ended September 30, 2020 - 621,245,096 621,245,096 13,678,894 634,923,990
Balance as at September 30, 2020 (Unaudited) 9,940,500,000 961,428,955 10,901,928,955 53,613,431 10,955,542,386
Balance as at June 30, 2021 (audited) 9,940,500,000 3,247,910,090 13,188,410,090 - 13,188,410,090

for the quarter ended September 30, 2021 - (34,182,641) (34,182,641) - (34,182,641)
Balance as at September 30, 2021 (Unaudited) 9,940,500,000 3,213,727,449 13,154,227,449 - 13,154,227,449

Notes to the Consolidated Financial Statements (Unaudited)
1 THE GROUP AND ITS OPERATIONS
The Group consists of Unity Foods Limited (“the Holding Company”) and its subsidiary company namely
Sunridge Foods (Private) Limited (“the Subsidiary Company”). Brief profiles of the Holding Company and the Subsidiary
are as follows:
1.1 Unity Foods Limited
Unity Foods Limited was incorporated in Pakistan in 1991 as a Private Limited Company under the Companies
Ordinance, 1984 (now the Companies Act, 2017) and subsequently converted into a Public Limited Company on June
16, 1991. Shares of the Holding Company are listed in Pakistan Stock Exchange since February 01, 1994. The principal
business activity of the Holding Company has been changed from yarn manufacturing to edible oil extraction, refining
and related businesses.
1.2 Sunridge Foods (Private) Limited
Sunridge Foods (Private) Limited was incorporated in Pakistan as a private limited company on March 16, 2015 under
the Companies Ordinance, 1984 (now the Companies Act, 2017). The principal activity of the Subsidiary Company is
processing of food items.
1.3 Geographical locations and addresses of business units including plants of the Group are as under:
Addresses Purpose
Karachi, Sindh
- Unity Tower, Plot No. 8-C, Block-6, P.E.C.H.S. Registered Office of the Holding Company
- 4th floor, 73-C, Jami Commercial Street No. 8, DHA Phase VII Registered Office of the Subsidiary Company
- Plot No. A-48, Industrial Zone, Port Qasim Oil Refinery of the Holding Company
- C6, North west zone, Port Qasim Pesa Flour Plant of the Subsidiary Company
- Plot No. D-51 & D52 Industrial Zone, Port Qasim For Capacity Expansion of Holding Company
- Plot No. W2/1/67 & 68 Industrial Zone, Port Qasim For Capacity Expansion of Holding Company
- Industrial Plot no. H/14, Site Super Highway,
Phase II, Karachi Flour Mill of the Subsidiary Company
Kotri, District Hyderabad, Sindh
- Plot No. N-25 & N-27/B, SITE Area Edible Oil Extraction Plant, Refinery and Pellitising Mills
of the Holding Company
Hub, Balochistan
- Plot No. C-375, C-376, C-377, C-382,
C-383 and C-384 Hub Industrial Estate, Lasbella Soap plant - of the Holding Company
2 STATEMENT OF COMPLIANCE
These condensed interim consolidated financial statements of the Group for the three months period ended September
30, 2021 have been prepared in accordance with the requirements of the International Accounting Standard (IAS) -34
“Interim Financial Reporting” and provisions issued under the Companies Act, 2017. In case where the requirements
differ, the provisions of and the directives issued under the Companies Act, 2017 have been followed.
These condensed interim consolidated financial statements do not include all the information and disclosures required
in the annual audited consolidated financial statements and should be read in conjunction with the Group’s annual
audited consolidated financial statements for the year ended June 30, 2021.
3 ACCOUNTING ESTIMATES, JUDGEMENTS AND FINANCIAL RISK MANAGEMENT
3.1 The preparation of these condensed interim consolidated financial statements in conformity with approved accounting
standards require management to make estimates, assumptions and use judgements that affect the application of
policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and judgments are
continually evaluated and are based on historical experience and other factors, including reasonable expectations

of future events. Revisions to accounting estimates are recognized prospectively commencing from the period of
revision. In preparing these condensed interim consolidated financial statements, the significant judgments made by
the management in applying the Group’s accounting policies and key sources of estimations and uncertainties were
the same as those that were applied to the annual audited consolidated financial statements for the year ended June
30, 2021.
3.2 The Group’s financial risk management objectives and policies are consistent with those disclosed in the annual
audited consolidated financial statements for the year ended June 30, 2021.
4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies and the methods of computation adopted in the preparation of these condensed interim
consolidated financial statements are consistent with those applied in the preparation of the audited consolidated
financial statements for the year ended June 30, 2021.
4.1 Standards, interpretations and amendments to published approved accounting standards that are effective in the
current period:
Certain standards, amendments and interpretations to accounting standards are effective for accounting periods
beginning on July 01, 2021 but are considered not to be relevant or to have any significant effect on the Group’s
operations (although they may affect the accounting for future transactions and events) and are, therefore, not
detailed in these condensed interim consolidated financial statements.
4.2 Standards, amendments and interpretations to existing standards that are not yet effective and have not been
early adopted by the Group:
There are certain standards, amendments to the accounting standards and interpretations that are mandatory for the
Group’s accounting periods beginning on or after July 01, 2022 but are considered not to be relevant or to have any
significant effect on the Group’s operations and are, therefore, not detailed in these condensed interim consolidated
financial statements.
Note September 30, 2021 June 30, 2021
------------------(Rupees)-------------------
5 PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets 5.1 6,478,921,200 6,318,337,713
Capital work-in-progress (CWIP) 5.2 2,330,148,197 2,345,181,108
8,809,069,398 8,663,518,821
5.1 Operating fixed assets
Written down value (WDV) - opening 6,318,337,713 3,005,956,547

Additions during the period/ year- (at cost)
- Lease hold land 206,002,010 745,670,130
- Building - 1,402,878,506
- Plant and machinery 20,257,613 1,227,782,586
- Furniture, fixture and office equipment 5,046,391 17,200,292
- Computer and auxilliary equipment 8,111,794 14,890,851
- Motor vehicles - 95,990,682
239,417,808 3,504,413,047
Disposals during the period/ year- (WDV)
- Plant and machinery - (5,225,419)
- Furniture, fixture and office equipment - (377,910)
- Motor vehicles - (5,560,352)
- (11,163,681)
Depreciation charged during the period/ year (78,834,321) (180,868,200)
Written down value (WDV) - closing 6,478,921,200 6,318,337,713

5.2 Capital work-in-progress (CWIP) Note (Unaudited) (Audited)
-------------(Rupees)-------------
Opening balance 2,345,181,108 610,192,212

Additions during the period/ year 190,969,099 5,074,677,739
Transferred / adjustments during the period/ year (206,002,010) (3,339,688,843)
Closing balance 2,330,148,197 2,345,181,108
6 SHORT TERM INVESTMENTS
At fair value through profit or loss

Mutual funds 6.1 3,032,073,045 1,618,985,954
At amortized cost
Term deposit receipts 6.2 6,340,000,000 5,240,000,000
9,372,073,045 6,858,985,954
6.1 This represents HBL Cash Fund Units redeemable along with dividend units at closing price of previous day NAV . Units
amounting to Rs. 3,031.90 million (June 30, 2021: 1,618.82 million) is pledged as security by the Holding Company
against a loan of Rs. 2,980 million (June 30, 2021: 1,603.70 million) from Habib Bank Limited.
6.2 This carries profit at 6.5% - 7.2% (June 30, 2021: 6.5%) having maturity upto one year.

7 LONG TERM LOANS Note (Unaudited) (Audited)
-------------(Rupees)-------------
Financing under SBP Scheme - non-shariah arrangements 257,692,336 305,281,664

Financing under ITERF Scheme - shariah arrangement 7.1 133,651,993 65,633,319
391,344,329 370,914,983
Current portion shown under current liabilities (213,775,861) (199,367,074)
177,568,468 171,547,909
7.1 There is no material change in the terms and conditions of long term loans as disclosed in the annual audited
consolidated financial statements for the year ended June 30, 2021.
8 CONTINGENCIES AND COMMITMENTS
There are no significant changes in the status of contingencies and commitments as reported in note 25 to the annual
audited consolidated financial statements of the Group for the year ended June 30, 2021, except as disclosed in note
8.1 and 8.2 below.
8.1 Contingencies
In respect of the GIDC matter, as mentioned in note 25.1.1 of the annual audited unconsolidted financial statements
for the year ended June 30, 2021, during the period, the Honorable Supreme Court of Pakistan (SCP) passed an
interim order dated September 01, 2021, whereby granting an interim relief to the petitioners and directed that the
impugned judgement of High Court of Sindh dated June 4, 2021 and recovery of the impugned levy shall remain
suspended. The SCP further directed that the petitioners shall keep the bank guarantees valid and enforceable and
shall furnish fresh bank guarantees equivalent to the amount of levy claimed by the respondents against release of all
future consignments of imported goods till final judgement is passed by the SCP.
8.2 Commitments
Commitments under letter of credit for raw materials as at September 30, 2021 amounted to Rs. 3,303.15 million
(June 30, 2021: Rs. 6,093.50 million).

9 NET SALES -------------(Rupees)-------------
Local sales 17,405,882,093 12,270,228,595

Export sales 835,436,848 310,075,496
18,241,318,941 12,580,304,091
10 OTHER OPERATING (EXPENSES) / INCOME
Exchange (loss) / gain (683,806,198) 57,600,273

Worker’s welfare fund (1,043,186) (13,735,671)
Worker’s profit participation fund (2,988,759) (35,025,961)
Others (50,626) (28,526)
(687,888,769) 8,810,115
11 EARNINGS PER SHARE

---------(Number of shares)---------
Weighted average number of ordinary shares
outstanding during the quarter 994,050,000 636,984,783
-------------(Rupees)-------------
Basic and diluted (loss) / earnings per share (0.03) 0.98
12 CASH FLOWS FROM OPERATING ACTIVITIES

Adjustments for non-cash items:
Depreciation on operating fixed assets 78,834,321 37,207,306
Depreciation on right-of-use assets 27,354,929 7,680,243
Amortization on intangible assets 664,072 602,930
Amortization on deferred government grant (5,843,771) (6,046,586)
Exchange loss / (gain) - unrealized 391,073,263 (22,789,022)
Gain on revaluation of mutual fund units - unrealized (6,128,622) -
Expected credit loss - 28,526
Provision for staff gratuity 720,000 1,416,051
Profit on short term investment (94,416,883) (11,167,106)
Liability written back (5,664,364)
Finance cost 398,997,642 153,717,840
826,182,650 846,899,598
Changes in working capital
(Increase)/ decrease in current assets:
Stock-in-trade 674,724,399 278,330,179
Stores and spares (16,662,935) (1,989,464)
Trade debts 164,263,489 (2,421,553,255)
Advances, deposits and prepayments (11,451,372) (12,341,725)
Other receivables (85,326,661) 1,583,599
Sales tax receivable 7,347,713 (135,801,354)
732,894,633 (2,291,772,020)
Increase/ (decrease) in current liabilities:
Trade and other payables (557,746,315) (887,676,909)
Sales tax payable - (1,195,396)
Contract liabilities (16,682,624) (505,528)
(574,428,939) (889,377,833)
Cash generated from / used in operating activities 984,648,344 (2,334,250,255)

-------------(Rupees)-------------
12.1 Cash and cash equivalents comprise of:
Cash and bank balances 540,682,742 1,661,357,099

Short term borrowings - running finance (secured) (2,546,422,957) (668,732,536)
(2,005,740,215) 992,624,563
13 TRANSACTIONS AND BALANCES WITH RELATED PARTIES
Related parties comprise of the Subsidiary, associated companies, directors of the Holding Company, companies in
which the Group’s Directors also hold directorship, related group companies, key management personnel and staff
retirement benefit funds. All transaction with related parties are under agreed terms/ contractual arrangements.
Transactions with related parties other than those disclosed elsewhere are as follows:
Transactions with related parties (Unaudited) For the quarter ended

Name of related party Nature of relationship Nature of transaction -------------(Rupees)-------------
Unity Feeds (Private) Limited Common directorship Sales 81,640,763 29,789,940

Sales proceeds 70,918,693 -
Unity Enterprises (Private) Limited Common directorship Loan repaid - 75,490,811
Provident fund Staff retirement benefit fund Contribution paid 8,013,511 5,505,654
Directors and executives Key management personnel Remuneration paid 40,735,787 11,378,821
Balances with related parties Balance as at

Name of related party Nature of relationship Nature of balance -------------(Rupees)-------------
Unity Feeds (Private) Limited Common directorship Trade debtor 81,640,763 70,918,694
Provident fund Staff retirement benefit fund Net contribution payable 2,566,762 2,239,746
14 CORRESPONDING FIGURES
Certain corresponding figures have been rearranged and reclassified, wherever considered necessary, for the purposes
of comparison and to reflect the substance of the transactions, the effect of which is immaterial.
15 GENERAL
Figures have been rounded-off to the nearest rupee unless otherwise stated.
16 DATE OF AUTHORIZATION FOR ISSUE
These condensed interim consolidated financial statements were authorized for issue in the Board of Directors
meeting held on October 27, 2021.

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04 Unity Foods Limited 01st Quarterly Report September 2021-22 05

08 Unity Foods Limited 01st Quarterly Report September 2021-22 09

On a consolidated basis, our sales stood at around PKR 18.2 billion.

KEY FINANCIAL HIGHLIGHTS (Consolidated) 1QFY22 1QFY21 FY21 FY20

Net Sales 18,241 12,580 68,831 30,480

Gross Profits 1,421 1,098 5,651 2,100

Operating Profits 933 814 4,004 1,122

Net Profit/ (Loss) (34) 635 3,338 214

Earnings/ (Loss) per Share (0.03) 0.98 3.61 0.36

Total Assets 46,517 26,877 44,186 19,541

Total Equity 13,154 10,955 13,188 5,893

Risks and Uncertainties

10 Unity Foods Limited

Commitments and Contingencies

For and on behalf of the Board,

Muhammad Farrukh Abdul Majeed Ghaziani

01st Quarterly Report September 2021-22 11

September 30, 2021 June 30, 2021

Total assets 45,112,040,997 42,538,374,952

EQUITY AND LIABILITIES

Director Chief Executive Chief Financial Officer

14 Unity Foods Limited

Note September 30, 2021 September 30, 2020

Net sales 10 16,586,501,751 12,169,277,409

Selling and distribution expenses (163,770,955) (172,711,704)

Other income 152,867,892 16,932,265

Finance cost (357,606,161) (146,470,386)

(Loss) / profit after taxation (28,664,922) 590,798,525

Basic and diluted (loss) / earnings per share 12 (0.03) 0.93

Director Chief Executive Chief Financial Officer

01st Quarterly Report September 2021-22 15

September 30, 2021 September 30, 2020

(Loss) / profit after taxation (28,664,922) 590,798,525

Other comprehensive income - -

Total comprehensive (loss) / income (28,664,922) 590,798,525

Director Chief Executive Chief Financial Officer

16 Unity Foods Limited

Note September 30, 2021 September 30, 2020

Cash generated from / (used in) operating activities 13 653,980,083 (2,310,616,223)

Taxes paid (380,552,687) (83,984,843)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of property, plant and equipment (35,373,745) (114,996,474)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from short term borrowings - net 2,667,720,832 2,759,775,452

Net increase in cash and cash equivalents 356,268,764 1,723,022,067

Director Chief Executive Chief Financial Officer

01st Quarterly Report September 2021-22 17

Share capital Unappropriated Total

Balance as at June 30, 2020 (audited) 5,440,500,000 409,190,974 5,849,690,974

Transactions with owners recorded directly in equity

Total comprehensive income

Balance as at September 30, 2020 (Unaudited) 9,940,500,000 927,388,348 10,867,888,348

Balance as at June 30, 2021 (audited) 9,940,500,000 3,438,779,398 13,379,279,398

Total comprehensive loss

Balance as at September 30, 2021 (Unaudited) 9,940,500,000 3,410,114,476 13,350,614,476

Director Chief Executive Chief Financial Officer

18 Unity Foods Limited

1 THE COMPANY AND ITS OPERATIONS

Kotri, District Hyderabad, Sindh