pdf Halfyearly Report 2015 design all pages - Rafhan Maize · which falls in the sphere of Section 50, 158 and 233 of the Companies Ordinance, 1984, w e have attached the request

(Rs. Million)(Rs. Million)(Rupees)

The Directors are pleased to present the un-audited accounts of your Company for the six months ended June 30, 2015.

Net SalesNet Income after TaxEarnings per Share

Whereas macro-economic indicators showed some improvement, the overall industrial and business conditions remained difficult during the period under review. This scenario led to softening of demand in almost all consuming segments of our ingredients. In order to meet the challenge of recession in demand, we focused on cost cutting efforts and, consequently, your Company, by the grace of Almighty Allah, has been successful in posting 18% growth in earnings per share. Our strategic initiatives of continuous improvement backed by Lean/Six Sigma, procurement excellence and cost effective production planning helped to counter the negative trends of escalating costs induced by usage of high cost alternate fuels to meet en

Industrial business displayed mixed growth. Weakening of export base in textiles, volatility in cost of production and cash constraints faced by the trade affected the manufacturing sector to work below normal level. Uncertainty around the demand for Industrial ingredients and high cost of alternative fuels as a result of deteriorating energy supplies continued to be a prime concern of domestic industry. Changing quality patterns remained supportive to sale of modified starches in textiles. In paper segment, sales volume has dropped mainly due to energy issues and cheaper imports of paper. The corrugation segment operated normal to meet packaging demand from fruits, textile, sports and other packed products.

The external environment remained challenging for food ingredient business. The pressure on disposable incomes impacted overall consumer buying for food products. Severe energy crises, floods, torrential rains and drying up of small size sector plunged food business dynamics. However, large scale and export led food and confectionery units showed consistency in their operations which supported food business. Dextrose sales continued to face the heat of cheaper imports. Our R&D team is vigorously working on specialties for value addition in emerging food segment evolving customer needs and extending customer base.

The overall business conditions in Pakistan continue to remain challenging. Much of our business performance depends upon the industrial growth and overall economic revival of the country. Recession in demand from major consuming segments continues to

remain the main factor affecting business growth and we are making all out efforts to face this challenge by taking measures to fill in the gaps through aggressive sales/marketing strategies. However, the persistent energy shortage, ongoing war against terrorism

and security threats, decline in exports and inconsistent taxation policies continue to put pressure on business growth momentum.

ergy shortfall.

The livestock feed market continued to face the issues like diseases in poultry and lower demand from the market. Hence, overall demand for our feed ingredients remained depressed from Poultry and Livestock.

12,688 1,439 155.74

2015

12,7711,224

132.48

2014

Six Months Ended June 30

FINANCIAL RESULTS

BUSINESS REVIEW

FUTURE OUTLOOK

Your Company is adhering to energy conservation initiatives, bringing diversification in products and their application and compliance to regulatory requirements to meet the challenges ahead. We stand committed to work hard to deliver performance as per our goals for the full year of 2015.

May Allah give us the courage to face the challenges ahead. A’meen!

August 11, 2015

On behalf of the Board

Ansar Yahya Chief Executive &Managing Director

DIVIDEND MANDATE

In accordance with SECP's directives, all shareholders, who have not yet opted for dividend mandate, are requested to authorize the company to directly credit all future cash dividends to their bank account by conveying following particulars to our Shares Registrars M/s FAMCO Associates (Pvt.) Ltd, 8-F, Next to Hotel Faran, Nursery, Block-6, PECHS, Shahrah-e-Faisal, Karachi.

CDC shareholders will reply to their respective Stock Exchange Broker.

CNIC Number

Pursuant to the directives of the SECP, CNIC number is mandatorily required to be mentioned on dividend warrants. In case of non-receipt of the copy of valid CNIC, the Company would be unable to comply with SRO 831(1)/2012 dated 5 July 2012 of SECP and therefore may be constrained under Section 251(2)(a) of the Companies Ordinance, 1984 to withhold dispatch of dividend warrants of such shareholders in future. Please submit a copy of your valid CNIC (only Physical Shareholders), if not already provided to the Shares Registrars of the Company. Corporate account holders should submit National Tax Number, if not yet submitted.

Title of Bank Account Bank Account NumberBank Name Branch Name and AddressCell/Landline Number of Shareholder CNIC Number

Deduction of Income Tax from Dividend under Section 150

The Government of Pakistan through Finance Act, 2015 has made certain amendments in Section 150 of the Income Tax Ordinance, 2001 whereby different rates are prescribed for deduction of withholding tax on the amount of dividend paid by the companies. These tax rates are as under:

For filers of income tax returns 12.5%For non-filers of income tax returns 17.5%

To enable the company to make tax deduction on the amount of cash dividend @12.5% instead of 17.5%, all the shareholders whose names are not entered into the Active Taxpayers List (ATL) provided on the website of FBR, despite the fact that they are filers, are advised to make sure that their names are entered into ATL before the date for payment of the cash dividend i.e. September 7, 2015 otherwise tax on their cash dividend will be deducted @17.5% instead of 12.5%.

According to clarification received from Federal Board of Revenue (FBR), with-holding tax will be determined separately on 'Filer/Non-Filer' status of Principal shareholder as well as joint-holder (s) based on their shareholding proportions, in case of joint accounts.

In this regard all shareholders who hold shares jointly are requested to provide shareholding proportions of Principal shareholder and Joint-holder(s) in respect of shares held by them if not provided yet, to our Share Registrar, in writing as follows, up to September 7, 2015 otherwise it will be assumed that shares are equally held:

I M P O R TA N T N O T E S T O S H A R E H O L D E R S I M P O R TA N T N O T E S T O S H A R E H O L D E R S

In another clarification by federal Board of Revenue, valid tax exemption certificate for claim of exemption U/S 150, 151 and 233 of the Income Tax Ordinance, 2001 is required where statutory exemption under Clause 47B of Part-IV of the Second Schedule is available. Such certificate U/S 159(1) of the Income Tax Ordinance, 2001 issued by concerned Commissioner of Inland Revenue is to be produced to avail tax exemption.

For any query/problem/information, the investors may contact the company and/or the Shares Registrar at the following phone numbers, email addresses -

Company Contact: Shares Registrar:Manager Shareholders Services & CGC, Mr. Fakhar AbbasiRafhan Maize Products Co. Ltd., M/s FAMCO Associates (Pvt.) Ltd,Rakh Canal East Road, Faisalabad. 8-F, Next to Hotel Faran, Nursery,Tel.No.041-8540121 Ext.248 & 348 Block-6, PECHS, Shahrah-e-Faisal, [email protected] Tel.No.021-34380101-05 Ext. 118

Email:[email protected]

The corporate shareholders having CDC accounts are required to have their National Tax Number (NTN) updated with their respective participants, whereas corporate physical shareholders should send a copy of their NTN certificate to the company or its Shares Registrar M/s FAMCO Associates (Pvt.) Ltd. The shareholders while sending NTN or NTN certificates, as the case may be, must quote company name and their respective folio numbers.

Annual Accounts

Annual Accounts of the Company for the financial year ended December 31, 2014 have been placed on the Company's website www.rafhanmaize.com

Pursuant to SECP's SRO 787(I)/2014 dated September 8, 2014 regarding electronic transmission of Annual Report and notice which falls in the sphere of Section 50, 158 and 233 of the Companies Ordinance, 1984, we have attached the request form in our Annual Report, this Half Yearly Report and also uploaded on our Company's website www.rafhanmaize.com

Members desirous to avail this facility are requested to submit the request form duly filled to our Shares Registrar.

Company Name Folio/CDS

A/C #

TotalShares

Principal ShareholderName & CNIC # Share

holdingPropor-tion (No. of Shares)

Joint ShareholderShareholdingPropor-tion (No. of Shares)

Name & CNIC #


Request FormConsent for Circulation of Annual Audited Financial Statements through e-mail

Company Name : Rafhan Maize Products Co. Ltd.

Folio No./CDC sub-account No.

E-mail Address:

CNIC No.

The above e-mail address will be recorded in the members register maintained under Section 147 of the Companies Ordinance, 1984. I will inform the Company or the Registrar about any change in my e-mail address immediately. Henceforth, I will receive the Audited Financial Statements along with Notice only on the above e-mail address, unless a hard copy has been specifically requested by me.

Name and Signature of Shareholder(Attachment : Copy of CNIC)


IntroductionWe have reviewed the accompanying condensed interim balance sheet of Rafhan Maize Products Co. Ltd. ("the Company")as at 30 June 2015 and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim cash flow statement and condensed interim statement of changes in equity together with the notes forming part thereof for the six months period then ended (here-in-after referred to as "the condensed interim financial infromation"). Management is responsible for the preparation and presentation of this condensed interim financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on this condensed interim financial information based on our review.

Scope of reviewWe conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A review of condensed interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other reviewprocedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

ConclusionBased on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information as at and for the six months period ended 30 June 2015 is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.

Other matter

The figures for the quarter ended 30 June 2015 and 30 June 2014 in the condensed interim profit and loss account and condensed interim statement of comprehensive income have not been reviewed by us and we do not express a conclusion on them.

Lahore:August 11, 2015

4

5

00000000000000000000000000000

000

00

NoteNON CURRENT ASSETSProperty, Plant and EquipmentIntangiblesLong Term Loans

CURRENT ASSETSStores and sparesStock in tradeTrade debtsLoans and advancesTrade deposits and short term prepayments Other receivables Cash and bank balances

CURRENT LIABILITIESTrade and other payablesMark up accrued on short term running financesShort term running finances - securedProvision for taxation-net

WORKING CAPITALTOTAL CAPITAL EMPLOYED

NON CURRENT LIABILITIESDeferred liabilities

NET CAPITAL EMPLOYED

REPRESENTED BY:

SHARE CAPITAL AND RESERVESShare capitalReservesCONTINGENCIES AND COMMITMENTS

0

00

0

5,717,4114,0196,390

5,727,820

726,6285,245,154955,495212,285210,048124,333319,951

7,793,894

1,814,6734,222

515,398401,853

2,736,1465,057,748

10,785,568

681,609

10,103,959

92,36410,011,595

10,103,959

30 June 2015(Un-audited)

0

00

0

5,165,3887,3754,243

5,177,006

676,8102,727,126902,666162,408117,47718,759

3,115,8317,721,077

2,201,98314-

339,5832,541,5805,179,497

10,356,503

675,055

9,681,448

92,3649,589,084

9,681,448

31 December 2014(Audited)

(Rupees in thousands)

The annexed notes from 1 to 13 form an integral part of this condensed interim financial information.

C O N D E N S E D I N T E R I M B A L A N C E S H E E T C O N D E N S E D I N T E R I M B A L A N C E S H E E T As at 30 June 2015 (Un-audited)As at 30 June 2015 (Un-audited)

Sales-Net

Cost of sales

Gross profit

Distribution expensesAdministrative expenses Other income Other operating expenses

Operating profit

Finance cost

Profit before taxation

Taxation

Profit after taxation

Earnings per share-basic and diluted-(Rupees)


6

7

0

000

00

000

0

0

00

0

0

0

Note

)

))

))

)

)

12,771,143

(10,563,619

2,207,524

(126,502(178,56548,137

(106,063(362,9931,844,531

(94,363

1,750,168

(526,539

1,223,629

132.48

30 June2015

)

))

))

)

)

12,688,168

(10,121,292

2,566,876

(136,634(200,90464,242

(161,500(434,7962,132,080

(13,514

2,118,566

(680,048

1,438,518

155.74

Six months ended

30 June2014

)

))

))

)

)

6,613,755

(5,422,673

1,191,082

(70,024(88,5106,309

(40,289(192,514998,568

(54,163

944,405

(279,839

664,566

71.95

30 June2015

)

))

))

)

)

6,668,865

(5,286,860

1,382,005

(70,338(105,82414,349 (84,000

(245,8131,136,192

(8,597

1,127,595

(370,607

756,988

81.96

Three months ended

30 June2014


C O N D E N S E D I N T E R I M P R O F I T A N D L O S S A C C O U N T C O N D E N S E D I N T E R I M P R O F I T A N D L O S S A C C O U N T For the six months period ended 30 June 2015 (Un-audited)For the six months period ended 30 June 2015 (Un-audited)

Profit for the period Other comprehensive income

Total comprehensive income for the period


756,988-

756,988

664,566-

664,566

30 June2014

30 June2015

Three months ended

1,438,518-

1,438,518

1,223,629-

1,223,629

30 June2014

30 June2015

Six months ended


C O N D E N S E D I N T E R I M S T AT E M E N T O F C O M P R E H E N S I V E I N C O M E C O N D E N S E D I N T E R I M S T AT E M E N T O F C O M P R E H E N S I V E I N C O M E For the six months period ended 30 June 2015 (Un-audited)For the six months period ended 30 June 2015 (Un-audited)

30 June 2015

) )) ) )

)

) )

)

)))

(931,384(611,224(24,74744,611

(591,360(1,522,744

(771,3712,218(6,4142,922

(772,645

(1,014,223515,398(9,306

(508,131(2,803,519

3,115,8317,639

319,951

Cash flows from operating activitiesCash (used in) / generated from operationsTaxes paidEmployees retirement benefits paidInterest received

NET CASH USED IN OPERATING ACTIVITIES

CASH FLOWS FROM INVESTING ACTIVITIESCapital Expenditure incurred Proceeds from sale of property, plant and equipmentLong term loans disbursedRepayment from long term loans

NET CASH USED IN INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIESDividend paidShort term running finances- Secured Finance cost paid

NET CASH (USED IN) / GENERATED FORM FINANCING ACTIVITIESNET INCREASE/(DECREASE)IN CASH AND CASH EQUIVALENTS

Cash and cash equivalents at the beginning of the periodEffect of exchange rate fluctuations on cash and cash equivalents Cash and cash equivalents at the end of the period

30 June 2014(Rupees in thousands)

)) ) )

)

) )

)

)

137,965(578,347(17,891

116(596,122(458,157

(89,06127,592

(4001,470

(60,399

(967,3231,631,389

(51,000613,06694,510

57,3223,002

154,834


C O N D E N S E D I N T E R I M C A S H F L O W S T AT E M E N T C O N D E N S E D I N T E R I M C A S H F L O W S T AT E M E N T For the six months period ended 30 June 2015 (Un-audited)For the six months period ended 30 June 2015 (Un-audited)

Six months ended

8

Note

)))

)))

)))

)))

Share Capital TotalShare Premium Other

Capital Reserves

GeneralUnappropriated

Profit

Revenue Reserves

8,292,506

1,223,629-

1,223,629

(738,914(230,910(969,8248,546,311

9,550,990

1,438,518-

1,438,518

(785,096(230,911

(1,016,0079,973,501

8,422,964

1,223,629-

1,223,629

(738,914(230,910(969,8248,676,769

9,681,448

1,438,518-

1,438,518

(785,096(230,911

(1,016,00710,103,959

Balance as at 01 January 2014

Transactions with owners of the Company recognized directly in equity

Balance as at 30 June 2014


Transactions with owners of the Company recognized directly in equity


Total comprehensive incomeProfit for the period Other comprehensive income

Total comprehensive incomeProfit for the period Other comprehensive income


Transactions with owners of the Companyrecognized directly in equity



Transactions with owners of the Companyrecognized directly in equity


941

- --

--

- 941

941

---

---

941

207

---

---

207

207

---

---

207



C O N D E N S E D I N T E R I M S T AT E M E N T O F C H A N G E S I N E Q U I T YC O N D E N S E D I N T E R I M S T AT E M E N T O F C H A N G E S I N E Q U I T YFor the six months period ended 30 June 2015 (Un-audited)For the six months period ended 30 June 2015 (Un-audited)

92,364

---

----

92,364

92,364

---

---

92,364

36,946

- --

---

36,946

36,946

---

---

36,946

Final dividend 2014 (Rs. 85.00 per share ) 1st interim dividend 2015 (Rs. 25.00 per share)

Final dividend 2013 (Rs. 80.00 per share ) 1st interim dividend 2014 (Rs. 25.00 per share)

REPORTING ENTITY

Measurement of fair valuesThe Company has an established control framework with respect to the measurement of fair values. The management regularly reviews significant observable and unobservable inputs and valuation adjustments. Fair values are categorized into a fair value hierarchy based on the inputs used in the valuation techniques. The Company’s employee retirement benefits are carried at present value whose valuation techniques and inputs used to develop those measurements are explained in detail in note 7 to the financial statements of the Company for the year ended 31 December 2014.

Rafhan Maize Products Company Limited ("the Company") was incorporated in Pakistan and was subsequently listed on the Karachi and Lahore Stock Exchanges. Ingredion Inc. (formerly Corn Products International Inc.) Chicago, U.S.A., holds majority shares of the Company. The registered office of the Company is situated at Finlay House, I.I. Chundrigar Road, Karachi. The Company uses maize as the basic raw material to manufacture and sell a number of industrial products, principal ones being industrial starches, liquid glucose, dextrose, dextrin and gluten meals.

BASIS OF PREPARATIONStatement of complianceThis condensed interim financial information has been presented in condensed form in accordance with the requirements of the International Accounting Standard (IAS) 34 - Interim Financial Reporting and provisions of and the directives issued under the Companies Ordinance, 1984. In case where requirements of Companies Ordinance 1984 differ, the provisions of or directives issued under the Companies Ordinance, 1984 or directives issued by Securities and Exchange Commission of Pakistan (SECP) have been followed.

This condensed interim financial information is being submitted to the shareholders as required by section 245 of the Companies Ordinance, 1984 and the Listing Regulations of Karachi and Lahore Stock Exchanges. This condensed interim financial information does not include all the information required for full annual financial statements and should be read in conjunction with audited financial statements of the Company, for the year ended 31 December 2014.

The comparative balance sheet presented in this condensed interim financial information has been extracted from the audited financial statements of the Company for the year ended 31 December 2014, whereas comparative condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim cash flow statement and condensed interim statement of changes in equity have been extracted from the un-audited condensed interim financial information for the six months period ended 30 June 2014.

Judgements and estimatesIn preparing this condensed interim financial information, management make judgement, estimates and assumptions that a f f e c t the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements as at and for the year ended 31 December 2014.

Functional and presentation currencyThis condensed interim financial information is presented in Pakistan Rupees which is also the Company's functional currency.

SIGNIFICANT ACCOUNTING POLICIESThe accounting policies applied in this condensed interim financial information are the same as those applied in the Co mp an y' sfinancial statements as at and for the year ended 31 December 2014.

PROPERTY, PLANT AND EQUIPMENT

Operating property, plant and equipment Capital work-in-progress

1.

2.(a)

(b)

3.

4.

4,552,1041,165,3075,717,411

4,733,190432,198

5,165,388


30 June 2015(Un-audited)

31 December 2014(Audited)

Note4.14.2

N O T E S T O T H E C O N D E N S E D I N T E R I M F I N A N C I A L I N F O R M AT I O N N O T E S T O T H E C O N D E N S E D I N T E R I M F I N A N C I A L I N F O R M AT I O N For the six months period ended 30 June 2015 (Un-audited)For the six months period ended 30 June 2015 (Un-audited)

4.1 This includes the cost of property, plant and equipment that have been added and disposed-off during the period, detail of which is as follows:

Land Building Plant and machineryFurniture, fixture and office equipmentAutomobiles

4.2 Capital work-in-progress

The detail of capital work-in-progress is as follows:Land Civil works and buildingsPlant and machineryAdvance for land

There is no material change in contingencies since the last audited published financial statements.b) Commitments in respect of capital expenditure contracted but not provided amounts to Rs. 512.931million (31 December

2014: Rs. 996.646 million).c) Commitments in respect of purchase of corn amounts to Rs. 2,471.827 million (31 December 2014: Rs. 9,043.485

million).d) Commitments in respect of counter guarantees given to banks in consideration of their guarantees in the normal course of

business amounts to Rs. 142.3 million (31 December 2014: Rs. 142.3 million).

The movement of capital work-in-progress is as follows:

Opening balanceAdd: Addition during the period

Less: transfers during the periodClosing balance

5. CONTINGENCIES AND COMMITMENTS

a)

--

11,9441,227

11,00524,176

Six months ended(Un-audited)


--

490-

5,6086,098

15,522135

28,93811,3935,506

61,494

----

1,6641,664

-158,298

1,000,1956,814

1,165,307

5,6798,447

411,2586,814

432,198


432,198771,371

1,203,569

38,2621,165,307

30 June2014

30 June2015


233,46989,061

322,530

61,494261,036


N O T E S T O T H E C O N D E N S E D I N T E R I M F I N A N C I A L I N F O R M AT I O N N O T E S T O T H E C O N D E N S E D I N T E R I M F I N A N C I A L I N F O R M AT I O N For the six months period ended 30 June 2015 (Un-audited)For the six months period ended 30 June 2015 (Un-audited)


30 June 2015

(Un-audited)

31 December2014

(Audited)

DeletionsAdditions

30 June 2015

DeletionsAdditions

30 June 2014

6. SALES

7. COST OF SALES

8.

DomesticExports

Less:Sales taxTrade discount and commission

Opening stock of finished goodsCost of goods manufactured

Less: closing stock of finished goods

6,851,211289,878

7,141,089

524,8512,483

527,3346,613,755

1,743,4235,612,5757,355,9981,933,325 5,422,673


30 June2015

Six months ended (Un-audited) Three months ended (Un-audited)

6,862,867325,787

7,188,654

516,9742,815

519,7896,668,865

1,383,3385,715,7317,099,0691,812,2095,286,860

13,248,003

546,63713,794,640

1,018,2575,240

1,023,49712,771,143

1,944,27010,552,67412,496,944 1,933,325

10,563,619

13,072,673

625,49013,698,163

1,004,6635,332

1,009,99512,688,168

1,873,50110,060,00011,933,5011,812,209

10,121,292

30 June2014

30 June2015

30 June2014

For the six months period ended 30 June 2015 (Un-audited)For the six months period ended 30 June 2015 (Un-audited)N O T E S T O T H E C O N D E N S E D I N T E R I M F I N A N C I A L I N F O R M AT I O N N O T E S T O T H E C O N D E N S E D I N T E R I M F I N A N C I A L I N F O R M AT I O N

)

)

))

)

) ) ) ))))

))

1,750,168

224,5973,356

21,469(4354,034

(25,927(116

94,363(3,002

318,339

2,068,507

(142,104(587,133(100,692(54,890(45,587

(152,379(1,082,785

(847,757(1,930,542

137,965

CASH FLOWS FROM OPERATING ACTIVITIESProfit before taxationAdjustment for:

Depreciation of property, plant and equipmentAmortization of intangible assetsProvision for employees retirement benefitsReversal of provision for doubtful debtsProvision for slow moving and obsolete itemsGain on disposal of property, plant and equipmentInterest incomeFinance costLoss on foreign exchange transactions

Cash generated from operation before working capital changesEffect on cash flow due to working capital changesdecrease /(Increase) in current assets:

Stores and sparesStock in tradeTrade debtsLoans and advances Trade deposits and short term prepayments Other receivables

Decrease in current liabilities: Trade and other payables

Net (increase) / decrease in working capitalCash (used in) generated from operations

Cash generated from operation before working capital changesEffect on cash flow due to working capital changes

Cash (used in) generated from operationsNet (increase) / decrease in working capital

30 June 2015 30 June 2014

)

))

)

) ))) ) ) ) )))

2,118,566

220,7221,678

29,696(689

-(1,913

(33,23713,514(7,639

222,132

2,340,698

(49,818(2,518,028

(52,140(48,533(92,571

(116,948(2,878,038

(394,044(3,272,082(931,384

Six months ended (Un-audited)


For the six months period ended 30 June 2015 (Un-audited)For the six months period ended 30 June 2015 (Un-audited)N O T E S T O T H E C O N D E N S E D I N T E R I M F I N A N C I A L I N F O R M AT I O N N O T E S T O T H E C O N D E N S E D I N T E R I M F I N A N C I A L I N F O R M AT I O N

9. TRANSACTIONS WITH RELATED PARTIES AND ASSOCIATESThe related parties comprise parent company, related group companies, local associated company, directors of the company, key management personnel and staff retirement funds. Details of transaction with related parties, other than those disclosed else where in theses financial statements are as follows:

- The transactions were carried out at an arm's length basis, in accordance with the company's accounting policy.- No buying and selling commission has been paid to any associated undertaking.

10. OPERATING SEGMENTS(a) This condensed interim financial information has been prepared on the basis of single reportable segment.(b) All non current assets of the Company as at 30 June 2015 are located in Pakistan.

11. FINANCIAL RISK MANAGEMENTThe Company's financial risk management objective and policies are consistent with that disclosed in the financialstatements for the year ended 31 December 2014.

12. DATE OF AUTHORIZATIONThis un-audited condensed interim financial information was authorized for issue in the Board of Directorsmeeting held on 11 August 2015.

13. GENERALFigures in this condensed interim financial information have been rounded off to the nearest thousand of rupees.

Services received

SalesExport salesExport salesExport salesExport salesExport salesExport salesExport salesImportsImportsImportsTechnical support fee

ContributionRemuneration

Nature anddescriptionof related

party transaction

Parent Company

Ingredion Inc.(formerly Corn Products International Inc.) Chicago U.S.A.

Associates

Name of Parties

35,359

694,330 252,081

- 1,255 1,255

- 25,889 17,465 2,343 22,216

- 11,365

47,476 159,462

68,898

718,591 187,157

428 -

- 12,099 16,575 10,849

194 10,943

52 10,147

35,698 124,800

68,898

411,794 96,327

428 -

- 5,123

15,158 - - 10,943

52 5,233

18,067 70,878

19,561

323,468 125,003

- -

1,255 -

13,020 7,531 2,020 12,436

- 5,668

23,819 94,196

Six months ended(Un-Audited)

Three months ended(Un-Audited)

30 June2015

30 June2014

30 June2015

30 June2014


Unilever Pakistan Foods LimitedIngredion Holding LLC KenyaNational Starch & Chemical Thailand LtdIngredion Malaysia SDN BHD Corn products Malaysia National Starches Specialities, ChinaIngredion Singapore Pte. Ltd.Ingredion Philippines Inc. National Starch & Chemicales Thailand LtdIngredion Singapore Pte. Ltd.Ingredion Germany GMBHCorn Products Development Inc.

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pdf Halfyearly Report 2015 design all pages - Rafhan Maize · which falls in the sphere of Section 50, 158 and 233 of the Companies Ordinance, 1984, w e have attached the request