Nine Months Report March 2024

CONTENT
03 Vision and Mission Statement

04 Company Information

05 Directors’ Review Report

08 Condensed Interim Statement of Financial Position

09 Condensed Interim Statement of Profit or Loss and Other Comprehensive Income

10 Condensed Interim Statement of Changes in Equity

11 Condensed Interim Statement of Cash Flows

12 Notes To and Forming Part of The Condensed Interim Financial Statements

COMPANY OVERVIEW

COMPANY OVERVIEW
 COMPANY OVERVIEW

Vision
To be a global leader in
the flat steel industry with
the largest share of the local
market while fostering the
culture of responsible production
and consumption to be eventually
acknowledged by its customers for
quality and service excellence.

Mission
To supply the highest quality products
to our clients utilizing sustainable and
environmentally responsible
procedures. We believe in the power
of human capital in accomplishing
our goal of responsible production
with sustained return to our
shareholders and strive to be
the supplier and employer of
choice in the flat steel
industry.

NINE MONTHS REPORT MARCH 2024 / 03

COMPANY INFORMATION
BOARD OF DIRECTORS SHARE REGISTRAR DEPARTMENT
Mr. Arif Habib, Chairman CDC Share Registrar Services Limited
Mr. Samad A. Habib CDC House, 99-B, Block B, SMCHS,
Mr. Kashif A. Habib Main Shahrah-e-Faisal, Karachi - 74400
Mr. Nasim Beg Phone: 0800 – 23275
Dr. Munir Ahmed, Chief Executive Fax: (+92 21) 34326053
Ms. Tayyaba Rasheed Email: [email protected]
Mr. Arslan Iqbal Website: www.cdcsrsl.com
Mr. Rashid Ali Khan
Mr. Salman Ahmed Khan LEGAL ADVISOR
Ahmed & Qazi
AUDIT COMMITTEE Khalid Anwer & Co.
Ms. Tayyaba Rasheed - Chairperson Akhund Forbes
Mr. Nasim Beg Mohsin TayebAly & Co.
Mr. Samad A. Habib Lex Firma
Mr. Kashif A. Habib Khalid Jawed & Co.

HUMAN RESOURCE & BANKERS / LENDERS

REMUNERATION COMMITTEE Allied Bank Limited
Mr. Rashid Ali Khan – Chairman Askari Bank Limited
Mr. Arif Habib Bank Al Habib Limited
Mr. Kashif A. Habib Bank Alfalah Limited
Bank Islami Pakistan Limited
CHIEF FINANCIAL OFFICER Dubai Islamic Bank
Ali Hassan Faysal Bank Limited
Habib Bank Limited
Company Secretary Habib Metropolitan Bank Limited
Mr. Manzoor Raza JS Bank Limited
MCB Bank Limited
Head of Internal Audit MCB Islamic Bank Limited
Mr. Muhammad Shahid Meezan Bank Limited
National Bank of Pakistan (Aitemad)
Registered Office National Bank of Pakistan
1/F Arif Habib Centre, 23 – M. T. Khan Road, Pak China Investment Company Limited
Karachi – Pakistan – 74000 Saudi Pak Industrial and Agricultural Investment
Tel: (+92 21) 32468317 Company Limited
Silk Bank Limited
Plant Address Sindh Bank Limited
DSU - 45, Pakistan Steel Standard Chartered Bank (Pakistan) Limited
Down Stream Industrial Estate, Bin Qasim Bank Makramah Limited (formerly known as
Karachi – Pakistan Summit Bank Limited)
Tel: (+92 21) 34740160 The Bank of Khyber
The Bank of Punjab
Auditors United Bank Limited
A. F. Ferguson & Co.,
Chartered Accountants, Website
State Life Building No. 1-C, www.aishasteel.com
I.I. Chundrigar Road, Karachi.

04 / AISHA STEEL MILLS LIMITED

Directors’ Review Report
The Directors of Aisha Steel Mills Limited (ASML) present herewith Directors’ Review Report
together with condensed interim financial statements of the Company for the third quarter
ended March 31, 2024.

Steel Market Review

The HRC prices during the December 2023 and March 2024 quarter, decreased from US$ 600,
FOB China to around US$ 550. The fall attributed to lack of demand in both China and Western
countries. The prices since have stabilized. Going forward, a gradual recovery is anticipated on
positive demand outlook projected both in China and India, the two major consumers of HRC.

Pakistan market is slow and demand sluggish. The high interest rates continue to suppress the
manufacturing sector. The ongoing slowdown in auto and construction sectors is affecting
offtake of CRC and GI, respectively. The local industry, already reeling under low demand, is
further stressed when made to compete with tax exempted and miss-declared imports.

In a futile attempt to promote industrial activities in FATA PATA region, the Government of
Pakistan allows duty and sales tax exemption on raw material imports for factories located in the
FATA/PATA region. This, not well researched or thought through incentive, has been grossly
misused over the past several years now. The flat products imported under the scheme include
HRC (hot rolled coil), CRC (cold rolled coil) and GI (Galvanized iron coils). At current average steel
price of around PKR 270,000 per ton, the price differential due to sale tax and duty exemption
alone is in excess of rupees 50,000 per ton. With such a big price gap of almost 20%, the local
industry simply cannot compete with these imports. Also, commercial importers are illegally
avoiding anti-dumping duties on the import of GI by miss declaring it. All efforts by the domestic
producers with the Government, to address these abuses, have thus far not had the
Government take corrective actions, despite loss of revenue to itself. Thus, adding to the Fiscal
as well as the Current Account deficits .

Operational Review

The total quantity sold during the July, 2023 to March 2024 period was 119,676 tons compared to
103,387 tons sold during the corresponding period last year showing an increase of about 16%.
The export quantity was 18,185 tons compared to 1,152 tons exported during the corresponding
period last year.

The total quantity produced during the period was 126,444 tons compared to 92,431 tons in the
corresponding period last year, an increase of about 37%. However, this amounts to only 24% of
the installed capacity. The slow offtake emanating from high rates of mark-up, as well as
significant inflationary impact on the prices of automobiles, white goods and building materials,
are the main reasons for weak financial results of the Company.

NINE MONTHS REPORT MARCH 2024 / 05

 A brief summary of the financial results as on March 31, 2024 is as follows:

July 2023 to March 2024 period

March March
2024 2023
Rs. In Millions

Revenue 31,436 25,405

Gross Profit 3,450 1,269
Finance Costs (2,908) (2,581)
Exchange Gain / (Loss) - Net 224 (1,704)
Profit / (Loss) before tax 87 (3,321)
Profit / (Loss) after tax 223 (2,146)
Earnings / (Loss) per share (PKR) 0.15 (2.38)

Future Outlook:

The positive outlook coming out of China is helping stabilize steel related raw materials prices.
Both iron ore and coke prices are exhibiting rising trend. The local demand is still depressed but
stable. However, gradual reduction in inflation and stability witnessed in exchange rate has
improved overall market sentiment. The manufacturing sector, still under pressure, may also
pick up in coming months.

Acknowledgement

The directors are grateful to the Company’s stakeholders for their continuing confidence and
patronage. We would also like to record our appreciation to the Banks for the continuous
support in the ongoing operations. We also acknowledge the support of Regulators for their
continued support.

For and on behalf of the Board

Dr. Munir Ahmed Mr. Kashif Habib

Chief Executive Director

Karachi : April 27, 2024

06 / AISHA STEEL MILLS LIMITED

FINANCIAL STATEMENTS
NINE MONTHS REPORT MARCH 2024 / 07
 Condensed Interim Statement of
Financial Position
As At March 31, 2024 - (Unaudited) (Unaudited) (Audited)
March 31, June 30,
2024 2023
Note Rupees ‘000
ASSETS

Non-current assets

Property, plant and equipment 5 19,558,767 19,645,720

Intangible assets 44,785 49,276
Long-term advances 315 315
Long-term deposits 70,176 68,427
Deferred tax asset 2,768,756 2,501,091
22,442,799 22,264,829
Current assets

Inventories 6 10,874,173 9,167,210

Trade and other receivables 7 1,596,838 1,042,983
Loans, advances and prepayments 8 580,460 888,146
Tax refunds due from government - Sales tax 268,551 259,766
Taxation - payments less provision 3,760,361 3,276,077
Cash and bank balances 9 208,731 1,147,153
17,289,114 15,781,335
Total assets 39,731,913 38,046,164

EQUITY AND LIABILITIES

Share capital and reserves

Share capital
Ordinary shares 9,300,159 9,300,159
Cumulative preference shares 444,950 444,950
Difference on conversion of cumulative preference shares
and dividends into ordinary shares (1,762,459) (1,762,459)
7,982,650 7,982,650

Surplus on revaluation of property, plant and equipment 2,077,653 2,116,203

Capital reduction reserve 667,686 667,686
Unappropriated profit 1,186,980 925,176
Contribution from sponsor 10 4,000,000 4,000,000
15,914,969 15,691,715

Liabilities

Non-current liabilities
Long-term finance - secured 11 2,368,416 3,443,995
Lease liabilities 165,244 140,724
Employee benefit obligations 163,851 153,845
2,697,511 3,738,564
Current liabilities

Trade and other payables 4,528,179 3,604,819

Accrued mark-up 839,759 906,630
Short-term borrowings - secured 12 14,362,826 12,650,722
Unclaimed dividend 3,224 68,269
Current maturity of long-term finance 1,362,970 1,362,970
Current maturity of lease liabilities 22,475 22,475
21,119,433 18,615,885
Total liabilities 23,816,944 22,354,449
Contingencies and commitments 13

Total equity and liabilities 39,731,913 38,046,164

The annexed notes from 1 to 22 form an integral part of these condensed interim financial statements.

Chief Financial Officer Chief Executive Director

08 / AISHA STEEL MILLS LIMITED

Condensed Interim Statement of Profit or Loss
and Other Comprehensive Income
For The Period Ended March 31, 2024 - (Unaudited)
Quarter Ended Nine months ended
March 31, March 31, March 31, March 31,
2024 2023 2024 2023
Note Rupees ‘000

Revenue from contracts with customers 14 8,790,107 9,719,660 31,435,915 25,405,376

Cost of sales (7,509,074) (8,178,681) (27,985,519) (24,136,060)

Gross profit 1,281,033 1,540,979 3,450,396 1,269,316

Selling and distribution costs 15 (161,518) (30,640) (372,286) (77,180)

Administrative expenses (106,045) (108,171) (336,884) (308,544)

Operating profit 1,013,470 1,402,168 2,741,226 883,592

Other expenses 16 (977) (621,417) (18,046) (1,703,598)

Other income 17 3,905 18,843 271,609 79,518

Finance costs 18 (990,976) (1,005,693) (2,907,924) (2,580,661)

Profit / (loss) before tax 25,422 (206,099) 86,865 (3,321,149)

Income tax credit 19 65,664 157,916 136,389 1,175,295

Profit / (loss) for the period 91,086 (48,183) 223,254 (2,145,854)

Other comprehensive income - - - -

Total comprehensive income / (loss) 91,086 (48,183) 223,254 (2,145,854)

Rupees

Earnings / (loss) per share - basic and diluted 20 0.07 (0.08) 0.15 (2.38)

The annexed notes from 1 to 22 form an integral part of these condensed interim financial statements.

Chief Financial Officer Chief Executive Director

NINE MONTHS REPORT MARCH 2024 / 09

 Condensed Interim Statement of
Changes in Equity
For The Period Ended March 31, 2024 - (Unaudited)
Share capital Reserves Contribution Total
Capital Revenue from sponsor
(Note 10)
Ordinary Cumulative Difference on Surplus on Capital Unappropriated
shares preference conversion of revaluation reduction (loss) / profit
shares cumulative of property, reserve
preference plant and
shares into equipment
ordinary
shares
Rupees '000

Balance as at July 1, 2022 9,248,008 444,950 (1,762,456) 1,305,870 667,686 4,131,495 - 14,035,553
...
Incremental depreciation net of deferred tax transferred - - - (10,284) - 10,284 - -

Total comprehensive income for the period ended

March 31, 2023

- Loss for the period - - - - - (2,145,854) - (2,145,854)

- Other comprehensive income for the period - - - - - - - -
- - - - - (2,145,854) - (2,145,854)

Balance as at March 31, 2023 9,248,008 444,950 (1,762,456) 1,295,586 667,686 1,995,925 - 11,889,698

Balance as at July 1, 2023 9,300,159 444,950 (1,762,459) 2,116,203 667,686 925,176 4,000,000 15,691,715

Incremental depreciation net of deferred tax transferred - - - (38,550) - 38,550 - -

Total comprehensive income for the period ended

March 31, 2024

- Profit for the period - - - - - 223,254 - 223,254

- Other comprehensive income for the period - - - - - - - -
- - - - - 223,254 - 223,254

Balance as at March 31, 2024 9,300,159 444,950 (1,762,459) 2,077,653 667,686 1,186,980 4,000,000 15,914,969

The annexed notes from 1 to 22 form an integral part of these condensed interim financial statements.

Chief Financial Officer Chief Executive Director

10 / AISHA STEEL MILLS LIMITED

Condensed Interim Statement Of
Cash Flows
For The Period Ended March 31, 2024 - (Unaudited)
March 31, March 31,
2024 2023
Rupees ‘000

CASH FLOWS FROM OPERATING ACTIVITIES

Profit / (loss) before taxation 86,865 (3,321,148)

Add / (less): Adjustment for non-cash charges and other items
Depreciation and amortisation 695,025 714,161
Mark-up charges 2,937,269 2,535,864
Unwinding of long-term finance (28,640) (63,095)
Finance lease charges 15,524 5,900
Provision for staff retirement benefit 26,253 39,850
Loss / (gain) on disposal of fixed assets 7,834 (1,295)
Return on PLS savings accounts (15,680) (28,486)
3,637,585 3,202,899
Profit / (loss) before working capital changes 3,724,450 (118,249)

Effect on cash flow due to working capital changes

(Increase) / decrease in current assets
Inventories (1,707,035) 7,994,471
Trade and other receivables (553,855) (386,268)
Loans, advances and prepayments 307,686 823,791
Tax refunds due from Government - Sales tax (8,785) (694,111)
(1,961,989) 7,737,883
Increase / (decrease) in current liabilities
Trade and other payables 858,315 (4,766,162)
Net cash generated from operations 2,620,776 2,853,472

Income tax paid (615,561) (657,932)

Mark-up on loans paid (3,004,140) (2,373,944)
Staff retirement benefit paid (16,247) (9,661)
Increase / (decrease) in long-term deposits (1,749) 47,828
Net cash used from operating activities (1,016,921) (140,237)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (624,524) (381,088)
Return on PLS accounts 15,680 28,486
Sale proceeds from disposal of property, plant and equipment 13,183 9,931
Net cash used in investing activities (595,661) (342,671)

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of long-term finance (1,046,939) (1,184,011)
Short term borrowings obtained - net - 1,195,000
Contributions received from associated undertaking - 1,740,000
Dividend paid - (162)
Lease rental paid 8,996 (23,623)
Net cash generated from / (used) in financing activities (1,037,943) 1,727,204

Net (decrease) / increase in cash and cash equivalents (2,650,526) 1,244,296

Cash and cash equivalents at beginning of the period (11,503,570) (15,661,369)

Cash and cash equivalents at end of the period (14,154,095) (14,417,073)

The annexed notes from 1 to 22 form an integral part of these condensed interim financial statements.

Chief Financial Officer Chief Executive Director

NINE MONTHS REPORT MARCH 2024 / 11

 Notes to and Forming Part of the Condensed
Interim Financial Statements
For The Period Ended March 31, 2024 - (Unaudited)

1. THE COMPANY AND ITS OPERATIONS

The Company was incorporated in Pakistan on May 30, 2005 as a public limited company
under the repealed Companies Ordinance, 1984 (now Companies Act, 2017). The
Company's shares are listed on Pakistan Stock Exchange (PSX) since August 2012. The
registered office of the Company is situated at Arif Habib Centre, 23 M.T. Khan Road,
Karachi.

The Company has set up a cold rolling mill complex and a galvanization plant in the
downstream Industrial Estate, Pakistan Steel, Bin Qasim, Karachi, to carry out its principal
business of manufacturing and selling cold rolled coils and hot dipped galvanized coils.

2. BASIS OF PREPARATION

These condensed interim financial statements have been prepared in accordance with
the accounting and reporting standards as applicable in Pakistan for interim financial
reporting. The accounting and reporting standards as applicable in Pakistan for interim
financial reporting comprise of:

- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the
International Accounting Standards Board (IASB) as notified under the Companies Act,
2017;

- Provisions of and directives issued under the Companies Act, 2017.

Where the provisions of and directives issued under the Companies Act, 2017 differ with the
requirements of IAS 34, the provisions of and directives issued under the Companies Act,
2017 have been followed.

These condensed interim financial statements do not include all the information required
for full financial statements and should be read in conjunction with the annual financial
statements for the year ended June 30, 2023.

2.1 Changes in accounting standards, interpretations and pronouncements

a) Standards and amendments to approved accounting standards that are effective

There are certain amendments and interpretations to the accounting and reporting
standards which are mandatory for the Company's annual accounting period
beginning July 01, 2023. However, these do not have any significant impact on the
Company’s financial reporting.

b) Standards and amendments to approved accounting standards that are not yet
effective

There are standards and certain other amendments to the accounting and reporting
standards that will be mandatory for the Company's annual accounting periods
beginning on or after July 01, 2024. however, these are considered either not to be
relevant or to have any significant impact on the Company's financial statements and
operations and, therefore, have not been disclosed in these financial statements.

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies adopted in the preparation of these condensed interim financial
statements are the same as those applied in the preparation of the annual financial
statements of the Company for the year ended June 30, 2023.

12 / AISHA STEEL MILLS LIMITED

Notes to and Forming Part of the Condensed
Interim Financial Statements
For The Period Ended March 31, 2024 - (Unaudited)

4. ACCOUNTING ESTIMATES, JUDGEMENTS AND FINANCIAL RISK MANAGEMENT

4.1 The preparation of condensed interim financial statements requires management to

make judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts. Actual results may differ from these judgements,
estimates and assumptions.

However, management believes that the change in outcome of judgements, estimates

and assumptions would not have a material impact on the amounts disclosed in these
condensed interim financial statements.

4.2 Judgements and estimates made by the management in the preparation of these
condensed interim financial statements are the same as those that were applied to the
financial statements as at and for the year ended June 30, 2023.

4.3 The Company's financial risk management objectives and policies are consistent with
those disclosed in the financial statements as at and for the year ended June 30, 2023.

(Unaudited) (Audited)
March 31, June 30,
2024 2023
Rupees ‘000

5. PROPERTY, PLANT AND EQUIPMENT

Operating assets - note 5.1 17,308,031 17,715,001

Capital work in progress (at cost) - 49,288
Major spare parts and stand-by equipment 2,250,735 1,881,431
19,558,766 19,645,720

5.1 Additions and disposals to operating assets during the period are as follows:

Additions Disposals
(at cost) (at net book value)
March 31, March 31, March 31, March 31,
2024 2023 2024 2023
Rupees ‘000
Owned assets:

Building and civil works on leasehold land 5,379 - - -

Plant and machinery 174,600 290,245 - -
Electrical equipment 18,413 4,526 - -
Office equipment 10,176 6,473 329 431
Furniture and fixtures - - -
Motor vehicles 15,956 199 - -

Right of use assets:

Motor vehicles 75,616 41,012 20,799 8,205
300,140 342,455 21,128 8,636

NINE MONTHS REPORT MARCH 2024 / 13

 Notes to and Forming Part of the Condensed
Interim Financial Statements
For The Period Ended March 31, 2024 - (Unaudited)
(Unaudited) (Audited)
March 31, June 30,
2024 2023
Rupees ‘000
6. INVENTORIES

Raw material [ including in transit Rs. 4,417 million

(June 30, 2023: Rs. 3,770.57 million)] 5,631,484 5,462,750

Work-in-process 239,421 186,311

Finished goods [including coil end sheets

Rs. 43.56 million (June 30, 2023: Rs. 26.27 million)] 3,460,618 1,985,420
9,331,523 7,634,481

Stores 1,004,756 970,041

Spares 537,894 562,688
1,542,650 1,532,729
10,874,173 9,167,210

7. TRADE AND OTHER RECEIVABLES

Trade receivables - considered good:

Not yet due 789,349 231,433

Other receivables:
Receivable from Etimaad Engineering
(Private) Limited 138,485 138,485
Receivable from insurance company 668,212 668,212
Others 792 4,853
807,489 811,550

1,596,838 1,042,983

8. LOANS, ADVANCES AND PREPAYMENTS

8.1 These include deposit held with a bank amounting to Rs. 53.54 million (June 30, 2023: Rs.
59.67 million) in respect of bank guarantees issued to Regulatory Authorities against
disputed duties and taxes, and to a customer in respect of performance of a contract.

(Unaudited) (Audited)
March 31, June 30,
2024 2023
Rupees ‘000
9. CASH AND BANK BALANCES

With banks on
- Current accounts 74,344 673,254
- PLS savings accounts - note 9.1 134,033 473,630
Cash in hand 354 269
208,731 1,147,153

9.1 At March 31, 2024 the rates of mark up on PLS savings accounts range from 15.5% to 20.5%
(June 30, 2023: 15.5% to 20.5%) per annum.

14 / AISHA STEEL MILLS LIMITED

Notes to and Forming Part of the Condensed
Interim Financial Statements
For The Period Ended March 31, 2024 - (Unaudited)

10. CONTRIBUTION FROM SPONSOR

Last year effective from January 1, 2023 the Company entered into an agreement with Mr.
Arif Habib (Sponsor) for investment of Rs. 4,000 million on the following terms and
conditions:

- The repayment of the principal amount and mark-up shall be at the sole and absolute
discretion of the Company (taking into consideration the profitability and availability of
its cash flows). However, in the event of liquidation, the sponsor will have preferred
liquidation rights for recovery of the contribution and outstanding markup prior to
Ordinary Shareholders of ASL.

- The financing shall carry mark-up at the rate of 3 month KIBOR + 1.8%. However, the
payment of mark-up shall also be at the sole and absolute discretion of the Company.
Further, dividends to the ordinary shareholders will only be declared after the payment
of markup to sponsor.

Pursuant to the requirements of IAS 32 - 'financial instruments presentation' and the terms
of the arrangement, the loan is classified as equity in these financial statements.

(Unaudited) (Audited)
March 31, June 30,
2024 2023
Rupees ‘000
11. LONG-TERM FINANCE - secured

Loan under restructuring agreement - note 11.1 2,269,123 3,029,457

Loan for expansion project - note 11.2 1,462,263 1,777,508
3,731,386 4,806,965
Less: Current maturity of long-term finance (1,362,970) (1,362,970)
2,368,416 3,443,995

11.1 The facility carries mark-up ranging from 6 months KIBOR plus 1% per annum to 6 months
KIBOR plus 3.25% per annum on the outstanding amount excluding frozen mark-up. It is
repayable in 10 unequal semi-annual installments from July 19, 2021 to January 19, 2025.

11.2 The facility carries mark up ranging between 6 months KIBOR plus 1.9% per annum to be
determined on semi-annual basis to mark up at 6 months KIBOR prevailing one day
before the first Musharaka contribution date, plus a margin of 1.9% per annum to be
determined on semi-annual basis. It is repayable in 10 consecutive semi-annual
installments in arrears from December 2021 to June 2026.
(Unaudited) (Audited)
March 31, June 30,
2024 2023
Rupees ‘000

12. SHORT-TERM BORROWINGS - secured

Short term finance facilities under:

- Running finance under mark-up arrangement 2,251,374 2,264,586
- Istisna-cum-Wakala arrangement 3,705,833 4,976,563
- Finance against Trust Receipts 8,405,619 4,676,533
- Foreign Currency Import Finance - 733,040
14,362,826 12,650,722

NINE MONTHS REPORT MARCH 2024 / 15

 Notes to and Forming Part of the Condensed
Interim Financial Statements
For The Period Ended March 31, 2024 - (Unaudited)

13. CONTINGENCIES AND COMMITMENTS

13.1 Contingencies

There has been no significant change during the period in the contingencies reported in
the annual financial statements for the year ended June 30, 2023 except as disclosed in
notes 13.1.1 below:

13.1.1 During the year ended June 30, 2022, the Company received DCIR orders in 2022 for tax
years 2016 - 2018, establishing income tax demands. Allegations encompassed bank
credit entries, withholding tax issues and disallowances. Appeals were filed before ATIR,
resulting in remand back order dated June 14, 2023.

During the current period, CIRA decided the appeals in the Company's favor through
orders dated November 25, 2023 for tax years 2016 - 2017 except for tax credit under
section 65B of the Income Tax Ordinance 2001 and order dated December 27, 2023 for tax
year 2018, except for brought forward minimum tax under section 113 and tax credit under
section 65B of the Ordinance. The Company has filed an appeal before CIRA regarding
the matter of tax credit, which is currently pending. The Company expects a favourable
outcome of the appeal hence no provision is made in these financial statements.

13.2 Commitments

Commitments for capital expenditure outstanding as at March 31, 2024 amounted to Rs.
164.811 million (2023: Rs. 131.18 million).
(Unaudited)
March 31, March 31,
2024 2023
Rupees ‘000

14. REVENUE FROM CONTRACTS WITH CUSTOMERS

Local sale of goods - note 14.1 33,220,944 29,965,517

Sales tax (4,989,585) (4,378,240)
Rebates and discounts (1,125,647) (573,349)
27,105,712 25,013,928

Exports 4,330,203 391,448

31,435,915 25,405,376

14.1 This includes scrap sale of coil-end sheets net of sales tax amounting to Rs. 1.37 million
(March 31, 2023: Rs. 1.09 billion).

15. SELLING AND DISTRIBUTION COST

This includes freight charges on export sales amounting to Rs. 307.239 million (March 31,
2023: Rs. 22.2 million).

16 / AISHA STEEL MILLS LIMITED

Notes to and Forming Part of the Condensed
Interim Financial Statements
For The Period Ended March 31, 2024 - (Unaudited)

16. OTHER EXPENSES

This includes exchange loss amounting to Nil (March 31, 2023: Rs. 1.703 billion)

17. OTHER INCOME

This includes exchange gain amounting to Rs. 224.168 million (2023: Nil)

(Unaudited)
March 31, March 31,
2024 2023
Rupees ‘000

18. FINANCE COSTS

Mark-up expense:
- long-term finance 568,657 530,297
- impact of unwinding on long-term finance (28,640) (63,095)
- short-term borrowings 2,314,931 1,970,833
Interest on Workers' Profits Participation Fund - 5,915
Finance lease charges 15,524 5,900
Bank and other charges 37,452 130,810
2,907,924 2,580,660

19. INCOME TAX CREDIT

Current 131,276 140,018

Deferred (267,665) (1,315,313)
(136,389) (1,175,295)

20. Diluted Earnings Per Share

Diluted earnings per share has not been presented for period ended March 31, 2024 as it
has anti-dilutive effect on the earnings per share.

NINE MONTHS REPORT MARCH 2024 / 17

 Notes to and Forming Part of the Condensed
Interim Financial Statements
For The Period Ended March 31, 2024 - (Unaudited)
21. TRANSACTIONS WITH RELATED PARTIES

Disclosure of transactions with related parties during the period are as follows:

(Unaudited)
March 31, March 31,
2024 2023
Relationship Name of company Nature of transaction Rupees ‘000

Associated
companies Arif Habib Corporation
Limited - Finance facility utilised 1,490,000 5,420,000
- Repayment of finance facility utilised 1,490,000 4,225,000
- Long-term loan repaid 28,433 28,433
- Mark-up on finance facilities 17,207 119,100
- Mark-up on finance facilities paid 73,868 65,603
- Guarantee commission 981 971
- Guarantee commission paid 981 979
- Preference dividend converted into
ordinary shares - 40,987

Arif Habib Limited - Finance facility utilised 1,150,000 -

- Repayment of finance facility 1,150,000 -
- Markup on finance facilities 15,032 -
- Markup on finance facilities paid 2,320 -
- Dividend paid - -
- Preference dividend converted into
ordinary shares - 132

Arif Habib Equity - Preference dividend converted into

(Private) Limited ordinary shares - 4,693

Power Cement Limited - Purchase of construction material - 463

Rotocast Engineering Co.

(Private) Limited - Rent and maintenance 13,310 9,443
- Rent and maintenance paid 13,310 9,443

Other related Mr. Arif Habib, Chairman - Finance facility utilised - 1,740,000
- Mark-up on finance facility - 86,971
- Mark-up on finance facilities paid - 6,311
- Dividend paid - -
- Preference dividend converted into
ordinary shares - 3,298

Key management
personnel Chief Executive Officer,
Chief Financial Officer
& Company Secretary - Salaries and other employee benefits 21,292 20,686
CFO & Company Secretary - Post retirement benefits 583 536
CFO & Company Secretary - Post retirement benefits paid 3,106 -
Non-Executive Director - Meeting and other expenses 570 837

22. DATE OF AUTHORISATION FOR ISSUE

These condensed interim financial statements were approved and authorised for issue
by the Board of Directors of the Company on April 27, 2024.

Chief Financial Officer Chief Executive Director

18 / AISHA STEEL MILLS LIMITED

Arif Habib Centre 23,
M.T. Khan Road, Karachi - 74000
Tel: (021) 32468317, 34740160
Fax No. (021)34740151
Email: [email protected]
website: www.aishasteel.com