1) Bunny's Limited held its Annual General Meeting on October 28, 2022 to review the previous year's performance and operations.
2) The meeting discussed and approved the Chairperson's Review Report, Directors' Report, audited financial statements for FY2022, and reappointment of auditors.
3) A special resolution was also passed to increase the company's authorized share capital from PKR 1 billion to PKR 1.5 billion, requiring amendments to the Memorandum and Articles of Association.
1) Bunny's Limited held its Annual General Meeting on October 28, 2022 to review the previous year's performance and operations.
2) The meeting discussed and approved the Chairperson's Review Report, Directors' Report, audited financial statements for FY2022, and reappointment of auditors.
3) A special resolution was also passed to increase the company's authorized share capital from PKR 1 billion to PKR 1.5 billion, requiring amendments to the Memorandum and Articles of Association.
1) Bunny's Limited held its Annual General Meeting on October 28, 2022 to review the previous year's performance and operations.
2) The meeting discussed and approved the Chairperson's Review Report, Directors' Report, audited financial statements for FY2022, and reappointment of auditors.
3) A special resolution was also passed to increase the company's authorized share capital from PKR 1 billion to PKR 1.5 billion, requiring amendments to the Memorandum and Articles of Association.
1) Bunny's Limited held its Annual General Meeting on October 28, 2022 to review the previous year's performance and operations.
2) The meeting discussed and approved the Chairperson's Review Report, Directors' Report, audited financial statements for FY2022, and reappointment of auditors.
3) A special resolution was also passed to increase the company's authorized share capital from PKR 1 billion to PKR 1.5 billion, requiring amendments to the Memorandum and Articles of Association.
Report 2022 CONTENTS PAGE NO. Vision and Mission statement 2 Company profile 2 Notice of Annual General Meeting 3–7 Chairperson’s Review Report 8 Directors’ Report 9 – 13 Financial Highlights 14 – 15 Code of Conduct 16 – 17 Statement of Compliance with Code of Corporate Governance 18 – 19 Review Report 20 Auditors’ Report 21 – 26 Financial Statements 27 – 56 Pattern of Shareholding 57-58 Proxy Form 59 VISION AND MISSION STATEMENT VISION Make quality food for better life.
MISSION Product innovation with optimal quality, taste and nutrition. To create value, inspire moments and deliver wellness.
COMPANY PROFILE Board of Directors Mrs. Saadia Omar Chairperson Mr. Omar Shafiq Chaudhry Chief Executive Miss Mahnoor Chaudhry Director Miss Mahnan Omar Director Miss Maya Omar Director Mr. Rafi Uz Zaman Awan Director Mr. Moazzam Iftikhar Ahmed Director Audit Committee Mr. Rafi Uz Zaman Awan Chairman Miss Mahnoor Chaudhry Member Mrs. Saadia Omer Member Chief Financial Officer Mr. Muhammad Shafique
Company Secretary Mr. Muhammad Zubair
Auditors Aslam Malik & Co. Chartered Accountants Bankers Samba Bank Limited Bank Al Habib Limited Meezan Bank Limited PAIR Investment Bank Limited First Women Bank Limited Pak Libya Investment Company (Pvt.) Limited Share Registrar F.D. Registrar Services (SMC-Pvt.) Limited 17th Floor, Saima Trade Tower-A, I.I. Chundrigar Road, Karachi-74000 Ph# 9921-35478192-93, Dir# 9221-32271905-6, Fax# 9221-32621233 Legal Advisor Moazzam Ali Shah Associates Head Office 105/A, Quaid-e-Azam Industrial Estate, Kot Lakhpat, Lahore Email [email protected] Website www.bunnys.com.pk NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the Annual General Meeting (“AGM”) of the shareholders of Bunny’s Limited (the “Company”) will be held on Friday, 28 October 2022 at 09:00 AM 105/A, Quaid-e-Azam, Industrial Estate, Kot Lakhpat, Lahore and via video-link to transact the following Business: Ordinary Business: 1. To receive, consider and adopt the Chairperson’s Review Report, the Report of Directors and Auditors together with Audited Annual Financial Statements for the year ended 30 June 2022; 2. To appoint Company’s auditors and to fix their remuneration. The members are hereby notified that the Audit Committee and the Board of directors have recommended the name of retiring auditors M/s Aslam Malik & Co., Chartered Accountants for appointment as auditors of the Company Special Business:
3. To consider and, if thought fit, to pass, with or without modification, a resolution as special resolution as proposed in the statement of material facts annexed hereto, to increase the authorized share capital of the company form PKR 1,000 Million to PKR 1,500 million and consequent amendments in Clause 5 of the Memorandum of Association of the Company and Article 4 of the Articles of Association of the Company.
Attached to this Notice is a statement of material facts along with draft resolutions proposed to be passed as special resolution in relation to the aforesaid special business, as required under Section 134(3) of the Companies Act, 2017. BY ORDER OF THE BOARD
Registered office 105/A, Quaid-e-Azam Industrial Estate, Kot Lakhpat, Lahore Muhammad Zubair 06 October, 2022 Company Secretary Notes: 1. In view of the SECP instructions, the annual general meeting will also be conducted virtually via video link for safety and well-being of the shareholders of the Company and general public. The AGM can be attended using smart phones/tablets/computer. To attend the meeting through video link, member and their proxies are requested to register themselves by providing the following information along with valid copy of Computerized National Identity Card (both sides)/ passport, attested copy of board resolution / power of attorney (in case of corporate shareholders) through email at [email protected] by 26th of October, 2022: Name of Member CNIC No. CDC Account Cell number Email address No. / Folio No.
2. The member who are registered after the necessary verification shall be provided a video link by the Company on the same email address that they email with the Company. The login facility will remain open from start of the meeting till its proceedings are concluded. 3. The Share Transfer Books of the Company will remain closed from October 21, 2022 to October 28, 2022 (both days inclusive). Transfers received at M/s F.D. Registrar Services (SMC-Pvt) Ltd., the Company’s Share Registrar and Transfer Agent’s Office at Office # 1705, 17th Floor, Saima Trade Tower-A, I.I. Chundrigar Road, Karachi at the close of business hours on October 20, 2022, will be treated in time for the purposes of entitlement to attend, speak and vote at the annual general meeting (AGM). 4. A member entitled to attend and vote at this meeting may appoint any other member as his/her proxy to attend and vote instead of him/her and a proxy so appointed shall have such rights, as respects attending, speaking and voting at the Annual General Meeting as are available to the Member. A Proxy must be a member of the Company. 5. The instrument appointing a proxy and the power of attorney or other authority under which it is signed or a notarial attested copy of the power of attorney must be deposited at the Registered Office of the Company at least 48 hours before the time of the meeting. Proxy Forms, in English and Urdu languages, have been dispatched to the members along with the notice of AGM 6. Members who have deposited their shares into Central Depository Company of Pakistan Limited (“CDC”) will further have to follow the under mentioned guidelines as laid down by the Securities and Exchange Commission of Pakistan.
A. For Attending the Meeting
a. In case of Individuals, the account holder and/or sub-account holder and their registration details are uploaded as per the CDC Regulations, shall send valid copy of CNIC or, original Passport as per above instructions. b. In case of corporate entity, the Board’s resolution/power of attorney with specimen signature of the nominee shall be provide as per above instructions. B. For Appointing Proxies a. In case of individuals, the account holder and/or sub-account holder and their registration details are uploaded as per the CDC Regulations, shall submit the proxy form as per above requirements. b. The proxy form shall be witnessed by two persons, whose names, addresses and CNIC numbers shall be mentioned on the form. c. Attested copies of the CNIC or the passport of beneficial owners and the proxy shall be furnished with the proxy form. d. In case of corporate entity, the Board’s resolution/power of attorney with specimen signature shall be furnished as per above instructions.
7. CNIC/IBAN for E-Dividend Payment
The provisions of Section 242 of the Companies Act, 2017, read alongside the Companies (Distribution of Dividend) Regulations, 2017, require the listed companies that any dividend payable in cash shall only be paid through electronic mode directly into the bank account designated by the entitled shareholders. Accordingly, the shareholders holding physical shares are requested to provide the Company’s Share Registrar at the address given herein above, electronic dividend mandate on E-Dividend Form provided in the annual report and also available on website of the Company. In the case of shares held in CDC, the same information should be provided to the CDS participants for updating and forwarding to the Company. In case of non-submission, all future dividend payments may be withheld.
8. Zakat Declarations: The members of the Company are required to submit Declaration for Zakat exemption in terms of Zakat and Ushr Ordinance, 1980. 9. Unclaimed Dividend and Bonus Shares Shareholders, who by any reason, could not claim their dividend or bonus shares or did not collect their physical shares, if any, are advised to contact our Share Registrar to collect/enquire about their unclaimed dividend or pending shares, if any.
10. Placement of Financial Statements
The Company has placed a copy of the Notice of AGM and Annual Financial Statements for the year ended 30 June 2022 along with Auditors and Directors Reports thereon and Chairman’s Review on the website of the Company: www.bunnys.com.pk
11. Deposit of Physical Shares into CDC Account
As per Section 72 of the Companies Act, 2017, every existing company shall replace its physical shares with book-entry form in a manner as may be specified and from the date notified by the Securities and Exchange Commission of Pakistan, within a period not exceeding four years from the commencement of the Companies Act, 2017 i.e. May 31, 2017. The shareholder holding shares in physical form are requested to please convert their shares in the book entry form. For this purpose, the shareholders may open CDC sub-account with any of the brokers or investor's account directly with the CDC to place their physical shares into scrip-less form. This will facilitate them in many ways including safe custody and sale of shares, anytime they want as the trading of physical shares is not permitted as per existing Regulations of the Pakistan Stock Exchange limited. It also reduces the risks and costs associated with storing share certificate(s) and replacing lost or stolen certificate(s) as well as fraudulent transfer of shares. For the procedure of conversion of physical shares into book-entry form, you may approach our Share Registrar at the contact information given above.
Statement under Section 134 (3) of the Companies Act, 2017
This statement sets out material facts pertaining to the special business to be transacted at the Annual General Meeting of the Company to be held on October 28, 2022.
Increase in Authorized Share Capital of the Company and consequent alteration in the Memorandum and Articles of Association of the Company.
The existing paid-up share capital of the Company is PKR 668,052,700 divided into 66,805,270 ordinary shares of PKR 10 each while the existing authorized share capital of the Company is PKR 1,000,000,000 divided into 100,000,000 ordinary shares of Rs. 10/- each. In order to cater for increase in paid up share capital of the Company in future, the authorized share capital of the Company needs to be enhanced. Accordingly, the Board of Directors has recommended to increase the authorized share capital of the Company from PKR 1,000,000,000 divided into 100,000,000 ordinary shares of Rs. 10/- each to PKR 1,500,000,000 divided into 150,000,000 ordinary shares of Rs. 10/- each by PKR 500,000,000 i.e., creation of additional 50,000,000 ordinary shares of Rs. 10/- each.
The proposed increase in the authorized share capital of the Company will also necessitate amendment in Clause 5 of Memorandum of Association and Article 4 of the Articles of Association. The Board of Directors has also recommended required alteration in the Memorandum and Articles of Association of the Company to reflect increase in authorized share capital of the Company. Comparative Analysis It is proposed to increase the authorized capital of the Company by PKR. 500 million. i.e., from 1,000 million to PKR 1,500 million.
Reasons for alteration in authorized share capital
Alteration of authorized share capital is being proposed to enhance the existing authorized capital in order to allow issue of shares in future. Additional authorized capital of PKR 500,000,000 i.e., creation of additional 50,000,000 ordinary shares of Rs. 10/- each is being proposed.
Reasons for alterations of Memorandum and Articles of Association
The Company is increasing its authorized share capital in order to cater for future increase in paid up share capital of the Company as mentioned hereinabove. Consequently, the provisions in the Memorandum and Articles of Association relating to authorized share capital will need to be amended. Existing Clause 5 of Memorandum of Association: “5. The authorized capital of the company is Rs. 1,000,000,000 (Rupees one billion) divided into 100,000,000 (hundred million) ordinary shares of Rs. 10/- (Rupees ten only) each.” Proposed Clause V of Memorandum of Association:
“5. The authorized capital of the company is Rs. 1,500,000,000 (Rupees one billion five hundred thousand) divided into 150,000,000 (one hundred fifty million) ordinary shares of Rs. 10/- (Rupees ten only) each.”
Existing Article ___of Articles of Association:
“4. The authorized capital of the company is Rs. 1,000,000,000 (Rupees one billion) divided into 100,000,000 (hundred million) shares of Rs. 10 each.” Proposed Article of Article of Association:
“4. The authorized capital of the company is Rs. 1,500,000,000 (Rupees one billion five hundred thousand) divided into 150,000,000 (one hundred fifty million) ordinary shares of Rs. 10/- (Rupees ten only) each.”
Interest of directors No directors or Chief Executive of the Company or their relatives have any interest in the proposed alterations of the Memorandum and Articles of Association of the Company except in their capacities as directors/Chief Executive/shareholders of the Company.
Availability of Relevant Documents
A copy each of the existing and amended Memorandum and Articles of Association identifying the changes proposed therein bearing the initial of the company secretary for identification purposes is attached herewith. A copy thereof and the documents pertaining to proposed special resolution are available for inspection at the registered office of the Company from 9.00 a.m. to 5.00 p.m. on any working day, up to the last working day before the date of the annual general meeting. The same shall also be available for inspection by the members in the annual general meeting.
Statement of the Board of Directors
“We, the members of the Board of Directors hereby confirm that the proposed amendments/alterations in the Memorandum and Articles of Association of the Company are in line with the applicable laws and regulatory framework.” For the purpose aforesaid, it is proposed to consider and, if though fit, to pass the following resolution as a special resolution, with or without modifications:
“RESOLVED that approval of members of Bunny’s Limited (the “Company”) via special resolution be and is hereby accorded to increase the Authorized Share Capital of the Company from PKR 1,000,000,000 (Rupees one billion) divided into 100,000,000 ordinary shares of PKR 10 each to PKR 1,500,000,000 (Rupees One Billion five hundred thousand) divided into 150,000,000 ordinary shares of PKR 10 each by creation of 50,000,000 additional ordinary shares of PKR 10 each to rank pari passu in every respect with the existing ordinary shares of the Company.
FURTHER RESOLVED that in consequence of the aforesaid increase in the Authorized Share Capital of the Company, the existing clause 5 of the Memorandum of Association and Article 4 of the Articles of Association of the Company be and are hereby substituted accordingly, to read as follows:
Clause 5 of Memorandum of Association:
“The authorized capital of the Company is Rs. 1,500,000,000 (Rupees one billion five hundred thousand) divided into 150,000,000 (one hundred fifty million) ordinary shares of Rs. 10 (Rupees ten only) each.” Article 4 of Articles of Association: “The authorized capital of the Company is Rs. 1,500,000,000 (Rupees one billion five hundred thousand) divided into 150,000,000 (one hundred fifty million) ordinary shares of Rs. 10 (Rupees ten only) each.”
FURTHER RESOLVED that the Chief Executive and Company Secretary be and are hereby singly authorized to do all acts, deeds and things and take all steps and necessary actions ancillary and incidental including filing of requisite documents and returns as may be required with the Registrar of Companies, Securities and Exchange Commission of Pakistan and complying with all other regulatory requirements to effectuate and implement this resolution.”
FURTHER RESOLVED that the aforesaid alteration in the Memorandum of the Company shall be subject to any amendment, modification, addition or deletion as may be deemed appropriate by the authorized person or as may be suggested, directed and advised by the SECP which suggestion, direction and advise shall be deemed to be have been approved as part of the passed Special Resolution without the need of the members to pass a fresh Special Resolution.” Chairperson’s message I am pleased by the performance of Bunny’s Limited for the financial year 2022. Operating in tough economic situation, the Company has posted highest ever sales volume surpassing previous year by 25.18%. However, net profit margin for the year has declined from 4.98% to 3.11% as compared to the previous year.
This year is characterized by ever increasing input costs and a chase by the management to catch the increase by raising output prices. Due to ongoing Russia Ukraine war and domestic flood situation, the increase in input prices is expected to persist in the foreseeable future.
The Board reflects mix of varied backgrounds and rich experience in the field of business, banking and finance. The Board provides strategic directions to the management and available for guidance. The Board ensures that a competent team is in place to achieve the strategic goals and ensures compliance of all regulatory requirements by the management. As required under the Code of Corporate Governance, the Board evaluates its own performance through a mechanism developed by it.
The Board is ably assisted by its committees. The Audit Committee reviews the financial statements and ensures that these fairly represent financial position and performance of the Company. It also ensures effectiveness of internal controls. The HR Committee overviews HR policy framework and recommends selection and compensation of the senior management team. An important role of the Committee is succession planning.
During the year, the Company has made investments in upgradation and modernization of plant and equipment that will ensure sustainability.
I pray to Almighty that the Company continues maintain its momentum of growth in future.
In the end I would like to acknowledge the enormous contribution and commitment of each member of the leadership team and the employees of the company.
BUNNY’S LIMITED DIRECTORS REPORT TO THE SHAREHOLDERS FOR THE YEAR ENDED JUNE 30, 2022 Dear Shareholders, In the name of ALLAH, the most gracious and most merciful, your Directors are pleased to present the Directors’ Report and the Audited Financial Statements of the Company for the year ended June 30, 2022. FINANCIAL PERFORMANCE The financial results of the Company for the year under review are as follow: - OPERATING RESULTS 2022 2021 Revenue – net 4,468,902,597 3,570,045,254 Gross profit 990,656,666 942,403,835 Operating expenses 714,833,766 609,510,145 Operating profit 275,822,900 332,893,690 Financial charges 111,023,710 84,042,256 Other (loss) / income 346,244 8,263,933 Profit before taxation 165,315,861 257,115,367 Taxation 26,186,653 79,162,654 Profit after taxation 138,958,781 177,952,713 Earnings per share 2.08 2.66 (As percentage of sales) BUISINESS REVIEW
Revenue has been increased by 25.18% in comparison to last year. Net margin has decreased from 4.98% to 3.11% in comparison the previous year. In comparison to previous year, earning per share has decreased by 21.80%. This year is characterized by ever increasing input costs and a chase by the management to catch the increase by raising output prices. Due to ongoing Russia Ukraine war and domestic flood situation, the increase in input prices is expected to persist in the foreseeable future. On the other side your Company is working hard in making its processes and operations more and more efficient to remain competitive in the industry.
DIVIDEND PAYMENT The Board has decided to skip any dividend payout in this year for the reasons elaborated in the foregoing paragraph.
STATUTORY PAYMENTS There is no outstanding statutory payment due on account of taxes, duties, levies and charges except of normal and routine nature.
BUNNY’S LIMITED Bunny’s Limited is one of the leading companies in the bakery industry in Pakistan. It was established in 1984. The Company has well experienced leaders on the Board of Directors and Management.
One of the key reasons behind the continued trust of some of the leading industry players is the high- quality standard being maintained at Bunny’s. Bunny’s Limited was the first baking unit in Pakistan to get an ISO certification and is a member of the American Institute of Baking. Bunny’s Limited has secured HACCP (Hazard Analysis and Critical Control Point) certification for its snack foods division. Moreover, Bunny’s Limited is now also ISO 22000 -2005 certified. This signifies the quality and standard associated with Bunny’s products. List of certifications is as follows: 1. AIB International 2. TUV Austria – Food Safety System Certification 22000 3. Punjab Food Authority 4. Management Association of Pakistan 5. Pakistan Standards and Quality Control Authority BOARD OF DIRECTORS
Total Number of Directors:
Male: 04 Female: 03
Composition of Directors: Independent: 02 Non-Executive: 04 Executive: 01 Name Category Mr. Muhammad Rafi Uz Zaman Awan Independent Director Mr. Moazzam Iftikhar Ahmed Independent Director Mrs. Saadia Omar Non-Executive Director - Chairperson Mrs. Mahnan Omar Non-Executive Director Miss Mahnoor Chaudhry Non-Executive Director Miss Maya Omar Non-Executive Director Mr. Omer Shafiq Chaudhry Chief Executive
REMUNERATION POLICY OF THE DIRECTORS
The policy on the remuneration of Non-Executive Directors and Independent Director for attending the Board and Committee meetings of the Company is determined by the Board from time to time.
EXPANSION AND MODERNIZATION PROJECTS
To ensure its role as one of the industry leader, your Company is in a continuous process to update its plant and equipment with latest technology. This ensures sustainability of Company’s operations in the most efficient and cost effective manner.
PRINCIPAL RISKS AND UNCERTAINTIES
Given the structure of demand for food items, the future for bakery and associated products appears to hold considerable promise. Population growth, urbanization, altering tastes and preferences and rising incomes provide producers with the incentive to deliver high quality goods. Bakery items such as bread, buns, rusks and naans are considered to be semi-staple food and therefore, enjoy relatively inelastic demand. Moreover, moving from urban to rural areas, there is a significant difference in eating and consumption patterns with more local goods being preferred in the rural areas. Going forward, the Company is expected to continue with consistent growth trend except for one off capacity enhancement wherein the sales will likely jump up by 20-30% on completion.
CREDIT RATINGS The long-term entity rating of the Company is A- and short-term entity rating have been maintained at A-2 by VIS Credit Rating Company Limited (VIS). These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments.
OUR PEOPLE AND TRAINING
The Company believes that our employees are most valuable asset who mobilize all resources of the Company. We prefer to hire young and motivated professional people who give new ideas. The Company remains committed to investing in human capital and encourages employees to attend training session/ seminars / workshops / development courses to keep themselves fully aware with up to date knowledge and skills for creating and sustaining a culture of high performance.
TRANSACTIONS WITH RELATED PARTIES
All related party transactions have been disclosed in the notes 33 and 34 to the financial statements of the company.
AUDITORS The present auditors M/s Aslam Malik & Co., Chartered Accountants retire and being eligible offers themselves for re-appointment. The Board has received recommendations from its Audit Committee for re-appointment of M/s Aslam Malik & Co., Chartered Accountants as Auditors of the Company.
COMMITTEES OF THE BOARD
1. The Board has formed committees comprising members given below: I. Audit Committee: i. Mr. Muhammad Rafi Uz Zaman Awan – Chairman ii. Miss Mahnan Omar iii. Mrs. Saadia Omar II. HR and Remuneration Committee: i. Mr. Muhammad Rafi Uz Zaman Awan – Chairman ii. Miss Mahnan Omar iii. Miss Maya Omar
The terms of reference of the aforesaid committees have been formed, documented and advised to the committee for compliance.
CORPORATE AND FINANCIAL REPORTING FRAMEWORK
The Directors of the Company are pleased to confirm that the Company has made compliance of the provisions of the Listed Companies (Code of Corporate Governance) Regulations 2019, issued by the Securities and Exchange Commission of Pakistan and there is no material departure from the best practices as detailed in the listing regulations. Our statements on corporate and financial reporting are as follows: 1. The financial statements prepared by the Management of the Company presents fairly its state of affairs, the results of its operations, cash flow and changes in equity; 2. Proper books of accounts of the Company have been maintained; 3. Appropriate accounting policies have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment; 4. International Financial Reporting Standards, as applicable in Pakistan and the requirements of Companies Act, 2017 have been followed in preparation of the financial statements; and any departure thereof has been adequately disclosed and explained; 5. The system of internal control is sound in design and has been effectively implemented and monitored; 6. There are no significant doubts upon the Company’s ability to continue as a going concern; 7. There has been no material departure from the best practices of corporate governance, as detailed in the listing regulations; 8. No trade in the shares of the Company was carried out by the Directors, CEO, CFO, Company Secretary, Executives and their spouses and minor children except that mentioned in “Pattern of Shareholding”.
SYSTEM OF INTERNAL FINANCIAL CONTROL
The system of internal control is sound in design and has been effectively implemented. The system is continuously monitored by Internal Audit and through other such monitoring procedures. The process of monitoring internal controls will continue as an ongoing process with the objective to further strengthen the controls and bring improvements in the system. The Audit Committee regularly reviews the Internal Audit Report and the system of internal controls.
CORPORATE SOCIAL RESPONSIBILITY
Your Company understands its corporate responsibility towards society and fulfills its obligation by providing financial support to under privileged members of the society and its deserving employees as well as doing philanthropy work. The Company is also contributing considerable amounts to the National Exchequer, applying solutions for energy conservation and environment protection, providing the highest quality products to its valued customers. Your Company regularly donates amounts to hospitals, trusts and to various institutions constituted for dealing with natural calamities as part of its philanthropic activities. Your Company also provide its products at subsidized rate to hospitals like Ghulab Devi Hospital. Your Company is providing healthy, safe and learning work environment to its employees and sends them on training courses, seminars, workshops and conferences both within country and abroad. It lends regular support to the special persons by offering them jobs in various departments of the organization. It also offers apprenticeship to fresh graduates, post graduates and engineers, on a regular basis, to elevate their professional and technical skills. During the year, your Company has contributed a huge amount to the National Exchequer by way of payment of various duties, levies and taxes. During the year our country has faced historical floods, by taking its part, your Company has donated many of its products and has also provided its products at discounted rates to different institutions providing relief activities in different areas of the country.
MEASURES TAKEN TO PREVENT COVID – 19
The Management of the Company adopted a number of measures for preventing transmission of COVID-19 among its employees. Company’s operations, being essential food items, were conducted with minimum staff and compliance with SOPs issued by Federal and Provincial Governments was ensured. These included, placement of sanitizer gate, hand sanitizers, checking of temperature at entry points, compulsory face mask and ensuring social distancing at work places. Work places are sprayed with disinfectants on regular basis. Anybody having symptoms of COVID-19 were not allowed to enter the Company premises whereas employees having such symptoms were asked to remain in quarantine at home for at least 2 weeks. Employees over the age of 55 years were restricted to work from home where possible. Awareness sessions were also held by the Company Doctor to educate employees on prevention from COVID-19
PATTERN OF SHAREHOLDING Pattern of shareholding is attached at the end of the financial statements.
ADDITIONAL INFORMATION There have been no material changes since June 30, 2022 to the date of this report and the Company has not entered into any commitment during this period, which would have an adverse impact on the financial position of the company.
CHAIRPERSON’S REVIEW The Directors of your Company fully endorse the Chairperson’s Review report on the performance of the Company for the year ended June 30, 2022.
ACKNOWLEDGEMENT The Directors are grateful to the Company’s shareholders, financial institutions and customers for their continued cooperation, support and patronage which has enabled the Company to continue its efforts for constant improvement. The Directors acknowledge the dedicated service, loyalty and hard work of all the employees of the Company and hope this spirit of devotion will continue.
Lahore: October 06, 2022 CHAIRPERSON
FINANCIAL HIGHLIGHTS For the year ended June 30, 2022 2021 2020 2019 2018 PROFITABILITY ANALYSIS
Gross profit to sales % 22.17 26.40 27.46 26.08 29.12
Profit before tax to sales % 3.70 7.20 6.43 5.80 6.73 Profit after tax to sales % 3.11 4.98 4.58 4.38 5.97 Return on capital employed % 10.32 12.93 12.55 10.70 12.48 Return on equity % 8.67 14.51 11.21 11.08 14.79 Earnings per share Rupees 2.08 2.66 2.49 2.19 2.69
FINANCIAL ANALYSIS
Current ratio times 1.02 1.18 1.40 1.26 1.06
Debt to equity ratio times 0.63 0.62 0.43 0.36 0.25 Interest coverage ratio times 2.49 4.06 2.92 3.07 7.67 Breakup value per share rupees 28.50 26.53 31.17 28.72 27.57 Inventory turnover ratio times 7.11 7.24 7.40 7.08 6.79 Debtors turnover ratio times 10.85 10.43 10.34 10.43 10.95 Fixed assets turnover ratio times 1.18 1.04 1.04 1.44 1.34
Profitability Analysis 35.00
30.00
25.00
20.00
15.00
10.00
5.00
- 2022 2021 2020 2019 2018
Gross profit to sales Profit before tax to sales Profit after tax to sales Return on capital employed Return on equity Earnings per share Financial Analysis 9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
- 2022 2021 2020 2019 2018
Current ratio Debt to equity ratio Interest coverage ratio
Breakup Vlaue per share
32.00
31.00
30.00
29.00
28.00
27.00
26.00
25.00
24.00 2022 2021 2020 2019 2018
Breakup value per share
Turnover Ratios 12.00
10.00
8.00
6.00
4.00
2.00
- 2022 2021 2020 2019 2018
Inventory turnover ratio Debtors turnover ratio Fixed assets turnover ratio CODE OF CONDUCT Bunny’s Limited (the Company) is engaged in the manufacturing of wide range of bread, cakes and snack products with the objective to achieve sustainable growth, profitability and highest standards of safety, occupational health and environmental care. This ensures human resource development, enhancing value addition, implementing conservation measures and growth by up-gradation and addition of newer generation technologies. The Company requires all its Board Members and Employees to act within the authority conferred upon them and in the best interests of the Company and observe all the Company’s policies and procedures as well as relevant laws and regulations, as are applicable in individual capacity or otherwise, including but not limited to the corporate values, business principles and the acceptable and unacceptable behavior (hereinafter called the Company’s Code of Conduct) embodied in this document. The Company believes that the credibility, goodwill and repute earned over the years can be maintained through continued conviction in our corporate values of honesty, justice, integrity and respect for people. The Company strongly promotes trust, openness, teamwork and professionalism in its entire business activities. The business principles are derived from the above stated corporate values and are applied to all facets of business through well-established procedures. These procedures define behavior expected from each employee in the discharge of his/her responsibility. Bunny’s Limited recognizes following obligations, which need to be discharged with best efforts, commitment and efficiency: Safeguarding of shareholders’ interest and a suitable return on equity. Service customers by providing products, which offer value in terms of price, quality and safety. Respect human rights, provide congenial working environment, offer competitive terms of employment, develop human resource and be an equal opportunity employer. Seek mutually beneficial business relationship with contractors, suppliers and investment partners. The Company believes that profit is essential for business survival. It is a measure of efficiency and the value that the customer places on products produced by the Company. The Company requires honesty and fairness in all aspect of its business and in its relationships with all those with whom it does business. The direct or indirect offer, payment, soliciting and accepting of bribe in any form is undesirable. The Company is fully committed to reliability and accuracy of financial statements and transparency of transactions in accordance with established procedures and practices. The Company does not support any political party or contributes funds to groups having political interests. The Company will however, promote its legitimate business interests through trade associations. The Company, consistent with its commitments to sustainable developments, has a systematic approach to the management of health, safety and environment. The Company is committed to observe laws of Pakistan and is fully aware of its social responsibility. It would assist the community in activities such as education, sports, environment preservation, training programs, skills development and employment within the parameters of its commercial objectives. The Company supports free market system. It seeks to compete fairly and ethically within the framework of applicable competition laws in the country. The Company will not stop others from competing freely with it. In view of the critical importance of its business and impact on national economy, the Company provides all relevant information about its activities to legitimate interested parties, subject to any overriding constraints of confidentiality and cost. The Company requires all its board members and employees to essentially avoid conflict of interest between private financial and/or other activities and their professional role in the conduct of Company business. No board member or employee shall in any manner disclose to any person or cause disclosure of any information or documents, official or otherwise, relating to the Company, except those published, and unless he/she is authorized by the management. All papers, books, drawings, sketches, photographs, documents and similar papers containing analysis, formulas, notes or information relating to the Company’s business affairs or operations shall always be treated as the Company property, whether prepared by the employee or otherwise and no employee shall be permitted to carry any of these outside business premises unless specifically authorized to do so by the management. The Company’s property, funds, facilities and services must be used only for authorized purposes. The board members or employees of the Company specifically those coming in direct contact with the vendors doing or seeking to do business with the Company shall not receive favors or incur obligations. In case any contractor/supplier to have business relations with the Company happen to be a relative of an official who is entrusted the responsibility of opening/evaluation/award of supply/contract job or with execution or certification of material/services, he/she shall immediately bring the fact to the notice of Managing Director who may entrust the responsibility to another. Each employee shall devote his/her full time and energy exclusively to the business and interests of the Company. In particular, no employee (including those on leave) unless otherwise permitted by the Company, shall directly or indirectly engage in any other profession or business or enter the services of or be employed in any capacity for any purpose whatsoever and for any part of his/her time by any other person, government department, firm or company and/or shall not have any private financial dealings with any other persons of firms having business relations with the company for sale or purchase of any materials or equipment or supply of labor or for any other purpose. Every employee shall hold himself in readiness to perform any duties required of him by his/her superiors to the best of his/her ability. No board member or employee of the Company shall, directly or indirectly, deal in the shares of the Company in any manner during the closed period, as determined and informed by the Company. No board member or employee of the Company shall practice insider trading.
Without prejudice to any penal action defined in any statute, as applicable, against any kind of non-compliances/violations, non-compliance with the Company’s Code of Conduct may expose the person involved to disciplinary action as per Company’s rules and/or as determined by the management or the Board of Directors of the Company, as the case may be, on case to case basis. Statement of Compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2019
Name of Company Bunny’s Limited
Year ending June 30, 2022 Bunny’s Limited (the “Company”) has complied with the requirement of the Regulations in the following manner: 1. The total number of Directors are 08 as per the following: a. Male 04 b. Female 03 2. The composition of the Board is as follows: a. Independent Directors 02 b. Non-Executive Directors 04 c. Executive Directors 01
Name Category Mr. Muhammad Rafi Uz Zaman Awan Independent Director Mr. Moazzam Iftikhar Ahmed Independent Director Mrs. Saadia Omar Non-Executive Director - Chairperson Miss. Mahnan Omar Non-Executive Director Miss Mahnoor Chaudhry Non-Executive Director Miss Maya Omar Non-Executive Director Mr. Omar Shafiq Chaudhry Chief Executive
Best practices of corporate governance entail having an optimal number and mix of board members with adequate skills and experience. The current Board of Directors of the Company adequately meets this requirement. Further, existing independent directors play an effective part within the Board and make valuable contribution. Therefore, the fraction (2.3) has not been rounded up.
3. The Directors have confirmed that none of them is serving as a Director on more than seven listed companies, including this Company. 4. The Company has prepared a “Code of Conduct” and has ensured that appropriate steps have been taken to disseminate it throughout the Company along with its supporting policies and procedures. 5. The Board has developed a vision / mission statement, overall corporate strategy and significant policies of the Company. A complete record of particulars of significant policies along with the dates on which they were approved, updated or amended has been maintained. 6. All the powers of the Board have been duly exercised and decisions on relevant matters have been taken by the Board/shareholders as empowered by the relevant provisions of the Act and these Regulations. 7. The meetings of the Board were presided over by the Chairman and, in her absence, by a Director elected by the Board for this purpose. The Board complied with requirements of the Act and the Regulations with respect to frequency, recording and circulating minutes of the meeting of Board. 8. The Board of Directors has a formal policy and transparent procedures for remuneration of Directors in accordance with the Act and these Regulations. 9. The Directors were appraised of their duties and responsibilities from time to time. All of the Directors will duly comply with the requirement of Code of Corporate Governance with respect of Directors’ Training Program and the Company is planning to arrange this program for the Directors.
10. The Board has approved appointment of CFO, Company Secretary and Head of Internal Audit, including their remuneration and terms and conditions of appointment and complied with relevant requirements of the Regulations. 11. CFO and CEO duly endorsed the financial statements before approval of the Board. 12. The Board has formed committees comprising members given below: I. Audit Committee: i. Mr. Muhammad Rafi Uz Zaman Awan – Chairman ii. Miss. Mahnan Omar iii. Mrs. Saadia Omer II. HR and Remuneration Committee: i. Mr. Muhammad Rafi Uz Zaman Awan – Chairman ii. Miss. Mahnan Omar iii. Miss Maya Omar 13. The terms of reference of the aforesaid committees have been formed, documented and advised to the committee for compliance. 14. The frequency of meetings (quarterly/half yearly/ yearly) of the committee were as per following: a) Audit Committee 4 b) HR and Remuneration Committee 4 15. The Board has set up an effective internal audit function, which is considered suitably qualified and experienced for the purpose and are conversant with the policies and procedures of the Company. 16. The statutory auditors of the company have confirmed that they have been given a satisfactory rating under the Quality Control Review program of the Institute of Chartered Accountants of Pakistan and registered with Audit Oversight Board of Pakistan, that they and all their partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the Institute of Chartered Accountants of Pakistan and that they and the partners of the firm involved in the audit are not a close relative (spouse, parent, dependent and non-dependent children) of the Chief Executive Officer, Chief Financial Officer, Head of Internal Audit, Company Secretary or Director of the Company; 17. The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the Act, these regulations or any other requirement and the auditors have confirmed that they have observed IFAC guidelines in this regard. 18. We confirm that all requirements of regulation 3, 6, 7, 8, 27, 32, and 36 of the Regulations have been complied with.
For BUNNY’S LIMITED
Director Lahore: October 06, 2022 INDEPENDENT AUDITOR’S REVIEW REPORT To the members of Bunny’s Limited Review report on the Statement of Compliance contained in Listed Companies (Code of Corporate Governance) Regulations, 2019 We have reviewed the enclosed Statement of Compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2019 (the Regulations) prepared by the Board of Directors of Bunny’s Limited for the year ended 30 June 2022 in accordance with the requirements of regulation 36 of the Regulations.
The responsibility for compliance with the Regulations is that of the Board of Directors of the Company. Our responsibility is to review whether the Statement of Compliance reflects the status of the Company's compliance with the provisions of the Regulations and report if it does not and to highlight any non-compliance with the requirements of the Regulations. A review is limited primarily to inquiries of the Company's personnel and review of various documents prepared by the Company to comply with the Regulations. As part of our audit of the financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. We are not required to consider whether the Board of Directors' statement on internal control covers all risks and controls or to form an opinion on the effectiveness of such internal controls, the Company's corporate governance procedures and risks. The Regulations require the Company to place before the Audit Committee, and upon recommendation of the Audit Committee, place before the Board of Directors for their review and approval, its related party transactions. We are only required and have ensued compliance of this requirement to the extent of the approval of the related party transactions by the Board of Directors upon recommendation of the Audit Committee. Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Company's compliance, in all material respects, with the requirements contained in the Regulations as applicable to the Company for the year ended 30 June 2022. Further, we highlight below instance of non-compliance with the requirement of the Regulations as reflected in the paragraph reference where it is stated in the statement of Compliance. Paragraph Description Reference 9 The company has not arranged the directors training program or obtained the exemption from directors training program from the commission as required under clause 19 of the Regulations. The engagement on the review resulting in thus independent auditors’ review report is Hafiz Muhammad Ahmad Saleem.
Opinion We have audited the annexed financial statements of BUNNY’S LIMITED (the Company), which comprise the statement of financial position as at June 30, 2022, and the statement of profit or loss and the statement of comprehensive income, the statement of changes in equity, the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information, and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of the audit.
In our opinion and to the best of our information and according to the explanations given to us, the statement of financial position, statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows together with the notes forming part thereof conform with the accounting and reporting standards as applicable in Pakistan and give the information required by the Companies Act, 2017 (XIX of 2017), in the manner so required and respectively give a true and fair view of the state of the Company's affairs as at June 30, 2022 and of the profit and other comprehensive income, the changes in equity and its cash flows for the year then ended.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants as adopted by the Institute of Chartered Accountants of Pakistan (the Code) and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Following are the key audit matters:
S. No. Key Audit Matters How the matters were addressed in our audit
1 Capital Work in Progress:
Refer to note 4.3 to the financial Our audit procedures in respect of this statements regarding Capital Work in matter, amongst others, included the Progress. following:
Significant changes were evidenced in Obtained an understanding of the
capital work in progress (CWIP) during the design and implementation of year. The company has made capital management controls over expenditure of Rs. 189.245 million and authorization of capital expenditure. made transfer of CWIP to fixed assets amounting to Rs. 150 million. Assessed the nature of costs incurred for the capital project through testing on a We identified changes in capital work in sample basis of amounts recorded and progress (CWIP) as Key Audit Matter considered whether the expenditure because; meets the criteria for capitalization as per the applicable accounting standards. In the capitalization of property, plant & equipment, there is a risk that Vouched the amounts and inspected the amounts being capitalized may not source / supporting documents of meet the capitalization criteria. addition in CWIP. There is a risk that criteria, as specified in IFRSs for transfer from Inspected supporting documents for the CWIP to property, plant & date of capitalization when the plant equipment, may not be fulfilled. was ready for its intended use to assess whether depreciation commenced, and further capitalization of costs ceased from that date and assessed the useful life assigned by management including testing the calculation of related depreciation;
Obtained copy of work order and work
completion certificate from the management; and
We also assessed the adequacy of the
disclosures made in respect of the accounting policies and the details of capital expenditure recognized by the company at the year-end. S. No. Key Audit Matters How the matters were addressed in our audit 2 Revenue Recognition: Our audit procedures in respect of recognition of revenue, amongst others, Refer to note 22 to the financial included the following: statements and the accounting policy in note 3.13 to the financial Obtained an understanding of the statements regarding the sale of processes relating to the recording of goods. revenue and testing the design, implementation and operating The Company is engaged in the effectiveness of relevant key internal manufacturing and sale of bakery and controls over the recording of revenue; other food products. Assessed the appropriateness of the The Company recognized net revenue Company’s accounting policies for the of Rs. 4.469 million from the sale of recording of revenue and compliance of goods to customers during the year the policy with International Financial ended June 30, 2022. Reporting Standard 15 (IFRS 15); Compared a sample of revenue We identified recognition of revenue against the sale of goods as a key audit transactions recorded during the year matter because revenue is one of the with the sales orders, sales invoices, key performance indicators of the delivery orders and other relevant Company and gives rise to an inherent underlying documents; risk of misstatement to meet Compared a sample of revenue expectations or targets. transactions recorded before and after reporting period and near the year-end with relevant underlying documentation to assess whether revenue has been recorded in the appropriate accounting period; Scanned for any manual journal entries relating to sales recorded during and near the year-end which were considered to be material or met other specific risk-based criteria for inspecting underlying documentation; and
Assessed the adequacy of disclosures in
the financial statements to be in accordance with the applicable accounting and reporting standards. Information Other Than the Financial Statements and Auditor’s Report Thereon
Management is responsible for the other information. The Other Information comprises the information included in the Annual Report for the year ended June 30, 2022, but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the Other Information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the Other Information and, in doing so, consider whether the Other Information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this Other Information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Board of Directors for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting and reporting standards as applicable in Pakistan and the requirements of Companies Act, 2017 (XIX of 2017) and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs as applicable in Pakistan will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the board of directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the board of directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the board of directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Based on our audit, we further report that in our opinion: a) proper books of account have been kept by the Company as required by the Companies Act, 2017 (XIX of 2017); b) the statement of financial position, the statement of profit or loss, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows together with the notes thereon have been drawn up in conformity with the Companies Act, 2017 (XIX of 2017) and are in agreement with the books of account and returns;
c) investments made, expenditure incurred and guarantees extended during the year were for the purpose of the Company's business; and
d) No zakat was deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980).
The engagement partner on the audit resulting in this independent auditors' report is Hafiz Muhammad Ahmad Saleem.
Aslam Malik & Co.
Chartered Accountants
Place: Lahore
Date:
UDIN: AR202210148XwH3ASfdC BUNNY'S LIMITED STATEMENT OF FINANCIAL POSITION AS AT JUNE 30, 2022 2022 2021 Note -------------- Rupees -------------- ASSETS Non-current assets Property, plant and equipment 4 2,353,853,140 2,324,733,299 Right of use assets 223,104,165 94,942,395 Intangible assets 5 70,225,828 70,238,962 Long term security deposits 9,065,538 8,656,946 2,656,248,671 2,498,571,602 Current assets Stores, spares and loose tools 14,352,153 15,297,041 Stock-in-trade 6 489,166,590 362,986,413 Trade debts - unsecured 7 411,896,648 342,330,749 Advances, deposits and prepayments 8 225,228,001 173,566,857 Cash and bank balances 9 1,445,986 28,788,910 1,142,089,378 922,969,970
Total assets 3,798,338,049 3,421,541,572
EQUITY AND LIABILITIES
Capital and reserves Authorized share capital 100,000,000 (2021: 100,000,000) Ordinary shares of Rs.10/- each 1,000,000,000 1,000,000,000
Issued, subscribed and paid up share capital 10 668,052,700 668,052,700
Share Premium 11 49,713,670 49,713,670 Un-appropriated profits 1,186,116,953 1,054,435,965 1,903,883,323 1,772,202,335 Non-current liabilities Long term finances - secured 12 439,123,726 557,658,004 Deferred grant 13 - 4,440,855 Lease Liabilities 14 59,294,227 32,387,210 Long term advances - unsecured 15 9,630,423 9,603,123 Deferred liabilities 16 263,460,660 261,626,809 771,509,036 865,716,001 Current liabilities Trade and other payables 17 400,265,368 195,303,221 Contract liability 19,159,960 17,695,694 Unclaimed dividend 765,699 765,699 Accrued mark-up on secured loans 18 29,893,478 13,462,793 Short term borrowings 19 385,486,283 302,719,939 Current portion of long term finances and leases - secured 234,281,970 213,562,710 Provision for taxation - net 20 53,092,932 40,113,180 1,122,945,690 783,623,236
Contingencies and commitments 21
Total equity and liabilities 3,798,338,049 3,421,541,572
The annexed notes from 1 to 43 form an integral part of these financial statements.
Chief Executive Director Chief Financial Officer
BUNNY'S LIMITED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED JUNE 30, 2022 2022 2021 Note -------------- Rupees --------------
Revenue - net 22 4,468,902,597 3,570,045,254
Cost of sales 23 (3,478,245,931) (2,627,641,418) Gross profit 990,656,666 942,403,836 Operating expenses Administrative and general 24 220,638,825 209,834,540 Selling and distribution 25 494,194,941 399,675,605 (714,833,766) (609,510,145)
Operating profit 275,822,900 332,893,691
Other operating expenses 26 (10,627,937) (16,119,085)
Other income 27 10,974,181 24,383,018 Finance cost 28 (111,023,710) (84,042,256) (110,677,466) (75,778,323)
Profit before taxation 165,145,433 257,115,367
Taxation 29 (26,186,653) (79,162,654)
Profit after tax 138,958,781 177,952,713
Earning per share - basic & dilutive 30 2.08 2.66
The annexed notes from 1 to 43 form an integral part of these financial statements.
Chief Executive Director Chief Financial Officer
BUNNY'S LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED JUNE 30, 2022
2022 2021 -------------- Rupees --------------
Profit after taxation 138,958,781 177,952,713
Other comprehensive income
Items that may not be subsequently reclassified to profit or loss Remeasurement of post employee benefit obligation (10,250,413) (10,421,676) Impact of deferred tax 2,972,620 3,022,286 (7,277,793) (7,399,390)
Total comprehensive income for the year 131,680,988 170,553,323
The annexed notes from 1 to 43 form an integral part of these financial statements.
Chief Executive Director Chief Financial Officer
BUNNY'S LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED JUNE 30, 2022
Capital Reserves Revenue Reserve
Share Capital Total Equity Particulars Note Share premium Un-appropriated reserve profit ----------------------- Rupees -----------------------
As at June 30, 2020- Restated 513,886,690 49,713,670 1,038,048,652 1,601,649,012
Total comprehensive income for the year Profit for the year - - 177,952,713 177,952,713 Other comprehensive loss - - (7,399,390) (7,399,390) - - 170,553,323 170,553,323 Transactions with owners of the Company Bonus shares issued 154,166,010 - (154,166,010) -
As at June 30, 2021 668,052,700 49,713,670 1,054,435,965 1,772,202,335
Total comprehensive income for the year Profit for the year - - 138,958,781 138,958,781 Other comprehensive loss - - (7,277,793) (7,277,793) - - 131,680,988 131,680,988
As at June 30, 2022 668,052,700 49,713,670 1,186,116,953 1,903,883,323
The annexed notes from 1 to 43 form an integral part of these financial statements.
Chief Executive Director Chief Financial Officer
BUNNY'S LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2022
Cash generated from operations 31 361,750,401 270,308,152
Finance cost paid (94,593,025) (70,888,132)
Income tax paid 20 (21,948,337) (28,520,625) Staff gratuity paid 16.2 (10,030,627) (19,327,333) Payment of Workers' profit participation fund 17.2 (12,442,572) (9,258,234) Payment of Workers' welfare fund (3,676,513) (2,948,961) Net increase in long term advances 27,300 (671,800) Net increase in security deposits (408,592) (1,509,608) (143,072,366) (133,124,692) Net cash generated from operating activities 218,678,035 137,183,460
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of Property, Plant and Equipment 4.1 (264,412,628) (617,182,629) Proceeds from disposal of Property, Plant and Equipment - 19,598,194 Net cash used in investing activities (264,412,628) (597,584,436)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds less repayment of long term loans 40 (128,551,175) 286,082,676 Proceeds less repayment of lease liabilities 41 64,176,500 13,575,972
Net cash (used) / generated from financing activities (64,374,675) 299,658,648
Net decrease in cash and cash equivalents (110,109,268) (160,742,329)
Cash and cash equivalents at the beginning of the year (273,931,029) (113,188,700) Cash and cash equivalents at end of the year (384,040,297) (273,931,029)
Cash and cash equivalents comprise of the following items:
Cash and bank balances 9 1,445,986 28,788,910 Running finances from banks 19 (385,486,283) (302,719,939) (384,040,297) (273,931,029)
The annexed notes from 1 to 43 form an integral part of these financial statements.
Chief Executive Director Chief Financial Officer
BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022
1 STATUS AND NATURE OF BUSINESS
1.1 Bunny's Limited ("the Legal Acquiree" or "the Economic Acquirer" or "the Company") was incorporated in Pakistan as a private limited Company on October 22, 1980 under the repealed Companies Act 1913 (now Companies Act, 2017) and was later on converted into a Public Listed Company. The Company is principally engaged in manufacturing of bakery and other food products. The registered office and manufacturing facility of the Company is situated at 105/A Quaid-e-Azam Industrial Estate, Kot Lakhpat, Lahore.
2 BASIS OF PREPARATION 2.1 Basis of measurement These financial statements have been prepared under the historical cost convention except that the Company’s liability under defined benefit plan (gratuity) is determined on the present value of defined benefit obligations as determined by an independent actuary. 2.2 Statement of compliance These financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards applicable in Pakistan comprise: International Financial Reporting Standard (IFRS) issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and Provisions of and directives issued under the Companies Act, 2017. Where provisions of and directives issued under the Companies Act, 2017 differ from the IFRS, the provisions of and directives issued under the Companies Act, 2017 have been followed.
2.3 Initial application of a standard, amendment or an interpretation to an existing standard.
2.3.1 Amendments to published accounting and reporting standards which are effective for the year ended June 30, 2021 There were certain amendments to accounting and reporting standards which became effective for the Company for the current year. However, these are considered not to be relevant or to have any significant impact on the Company’s financial reporting and, therefore, have not been disclosed in these financial statements.
2.3.2 Standard, amendments to published accounting and reporting standards and interpretations that are not yet effective and have not been early adopted by the Company There is a standard and certain other amendments to accounting and reporting standards that are not yet effective and 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.
2.4 Functional and presentation currency
These financial statements are presented in Pakistan Rupees which is Company’s functional currency. 2.5 Use of estimates and judgments The preparation of financial statements in conformity with the accounting and reporting standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. Estimates and judgments are continually evaluated and are based on historic experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. In the process of applying the Company’s accounting policies, the management has made the following estimates and judgments which are significant to the financial statements: Note - assumptions and estimates used in determining the recoverable amount, residual values and useful lives 4.1 of operating fixed assets - assumptions and estimates used in determining lease term and incremental borrowing rate of right-of- 3.12 use assets and corresponding lease liabilities. BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022
Note - assumptions and estimates used in determining the useful lives and residual values of intangible assets. 5.2 - assumptions and estimates used in determining the provision for slow moving and obsolete stores, spares and loose tools. - assumptions and estimates used in calculating the provision for impairment for trade debts. 7 - assumptions and estimates used in determination of deferred tax. 16.1 - assumptions and estimates used for valuation of present value of defined benefit obligation. 16.2 - assumptions and estimates used in disclosure and assessment of provision for contingencies and 21 commitments. - assumptions and estimates used in writing down items of inventories to their net realizable value 6
- assumptions and estimates used in impairment loss of Goodwill
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances.
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 Property, plant and equipment and depreciation These are stated at cost less accumulated depreciation and any identified accumulated impairment loss (if any) thereon except freehold land and capital work in progress which are stated at cost. Currently, depreciation is charged to income applying reducing balance method at the rates given in Note 4 to write off the cost of operating fixed assets. Depreciation on additions is charged from the date when the assets is available for use and on deletions up to the date when the assets is deleted.
The carrying values of property, plant and equipment are reviewed at each reporting date for indications that an asset may be impaired and carrying values may not be recovered. If any such indication exists and where the carrying value exceeds the estimated recoverable amount, the asset or cash generating unit is written down to its recoverable amount. The recoverable amount of property, plant and equipment is the greater of fair value less cost to sell and value in use.
Maintenance and repairs are charged to statement of profit or loss as and when incurred. Major renewals and improvements are capitalized and the assets so replaced, if any, are written off. Gains and losses on disposal of assets, if any are included in the profit and loss amount currently. An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Gains and losses on disposals are determined by comparing proceeds with carrying amount of the relevant assets. These are included in profit or loss. 3.2 Intangible assets Intangible assets are stated at cost less accumulated amortization (for finite useful life of intangible asset) and any identified accumulated impairment losses.
Intangible assets with infinite useful life are amortized over the estimated useful life using the reducing balance method at the rate stated in the relevant note to the financial statements. Amortization on additions to intangible assets is charged from the date when an asset is put to use till the asset is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. 3.3 Capital work in progress
All expenditure connected with specific assets incurred during installation and construction period are carried under capital work in progress. These are transferred to specific assets at cost less any identified accumulated impairment losses as and when assets are available for use.
3.4 Stores, spares and loose tools
Stores, spares and loose tools except items-in-transit, are valued at lower of moving average cost or net realizable value less allowances for obsolete and slow moving items. Items-in-transit are valued at invoice price plus other charges incurred thereon. BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022
3.5 Stock-in-trade These are valued at lower of cost and net realizable value. Cost is determined according to the following basis: Raw material - in hand FIFO basis - in transit At cost accumulated to statement of financial position date Work-in-process Weighted average basis Finished goods Weighted average basis Cost in relation to work-in-process and finished goods represents annual average cost which consist of prime cost and appropriate manufacturing overheads. Net realizable value signifies the estimated selling price in the ordinary course of business less estimated cost necessary, if required to be incurred in order to make such sale. 3.6 Trade and other payables Trade and other payables are recognized initially at fair value net of directly attributable cost, if any. 3.7 Borrowings and borrowing costs Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowing costs are recognized as an expense in the period in which these are incurred except to the extent of borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset. Such borrowing costs, if any, are capitalized as part of the cost of that asset.
3.8 Provisions Provision is recognized when the Company has a legal and constructive obligation as a result of past event and it is probable that outflow of resources embodying economic benefits will be required to settle the obligation and reliable estimate can be made of the amount of obligation. Provision is reviewed at each date of statement of financial position and adjusted to reflect current best estimate. 3.10 Dividend to ordinary shareholders Dividend to ordinary shareholders is recognized as a deduction form accumulated profit in the statement of changes in equity and as a liability in the Company's financial statements in the year in which the dividends are approved by the Board of Directors or the Company's shareholders as the case may be. 3.11 Staff retirement benefits The Company operates approved un-funded gratuity scheme for its workers who have completed the minimum qualifying period of service as defined under the respective scheme. Provision is made annually to cover obligations under the scheme on the basis of actuarial valuation and is charged to statement of profit or loss. The Company's net obligation in respect of defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.
Calculation of defined benefit obligation is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Company, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contribution to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements. Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if, any excluding interest), are recognized immediately in OCI. The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plan is recognized in statement of profit or loss. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in statement of profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs. BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022
3.12 Leases a) Right of Use Assets The right-of-use asset is measured at cost, as the amount equal to initially measured lease liability adjusted for lease prepayments made at or before the commencement date, initial direct cost incurred less any lease incentives received.
The right-of-use asset is subsequently depreciated on reducing balance method from the date of recognition to the earlier of the end of useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of the right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by the impairment losses, if any, and adjusted for certain remeasurement of the lease liability.
b) Lease Liability The lease liability was measured upon initial recognition at the present value of the future lease payments over the lease term, discounted with the specific incremental borrowing rate.
Subsequently lease liabilities are measured at amortized cost using the effective interest rate method. It is remeasured when there is a change in future lease payments arising from a change in the rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option.
3.13 Revenue recognition
The Company recognizes revenue when it transfers control over goods to its customers, being when the products are delivered to the customer and there is no unfulfilled obligation that could effect the customer’s acceptance of the product. Revenue is recognized at an amount that reflects the consideration, to which the Company expects to be entitled in exchange for transferring of goods to its customers net of discount and sales related indirect taxes. The sales related indirect taxes are regarded as collected on behalf of statutory authorities. The Company generates revenue by supplying products to the customers, including export product. i) Revenue from sales is recognized on delivery of products to the customers. ii) Dividend income is recognized when the right to receive dividend is established. iii) Income on bank deposits and short term investments are recognized using the effective yield method. 3.13.1 Contract assets Contract assets arise when the Company performs its performance obligations by transferring goods to a customer before the customer pays its consideration or before payment is due.
3.13.2 Contract liabilities
Contract liability is the obligation of the Company to transfer goods to a customer for which the Company has received consideration. If a customer pays consideration before the Company transfers goods, a contract liability is recognized when the payment is made. Contract liabilities are recognized as revenue when the Company performs its performance obligations under the contract.
3.14 Cash and cash equivalents
Cash and cash equivalents comprise running finances, cash balances and call deposits with maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value, and are used by the Company in the management of its short-term commitments. BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022
3.15 Foreign currency transactions
Foreign currency transactions are recorded at the official exchange rate applicable at the transaction date. Monetary assets and liabilities are translated into rupees using official exchange rates applicable at the statement of financial position date. All gains and losses on settlement and transaction at year-end are recognized in the income statement. 3.16 Financial instruments
3.16.1 Recognition and initial measurement
All financial assets or financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A receivable without a significant financing component is initially measured at the transaction price.
3.16.2 Classification and subsequent measurement
Financial assets
On initial recognition, a financial asset is classified as measured at amortized cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL).
Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.
Amortized cost
A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cash
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.
Financial assets measured at amortized cost comprise of long term security deposit, cash and bank balances, trade debts, deposits and other receivables.
Debt Instrument - FVOCI
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. There are no any asset that is measured at FVOCI in the Company. BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022
Equity Instrument - FVOCI
On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in OCI. This election is made on an investment-by-investment basis.
These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are never reclassified to profit or loss. The Company has no equity instruments that are measured at FVOCI.
Fair value through profit or loss (FVTPL)
All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL.
On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss. The Company has no financial asset or financial liability measured at fair value through profit or loss (FVTPL) at year end. Financial assets – Business model assessment: For the purposes of the assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.
In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers:
- contingent events that would change the amount or timing of cash flows; - terms that may adjust the contractual coupon rate, including variable-rate features; - prepayment and extension features; and - terms that limit the Company’s claim to cash flows from specified assets (e.g. non-recourse
features).
Financial liabilities
Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.
Financial liabilities comprise long term finance, lease liabilities, trade and payable, accrued mark-up on borrowing, current portion of long term finances and lease and short term borrowing
3.16.3 Derecognition Financial assets The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. The Company might enter into transactions whereby it transfers assets recognized in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized. BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022
Financial liabilities
The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.
3.16.4 Trade Debts, deposits and other receivables
These are classified at amortized cost and are initially recognized when they are originated and measured at fair value of consideration receivable. These assets are written off when there is no reasonable expectation of recovery. Actual credit loss experience over past years is used to base the calculation of expected credit loss.
3.16.5 Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.
3.16.6 Impairment
Financial assets
The Company recognizes loss allowances for ECLs on:
- financial assets measured at amortized cost; - debt investments measured at FVOCI; and - contract assets. The Company measures loss allowances at an amount equal to lifetime ECLs, except other financial assets at amortized cost excluding trade debts for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition., which are measured at 12-month ECLs.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s historical experience and informed credit assessment and including forward-looking information. The Company monitors changes in credit risk by tracking published external credit ratings.
The Company assumes that the credit risk on a financial asset has increased significantly if it is more than past due for a reasonable period of time. Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months). The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.
Loss allowances for financial assets measured at amortized cost are deducted from the Gross carrying amount of the assets.
The Gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering of a financial asset in its entirety or a portion thereof. The Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due. BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022
Non-financial assets The carrying amount of the Company’s non-financial assets, other than inventories and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or cash generating unit is the greater of its value in use and its fair value less cost to sell. In assessing value in use, the estimated future cash flows are discounted to their present values using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash generating unit.
An impairment loss is recognized if the carrying amount of the assets or its cash generating unit exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. Impairment losses recognized in respect of cash generating units are allocated to reduce the carrying amounts of the assets in a unit on a pro rata basis. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to that extent that the asset’s carrying amount after the reversal does not exceed the carrying amount that would have been determined, net of depreciation and amortization, if no impairment loss had been recognized.
3.17 Taxation Current Provision of current tax is based on taxable income for the year determined in accordance with the prevailing law for taxation of income. The charge for current tax is calculated using prevailing tax rates or tax rates expected to apply to the profit for the year, if, enacted. The charge for current tax also includes adjustments, where considered necessary, to provision for tax made in previous years arising from assessments framed during the year for such years. Deferred Deferred tax is accounted for using the statement of financial position liability method in respect of all taxable temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which the deductible temporary differences, unused tax losses and tax credits can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Deferred tax is calculated at the rates that are expected to apply to the period when the differences reverse, based on tax rates that have been enacted. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income tax levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. 3.18 Goodwill and its impairment Goodwill on merger of companies is included in ‘intangible assets’. Goodwill is tested for impairment as part of the overall balance. Separately recognized goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. The carrying values of goodwill and intangible assets are contingent on future cash flows and there is risk if these cash flows do not meet the company's expectations that the assets will be impaired. The impairment reviews performed by the company contained a number of significant judgments and estimates including revenue growth, the success of new product launches, patent expiry dates, profit margins, cash conversion, terminal values and discount rate. Changes in these assumptions might lead to a change in the carrying value of intangible assets and goodwill.
3.19 Related party transactions
All transactions involving related parties arising in the normal course of business are conducted at arm's length at normal commercial rates on the same terms and conditions as third party transactions using valuation modes, as admissible, except in extremely rare circumstances where, subject to the approval of the board of directors, it is in the interest of the Company to do so. BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022
3.20 Government Grants
Government grants are transfers of resources to an entity by a government entity in return for compliance with certain past or future conditions related to the entity's operating activities - e.g. a government subsidy. The definition of "government" refers to governments, government agencies and similar bodies, whether local, national or international.
The Company recognizes government grants when there is reasonable assurance that grants will be received and the Company will be able to comply with conditions associated with grants. Government grants are recognized at fair value, as deferred income, when there is reasonable assurance that the grants will be received and the Company will be able to comply with the conditions associated with the grants.
Grants that compensate the Company for expenses incurred, are recognized on a systematic basis in the income for the year in which the related expenses are recognized. Grants that compensate for the cost of an asset are recognized in income on a systematic basis over the expected useful life of the related asset.
A loan is initially recognized and subsequently measured in accordance with IFRS 9. IFRS 9 requires loans at below-market rates to be initially measured at their fair value - e.g. the present value of the expected future cash flows discounted at a market-related interest rate. The benefit that is the government grant is measured as the difference between the fair value of the loan on initial recognition and the amount received, which is accounted for according to the nature of the grant.
3.21 Share Capital
Ordinary shares are classified as share capital. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax.
3.22 Earnings per share (“EPS”)
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year.
Diluted EPS is calculated by adjusting basic EPS by the weighted average number of ordinary shares that would be issued on conversion of all dilutive potential ordinary shares into ordinary shares and post-tax effect of changes in profit and loss attributable to ordinary shareholders of the Company that would result from conversion of all dilutive potential ordinary shares into ordinary shares.
3.23 Operating segment
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors of the Company that makes strategic decisions. BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022 4 PROPERTY, PLANT AND EQUIPMENT 2022 2021 Note -------------- Rupees -------------- Operating fixed assets 4.1 1,789,355,486 1,799,481,085 Capital work in progress 4.3 564,497,654 525,252,214 Right of use assets 223,104,165 94,942,395 2,576,957,305 2,419,675,694 4.1 Operating fixed assets (Amounts in Rupees) Owned Assets Right-of-use Assets / Lease assets Electric Building on freehold Plant and Furniture and Plant and Total Assets Land - freehold installation and Office equipment Motor vehicles Total Owned Motor vehicles land machinery fixtures machinery appliances Cost Balance as at July 01, 2021 530,000,000 643,666,001 1,135,134,873 18,850,557 22,062,993 11,180,900 158,085,330 2,518,980,654 50,000,000 93,495,861 2,662,476,515 Additions during the year - 5,401,052 205,185,935 4,146,000 394,700 561,000 9,478,500 225,167,187 - - 225,167,187 Transfers during the year (150,000,000) 18,627,561 (131,372,439) 150,000,000 (18,627,561) - Balance as at June 30, 2022 530,000,000 649,067,053 1,190,320,808 22,996,557 22,457,693 11,741,900 186,191,391 2,612,775,402 200,000,000 74,868,300 2,887,643,702 Balance as at July 01, 2020 530,000,000 631,627,922 1,070,985,921 18,293,987 19,804,457 10,002,725 48,233,847 2,328,948,859 50,000,000 72,926,908 2,451,875,767 Additions during the year - 12,038,079 74,256,844 556,570 2,258,536 1,178,175 94,489,926 184,778,130 - 50,485,000 235,263,130 Disposals during the year - - (10,107,892) - - - (14,554,490) (24,662,382) - - (24,662,382) Transfer during the year - - - - - - 29,916,047 29,916,047 - (29,916,047) - Balance as at June 30, 2021 530,000,000 643,666,001 1,135,134,873 18,850,557 22,062,993 11,180,900 158,085,330 2,518,980,654 50,000,000 93,495,861 2,662,476,515 Depreciation Balance as at July 01, 2021 - 222,347,684 428,878,586 8,374,082 15,170,602 5,682,350 39,046,266 719,499,570 9,096,517 39,456,949 768,053,036 Charge for the year - 21,277,659 37,085,638 1,366,882 2,113,317 576,203 24,368,081 86,787,780 9,319,147 11,024,089 107,131,016 Transfer during the year - - - - - - 17,132,567 17,132,567 - (17,132,567) - Balance as at June 30, 2022 - 243,625,343 465,964,224 9,740,964.00 17,283,919 6,258,553 80,546,913 823,419,917 18,415,664 33,348,471 875,184,052 Balance as at July 01, 2020 - 200,762,913 398,598,985 7,237,526 12,686,514 5,124,939 37,721,720 662,132,597 6,943,702 28,464,994 697,541,292 Charge for the year - 21,584,771 35,737,311 1,136,556 2,484,088 557,411 5,235,691 66,735,828 2,152,815 16,908,391 85,797,034 Transfer during the year - - - - - - 5,916,436 5,916,436 - (5,916,436) - Depreciation on disposals - - (5,457,710) - - - (9,827,581) (15,285,291) - - (15,285,291) Balance as at June 30, 2021 - 222,347,684 428,878,586 8,374,082 15,170,602 5,682,350 39,046,266 719,499,570 9,096,517 39,456,949 768,053,035 Rate of depreciation 5% 5% 10% 30% 10% 20% 5% 20% Net book value as at June 30, 2022 530,000,000 405,441,710 724,356,584 13,255,593 5,173,774 5,483,347 105,644,478 1,789,355,486 181,584,336 41,519,829 2,012,459,651
Net book value as at June 30, 2021 530,000,000 421,318,317 706,256,287 10,476,475 6,892,391 5,498,550 119,039,065 1,799,481,085 40,903,483 54,038,912 1,894,423,480 2022 2021 -------------- Rupees -------------- 4.2 Depreciation charged for the year has been allocated as under: Cost of sales 69,049,325 60,611,453 Administrative and general expenses 38,081,691 25,185,581 107,131,016 85,797,034 4.3 Capital work in progress Opening balance 525,252,214 143,332,715 Additions during the year 189,245,440 381,919,499 Transfers (Plant and machinery) (150,000,000) - Closing balance 4.3.1 564,497,654 525,252,214 4.3.1 This comprise plant and machinery 4.4 Particulars of immovable property (i.e. land and building) in the name of Company are as follows: Location / Address Usage of immovable property Total Area (In Kanal) Appro. Covered Area (In sq. ft.) 85,86,87 &105 Quaid-e-Azam Industrial Estate, Kot Lakhpat, Lahore Production unit 21.4 50,510 BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022 2022 2021 Note -------------- Rupees -------------- 5 INTANGIBLE ASSETS Goodwill on reverse merger 5.1 70,173,290 70,173,290 ERP Software 5.2 52,538 65,672 70,225,828 70,238,962 5.1 This represents goodwill arisen at time of reverse merger with Moonlite (PAK) Limited in 2018. Management has tested the goodwill for impairment at year end and concluded that no impairment is required. 2022 2021 Note -------------- Rupees -------------- 5.2 ERP SOFTWARE
Cost 375,000 375,000
Accumulated amortization (322,462) (309,328) 52,538 65,672 Amortization rate 20% 20% 6 STOCK-IN-TRADE Raw materials 333,851,649 260,568,890 Packing materials 125,965,965 85,452,681 Work-in-process 6,556,901 1,575,632 Finished goods 22,792,075 15,389,210 489,166,590 362,986,413 7 TRADE DEBTS - UNSECURED Considered good 411,896,648 342,330,749 411,896,648 342,330,749 8 ADVANCES, DEPOSITS AND PREPAYMENTS Advances to staff against salary-Unsecured 35,853,145 9,276,261 Advances to suppliers 186,282,977 160,046,618 Bank guarantee margin 966,597 966,597 Prepaid expenses 2,125,282 3,277,381 225,228,001 173,566,857 9 CASH AND BANK BALANCES Cash in hand 1,248,210 98,535 Cash at bank (current accounts) 6,253,357 32,727,565 Book overdraft (6,055,581) (4,037,191) 1,445,986 28,788,910 10 ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL
2022 2021 2022 2021
Number of shares -------------- Rupees --------------
2,159,586 2,159,586 Ordinary shares of Rs.10/- each fully paid in cash. 21,595,860 21,595,860
49,229,083 49,229,083 Ordinary shares of Rs. 10/- each issued to the shareholders of 492,290,830 492,290,830 economic acquirer as per the approved scheme of arrangement otherwise than cash. 15,416,601 15,416,601 Fully Paid Bonus shares issued during the year 154,166,010 154,166,010 66,805,270 66,805,270 668,052,700 668,052,700
10.1 The ordinary share holders are entitled to receive all distributions including dividends and other entitlements in the form of bonus and right shares, as and when declared by the Company. All shares carry one vote per share without restriction. BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022
2022 2021 -------------- Rupees -------------- Note 11 SHARE PREMIUM Share premium 11.1 49,713,670 49,713,670 49,713,670 49,713,670 11.1 Share Premium Reserve can be utilized by the Company only for the purposes specified in Section 81 of the Companies Act, 2017.
12 LONG TERM FINANCES - SECURED
Samba Bank Limited - SBP Salary Refinance Scheme 12.1 61,224,724 178,595,223 Samba Bank Limited - Term Finance 12.2 132,467,680 100,000,000 PAIR Investment Company Limited - Term Finance - I 12.3 63,888,890 88,888,891 PAIR Investment Company Limited - Term Finance - II 12.4 144,000,000 150,000,000 Orix Leasing Pakistan Limited - Sale And Leaseback - I 12.5 4,245,171 17,411,190 Orix Leasing Pakistan Limited - Sale And Leaseback - II 12.5 1,840,780 3,924,808 Pak Libya Holding Company (Private) Limited - SBP TERF 12.6 167,240,000 150,879,365 First Habib Modaraba- Diminishing Musharika 12.7 53,741,942 64,871,383 628,649,187 754,570,859 Less: current portion shown under current liabilities (174,244,218) (184,261,116) Less: Deferred grant 12.1 (15,281,243) (12,651,740) 439,123,726 557,658,004
12.1 The Company has obtained long term loans of Rs. 240 million for financing its salaries and wages under SBP Refinance Scheme for payment of wages and salaries, earmarked from running finance limit, which is secured against first Joint Pari Passu Hypothecation charge over stock and book debts. The rate of markup on these loans is 3% per annum. These loans are for two and half years with six month grace period and are repayable in eight equal quarterly instalments of Rs. 30 million commencing from 1 January 2021.
Due to the effects of pandemic, State Bank of Pakistan took various steps to support the economy. SBP introduced a refinance scheme for payment of salaries and wages at subsidized rate of borrowing. The company has obtained the said borrowing from Samba Bank Limited at subsidized rate in six tranches at 3% concessional interest rate which is repayable by September 2022 in 8 quarterly installments.
No Government grant has been recorded during the year ended 30 June 2022 (2021: 12.652 million) and Rs. 10.974 million (Rs. 2021: 9.249 million) has been amortized during the year. In accordance with the terms of the grant, the company is prohibited to lay-off the employees at least for three months from the period of the grant.
12.2 The company has obtained this term finance facility from Samba Bank Limited for the import of plant and machinery through import Letter of Credit. The tenor of this term finance is 5 years with 1 year grace period. This facility carries markup @ 3 month KIBOR + 2.25% payable on quarterly basis. The principal is repayable in 16 quarterly installments with last installment payable on January, 2027. The facility is secured against first pari passu charge on present and future fixed assets of the company and personal guarantees of sponsoring directors and chief executive of the company. 12.3 This long term loan carries markup at the rate of 6 month KIBOR + 2.25% with a sanction limit of Rs. 150 million. The principal and markup are payable on monthly basis after six months grace period with last installment payable in October, 2023. This facility is secured against first pari passu charges on present and future fixed assets of the company.
12.4 The company has obtained this facility to support expansion plan by providing permanent working capital. Tenor of this facility is 6 years with 6 months grace period. The facility carries markup @ 3 month KIBOR + 2.25% payable on quarterly basis. The principal is repayable in quarterly installments with last installment payable in March, 2027. The facility is secured against pari passu charge over present and future fixed assets of the company and personal guarantees of the directors and chief executive of the company.
12.5 This represents sale and leaseback arrangements from Orix Leasing Pakistan Limited. The Sale and Leaseback does not meet the criteria of Sale under IFRS-15, and hence this arrangement is classified as Financing Arrangement under IFRS 9. Markup rate is chargeable @ 6 month KIBOR + 5%. The loan is secured against specific fixed assets. 12.6 This facility of long term loan has been obtained for the purchase of fully automated bun and burger line under State Bank Temporary Economic Refinance Facility (TERF). This carries markup at the rate of 5% per annum. Total tenor of the loan is 10 years including two years grace period. The principal and markup is repayable in quarterly installments with last installment payable in July, 2030. The loan is secured against fixed assets of the company. 12.7 That was sale and leaseback arrangement from First Habib Modaraba. The Sale and Leaseback does not meet the criteria of sale under IFRS-15, and hence this arrangement was classified as Financing Arrangement under IFRS 9. This facility carries markup @ 6 month KIBOR + 2%. BUNNY'S LIMITED ThatFINANCIAL NOTES TO THE was sale and leaseback arrangement from First Habib Modaraba. The Sale and Leaseback does not meet the criteria of sale under IFRS-15, and STATEMENTS hence FOR THE YEAR this arrangement ENDED was classified as Financing Arrangement under IFRS 9. This facility carries markup @ 6 month KIBOR + 2%. JUNE 30, 2022
2022 2021 Note -------------- Rupees -------------- 13 Deferred grant As at 01 July 15,281,243 11,878,516 Received during the year - 12,651,740 Amortization (10,974,181) (9,249,013) 4,307,062 15,281,243 Current portion (4,307,062) (10,840,388) As at 30 June - 4,440,856 14 LEASE LIABILITIES The amount of future minimum lease payments along with their present value and the period during which they fall due are as under:
2022 2021 Note -------------- Rupees -------------- Analyzed as: Non current 59,294,227 32,387,210 Current 55,730,690 18,461,207 115,024,917 50,848,417 14.1 Maturity analysis Year 1 55,730,690 18,461,207 Year 2 51,396,513 28,150,260 Year 3 6,455,389 3,578,251 Year 4 1,442,325 658,699 Year 5 - - Onwards - - 115,024,917 50,848,417 14.2 The company does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are monitored within the company’s treasury function. 14.3 The Company entered into lease agreements with financial institutions to acquire vehicles. The liabilities under the lease agreements are payable in equal monthly installments and are subject to finance charges at the rates ranging from 3 months KIBOR + 2% to 3.5% (June 30, 2021 : 6 months KIBOR + 2.5% to 3.95%). The lease liabilities are secured against security deposits, post dated cheques, personal guarantee of all the directors of the Company and also secured against financed vehicles. 2022 2021 -------------- Rupees -------------- 14.4 Amounts recognized in profit and loss Depreciation expense on right-of-use assets 20,343,236 19,061,206 Unwinding of lease liabilities 13,077,219 8,173,241 33,420,455 27,234,447 14.5 The total cash outflow for leases amount to Rs. 232.932 million from the date of inception till February 28, 2026. 15 LONG TERM ADVANCES - UNSECURED From contractors against recovery of sales proceeds 9,630,423 9,603,123 9,630,423 9,603,123 16 DEFERRED LIABILITIES Deferred taxation 16.1 204,970,442 216,684,498 Staff retirement benefits - gratuity 16.2 58,490,218 44,942,310 263,460,660 261,626,808 BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022 2022 2021 Note 16.1 Deferred taxation -------------- Rupees -------------- Opening deferred tax liability 216,684,498 188,194,892
Deferred tax charged / (reversal) to profit or loss
Accelerated tax depreciation (12,751,533) 21,553,994 Liabilities against assets subject to finance lease 18,555,728 (1,784,018) Sales and lease back 7,650,051 (8,920,442) Intangible assets (3,808) (4,761) Unused tax losses / credits (21,235,601) 18,567,337 Employees' retirement benefits (956,273) 2,099,783 Deferred tax reversal to other comprehensive income Employees' retirement benefits (2,972,620) (3,022,286)
- accelerated tax depreciation 229,401,314 242,152,847 - liabilities against assets subject to finance lease 31,342,982 12,787,254 - intangible assets 15,236 19,045 260,759,532 254,959,145 deductible temporary differences: - unused tax losses / credits 21,476,838 241,237 - Sales and Lease Back 17,350,089 25,000,140 - employees' retirement benefits 16,962,163 13,033,270 55,789,090 38,274,647 204,970,442 216,684,498 16.2 STAFF RETIREMENT BENEFITS - GRATUITY The latest actuarial valuation of gratuity was carried out as at June 30, 2022 under the projected unit credit method as per the requirements of approved accounting standards - International Accounting Standard 19, the details of which are as follows:
Present value of Defined Benefits Obligations as at 30 June 58,490,218 44,942,310
The movement in defined benefit obligation is as follows: As at 01 July 44,942,310 41,761,264
Current service cost 9,335,422 9,358,407
Interest cost 3,992,700 2,728,296 Amount recognized in profit and loss 13,328,122 12,086,703 Benefits paid (10,030,627) (19,327,333) Actuarial losses 10,250,413 10,421,676 As at 30 June 58,490,218 44,942,310 Amount charged to profit and loss Current service cost 9,335,422 9,358,407 Interest cost 3,992,700 2,728,296 13,328,122 12,086,703 Amount charged to Other Comprehensive Income Actuarial losses 10,250,413 10,421,676
Reconciliation of Defined Benefits Liability
As at 01 July 44,942,310 41,761,264 Amount charged to profit and loss 13,328,122 12,086,703 Amount charged to Other Comprehensive Income 10,250,413 10,421,676 Benefits paid (10,030,627) (19,327,333) 58,490,218 44,942,310 BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022 2022 2021 Note -------------- Rupees -------------- 16.2.1 Principal actuarial assumptions used in the actuarial valuations Financial assumptions Discount rate used for year end obligation 13.25% 10.00% Expected rate of increase in salary 10.25% 7.00% Demographic Assumptions Mortality rate SLIC (2001-05) SLIC (2001-05) 16.2.2 Sensitivity analysis for actuarial assumptions The calculation of defined benefit obligation is sensitive to the following assumptions. The below information summarized how the defined benefit obligation at the end of the reporting period would have been increased/(decreased) as a result of change in respective assumptions by 100 basis points. Increase in Decrease in assumptions assumptions
Discount rate 53,479,279 63,696,104
Increase in future salaries 63,970,676 53,479,936
2022 2021 Note -------------- Rupees -------------- 16.2.3 Allocation of expense to profit and loss account has been made as follows: Cost of sales 2,633,204 2,865,585 Administrative and general 6,619,490 5,903,465 Selling and distribution 4,075,428 3,317,652 13,328,122 12,086,703 17 TRADE AND OTHER PAYABLES Trade Creditors - unsecured 184,010,461 127,274,732 Accrued expenses 17.1 85,755,639 51,909,404 Bills payable - secured 119,871,331 - Workers' welfare fund 2,387,978 3,676,513 Workers' profit participation fund 17.2 8,239,959 12,442,572 400,265,368 195,303,221 17.1 This includes salary payable to director amounting to Rs. 1.5 million (2021: 1.5 million) 17.2 Workers' (profit) participation fund As at 01 July 12,442,572 9,258,234 Allocation for the period 8,239,959 12,442,572 20,682,531 21,700,806 Less: Payment made during the period (12,442,572) (9,258,234) As at 30 June 8,239,959 12,442,572 18 ACCRUED MARK-UP ON SECURED LOANS Long term finances and leases 17,900,960 9,002,159 Short term borrowings 11,992,518 4,460,634 29,893,478 13,462,793 19 SHORT TERM BORROWINGS Running finance 19.1 349,654,802 302,719,939 Finance Against Trust Receipt (FATR) 35,831,481 - 385,486,283 302,719,939 19.1 Running Finance facilities has been obtained form different banks to meet the working capital requirements which carries markup at the rate of 3 month KIBOR + 2.25% and is secured against ranking and first pari passu charges on present and future current assets of the company amounting.
19.2 These facilities are available as sub limit of letters of credit from Samba Bank Limited amounting to Rs. 85 million (2021: Rs. 50 million) and carry mark up at 3 months KIBOR plus 2.25% (2021: 3 months KIBOR plus 2.25%) per annum. The amount utilized as at 30 June 2022 is 35.831 million (2021: Nil) BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022 20 PROVISION FOR TAXATION - NET 2022 2021 -------------- Rupees -------------- Opening Balance 40,113,180 20,515,782 Provision for the year 34,928,089 48,118,022 Paid during the year (21,948,337) (28,520,625) Closing Balance 53,092,932 40,113,180
21 CONTINGENCIES AND COMMITMENTS
21.1 Letter of guarantee amounting to Rs 2.552 million (2021: Rs.2.552 million) has been issued in favor of Sui Northern Gas Pipeline Limited. There are no other known contingencies as at balance sheet date. 21.2 There are no major commitments outstanding as at balance sheet date. 2022 2021 -------------- Rupees -------------- 22 REVENUE - NET Gross Revenue 4,927,026,470 3,912,303,901 Trade Discounts (277,934,895) (214,938,834) Sales tax (180,188,978) (127,319,813) 4,468,902,597 3,570,045,254 22.1 Revenue has been recognized at a point in time for local sales made during the year.
22.2 During the year the Company has recognized revenue, amounting to Rs. 17.695 million out of contract liability as at 01 July 2021. 2022 2021 Note -------------- Rupees -------------- 23 COST OF SALES Raw materials consumed Opening Inventory 260,568,890 207,409,149 Purchases 2,512,141,939 1,897,747,019 Closing Inventory (333,851,649) (260,568,890) 2,438,859,180 1,844,587,278 Packing material consumed Opening inventory 85,452,681 59,461,107 Purchases 349,764,835 258,517,954 Closing Inventory (125,965,965) (85,452,681) 309,251,551 232,526,380 Wages and salaries 23.1 341,467,571 288,240,814 Fuel and power 260,650,684 160,189,077 Repair and maintenance 48,443,612 32,623,528 Other indirect expenses 11,912,314 11,608,666 Insurance 3,846,481 1,201,223 Depreciation 4.2 69,049,325 60,611,453 735,369,987 554,474,761
Manufacturing cost 3,483,480,718 2,631,588,419
Work-in-process Opening balance 1,575,632 1,616,315 Closing balance (6,556,901) (1,575,632) (4,981,269) 40,683 Finished goods Opening balance 15,389,210 5,248,139 Purchases 7,149,347 6,153,387 Closing balance (22,792,075) (15,389,210) (253,518) (3,987,684) Cost of sales 3,478,245,931 2,627,641,418 23.1 These include staff retirement benefits amounting to Rs. 2,633,204 (2021: Rs. 2,865,585). BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022 2022 2021 Note -------------- Rupees -------------- 24 ADMINISTRATIVE AND GENERAL Directors' remuneration 22,728,228 34,821,114 Salaries and benefits 24.1 89,866,902 71,151,291 Printing and stationery 6,254,380 5,793,109 Traveling and conveyance 2,034,630 3,950,647 Telephone, postage and telegram 5,870,601 6,621,801 Fee and subscription 9,831,145 15,106,660 Vehicle running, maintenance and insurance 17,799,718 18,912,047 Rent, rates and taxes 1,247,831 410,957 Insurance 8,257,504 4,293,864 Entertainment 10,447,893 10,126,904 Repair and maintenance 858,565 4,146,419 Charity and donation 24.2 1,584,120 1,024,800 Legal and professional 167,000 1,135,523 Auditors' remuneration 24.3 1,500,000 1,317,500 Newspaper and periodicals 120,466 14,894 Depreciation 4.2 38,081,691 25,185,581 Amortization of intangible assets 13,134 16,418 Miscellaneous expenses 3,975,017 5,805,011 220,638,825 209,834,540 24.1 These include staff retirement benefits amounting to Rs. 6,619,490 (2021: Rs. 5,903,465) 24.2 None of the directors or their spouses had any interest in the donee. No donation exceeding Rs. 500,000 has been paid to a single institute during the year. 2022 2021 Note -------------- Rupees -------------- 24.3 Auditors' remuneration Audit fee 1,000,000 900,000 Half year review 350,000 350,000 Others 150,000 67,500 1,500,000 1,317,500 25 SELLING AND DISTRIBUTION Salaries and benefits 25.1 55,022,474 39,985,875 Commission and other sales incentives 143,779,460 138,579,459 Vehicle running and maintenance 255,544,001 182,864,245 Advertisement 27,571,815 24,775,612 Sales promotion expenses 12,277,191 13,470,414 494,194,941 399,675,605 25.1 These include staff retirement benefits amounting to Rs. 4,075,428 (2021: Rs. 3,317,652) 26 OTHER OPERATING EXPENSES Workers' welfare fund 2,387,978 3,676,513 Workers' profit participation fund 17.2 8,239,959 12,442,572 10,627,937 16,119,085 27 OTHER INCOME Gain on sale of fixed assets - 10,221,103 Amortization of deferred income - 2,614,781 Amortization of deferred grant 13 10,974,181 9,249,013 Other - 2,298,121 10,974,181 24,383,018 28 FINANCE COST Mark up on: -Long term finances 53,392,226 52,243,131 -Short term finances 36,972,055 18,107,414 Unwinding of lease liabilities 13,077,219 8,173,241 Bank charges and others 7,582,210 5,518,470 111,023,710 84,042,256 BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022 2022 2021 Note -------------- Rupees -------------- 29 TAXATION Current tax expense 34,928,089 47,650,762 Deferred tax (reversal) / expense (8,741,436) 31,511,892 26,186,653 79,162,654
30 EARNING PER SHARE - BASIC & DILUTIVE
Net profit after taxation Rupees 138,958,781 177,952,713
Weighted average number of shares outstanding during 66,805,270 66,805,270 Numbers the year Earning per share - basic & dilutive Rupees 2.08 2.66
31 CASH GENERATED FROM OPERATIONS
Profit before taxation 165,145,433 257,115,367 Adjustments for: Depreciation 107,131,016 85,797,034 Finance cost 111,023,710 84,042,256 Provision for workers' profit participation fund 8,239,959 12,442,572 Provision for workers' welfare fund 2,387,978 3,676,513 Provision for gratuity 13,328,122 12,086,703 Amortization of deferred income - (2,614,781) Amortization of deferred grant (10,974,181) (9,249,013) Amortization of intangible assets 13,134 16,418 Gain on disposal of fixed assets - (10,221,103) 231,149,739 175,976,599 Operating profit before working capital changes 396,295,172 433,091,966 Changes in working capital (Increase)/ decrease in current assets: Stores, spares and loose tools 944,888 (194,000) Stock-in-trade (126,180,177) (89,251,703) Trade debts - unsecured (69,565,899) (72,262,775) Advances, deposits and prepayments (51,661,144) (31,094,540) Decrease in current liabilities Trade and other payables 210,453,295 23,758,992 Contract liability 1,464,266 6,260,211 (34,544,771) (162,783,814) Cash generated from operations 361,750,401 270,308,152
32 FINANCIAL RISK MANAGEMENT
The Company has exposure to the following risks arising from financial instruments: - credit risk - liquidity risk - market risk
Risk management framework
The Company's Board of Directors ("the Board") has overall responsibility for establishment and oversight of the Company's risk management framework. The Board is responsible for developing and monitoring the Company’s risk management policies.
The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The Board of Directors reviews and agrees upon the policies for managing each of these risks. BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022
The Company's audit committee oversees how management monitors compliance with the Company’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. Audit committee is assisted in its oversight role by internal audit department. Internal audit department undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.
32.1 Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. To manage credit risk the Company maintains procedures covering the application for credit approvals, granting and renewal of counterparty limits and monitoring of exposures against these limits. As part of these processes the financial viability of all counterparties is regularly monitored and assessed.
32.1.1 Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk as at the end of the reporting period was as follows: 2022 2021 Note -------------- Rupees -------------- At Amortized Cost Advances and long term security deposit 44,918,683 17,933,207 Trade debts 411,896,648 342,330,749 Other receivable 36,819,742 10,242,858 Bank balances 6,253,357 32,727,565 499,888,430 403,234,379 32.1.2 Concentration of credit risk The Company identifies concentrations of credit risk by reference to type of counter party. Maximum exposure to credit risk by type of counterparty is as follows:
Credit quality of financial assets is assessed by reference to external credit ratings, where available, or to historical information about counterparty default rates. All counterparties, with the exception of customers, have external credit ratings determined by various credit rating agencies. Credit quality of customers is assessed by reference to historical defaults rates and present ages.
32.1.3(a) Counterparties with external credit ratings
These include banking companies and financial institutions, which are counterparties are bank balances. These counterparties have reasonably high credit ratings as determined by various credit rating agencies. Due to long standing business relationships with these counterparties and considering their strong financial standing, management does not expect non-performance by these counterparties on their obligations to the Company. Following are the credit ratings of counterparties with external credit ratings:
Rating 2022 2021
Bank Short term Long term Rating agency Rupees Rupees
Allied Bank Limited A1+ AAA PACRA 6,013,624 7,099,296
Bank Islamic Limited A1 A+ PACRA 46,129 46,429 Bank Al-Habib A1+ AAA PACRA 132,195 215,836 Metropolitan Bank Limited A-1+ AA+ PACRA 5,000 5,000 Meezan Bank Limited A1+ AAA VIS 56,409 25,361,005 6,253,357 32,727,565
Bank guarantee margin
Bank Al-Habib A1+ AAA PACRA 966,597 966,597 BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022
32.1.3(b) Counterparties without external credit ratings
These include customers which are counter parties to trade debts. The Company is exposed to credit risk in respect of trade debts. The analysis of ages of trade debts of the Company as at the reporting date is as follows:
2022 2021 Note -------------- Rupees -------------- Past due 1 - 30 Days 184,591,912 172,343,761 Past due 31 - 60 Days 199,676,236 131,018,276 Past due 61 - 120 Days 11,352,092 8,917,838 Past due above 121 Days 29,642,381 30,050,874 425,262,621 342,330,749 Management believes that no impairment allowance is necessary in respect of trade debts past due as some receivables have been recovered subsequent to the year end and for other receivables there are reasonable grounds to believe that the amounts will be recovered in short course of time.
32.2 Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset, or that such obligations will have to be settled in a manner unfavorable to the Company. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and availability of adequate funds through committed credit facilities. The Company finances its operations through equity, borrowings and working capital with a view to maintaining an appropriate mix between various sources of finance to minimize risk. The management aims to maintain flexibility in funding by keeping regular committed credit lines.
32.2.1 Exposure to liquidity risk
32.2.1 (a) Contractual maturities of financial liabilities, including estimated interest payments The following are the remaining contractual maturities at the reporting date. The amounts are grossed and undiscounted, and include estimated interest payments and exclude the impact of netting agreements. 2022 Carrying Contractual One year One to Three to More than five amount cash flows or less three years five years years ----------------------------------------------------------------- Rupees ----------------------------------------------------------------- Non-derivative financial liabilities Long term finance 12 628,649,187 827,550,590 245,939,357 428,986,040 122,874,143 29,751,050 Lease liability 14 59,294,227 80,246,240 65,882,869 14,363,371 - - Short term borrowing 19 385,486,283 385,486,283 385,486,283 - - - Accrued mark-up 18 29,893,478 29,893,478 29,893,478 - - - Trade and other payable 17 389,637,431 389,637,431 389,637,431 - - - Unclaimed dividend 765,699 765,699 765,699 - - - 1,493,726,305 1,713,579,721 1,117,605,117 443,349,411 122,874,143 29,751,050
2021 Carrying Contractual One year One to Three to More than five amount cash flows or less three years five years years ----------------------------------------------------------------- Rupees ----------------------------------------------------------------- Non-derivative financial liabilities Long term finance 12 754,570,859 889,869,218 252,240,314 432,845,231 130,847,563 73,936,110 Lease liability 14 32,387,210 40,097,398 21,631,270 36,927,335 - - Short term borrowing 19 302,719,939 302,719,939 302,719,939 - - - Accrued mark-up 18 13,462,793 13,462,793 13,462,793 - - - Trade and other payable 17 179,184,136 179,184,136 179,184,136 - - - Unclaimed dividend 765,699 765,699 765,699 - - - 1,283,090,637 1,426,099,183 770,004,151 469,772,566 130,847,563 73,936,110 32.3 Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing return. BUNNY'S LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2022 32.3.1 Currency risk The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which advances, sales and purchases and bank balances are denominated and the respective functional currency of the Company. The functional currency of the Company is Pak Rupee. The Company is not exposed to currency risk. 32.3.2 Interest rate risk Interest rate risk is the risk that fair values or future cash flows of a financial instrument will fluctuate because of changes in interest rates. Sensitivity to interest rate risk arises from mismatch of financial assets and financial liabilities that mature or re-price in a given period. 32.3.2 (a) Mark-up bearing financial instruments
The effective interest / mark-up rates for interest / mark-up bearing financial instruments are mentioned in relevant notes to the financial statements. The Company's interest / mark-up bearing financial instruments as at the reporting date are as follows: Financial liability 2022 2021 -------------- Rupees -------------- Fixed rate instruments 61,224,724 178,595,223 Variable rate instruments 1,012,204,973 929,543,993 1,073,429,697 1,108,139,215 32.3.2 (b) Cash flow sensitivity analysis for variable rate instruments A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased / (decreased) equity and profit by amounts shown below. The analysis assumes that all other variables, in particular foreign exchange rates, remain constant. Effect on profit before taxation 2022 2021 -------------- Rupees -------------- Increase of 100 basis points (10,122,050) (9,295,440) Decrease of 100 basis points 10,122,050 9,295,440 32.3.2 (c) Interest rate risk management The Company manages these mismatches through risk management strategies where significant changes in gap position can be adjusted. The Company's borrowings are based on variable rate pricing that is mostly dependent on Karachi Inter Bank Offer Rate ("KIBOR") as indicated in respective notes. 32.3.3 Price risk Price risk represents the risk that the fair value or future cash flows of financial instrument will fluctuate because of changes in market prices, other than those arising from interest rate risk or currency risk, whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments trading in market. The Company is not exposed to any price risk. 33 Capital management The Board’s policy is to maintain an efficient capital base so as to maintain investor, creditor and market confidence and to sustain the future development of its business. The Board of Directors monitors the return on capital employed, which the Company defines as operating income divided by total capital employed. The Board of Directors also monitors the level of dividends to ordinary shareholders.
The Company’s objectives when managing capital are:
- to safeguard the entity’s ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other - to provide an adequate return to shareholders. The Company manages the capital structure in the context of economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may, for example, adjust the amount of dividends paid to shareholders, issue new shares, or sell assets to reduce debt.
There were no changes in the Company’s approach to capital management during the year. The Company is not subject to externally imposed capital requirements. 2022 2021 -------------- Rupees -------------- Debt 1,118,186,206 1,106,327,862 Total Equity 1,903,883,323 1,772,202,335 Total Capital 3,022,069,529 2,878,530,197 Gearing Ratio 37.00% 38.43% There were no changes in the Company’s approach to capital management during the year. 34 Fair value of financial instruments
34.1 Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is the presumption that the Company is a going concern without any intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.
The fair value of financial assets and liabilities traded in active markets i.e. listed equity shares are based on the quoted market prices at the close of trading on the period end date. The quoted market prices used for financial assets held by the Company is current bid price.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm's length basis.
IFRS 13, 'Fair Value Measurements' requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date (level 1).
- Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (level 2). - Unobservable inputs for the asset or liability (level 3).
The following table shows the carrying amounts and fair values of financial instruments and non-financial instruments including their levels in the fair value hierarchy:
Carrying Amount Fair Value
Fair value through other Fair value Financial Assets comprehensive through profit at amortized Other financial income and loss cost liabilities Total Level 1 Level 2 Level 3 On-Balance sheet financial instruments Note - - - - - - - - - - - - - - - - - - Rupees - - - - - - - - - - - - - - - - - - - - -------------- Rupees --------------
30 June 2022
Financial assets measured at fair value - - - - - - - -
- - - - - - - -
Financial assets at amortized cost
Advances and long term security deposit - - 44,918,683 - 44,918,683 - - -
The Company has not disclosed the fair values of these financial assets and liabilities as these are for short term or repriced over short term. Therefore, their carrying amounts are reasonable approximation of fair value. 35 REMUNERATION OF DIRECTORS, CHIEF EXECUTIVE AND EXECUTIVES
2022 Executive Non-Executive Chief Executive Executives Director Director Managerial remuneration 22,728,228 - - 53,857,056
No. of persons 1 1 6 22
2021
Executive Non-Executive Chief Executive Executives Director Director
Managerial remuneration 34,821,114 - - 40,563,180
No. of persons 1 1 6 15
35.1 The chief executive and executive director are provided with Company maintained cars in accordance with their terms of employment.
35.2 No meeting fee has been paid to any director of the Company during the year (June 30, 2021: Nil).
36 TRANSACTION WITH ASSOCIATED UNDERTAKINGS
The related parties comprise associated undertakings, other related companies and key management personnel. The Company in the normal course of business carried out transactions with related parties. Detail of transactions with key management personnel are disclosed in Note 35. Balances of related parties if any are shown in the relevant notes. There are no other significant related party transactions. 2022 2021 Number of Employees 37 NUMBER OF EMPLOYEES Average number of employees during the year 724 695 Total number of employees at year end 758 751
38 OPERATING SEGMENT
The Company's chief decision maker reviews the Company's performance on single segment accordingly the financial information has been prepared on basis of single reportable segment.
38.1 Revenue from sale of bakery and snacks items represent 85% and 15% of total revenue of the Company respectively.
38.2 All of the Company sales are local.
38.3 All assets of the Company as at 30 June 2022 are located in Pakistan.
39 PRODUCTION CAPACITY 2022 2022 2021 2021 Maximum Actual Maximum Actual Capacity Production Capacity Production
All units in Metric Tons
- Bakery Division 13,500 12,400 13,500 12,000 - Snacks Division 1,800 925 1,800 765 39.1 Actual production in snacks division is lesser due to lower demand.
40 RECONCILIATION OF MOVEMENTS OF LIABILITIES TO CASH FLOWS ARISING FROM FINANCING ACTIVITIES
2022 Long term Leases Dividend Payable Total finances
As at 01 July 754,570,859 32,387,210 765,699 787,723,768
Changes from financing activities
Repayment during the year (174,749,988) (38,857,720) - (213,607,708) Disbursement of long term finances 48,828,315 - - 48,828,315 Addition of new leases - 103,034,220 - 103,034,220 (125,921,672) 64,176,500 - (61,745,172)
As at 30 June 628,649,186 96,563,710 765,699 725,978,595
2021 Long term Leases Dividend Payable Total finances
As at 01 July 468,488,184 37,272,445 765,699 506,526,328
Changes from financing activities
Repayment during the year (325,048,806) (36,909,028) - (361,957,834) Disbursement of long term finances 611,131,481 - - 611,131,481 Addition of new leases - 50,485,000 - 50,485,000 286,082,675 13,575,972 - 299,658,647
As at 30 June 754,570,859 50,848,417 765,699 806,184,975
41 EVENTS AFTER THE REPORTING PERIOD
There are no other significant events after the reporting period which may require adjustment of and/or disclosure in these financial statements.
42 DATE OF AUTHORIZATION FOR ISSUE
These financial statements have been authorized for issue by the board of directors of the Company on
43 GENERAL The figures have been rounded off to the nearest rupee.
Chief Executive Director Chief Financial Officer
BUNNY'S LIMITED. Pattern Of Share Holding - Form "34" Share Holders Statistics As At June 30, 2022 Number of Total Shareholdings Shareholders Shares Held
1679 Shareholding From 1 To 100 46,610
580 Shareholding From 101 To 500 130,731 137 Shareholding From 501 To 1000 122,706 258 Shareholding From 1001 To 5000 687,251 82 Shareholding From 5001 To 10000 640,837 33 Shareholding From 10001 To 15000 440,874 14 Shareholding From 15001 To 20000 251,950 14 Shareholding From 20001 To 25000 328,972 9 Shareholding From 25001 To 30000 254,500 4 Shareholding From 30001 To 35000 134,134 6 Shareholding From 35001 To 40000 231,850 4 Shareholding From 40001 To 45000 165,414 5 Shareholding From 45001 To 50000 244,854 4 Shareholding From 50001 To 55000 210,000 4 Shareholding From 55001 To 60000 235,500 7 Shareholding From 60001 To 65000 440,918 5 Shareholding From 65001 To 70000 345,368 1 Shareholding From 75001 To 80000 76,050 2 Shareholding From 80001 To 85000 167,000 1 Shareholding From 85001 To 90000 88,000 2 Shareholding From 90001 To 95000 185,100 1 Shareholding From 95001 To 100000 100,000 1 Shareholding From 100001 To 105000 103,500 1 Shareholding From 105001 To 110000 110,000 1 Shareholding From 120001 To 125000 122,200 1 Shareholding From 125001 To 130000 127,500 1 Shareholding From 135001 To 140000 138,500 1 Shareholding From 150001 To 155000 150,120 2 Shareholding From 175001 To 180000 353,592 2 Shareholding From 180001 To 185000 362,134 1 Shareholding From 185001 To 190000 188,000 2 Shareholding From 195001 To 200000 400,000 1 Shareholding From 210001 To 215000 212,000 1 Shareholding From 275001 To 280000 277,500 1 Shareholding From 280001 To 285000 280,500 1 Shareholding From 350001 To 355000 355,000 1 Shareholding From 380001 To 385000 381,095 1 Shareholding From 545001 To 550000 548,000 1 Shareholding From 580001 To 585000 581,500 1 Shareholding From 655001 To 660000 657,000 1 Shareholding From 690001 To 695000 690,168 1 Shareholding From 945001 To 950000 950,000 1 Shareholding From 960001 To 965000 964,000 1 Shareholding From 990001 To 995000 992,500 1 Shareholding From 995001 To 1000000 1,000,000 1 Shareholding From 1020001 To 1025000 1,025,000 2 Shareholding From 1095001 To 1100000 2,200,000 1 Shareholding From 1300001 To 1305000 1,304,860 1 Shareholding From 1545001 To 1550000 1,550,000 1 Shareholding From 1660001 To 1665000 1,663,014 1 Shareholding From 1820001 To 1825000 1,821,500 1 Shareholding From 2515001 To 2520000 2,518,045 1 Shareholding From 2715001 To 2720000 2,720,000 1 Shareholding From 2720001 To 2725000 2,724,000 2 Shareholding From 3195001 To 3200000 6,399,781 1 Shareholding From 5230001 To 5235000 5,233,422 1 Shareholding From 6395001 To 6400000 6,399,780 1 Shareholding From 6445001 To 6450000 6,446,499 1 Shareholding From 9325001 To 9330000 9,325,941 2894 66,805,270
Categories Shareholders as on June 30, 2022
S. No. Categories Shareholders Shares Held Total
1 Directors and their spouse(s) and minor children 28,356,408 42.45
Mr. Omer Shafiq Chaudhry 16,222,377
Mrs. Saadia Omar 2,517,860 Miss Mahnoor Chaudhry 6,399,780 Miss Mahnan Omar 3,199,891 Miss Maya Omar 3,250 Mr. Muhammad Rafi Uz Zaman Awan 3,250 Mr. Moazzam Iftikhar Ahmed 10,000
2 Associate Companies, Undertakings and related parties - -
3 NIT and ICP 150,120 0.22
4 Banks and Development Finance Institutions 150,120 0.22
5 Joint Stock Companies 9,228,877 13.81
6 Insurance Companies 24,000 0.04
7 Modarabas and Mutual Fund 4,098,063 6.13
8 Others 1,125,797 1.69
9 General Public 23,671,885 35.43
Total 66,805,270 100.00
Shareholders Holding 10% or More In The Company Number of Shares %
Omer Shafiq Chaudhry 16,222,377 24.28
Proxy Form I/We ________________________________________________________ of _______________ a member/members of Bunny’s Limited and holder of =_______________= shares as per Registered Folio # _______________ do hereby appoint ___________________________ of _____________________ who is also member of the Company vide Registered Folio # ________________ as my/our Proxy to attend, speak and vote for me/us and on my/our behalf at the Annual General Meeting of the Company to be held on 28 October, 2022 at 09:00 a.m. at _________, Lahore and at any adjournment thereof. As witness my hand this ___________ day of __________________2022.
Date: Place: Lahore CNIC # Note: 1. The Form of Proxy should be deposited at the Registered Office of the Company not later than 48 hours before the time for holding the meeting.
