Transmission of quarterly report for the period December 31,2024

AMTEX LIMITED

Half Yearly Report

December 31, 2024

A M T E X

CONTENTS

COMPANY INFORMATION

DIRECTOR'S REPORT

AUDITOR'S REVIEW REPORT

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION CONDENSED INTERIM STATEMENT OF PROFIT & LOSS ACCOUNT CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME CONDENSED INTERIM CASH FLOW STATEMENT

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY NOTES TO THE CONDNSED INTERIM FINANCIAL STATEMENTS

Company Information

Share Registrar Office

Vision Consulting Limited

3-C, LDA Flats, Lawrance Road, Lahore

Registered Office

P-225 Tikka Gali # 2 Montgomery Bazar, Faisalabad

Projects Locations

Website

www.amtextile.com

DIRECTORS' REPORT

The Board of Directors of Amtex Limited presents herewith the Directors' Report together with the Company's un-audited financial information for the half year ended December 31, 2024.

Financial Results

The financial results for the period under review with comparative figures of previous period are presented hereunder to have a quick look on the performance of the Company.

During 1st half year under review company earned gross profit of Rs.113.30 million as compared to gross profit of Rs. 211.80 million in the corresponding period of last year and net loss of Rs. 31.03 million as compared to net profit of Rs. 42.62 million in the corresponding period of last year. Sales volume has almost same as compared to previous corresponding period and the company's total sales are Rs. 1,423.36 million in six months against sales of Rs. 1,427.18 million in the corresponding period of last year. Despite political instability, poor law and order situation and increasing prices of utilities, fuel and energy, Company maintained its growth in export volume. However, increasing cost of doing business due to increase in raw material, fuel and energy prices Company bear loss of Rs. 31.08 million.

Qualification in Auditors' Report to the Members

Regarding the "going concern" observation of auditors, directors of your company explain that the management is making all efforts to continue operations and to run the entity as a going concern. Company's continuity of operations and consistency in increasing sales volume since last couple of years clearly indicate that management's efforts and plans are effective and feasible. Moreover, the company is in process of selling certain properties mortgaged with the banks and entire such sale proceeds will be paid to relevant charge holder banks to reduce the debt burden and to settle the litigation with these banks. The

management of the company has already taken steps for extension and restructuring of loans from certain banks and negotiations with other banks of the company are in process. In view of steps mentioned above, the management is confident that it will be successful in its efforts and hence the company will be able to continue as a going concern.

Certain banks / financial institutions have filed suit against the Company for recovery of its financing and mark up so Company has not provided any mark up / cost of funds on the outstanding amount as also stated in notes to the accounts. Based on the legal opinion, the Company feels that, after institution of the suit, bank/financial institution is only entitled to cost of funds if so awarded by the Court in case the suit is awarded against the company. The levy of cost of funds and the quantum thereof shall be contingent on passing of the decree and rate prescribed by the State Bank of Pakistan during the period of pendency of the claim and discharge of decree, if passed by the Court.

Future outlook

Despite being a vital sector, Pakistan's textile industry faces several challenges. Manufacturing units need a consistent power supply to operate efficiently, but load- shedding and high energy costs create roadblocks for textile producers. Lower labor cost and increasing Government support in neighbor countries is also a challenge for Pakistan's textile products to compete on price. The textile industry in Pakistan is undeniably one of the most critical sectors of the economy, contributing to employment, exports, and GDP. By focusing on innovation, sustainability, and value addition, Pakistan can further enhance its standing in the global textile market. Management is fully aware of the situation, working hard and hopeful that with the improvement of textile market along with improvement of energy supply will reduce the operating cost and the production and operating results will improve. However, the future growth of exports and textile industry mainly depends on the actual realization of the supports announced by the Government, better law and order situation and on availability of financial support by banks.

Acknowledgement

The Directors of your Company would like to place on record their deep appreciation for the support of the customers, banks, financial institutions, regulators and shareholders and hope that this cooperation and support will also continue in future.

The Directors of your Company would also like to express their appreciation for the services, loyalty and efforts being continuously rendered by the executives, staff members and workers of the Company and hope that they will continue to do so in future.

For and on behalf of the Board

Faisalabad

February 28, 2025

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2025  28 :