Half Yearly
Accounts December, 31 2024
BIBOJEE GROUP
BANNU
WOOLLEN MILLS LIMITED
COMPANY'S PROFILE | 1 | |
DIRECTOR'S REPORT (English & | ) | 2-5 |
AUDITOR'S REVIEW REPORT | 6 | |
CONDENSED INTERIM STATEMENT OF | ||
FINANCIAL POSITION | 7 | |
CONDENSED INTERIM STATEMENT OF PROFIT OR | ||
LOSS & OTHER COMPREHENSIVE INCOME | 8 | |
CONDENSED INTERIM STATEMENT OF CASH FLOWS | 9 | |
CONDENSED INTERIM STATEMENT OF CHANGES IN | ||
EQUITY | 10 | |
NOTES | 11-17 |
Board of Directors | Mr. Ahmad Kuli Khan Khattak | Chairman |
Mrs. Shahnaz Sajjad Ahmad | Chief Executive | |
Lt. Gen. (Retd.) Ali Kuli Khan Khattak | ||
Dr. Shahin Kuli Khan Khattak | ||
Syed Zubair Ahmed Shah | ||
Mr. Abdul Rehman Qureshi (Independent) | ||
Brig. (R.) Agha Arshad Raza (Independent) | ||
Audit Committee | Mr. Abdul Rehman Qureshi | Chairman |
Syed Zubair Ahmad Shah | Member | |
Brig. (R.) Agha Arshad Raza | Member | |
Human Resource & | Mr. Abdul Rehman Qureshi | Chairman |
Remuneration Committee | Lt. Gen. (Retd.) Ali Kuli Khan Khattak | Member |
Mr. Ahmad Kuli Khan Khattak | Member | |
Mrs. Shahnaz Sajjad Ahmad | Member | |
Syed Zubair Ahmed Shah | Member | |
Brig. (R.) Agha Arshad Raza | Member | |
Chief Operating Officer (COO) | Mr. Khalid Kuli Khan Khattak | |
Assistant Chief Operating Officer / | Mr. Azmat Khan | |
Company Secretary | ||
Chief Financial Officer | Mr. Kalim Aslam | |
Head of Internal Audit | Mr. Salman Khan - ACA | |
Auditors | M/S. ShineWing Hameed Chaudhri & Co | |
Chartered Accountants | ||
Bankers | National Bank of Pakistan | |
Bank Alfalah Ltd. | ||
Legal Adviser | M/S Hassan & Hassan, Advocates | |
Paaf Building, 1-D, Kashmir / Egerton Road, Lahore | ||
Tax Consultant | M. Nawaz Khan & Co | |
1-Ground Floor, Farrah Centre, 2 Mozang Road, Lahore | ||
Registrars & Shares | CDC Share Registrar (Services) Limited | |
Registration Office | CDC House, 99-B, Block B, S.M.C.H.S. Main | |
Shahra-e-Faisal, Karachi-74400 | ||
Tel: UAN# 021-0800 23275, Fax: 021-34326053 | ||
E-Mail: info@cdcsrsl.com | ||
Registered Office | Bannu Woollen Mills Ltd | |
D.I.Khan Road, Bannu | ||
Tel. (0928) 612274, 662273, 613250 | ||
E-Mail: bannuwoollen@yahoo.com | ||
Web Site: www.bwm.com.pk | ||
Mills | D.I.Khan Road, Bannu | |
Tel. (0928) 612274, 662273, 613250 | ||
E-Mail: bannuwoollen@yahoo.com | ||
Web Site: www.bwm.com.pk |
On behalf of the Board of Directors of Bannu Woollen Mills Limited, we are pleased to present the condensed interim Financial Statements of the Company for the half year ended December 31, 2024 duly reviewed by the statutory auditors.
FINANCIAL PERFORMANCE
During the second quarter, the Company's net sales amounted to Rs. 525.54 million, reflecting a decline of 8.85% as compared to the same period of the corresponding year. Despite the decrease in sales, gross profit improved by 12% amounting Rs. 16.60 million over the corresponding quarter of the last year. Distribution, administrative and other expenses decreased by 2.08% as compared to the same period of the corresponding year reflecting the Company's ongoing focus on cost optimization and operational efficiency. Net profit before tax declined to Rs. 168.321 million in the second quarter, compared to Rs. 399.257 million in the same period last year. Thi s decrease was primarily driven by a share of loss of Rs. 107.002 million and a lower impairment loss reversal from associated companies, which stood at Rs. 189.704 million (December 31, 2023: share of loss of Rs. 13.820 million and impairment loss reversal of Rs. 337.143 million). Consequently, net profit after tax dropped by 65% to Rs. 129.315 million, resulting in earnings per share (EPS) of Rs. 13.60, down from Rs. 39.07 in the corresponding quarter of the previous year.
The financial results for the six months period under review are summarized below:
FINANCIAL RESULTS
Six months period ended | ||
Dec. 31, | Dec. 31, | |
2024 | 2023 | |
- Rupees in thousand - | ||
Sales - net | 846,837 | 769,994 |
Gross profit | 257,110 | 191,423 |
Profit from operations | 163,153 | 104,142 |
Profit before taxation | 199,230 | 376,618 |
Profit after taxation | 150,419 | 346,345 |
Earnings per share | 15.82 | 36.43 |
During the period under review, the Company's net turnover increased by Rs. 76.843 million, reflecting a 10% growth compared to the corresponding period of the previous year. This increase was primarily driven by the rising demand for the Company's products, which led to higher order volumes from key dealers, contributing significantly to the overall growth in net turnover.
The gross profit margin increased from 24.86% to 30.36% compared to the corresponding period of the previous year, primarily driven by lower manufacturing costs . The decrease in EPS is mainly attributed due to lower reversal of impairment loss from Associated Company.
The reduction in policy rates has positively impacted the Company's financial performance, leading to a decrease in finance costs to Rs. 46.625 million from Rs. 50.847 million in the corresponding period of the previous year, representing an 8.30% reduction.
The Company produced 393,257 meters of greasy fabric, compared to 652,472 meters during the same period last year. This decline was due to a reduction in production shifts compared to the previous year.
FUTURE OUTLOOK
In the first half of fiscal year 2025, Pakistan's economy has shown signs of stabilization, with inflation decreasing to 7.2% from 28.8% in the same period the previous year. This improvement is attributed to effective macroeconomic management and targeted government policies. The agricultural sector experienced a growth of 6.2% in FY2024, supported by increased investment and favorable weather conditions. Additionally, foreign direct investment has risen by 20%, reflecting renewed confidence in Pakistan's economic trajectory. However, challenges persist, including the need for continued structural reforms and fiscal discipline to ensure sustainable growth.
As the management navigates an evolving market landscape, our unwavering commitment to excellence and innovation will continue to be the foundation of our strategy. Our primary focus for the remainder of the financial year ending June 30, 2025, will be on driving sales growth, which is expected to significantly enhance the Company's profitability. Additionally, we are dedicated to addressing liquidity challenges by ensuring adequate working capital to support our operations.
ACKNOWLGEMENT
We formally express our sincere appreciation for the dedication and hard work of our executives, officers, staff, and workers, whose contributions have been instrumental in achieving the Company's strong performance. We also recognize the valuable contributions and active involvement of the Board Committee members in guiding and supporting management on key strategic matters. Additionally, the Board extends its gratitude to our banking partners, customers, and suppliers for their unwavering support and commitment to the Company.
On behalf of the Board of Directors,
(LT. GEN. ALI KULI KHAN KHATTAK (RETD.) | (SHAHNAZ SAJJAD AHMAD) |
DIRECTOR | CHIEF EXECUTIVE OFFICER |
February 18, 2025 |
202518
Independent Auditors' Review Report to the Members of
Bannu woollen Mills Limited
To the Members of Bannu Woollen Mills Limited
Report on Review of Condensed Interim Financial Statements
Introduction
We have reviewed the accompanying condensed interim statement of financial position of Bannu Woollen Mills Limited (the Company) as at December 31, 2024 and the related condensed interim statement of profit or loss, condensed interim statement of other comprehensive income, condensed interim statement of changes in equity, condensed interim statement of cash flows, and notes to the condensed interim financial statements for the six months period then ended (here-in-after referred to as the "interim financial statements"). Management is responsible for the preparation and presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these interim financial statements based on our review.
The figures of the condensed interim statement of profit or loss and condensed interim statement of other comprehensive income for the quarters ended December 31, 2024 and 2023 have not been reviewed, as we are required to review only the cumulative figures for the six months period ended December 31, 2024.
Scope of Review
We conducted our review in accordance with InternationalStandard on Review Engagements 2410, "Review of Interim Financial Information Performed by the IndependentAuditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with InternationalStandards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.
The engagement partner on the review resulting in this independent auditors' review report is Osman Hameed Chaudhri.
LAHORE; FEBRUARY 18, 2025
UDIN: RR202410104VkrXsj43W
Condensed Interim Statement of Financial Position as at December 31, 2024
Dec. 31, | June 30, | |||||
2024 | 2024 | |||||
Assets | Note | Un-audited | Audited | |||
- - - Rupees in '000 - - - | ||||||
Non-current assets | 5 | 1,564,045 | ||||
Property, plant and equipment | 1,569,223 | |||||
Intangible assets | 184 | 104 | ||||
Investments in an Associated Company | 6 | 1,232,647 | 1,149,945 | |||
Security deposits | 3,794 | 3,794 | ||||
Current assets | 2,800,670 | 2,723,066 | ||||
Stores and spares
Stock-in-trade
Trade debts
Advances to employees - unsecured, considered good Advance payments
Prepayments and other receivables
Sales tax refundable
Income tax refundable, advance tax and tax deducted at source
Cash and bank balances
Total assets
Equity and liabilities
Share capital and reserves
Authorised capital
Issued, subscribed and paid-up capital
Capital reserves
- share premium
- revaluation surplus on property, plant and equipment Revenue reserves
- general reserve
- unappropriated profit
Shareholders' equity
Liabilities
Non-current liabilities
Lease liabilities
Staff retirement benefits - gratuity
Deferred taxation
Current liabilities
7
8
149,982
616,552
288,812
16,798
27,752
25,512
3,742
11,086
30,945
1,171,181
3,971,851
200,000
95,063
19,445
2,739,467
154,055
275,432
3,283,462
6,385
156,261
81,305
243,951
150,813
815,116
126,126
22,125
16,208
2,011
16,110
15,381
4,306
1,168,196
3,891,262
200,000
95,063
19,445
2,743,515
154,055
120,965
3,133,043
4,096
146,585
52,570
203,251
Trade and other payables | 9 |
Contract liabilities | |
Unpaid dividends | |
Unclaimed dividends | |
Accrued mark-up | |
Short term finances | |
Current portion of lease liabilities | 10 |
Provision for tax levies & income taxes | |
Total liabilities | |
Contingencies and commitments | 11 |
Total equity and liabilities |
124,839
4,533
3,452
4,746
20,261
255,120
10,682
20,805
444,438
688,389
3,971,851
99,997
6,882
3,452
4,746
22,588
396,799
8,622
11,882
554,968
758,219
3,891,262
The annexed notes 1 to 18 form an integral part of these condensed interim financial
statements.
Shahnaz Sajjad Ahmad | Abdul Rehman Qureshi | Kalim Aslam |
Chief Executive | Director | Chief Financial Officer |
Condensed Interim Statement of Profit or Loss & Other
Comprehensive Income (Un-audited)
For the Quarter and Six Months Period Ended December 31, 2024
Quarter ended | Six months period ended | |||||||
Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | |||||
Note | 2024 | 2023 | 2024 | 2023 | ||||
- - - - - - - Rupees in '000 - - - - - - - | ||||||||
Sales - net | 12 | 525,544 | 576,188 | 846,837 | 769,994 | |||
Cost of sales | 13 | (368,631) | (435,877) | (589,727) | (578,571) | |||
Gross profit | ||||||||
156,913 | 140,311 | 257,110 | 191,423 | |||||
Distribution cost | (7,465) | (9,422) | (15,575) | (17,686) | ||||
Administrative expenses | (39,265) | (39,753) | (76,497) | (77,793) | ||||
Other income | 6,271 | 11,542 | 8,460 | 13,046 | ||||
Other expenses | (10,345) | (4,848) | (10,345) | (4,848) | ||||
Profit from operations | ||||||||
106,109 | 97,830 | 163,153 | 104,142 | |||||
Finance cost | (20,490) | (21,896) | (46,625) | (50,847) | ||||
85,619 | 75,934 | 116,528 | 53,295 | |||||
Share of loss of an | ||||||||
Associated Company | 6 | (107,002) | (13,820) | (107,002) | (13,820) | |||
Impairment loss on investments in | ||||||||
an Associated Company | ||||||||
reversed | 6 | 189,704 | 337,143 | 189,704 | 337,143 | |||
82,702 | 323,323 | 82,702 | 323,323 | |||||
Profit before revenue | ||||||||
taxes and income taxes | 168,321 | 399,257 | 199,230 | 376,618 | ||||
Income tax | 14 | (39,006) | (27,863) | (48,811) | (30,273) | |||
Profit after taxation | 129,315 | 371,394 | 150,419 | 346,345 | ||||
Other comprehensive income | - | - | - | - | ||||
Total comprehensive income for | ||||||||
the period | 129,315 | 371,394 | 150,419 | 346,345 | ||||
- - - - - - - - - - - Rupees - - - - - - - - - - - | ||||||||
Earnings per share | 13.60 | 39.07 | 15.82 | 36.43 | ||||
The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.
Shahnaz Sajjad Ahmad | Abdul Rehman Qureshi | Kalim Aslam |
Chief Executive | Director | Chief Financial Officer |
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