UG
of Companies
HALF YEARLY ACCOUNTS 2024-2025
(UN - AUDITED)
UMER GROUP OF COMPANIES
BLESSED TEXTILES LIMITED
Vision
A leader company maintaining an excellent level of ethical and professional standards.
Mission Statement
To become an exceptional manufacturer of textile products global market.
Blessed Textiles Ltd | 2 |
Blessed Textiles Ltd | 3 |
Directors' Review
On behalf of the board of directors of Blessed Textiles Limited, I am pleased to present the unaudited condensed interim financial statements for the half year ended December 31, 2024.
Significant Financial Performance for the Half Year Ended December 31, 2024
The company experienced severe financial challenges during last year and a half that due to both micro and macro economic factors faced by the country. Nonetheless, we have taken strong measures to address these issues and we are reasonably certain that we will be able to revert into profitability in the upcoming periods.
The company posted a loss after tax amounting to PKR -148.236 million during the half year ended December 31, 2024, compared to a loss after tax of PKR -1,145.194 million corresponding period ending December 31, 2023. However, company is able to generate a profit of PKR 44.791 million during the 2nd quarter, October 2024 to December 2024.
Loss per share is PKR -23.05 for the half year ended December 31, 2024, compared to loss of PKR -178.05 in corresponding period ending December 31, 2023.
Break-up value of the share as on December 31, 2024 is PKR 1,233.57 (June 30, 2024: PKR 1,256.62).
The current ratio as on December 31, 2024 is PKR 1.38 (June 30, 2024: PKR 1.38).
Economic Outlook
The country observed some sort of stability in outgoing year where headline inflation stood at 4.1 percent which is lowest since April 2018, substantial reduction in policy rate that stood at 12 percent on January 2025 compared to 22 percent in June 2024, exchange rate marginally improved and stringent fiscal measures, caused improvement in external accounts. However, stability seems to be fragile as it's more reliant on temporary factors such as IMF support program, oversees remittance that increased by 33 percent on YoY to US$ 17.8 billion in 1HFY25, compared to $13.4 billion in 1HFY24, curtailment of imports and sharp decline in global commodity pricing.
In absence of structural reforms and measures to broaden the tax base, the country remains on the brink of economic vulnerabilities. The country GDP to tax ratio remained significantly low that edged at 8.77 percent in FY 2024, is lowest while compared to emerging and developing economies, as well as its regional peers. To compensate for revenue shortfalls, the government imposes high tax rates on existing business, which negatively impact existing businesses.
Despite of all constraints, the textile exports in the country witnessed an increase of 10 percent, totaling US$ 9.09 billion in the first half of the ongoing fiscal year 2024-25, compared to US$ 8.29 billion during the same period in 2023-24.
The government should create an environment to promote the export and industrial growth rather, taking detrimental measures that will adversely impact the country's export. The tariff hike by PKR 3,500 per MMBTU and imposition of levy on captive powers plants will be disastrous for the textile industry having 60 percent share in exports of the country.
Blessed Textiles Ltd | 4 |
Another, crucial factor that textile sector grappling is declining cotton production in the country, the Pakistan Cotton Ginners Association (PCGA) reveals, raw cotton arrivals registered a significant drop of over 34 per cent as of January 31, 2025, compared to the same period of the previous year.
Interestingly, despite this significant drop, ginning companies still have huge inventories of unsold cotton and cotton yarn. The key factor is high sales tax of 18 percent imposed on locally produced yarn and cotton whereas, imported cotton and yarn are exempt from the sales tax, which deters local production of cotton. The textile value chain fears that cotton production for the 2025-26 season may drastically fall if domestic cotton production remains unabsorbed.
Due to such flowed policies, it is anticipated that more than US$ 4 billion will be spent on the import of cotton, yarn, and edible oil creating a burden on national exchequer and depleting foreign exchange hence, a comprehensive plan to boost cotton production in 2025 is desperately needed in order to provide the textile sector access to reasonably priced raw materials.
Acknowledgement
The Board highly appreciates the contribution of employees, bankers, corporate regulators, stakeholders and other government authorities for their continuous support.
On behalf of the Board
_________________ | ____________________ |
Muhammad Shaheen | Mohammad Salim |
(Chief Executive Officer) | (Director) |
Dated: 26th February, 2025 |
Since the CEO is unavailable in Pakistan, the financial statements and director's review have been signed by two directors.
Blessed Textiles Ltd | 5 |
BLESSED TEXTILES LIMITED
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
Note | 31-Dec-24 | 30-Jun-24 | ||
Rupees | Rupees | |||
[Un-audited] | [Audited] | |||
EQUITY AND LIABILITIES | ||||
EQUITY | ||||
Authorized share capital | 65,000,000 | 65,000,000 | ||
Issued share capital | 64,320,000 | 64,320,000 | ||
General reserve | 7,000,000,000 | 7,000,000,000 | ||
Loans from directors and sponsors | 102,660,500 | 102,660,500 | ||
Retained earnings | 767,344,906 | 915,581,818 | ||
TOTAL EQUITY | 7,934,325,406 | 8,082,562,318 | ||
LIABILITIES | ||||
NON-CURRENT LIABILITIES | ||||
Long term borrowings | 6 | |||
3,393,495,840 | 3,713,703,359 | |||
Employees retirement benefits | 332,527,406 | 298,181,818 | ||
Deferred grant | 7 | 41,893,670 | 49,435,971 | |
3,767,916,916 | 4,061,321,148 | |||
CURRENT LIABILITIES | ||||
Trade and other payables | ||||
2,751,419,067 | 2,567,253,032 | |||
Short term borrowings | 6,010,072,761 | 6,968,160,949 | ||
Accrued interest/profit on borrowings | 652,501,596 | 733,600,052 | ||
Unclaimed dividend | 8,598,269 | 8,598,269 | ||
Current maturity of non-current liabilities | 668,058,255 | 611,278,986 | ||
10,090,649,948 | 10,888,891,288 | |||
TOTAL LIABILITIES | 13,858,566,864 | 14,950,212,436 | ||
CONTINGENCIES AND COMMITMENTS | 8 | |||
TOTAL EQUITY AND LIABILITIES | 21,792,892,270 | 23,032,774,754 |
The annexed notes from 1 to 17 form an integral part of these condensed interim finanical statements
Director | Chief Financial Officer | Director | ||
Blessed Textiles Ltd | 6 |
BLESSED TEXTILES LIMITED
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
Note | 31-Dec-24 | 30-Jun-24 |
Rupees | Rupees |
ASSETS | |
NON-CURRENT ASSETS | |
Property, plant and equipment | 9 |
Long term deposits |
CURRENT ASSETS
[Un-audited][Audited]
7,806,835,753 | 7,904,533,172 | |
66,292,882 | 61,040,989 | |
7,873,128,635 | 7,965,574,161 |
Stores and spares Stock in trade Trade receivables Short term deposits
Advances, deposits, prepayments and other receivables Tax refunds due from government
Bank balances
492,999,511
6,942,254,182
3,796,733,196
814,582,471
466,636,151
832,428,372
574,129,752
13,919,763,635
226,236,789
8,896,618,958
2,950,545,094
509,929,358
518,665,427
1,019,341,981
945,862,986
15,067,200,593
TOTAL ASSETS | 21,792,892,270 | 23,032,774,754 |
The annexed notes from 1 to 17 form an integral part of these condensed interim finanical statements
Director | Chief Financial Officer | Director | ||
Blessed Textiles Ltd | 7 |
BLESSED TEXTILES LIMITED
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS
FOR THE SIX-MONTH PERIOD ENDED 31 DECEMBER 2024
Six-month period ended | Three-month period ended | |||||||
Note | 31-Dec-24 | 31-Dec-23 | 31-Dec-24 | 31-Dec-23 | ||||
Rupees | Rupees | Rupees | Rupees | |||||
[Un-audited] | [Un-audited] | [Un-audited] | [Un-audited] | |||||
Revenue from contracts with customers | 15,988,840,461 | 15,381,772,409 | 7,750,951,177 | 7,465,007,194 | ||||
Cost of sales | (14,999,084,849) | (14,807,634,368) | (7,206,395,033) | (7,517,321,039) | ||||
Gross profit / (loss) | 989,755,612 | 574,138,041 | 544,556,144 | (52,313,845) | ||||
Other income | 82,448,012 | 41,169,086 | 69,730,188 | (3,511,096) | ||||
Selling and distribution expenses | ||||||||
(238,924,311) | (209,443,119) | (113,932,158) | (97,232,434) | |||||
Administrative expenses | (170,206,417) | (136,797,478) | (83,437,807) | (69,175,865) | ||||
(409,130,728) | (346,240,597) | (197,369,965) | (166,408,299) | |||||
Operating profit / (loss) | 663,072,896 | 269,066,530 | 416,916,367 | (222,233,240) | ||||
Finance costs | (627,096,610) | (1,187,691,779) | (287,291,913) | (532,526,402) | ||||
Profit/(loss) before statutory levies and income taxes | 35,976,286 | (918,625,249) | 129,624,454 | (754,759,642) | ||||
Provision for statutory levies | 10 | (184,213,198) | (226,568,459) | (84,833,936) | (109,076,848) | |||
Profit/(loss) before income taxes | (148,236,912) | (1,145,193,708) | 44,790,518 | (863,836,490) | ||||
Provision for income taxes | - | - | - | - | ||||
Profit/(loss) after income taxes | (148,236,912) | (1,145,193,708) | 44,790,518 | (863,836,490) | ||||
Basic earnings/(loss) per share | (23.05) | (178.05) | 6.96 | (134.30) |
The annexed notes from 1 to 17 form an integral part of these condensed interim finanical statements
Director | Chief Financial Officer | Director | |||
Blessed Textiles Ltd | 8 |
BLESSED TEXTILES LIMITED
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX-MONTH PERIOD ENDED 31 DECEMBER 2024
Six-month period ended | Three-month period ended | ||||
31-Dec-24 | 31-Dec-23 | 31-Dec-24 | 31-Dec-23 | ||
Rupees | Rupees | Rupees | Rupees | ||
[Un-audited] | [Un-audited] | [Un-audited] | [Un-audited] | ||
Profit after income taxes | (148,236,912) | (1,145,193,708) | 44,790,518 | (863,836,490) | |
Other comprehensive income: | |||||
Items that will not be reclassified | - | - | - | - | |
subsequently to profit or loss | |||||
Items that may be reclassified | - | - | - | - | |
subsequently to profit or loss | |||||
Other comprehensive income after income taxes | - | - | - | - | |
Total comprehensive income | (148,236,912) | (1,145,193,708) | 44,790,518 | (863,836,490) |
The annexed notes from 1 to 17 form an integral part of these condensed interim finanical statements
Director | Chief Financial Officer | Director | ||
Blessed Textiles Ltd | 9 |
BLESSED TEXTILES LIMITED
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE SIX-MONTH PERIOD ENDED 31 DECEMBER 2024
Share capital | Revenue | |||||
reserves | ||||||
Issued | General | Loan from | Retained | Total | ||
share capital | reserve | sponsors | earnings | equity | ||
Rupees | Rupees | Rupees | Rupees | Rupees | ||
Balance as at 01 July 2023 - [Audited] | 64,320,000 | 7,000,000,000 | 102,660,500 | 2,747,124,432 | 9,914,104,932 | |
Comprehensive income | ||||||
Loss after taxation | - | - | - | (1,145,193,708) | (1,145,193,708) | |
Other comprehensive loss | - | - | - | - | - | |
- | - | - | (1,145,193,708) | (1,145,193,708) | ||
Other transactions | - | - | - | - | - | |
Transaction with owners | ||||||
Final dividend @ 165% i.e. Rs. 16.5 per ordinary share | - | - | - | (106,128,000.00) | (106,128,000.00) | |
Balance as at 31 December 2023 - [Un-audited] | 64,320,000 | 7,000,000,000 | 102,660,500 | 1,495,802,724 | 8,662,783,224 | |
Balance as at 01 January 2024 - [Un-audited] | 64,320,000 | 7,000,000,000 | 102,660,500 | 1,495,802,724 | 8,662,783,224 | |
Comprehensive income | ||||||
Loss after taxation | - | - | - | (561,037,757) | (561,037,757) | |
Other comprehensive loss | - | - | - | (19,183,149) | (19,183,149) | |
- | - | - | (580,220,906) | (580,220,906) | ||
Other transactions | - | - | - | - | - | |
Balance as at 30 June 2024 - [Audited] | 64,320,000 | 7,000,000,000 | 102,660,500 | 915,581,818 | 8,082,562,318 | |
Balance as at 01 July 2024 | 64,320,000 | 7,000,000,000 | 102,660,500 | 915,581,818 | 8,082,562,318 | |
Comprehensive income | ||||||
Loss after taxation | - | - | - | (148,236,912) | (148,236,912) | |
Other comprehensive loss | - | - | - | - | - | |
- | - | - | (148,236,912) | (148,236,912) | ||
Other transactions | - | - | - | - | - | |
Balance as at 31 December 2024 - [Un-audited] | 64,320,000 | 7,000,000,000 | 102,660,500 | 767,344,906 | 7,934,325,406 |
The annexed notes from 1 to 17 form an integral part of these condensed interim finanical statements
Director | Chief Financial Officer | Director |
Blessed Textiles Ltd | 10 |
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