Crescent Cotton Mills LimitedPSX: CCM

Transmission of Quarterly Report for the Period Ended December 31, 2024

Mar 5, 2025 at 7:02 AM UTC · Issued by Crescent Cotton Mills Limited

CRESCENT COTTON MILLS

LIMITED

CRESCENT COTTON MILLS LIMITED

COMPANY PROFILE

CRESCENT COTTON MILLS LIMITED

DIRECTORS' REVIEW TO THE SHAREHOLDERS

Dear Members,

The directors of your company present to you the condensed interim financial information for the half year ended December 31, 2024. During the period under review, your company has earned a pre-tax profit of Rs. 57.333 Million from continuing operations as compared to pre-tax profit of Rs. 110.068 Million in the comparative period of last year.

Total sales revenue of the company for the half year stood at Rs. 3,193.167 Million, whereas, the turnover figures during the same period in year 2023 was Rs. 3,713.213 Million. The cost of sales in the period under review stood at 92.76% whereas up to December 31, 2023 it was around 91.44%.

During the first half of FY 2025, the company's profitability has declined as compared to the corresponding period. This is clearly a result of increased input costs, especially energy. Cost of borrowing remained high although we do see some easing of high interest rates with further reductions in the coming period. However, we were able to mitigate the higher finance rates through better financial management and by reducing inventories. But the challenges of the textile industry, specially spinning, remain very much in play and we expect that this will continue to affect our profitability. The exchange rate has remained stable. Business faced overall decline in volume due to depressed market conditions prevalent during the 1st Half of financial year 2025. However, prices of exports were comparatively better which supported gross margins to improve as against corresponding period's results.

In spite of the hardships being faced by the textile industry during the period under review, the management of the company is continuously striving hard for better results.

Future Outlook

Our industry is now faced with an insurmountable challenge in the form of yarn and fabric imports form regional countries at competitive prices. This has placed the local industry, faced with high prices of the energy mix, at a significant disadvantage. Currently we see this as a major factor along with higher financial charges leading to a curtailment of the spinning capacity in the country. Coupled with has been a drastic reduction in cotton arrivals till today. Once again, the textile industry will have to import their raw materials leading to a drain out of precious foreign exchange. However, recession in world textiles has placed us at an advantage as international cotton prices continue to remain depressed and many mills have managed to place orders at competitive prices. Pakistan's mainstay has always been its efficient and quality driven spinning sector. But due to reduced demand, a large portion of our capacity has shut down due to a variety of reasons.

The recent increase in taxation both on the corporate as well as individual taxpayers has led to a further exacerbation of the problems. While we understand the need for additional revenue, this measure should be equitable through all segments of society. Increase in capacity utilization and an increase in exports is the answer and solution. We are trying to remain competitive and try to maintain our existing profitability so as to maximize returns to our stakeholders. We feel that there must be long term solutions to provide us regionally competitive energy prices and the State Bank of Pakistan must move towards a friendly monetary policy to spur industrial growth which will earn export dollars as well as provide employment to an ever- growing population. Besides reduction in finance cost the efforts are underway to control input costs through efficient and improved utilization of capacities and with the early realization of stuck sales tax refunds positive impact on future performance is expected.

Acknowledgement

The Directors wish to express their gratitude to our valued clients, bankers and shareholders for the cooperation extended by them during the course of business activities. The Directors also wish to place on record their appreciation for the hard work and devoted services of the staff members and workers of the company.

		For and on behalf of
		the Board of Directors
FAISALABAD	NAVEED GULZAR	ABID MEHMOOD
February 28, 2025	DIRECTOR	CHIEF EXECUTIVE OFFICER
	3

CRESCENT COTTON MILLS LIMITED

2025 28

CRESCENT COTTON MILLS LIMITED

INDEPENDENT AUDITOR'S REVIEW REPORT

To the members of CRESCENT COTTON MILLS LIMITED

Report on review of Unconsolidated Condensed Interim Financial Statements

Introduction

We have reviewed the accompanying unconsolidated condensed interim statement of financial position of CRESCENT COTTON MILLS LIMITED as at 31 December 2024 and the related unconsolidated condensed interim statement of profit or loss, unconsolidated condensed interim statement of comprehensive income, unconsolidated condensed interim statement of changes in equity, and unconsolidated condensed interim statement of cash flows, and notes to the unconsolidated condensed interim financial statements for the half year then ended (here-in-after referred to as "unconsolidated condensed interim financial statements"). Management is responsible for the preparation and presentation of these unconsolidated condensed 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 unconsolidated condensed interim financial statements based on our review. The figures of the unconsolidated condensed interim statement of profit or loss and unconsolidated condensed interim statement of comprehensive income for the quarters ended 31 December 2024 and 31 December 2023 have not been reviewed and we do not express a conclusion on them as we are required to review only the cumulative figures for the half year ended 31 December 2024.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of unconsolidated condensed 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 International Standards 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 unconsolidated condensed 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 auditor's review report is Mubashar Mehmood.

RIAZ AHMAD & COMPANY	Faisalabad
February 28, 2025
Chartered Accountants	UDIN: RR202410158AZYXb5JMr
	5

CRESCENT COTTON MILLS LIMITED

UNCONSOLIDATED CONDENSED INTERIM STATEMENT

CRESCENT COTTON MILLS LIMITED

OF FINANCIAL POSITION AS AT 31 DECEMBER 2024

	UN-AUDITED	AUDITED
NOTE	31 December	30 June
2024	2024
EQUITY AND LIABILITIES	(RUPEES IN THOUSAND)

SHARE CAPITAL AND RESERVES
Authorized share capital
30 000 000 (30 June 2024: 30 000 000)	300,000	300,000
ordinary shares of Rupees 10 each
Issued, subscribed and paid up share capital	226,601	226,601
Reserves
Capital reserves
Premium on issue of shares reserve	5,496	5,496
Plant modernization reserve	12,000	12,000
Fair value reserve of investments at FVTOCI	62,401	69,931
Surplus on revaluation of freehold land and investment properties	4,926,217	4,926,217
	5,006,114	5,013,644
Revenue reserves	938,604	912,163
Total reserves	5,944,718	5,925,807
TOTAL EQUITY	6,171,319	6,152,408
LIABILITIES
NON-CURRENT LIABILITIES

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment Long term investments

Long term deposits Long term advances Deferred income tax asset

UN-AUDITED	AUDITED
31 December	30 June

NOTE 2024 2024 (RUPEES IN THOUSAND)

5	573,403	586,635
	5,968	7,369
	3,383	3,383
	45	-
	78,818	57,141
	661,617	654,528

Long term financing	3	13,504	20,044
Staff retirement gratuity		136,828	137,363
		150,332	157,407
CURRENT LIABILITIES
Trade and other payables		1,354,335	1,210,071
Unclaimed dividend		3,220	4,177
Accrued mark-up		14,072	24,391
Short term borrowings		754,362	698,287
Current portion of long term financing	3	11,373	11,373
		2,137,362	1,948,299
Non-current liabilities directly associated with assets	7
classified as held for sale	-	30,474
		2,137,362	1,978,773
TOTAL LIABILITIES
CONTINGENCIES AND COMMITMENTS	4	2,287,694	2,136,180
TOTAL EQUITY AND LIABILITIES		8,459,013	8,288,588

The annexed notes form an integral part of this unconsolidated condensed interim financial information.

ABID MEHMOOD

CHIEF EXECUTIVE OFFICER

CURRENT ASSETS
Stores, spare parts and loose tools		80,086	93,536
Stock-in-trade		436,115	556,583
Trade debts		664,340	490,311
Loans, advances and prepayments		61,170	65,335
Other receivables		818,006	855,546
Advance income tax and prepaid levy - net		130,558	140,556
Short term investments	6	312,794	138,811
Cash and bank balances		21,571	20,429
		2,524,640	2,361,107
Non-current assets held for sale	7	5,272,756	5,272,953
		7,797,396	7,634,060

TOTAL ASSETS

8,459,013

8,288,588

NAVEED GULZAR	SAMI ULLAH CH.
DIRECTOR	CHIEF FINANCIAL OFFICER
	7

CRESCENT COTTON MILLS LIMITED

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS

FOR THE HALF YEAR ENDED 31 DECEMBER 2024 (UN-AUDITED)

		Half year ended	Quarter ended
	NOTE	31 December	31 December	31 December	31 December
		2024	2023	2024	2023
CONTINUING OPERATIONS :			(RUPEES IN THOUSAND)

REVENUE FROM CONTRACTS		3,193,167	3,376,923	1,648,892	1,723,114
WITH CUSTOMERS	8
COST OF SALES	9	(2,962,171)	(3,087,861)	(1,539,447)	(1,591,441)
GROSS PROFIT		230,996	289,062	109,445	131,673
DISTRIBUTION COST		(36,442)	(34,172)	(16,783)	(17,171)
ADMINISTRATIVE EXPENSES		(105,607)	(112,554)	(56,730)	(56,537)
OTHER EXPENSES		(16,882)	(17,670)	(15,374)	(13,558)
OTHER INCOME		28,970	26,158	17,258	13,329
FINANCE COST		(43,702)	(40,756)	(20,159)	(24,602)
PROFIT BEFORE TAXATION AND LEVY	57,333	110,068	17,657	33,134
LEVY		(28,129)	(39,543)	(17,716)	(15,323)
PROFIT / (LOSS) BEFORE TAXATION	29,204	70,525	(59)	17,811
TAXATION		9,890	3,473	18,780	1,265
PROFIT AFTER TAXATION FROM		39,094	73,998	18,721	19,076
CONTINUING OPERATIONS
DISCONTINUED OPERATION :
(LOSS) / PROFIT AFTER TAXATION FROM	(13,262)	11,331	(4,240)	(1,520)
DISCONTINUED OPERATION
PROFIT AFTER TAXATION		25,832	85,329	14,481	17,556
EARNINGS PER SHARE - BASIC AND DILUTED	1.73	3.27	0.83	0.84
FROM CONTINUING OPERATIONS (RUPEES)
(LOSS) / EARNINGS PER SHARE - BASIC AND DILUTED
FROM DISCONTINUED OPERATION (RUPEES)	(0.59)	0.50	(0.19)	(0.07)

The annexed notes form an integral part of this unconsolidated condensed interim financial information.

ABID MEHMOOD	NAVEED GULZAR	SAMI ULLAH CH.
CHIEF EXECUTIVE OFFICER	DIRECTOR	CHIEF FINANCIAL OFFICER
	8

CRESCENT COTTON MILLS LIMITED

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED 31 DECEMBER 2022 (UN-AUDITED)

	Half year ended	Quarter ended
	31 December 31 December 31 December 31 December
	2024	2023	2024	2023
		(RUPEES IN THOUSAND)
PROFIT AFTER TAXATION	25,832	85,329	14,481	17,556

OTHER COMPREHENSIVE (LOSS) / INCOME

Items that will not be reclassified subsequently to profit or loss:

Fair value adjustment arising on
remeasurement of investments at fair value
through other comprehensive income	(6,921)	14,552	(10,577)	19,068
Deferred income tax relating to
investments at fair value through	-	-	-	-
other comprehensive income
Items that may be reclassified	-	-	-	-
subsequently to profit or loss
Other comprehensive (loss) / income for the period	(6,921)	14,552	(10,577)	19,068
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	18,911	99,881	3,904	36,624

The annexed notes form an integral part of this unconsolidated condensed interim financial information.

ABID MEHMOOD	NAVEED GULZAR	SAMI ULLAH CH.
CHIEF EXECUTIVE OFFICER	DIRECTOR	CHIEF FINANCIAL OFFICER
	9

CRESCENT COTTON MILLS LIMITED

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS

FOR THE HALF YEAR ENDED 31 DECEMBER 2024 (UN-AUDITED)

NOTE

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from / (used in) operations

Finance cost paid

Staff retirement gratuity paid

Income tax and levy paid

Net (increase) / decrease in long term advances

Net cash flows from / (used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditure on property, plant and equipment Proceeds from sale of property, plant and equipment Proceeds from sale of non-current asset held for sale Proceeds from sale of investment

Investment made - net

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of financing

Short term borrowings - net

Dividend paid

Net cash from financing activities

NET INCREASE / (DECREASE) IN CASH AND

CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS AT THE

BEGINNING OF THE PERIOD

CASH AND CASH EQUIVALENTS AT THE

END OF THE PERIOD

31 December	31 December
2024	2023

(RUPEES IN THOUSAND)

269,543 (191,839)

(57,579) (51,727)

(26,349) (9,707)

(29,918) (25,430)

155,652 (278,610)

(2,859) (22,897)

713-

(174,409)-

(175,741) (22,897)

(33,887) (33,490)

56,075 328,973

21,231 295,483

1,142 (6,024)

20,429 49,638

21,571 43,614

The annexed notes form an integral part of this unconsolidated condensed interim financial information.

ABID MEHMOOD	NAVEED GULZAR	SAMI ULLAH CH.
CHIEF EXECUTIVE OFFICER	DIRECTOR	CHIEF FINANCIAL OFFICER
10	11

CRESCENT COTTON MILLS LIMITED

SELECTED NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2024 (UN-AUDITED)

1. THE COMPANY AND ITS OPERATIONS

Crescent Cotton Mills Limited (the Company) is a public limited company incorporated in March 1959 in Pakistan under the Companies Act, 1913 (Now Companies Act, 2017) and listed on Pakistan Stock Exchange Limited on 30 November 1965. The Company is engaged in the business of manufacturing and sale of yarn, home textile and hosiery items along with buying, selling and otherwise dealing in cloth and made-ups. The Company's registered office is situated at New Lahore Road, Nishatabad, Faisalabad, Punjab.

2. BASIS OF PREPARATION

2.1 Statement of compliance

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

International Accounting Standard (IAS) 34 'Interim Financial Reporting', issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and
Provisions of and directives issued under the Companies Act, 2017.

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

These unconsolidated condensed interim financial statements do not include all the information and disclosures required for unconsolidated annual financial statements and should be read in conjunction with the unconsolidated annual audited financial statements of the Company for the year ended 30 June 2024. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's financial position and performance since the last unconsolidated annual audited financial statements.
These unconsolidated condensed interim financial statements are un-audited but subject to limited scope review by auditors and are being submitted to the shareholders as required under section 237 of the Companies Act, 2017 and Listed Companies (Code of Corporate Governance) Regulations, 2019.
The figures of the unconsolidated condensed interim statements of profit or loss and condensed interim statement of comprehensive income for the quarters ended 31 December 2024 and 31 December 2023 included in these unconsolidated condensed interim financial statements were neither subject to review nor audit.
Material accounting policy information

The material accounting policy information and methods of computations adopted for the preparation of these unconsolidated condensed interim financial statements are the same as applied in the preparation of the unconsolidated annual audited financial statements of the Company for the year ended 30 June 2024.

CRESCENT COTTON MILLS LIMITED

2.6 Critical accounting estimates and judgments

The preparation of these unconsolidated condensed interim financial statements in conformity with approved accounting and reporting standards requires management to make certain judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The significant judgements and estimates made by the management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that were applied to the unconsolidated annual audited financial statements for the year ended 30 June 2024.

UN-AUDITED	AUDITED
31 December	30 June

2024 2024

3.	LONG TERM FINANCING	(RUPEES IN THOUSAND)

	Financing from banking company - secured
	Opening balance	31,417	87,914
	Less: Repaid during the period / year	6,540	56,497
		24,877	31,417
	Less: Current portion shown under current liabilities	11,373	11,373
		13,504	20,044

4. CONTINGENCIES AND COMMITMENTS

Contingencies:

The status of contingencies as disclosed in unconsolidated annual audited financial statements for the year ended 30 June 2024 are same as at 31 December 2024.

Commitments:
1. 'There was no commitment for capital expenditure as at 31 December 2024 (30 June 2024:

Rupees Nil).

'Letters of credit other than for capital expenditure are of Rupees 28.722 million (30 June 2024: Rupees 148.964 million).

CRESCENT COTTON MILLS LIMITED

UN-AUDITED	AUDITED
31 December	30 June

2024 2024

CRESCENT COTTON MILLS LIMITED

7. NON-CURRENT ASSETS HELD FOR SALE

UN-AUDITED	AUDITED
31 December	30 June

2024 2024

5. PROPERTY, PLANT AND EQUIPMENT Operating fixed assets (Note 5.1) Capital work-in-progress (Note 5.2)

5.1 Operating fixed assets Opening book value

Add: Cost of additions during the period / year (Note 5.1.1)

Less :

Book value of deletions during the period / year (Note 5.1.2) Classified as non-current assets held for sale during the period / year Depreciation charged during the period / year

(RUPEES IN THOUSAND)

572,833 586,635

570-

573,403 586,635

586,635 5,619,469

2,289 23,057

588,924 5,642,526

439	5,009
-	4,980,690
15,652	70,192
16,091	5,055,891

The non-current assets classified as held for sale in their respective categories are summarized hereunder :

Non-currentassets classified as held for sale
Property, plant and equipment - Head Office (Note 7.1) Property, plant and equipment - Spinning Unit 4 (Note 7.2)
Non-currentliabilities directly associated with assets classified as held for sale

Non-current liabilities - Spinning Unit 4 (Note 7.3)

7.1 Property, plant and equipment - Head Office

Freehold land Building Investment properties

(RUPEES IN THOUSAND)

4,795,120 4,795,120

477,636 477,833

5,272,756 5,272,953

30,474

4,501,907 4,501,907

950950

292,263 292,263

4,795,120 4,795,120

Cost of additions during the period / year
Stand-by equipment Vehicles
Book vale of deletions during the period / year
Stand-by equipment Vehicles

572,833 586,635

22,897

2,289160

2,289 23,057

5,009
439-

7.1.1 Property, plant and equipment related to Head Office has been presented as held for sale following the approval of the management of the Company and shareholders in EOGM held on 13 March 2024 regarding the disposal of land and building along with investment properties related to the land of Head Office of the Company situated at New Lahore Road, Nishatabad, Faisalabad, Punjab. The Company is in process to take all necessary steps including negotiation as may be necessary for the completion of the transaction uptill the end of current financial year.

7.2 Property, plant and equipment - Spinning Unit 4

Freehold land	118,020	118,020
Buildings and roads	72,076	72,076
Plant and machinery	211,489	211,489
Stand-by equipments	51,610	51,610
Electric installations	18,755	18,755

		439	5,009
5.1.3	Capital work-in progress
	Buildings and roads	570	-
6.	SHORT TERM INVESTMENTS
	Equity investments at Fair Value Through Other Comprehensive Income (FVTOCI)	132,682	138,811
	Investment in mutual fund carried at Fair Value Through Profit or Loss (FVTPL)	180,112	-
		312,794	138,811

Tools and equipments	3,567	3,567
Furniture and fixtures	743	743
Vehicles (Note 7.2.2)	1,352	1,549
Office equipment	22	22
Service equipment	2	2
	477,636	477,833

7.2.1 Following the approval of the management of the Company and shareholders in EOGM held on 03 June 2024 regarding the disposal of plant and machinery and related equipment of Spinning Unit 4 situated at 45-Km Lahore Multan Road, Dina Nath, Phool Nagar, Tehsil Pattoki, District Kasur, Punjab. The Company has discontinued its operations of the Spinning Unit 4. On 01 October 2024, the Company entered into an agreement with Messrs Sultan Spinning Industries (Private) Limited (SSIPL) in which whole of the assets mentioned above except vehicles will be transferred to SSIPL against total consideration of Rupees 550 million. Uptill 31 December 2024, Rupees 242.500 million have been received from SSIPL. The transaction will be completed uptill 10 March 2025 after receiving the total amount from SSIPL.

CRESCENT COTTON MILLS LIMITED

7.2.2 One of the vehicle has been sold during the period against the consideration of Rupees 0.205 million.

CRESCENT COTTON MILLS LIMITED

8. REVENUE FROM CONTRACTS WITH CUSTOMERS	(Un-audited)
Half year ended
Quarter ended

7.3 Non-current liabilities directly associated with assets classified as held for sale

Long term financing (Note 7.3.1)

Staff retirement gratuity (Note 7.3.2)

7.3.1 The long term financing was completely repaid on 13 August 2024.

UN-AUDITED	AUDITED
31 December	30 June

2024 2024 (RUPEES IN THOUSAND)

27,347
3,127
30,474

	31 December 31 December	31 December 31 December
8.1 Product wise segregation	2024	2023	2024	2023
	(RUPEES IN THOUSAND)

Yarn / others	2,819,455	2,750,669	1,497,996	1,423,955
Hosiery	58,955	93,148	37,385	23,586
Home textiles	298,002	513,904	106,224	263,595
Waste	16,755	19,202	7,287	11,978
8.2 Geographical location wise segregation	3,193,167	3,376,923	1,648,892	1,723,114

Pakistan	2,768,296	2,295,493	1,458,208	1,210,356

7.3.2 Whole of the staff retirement gratuity of the related employees was paid during the period ended 31 December 2024.

Half year ended		(Un-audited)
Quarter ended
31 December 31 December 31 December 31 December
2024	2023	2024	2023

Yarn sale to customers having Duty and
Tax Remission for Exports (DTRE)	-	484,142	-	230,778
Africa	173,654	60,458	147,948	35,470
Europe	150,371	453,446	9,661	228,125
North America	100,846	83,384	33,075	18,385
	3,193,167	3,376,923	1,648,892	1,723,114

(c) Analysis of result of discontinued operation
REVENUE FROM CONTRACTS WITH CUSTOMERS	-
COST OF SALES	-
GROSS PROFIT	-
DISTRIBUTION COST	-
ADMINISTRATIVE EXPENSES	(9,712)
OTHER EXPENSES	-
OTHER INCOME	8
FINANCE COST	(3,558)
	(13,262)
(LOSS) / PROFIT BEFORE TAXATION AND LEVY	(13,262)
LEVY	-
(LOSS) / PROFIT BEFORE TAXATION	(13,262)
TAXATION	-
(LOSS) / PROFIT AFTER TAXATION
FROM DISCONTINUED OPERATION	(13,262)

Analysis of the cash flows of discontinued operation
Cash outflows from operating activities Cash inflows from investing activities Cash outflows from financing activities

(RUPEES IN THOUSAND)
336,290	-	159,204
(283,829)	-	(145,339)
52,461	-	13,865
(2,751)	-	(70)
(9,384)	(3,606)	(1,346)
(2,174)	-	(1,444)
1,690	-	1,690
(24,868)	(634)	(12,786)
(37,487)	(4,240)	(13,956)
14,974	(4,240)	(91)
(3,993)	-	(1,779)
10,981	(4,240)	(1,870)
350	-	350
11,331	(4,240)	(1,520)
(Un-audited)

Half year ended

31 December 2024

(RUPEES IN THOUSAND)

(16,397)

205

(27,347)

8.3 Revenue is recognized at point in time as per terms and conditions underlying contracts with customers.

9. COST OF SALES

Raw materials consumed	1,792,370	1,925,931	914,694	1,002,493
Salaries, wages and other benefits	178,974	130,914	92,525	63,022
Stores, spare parts and loose tools consumed	97,013	115,793	46,485	59,302
Fuel and power	698,093	654,087	328,192	345,173
Outside weaving / printing / conversion charges 78,601	136,641	25,729	75,936
Other manufacturing overheads	17,679	16,223	9,163	7,666
Insurance	3,624	4,071	1,764	1,872
Repair and maintenance	1,411	3,039	953	666
Depreciation	14,730	15,029	7,528	7,496
Work-in-process	2,882,495	3,001,728	1,427,033	1,563,626

Opening stock	112,487	45,226	109,925	57,667
Closing stock	(129,582)	(67,394)	(129,582)	(67,394)
Cost of goods manufactured	(17,095)	(22,168)	(19,657)	(9,727)
2,865,400	2,979,560	1,407,376	1,553,899
Finished goods
Opening stock	219,676	289,941	271,649	236,659
Closing stock	(167,873)	(199,117)	(167,873)	(199,117)
	51,803	90,824	103,776	37,542
	2,917,203	3,070,384	1,511,152	1,591,441
Cost of goods purchased for resale	44,968	17,477	28,295	-
	2,962,171	3,087,861	1,539,447	1,591,441
	17

CRESCENT COTTON MILLS LIMITED

		UN-AUDITED
		31 December	31 December
		2024	2023
		(RUPEES IN THOUSAND)
7.	CASH GENERATED FROM / (USED IN) OPERATIONS
	Profit before taxation and levy	44,071	125,042

	Adjustments for non-cash charges and other items:
	Depreciation	15,652	36,338
	22,688	14,250
	Provision for staff retirement gratuity
	47,260	65,624
	Finance cost
	(5,704)	-
	Un-realized gain on remeasurement of investment at FVTPL
	(274)	-
	Gain on sale of property, plant and equipment
	(8)	-
	Gain on sale of non-current asset held for sale
	1,390	1,312
	Exchange loss
	2,870	1,859
	Provision for doubtful loans and advances
	1,152	2,150
	Allowance for expected credit losses - net
	140,446	(438,414)
	Working capital changes (Note 10.1)

		269,543	(191,839)
7.1	Working capital changes
	Decrease / (increase) in current assets
	Stores, spare parts and loose tools	13,450	(23,932)
	120,468	(531,747)
	Stock-in-trade
	(176,571)	(127,276)
	Trade debts
	1,295	(104,083)
	Loans, advances and prepayments
	37,540	(83,345)
	Other receivables
	(3,818)	(870,383)

	Increase in trade and other payables	144,264	431,969

		140,446	(438,414)

CRESCENT COTTON MILLS LIMITED

11. TRANSACTIONS WITH RELATED PARTIES

'The related parties comprise subsidiary company, associated companies, other related parties and key management personnel. The Company in the normal course of business carries out transactions with various related parties. Detail of transactions and balances with related parties is as follows:

				(Un-audited)
	Half year ended	Quarter ended
31 December 31 December 31 December 31 December
i) Transactions	2024	2023	2024	2023
	(RUPEES IN THOUSAND)

Subsidiary company
Purchase of goods -	47,829	143,206	37,827	84,813
Associated companies
Insurance expense -	359	15,287	-	4,739
Expenses paid on behalf of associated company -	-	309	-	-
Other related parties
Loans received from / (repaid to) Chief
Executive Officer, directors and executives - net -	6,208	4,717	3,495	(3,591)
Remuneration and meeting fee paid to Chief
Executive Officer, directors and executives -	47,282	42,419	23,761	22,376
			(Un-audited)	(Audited)
			31 December	30 June
			2024	2024
ii) Period end balances			(RUPEES IN THOUSAND)

Subsidiary company
Trade and other payables			8,533	4,975
Associated companies
Trade and other payables			1,204	2,720
Long term investments			1,076	1,271
Short term deposit and other receivables			363	363
Other related parties
Short term borrowings			316,606	310,398

12. FINANCIAL RISK MANAGEMENT

The Company's financial risk management objectives and policies are consistent with those disclosed in the unconsolidated annual audited financial statements of the Company for the year ended 30 June 2024.

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