Transmission of Quarterly Report for the Period Ended 30.09.2024

D.M. TEXTILE MILLS LIMITED

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D.M. TEXTILE MILLS LIMITED

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2024

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ASSETS

NON-CURRENT ASSETS

517,888,157

106,617,053

624,505,210

655,029,500

5,131,993

120,880,745

3,987,000

144,947

558,365

125,571,057

130,703,050

-

785,732,550

517,748,170

114,557,988

632,306,158

662,830,448

5,131,993

114,632,205

1,100,000

144,947

2,479,133

118,356,285

123,488,278

-

786,318,726

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06

The annexed notes form an integral part of these condensed interim financial statements.

07

D.M. TEXTILE MILLS LIMITED

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS

FOR THE QUARTER ENDED 30 SEPTEMBER 2024

D.M. TEXTILE MILLS LIMITED

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

FOR THE QUARTER ENDED 30 SEPTEMBER 2024

(Un-audited)

30 September

2023

Rupees

(5,642,313)

-

-

-

(5,642,313)

The annexed notes form an integral part of these condensed interim financial statements.

08

The annexed notes form an integral part of these condensed interim financial statements.

09

D.M. TEXTILE MILLS LIMITED

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE QUARTER ENDED 30 SEPTEMBER 2024

D.M. TEXTILE MILLS LIMITED

CONDENSED INTERIM STATEMENT OF CASH FLOWS FOR THE QUARTER ENDED 30 SEPTEMBER 2024

SHARE

CAPITAL

TOTAL EQUITY

Balance as at 30 June 2023 - audited

Incremental depreciation transferred from surplus on revaluation of property, plant and equipment to unappropriated profit - net of

Fair value reserve transferred on disposal of investment property

Profit for the year

Other comprehensive income/(Loss) for the year

Total comprehensive income/(Loss) for the year

Balance as at 30 June 2024 - audited

Incremental depreciation transferred from surplus on revaluation of property, plant and equipment to accumulated loss - net of deferred

Profit/(Loss) for the the period

Other comprehensive income for the period

Balance as at 30 September 2024 - un-audited

30,524,290

-

-

-

-

-

30,524,290

-

-

-

-

30,524,290

268,612,032

(597,860)

-

-

-

-

268,014,172

139,987

-

-

-

268,154,159

308,408,697

-

(58,674,699)

-

-

-

249,733,998

-

-

-

-

249,733,998

40,642,162

597,860

58,674,699

14,853,558

(210,291)

14,643,267

114,557,988

(139,987)

(7,800,948)

-

(7,800,948)

106,617,053

648,187,181

-

-

14,853,558

(210,291)

14,643,267

662,830,448

-

(7,800,948)

-

(7,800,948)

655,029,500

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

The annexed notes form an integral part of these condensed interim financial statements.

10

The annexed notes form an integral part of these condensed interim financial statements.

11

D.M. TEXTILE MILLS LIMITED

D.M. TEXTILE MILLS LIMITED

SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL

STATEMENTS FOR THE FIRST QUARTER ENDED

30 SEPTEMBER 2024

1 THE COMPANY AND ITS OPERATIONS

1. D.M. Textile Mills Limited is a public limited company incorporated in Pakistan under the Companies Act, 1913 (now the Companies Act, 2017) and listed on Pakistan Stock Exchange Limited (PSX). The registered office is situated at Westridge, IndustrialArea,Rawalpindi. The principal activityof the Company is manufacturing of yarn and cloth, processing of the cloth and trade of textile products.
   PSX vide Notice No. PSX/N-1222dated 02 November 2020 placed the Company on defaulters' segment with effect from 03 November2020 due to non-compliance with PSX Regulations.
2. Geographical locateion and addresses of all business units are as follows:

2 BASIS OF PREPARATION

2.1 These 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:

• InternationalAccounting Standard (IAS) 34, Interim Financial Reporting, issued by the InternationalAccounting 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.

2.2 These condensed interim financial statements do not include all the information and disclosures required in annual financial statements and should be read in conjunctionwith the annualaudited financialstatements of the Company for the year ended30 June 2024. These condensed interim financial statements are un-audited,however, have been subjected to limited scope review by the auditors and are being submitted to the shareholders as required by the Listed Companies (Code of Corporate Governance) Regulations, 2019 and Section 237 of the Companies Act, 2017.

4 CAPITAL RESERVE - SURPLUS ON REVALUATION OF PROPERTY, PLANT AND EQUIPMENT AND INVESTMENT PROPERTIES - NET OF DEFERRED INCOME TAX

• Property, plant and equipment
  Opening balance
  Surplus on revaluation of property, plant and equipment Related deferred income tax liability
  Transferred to unappropriated profit / (accumulated loss) in respect of incremental depreciation charged during the period / year
  Related deferred income tax liability
  Balance as at 30 June
• Investment properties Revaluation surplus
  Fair value reserve realized on disposal Related deferred income tax liability

1. TAXATION - NET
   Opening balance as at 01 July Add: Provision for the period / year
   Less: Tax deducted at source / paid during the period / year
2. CONTINGENCIES AND COMMITMENTS

6.1 Contingencies

(Un-audited)

30 September 2024

Rupees

268,014,172

-

-

-

197,165

(57,178)

139,987

268,154,159

249,733,998

-

-

249,733,998

517,888,157

(Un-audited)

30 September 2024

Rupees

2,479,133

-

(1,920,768)

558,365

(Audited)

30 June 2024

Rupees

268,612,032

-

-

-

(842,056)

244,196

(597,860)

268,014,172

313,858,182

(58,674,699)

(5,449,485)

249,733,998

517,748,170

(Audited)

30 June

2024 Rupees

6,988,489

3,059,888

(7,569,244)

2,479,133

3 ACCOUNTING POLICIES

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

3.1 Critical accounting estimates and judgments

The preparation of these condensed interim financial statements in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgmentin the process of applyingthe Company's accounting policies. Estimates and judgments are continuallyevaluatedand are based on historical experience and other factors, including expectationsof future events that are believed to be reasonable under the circumstances.

During preparationof these condensed interim financial statements, the significant judgments made by the management in applyingthe Company's accounting policies and the key sources of estimation and uncertainty were the same as those applied in the preceding audited annual published financial statements of the Company for the year ended 30 June 2024.

12

There is no significant change in the status of contingencies,as disclosed in the preceding audited annualpublished financial statements of the Company for the year ended 30 June 2024.

7 ADVANCE AGAINST PROPERTY

An amount of Rupees 51.150 million was given by the Company as advance against purchase of property. The property could not be transferred in the Company's name due to the want of completion of legal formalities. With reference to this advance, the Director (Enforcement)of Securities and ExchangeCommission of Pakistan (SECP) vide his Order dated 29 November 2007 imposed a penaltyof Rupees 100,000 on each of the director except one (nominee NIT) of the Company for contravention of section 196(2j) of the repealed Companies Ordinance, 1984. Further directions were given under section 473 for transferring the property in the name of the Company within thirty days from the Order date. The Chief Executive Officer (C.E.O) of the Company filed a revision application with the Appellate Bench of SECP under section 484 of the repealed Companies Ordinance, 1984 against this Order on 10 January 2008, where the Appellate Bench decided not to interfere with the impugned order.

The C.E.O also filed an appeal under section 485 of the repealed Companies Ordinance, 1984 read with section 34 of the Securities and ExchangeCommission of Pakistan Act, 1997 before the Lahore High Court, Rawalpindi Bench whereby stay order was granted to suspend the operation of above said impugned order. The Lahore High Court, Rawalpindi Bench, in its interim order dated 06 February 2015, granted adjournmentwith the directions not to transfer / alienate the property / undertaking of the Company meanwhile. Further,thecourt, through its order dated 09 December 2015 transferred the case to Islamabad High Court (IHC), Islamabad.

The Board of Directors in the meeting held on 23 April 2014, after getting valuation at forced sale value of Rupees 72.007 million of said property from NAKMS Associates (Private) Limited, resolved that the right in property along with fixtures and fittings to be offered to the C.E.O on the basis of "first right of refusal" at the fixed floor price of Rupees 75.00 million. The Board furtherdecided that an amount of Rupees 48.570 million be adjusted from interest free loan given by C.E.O and his close family members to the Company and the balance amount to be paid in three equal annualinstalments of Rupees 8.810 million commencing from 01 May 2015. Accordingly, agreement was made between the Company and the C.E.O under the directions given by the Board of Directors of the Company.

13

D.M. TEXTILE MILLS LIMITED

However, the C.E.O in the case proceedings before the Islamabad High Court (IHC), Islamabad on 03 May 2016 has submitted to transfer the property in the name of the Company within sixty days there from. The C.E.O filed a petition before the Islamabad High Court to seek relief on the grounds that the said property has already been attached in the cases titled The Bank of Punjab versus Bilal Fibers Limited and The Bank of Punjab versus Bilal Textiles (Private) Limited wherein the C.E.O was a guarantor. Meanwhile, the Board of directors and the shareholders in their meetings held on 09 October 2016 and 31 October 2016 respectively resolved to reverse the transaction of sale of

D.M. TEXTILE MILLS LIMITED

10 TRANSACTIONS WITH RELATED PARTIES

The related parties comprise of associated undertakings and key management personnel. The Company in the normal course of business carries out transactions with various related parties. Detail of transactions with related parties are as follows:

QUARTER ENDED

property to C.E.O, subject to completion of legal formalities and in accordance with rules / law / procedures.

The Company filed a suit before the court of Civil Judge 1st Class (West), Islamabad dated 17 October 2017 against the C.E.O. while making Securities and Exchange Commission of Pakistan and Capital Development Authorityparties to the case for directions to transfer the property in the name of the Company. Civil Judge 1st Class (West), Islamabad,vide order dated 28 July 2021 accepted the Company's appeal and directed to submit evidence and vide order dated 13 July 2023 partially decreed the case of the Company to the extent of recover of remaining amount from the C.E.O. The Company has filed an appeal on 28 September 2023 against the said order before Islamabad High Court (IHC). On 25 October 2023 IHC,Islamabad, suspended the operations of the impunged judgementand decree dated 13 July 2023 until the next date of hearing. The matter is pending adjudiction.

The IHC vide its order dated 16 November 2017, reduced the penalty from Rupees 100,000 to Rupees 50,000 to be paid by each director of the Company within the period of thirty days.

The Company also filed an appeal before the Lahore High Court, Lahore Bench in May 2018 for detachment of the property, so that property can be transferred in the name of the Company, which is pending adjudication.

The Securities and Exchange Commission of Pakistan filed an appeal before the IHC,Islamabad, dated 13 September 2018 for execution of IHC decision dated 16 November 2017 to appoint statutory auditors to conduct a special audit to calculate the amount of profit which could have been earned on the amount of Rupees 51.150 million, if invested with any scheduled bank on daily product basis in the relevant period, and further requested the IHC to send notice to Lahore High Court, Lahore, for release of the property. The matter is pending

Remuneration to Chief Executive Officer and directors

10 Mian Habib Ullah, Chairman Balance as at 01 july Received during the Period Paid during the Period Period end balance

10 Mrs Riffat Habib Balance as at 01 july Received during the Period Paid during the Period Period end balance

30 September 2024

Rupees

1,719,000

-

500,000

-

500,000

-

500,000

-

500,000

30 September 2023

Rupees

1,689,000

-

-

-

-

-

-

-

-

adjudication.

10 Sami Ullah, Chief Exective officer

The Bank of Punjab filed an appeal before the Islamabad High Court, Islamabad to set-aside orders dated 03 May 2016 and 16 November 2017. The matter is pending adjudication.

On 24 May 2022, the Company filed an application before Islamabad High Court, Islamabad praying that The Bank of Punjab and Bilal Fibers Limited and Bilal Textiles (Private) Limited have entered into a settlement agreements, hence, the said property may please be declared as lawful property of D.M. Textile Mills Limited. The last hearing was held on 25 January 2024 and the matter is pending adjudication.

8 DUE FROM RELATED PARTY

It represents receivable from C.E.O against sale of property as more fullyexplained in Note 7. The maximum amountdue from C.E.O at the end of any month during the year was Rupees 17.62 million (June 2024: Rupees 17.62 million) and is outstanding since 2016.

Balance as at 01 july

Received during the Period

Paid during the Period

Period end balance

10 Sam Corp (Private) Limited, associated company Balance as at 01 july

Received during the Period Paid during the Period Period end balance

-

1,437,000

-

1,437,000

1,100,000

-

-

1,100,000

-

6,321,308

180,887

(20,000)

6,482,195

700,000

-

-

700,000

9,248,136

NOTE

450,000

-

450,000

700,000

-

9,948,136

9 CASH (USED IN) / GENERATED FROM OPERATIONS

(LOSS) / PROFIT BEFORE LEVIES AND INCOME TAX Adjustments for non-cash charges and other items: Depreciation

Provision for gratuity Return on investment Finance cost Working capital changes

9.1 Working capital changes

Increase / (decrease) in current assets: Advances

Other receivables

Increase / (decrease) in current liabilities Trade and other payables

Due to related parties

11 RECOGNIZED FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS

(i) Fair value hierarchy

Judgements and estimates are made in determining the fair values of the financial instrumentsthat are recognized and measured at fair value in these financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company classify its financial instrumentsinto the following three levels. However, as at the reporting date, the Company has no such type of financial instruments which are required to be grouped into these levels. These levels are explained as under:

Level 1: The fair value of financial instrumentstraded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Company is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuationtechniqueswhichmaximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrumentare observable, the instrument is included in level 2.

Level 3: Ifone or more of the significant inputs is not based on observable market data, the instrumentis included in level 3. This is the case for unlisted equity securities.

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D.M. TEXTILE MILLS LIMITED

12 RECOGNIZED FAIR VALUE MEASUREMENTS - NON-FINANCIAL ASSETS

(i) Fair value hierarchy

Judgments and estimates are made in determining the fair value of non-financial assets that are recognized and measured at fair value in these financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its non-financial assets into the following three levels.

D.M. TEXTILE MILLS LIMITED

Valuation processes

The Company engages external, independent and qualified valuers to determine the fair value of the Companys property plant and equipment and investment properties after regular intervals. The fair values of property plant and equipment and investmentproperties, have been determined by Danish Enterprises and Construction (the valuer)as at 30 June 2023 and 30 June 2024 respectively.

At 30 September 2024

Freehold land

Non factory buildings

Electric installations

Furniture, fixtures and office equipment

Vehicles

Investment properties - land and building

Total non-financial assets

At 30 June 2024

Freehold land

Non factory buildings

Electric installations

Furniture, fixtures and office equipment

Vehicles

Investment properties - land and building

Total non-financial assets

Changes in fair values are analyzed at each reporting date during the annual valuation discussion between the Chief Financial Officer and the valuers. As part of this discussion the team presents a report that explains the reason for the fair value movements.

1. DATE OF AUTHORIZATION FOR ISSUE
   These condensed interim financial statements were approved by the Board of Directors and authorized for issue on 28 October , 2024.
2. CORRESPONDING FIGURES
   No significant reclassification / rearrangement of corresponding figures have been made in these financial statements.
3. GENERAL
   Figures have been rounded off to the nearest Rupee.

The Companys policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

There were no transfers between levels 1 and 2 for recurring fair value measurements during the period. Further, there was no transfer in and out of level 3 measurements.

(ii) Valuation techniques used to determine level 2 fair values

The Company obtains independent valuations for its operating fixed assets and investment properties after regular intervals. The management updates the assessment of the fair value of each property, taking into account the most recent independent valuations. The management determine a property's value within a range of reasonable fair value estimates. The best evidence of fair value of land is current prices in an active market for similar lands. The best evidence of fair value of buildings is to calculatefair depreciated market valueby applying an appropriate annualrate of depreciation on the new construction/ replacementvalueof the same building. The best evidence of fair value of electric installations,furniturefixturesand office equipment and vehicles is to calculate fair depreciated market value by applying an appropriate annual rate of depreciation on the replacement value / new purchase of the same and electric installation.

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