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DEWAN FAROOQUE SPINNING MILLS LIMITED
COMPANY INFORMATION
BOARD OF DIRECTORS | |
Executive Directors | : Syed Maqbool Ali |
Chief Executive Officer & Director | |
Non-Exective Director | : Mehmood-Ul-Hassan Asghar - Chairman, Board of Directors |
Mr. Ghazanfar Baber Siddiqi | |
Mr. Abdul Basit | |
Mr. Muhammad Hanif German | |
Mrs. Nida Jamil | |
Independent Director | : Mr. Aziz -ul-Haque |
Audit Committee | : Mr. Aziz -ul-Haque (Chairman) |
Mr. Abdul Basit (Member) | |
Mr. Ghazanfar Baber Siddiqi (Member) | |
Human Resources & Remuneration Committee | : Mr. Aziz -ul-Haque (Chairman) |
Mr. Mehmood-Ul-Hassan Asghar (Member) | |
Syed Maqbool Ali (Member) | |
Auditors | : Feroze Sharif Tariq & Company |
Chartered Accountants | |
4/N/4 Block-6, P.E.C.H.S. Karachi | |
Company Secretary | : Mr. Muhammad Hanif German |
Chief Financial Officer | : Mr. Muhammad Irfan Ali |
Tax Advisor | : Abbas & Atif Law Associates |
Legal Advisor | : Sharif & Co. Advocates |
Bankers | : United Bank Limited |
Bank Islami Pakistan Limited | |
MCB Bank Limited | |
Silk Bank Limited | |
Askari Bank Limited | |
Allied Bank Limited | |
Soneri Bank Limited | |
Summit Bank Limited | |
Registered Office | : Dewan Centre |
3-A, Lalazar Beach Hotel Road | |
Karachi. | |
Shares Registrar & Transfer Agent | : BMF Consultants Pakistan (Private) Limited |
Anum Estate Building, Room No. 310 & 311, | |
3rd Floor, 49, Darul Aman Society, | |
Main Shahrah-e-Faisal, adjacent to Baloch Colony Bridge, | |
Karachi 75350, Pakistan. | |
Factory Office | : 54 Km, Multan Road, Phool Nagar By Pass |
District Kasur, Punjab , Pakistan. | |
Website | : www.yousufdewan.com |
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DEWAN FAROOQUE SPINNING MILLS LIMITED DIRECTORS' REPORT
IN THE NAME OF ALLAH; THE MOST GRACIOUS AND THE MOST MERCIFUL
IF YE GIVE THANKS, I WILL GIVE YOU MORE (HOLY QURAN)
Dear Shareholder(s),
Assalam-o-Alykum!
The Board of Directors of your Company is pleased to present unaudited condensed interim financial statements for the first quarter ended September 30, 2023 in compliance with the requirements of section 237 of the Companies Act, 2017 and code of corporate governance issued by Securities and Exchange Commission of Pakistan.
Economic & Industrial Overview
Pakistan has been facing a host of challenges those have seriously impacted its development, growth, economic progress and political stability. Inconsistent policies, cross subsidization, resource misallocation, underperforming agriculture due to lack of Govt. patronage, unemployment and rising energy prices are pressing concerns for Pakistan's Industry. While the emergency financing arranged in June brought us some breathing time, the exports are struggling to recover, and the current account deficit has started to widen due to the withdrawal of import restrictions. Because the economy's ability to earn foreign exchange remains abysmal, the current rupee appreciation remained short-lived, triggering another sharp depreciation, and giving rise to another episode of high inflation. The textile sector, is responsible for around 60 percent of exports and employs 40 percent of the labor force. It also supports numerous other sectors such as cotton and retail through domestic linkages. Since February 2023, over 50 percent of production capacity has been sitting idle and more than 15 million workers, around 19 percent of the labor force, have become unemployed. Continued exchange rate volatility, delays in sales tax refunds, and power tariffs of over 13 cents/kWh are now forcing manufacturers towards permanent closure, and the country towards a premature deindustrialization. Long-term stability of Pakistan depends upon resolving fundamental economic issues. In this context, it is important to recognize the criticality of facilitating the export industries which result in net inflow of dollars and foster economic stability. Pakistan imported around $2 billion worth of cotton for textile manufacturing. There has also been considerable progress in improving backward linkages. Owing to the efforts of the Punjab Government and APTMA there has been large-scale mobilization to improve the acreage and yield of Pakistan's cotton crop and reduce the need for cotton imports.
Operating results and performance
During the 1st Quarter under review, Company has suffered gross loss of Rs. (60.197) million compared to Rs. (63.392) million in the previous corresponding period, whereas operating expenses of the company marked at Rs. 9.442 million as compared to Rs. 12.849 million of comparable period of last year. Due to working capital constraints, the
DEWAN FAROOQUE SPINNING MILLS LIMITED DIRECTORS' REPORT
management continued the production of yarn on contract basis to keep the company operational.
These condensed interim financial statements have been prepared using going concern assumption as the conditions referred in note 2 are temporary and would reverse in foreseeable future. The company has approached its lenders for restructuring of its liabilities and is confident that the Company's restructuring proposals without markup will be accepted by the financial institutions / banks hence no provision of the same has been made in these financial statements. Further, sponsors also provide the support as and when required to meet the working capital requirements of the company and accordingly, the preparation of these financial statements using going concern assumption is justified.
Future Outlook
The GSP+ scheme has been extended for Pakistan for four additional years. Pakistan's textile industry is the largest beneficiary of the GSP+. More than 80% of total exports to the EU from Pakistan are textiles. A sustained increase in exports is the only way to achieve this and requires the provision of internationally competitive energy tariffs and restoration of liquidity in export sectors. There's an urgent need to eliminate gas price anomalies as not only will it be instrumental in promoting exports, it will also be sending right price signals for conservation and optimal utilization of both indigenous and imported fuels. Some further initiatives from the government are also expected for sustainable textile industry, especially continuation of long-term concessionary financing facility for boosting investments in new capacity expansion and up-gradation of technology. The government is expected to encourage the textile sector by inducing enhanced production, import substitution, duty cuts, tax incentives and early release of refunds etc.
Conclusion
With the grace of Allah Almighty, the management of the company will put its best endeavors to bring better results in future. In conclusion, we bow beg and pray to Almighty Allah, Rahman-o-Rahim, in the name of our beloved Prophet Muhammad (Peace be upon him) for the continued showering of his Blessings, Guidance, Strength, Health and Prosperity to us, our company, country and nation, and pray to Almighty Allah to bestow Peace, Harmony, Brotherhood and Unity in true Islamic spirit to whole of Muslim Ummah; Ameen; Summa Ameen.
LO-MY LORD IS INDEED HEARER OF PRAYER (HOLY QURAN)
By and under Authority of the Board of Directors
Syed Maqbool Ali | Mehmood-ul-Hassan Asghar |
Chief Executive Officer & Director | Chairman, Board of Directors |
Dated: October 25, 2023 |
DEWAN FAROOQUE SPINNING MILLS LIMITED
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS AT 30TH SEPTEMBER 2023
Notes
EQUITY AND LIABILITIESSHARE CAPITAL AND RESERVES
Authorized share capital
Un-Audited | Audited |
Sep 30, | June 30, |
2023 | 2023 |
------------- | (Rupees)-------------- |
100,000,000 (2023: 100,000,000 ) Ordinary shares of Rs.10/- each
Issued, subscribed and paid-up capital Revenue reserve - accumulated loss
Capital reserve - revaluation surplus on property, plant and equipment
NON-CURRENT LIABILITIES
Long term loan
Deferred taxation
Deferred liability for staff gratuity
CURRENT LIABILITIES
Trade and other payables
Accrued mark-up
Short term borrowings
Current & overdue portion of long term liabilities
Provision for taxation
CONTINGENCIES AND COMMITMENTS | 6 |
ASSETS | |
NON-CURRENT ASSETS | |
Property, plant and equipment | 7 |
Long term deposits | |
CURRENT ASSETS | |
Stores & spares | |
Trade debts- unsecured, considered good | |
Loans and advances - unsecured, considered good | |
Trade deposits and other receivables - considered good | |
Taxes recoverable | |
Cash and bank balances | 8 |
1,000,000,000
977,507,260
(1,726,999,647)
2,210,432,361
1,460,939,974
15,078,125
251,826,545
28,310,541
147,036,771
390,303,597
412,864,355
446,006,352
-
1,396,211,075
-
3,152,366,260
3,017,812,788
38,606,345
27,876,075
12,489,586
10,132,274
8,885,617
33,990,850
2,572,725
95,947,127
3,152,366,260
1,000,000,000
977,507,260
(1,679,052,587)
2,225,864,355
1,524,319,028
13,515,625
258,129,754
24,821,967
142,878,504
390,303,597
412,864,355
448,271,977
6,104,296
1,400,422,729
-
3,221,209,103
3,050,959,357
38,226,745
28,155,525
43,384,112
10,773,089
7,342,103
39,568,858
2,799,314
132,023,001
3,221,209,103
The annexed notes form an integral part of these condensed interim financial statements.
Syed Maqbool Ali | Muhammad Irfan Ali | Mehmood-ul-Hassan Asghar |
Chief Executive Officer & Director | Chief Financial Officer | Chairman Board of Directors |
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DEWAN FAROOQUE SPINNING MILLS LIMITED | |
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED) | |
FOR THE FIRST QUARTER ENDED 30TH SEPTEMBER 2023 | |
July-Sept, | July-Sept, |
2023 | 2022 |
Notes -------------------- | (Rupees)--------------------- |
Sales / Revenue - Net
Cost of sales / revenue
Gross (loss)
Operating expenses
Administrative expenses
Selling and distribution expenses
Operating (loss) | |
Finance cost | 9 |
(Loss) before taxation | |
Taxation | |
Current | |
Deferred | |
(Loss) after taxation | |
(Loss) per share - basic and diluted | 10 |
-
(60,196,540)
(60,196,540)
(6,447,284)
(2,994,723)
(9,442,007)
(69,638,547)
(43,716)
(69,682,263)
-
6,303,209
6,303,209
(63,379,054)
(0.65)
153,608,600
(217,000,704)
(63,392,104)
(9,975,970)
(2,873,144)
(12,849,114)
(76,241,218)
(17,479,684)
(93,720,902)
(1,920,108)
6,994,791
5,074,683
(88,646,219)
(0.91)
The annexed notes form an integral part of these condensed interim financial statements.
Syed Maqbool Ali | Muhammad Irfan Ali | Mehmood-ul-Hassan Asghar |
Chief Executive Officer & Director | Chief Financial Officer | Chairman Board of Directors |
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DEWAN FAROOQUE SPINNING MILLS LIMITED
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE FIRST QUARTER ENDED 30TH SEPTEMBER 2023
July-Sept, | July-Sept, | |
2023 | 2022 | |
-----------------(Rupees)----------------- | ||
- | ||
(Loss) after taxation | (63,379,054) | (88,646,219) |
Other Comprehensive Income | ||
Items that will not be subsequently reclassified to profit or loss: | - | - |
Total comprehensive income / (loss) for the period | (63,379,054) | (88,646,219) | |
The annexed notes form an integral part of these condensed interim financial statements.
Syed Maqbool Ali | Muhammad Irfan Ali | Mehmood-ul-Hassan Asghar |
Chief Executive Officer & Director | Chief Financial Officer | Chairman Board of Directors |
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DEWAN FAROOQUE SPINNING MILLS LIMITED
CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED) FOR THE FIRST QUARTER ENDED 30TH SEPTEMBER 2023
Note
CASH FLOW FROM OPERATING ACTIVITIES
July-Sept, | July-Sept, |
2023 | 2022 |
------------ | (Rupees)------------ |
(Loss) before taxation
Adjustments for non cash and other items:
Depreciation
Financial charges
Provision for gratuity
Cash flow before working capital changes
Working Capital changes
(Increase) / Decrease in current assets:
Stores & spares
Trade debts
Loans & advances
Trade deposits & other receivables
Increase / (Decrease) in current liabilities:
Trade and other payables
Cash generated from / (used in) operations
Payments for:
Taxes paid - net of refund
Gratuity paid
Financial charges paid
CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditure incurred
Long term deposits
Net cash outflow from investing activities | |
CASH FLOW FROM FINANCING ACTIVITIES | |
Long term loan | |
Net cash inflow / (out flow) 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 | 8 |
The annexed notes form an integral part of these condensed interim financial statements.
(69,682,263)
33,146,569
43,716
3,488,574
(33,003,404)
279,450
30,894,526
640,815
(1,543,514)
4,158,267
1,426,140
(526,288)
-
(43,716)
856,136
-
(379,600)
(379,600)
(703,125)
(703,125)
(226,589)
2,799,314
2,572,725
(93,720,902)
36,778,527
17,479,684
2,601,997
(36,860,694)
(2,049,479)
12,527,131
1,332,564
11,727,289
16,795,187
3,471,998
(6,510,675)
(649,366)
(45,211)
(3,733,254)
(534,200)
-
(534,200)
(1,875,000)
(1,875,000)
(6,142,454)
10,238,291
4,095,837
Syed Maqbool Ali | Muhammad Irfan Ali |
Chief Executive Officer & Director | Chief Financial Officer |
Mehmood-ul-Hassan Asghar Chairman Board of Directors
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DEWAN FAROOQUE SPINNING MILLS LIMITED
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE FIRST QUARTER ENDED 30TH SEPTEMBER 2023
Issued, | Revenue reserve | Capital Reserve | |
Revaluation surplus | |||
subscribed and | Total | ||
Accumulated loss | on property, plant | ||
Paid-up Capital | |||
& equipment | |||
(Rupees) |
Balance as at July 01, 2022
Total comprehensive loss for the period (Loss) for the period
Other comprehensive income
Transfer to accumulated loss
in respect of incremental depreciation - net of tax
Balance as at September 30, 2022
Balance as at July 01, 2023
Total comprehensive loss for the period (Loss) for the period
Other comprehensive income
Transfer to accumulated loss
in respect of incremental depreciation - net of tax
977,507,260 | (1,463,021,085) | 2,294,365,071 | 1,808,851,246 | |
-- | (88,646,219) | -- | (88,646,219) | |
-- | -- | -- | -- | |
-- | (88,646,219) | -- | (88,646,219) | |
-- | 17,125,179 | (17,125,179) | -- | |
977,507,260 | (1,534,542,125) | 2,277,239,892 | 1,720,205,027 | |
977,507,260 | (1,679,052,587) | 2,225,864,355 | 1,524,319,028 | |
(63,379,054) | (63,379,054) | |||
-- | -- | -- | -- | |
-- | (63,379,054) | -- | (63,379,054) | |
-- | 15,431,994 | (15,431,994) | -- |
Balance as at September 30, 2023 | 977,507,260 | (1,726,999,647) | 2,210,432,361 | 1,460,939,974 |
The annexed notes form an integral part of these condensed interim financial statements.
Syed Maqbool Ali | Muhammad Irfan Ali | Mehmood-ul-Hassan Asghar |
Chief Executive Officer & Director | Chief Financial Officer | Chairman Board of Directors |
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