2025
For The Nine Months Ended March 31'*¿ Fazal Cloth M.ills L.i.mited
Nine Months Ended Mar 31, 2025
ContentsCorporate
Company Information
Directors' Review
06
Condensed Interim Financial Information
Condensed Interim Statement of Financial Position (Un-Audited)
Condensed Interim Statement of Profit or Loss (Un-Audited)
Condensed Interim Statement of Comprehensive Income (Un-Audited)
Condensed Interim Statement of Changes in Equity (Un-Audited)
Condensed Interim Statement of Cash Flows (Un-Audited)
Notes to the Condensed Interim Financial Statements (Un-Audited)
BOARD OF DIRECTORS
AUDIT COMMITTEE
HUMAN RESOURCE AND REMUNERATION COMMITTEE
STRATEGIC PLANNING COMMITTEE
COMPANY SECRETARY CHIEF FINANCIAL OFFICER
COMPANY PROFILE
aq•
Nine Months Ended Mar 31, 2025
t Fazal Cloth Mills Limited
Sh. Naseem Ahmad Mr. Rehman Naseem
Mr. Amir Naseem Sheikh Mr. Faisal Ahmed
Mr. Muhammad Mukhtar Sheikh Mr. Abbas Mukhtar
Mr. Babar Ali
Mr. Masood Karim Shaikh Ms. Parveen Akhter Malik
Ms. Parveen Akhter Malik Mr. Sheikh Naseem Ahmad Mr. Amir Naseem Sheikh Mr. Babar Ali
Mr. Babar Ali
Mr. Amir Naseem Sheikh Mr.Faisal Ahmad
Mr. Rehman Naseem
Mr. Masood Karim Shaikh Ms. Parveen Akhter Malik
Mr. Azher Iqbal, ACA
Mr. Muhammad Azam, FCA 6 FCMA
Chairman/ Non -Executive Director Chief Executive Officer
Non - Executive Director Non - Executive Director Executive Director Executive Director Independent Director Independent Director Independent Director
Independent Director/Chairperson Non - Executive Director
Non - Executive Director Independent Director
Independent Director/Chairman Non - Executive Director
Non -Executive Director
CEO/Chairman Independent Director Independent Director
AUDITORS BANKERS
Bank AL Habib Limited National Bank of Pakistan Meezan Bank Limited The Bank of Punjab
ShineWing Hameed Chaudhri6 Co., Chartered Accountants
Askari Bank Limited MCB Bank Limited The Bank of Khyber JS Bank Limited
Habib Metropolitan Bank Limited Bank Alfalah Limited
Habib Bank Limited Faysal Bank Limited Allied Bank Limited
Bank lslami Pakistan Limited Soneri Bank Limited
Industrial and Commercial Bank of China Limited United Bank Limited
HEAD OFFICE 6
Dubai Islamic Bank Pakistan Limited Standard Chartered Bank (Pakistan) Limited
Bank IVlakramah Limited (Formerly Summit Bank Limited) Saudi Pak Industrial & Agricultural lnv. Comp any Limited Pak Oman Investment Company Limited
Pak Brunei Investment Company Limited Pak Libya Holding Company(Pvt.) Limited
Pakistan Kuwait Investment Company(Private) Limited PAIR Investment Company Limited
SHARES DEPARTMENT:
SHARES REGISTRAR:
REGISTERED OFFICE:
MILLS:
59/3. Abdali Road, Multan.
Phone: (92),4781637 Fax: (92) 61-ñ541832
E-mail: corporate@fazalcloth.comShares@fazalcloth.com Website: https://www.fazalcIoth.com
Vision Consulting Ltd.
5-C, LDA Flats. Lawrence Road, Lahore.sharesIdlvcl.com.pk Phone: (92) 42-36283096. 3â283097 Fax: (92) 42-3+374839
S9/7. Abid Majeed Road. Survey No. 248/7, Lahore Cantt, Lahore.
Phone: (92) 42-36â8ñ909
Fazal Nagar. Jhang Road, Muzaffargarh - Pakistan Ph. (92) $6-2ñ22216.18 Fax: (92) +6-2422217
Qadirpur Rawan Bypass. Khanewal Road. Multan - Pakistan Ph. (92)61-+740041-43, Fax: (92) 61-5740052
13-Km. Mian Wali Road, Khanpur Bagga Sher. PH.+92 (6+2) 490183
DIRECTORS' REVIEW
On behalf of the Board of Directors of Fazal Cloth Mills Ltd. (the Company), we would like to present the un-audited financial information of the Company for the nine months period ended March 31, 2025 in compliance with Section 237 of the Companies Act, 2017.
FINANCIAL PERFORMANCE
A comparison of the key financial results of the Company for the nine months period ended March 31, 2025 with same period last year (SPLY), is as follows:
Financial Highlights | March 31, 2025 | March 31, 2024 | % Increase / (decrease) |
Rupees in thousand | |||
Revenue - net | 69,028,048 | 72,089,483 | (4.25%) |
Cost of sales | 63,161,120 | 64,011,380 | (1.33%) |
Gross profit | 5,866,927 | 8,078,103 | (27.37%) |
EBIDTA | 7,212,690 | 9,264,017 | (22.14%) |
Depreciation | 1,713,794 | 1,636,222 | 4.74% |
Finance cost | 3,949,447 | 6,650,437 | (40.61%) |
Profit before levies and income tax | 1,549,448 | 977,359 | 58.53% |
Profit after taxation | 382,333 | 60,749 | 529.37% |
Earnings per share - basic and diluted | 12.74 | 2.02 | 529.36% |
Gross profit margin | 8.50% | 11.21% | (24.17%) |
Net profit margin | 0.55% | 0.08% | 587.50% |
The sales revenue decreased by 4.25% during the period under review, the sales volume of yarn has improved whereas, fabric slightly declined in this period as compared to SPLY.
The significant portion of the cost of goods manufactured consists of raw material, which is 72.60% and power cost is 14.30%. The gross margins have declined from 11.21% to 8.50% mainly on account of increased power cost by 23.30% due to increase in power tariff.
The finance cost during the period experienced a significant decrease of 40. 61%, totaling Rs. 3,949 million. This drop can be attributed to various factors, including reduced policy rates and lower working capital usage owing to stable exchange rate.
FUTURE OUTLOOK
As the ongoing fiscal year progresses towards the last quarter, Pakistan's macroeconomic indicators have shown signs of overall stabilization, supported by improved fiscal performance, strengthened external account, and receding inflation. The current account registered a higher surplus, driven by remittances and export growth, while reserves have improved, and the exchange rate remains stable, aligned with the market. Inflation has reduced to its lowest level, creating space for a more supportive monetary policy in upcoming months.
The recent imposition of tariff by the United States on Pakistan's exports is expected to significantly impact the country's already struggling textile sector and exacerbate existing economic challenges. The tariff, part of a broader move by the US to boost domestic manufacturing, comes at a time when Pakistan was already grappling with stagnation in its key export industries. The textile sector's difficulties are compounded by higher operational costs within Pakistan, which are less competitive compared to regional rivals. Despite government efforts to reduce power tariffs to ease business costs, industry leaders argue that more relief is needed to maintain Pakistan's position in global markets.
The fiscal consolidation measures have yielded positive results, showing improvements in fiscal accounts during the first eight months of FY2025. The fiscal deficit reduced to 2.2 percent of GDP in Jul-Feb FY2025 from 3.1 percent. Similarly, the primary surplus increased to Rs. 3,452.1 billion (3.0% of GDP), against a surplus of Rs.1,834.0 billion (1.7% of GDP) last year. Despite witnessing the diminishing inflationary pressures, the Monetary Policy Committee (MPC) decided to keep the policy rate unchanged at 12 percent. The policy rate adjustment in current financial year will keep inflationary expectations well-anchored and will support the sustainable economic recovery in FY2025.
The management expects the sales revenue to grow during the year ending June 30, 2025 and the liquidity position will further strengthen to run the operations of the Company in a sustainable manner. Going forward, we remain committed to improve our operations, to be more innovative, efficient and profitable to deliver sustainable returns to our shareholders.
THANKS AND APPRECIATION
We would like to place on record deep appreciation for the efforts of the executives, officers and other staff members and workers for their hard work, co-operation and sincerity to the Company in achieving the best possible results. The Board also wishes to place on record the appreciations to all banks, customers and suppliers for continued support to the Company with zeal and dedication. The Management is quite confident that these relations and cooperation will continue in the years to come.
( Sheikh Naseem Ahmad) Director
Dated: April 30, 2025
2024 | 2025 | ||||||
(4.25%) | 72,089,483 | 69,028,048 | |||||
(1.33%) | 64,011,380 | 63,161,120 | |||||
(27.37%) | 8,078,103 | 5,866,927 | |||||
(22.14%) | 9,264,017 | 7,212,690 | EBIDTA | ||||
4.74% | 1,636,222 | 1,713,794 | |||||
(40.61%) | 6,650,437 | 3,949,447 | |||||
58.53% | 977,359 | 1,549,448 | |||||
529.37% | 60,749 | 382,333 | |||||
529.36% | 2.02 | 12.74 | |||||
(24.17%) | 11.21% | 8.50% | |||||
587.50% | 0.08% | 0.55% | |||||
aq•
Nine Months Ended Mar 31, 2025
Fazal Cloth Mills Limited
2025
30
Fazal Cloth Mills Limited Condensed Interim Financial Statements (Un-audited)
For the Nine Months Ended 31 March 2025
Condensed Interim Statement of Financial Position
As at 31 March 2025
Note | (Un-audited) 31 March 2025 Rupees | (Audited) 30 June 2024 Rupees | |
Assets | |||
Non-current assets Property, plant and equipment | 4 | 51,886,011,039 | 52,090,033,687 |
Long term investments | 5 | 9,812,296,159 | 7,639,002,089 |
Long term loans and advances Long term deposits | 6 | -25,733,193 | - 110,640,293 |
61,724,040,391 | 59,839,676,069 | ||
Current assets | |||
Stores, spares and loose tools | 2,445,744,615 | 2,046,801,806 | |
Stock-in-trade | 7 | 36,605,306,560 | 23,730,084,196 |
Trade debts | 8 | 12,181,600,649 | 12,079,342,689 |
Loans and advances | 318,978,845 | 217,229,996 | |
Deposits, prepayments and other receivable | 616,961,176 | 269,417,471 | |
Mark-up accrued | 12,511,516 | 4,281,883 | |
Short term investment | 9 | 527,054,400 | 315,914,400 |
Sales tax refundable and adjustable | 2,582,341,171 | 565,170,561 | |
Cash and bank balances | 10 | 685,900,040 | 713,418,102 |
55,976,398,972 | 39,941,661,104 | ||
Total assets | 117,700,439,363 99,781,337,173 | ||
Equity and liabilities | |||
Share capital and reserves Authorized share capital | 1,700,000,000 1,700,000,000 | ||
Issued, subscribed and paid-up capital | 300,000,000 | 300,000,000 | |
Others capital reserves Revaluation surplus on property, plant and equipment | 19,182,675,465 18,109,395,441 | 2,009,381,395 18,554,848,169 | |
Unappropriated profits - revenue reserve 9,284,946,248 23,457,160,434
46,877,017,154 44,321,389,998
Non-current liabilities
Long term financing -secured 11
Long term musharika -secured 12
Lease liability -unsecured Deferred liabilities:
Staff retirement benefit
Deferred taxation
Current liabilities
Current portion of non-current liabilities 13
Short term borrowings - secured Contract liabilities
Trade and other payables 14
Unclaimed dividend Accrued mark-up Provision for taxation - net
12,722,806,119 | 12,715,332,537 |
7,410,101,306 | 2,509,641,813 |
67,560,861 | 70,677,725 |
611,964,313 | 576,427,439 |
9,400,351,458 | 9,234,269,159 |
30,212,784,057 25,106,348,673
3,862,100,562 | 3,835,167,740 |
24,995,646,245 | 17,717,675,277 |
587,346,804 | 438,053,016 |
9,858,261,436 | 6,387,042,998 |
21,977,192 | 22,002,980 |
882,551,098 | 1,320,363,612 |
402,754,815 | 633,292,879 |
40,610,638,152 30,353,598,502
Contingencies and commitments 15
117,700,439,363 99,781,337,173
The annexed notes form an integral part of these financial statements.
(SHEIKH NASEEM AHMAD)
Condensed Interim Statement of Profit or Loss (Un-Audited)
For the nine months and quarter ended 31 March 2025
Nine months ended Quarter ended
31 March | 31 March | 31 March | 31 March | ||||
2025 | 2024 | 2025 | 2024 | ||||
Note | Rupees | Rupees | Rupees | Rupees | |||
Revenue from contracts with customers - net | 16 | 69,028,047,768 | 72,089,483,278 | 22,038,208,046 | 24,977,131,472 | ||
Cost of sales | 17 | (63,161,120,412) | (64,011,380,341) (20,253,078,636) (23,314,017,983) | ||||
Gross profit | 5,866,927,356 | 8,078,102,937 | 1,785,129,410 | 1,663,113,489 | |||
Selling and distribution expenses | (366,416,009) | (414,778,786) | (161,623,036) | (121,920,789) | |||
Administrative expenses | (668,266,026) | (572,328,772) | (229,163,069) | (196,508,231) | |||
Other expenses | (127,243,282) | (116,122,399) | (56,248,654) | 39,189,392 | |||
(1,161,925,317) | (1,103,229,957) | (447,034,759) | (279,239,628) | ||||
Other income | 793,893,095 | 652,922,557 | 358,120,095 | 116,500,115 | |||
Profit from operations | 5,498,895,134 | 7,627,795,537 | 1,696,214,746 | 1,500,373,976 | |||
Finance cost | 18 | (3,949,447,409) | (6,650,436,780) | (1,210,699,435) | (2,114,160,554) | ||
Profit before levies and income tax | 1,549,447,725 | 977,358,757 | 485,515,311 | (613,786,578) | |||
Levies | (959,307,022) | (931,662,784) | (369,459,010) | (294,278,418) | |||
Profit before income tax | 590,140,703 | 45,695,973 | 116,056,301 | (908,064,996) | |||
Income tax | (207,807,617) | 15,053,081 | (78,170,326) | 354,394,951 | |||
Profit / (loss) after taxation | 382,333,086 | 60,749,054 | 37,885,975 | (553,670,045) | |||
Earnings / (loss) per share - basic and diluted | 19 | 12.74 | 2.02 | 1.26 | (18.46) | ||
The annexed notes form an integral part of these financial statements.
(SHEIKH NASEEM AHMAD)
Condensed Interim Statement of Comprehensive Income (Un-Audited)
For the nine months and quarter ended 31 March 2025
Nine months ended Quarter ended
31 March 2025 Rupees | 31 March 2024 Rupees | 31 March 2025 Rupees | 31 March 2024 Rupees | |
Profit after taxation | 382,333,086 | 60,749,054 | 37,885,975 | (553,670,045) |
Other comprehensive income - net of tax | ||||
Items that will never be reclassified to statement of profit or loss: | ||||
- Net change in fair value of financial assets at FVOCI | 2,173,294,070 | 621,751,086 | 493,873,203 | 263,944,990 |
Total comprehensive income for the period 2,555,627,156 682,500,140 531,759,178 (289,725,055) The annexed notes form an integral part of these financial statements.
(SHEIKH NASEEM AHMAD)
Condensed Interim Statement of Changes In Equity (Un-Audited)
For the nine months and quarter ended 31 March 2025
13
Capital reserves
Revenue reserve
Balance as at 30 June 2023 | Share capital - - - - - - - - - -300,000,000 | Share premium - - - - - - - - - - - - 77,616,000 | Capital redemption reserve - - - - - - - - - - - - - 175,000,000 | Fair value reserve - - - - - - - - - - - - - 823,129,157 | - | Capital reserve against capacity expansion - Rupees - | Revaluation surplus on property, plant and equipment - - - - - - - - - - - - - - 22,130,639,044 | Sub - total - - - - - - - - - - - - - - 23,506,384,201 | Un-appropriated - - - - - - - - - - - - - - - 21,140,136,577 | Total - - - - - - - - - - - - - 44,646,520,778 | |
Total comprehensive income for the period : | |||||||||||
Profit for nine months ended 31 March 2024 | - | - | - | - | - | - | - | 60,749,054 | 60,749,054 | ||
Other comprehensive income for nine months ended 31 March 2024 | - | - | - | 621,751,086 | - | - | 621,751,086 | - | 621,751,086 | ||
Surplus transferred to un-appropriated profit on | - | - | - | 621,751,086 | - | - | 621,751,086 | 60,749,054 | 682,500,140 | ||
account of incremental depreciation charged during the period -net of tax | - | - | - | - | - | (548,766,932) | (548,766,932) | 548,766,932 | - | ||
Transfer from surplus on revaluation of fixed assets on disposal -net of tax | - | - | - | - | - | (3,712,587) | (3,712,587) | 3,712,587 | - | ||
Change in effective tax rate | - | - | - | - | - | (154,408,504) | (154,408,504) | - | (154,408,504) | ||
Balance as at 31 March 2024 | 300,000,000 | 77,616,000 | 175,000,000 | 1,444,880,243 | - | 21,423,751,021 | 23,421,247,264 | 21,753,365,150 | 45,174,612,414 | ||
Total comprehensive income for the period : | |||||||||||
Profit for three months ended 30 June 2024 | - | - | - | - | - | - | - | 1,724,538,501 | 1,724,538,501 | ||
Other comprehensive (loss)/ income for three months ended 30 June 2023 | - | - | - | 311,885,152 | - | - | 311,885,152 | (80,631,210) | 231,253,942 | ||
Surplus transferred to un-appropriated profit on | - | - | - | 311,885,152 | - | - | 311,885,152 | 1,643,907,291 | 1,955,792,443 | ||
account of incremental depreciation charged during the period -net of tax | - | - | - | - | - | (40,876,520) | (40,876,520) | 40,876,520 | - | ||
Transfer from surplus on revaluation of fixed assets on disposal -net of tax | - | - | - | - | - | (19,011,473) | (19,011,473) | 19,011,473 | - | ||
Change in effective tax rate | - | - | - | - | - | (2,809,014,859) | (2,809,014,859) | - | (2,809,014,859) | ||
profits
Nine Months Ended Mar 31, 2025
Balance as at 30 June 2024 300,000,000 77,616,000 175,000,000 1,756,765,395 - 18,554,848,169 20,864,229,564 23,457,160,434 44,321,389,998
Capital reserves Revenue reserve
Share capital
Share premium
Capital redemption reserve
14
Fair value reserve
Capital reserve against capacity expansion
Revaluation surplus on property, plant and
Sub - total
Un-appropriated profits
Total
equipment
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Rupees - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Balance as at 30 June 2024 300,000,000 77,616,000 175,000,000 1,756,765,395 - 18,554,848,169 20,864,229,564 23,457,160,434 44,321,389,998
Total comprehensive income for the period :
- | - | - | - |
- | - | - | 2,173,294,070 |
- | - | - | 382,333,086 | 382,333,086 |
- | 2,173,294,070 | - | 2,173,294,070 |
Profit for nine months ended 31 March 2025
Other comprehensive income
for nine months ended 31 March 2025
- - - 2,173,294,070 - - 2,173,294,070 382,333,086 2,555,627,156
Capital reserve against capacity expension
not availble for distribution 15,000,000,000 15,000,000,000 (15,000,000,000) -
Surplus transferred to un-appropriated profit on account of incremental depreciation charged
during the period -net of tax - - - - - (418,238,436) (418,238,436) 418,238,436 -
Transfer from surplus on revaluation of fixed assets
on disposal -net of tax - - - - - (27,214,292) (27,214,292) 27,214,292 -Change in effective tax rate - - - - - - - - -Balance as at 31 March 2025 300,000,000 77,616,000 175,000,000 3,930,059,465 15,000,000,000 18,109,395,441 37,592,070,906 9,284,946,248 46,877,017,154
Nine Months Ended Mar 31, 2025
The annexed notes form an integral part of these financial statements.
(SHEIKH NASEEM AHMAD)
Condensed Interim Statement of Cash Flows (Un-Audited)
For the nine months ended 31 March 2025
Nine months ended 31 March 31 March
Cash flows from operating activities | 2025 Rupees | 2024 Rupees | |
Profit before taxation | 1,549,447,725 | 977,358,757 | |
Adjustments for: | |||
Depreciation on property, plant and equipment | 1,713,794,397 | 1,636,221,810 | |
Unrealized loss / (gain) on re-measurement of short term investments | (211,140,000) | (60,404,400) | |
Loss allowance against trade debts | (48,625,189) | 33,813,856 | |
Provision for gratuity | 236,495,502 | 228,993,867 | |
Provision for infrastructure cess | 615,823,194 | 248,471,040 | |
Provision for workers' profit participation fund | 1,214,500 | 51,392,811 | |
Provision for workers' welfare fund | 17,506,587 | 4,229,947 | |
Loss / (gain) on disposal of property, plant and equipment | 37,109,951 | 2,669,151 | |
Dividend income | (483,798,217) | (120,949,554) | |
Loss allowance on interest income for the period | 3,490,759 | 4,651,409 | |
Finance income | (23,786,711) | (14,451,102) | |
Finance cost | 3,949,447,409 | 6,650,436,780 | |
Cash generated from operations before working capital changes | 7,356,979,907 | 9,642,434,372 | |
Effect on cash flows due to working capital changes | |||
(Increase) / decrease in current assets: | |||
Stores, spares and loose tools | (398,942,809) | (346,112,716) | |
Stock-in-trade | (12,875,222,364) | 665,955,311 | |
Trade debts | (53,632,771) | 327,998,570 | |
Loans and advances | (101,748,849) | (126,540,467) | |
Deposits, prepayments and other receivables | (53,809,073) | 366,479,992 | |
(13,483,355,866) | 887,780,690 | ||
Increase / (decrease) in current liabilities: | |||
Trade and other payables | 2,836,674,157 | (1,803,411,304) | |
Contract liability | 149,293,788 | (249,179,411) | |
Cash (used in) / generated from operations | (3,140,408,014) | 8,477,624,347 | |
Gratuity paid to employees | (200,958,628) | (160,071,323) | |
Taxes paid - net | (3,248,741,014) | 1,346,772,077 | |
(3,449,699,642) | 1,186,700,754 | ||
Net cash (used in) / generated from operating activities | (6,590,107,656) | 9,664,325,101 | |
Cash flows from investing activities | |||
Fixed capital expenditure | (1,583,161,231) | (1,353,513,828) | |
Proceeds from sale of property, plant and equipment | 36,279,531 | 8,810,000 | |
Long term deposits | 84,907,100 | (85,100,000) | |
Finance income received | 12,066,319 | 6,998,557 | |
Dividend received from associated company | 190,063,585 | 120,949,554 | |
Net cash used in investing activities | (1,259,844,696) | (1,301,855,717) | |
Cash flows from financing activities | |||
Long term financing obtained | 2,373,046,855 | 2,217,188,000 | |
Long term financing repaid | (2,302,466,163) | (1,961,365,972) | |
Long term musharika obtained | 5,480,314,859 | 77,739,800 | |
Long term musharika repaid | (617,355,368) | (420,833,335) | |
Short term borrowings -net | 7,277,970,968 | (2,014,419,437) | |
Lease rentals paid | (9,646,149) | (8,769,228) | |
Finance cost paid - net | (4,379,404,924) | (6,192,346,346) | |
Dividend paid | (25,788) | (534,274) | |
Net cash (used in) / generated from financing activities | 7,822,434,290 | (8,303,340,792) | |
Net increase / (decrease) in cash and cash equivalents | (27,518,062) | 59,128,592 | |
Cash and cash equivalents at beginning of the period | 713,418,102 | 528,641,818 | |
Cash and cash equivalents at end of the period | 685,900,040 | 587,770,410 | |
The annexed notes form an integral part of these financial statements. | |||
(SHEIKH NASEEM AHMAD)
Notes to the Condensed Interim Financial Information (Un-audited)
For the nine months ended 31 March 2025
Legal status and nature of business
Fazal Cloth Mills Limited ("the Company") was incorporated in Pakistan in 1966 as a Public Limited Company under the Companies Act, 1913 (now the Companies Act, 2017). The shares of the Company are quoted on Pakistan Stock Exchange ('PSX'). The Company is principally engaged in manufacture and sale of yarn and fabric.
Geographical location and addresses of major business units including mills / plant of the Company are as under:
Lahore Purpose
69/7, Abid Majeed Road, Survey No. 248/7 Cantt. Registered office
Multan
59/3, Abdali Road. Head office
Qadirpur Rawan Bypass, Khanewal Road. Production plant
Muzaffargarh
Fazal Nagar, Jhang Road. Production plant
13-KM, Mianwali Road, Khanpur Bagga Sher. Production plant
BASIS OF PREPARATION AND SIGNIFCANT ACCOUNTING POLICIES
Statement of compliance
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:
International Accounting Standard ('IAS') 34, 'Interim Financial Reporting', issued by International Accounting Standards Board ('IASB') as notified under the Companies Act, 2017 (the Act),
Provisions of and directives issued under the Act, and
Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as notified under the Act.
Where provisions of and directives issued under the Act, differ with the requirements of IAS 34, the provisions of and directives issued under the Act have been followed.
These condensed interim financial statements does not include all the information and disclosures as required in an annual audited financial statements, and these should be read in conjunction with the Company's annual audited financial statements for the year ended June 30, 2024. These condensed interim financial statements are being submitted to the shareholders as required by the section 237 of the Companies Act, 2017.
Standards, amendments to approved accounting standards effective in current period and are relevant
Certain standards, amendments and interpretations to IFRSs are effective for accounting periods beginning on July 01, 2024 but are considered not to be relevant or to have any significant effect on the Company's operations (although they may affect the accounting for future transactions and events) and are, therefore, not detailed in these condensed interim financial statements.
Standards, amendments to approved accounting standards and interpretations that are not yet effective and have not been early adopted by the Company
There are certain standards, amendments to the accounting standards and interpretations that are effective for accounting periods beginning on July 01, 2025 but are considered not to be relevant or to have any significant effect on the Company's operations and are, therefore, not detailed in these condensed interim financial statements.
Material accounting policies
All the accounting policies and the methods of computation adopted in the preparation of these condensed interim financial statements are consistent with those applied in the preparation of audited annual financial statements for the year ended June 30, 2024.
Re-statement
In May 2024, the Institute of Chartered Accountants of Pakistan (ICAP) had issued a circular on "IAS -12 Application Guidance on Accounting for Minimum Taxes and Final Taxes". The said guidance requires certain amounts of taxes paid under minimum tax regime (which is not adjustable against the future income tax liability) and final tax regime to be shown separately as a levy instead of showing it in current tax. Accordingly, the impact has been incorporated in these interim financial statements retrospectively in accordance with the requirement of International Accounting Standard (IAS - 8) 'Accounting Policies, Change in Accounting Estimates and Errors'. There has been no effect on the condensed interim statement of financial position and statement of cash flows as a result of this change.
ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of condensed interim financial statements require management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
In preparing these condensed interim financial statements, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation and uncertainty were the same as those that applied to the audited annual financial statements for the year ended June 30, 2024.
4 Property, plant and equipment | Note | (Un-audited) 31 March 2025 Rupees | (Audited) 30 June 2024 Rupees |
Operating Property, plant and equipment | 4.1 | 50,500,493,231 | 51,701,058,121 |
Right of use of Asset | 4.2 | 35,897,379 | 40,205,064 |
Capital work-in-progress | 4.3 | 1,349,620,429 51,886,011,039 | 348,770,502 52,090,033,687 |
4.1 Opening net book value Additions during the period / year: | 51,701,058,121 | 47,865,805,154 |
Freehold land | 23,397,020 | 518,680 |
Factory building on free hold land | 37,143,867 | 798,194,940 |
Non-factory building on free hold land | 166,679,949 | 87,686,361 |
Non-factory building on lease hold land | - | 9,979,169 |
Plant and machinery | 308,648,216 | 4,629,537,342 |
Electric fittings and installations | 8,685,644 | 270,254,190 |
Tools, laboratory equipment and arms | 32,300 | 22,202,878 |
Fire extinguishing equipments and scales | 3,700,000 | 15,358,876 |
Office equipment | 20,328,482 | 30,946,802 |
Furniture and fixtures | - | 7,571,196 |
Vehicles | 13,695,826 | 236,975,219 |
582,311,304 | 6,109,225,653 | |
Addition on revaluation surplus | - | - |
Carrying value of assets disposed off during the period / year | (73,389,482) | (57,213,332) |
Depreciation charge for the period / year | (1,709,486,712) | (2,216,759,354) |
Closing net book value | 50,500,493,231 | 51,701,058,121 |
4.2 Right of use Asset | ||
Opening net book value | 40,205,064 | 45,948,645 |
Depreciation charge for the period | (4,307,685) | (5,743,581) |
Closing net book value | 35,897,379 | 40,205,064 |
4.3 Breakup of capital work-in-progress: | Note | (Un-audited) 31 March 2025 Rupees | (Audited) 30 June 2024 Rupees |
Building and free hold land | 409,623,666 | 19,429,843 | |
Non-factory building on free hold land | 103,119,838 | 163,687,695 | |
Plant and machinery | 654,867,093 | 114,126,028 | |
Electric fittings and Installations | 597,092 | - | |
Tools, Lab. Equipment & Arms | 49,415 | 49,415 | |
Office equipment | 2,319,426 | 6,355,973 | |
Furniture and fixtures Vehicles - Cost & Expenses Advances to suppliers - unsecured, | -7,506,068 | 52,626 - | |
considered good 4.3.1 | 171,537,831 | 45,068,922 | |
1,349,620,429 | 348,770,502 | ||
4.3.1 These mainly includes advances against civil works, plant and machinery and vehicles and are in the normal course of business. | |||
5 Long term investments | Note | (Un-audited) 31 March 2025 Rupees | (Audited) 30 June 2024 Rupees |
At fair value through OCI | |||
Fatima Fertilizer Company Limited - quoted | 5.1 | 5,425,045,950 | 3,251,751,880 |
Fatima Energy Limited -unquoted | 5.2 | 3,926,005,673 | 3,926,005,673 |
Fatima Transmission Company Limited - unquoted | 5.3 | 98,910,398 | 98,910,398 |
Multan Real Estate (Private) Limited - unquoted | 5.4 | 322,334,138 | 322,334,138 |
9,772,296,159 | 7,599,002,089 | ||
Associated companies - at equity method | |||
Fatima Transmission Company Limited - | |||
unquoted (Ordinary shares) | 5.5 | - | - |
Fatima Electric Company Limited - unquoted | 5.5 | - | - |
- | - | ||
At fair value through P&L | |||
Term finance certificates | 40,000,000 | 40,000,000 | |
9,812,296,159 | 7,639,002,089 | ||
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