HALF YEARLY
REPORT FOR THE PERIOD ENDED DECEMBER
31, 2024
Half Yearly Report | |
Independent Auditor's Review Report | 4 |
5 | |
6 | |
7 | |
8 | |
9 | |
10-12 |
Mr. Mommin Malik Mrs. Nilofer Afridi Qazi
Mr. Mommin Malik
Mr. Mommin Malik
Half Yearly Report
DIRECTOR'S REVIEW REPORT
The Board of Directors of Hala Enterprises Limited hereby present the interim financial reports of the company for the half year ended 31st December, 2024, together with the interim financial informaon.
The first half of the financial year 2024-25 connued to reflect the persistent external and internal challenges from the previous year. The external factors include the blockage of the Suez Canal which has delayed transit mes to Europe while also increasing the freight costs. This has had a major impact on the demand for bulky texÆle products such as Terry Towels from Pakistan, India & Bangladesh - as buyers have changed their purchase paerns towards other source countries such as Turkey & Egypt where freight costs are lower and transit mes are shorter. Internally, high raw material costs and expensive energy along with costly financing (due to high interest rates) has negavely impacted margins of the texÆle export sector.
Due to the above factors, the company had to curtail sales, as only higher priced orders remained viable to cover the increased costs. In addion, due to a slump in demand from Europe and the general denial of buyers to accept a price increase, it was a strategic decision to curtail the turnover in the first half of the year to keep operaons running smoothly. Therefore a decrease in revenue can be seen in comparison to the same period last year. The lower turnover has also negavely impacted the profitability of the company for the first half of the FY; however, the bookings made for the 3rd and 4th quarter are expected to cover the lower turnover moving forward towards the close of the fiscal year.
The recent downward trend in inflaon and interest rates signals a favorable shiZ in the upcoming period with the potenal to ease cost pressures and improve financial performance in the coming period by ramping up the turnover in the last quarter. Looking ahead, there is an opmism that these posive economic developments, alongside strategic inivaves to boost export turnover and switching to sustainable energy sources shall help support stronger profitability in the upcoming period. The company's sponsors have also pledged to undertake a sustainable energy project in the upcoming period. It was decided that the project inivaon shall take place in the fourth quarter and be completed by the first quarter of 2025-2026 FY. The first phase of the project involves moving to renewable alternave energy sources which are cheaper than tradional non-renewable energy resources. In addion this will also assist the company in its "green markeng" inivave as a sustainable business for its foreign clientele.
We would like to take this opportunity to thank our customers, suppliers and bankers for their connued cooperaon towards the progress of the company. We would also like to thank our dedicated and talented team of execuves, the Board, our staff and workers for the hard work put in towards the company's improvement in performance.
For & on behalf of the Board
(TAHIR JAHANGIR)
CHAIRMAN
LAHORE: February 28, 2025
Half Yearly Report
INDEPENDENT AUDITOR'S REVIEW REPORT
TO THE MEMBERS OF HALA ENTERPRISES LIMITED REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS
Introduction
We have reviewed the accompanying condensed interim statement of nancial position of Hala Enterprises Limited as at December 31, 2024 and the related condensed interim statement of pro t or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, and the condensed interim statement of cash flows, and notes to the nancial statements for the six-month period then ended (here-in-after referred to as the "interim nancial statements"). Management is responsible for the preparation and fair presentation of these interim nancial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim nancial reporting. Our responsibility is to express a conclusion on these nancial statements based on our review.
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 interim nancial statements consists of making inquiries, primarily of persons responsible for nancial and accounting maers 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 signiïcant ma ers that might be identi ed in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our a¼ention that causes us to believe that the accompanying interim nancial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim nancial reporting.
Other maer
The gures of the condensed interim statement of pro t or loss, condensed interim statement of comprehensive income for the quarters ended December 31, 2024 and 2023 have not been reviewed as we are required to review only cumulative gures for the six-month period ended on that date.
The engagement partner on the review resulting in this independent auditor's review report is Muhammad Nawaz (ACA).
Malik Haroon Ahmad & Co.
Place: Lahore
Chartered Accountants
Date: February 27, 2025
UDIN: RR202410206FD8bvqaCP
4
Half Yearly Report
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31, 2024 (UN-AUDITED)
December 2024 June 2024
Note
Un-Audited Audited
ASSETS
Non-Current Assets
Property, plant and equipment | 5 |
Long term investments
Long term deposits
Current Assets
Stores and spares
Stock in trade
Trade debts
Advances, deposits, prepayments and other receivables Tax refund due from Government
Due from related parties
Cash and bank balances
Non-current assets classified as held for sale | 6 |
EQUITY AND LIABILITIES
Share Capital And Reserves
Authorized Share Capital
16,000,000 Ordinary shares of Rs. 10 each
Issued, subscribed and paid up capital
Reserves
Capital reserves
Surplus on revaluation of property, plant and equipment | 7 |
Fair value reserve of financial assets at FVOCI
Other capital reserves
Revenue reserves
Other revenue reserve
Accumulated loss
Total reserves
Non Current Liabilities
Deferred liabilities
Long term borrowing
Current Liabilities
269,079,075 | 273,577,293 |
12,060,144 | 8,263,612 |
6,569,548 | 6,569,548 |
287,708,767 | 288,410,453 |
5,512,276 | 2,949,499 |
98,822,919 | 95,157,019 |
42,647,842 | 52,806,526 |
56,671,258 | 53,416,157 |
55,097,295 | 50,474,894 |
6,880,110 | 6,481,878 |
8,938,790 | 3,954,719 |
274,570,490 | 265,240,692 |
6,716,112 | 6,716,112 |
568,995,369 | 560,367,257 |
160,000,000 | 160,000,000 |
129,963,040 | 129,963,040 |
211,060,404 | 214,382,376 |
10,876,510 | 7,079,978 |
2,274,287 | 2,274,287 |
224,211,201 | 223,736,641 |
7,000,000 | 7,000,000 |
(84,435,731) | (76,546,633) |
(77,435,731) | (69,546,633) |
276,738,510 | 284,153,048 |
34,137,375 | 33,828,607 |
- | 933,500 |
34,137,375 | 34,762,107 |
Trade and other payables | |
Accrued mark up | |
Short term borrowings | |
Current portion of long term loan | 8 |
Due to related parties | |
Liabilities directly associated with non-current assets | 9 |
classified as held for sale Contingencies And Commitments |
66,863,999 | 44,542,778 |
4,120,151 | 6,439,288 |
155,944,000 | 166,682,147 |
2,050,500 | 2,417,500 |
25,365,833 | 17,595,389 |
254,344,484 | 237,677,102 |
3,775,000 | 3,775,000 |
568,995,369 560,367,257
The annexed notes from 1 to 14 form an integral part of this condensed interim financial information.
CHIEF EXECUTIVE | CHIEF FINANCIAL | DIRECTOR |
OFFICER | OFFICER |
5
Half Yearly Report
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)
FOR THE HALF YEAR ENDED DECEMBER 31, 2024
Note | Half Year Ended | Half Year Ended Quarter Ended Quarter Ended | |||
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 | ||
Revenue | 10 | 221,302,989 | 279,612,691 | 133,602,524 | 143,839,778 |
Cost of revenue | (180,497,136) | (219,396,067) | (110,006,882) | (109,158,974) | |
Gross profit | 40,805,853 | 60,216,624 | 23,595,642 | 34,680,804 |
Selling and distribution costs Administrative expenses Other operating expenses
Operating profit
Finance cost
Other income
(18,870,570) | (22,055,044) | (6,323,817) | (14,289,431) |
(14,102,404) | (15,878,629) | (8,024,291) | (9,660,650) |
(582,891) | (1,815,929) | (1,175,344) | (295,728) |
(33,555,865) | (39,749,602) | (15,523,452) | (24,245,809) |
7,249,988 | 20,467,022 | 8,072,190 | 10,434,995 |
(16,701,223) | (15,709,414) | (7,176,473) | (8,595,929) |
374,307 | 1,564,212 | - | 1,268,647 |
(Loss)/Profit before taxation and levies | (9,076,928) | 6,321,820 | 895,717 | 3,107,713 |
Levies | (2,134,142) | (2,537,390) | (1,279,072) | (1,184,515) |
(Loss)/Profit before taxation | (11,211,070) | 3,784,430 | (383,355) | 1,923,198 |
Taxation | - | - | - | - |
(Loss)/Profit after taxation | ||||
(11,211,070) | 3,784,430 | (383,355) | 1,923,198 | |
Earning per share - Basic | (0.86) | 0.29 | (0.03) | 0.15 |
Earning per share - Diluted | (0.86) | 0.29 | (0.03) | 0.15 |
The annexed notes from 1 to 14 form an integral part of this condensed interim financial information.
CHIEF EXECUTIVE | CHIEF FINANCIAL | DIRECTOR |
OFFICER | OFFICER |
6
Half Yearly Report
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED DECEMBER 31, 2024 (UN-AUDITED)
Half Year Ended | Quarter Ended |
Dec 31, 2024 Dec 31, 2023 | Dec 31, 2024 Dec 31, 2023 |
Net (loss)/profit after taxation for the period
Other comprehensive income / (loss)
Items that will not be reclassified to profit and loss
Unrecognized acturial gain due to experience adjustment
on remeasurement of staff retirement benefits
Items that may be reclassified subsequently to profit and loss
Gain/(Loss) on re-measurement of investment designated
(11,211,070) | 3,784,430 | (383,355) | 1,923,198 |
- | - | - | - |
3,796,532 2,640,035 4,426,668 (639,763)
Total comprehensive income for the period | (7,414,538) | 6,424,465 | 4,043,313 | 1,283,435 |
The annexed notes from 1 to 14 form an integral part of this condensed interim financial information.
CHIEF EXECUTIVE | CHIEF FINANCIAL | DIRECTOR |
OFFICER | OFFICER |
Half Yearly Report
CONDENSED INTERIM STATEMENT OF CASH FLOWS
FOR THE HALF YEAR ENDED DECEMBER 31, 2024 (UN-AUDITED)
Half year ended | Half year ended |
December 31, 2024 | December 31, 2023 |
CASH FLOW FROM OPERATING ACTIVITIES
(Loss)/profit before taxation
Adjustments for :
Depreciation
Provision for gratuity
WWF expense
WPPF Expense
Unrealized exchange loss/(gain)
Dividend Income
Finance cost
Operating profit before working capital changes (Increase) / decrease in current assets
Stores and spares
Stock in trade
Trade debtors
Advances, deposits, prepayments and other receivables Sales tax refundable
Due from associated undertakings
(Decrease)/ increase in current liabilities
Trade and other payables
Due to directors and associated undertakings
Cash generated from operations
Income tax paid
Finance cost paid
Change in long term deposits
Workers profit participation fund paid
Gratuity paid
Net cash generated from operating activities
CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditure on property, plant and equipment
Dividend received
Net cash generated from investing activities
CASH FLOW FROM FINANCING ACTIVITIES
Receipt/(Payment) of long term borrowings
Receipt/(Payment) of short term borrowings
Net cash used in financing activities
Effect of exchange gain/(loss) on cash & cash equivalents
Net increase in cash and cash equivalents
(9,076,928)6,321,820
6,095,218 | 6,282,138 |
2,701,199 | 2,341,988 |
- 201,644
- 342,750
- (821,355)
- (112,257)
16,701,223 15,709,414
25,497,640 23,944,321
16,420,712 30,266,141
(2,562,777) | 382,488 |
(3,665,900) | (7,200,001) |
10,158,684 | (15,822,804) |
(3,255,101) | (5,010,040) |
268,917 | 3,250,002 |
(398,232) | (2,232,546) |
545,590 | (26,632,902) |
22,321,221 | (5,397,177) |
7,770,444 | 989,793 |
30,091,665 | (4,407,384) |
47,057,968 | (774,145) |
(7,025,460) | (4,565,808) |
(19,020,359) | (14,033,840) |
- (732,000)
- (1,356,516)
(2,392,431)(948,667)
(28,438,250) (21,636,831)
18,619,718 (22,410,976)
(1,597,000) | (722,271) |
- 112,257
(1,597,000)(610,014)
(1,300,500)(558,500)
(10,738,147) 29,765,800
(12,038,647) 29,207,300
- 821,355
4,984,0717,007,665
Cash and cash equivalents at the beginning of year | 3,954,719 | 2,351,300 |
Cash and cash equivalents at the end of year | 8,938,790 | 9,358,965 |
The annexed notes from 1 to 14 form an integral part of this condensed interim financial information.
CHIEF EXECUTIVE | CHIEF FINANCIAL | DIRECTOR |
OFFICER | OFFICER |
Half Yearly Report
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED DECEMBER 31, 2024 (UN-AUDITED)
Capital Reserves | Revenue Reserves | ||||||||
Surplus on | Fair Value | Total Share | |||||||
Revaluation | Reserve of | Other | |||||||
Share Capital | Other Capital | Total Capital | Accumulated | Total Revenue | Capital and | ||||
of Property, | Financial | Revenue | |||||||
Particulars | Reserve | Reserves | Loss | Reserves | Reserves | ||||
Plant and | Assets at | Reserve | |||||||
Equipment | FVOCI | ||||||||
---------------------------------------------------------------------------- | Rupees --------------------------------------------------------------------- | ||||||||
Balance as at July 1, 2023 | 129,963,040 | 223,302,128 | 5,157,639 | 2,274,287 | 230,734,054 | 7,000,000 | (37,880,120) | (30,880,120) | 329,816,974 |
Net profit for the half year ended December 31, 2023 | - | - | - | - | - | - | 3,784,430 | 3,784,430 | 3,784,430 |
Other comprehensive (loss) for the half year ended December 31, 2023 | - | - | 2,640,035 | - | 2,640,035 | - | - | - | 2,640,035 |
Transfer from surplus onrevaluation ofproperty,plant andequipment | - | (3,729,948) | - | - | (3,729,948) | - | 3,729,948 | 3,729,948 | - |
in respect of incremental depreciation charged in current period. | |||||||||
Transfer from surplus on revaluation of property, plant and equipment | - | - | - | - | - | - | - | - | - |
on disposal of plant and machinery. | |||||||||
Balance as at December 31, 2023 | 129,963,040 | 219,572,180 | 7,797,674 | 2,274,287 | 229,644,141 | 7,000,000 | (30,365,742) | (23,365,742) | 336,241,439 |
Balance as at January 1, 2024 | 129,963,040 | 219,572,180 | 7,797,674 | 2,274,287 | 229,644,141 | 7,000,000 | (30,365,742) | (23,365,742) | 336,241,439 |
Net (loss)/profit for the half year ended June 30, 2024 | - | - | - | - | - | - | (51,140,044) | (51,140,044) | (51,140,044) |
Other comprehensive (loss) for the half year ended June 30, 2024 | - | - | (717,696) | - | (717,696) | - | (230,651) | (230,651) | (948,347) |
Addition in surlus on revaluation of property, plant & equipment | - | - | - | - | - | - | - | - | - |
Transfer from surplus onrevaluation ofproperty,plant andequipment | - | (3,729,948) | - | - | (3,729,948) | - | 3,729,948 | 3,729,948 | - |
in respect of incremental depreciation charged in current period. | |||||||||
Transfer from surplus onrevaluation ofproperty,plant andequipment | - | (1,459,856) | - | - | (1,459,856) | - | 1,459,856 | 1,459,856 | - |
on disposal of plant and machinery. | |||||||||
Balance as at June 30, 2024 | 129,963,040 | 214,382,376 | 7,079,978 | 2,274,287 | 223,736,641 | 7,000,000 | (76,546,633) | (69,546,633) | 284,153,048 |
Balance as at July 1, 2024 | 129,963,040 | 214,382,376 | 7,079,978 | 2,274,287 | 223,736,641 | 7,000,000 | (76,546,633) | (69,546,633) | 284,153,048 |
Net (loss)/profit for the half year ended December 31, 2024 | - | - | - | - | - | - | (11,211,070) | (11,211,070) | (11,211,070) |
Other comprehensive (loss) for the half year ended December 31, 2024 | - | - | 3,796,532 | - | 3,796,532 | - | - | - | 3,796,532 |
Transfer from surplus onrevaluation ofproperty,plant andequipment | - | (3,321,972) | - | - | (3,321,972) | - | 3,321,972 | 3,321,972 | - |
in respect of incremental depreciation charged in current period. | |||||||||
Balance as at December 31, 2024 | 129,963,040 | 211,060,404 | 10,876,510 | 2,274,287 | 224,211,201 | 7,000,000 | (84,435,731) | (77,435,731) | 276,738,510 |
The annexed notes from 1 to 14 form an integral part of this condensed interim financial information.
CHIEF EXECUTIVE | CHIEF FINANCIAL | DIRECTOR |
OFFICER | OFFICER |
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