IDREES
TEXTILE MILLS LIMITED
COMPANY INFORMATION
BOARD OF DIRECTORS
Mr. Rizwan Idrees Allawala Mr. S. M. Mansoor Allawala Mr. Omair Idrees Allawala Ms. Aamnah Mansoor
Mr. Muhammad Beyaz Aftab Syed Masud Arif
Ms. Azra Yaqub Vawda
- Chairman
- Executive Director / CEO
- Executive Director
- Non - Executive Director
- Non - Executive Director*
- Independent Director
- Independent - Director
COMPANY SECRETARY
Syed Shahid Sultan
CHIEF FINANCIAL OFFICER
Mr. Muhammad Jawaid
AUDITORS
M/s. BDO Ebrahim & Co. Chartered Accountants
AUDIT COMMITTEE
Ms. Azra Yaqub Vawda Syed Masud Arif
Ms. Aamnah Mansoor Syed Shahid Sultan
- Chairperson
- Member
- Member
- Secretary
HUMAN RESOURCE & REMUNERATION COMMITTEE
Syed Masud Arif
Ms. Aamnah Mansoor Ms. Azra Yaqub Vawda
- Chairman
- Member
- Member
BANKERS REGISTERED OFFICE
National Bank of Pakistan Bank Alfalah Limited
Habib Metropolitan Bank Ltd. Meezan Bank Ltd.
Bank of Punjab Ltd. BankIslami Pakistan Ltd. Askari Bank Limited
Dubai Islamic Bank Pakistan Ltd. Samba Bank Limited
Bank Al-habib Limited
6-C, Ismail Centre, 1st Floor, Central Commercial Area, Bahadurabad,
Karachi - 74800.
MILLS
Kot Shah Mohammad, Tehsil Nankana, District Nankana, Punjab. www.idreestextile.com
SHARES REGISTRAR
M/S. JWAFFS Registrar Services (Pvt) Ltd. 407-408, 4th Floor, Al-Ameera Centre, Shahrah-e-Iraq, Saddar, Karachi.
*Appointed w.e.f 24-2-2025 to fill the casual vacancy created due to resignation of Mr. Muhammad Zubair
The directors of your Company are pleased to present their review along with condensed interim financial statements for the half year ended December 31, 2024 duly reviewed by the external auditors.
The principal activity of the Company is manufacturing, processing and sale of all kinds of yarn and home textile. During the period under review, there has not been any material change in the Company's business activities.
FINANCIAL AND OPERATIONAL PERFORMANCE
During the first half of FY25, the Company's turnover amounted to Rs. 2,476 million as compared to Rs. 3,476 million in the same period of last year (SPLY). Gross profit amounted to Rs. 194 million compared to Rs. 372 million in SPLY. Loss for the period amounted to Rs. 179 million compared to Rs. 37 million in SPLY. Finance cost amounted to Rs. 272 million (SPLY: Rs. 280 million) showing decline of Rs. 8 million as compared to SPLY. Loss per share worked out to Rs. 9.01 (SPLY: Rs. 1.86).
Demand in the yarn market continued to remain sluggish during the period under review which negatively affected the Company's turnover. High cost of production has impacted the Company's gross profit margin. Decline in domestic cotton production and quality concerns compelled your Company to use imported cotton which is costlier. Significantly high tariff of energy is also a major factor in raising the production cost. The prevailing price of electricity and gas is significantly higher than the average cost in competing economies like Vietnam, India and Bangladesh. This is a direct blow to the competitiveness of Pakistani textiles in the global market. Moreover, noticeable increase in import of yarn and fabric under the Export Facilitaion Scheme (EFS) is a harsh blow to Pakistan's textile sector and especially spinning sector in terms of yarn and fabric pricing and volume. Local supply of yarn and fabric to exporters is subjected to sales tax @ 18% whereas import of yarn and fabric under EFS is exempt from tax.
EFS in the present shape is being utterly misused and needs to be reformed without delay.
On the monetary front, inflation continued to decline during the period which prompted the State Bank of Pakistan (SBP) to gradually slash the Policy Rate, but it is still higher than the regional competitors. Owing to monetary and fiscal reforms under the directives of IMF, the Country's macroeconomic indicators have demonstrated strong resilience and there has been much needed stability in the exchange rate.
FUTURE OUTLOOK
Lack of good quality local raw material, effects of ongoing global conflicts and unviable energy tariff continue to create uncertain business environment rendering the country's textile sector uncompetitive in the international market. Announcement of regionally competitive energy price is the need of the hour. Immediate measures are required for qualitative and quantitative improvement in Pakistan's cotton crop. Consistent decline in inflation numbers calls for further cuts in the Policy Rate. Predictable and long term policy framework is crucial for economic revival as the economy continues to grapple with structural challenges like energy sector inefficiencies, persistent circular debt, heavy and unfair taxation, under-utilised production capacities, escalation in gas price for CPPs and continuing trade deficit. The Government must also revisit the policy with respect to yarn and fabric import under EFS which is disadvantageous
for the textile sector, especially spinning sector and calls for immediate steps for providing a level playing field. It is a serious challenge for the country's yarn and fabric manufacturers. In the prevailing circumstances, your Company's management remains fully committed for process optimization, improvements in efficiencies and cost reduction.
ACKNOWLEDGEMENT
The Board extends its appreciation to the employees for their dedication and thanks the customers, bankers, suppliers and shareholders of the Company for their trust and support.
For and on behalf of the Board
Rizwan Idrees Allawala Chairman
S.M Mansoor Allawala Chief Executive
Karachi : March 25, 2025
UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED DECEMBER, 2024 (UN-AUDITED)
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)
AS AT DCEMBER 31, 2024
December 31, | June 30, |
2024 | 2024 |
Un-audited | Audited |
ASSETS | Note | ||
NON - CURRENT ASSETS | |||
Property, plant and equipment | 7 | 3,324,226,644 | 3,374,850,004 |
Long-term deposits | 5,588,631 | 6,063,681 | |
Investment in subsidiary | 8 | - | - |
3,329,815,275 | 3,380,913,685 | ||
CURRENT ASSETS | |||
Stores, spares and loose tools | 43,603,261 | 53,563,125 | |
Stock-in-trade | 9 | 2,239,868,582 | 1,928,979,120 |
Trade debts | 10 | ||
Loans and advances | 44,553,258 | 89,784,901 | |
Prepayments | |||
Other receivables | 11 | 284,346,398 | 188,203,848 |
Short term investment | 12 | 228,217,230 | 200,455,670 |
Advance tax | |||
Cash and bank balances | 13 | 18,548,454 | 8,607,548 |
4,063,137,520 | 3,657,980,276 | ||
TOTAL ASSETS | 7,392,952,795 | 7,038,893,961 | |
EQUITY AND LIABILITIES | |||
SHARE CAPITAL AND RESERVES | |||
Authorized share capital | |||
220,000,000 | 220,000,000 | ||
22,000,000 (June 30, 2024: 22,000,000) ordinary shares of Rs.10/- each | |||
Issued, subscribed and paid-up capital | |||
198,528,000 | 198,528,000 | ||
19,852,800 (June 30, 2024: 19,852,800) ordinary shares of Rs.10/- each | |||
Capital reserves | |||
Surplus on revaluation of property, plant and equipment - net of tax | 893,312,767 | 919,580,955 | |
Equity portion of loan from related parties | 157,711,726 | 104,674,764 | |
Revenue reserves | 1,128,276,955 | 1,280,923,111 | |
2,377,829,448 | 2,503,706,830 | ||
NON-CURRENT LIABILITIES | |||
Long-term financing | 14 | 551,084,630 | 486,099,774 |
Deferred capital grant | 15 | 61,748,766 | 74,480,586 |
Deferred taxation - net | 98,415,195 | 115,398,617 | |
Employee benefits | 87,875,766 | 75,195,066 | |
799,124,357 | 751,174,043 | ||
CURRENT LIABILITIES | |||
Trade and other payables | 16 | ||
Accrued mark-up | |||
Short-term borrowings | 17 | 2,071,555,396 | 2,034,831,736 |
Current portion of long-term finance | 14 | 339,709,716 | 338,334,122 |
Current portion of deferred capital grant | 15 | 25,659,032 | 27,857,022 |
Unclaimed dividend | |||
Provision for taxation | |||
4,215,998,990 | 3,784,013,088 | ||
TOTAL LIABILITIES | 5,015,123,347 | 4,535,187,131 | |
TOTAL EQUITY AND LIABILITIES | 7,392,952,795 | 7,038,893,961 | |
CONTINGENCIES AND COMMITMENTS | 18 |
------------ (Rupees) ------------
43,603,261 2,239,868,582 1,136,781,183 44,553,258 38,339,322 284,346,398 228,217,230 28,879,832 18,548,454 | 53,563,125 1,928,979,120 1,106,843,748 89,784,901 34,303,985 188,203,848 200,455,670 47,238,331 8,607,548 |
1,661,367,310 101,087,335 2,071,555,396 339,709,716 25,659,032 2,739,068 13,881,133 | 1,252,356,320 114,013,686 2,034,831,736 338,334,122 27,857,022 2,739,068 13,881,134 |
The annexed notes from 1 to 30 form an integral part of these unconsolidated condensed interim financial statements.
CHAIRMAN
CHIEF EXECUTIVE
CHIEF FINANCIAL OFFICER
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UN-AUDTED)
FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2024
Half year ended
Quarter ended
December 31, | December 31, | December 31, | December 31, |
2024 | 2023 | 2024 | 2023 |
Restated | Restated |
---------------N--o-t-e----------------- (Rupe-e-s-)-----------------------------------(-R--u-p- ees) --------------------------------------
Sales - net | 19 | 2,475,923,185 | 3,476,435,502 | 1,231,524,440 | 1,688,404,565 |
Cost of sales | 20 | (2,281,848,797) | (3,104,414,712) | (1,071,310,811) | (1,525,715,832) |
Gross profit | 194,074,388 | 372,020,790 | 160,213,629 | 162,688,733 | |
Distribution cost | |||||
Administrative expenses | |||||
(81,538,932) | (105,125,426) | (43,749,959) | (54,167,640) | ||
Operating profit | 112,535,456 | 266,895,364 | 116,463,670 | 108,521,093 | |
Finance cost | (272,027,022) | (279,962,480) | (122,598,991) | (164,100,221) | |
Other operating expenses | 21 | (25,574,928) | (33,348,669) | (23,826,805) | (12,614,615) |
(185,066,494) | (46,415,785) | (29,962,126) | (68,193,743) | ||
Other income | 22 | 18,013,375 | 17,509,165 | 11,947,503 | 10,730,484 |
Loss before taxation and levy | (167,053,119) | (28,906,620) | (18,014,623) | (57,463,259) | |
Levy: | |||||
Final Tax | |||||
Minimum tax differential | |||||
(28,949,343) | (37,283,447) | (14,803,443) | (17,454,125) | ||
Loss before taxation | (196,002,462) | (66,190,067) | (32,818,066) | (74,917,384) | |
Taxation: | |||||
Prior | |||||
Deferred | |||||
17,088,118 | 29,257,718 | 17,088,118 | 29,257,718 | ||
Loss for the period | (178,914,344) | (36,932,349) | (15,729,948) | (45,659,666) | |
Loss per share - basic and diluted (Rupees) | 23 | (9.01) | (1.86) | (0.79) | (2.30) |
(30,811,746) (50,727,186) | (45,610,254) (59,515,172) | (19,786,867) (23,963,092) | (22,931,589) (31,236,051) |
(8,101,916) (20,847,427) | (24,163,789) (13,119,658) | (6,335,872) (8,467,571) | (14,898,380) (2,555,745) |
104,695 16,983,423 | (758,682) 30,016,400 | 104,695 16,983,423 | (758,682) 30,016,400 |
The annexed notes from 1 to 30 form an integral part of these unconsolidated condensed interim financial statements.
CHAIRMAN
CHIEF EXECUTIVE
CHIEF FINANCIAL OFFICER
MENT OF COMPREHENSIVE INCOME | CONDENSED INTERIM UNCONSOLIDATED STATE FOR THE HALF YEAR ENDED DECEMBER 31, 2024 |
Half year ended
Quarter ended
December 31, | December 31, | December 31, | December 31, |
2024 | 2023 | 2024 | 2023 |
--N---o-t-e--------------- (Rupees) -------------------------------------- (Rupees) --------------
Loss for the period | (178,914,344) | (36,932,349) | (15,729,948) | (45,659,666) |
Surplus on revaluation of | ||||
property, plant and equipment - net of tax | - | 35,362,349 | - | 35,362,349 |
Total comprehensive loss | (178,914,344) | (1,570,000) | (15,729,948) | (10,297,317) |
The annexed notes from 1 to 30 form an integral part of these unconsolidated condensed interim financial statements.
CHAIRMAN / DIRECTOR
CHIEF EXECUTIVE
CHIEF FINANCIAL OFFICER
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)
FOR THE HALF YEAR ENDED DECEMBER 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before taxation | (196,002,462) | (66,190,067) | |
Adjustments for: | |||
Depreciation | 7.1 | 63,840,261 | 64,602,609 |
Provision for retirement benefit obligation | 14,351,400 | 16,554,960 | |
Final tax | 8,101,916 | 24,163,789 | |
Minimum tax differential | 20,847,427 | 13,119,658 | |
Gain on sale of property, plant and equipment | 7.1 | (950,000) | (3,084,333) |
Finance cost | 272,027,022 | 274,256,786 | |
Profit on deposits | - | (13,579,251) | |
Unrealized loss on other financial assets | - | (399,006) | |
Finance cost on unwinding of discount on long-term finance loan related parties | - | 5,705,694 | |
Operating cash flows before working capital changes | 182,215,564 | 315,150,839 | |
(Increase) / decrease in current assets | |||
Stores, spares and loose tools | 9,959,864 | 5,593,852 | |
Stock-in-trade | (310,889,462) | (802,948,827) | |
Trade debts | (29,937,435) | (301,337,509) | |
Loans and advances | 45,231,643 | (9,737,904) | |
Deposits and short-term prepayments | (34,939,550) | (9,561,913) | |
Other receivables | (96,142,551) | 83,946,595 | |
(416,717,491) | (1,034,045,706) | ||
Increase / (decrease) in current liabilities | |||
Trade and other payable | 458,862,336 | 391,129,731 | |
Cash generated from / (used in) operations | 224,360,409 | (327,765,136) | |
Income tax paid | (29,264,528) | (30,988,467) | |
Finance cost paid | (284,953,373) | (212,980,294) | |
Employees benefits paid | (1,670,700) | (1,770,500) | |
Net cash used in operating activities | (91,528,192) | (573,504,397) | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of property, plant and equipment | (13,216,901) | (52,102,127) | |
Long-term deposits | 475,050 | (1,510,000) | |
Proceed from disposal of property, plant and equipment | 950,000 | 8,300,000 | |
Other financial asset - net | (27,761,560) | (8,088,084) | |
Net cash used in investing activities | (39,553,411) | (53,400,211) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Long-term finance paid | (84,701,151) | (59,189,367) | |
Long-term finance obtained / (paid to) related party | 141,000,000 | (6,148,312) | |
Short-term borrowings - net | 85,808,953 | 539,516,655 | |
Proceeds from long-term finance | 48,000,000 | 28,000,000 | |
Lease rental paid - net | - | (1,362,282) | |
Net cash generated from financing activities | 190,107,802 | 500,816,694 | |
Net increase / (decrease) in cash and cash equivalents | 59,026,199 | (126,087,914) | |
Cash and cash equivalents at the beginning of the period | (600,675,546) | (435,325,039) | |
Cash and cash equivalents at the end of the period | 24 | (541,649,347) | (561,412,953) |
Note
The annexed notes from 1 to 30 form an integral part of these unconsolidated condensed interim financial statements.
CHAIRMAN
CHIEF EXECUTIVE
CHIEF FINANCIAL OFFICER
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