IDREES
TEXTILE MILLS LIMITED
CONDENSED INTERIM
FINANCIAL INFORMATION
FOR THE FIRST QUARTER
ENDED SEPTEMBER 30, 2024
(UN-AUDITED)
COMPANY INFORMATION
BOARD OF DIRECTORS
AUDIT COMMITTEE
HUMAN RESOURCE & REMUNERATION COMMITTEE
COMPANY SECRETARY
CHIEF FINANCIAL OFFICER
AUDITORS
BANKERS
REGISTERED OFFICE
MILLS
Mr. Rizwan Idrees Allawala | - Chairman |
Mr. S. M. Mansoor Allawala | - Executive Director / CEO |
Mr. Omair Idrees Allawala | - Executive Director |
Ms. Aamnah Mansoor | - Non - Executive Director |
Mr. Muhammad Zubair | - Non - Executive Director |
Syed Masud Arif | - Independent Director |
Ms. Azra Yaqub Vawda | - Independent - Director |
Ms. Azra Yaqub Vawda | - Chairperson |
Syed Masud Arif | - Member |
Ms. Aamnah Mansoor | - Member |
Syed Shahid Sultan | - Secretary |
Syed Masud Arif | - Chairman |
Ms. Aamnah Mansoor | - Member |
Ms. Azra Yaqub Vawda | - Member |
Syed Shahid Sultan | |
Mr. Muhammad Jawaid | |
M/s. BDO Ebrahim & Co. | |
Chartered Accountants |
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 Ltd.
6-C, Ismail Centre, 1st Floor,
Central Commercial Area,
Bahadurabad,
Karachi - 74800.
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. |
2
DIRECTORS' REPORT
The directors are pleased to present a brief review on the unaudited condensed interim financial statements of your Company for the first quarter ended September 30, 2024.
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.
During the first quarter of FY25, the Company's turnover amounted to Rs. 1,244 million as compared to Rs. 1,788 million in the same period of last year (SPLY). Gross profit amounted to Rs. 33.861 million compared to Rs. 209.332 million in SPLY. During the period under review, the Company's revenue and gross margin decreased by Rs. 544 million and Rs. 175 million respectively. Loss for the period amounted to Rs. 163.184 million compared to profit of Rs. 8.727 million in SPLY. Finance cost amounted to Rs. 149.428 million for the quarter (SPLY: Rs. 115.862 million). It increased by Rs. 33 million as compared to SPLY. Loss per share worked out to Rs. 8.22 (SPLY: Earning per share Re. 0.44).
Market demand remained sluggish during the quarter which resulted in a decline in the Company's turnover. Due to quality issues in the local raw cotton we need to import cotton which carries a premium in terms of price. As a result of expensive raw material and costly energy, there has been a sizable decline in gross margin. High cost of borrowing is also a major factor which has negatively impacted the bottom-line. There has been some reduction in the Policy Rate by SBP but due to the fact that KIBOR rate continues for basing of following quarter, full impact of this reduction, and any further reduction, will be discernable in the coming quarters.
There has been a substantial decline in Pakistan's cotton crop, based on arrival figures of Pakistan Cotton Ginners Association, as compared to corresponding period. In view of weather conditions, reduced acreage and prevailing economic situation, the experts are forecasting the size of cotton crop at under 6 million bales for the year 2024-25. Textile sector continues to remain uncompetitive due to lack of good quality local raw material, supply and demand imbalances, geo-political factors and high energy costs. There is dire need for regionally competitive energy price in order to compete in the export markets with countries like India, Bangladesh and Vietnam. The government should also immediately take measures for qualitative and quantitative improvement in Pakistan's cotton crop. Further cuts by SBP in Policy Rate, stable exchange rate and predictable policy framework are crucial factors for upturn in the economic momentum. Your Company's management is fully committed for further improvements in efficiencies and cost reduction.
The Board places on record its appreciation for the employees' valuable efforts and is thankful for the trust and support of all the stakeholders including vendors, bankers and customers of the Company.
Rizwan Idrees Allawala | S.M. Mansoor Allawala |
Chairman | Chief Executive |
Karachi. November 27, 2024 |
DIRECTORS' REPORT
UNCONSOLIDATED
CONDENSED INTERIM
FINANCIAL STATEMENTS
FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2024 (UN-AUDITED)
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)
AS AT SEPTEMBER 30, 2024
(Unaudited) | (Audited) | ||
September 30, 2024 | June 30, 2024 | ||
Note | --------- Rupees ---------- | ||
NON - CURRENT ASSETS | |||
Property, plant and Equipment | 4 | 3,347,590,644 | 3,374,850,004 |
Long-term deposits | 5,684,131 | 6,063,681 | |
3,353,274,775 | 3,380,913,685 | ||
CURRENT ASSETS | |||
Stores, spares and loose tools | 55,935,249 | 53,563,125 | |
Stock-in-trade | 5 | 1,826,254,189 | 1,928,979,120 |
Trade debts | 1,219,926,634 | 1,106,843,748 | |
Loans and advances | 45,484,748 | 89,784,901 | |
Deposits and short term prepayments | 14,255,739 | 34,303,985 | |
Other receivables | 202,034,638 | 188,203,848 | |
Other Financial Assets | 6 | 148,099,670 | 200,455,670 |
Cash and bank balances | 115,081,862 | 8,607,548 | |
Advance Tax | 37,276,121 | 47,238,331 | |
3,664,348,850 | 3,657,980,276 | ||
7,017,623,625 | 7,038,893,961 | ||
SHARE CAPITAL AND RESERVES | |||
Issued, subscribed, and paid-up capital | 198,528,000 | 198,528,000 | |
Capital reserves | |||
Equity portion of loan from related parties | 104,674,764 | 104,674,764 | |
Surplus on revaluation of Property, Plant & Equipments - net of tax | 919,580,955 | 919,580,955 | |
Revenue reserves | 1,117,738,715 | 1,280,923,111 | |
Total Equity | 2,340,522,434 | 2,503,706,830 | |
NON-CURRENT LIABILITIES | |||
Long-term finance | 594,403,176 | 486,099,774 | |
Deferred Government Grant | 67,950,930 | 74,480,586 | |
Deferred liabilities | 196,473,284 | 190,593,683 | |
858,827,390 | 751,174,043 | ||
CURRENT LIABILITIES | |||
Trade and other payables | 1,520,541,788 | 1,252,356,320 | |
Interest / mark-up accrued | 115,972,078 | 114,013,686 | |
Short term borrowings | 1,792,305,727 | 2,034,831,736 | |
Current portion of | |||
long term loan | 345,954,442 | 338,334,122 | |
deferred government grant | 26,879,564 | 27,857,022 | |
Unclaimed Dividend | 2,739,068 | 2,739,068 | |
Provision for taxation | 13,881,133 | 13,881,134 | |
3,818,273,800 | 3,784,013,088 | ||
CONTINGENCIES AND COMMITMENTS | 7 | ||
7,017,623,625 | 7,038,893,961 |
The annexed notes form an integral part of these financial statements.
Chief Executive | Chief Financial Officer | Director |
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UN-AUDTED)
FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2024
Three Months Ended
September 30, 2024 | September 30, 2023 | ||
Revenue from contract with customer - net | Note | …...….....…. Rupees …………… | |
1,244,398,745 | 1,788,030,937 | ||
Cost of goods sold | 8 | (1,210,537,986) | (1,578,698,880) |
Gross profit | 33,860,759 | 209,332,057 | |
Distribution cost | 11,024,879 | 22,678,665 | |
Administrative expenses | 26,764,094 | 28,279,121 | |
Other operating expenses | 9 | 1,748,123 | 22,237,004 |
Finance cost | 149,428,032 | 115,862,259 | |
188,965,127 | 189,057,049 | ||
Other income | 10 | 6,065,872 | 8,281,631 |
Profit/ (loss) before taxation, final tax & minimum tax | (149,038,496) | 28,556,639 | |
Levy: | |||
Final tax levy | (3,467,812) | (10,621,030) | |
Minimum tax differencial | (10,678,088) | (9,208,292) | |
(14,145,900) | (19,829,322) | ||
Profit/ (loss) before taxation | (163,184,396) | 8,727,317 | |
Taxation | - | - | |
Profit / (loss) for the period | (163,184,396) | 8,727,317 | |
Earnings per share - basic and diluted | (8.22) | 0.44 |
The annexed notes form an integral part of these financial statements.
Chief Executive | Chief Financial Officer | Director |
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF
COMPREHENSIVE INCOME (UN-AUDITED) FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2024
Three Months Ended
September 30, 2024 | September 30, 2023 | |
…...….....…. Rupees …………… | ||
Profit / (loss) for the period | (163,184,396) | 8,727,317 |
Other Comprhensive Inome / (loss) | - | - |
Total Comprehensive Income/(loss) for the period | (163,184,396) | 8,727,317 |
The annexed notes form an integral part of these financial statements.
Chief Executive | Chief Financial Officer | Director |
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)
FOR TEH FIRST QUARTER ENDED SEPTEMBER 30, 2024
Three Months Ended
September 30, 2024 | September 30, 2023 | |
A. CASH FLOWS FROM OPERATING ACTIVITIES | …...….....…. Rupees …………… | |
Profit before taxation | (163,184,396) | 8,727,317 |
Adjustments for : | ||
Depreciation on property, plant and equipment | 31,893,958 | 26,868,401 |
Provision for staff retirement gratuity | 7,175,700 | 8,277,480 |
Final tax levy | 3,467,812 | 10,621,030 |
Minimum tax differencial | 10,678,088 | 9,208,292 |
Finance cost | 149,428,032 | 115,862,259 |
Profit on Deposits | (6,583,329) | |
Gain on disposal of property, plant & equipment | - | (906,000) |
Realized gain on other financial assets | (399,006) | |
Operating cashflow before movement of working capital | 39,459,194 | 171,676,444 |
Changes in working capital | ||
(Increase) / decrease in current assets | ||
Stores, spares and loose tools | 5,177,675 | 1,577,745 |
Stock-in-trade | 102,724,931 | (258,190,260) |
Trade debts | (113,082,886) | (326,539,458) |
Loans and advances | 48,748,664 | (62,649,795) |
Deposits and short term prepayments | 20,048,246 | (15,912,404) |
Other receivables | (13,830,790) | 65,962,299 |
Increase / (decrease) in current liabilities | ||
Trade and other payable | 268,185,468 | 207,698,767 |
Cash generated from operations | 357,430,502 | (216,376,662) |
Finance cost paid | (147,469,640) | (82,203,580) |
Gratuity paid | (1,296,100) | (1,413,500) |
Income tax paid | (8,632,201) | (14,002,294) |
Long term deposits decrease/(increased) | 379,550 | (714,500) |
Net cash used in operating activities | 200,412,111 | (314,710,536) |
B. CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (12,184,397) | (47,456,820) |
Proceeds from disposal of property, plant & equipment | - | 1,500,000 |
Purchase of term deposit receipt - net | 52,356,000 | (10,000,000) |
Sale of Shares | - | 6,141,996 |
Profit on deposits received | - | 448,946 |
Net cash used in investing activities | 40,171,603 | (49,365,878) |
C. CASH FLOWS FROM FINANCING ACTIVITIES | ||
Obtained /(Paid) of long term finance | 108,416,608 | (24,983,490) |
Short term Borrowings obtained/(paid) - net | (225,647,393) | 365,047,073 |
Finance lease obtained / (paid) - net | - | (681,142) |
Dividend paid | - | - |
Net cash from financing activities | (117,230,785) | 339,382,441 |
Net decrease in cash and cash equivalents (A+B+C) | 123,352,930 | (24,693,973) |
Cash and cash equivalents at beginning of the period | (600,675,546) | (435,325,039) |
Cash and cash equivalents at end of the period | (477,322,616) | (460,019,012) |
Cash and cash equivalents | ||
Cash and bank balances | 115,081,862 | 36,991,026 |
Running finance | (592,404,478) | (497,010,038) |
(477,322,616) | (460,019,012) |
The annexed notes form an integral part of these financial statements.
Chief Executive | Chief Financial Officer | Director |
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE FIRST QUARTE ENDED SEPTEMBER 30, 2024
Surplus on | |||||
Issued, | revaluation of | Equity portion | |||
subscribed | property, plant | of loan from | |||
and paid up | and equipment | related | Unappropriated | Total | |
capital | net of tax | parties | profit | ||
.....……………………………..... Rupees …………………….………………….. | |||||
Balance at June 30, 2023 | 198,528,000 | 868,124,011 | 81,376,153 | 1,419,542,809 | 2,567,570,973 |
Transaction with shareholders | - | ||||
Changes in terms of loan | (2,852,847) | - | (2,852,847) | ||
Comprehensive Income | |||||
Profit for the period ended September 30, 2023 | - | - | - | 8,727,317 | 8,727,317 |
Other comprehensive income - net of tax | - | - | - | - | - |
- | - | - | 8,727,317 | 8,727,317 | |
Balance at September 30, 2023 | 198,528,000 | 868,124,011 | 78,523,306 | 1,428,270,126 | 2,573,445,443 |
Transfer to / from surplus on revaluation of property, | |||||
plant and equipment on account of | |||||
- revaluation surplus as at June 30, 2024 - net of tax | 72,807,603 | 72,807,603 | |||
- incremental depreciation charged thereon - net of tax | (56,339,344) | 56,339,344 | - | ||
- | - | - | |||
Transaction with related parties | |||||
Fair value effect of interest free loan | 26,151,458 | 26,151,458 | |||
Comprehensive Income | |||||
(Loss) for the period ended June 30, 2024 | - | (203,116,233) | (203,116,233) | ||
Other comprehensive income - net of tax | - | 34,988,685 | (570,126) | 34,418,559 | |
- | 34,988,685 | - | (203,686,359) | (168,697,674) | |
Balance at June 30, 2024 | 198,528,000 | 919,580,955 | 104,674,764 | 1,280,923,111 | 2,503,706,830 |
Transaction with shareholders | |||||
Unamortized portion of interest free loan | |||||
Amortized portion of interest free loan due to | |||||
change in terms of loan | |||||
Comprehensive Income | |||||
Profit for the period ended September 30, 2024 | - | - | (163,184,396) | (163,184,396) | |
Other comprehensive income - net of tax | - | - | - | - | - |
- | - | - | (163,184,396) | (163,184,396) | |
Balance as at September 30, 2024 | 198,528,000 | 919,580,955 | 104,674,764 | 1,117,738,715 | 2,340,522,434 |
The annexed notes form an integral part of these financial statements.
Chief Executive | Chief Financial Officer | Director |
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