Transmission of Quarterly Report for the Period Ended 2025.03.31

Saif Group

First Quarterly Report (Un-audited) September 30, 2024

Term

it Term IN

Stable outlook

02 Company Information

BOARD OF DIRECTORS

Javed Saifullah Khan (Chairman)

Barrister Assad Saifullah Khan (Chief Executive Officer)

Anwar Saifullah Khan Hoor Yousafzai

Asif Saifullah Khan Rana Muhammad Shafi Abdul Rehman Qureshi Sardar Aminullah Khan

AUDIT COMMITTEE

Abdul Rehman Qureshi (Chairman)

Sardar Aminullah Khan Rana Muhammad Shafi

HR & REMUNERATION COMMITTEE

Abdul Rehman Qureshi (Chairman)

Barrister Assad Saifullah Khan Hoor Yousafzai

CHIEF FINANCIAL OFFICER

Abid Hussain

SR. DIRECTOR TECHNICAL

Badar Us Samee

GENERAL MANAGER MARKETING & SALES

Amir Badshah

COMPANY SECRETARY

Saad Gul Karori

HEAD OF INTERNAL AUDIT

Muhammad Adeel Raza

AUDITORS

Shinewing Hameed Chaudhri & Co., Chartered Accountants

LEGAL ADVISOR

Abdul Khaliq

BANKERS / DFIs

Askari Bank Limited

Al Baraka Bank Pakistan Limited

Bank Alfalah Limited

Bank Islami Pakistan Limited Dubai Islamic Bank Limited First Habib Modaraba Meezan Bank Limited National Bank of Pakistan

Pak Oman Investment Company Limited

Soneri Bank Limited

Saudi Pak Industrial & Agricaltural

Investment Company Limited

The Bank of Punjab The Bank of Khyber United Bank Limited

HEAD OFFICE

4th Floor, Kashmir Commercial Complex, Fazal-e-Haq Road, Blue Area

Islamabad

Phone : (051) 2604733-5

Fax : (051) 2604732

email : ktm@saifgroup.com / ca.ktml@saifgroup.com

REGISTERED OFFICE

APTMA House, Tehkal Payan, Jamrud Road, Peshawar

Phone : (091) 5843870, 5702941

Fax : (091) 5840273

email : Peshawar@saifgroup.com

MILLS

Saifabad, Kohat

Phone : (0922) 862309, 862065

Fax : (0922) 862057

email : ktmkht@saifgroup.com

SHARE REGISTRAR

Hameed Majeed Associates (Pvt.) Ltd., HM House, 7-Bank Square, Lahore Phone : (042)-37235081

(042)-37325082

Fax : (042)-37358817

email : info@hmaconsultants.com

WEB SITE

https://www.kohattextile.com

Dear Members,

The Directors of Kohat Textile Mills Limited are pleased to present the financial statements for the third quarter (nine months period) ended March 31, 2025.

Financial review

During the period under review, the company achieved a topline of Rs. 6.1 billion, reflecting a 9% increase compared to Rs. 5.6 billion in the corresponding period last year. Despite the unprecedented rise in gas prices, the company successfully maintained profitability, posting a pre-tax profit of Rs. 326 million, representing a 75% growth. This profitability was also impacted by effective working capital management and a significant reduction in finance costs. The plant operated at full capacity and the Company remained regular in debt servicing with all its banking partners.

Outlook

Economic indicators present encouraging signs, including a stable currency, current account surplus, declining inflation and interest rates, and strong remittance inflows. The sharper than expected drop in baseline inflation indicates the possibility of further policy rates cuts by the State Bank of Pakistan, which could stimulate demand driven growth in the near term.

The Company's new 3MWp solar energy project has become operational, increasing our total solar capacity to 5.1MWp-now sufficient to fully meet the factory's energy requirements.

To enhance efficiency and competitiveness, the Board has approved a Balancing, Modernization & Replacement (BMR) plan. This initiative involves the replacement of older machinery with state-of-the-art equipment, expected to boost revenues, lower costs, and enhance overall profitability. Letters of credit for the BMR machinery have been established, and shipments are scheduled to commence by June 25.

While the textile sector offers immense potential, sustained Government support remains critical to ensuring it is prioritized as a key industry.

Dividend

The Board of Directors is pleased to declare interim cash dividend of 10% for the period ended March 31, 2025.

Acknowledgement

The Directors sincerely thank the Company's members, financial institutions, and customers for their continued trust and support. We extend our deep appreciation to our employees for their dedication, loyalty and hard work. Their contributions remain central to the Company's progress, and we look forward to their continued commitment in the future.

For and on Behalf of the Board

ASSAD SAIFULLAH KHAN RANA MUHAMMAD SHAFI

Chief Executive Officer Director

Place : Islamabad Dated : April 29, 2025

2025, 29

AS AT MARCH 31, 2025

Assets

Non-Current Assets

Un-audited Audited

March 31, June 30,

2025 2024

Note (Rupees in thousand)

Property, plant and equipment 6

Long term investments Long term loans

Long term deposits

Current assets

Stores, spare parts and loose tools Stock-in-trade

Trade debts

Loans and advances

Deposits, prepayments and other receivables Taxation

Cash and bank balances

Equity and liabilities Share capital and reserves Authorised capital

22,000,000 ordinary shares of Rs.10 each

Issued, subscribed and paid up capital Revenue reserve

• unappropriated profit

  Capital reserve

• surplus on revaluation of property, plant and equipment Unrealised loss on financial assets at fair value

  through other comprehensive income

  Non-current liabilities Long term financing Long term deposits

  Deferred income - government grant Deferred liability - staff retirement benefits Deferred taxation - net

  Current liabilities

  Trade and other payables Contract liabilities Accrued mark-up / profit Short term borrowings

  Current portion of non-current liabilities

  Unpaid dividend Unclaimed dividend

  Provision for tax levies 7

  Contingencies and commitments 8

  
  
  

  The annexed notes 1 to 13 form an integral part of these condensed interim financial statements.

  
  
  

  ASSAD SAIFULLAH KHAN

  Chief Executive Officer

  RANA MUHAMMAD SHAFI

  Director

  ABID HUSSAIN

  
  
  

  Chief Financial Officer

  CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME(UN-AUDITED)

  FOR THE QUARTER AND NINE MONTHS PERIOD ENDED MARCH 31, 2025

  Quarter ended Nine months period ended

  March 31,	March 31,	March 31,	March 31,
  2025	2024	2025	2024

  Note (Rupees in thousand)

  1,961,220 (1,668,129)	1,924,369 (1,644,327)		6,108,648 (5,235,096)	5,602,726 (4,751,741)
  293,091	280,042		873,552	850,985
  (25,913)	(24,242)		(79,353)	(71,970)
  (51,559)	(44,067)		(144,538)	(128,829)
  (9,200)	(7,059)		(25,750)	(16,683)
  27,147	-		54,382	11,264
  233,566	204,674		678,293	644,767
  (104,467)	(143,093)		(352,209)	(459,363)
  129,099	61,581		326,084	185,404
  (24,515)	(24,054)		(76,373)	(70,043)
  104,584	37,527		249,711	115,361
  -	-		(1,862)	-
  (13,138)	835		(17,814)	13,298
  (13,138)	835		(19,676)	13,298
  91,446	38,362		230,035	128,659
  -	-		-	-
  91,446	38,362		230,035	128,659

  Sales - net

  Cost of sales Gross profit Distribution cost

  Administrative expenses Other expenses

  Other income

  Profit from operations

  Finance cost

  Profit before taxation

  and minimum tax levies

  Minimum tax levies 7

  Profit before taxation

  Taxation Income tax Deferred tax

  Profit after taxation

  Other comprehensive income

  Total comprehensive income

  Earnings per share

  11.06

• - - - - - - - - - - - - - - - - - Rupees - - - - - - - - - - - - - - - - - -

• basic and diluted

1.84

6.19

The annexed notes 1 to 13 form an integral part of these condensed interim financial statements.

ASSAD SAIFULLAH KHAN

Chief Executive Officer

RANA MUHAMMAD SHAFI

Director

ABID HUSSAIN

Chief Financial Officer

FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2025

Cash flows from operating activities

Profit for the period - before taxation and minimum tax levies Adjustments for non-cash charges and other items:

Depreciation on operating fixed assets and right-of- use assets (Gain) / loss on sale of operating fixed assets

Staff retirement benefits - gratuity (net)

Finance cost

Profit before working capital changes

Effect on cash flows due to working capital changes

(Increase) / decrease in current assets: Stores, spare parts and loose tools Stock-in-trade

Trade debts

Loans and advances

Deposits, prepayments and other receivables

Increase in current liabilities:

Trade and other payables

Contract liabilities

Cash generated from operating activities

Taxes paid

Long term loans - net

Net cash generated from operating activities

Cash flows from investing activities

Additions in property, plant and equipment Sale proceeds of operating fixed assets

Net cash used in investing activities Cash flows from financing activities Long term financing - obtained

- repaid

Nine months period ended

March 31, March 31,

2025 2024

(Rupees in thousand)

Lease liabilities - net Long term deposits

Short term borrowings - net

Dividend paid Finance cost paid

Net cash used in financing activities

Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents - at beginning of the period Cash and cash equivalents - at end of the period

The annexed notes 1 to 13 form an integral part of these condensed interim financial statements.

ASSAD SAIFULLAH KHAN

Chief Executive Officer

RANA MUHAMMAD SHAFI

Director

ABID HUSSAIN

Chief Financial Officer

FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2025

The annexed notes 1 to 13 form an integral part of these condensed interim financial statements.

ASSAD SAIFULLAH KHAN

Chief Executive Officer

RANA MUHAMMAD SHAFI

Director

ABID HUSSAIN

Chief Financial Officer

FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2025

1. LEGAL STATUS AND NATURE OF BUSINESS

   Kohat Textile Mills Limited (the Company) is a public limited Company incorporated in Pakistan during the year 1967 and its shares are quoted on Pakistan Stock Exchange. The Company is principally engaged in manufacture and sale of yarn.

   1. Geographical location and addresses of major business units including mills / plant of the Company are as under:

      Kohat Purpose

      Saifabad Mills / factory

      Peshawar

      KPTMA house, Tehkal Payan, Jamrud Road Registered office

      Islamabad

      4th Floor, Kashmir Commercial Complex, Head office Fazal-e-haq road, Blue Area

      Karachi

      Plot No. 36, New Karachi Cooperative Housing Marketing & Sales office Society Near Dolmen Mall Tariq Road

      Faisalabad

      P-17, Near Allied Bank Ltd, Montgomery Bazar, Marketing & Sales office

   2. The Company is a Subsidiary Company of Saif Holdings Limited (the Holding Company), which holds 77.98% (June 30, 2024: 77.98%) of the Company's issued, subscribed and paid-up capital.

2. Basis of preparation

   1. Statement of compliance

      These condensed interim financial statements (the 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);

      • Islamic Financial Accounting Standards (IFASs) issued by the Institute of Chartered Accountants of Pakistan as notified under the Act; and

      • Provisions of and directives issued under the Act.

        Where provisions of and directives issued under the Act, differ with the requirements of IAS 34 or IFASs, the provisions of and directives issued under the Act have been followed.

   2. These interim financial statements do not include all of the information required for annual financial statements and should be read in conjunction with the annual audited financial statements of the Company as at and for the year ended June 30, 2024. Selected explanatory notes are included to explain events and transactions that are significant to the understanding of the changes in the Company's financial position and performance since the last annual audited financial statements.

   3. These interim financial statements are un-audited and are being submitted to the members as required by section 237 of the Companies Act, 2017.

      NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

      FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2025

   4. Functional and presentation currency

      These interim financial statements are presented in Pak Rupees, which is also the Company's functional currency. All amounts have been rounded to the nearest thousand, unless otherwise stated.

3. Material accounting policy information

   The material accounting policies applied in the preparation of these interim financial statements are the same as those applied in the preparation of the financial statements of the Company for the year ended June 30, 2024, except as detailed in note 3.1:

   1. IAS 12 Application Guidance on Accounting for Minimum Taxes and Final Taxes (the Guidance) issued by ICAP

      The Institute of Chartered Accountants of Pakistan (ICAP) has issued the aforementioned Guidance through Circular No. 07 / 2024 dated May 15, 2024. In light of the said Guidance, as the minimum taxes and final taxes are not calculated on the 'taxable income' as defined in IAS 12 (Income taxes) but calculated on turnover or other basis (as per relevant sections of the Income Tax Ordinance, 2001 (the Ordinance); accordingly, minimum taxes and final taxes should be accounted for under IAS 37 (Provisions, contingent liabilities and contingent assets) / IFRIC 21 (Levies) as levies (though these are charged under tax law) and not under IAS 12 as income taxes. Based on the Guidance, the minimum taxes under the Ordinance are hybrid taxes, which comprise of a component within the scope of IAS 12 and a component within the scope of IFRIC 21.

      The aforesaid Guidance has been applied retrospectively by the Company and the comparative information has been restated, which has not affected current period or prior periods' net sales, profit after taxes and levies, equity and cash flows. Impact as of July 01, 2022 is not material to these interim financial statements. In accordance with the requirements of IAS 1 (Presentation of financial statements), the balances as at June 30, 2023 have been restated and third statement of financial position as of July 01, 2022 has not been presented due to immaterial impact.

      In the condensed statement of profit or loss for the nine months period ended March 31, 2025, in terms of the requirements of IFRIC 21 / IAS 37, minimum tax levies aggregating Rs.107.661 million, which were previously presented as taxation have now been reclassified as "minimum tax levies".

4. Changes In accounting standards, interpretations and pronouncements

   1. Standards and amendments to approved accounting and reporting standards that are effective

      There are certain amendments and interpretations to the accounting and reporting standards, which are mandatory for the Company's annual accounting periods which began on July 01, 2024. However, these do not have any significant impact on the Company's financial reporting.

   2. Standards and amendments to approved accounting and reporting standards that are not yet effective

      There are certain amendments and interpretations to the accounting and reporting standards that will be mandatory for the Company's annual accounting periods beginning on or after July 01, 2025. However, these will not have any material impact on the Company's financial reporting and, therefore, have not been disclosed in these interim financial statements.

5. Accounting estimates and judgements

The preparation of these interim financial statements requires 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 interim financial statements, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those applied to the financial statements for the year ended June 30, 2024.

FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2025

Note (Rupees in thousand)

Operating fixed assets 6.1

Capital work-in-progress 6.2

Stores held for capital expenditure

Factory buildings

Book value at end of the period

1. Provision for tax levies - net

   Balance at beginning of the period / year

   Add : provision made during the period / year

   Less : adjustment made against completed assessments

   NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

   FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2025

2. Contingencies and commitments

   1. Contingencies

      There has been no significant change during the period in the contingencies reported in the audited financial statements of the Company for the year ended June 30, 2024.

   2. Commitments

      1. Commitments against irrevocable letters of credit outstanding at the period-end were for Rs.715.413 million (June 30, 2024: Rs.303.939 million).

      2. The Company had entered into Ijarah arrangements for ten (June 30, 2024: twelve) vehicles with First Habib Modaraba. Aggregate commitments for rentals under Ijarah arrangements at the reporting dates were as follows:

         Un-audited Audited

         March 31, June 30,

         2025 2024

         - - - Rupees in '000 - - -

         12,170 14,838	20,711 34,507
         27,008	55,218

         Not later than one year

         Later than one year but not later than five years

3. Transactions with related parties

   1. Significant transactions executed with related parties during the period were as follows:

      Un-audited

      Relationship & Nine months period ended

      Nature of transactions March 31,

      2025 2024

      (Rupees in thousand)

      i) Holding Company - payment of dividend	16,220	-
      ii) Associated Companies - sale of raw materials and goods	206,272	-
      - purchase of fixed assets	350,858	16,061
      - purchase of raw materials	34,998	-
      - donations paid	4,500	4,820
      iii) Related parties - gas purchased	675,614	467,469
      - remuneration and other benefits	4,411	-
      iv) Key management personnel - remuneration and other benefits	29,380	30,680

      NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

      FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2025

   2. Period / year end trade and other payables balances included due to Associated Companies

4. Financial risk management

   1. Financial risk factors

      Un-audited Audited

      March 31, June 30,

      2025 2024

      2,944

- - - Rupees in '000 - - -

2,709

The Company's activities expose it to a variety of financial risks: market risk (including currency risk, other price risk and interest rate risk), credit risk and liquidity risk.

These interim financial statements do not include all financial risk management information and disclosures required in the annual financial statements and should be read in conjunction with the Company's audited financial statements for the year ended June 30, 2024.

There have been no changes in the risk management department or in any risk management policies since the year ended June 30, 2024.

1. 1. Fair value estimation

      During the period, there were no significant changes in the business or economic circumstances that affect the fair value of the Company's financial assets and financial liabilities. Furthermore, there were no reclassifications of financial assets.

2. Corresponding figures

   In order to comply with the requirements of IAS 34, the condensed interim statement of financial position has been compared with the balances of annual audited financial statements of the Company for the year ended June 30, 2024, whereas, the condensed interim statement of profit or loss and other comprehensive income, condensed interim statement of cash flows and condensed interim statement of changes in equity have been compared with the balances of comparable period of immediately preceding financial year.

3. Non adjusting events subsequent to the reporting date

   The Board of Directors of the Company in their meeting held on April 29, 2025 has declared an interim cash dividend of 10% (Rs. 1 per share) amounting Rs. 20.8 million for the period ended March 31, 2025.

4. Date of authorisation for issue

These interim financial statements were authorised for issue on April 29, 2025 by the Board of Directors of the Company.

ASSAD SAIFULLAH KHAN

Chief Executive Officer

RANA MUHAMMAD SHAFI

Director

ABID HUSSAIN

Chief Financial Officer

Saif Group

4th Floor, Kashmir Commercial Complex,

Fazal-e-Haq Road, Blue Area, Islamabad (Pakistan) Tel: +92-51-2604733-5, Fax: +92-51-2604732

https://www.kohattextile.com

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