QUARTERLY REPORT
(UN-AUDITED)
Financial Statements
For The Third Quarter Ended
31st Mar 2023
CONTENTS
02 | DIRECTORS' REPORT | 06 | POSITIONSTATEMENT OF FINANCIAL | |
08 | STATEMENT OF | 09 | STATEMENT OF CHANGES IN EQUITY | |
COMPREHENSIVE INCOME | ||||
11 | NOTES TO THE FINANCIAL | |||
STATEMENTS | ||||
07 | PROFIT AND LOSS ACCOUNT |
10 | CASH FLOWS STATEMENT |
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DIRECTORS' REPORT
FOR THE 3rd QUARTER ENDED 31st MARCH, 2023
Dear Members,
The Directors would like to present the accounts of the Company for the 3rd quarter ended March 31st, 2023. The overall Performance of the company is summarized below:
Net Turnover Gross profit Operating Profit Financial & Others Profit before Taxation Taxation
Profit after Taxation Earnings per share Gross Margin % Operating Profit % Profit after Tax %
March
2023
16,483,665,418
2,909,810,690
2,380,620,658
(1,167,136,284)
1,213,484,374
(233,305,948)
980,178,426
159.04
17.65%
14.44%
5.94%
March
2022
14,912,106,637
4,614,934,709
4,157,623,323
(371,444,565)
3,786,178,758
(152,812,898)
3,633,365,860
589.55
30.95%
27.88%
24.37%
Operating Result
During the period under review, the company has made a profit of Rs. 980.178 million as compared to Rs.3,633.365 million during the same period of last year. Net Turnover showed an increase of 1,571.559 million due to increase in selling prices. There is decrease in gross profit by 13.30% due to higher cost of raw material and other inputs. The net profit after tax has decreased by 18.43% due to increased cost of sales and administrative expenses. The financial charges have increased due to increase in kibor/sbp rates.
Future Outlook
Cotton yarn exports registered a negative growth of 36.92% in July-March 2023, remaining at $573.084 million compared to $908.487 million during the same period last year. High cost of financing and high inflation also had a serious impact on the results.
The future outlook has become uncertain due to the political instability and uncertainty.
Questions like:
We will have to regain the trust of our buyers to place their orders in Pakistan and will we get the space to freely open letters of credit for raw materials and spares.
Our cotton crop has been reduced to half, therefore in order to run the whole industry, we will need to import raw cotton and polyester etc. Where and how will we arrange the foreign exchange for all these activities.
On the other side, we hope the discount rates will soon come down to normal levels so that businesses can function comfortably and additional burden can be reduced.
Despite the odds, we are hopeful Inshaallah that the last quarter will still be profitable as yarn prices are still supportive.
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Acknowledgements
We are grateful to Almighty Allah, who helped us to come up to the expectation of our valued shareholders who had reposed their confidence in us and are also pleased to record our appreciation for a dedicated hard working management, staff members & workers without which it could not have been possible for us to deliver these results. Your Board would also like to thank our valued customers, bankers for their continued trust in the company.
ON BEHALF OF THE BOARD OF DIRECTORS
Mr. Yasin Siddik | Lubna Asif Balagamwala |
Executive Director | Director |
27th April 2023, Karachi |
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