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Contents

Company Information Directors' Report to the Shareholders Auditors' Review Report to the Members Balance Sheet Profit & Loss Account Statement of Comprehensive Income Cash Flow Statement Statement of Changes in Equity Notes to the Financial Statements

3 4 6 7 8 9 10 11 12

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Company information

Mr. Muhammad Anwar

Chairman & Chief Executive Director Director Director Director Director Director

Mr. Mr. Mr. Mr.

Ahmad Shafi Khalid Bashir Muhammad Arshad Muhammad Asif (Nominee NIT) Mr. Nasir Shafi Mr. T ariq Shafi

Al Baraka Islamic Bank B.S.C (E.C) Allied Bank Limited Faysal Bank Limited Habib Bank Limited Meezan Bank Limited MCB Bank Limited National Bank of Pakistan NIB Bank Limited Standard Chartered Bank (Pakistan) Limited United Bank Limited

Audit Committee

Mr. Khalid Bashir Mr. Nasir Shafi Mr. Ahmad Shafi Chairman Member Member

Mills & Head Office

Sargodha Road, Faisalabad, Pakistan T: + 92-041-111-105-105 F: + 92-041-111-103-104 E: [email protected]

Chief Financial Officer

Mr. Sadiq Saleem

Corporate Secretary

Mr. Naseer Ahmad Chaudhary

Head of Internal Audit

Mr. Muhammad Attiq ur Rehman

Registered Office

40-A, Off: Zafar Ali Road, Gulberg-V , Lahore, Pakistan T: + 92-042-111-245-245 F: + 92-042-111-222-245 E: [email protected]

Auditors

Riaz Ahmed & Company Chartered Accountants

Legal Advisor

Hassan & Hassan Mr. Raza Abbas Chaudhary Advocates Advocate

Share Registrar

Crescent Group Services (Pvt) Limited 306, 3rd Flr, Siddiq T rade Centre, 72-Main Boulevard, Gulberg, Lahore, Pakistan T: + 92-042-5787592 F: + 92-042-5787594 E: [email protected]

Stock Exchange Listing

The Crescent Textile Mills Limited is a listed Company and its shares are traded on all three Stock Exchanges in Pakistan. The Company's shares are quoted in leading dailies under personal goods sector.

www.ctm.com.pk

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Directors' Report to the Shareholders For the Half Year ended December 31, 2009

Your directors are pleased to present financial statements of the company for the 1st Half Year ended on December 31, 2009 duly reviewed by auditors. Highlights of 1st Half Year 2010: Sales revenue Operating profit Finance and other costs Earning per share grew by 9% (from Rs.5,265 million to Rs.5,750 million) jumped 314% (profit of Rs.125 million Vs loss of Rs.58 million) declined 49% (from Rs.681 million to Rs.346 million) improved from Rs.(0.41) to Rs.3.50

Business overview: In general business environment of the country remained challenging during this period as extended gas and power outages, increasing cost of doing business, depreciating Rupee and high interest rates badly affected over all performance of the industry. The influx of financial stimulus, interest rate cuts and other incentives given by world's advanced economies to weather out economic recession saw moderate recovery in the year 2009. These measures fueled money supply and commodity prices shot up in 2nd half of the year on rising demands. Resultantly shortfall in international cotton inventories and expected squeeze in country's crop size (12.800 million bales against requirement of 15.500 million bales) pushed local prices to new peak of Rs.4,800/ Md. with a similar rise in polyester prices but yarn prices rose significantly on growing international demand.

Declining trade deficit (29.46% YoY basis in 1st Half Year of FY2010) has improved macro indicators on one hand but at the same time reflect on the sharp fall in import of capital goods. The massive decline in imported capital goods is indicative of slow industrial growth which may badly damage future export growth. Foreign exchange reserves have remained stable mainly on IMF support funds and saw a subdued PKR depreciation @3.69% (from 81.30 on Jun-30-09 to 84.30 on Dec-31-09). Demand supply imbalances, passed through effects of gas/ power subsidies, increase in local petroleum prices and depreciating Rupee kept inflation rate high thus giving rise to input costs. Economic and industrial activities were dampened due to instability in the country in terms of politics and security coupled with serious energy crises. On higher Govt. borrowings and to stem rising inflation SBP continued to follow higher Policy Rate and kept industry's financial cost mounting, being the highly leveraged sector.

Financial and operational performance: Your company posted a sizeable growth in operational profit and earned Rs.124.750 million as against Rs.58.420 million loss in same period of FY 2009. This massive jump of 313.50% was achieved despite increase in input costs (mainly yarn and cloth purchases, increased to 62% from Rs.333.86 million in 2009 to Rs.540.799 million in 2010) and shipment expenses rose to 22.60% due effect of depreciating Rupee and increase in fuel costs on foreign freight but reduction in other operating expenses (73.10%) and finance cost (38.10%) helped to exhibit this transformation in operating results. Factors which contributed positively to current period's other operating and finance costs were reduction in exchange loss, no provisioning of bad debts and profit on CC transactions against loss in previous period. Moreover, 3% reduction in KIBOR during 1st Half of FY 2010 also helped reducing finance cost of company.

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Sales revenue of the company showed 9.20% growth which was significant considering 10% shrinkage in over all textiles exports of the country during this period. The operational performance was better by catching up last year's efficiency and achieved working of 182 days against 177 days in same period of last year. Some of the operations were curtailed and halted during the period due non availability of gas and power scarcity. In this grim and un-favourable business environment your management worked hard and mitigated adversaries and was able to put up this performance through close monitoring of operational efficiencies, cost controls and improving sales revenues. These sustained efforts continued to reflect in the working teams which achieved such an impressive performance. Financial results for the period in comparison of previous period are summarized below:

Millions Rs.

Sales revenue Cost of sales Gross profit Distribution, admin and other costs Other operating income Finance cost Profit / (loss) from operations Share of associate's profit Taxation Profit/ (loss) after tax

1HY10

5,750 5,051 699 360 74 288 125 95 48 172

1HY09

5,265 4,519 746 472 133 466 ( 59) 78 39 ( 20)

Change%

9 12 ( 6) ( 24) ( 44) ( 38) 314 22 23 960

Future outlook: In view of the factors affecting smooth operations of economic activities including growing energy crises, persistent high mark up rates, shortfall in cotton crop for industry's requirement, viability of textile industry remains challenging. On the other hand intense price competition in international market is major concern to absorb ever increasing input costs. Having shortfall in size of the crop coupled with international growing demand the prices of cotton are showing firmness and have crossed Rs.5,000/ Md. So, this level of price attaches an inherent risk in case demand or prices reverse in future period. Effective January 01,2010 gas rates have also hiked @18% which has further increased the input costs. Besides this Textile Policy measures have not been implemented. All in all we foresee a tough time for the industry.

Your management is cognizant of its responsibilities and endeavors to demonstrate its commitment by performing even better going forward. We appreciate efforts of all Team Members and contribution of Customers, Vendors and Banks because current performance of the company would not have been possible with out their support.

for and on behalf of the Board.

(Muhammad Anwar) Chairman & Chief Executive

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Auditors' Report to the Members on Review of Condensed Interim Financial Information Introduction

We have reviewed the accompanying condensed interim balance sheet of THE CRESCENT TEXTILE MILLS LIMITED as at December 31, 2009 and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim cash flow statement and condensed interim statement of changes in equity together with the notes forming part thereof (herein after referred to as "condensed interim financial information"), for the half year then ended. Management is responsible for the preparation and presentation of this condensed interim financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on this condensed interim financial information based on our review. The figures of the condensed interim profit and loss account and condensed interim statement of comprehensive income for the quarters ended December 31, 2009 and December 31, 2008 have not been reviewed and we do not express a conclusion on them as we are required to review only the cumulative figures for the half year ended December 31, 2009.

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 condensed interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, 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 significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.

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Faisalabad: February 25, 2010

Liaqat Ali Panwar (Riaz Ahmad & Company) Chartered Accountants

Condensed Interim Balance Sheet as at December 31, 2009 Equity and liabilities Share capital and reserves

Authorized share capital 100 000 000 (June 30, 2009: 100 000 000) ordinary shares of Rupees 10 each Issued, subscribed and paid up share capital Reserves

Note

Un-Audited December 31, 2009

Audited June 30, 2009

( Rupees in thousand )

1,000,000 492,099 2,028,146 2,520,245

1,000,000 492,099 1,769,738 2,261,837

Total equity Surplus on revaluation of operating fixed assets net of deferred tax Non-current liabilities

Long term financing

5

1,640,416

1,640,393

884,484

1,108,019

Current liabilities

Trade and other payables Accrued markup Short term borrowings Current portion of long term financing Provision for taxation

380,409 161,632 5,544,939 497,062 111,914 6,695,956 7,580,440 6 11,741,101 10,815,934 315,065 177,207 4,883,207 356,845 73,361 5,805,685 6,913,704

Total liabilities

Contingencies and commitments

Total equity and liabilities Assets Non-current assets

Property, plant and equipment Investment in an associate Long term investments Long term loans and advances Long term deposits and prepayments Deferred tax-asset

7 8 9

4,074,177 568,460 96,385 1,870,753 2,212 23,460 6,635,447

4,182,387 485,335 227,883 1,812,096 2,217 20,344 6,730,262

Current assets

Stores, spare parts and loose tools Stock-in-trade Trade debts Loans and advances Short term deposits and prepayments Interest accrued Other receivables Short term investments Cash and bank balances

188,494 1,547,756 2,701,664 262,727 1,036 7,806 99,599 278,878 17,694 5,105,654 11,741,101 174,116 940,421 2,562,348 239,191 1,422 22,081 61,909 65,253 18,931 4,085,672 10,815,934

10

Total assets

The annexed notes form an integral part of this condensed interim financial information.

(Muhammad Anwar) Chairman & Chief Executive

(Muhammad Arshad) Director

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Condensed Interim Profit and Loss Account (Un-Audited) for the Half Year Ended December 31, 2009

Note

Quarter ended Half year ended December 31, December 31, December 31, December 31, 2009 2008 2009 2008 (Rupees in thousand)

5,749,823 5,051,250 698,573 5,264,621 4,518,625 745,996 3,634,732 3,249,879 384,853 2,552,926 2,262,333 290,593

Sales Cost of sales Gross profit Distribution cost Administrative expenses Other operating expenses Other operating income Profit from operations Finance cost Share of profit of associate before taxation Profit before taxation Provision for taxation Profit / (loss) after taxation

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215,657 86,193 57,850 359,700 74,198 413,071 288,322 95,393 220,142 47,733 172,409

175,949 80,730 214,876 471,555 132,894 407,335 465,757 77,598 19,176 39,282 (20,106)

125,933 43,564 21,354 190,851 37,182 231,184 149,888 52,448 133,744 28,243 105,501

82,344 42,708 35,965 161,017 70,103 199,679 197,796 39,992 41,875 21,393 20,482

Earnings / (loss) per share - Basic and diluted (Rupees)

3.50

(0.41)

2.14

0.42

The annexed notes form an integral part of this condensed interim financial information.

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(Muhammad Anwar) Chairman & Chief Executive

(Muhammad Arshad) Director

Condensed Interim Statement of Comprehensive Income (Un-Audited) for the Half Year Ended December 31, 2009

Quarter ended Half year ended December 31, December 31, December 31, December 31, 2009 2008 2009 2008 (Rupees in thousand)

Profit / (loss) after taxation Other comprehensive income Surplus / (deficit) on remeasurement of available for sale investments Total comprehensive income / (loss) for the period

172,409 (20,106) 105,501 20,482

85,993 258,402

(408,281) (428,387)

(9,846) 95,655

(193,335) (172,853)

The annexed notes form an integral part of this condensed interim financial information.

(Muhammad Anwar) Chairman & Chief Executive

(Muhammad Arshad) Director

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Condensed Interim Cash Flow Statement (Un-Audited) for the Half Year Ended December 31, 2009

Note

Half year ended December 31, December 31, 2009 2008 (Rupees in thousand)

(202,498) (303,897) (48,057) (3,932) 5 (558,379) 403,673 (398,619) (37,397) (23) (69) (32,435)

Cash flows from operating activities

Cash (utilized in) / generated from operations Finance cost paid Income tax paid Dividend paid Workers profit participation fund paid Decrease / (increase) in long term deposits and prepayments Net cash utilized in operating activities Cash flows from investing activities Capital expenditure on property, plant and equipment Proceeds from sale of operating fixed assets Decrease in long term loans and advances Net cash used in investing activities

(23,171) 1,137 762 (21,272) (198,185) 24,142 787 (173,256)

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Cash flows from financing activities

Proceeds from long term financing Repayment of long term financing Short term borrowings - net Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period

(83,318) 661,732 578,414 (1,237) 18,931 17,694 35,000 (178,242) 457,682 314,440 108,749 8,572 117,321

The annexed notes form an integral part of this condensed interim financial information.

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(Muhammad Anwar) Chairman & Chief Executive

(Muhammad Arshad) Director

Condensed Interim Statement of changes in Equity (Un-Audited) for the Half Year Ended December 31, 2009

Share capital

Capital Reserve Fair Value

General

Reserves Revenue Reserves Dividend Accumulated Equalization Profit/(Loss) ( Rupees in thousand )

Sub total

Total Equity

Balance as at July 01, 2008 - (audited) Transfer from surplus on revaluation of operating fixed assets - net of deferred tax Total comprehensive loss for the half year ended December 31, 2008 Balance as at December 31, 2008 (un-audited) Transfer from surplus on revaluation of operating fixed assets - net of deferred tax Total comprehensive income for the half year ended June 30, 2009 Balance as at July 01, 2009 (audited) Transfer from surplus on revaluation of operating fixed assets - net of deferred tax Total comprehensive income for the half year ended December 31, 2009 Balance as at December 31, 2009 (un-audited)

492,099

350,507

1,773,643

30,000

(234,064)

1,920,086

2,412,185

-

-

-

-

4

4

4

- (408,281) 492,099 (57,774)

1,773,643

30,000

(20,106) (254,166)

(428,387) 1,491,703

(428,387) 1,983,802

-

-

-

-

4

4

4

492,099 -

78,905

-

30,000 -

199,126 (55,036) 6

278,031 1,769,738 6

278,031 2,261,837 6

21,131 1,773,643 -

492,099

85,993

-

30,000

172,409 117,379

258,402 2,028,146

258,402 2,520,245

107,124 1,773,643

The annexed notes form an integral part of this condensed interim financial information.

(Muhammad Anwar) Chairman & Chief Executive

(Muhammad Arshad) Director

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Selected Notes to the Condensed Interim Financial Information (Un-Audited) for the Half Year Ended December 31, 2009 1. The company and its activities

The Crescent Textile Mills Limited (the Company) is a public limited company incorporated in Pakistan under the Companies Ordinance, 1984. The registered office of the Company is located at 40-A, Off: Zafar Ali Road, Gulberg-V, Lahore. Its shares are quoted on all the Stock Exchanges in Pakistan. The Company is engaged in business of textile manufacturing comprising of spinning, combing, weaving, dyeing, bleaching, printing, stitching, buying, selling and otherwise dealing in yarn, cloth and other goods and fabrics made from raw cotton, synthetic fiber(s) and to generate, accumulate, distribute, supply and sale of electricity. The Company also operates a cold storage unit.

2.

Basis of preparation

This condensed interim financial information is un-audited but subject to limited scope review by the statutory auditors and is being submitted to shareholders, as required by section 245 of the Companies Ordinance, 1984. This condensed interim financial information has been prepared in accordance with the International Accounting Standard (IAS) 34, 'Interim Financial Reporting' as applicable in Pakistan and notified by the Securities and Exchange Commission of Pakistan (SECP). This condensed interim financial information should be read in conjunction with the annual published financial statements for the year ended June 30, 2009.

3.

Accounting policies and computation methods

The accounting policies and methods of computations adopted for the preparation of this condensed interim financial information are the same as applied in the preparation of the preceding audited annual published financial statements of the Company for the year ended June 30, 2009.

The following new and revised standards relevant to the Company have been adopted in the current period: IFRS 8 'Operating Segments' introduces the 'management approach' to segment reporting. It requires presentation and disclosure of segment information based on internal reports regularly reviewed by the Company's chief operating decision maker in order to assess each segment's performance and to allocate resources to them. The adoption of IFRS 8 has resulted in certain additional disclosures in the condensed interim financial information.

IAS 1 (Revised) 'Presentation of Financial Statements'. The revised standard prohibits the presentation of items of income and expenses (that is, 'non-owner changes in equity') in the statement of changes in equity, requiring 'non-owner changes in equity' to be presented separately from owner changes in equity. All 'non-owner changes in equity' are required to be shown in performance statement. Companies can choose whether to present one performance statement (the statement of comprehensive income) or two statements (profit and loss account and statement of comprehensive income). The Company has preferred to present two statements; a profit and loss account and a statement of comprehensive income. In this condensed interim financial information, comparative information has been re-presented in conformity with the revised

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standard. Since this change in accounting policy only impacts presentation aspects, there is no impact on earnings per share.

In addition to above, there are other new standards and amendments to published approved accounting standards which are mandatory for financial statements for annual periods beginning on or after January 01, 2009 and are also relevant to the Company. However the adoption of these new standards and amendments to , standards did not have any significant impact on this condensed interim financial

information of the Company, therefore, are not analyzed in detail.

4.

Critical accounting estimates and judgments

The preparation of this condensed interim financial information in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

During preparation of this condensed interim financial information, the significant judgments made by the management in applying the Company's accounting policies and the key sources of estimation and uncertainty were the same as those that applied in the preceding audited annual published financial statements of the Company for the year ended June 30, 2009.

Un-Audited December 31, 2009

Audited June 30, 2009

( Rupees in thousand )

5.

Long term financing

Financing from banking companies (Note 5.1) Term finance certificates (Note 5.2)

834,491 49,993 884,484 1,008,034 99,985 1,108,019

5.1

Financing from banking companies

Opening balance Add: Obtained during the period / year Less: Repaid during the period / year

1,264,894 (83,318) 1,181,576 1,386,279 90,183 (211,568) 1,264,894 (256,860) 1,008,034

Less: Current portion shown under current liabilities

(347,085) 834,491

5.2

Term finance certificates

Opening balance Less: Payments during the period / year

199,970 199,970 299,955 (99,985) 199,970 (99,985) 99,985

Less: Current portion shown under current liabilities

(149,977) 49,993

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6.

Contingencies and commitments Contingencies

Letter of guarantees of Rupees 111.142 million (June 30, 2009: Rupees 120.848 million) are given by the banks of the Company to Sui Northern Gas Pipeline Limited against gas connection and collector of customs against import of raw material and supplies.

-

Post dated cheques of Rupees 13.946 million (June 30, 2009: Rupees 19.176 million) are issued to custom authorities in respect of duties on imported material availed on the basis of consumption and export plans. If documents of exports are not provided on due date, cheques issued as security shall be encashable.

-

The Company is contingently liable to the sum of US $ 3.9 million to International Finance Corporation (IFC) and Euro 0.352 million to Deutsche Investitions UND Entwicklungs Gesellschaft MBH (DEG) in case of loan/markup installment payment default by Crescent Bahuman Limited (CBL), an associate under revised Project Finance Agreement (PFA) for restructuring of CBL (June 30, 2009: US $ 3.9 million to IFC and Euro 0.334 million to DEG).

-

The Company is contingently liable to the extent of 32.99 percent to a maximum amount of Rupees 20.02 million (June 30, 2009: Rupees 20.02 million) issued by an associate jointly with other investors to Sui Northern Gas Pipelines Limited against performance of a contract.

Commitments

Contracts for capital expenditure are Rupees 4.280 million (June 30, 2009: Rupees 8.985 million). Letters of credit other than for capital expenditure are Rupees 76.454 million (June 30, 2009: Rupees 51.872 million).

Un-Audited December 31, 2009

Audited June 30, 2009

7.

Property, plant and equipment

Operating fixed assets (Note 7.1) Capital work in progress (Note 7.2)

( Rupees in thousand )

4,073,096 1,081 4,074,177 4,180,127 2,260 4,182,387

7.1. Operating fixed assets

Opening book value Add: Additions during the period / year (Note 7.1.1) Less: Deletions during the period / year (Note 7.1.2) Less: Depreciation charged for the period / year Book value at the end of the period / year

4,180,127 24,350 4,204,477 662 4,203,815 130,719 4,073,096 4,216,100 264,249 4,480,349 24,358 4,455,991 275,864 4,180,127

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Un-Audited

Audited

December 31, June 30, 2009 2009 ( Rupees in thousand )

7.1.1 Additions during the period / year

Building on freehold land Plant and machinery Factory tools and equipment Gas and electric installations Vehicles Furniture and fixtures Office equipment

12,435 1,918 417 8,656 924 24,350 7,324 222,074 458 4,479 23,354 2,326 4,234 264,249

7.1.2 Book value of deletions during the period / year

Plant and machinery Gas and electric installations Vehicles Office equipment

5 208 425 24 662 20,948 3,410 24,358

7.2

Capital work in progress

Building Plant and machinery Advances to suppliers

456 625 1,081 2,167 93 2,260

8.

Investment in an associate

Unquoted Cost Share of post acquisition profit: As at the beginning of the period/year Share of post acquisition profit before taxation (Note 8.1) Share in charge for taxation As at the end of the period / year

269,264 216,071 95,393 (12,268) 83,125 299,196 568,460 269,264 50,764 184,823 (19,516) 165,307 216,071 485,335

8.1 Share of post acquisition profit of associate has been taken on the basis of un-audited accounts of the associate for

the half year ended December 31, 2009 (June 30, 2009: Audited accounts for the year ended June 30, 2009).

9.

Long term investments - available for sale

Quoted - Related parties Unquoted - Related parties Quoted - Others Unquoted - Others Less: Impairment loss charged to profit and loss account Add: Fair value adjustment

41,625 43,159 2,163 500 87,447 (3,866) 12,804 96,385 207,377 43,159 19,798 500 270,834 (64,082) 21,131 227,883

15

Un-Audited

Audited

December 31, June 30, 2009 2009 ( Rupees in thousand )

10.

Short term investments - available for sale

Quoted - Related parties Quoted - Others Less: Impairment loss charged to profit and loss account Add: Fair value adjustment

119,305 65,253 184,558 94,320 278,878 179,747 179,747 (114,494) 65,253

10.1 Certain long term investments of the Company have been classified as short term investments as the management

intends to dispose off such investments within a year.

Un-Audited Half year ended Quarter ended December 31, December 31, December 31, December 31, 2009 2008 2009 2008 ( Rupees in thousand )

11.

Cost of sales

Raw material consumed Cloth and yarn purchased Stores, spare parts and loose tools Packing materials Processing and weaving charges Salaries, wages and other benefits Fuel and power Repair and maintenance Insurance Depreciation Other factory overheads

1,380,381 540,799 254,414 163,411 135,984 301,975 447,943 23,151 7,933 122,927 3,865 3,382,783 1,373,647 333,864 257,124 146,671 118,985 273,530 454,934 22,872 7,761 124,789 3,396 3,117,573 738,403 306,845 131,668 93,055 70,715 159,059 228,379 13,398 3,823 61,574 2,238 1,809,157 641,554 177,606 132,957 78,780 64,571 145,572 188,394 14,492 3,946 62,906 1,360 1,512,138

Work-in-process: Opening stock Closing stock Cost of goods manufactured Finished goods: Opening stock Closing stock Cost of sales - purchased for resale

76,838 (99,126) (22,288) 3,360,495

75,605 (84,128) (8,523) 3,109,050

94,191 (99,126) (4,935) 1,804,222

97,236 (84,128) 13,108 1,525,246

684,570 (705,173) (20,603) 1,711,358 5,051,250

755,309 (764,687) (9,378) 1,418,953 4,518,625

710,627 (705,173) 5,454 1,440,203 3,249,879

689,948 (764,687) (74,739) 811,826 2,262,333

16

Half year ended December 31, December 31, 2009 2008 ( Rupees in thousand )

12.

Cash (utilized in) / generated from operations

Profit before taxation Adjustments for non-cash charges and other items: Depreciation Gain on disposal of operating fixed assets Impairment loss on investments Debit balances written off Provision for workers profit participation fund Provision for workers welfare fund Credit balances added back Share of profit of associate before taxation Income from loans and advances Finance cost Working capital changes (Note 12.1)

130,719 (475) 3,866 6,711 2,546 (95,393) (59,420) 288,322 (699,516) (202,498) 131,374 (1,415) 35,522 247 (20,538) (77,598) (90,724) 465,757 (58,128) 403,673 220,142 19,176

12.1 Working capital changes

(Increase) / decrease in current assets: Stores, spare parts and loose tools Stock-in-trade Trade debts Loans and advances Short term deposits and prepayments Interest accrued Other receivables

(14,378) (607,335) (139,316) 24,523 386 14,275 (37,690) (759,535) 60,019 (699,516) (36,295) 12,646 (648,657) 38,860 24,718 (1,732) 19,188 (591,272) 533,144 (58,128)

Increase in current liabilities: Trade and other payables

17

13.

Segment information

13.1 The Company has six reportable operating segments. The following summary describes the operation

Spinning: Weaving: Processing & Home Textile: Trading Power Generation: Cold Storage

Production of different quality of yarn using natural and artificial fibers. Production of different quality of greige fabric using yarn. Processing of greige fabric for production of printed and dyed fabric and Buying and selling of garments and home textile articles. Generation and distribution of power. Manufacturing of ice and warehousing of perishable goods.

Transactions among the operating segments are recorded at arm's length prices.

13.2

Spinning (Un-Audited) Half year ended

Weaving (Un-Audited) Half year ended

Processing & Home Textile (Un-Audited) Half year ended

December 31, December 31, December 31, December 31, December 31, December 31, 2009 2008 2009 2008 2009 2008

Sales Cost of sales Gross profit Distribution cost Administrative expenses

2,169,886 1,948,703 221,183 32,037 34,249 66,286

1,962,616 1,930,041 32,575 17,049 35,907 52,956

1,886,707 1,849,085 37,622 18,190 6,787 24,977

1,210,969 1,106,050 104,919 23,705 8,986 32,691

1,720,091 1,438,420 281,671 164,974 39,846 204,820

2,111,056 1,740,640 370,416 130,758 33,115 163,873

Profit / (loss) before taxation and unallocated income and expenses

154,897

(20,381)

12,645

72,228

76,851

206,543

Unallocated income and expenses Other operating expenses Other operating income Finance cost Share of profit of associate before taxation Provision for taxation Profit after taxation

18

in each of the Company's reportable segments:

manufacturing of home textile articles.

Inter segment sales and purchases have been eliminated from the total.

Trading (Un-Audited) Half year ended

Power Generation (Un-Audited) Half year ended

Cold Storage (Un-Audited) Half year ended

Elimination of Inter-segment transactions (Un-Audited) Half year ended

Total - Company (Un-Audited) Half year ended

December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008

1,807,413 1,712,042 95,371 -

1,661,390 1,475,916 185,474 3,904 3,904

476,920 415,855 61,065 456 5,008 5,464

495,326 442,956 52,370 533 2,722 3,255

3,963 2,302 1,661 303 303

3,021 2,779 242 -

2,315,157 2,315,157 -

2,179,757 2,179,757 -

5,749,823 5,051,250 698,573 215,657 86,193 301,850

5,264,621 4,518,625 745,996 175,949 80,730 256,679

95,371

181,570

55,601

49,115

1,358

242

-

-

396,723

489,317

(57,850) 74,198 (288,322) 95,393 (47,733) 172,409

(214,876) 132,894 (465,757) 77,598 (39,282) (20,106)

19

14.

Transactions with related parties

The related parties comprise associate, associated companies, staff retirement fund and key management personnel. The company in the normal course of business carries out transactions with various related Parties. Significant transactions with related parties are as under:

Un-Audited Half year ended Quarter ended December 31, December 31, December 31, December 31, 2009 2008 2009 2008 ( Rupees in thousand )

Associated Companies

Purchase of goods and services Sale of goods and services Processing income Insurance premium paid Interest income Company's contribution to Provident Fund Trust Remuneration paid to Chief Executive Officer, Directors and Executives

94,508 119,268 480 12,767 67,226 256,636 150,330 1,132 12,956 71,146 31,993 77,114 480 4,923 33,235 203,281 67,765 353 4,817 34,260

7,464

7,293

2,692

3,943

38,534

37,115

19,217

18,509

15.

Date of authorization

This condensed interim financial information was approved by the Board of Directors and authorised for issue on February 25, 2010.

16.

Figures

Comparative figures have been rearranged / reclassified, wherever necessary, for the purpose of comparison. However, no significant rearrangements / reclassifications have been made. Figures have been rounded off to the nearest thousand Rupees.

(Muhammad Anwar) Chairman & Chief Executive

(Muhammad Arshad) Director

20

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