september 30 2015 · mr. naveed sheikh mr. imran aslam mrs. nazish imran chairman member member...

2 0 1 5SEPTEMBER 30

1st Quarterly Report

SHAHZAD TEXTILE MILLS LIMITEDSHAHZAD TEXTILE MILLS LIMITEDSHAHZAD TEXTILE MILLS LIMITED

1st Quarterly Report September 30, 2015

SHAHZAD TEXTILE MILLS LIMITED


Contents

Company Information

Directors' Report

Balance Sheet

Profit and Loss Account

Statement of Comprehensive Income

Statement of Changes in Equity

Cash Flow Statement

Notes to the Accounts

1

2

3

4

5

5

6

7-9



SHAHZAD TEXTILE MILLS LIMITED1

Chief Financial Officer

Mr. Humayun Bakht

Company Secretary

Mr. Hassan-ud-Din Ansari

Auditors

Chairman

Chief Executive

Mian Parvez Aslam

Mr. Imran Aslam

Mr. Irfan Aslam

Mrs. Nazish Imran

Mrs. Sara Irfan

Mr. Naveed Sheikh

Mr. Humayun Bakht

Audit Committee

Mr. Naveed Sheikh

Mrs. Nazish Imran

Mrs. Sara Irfan

Chairman

Member

Member

Human Resource &Remuneration Committee

Mr. Naveed Sheikh

Mr. Imran Aslam

Mrs. Nazish Imran

Chairman

Member

Member

Board of Directors

Units # 1,3 & 4

Unit # 2

7th KM Sheikhupura Faisalabad Road, Sheikhupura.

Mills

Share Registrar

Hameed Majeed Associates (Pvt.) Ltd.

H.M. House, 7- Bank Square,

Lahore

J S Bank Ltd.

19-A Off. Zafar Ali Road,

Gulberg-V, Lahore.

Ph: +92 (42) 35754024-27

Fax: +92 (42) 35712313

E-mail: [email protected]

Web: www.shahzadtex.com

Bankers

Registered Office

Meezan Bank Limited.

United Bank Limited.

SHAHZAD TEXTILE MILLS LIMITED 2

Directors' Report

Dated: : 26-10- 2015

Lahore. Imran AslamChief Executive

for and on behalf of the Board


On behalf of the directors I am pleased to present the un-audited financial statement for the first quarter ended September 2015.

The company’s pretax loss is Rs. 34.207 million as compared to profit of Rs.19.662 million in corresponding quarter of previous year. Company’s sales of yarn for the current quarter is amply decreased to Rs. 967.345 million as compared to sales of Rs. 1,079.587 million in corresponding period of previous year.

Currently the textile sector of Pakistan passing through difficult time due to higher input cost and intense competition in export market have brought the Pakistan on toes. Many factors are clubbed to deteriorate the textile sector of Pakistan where high rates of power supply is on the top of the list. Imposition of heavy surcharges on power supply is also severely upsetting and a major cause of high input cost. The industries which are successfully competing in the international market are those which are fully supported by their countries.

The local market is also simultaneously effected and covered by black clouds of disappointment due to non availability of profitable rates. Many textile units are on the verge of closure of their operation due to heavy losses. We have also reduced production of one of our units from three working shifts to one foreseeing heavy losses.

The prices of raw material which are currently rotating around Cotton Rs.5100/- per maund. Polyester Rs. 125 and viscose Rs.206/- per kg accordingly. The raw material prices exhibited shaky trend through out the period under discussion.

Loss per share is Rs.2.45 as compared to earning per share Rs.0.48 in corresponding period of previous year.

We are thankful to our valued customers, bankers, share holders and staff members who have sincerely participated in all business activities of the company.

CONDENSED INTERIM BALANCE SHEET AS AT SEPTEMBER 30, 2015

CAPITAL AND LIABILITIES (Rupees 000) (Rupees 000)

Un-AuditedSeptember,30

2015

Note

3

Share Capital and Reserves Authorized share capital: 40,000,000 (June 30, 2015: 40,000,000) ordinary shares of Rs. 10 each Issued, subscribed and paid up share capital Reserves Surplus on Revaluation of Property, Plant and Equipment Non Current Liabilities Liabilities against subject to finance lease Staff retirement benefits Deferred liabilities Current Liabilities Trade and other payables Accrued mark up Short term borrowings Current portion of non current liabilities Provision for taxation Contingencies and Commitments Total Capital and Liabilities ASSETS Non Current Assets Property, plant and equipment Long term investment Long term deposits Current Assets Stores and spares Stock in trade Trade debts Advances, trade deposits, prepayments and other receivables Short term investments Tax refunds due from government Cash and bank balances Total Assets The annexed notes form an integral part of these financial statements.

Audited June ,30

2015

4

5

6

400,000

179,714 999,167

1,178,881

481,057

- 90,871

227,528 318,399

308,972 5,424

179,950 26,063

9,819 530,228

2,508,565

1,608,862 334,362

13,970 1,957,194

42,826 198,097 129,551

58,382 1,595

68,431 52,489

551,371

2,508,565

400,000

179,714 1,038,876 1,218,590

484,715

- 88,831

227,528 316,359

283,389 8,497

208,716 35,150 42,698

578,450

2,598,114

1,630,097 332,299

13,970 1,976,366

45,860 299,115 60,615

41,844 1,595

90,163 82,556

621,748

2,598,114



4

Condensed Interim Profit And Loss Account (Un-Audited) For The 1st Quarter Ended September 30, 2015



Sales Cost of sales Gross Profit Operating expenses: - Selling and distribution costs - Administrative expenses Operating (Loss)/Profit Finance cost Other operating charges Other operating income (Loss)/Profit before Taxation and Share of Associated Undertaking Share of net profit of associated undertaking (Loss)/Profit before Taxation Taxation (Loss)/Profit after Taxation Earnings per Share - Basic The annexed notes form an integral part of these financial statements.

967,345 (957,548)

9,797

(11,629) (29,836) (41,465)

(31,668)

(6,021) -

2,077 (3,944)

(35,612)

1,405

(34,207)

(9,819)

(44,026)

(2.45)

1,079,587 (1,005,939)

73,648

(10,372) (30,894) (41,266)

32,382

(13,423) (1,374)

732 (14,065)

18,317

1,345

19,662

(10,956)

8,706

0.48

(Rupees 000) (Rupees 000)

September,30 2015

Note

September,30 2014

7

Condensed Interim Statement Of Comprehensive Income (Un-Audited) For The 1st Quarter Ended September 30, 2015

Rupees (000)

Balance as at June 30, 2014

Transfer from surplus on revaluation of property, plantand equipment on incremental depreciation charged in current period - net of deferred tax

Share in realized surplus on revaluation of property, plant and equipment of associate (net of deferred tax)

Total Comprehensive income for the first quarter

Balance as at September 30, 2014

Balance as at June 30, 2015

Transfer from surplus on revaluation of property, plantand equipment on incremental depreciation charged in current period - net of deferred tax

Share in realized surplus on revaluation of property, plant and equipment of associate (net of deferred tax)

Total Comprehensive loss for the first quarter

Balance as at September 30, 2015

ShareCapital

SharePremium Reserve

UnappropriatedProfit

179,714

-

-

179,714

179,714

-

-

179,714

Total

(44,026)

-

-

(44,026)

(Rupees 000)

September 2015

(Loss)/Profit after Taxation Share in appreciation of investments available for sale of associate Other Comprehensive Income for the period Total Comprehensive (Loss)/Income for the period

8,706

-

-

8,706

(Rupees 000)

September 2014

Condensed Interim Statement Of Changes In Equity (Un-Audited) For The 1st Quarter Ended September 30, 2015

5,796

-

-

5,796

5,796

-

-

5,796

1,007,811

4,146

665

8,706

1,021,328

1,033,080

3,657

660

(44,026)

993,371

1,193,321

4,146

665

8,706

1,206,838

1,218,590

3,657

660

(44,026)

1,178,881

5



6



Condensed Interim Cash Flow Statement (Un-Audited) For The 1st Quarter Ended September 30, 2015


September,30 2015

September,30 2014

(34,207)

22,666 (1,405)

- 6,000

--

4,783 32,044 (2,163)

3,034 101,019 (68,936) (26,857)

4,721

25,583 38,564 36,401

(15,368) (3,960) (7,856)

- 9,217

(1,221) (210)

(1,431)

-

(9,087)

(28,766)

(37,853)

(30,067)

82,556

52,489

19,662

24,100 (1,345)

(63) 7,200

981 392

11,617 42,882 62,544

(1,229) (99,771) (66,477) (64,541) (2,461)

46,624 (187,855) (125,311)

(4,749) (5,155) (9,648)

(13,192) (158,055)

(2,441) (1,642) (4,083)

(20,000)

(7,991)

161,889

133,898

(28,240)

78,952

50,712

CASH FLOW FROM OPERATING ACTIVITIES (Loss)/Profit before taxation Adjustments for: - Depreciation - Shares of net profit of associates - Surplus on revaluation of investments - at fair value through profit and loss - Provision for gratuity - Provision for workers' profit (participation) fund - Provision for workers' welfare fund - Finance cost (Loss)/Operating profit before working capital changes Decrease / (increase) in current assets: - Stores and spares - Stock in trade - Trade debts - Advances, trade deposits, prepayments and other receivables - Tax refunds due from government (Decrease) / increase in current liabilities: - Trade and other payables Cash generated from /(used in) operations Income tax paid Gratuity paid Finance cost paid Worker (profit) participation fund Net Cash from / (used in) Operating Activities CASH FLOW FROM INVESTING ACTIVITIES Property, plant and equipment Capital work in progress Net Cash used in Investing Activities CASH FLOW FROM FINANCING ACTIVITIES Loan from directors repaid

Liabilities against assets subject to finance lease

Short term borrowings

Net Cash (used in) / from Financing Activities

Net Decrease in Cash and Cash Equivalents

Cash and cash equivalents at the beginning of the quarter

Cash and Cash Equivalents at the End of the Quarter

7 SHAHZAD TEXTILE MILLS LIMITED

Selected Notes To The Interim Financial Statements (Un-Audited) For The 1st Quarter Ended September 30, 2015

Note 1 The Company and its Operations Shahzad Textile Mills Limited is a Public Limited Company incorporated in Pakistan under the Companies Act, 1913 (now the Companies Ordinance, 1984). Its shares are quoted on Karachi and Lahore Stock Exchanges of Pakistan. The Company manufactures and deals in all types of Textile yarn. The registered office of the Company is situated at 19-A, Off Zafar Ali Road, Gulberg - V , Lahore.

Note 2 Basis of Preparation

2.1 These condensed interim financial statements have been prepared in accordance with the directives issued by the Securities & Exchange Commission of Pakistan (SECP) and are in compliance with the International Accounting Standard - 34 (Interim Financial Reporting) and being submitted to the shareholders as required by Section 245 of the Companies Ordinance, 1984. 2.2 The accounting policies and methods of computation of the these condensed interim financial statements are the same as those followed in the preparartion of annual audited financial statements for the preceding financial year ended on June 30, 2015.

2.3 These condensed interim financial statements are unaudited and are presented in Pak rupees, which is the Company's functional and presentational currency.

Note 3 Use of Estimates and Judgements Judgements and estimates made by the mangement in the preparation of these interim financial statements are the same as those applied in the preparation of the preceding annual audited financial statements of the Company for the year ended June 30, 2015.

Note 4 Liabilities against assets subject to finanace lease Opening balance Less: Repayments during the period / year Less: Current portion


35,150

(9,087) 26,063

(26,063) -

68,694

(33,544) 35,150

(35,150) -

Number in thousand

(Un-audited) September 30,

2015

(Audited) June 30,

2015

8SHAHZAD TEXTILE MILLS LIMITED


Note 5 Contingencies and Commitments Contingencies

There is no material change in the status of contingencies as reported in the annual audited financial statements for the preceding year ended June 30, 2015. Commitments

- Letters of credit and commitments / contracts for other than capital expenditure outstanding as at the balance sheet date amount to Rs. 4.67 million (June 30, 2015: Rs. 255.92). Note 6 Property, Plant and Equipment 6.1 Operating fixed assets Opening written down value Additions during the period / year (at cost) Disposals during the period / year (at cost) Depreciation charge for the period / year (net of disposal) 6.2 Capital work in progress Capital work in progress

Note 7 Cost of Sales

Raw materials consumed Stores and spares consumed Packing materials consumed Salaries, wages and other benefits Fuel and power Insurance Repairs and maintenance Other manufacturing expenses Depreciation Opening work in process Closing work in process Cost of goods manufactured Opening finished goods Closing finished goods

1,630,097 1,221

1,631,318 -

1,631,318

(22,666) 1,608,652

210 1,608,862

1,688,553 46,139

1,734,692 (9,233)

1,725,459

(95,362) 1,630,097

- 1,630,097



2015

(Audited) June 30,

2015

629,840 18,047 23,398

105,451 146,854

2,999 2,914 1,890

19,648 951,041

32,367 (30,207)

2,160 953,201

45,278 (40,931)

4,347 957,548

690,013 14,968 21,408

116,818 127,091

3,438 704

1,890 20,756

997,086 42,583

(37,480) 5,103

1,002,189

70,974 (67,224)

3,750 1,005,939


(Unaudited) September

30, 2015

(Unaudited) September

30, 2014

9


Note 8 Transactions with Related Parties The related parties comprise associated companies, staff retirement funds, directors and key management personnel. The Company in the normal course of business carries out transactions with various related parties. The Company enters into transactions with related parties on the basis of mutually agreed terms. Significant transactions with related parties are as follows:

- Purchase of goods and services - Sale of goods and services - Rent for leasehold Land - Loan from directors repaid - Mark up on loan from directors Note 9 General

9.1 These interim financial statements are authorized for issue on October 26, 2015 by the Board of Directors of the Company. 9.2 Figures have been rounded off to the nearest thousand rupees and 9.3 No significant re-arrangement / reclassification has been made.


2015


2014

67 52

108 -

707

132 64

108 (20,000)

1,520



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september 30 2015 · mr. naveed sheikh mr. imran aslam mrs. nazish imran chairman member member...

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