1st Quarterly Report September 30, 2016 - Shehzad...
Transcript of 1st Quarterly Report September 30, 2016 - Shehzad...
Contents
Company’s Information
Directors' Report - English
Directors’ Report - Urdu
Balance Sheet
Profit and Loss Account
Statement of Comprehensive Income
Cash Flow Statement
Statement of Changes in Equity
Notes to the Accounts
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2
3
4
5
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9-11
1st Quarterly Report September 30, 2016
SHAHZAD TEXTILE MILLS LIMITED
Company’s Information
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.
Chief Financial Officer
Mr. Humayun Bakht
Company Secretary
Mr. Hassan-ud-Din Ansari
Auditors
Mian Parvez Aslam Chairman
Mr. Imran Aslam Chief Executive
Mr. Irfan Aslam
Syed Raza Ali Bokhari
Mr. Humayun Bakht
Mr. Ahsan Ahmad Khan
Mr. Maqsood Shahid Najmi
Audit Committee
Syed Raza Ali Bokhari Chairman
Mr. Irfan Aslam Member
Mr. Maqsood Shahid Najmi Member
Human Resource &Remuneration Committee
Syed Raza Ali Bokhari Chairman
Mr. Imran Aslam Member
Mr. Ahsan Ahmad Khan Member
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
Board of Directors Bankers
Registered Office
Habib Metropolitan Bank Ltd.
J S Bank ltd.
National Bank of Pakistan.
Meezan Bank Limited.
United Bank Limited.
Bank Al-Falah (Islamic Banking)
SHAHZAD TEXTILE MILLS LIMITED1
1st Quarterly Report September 30, 2016
CONDENSED INTERIM FINANCIAL INFORMATION
OF
SHAHZAD TEXTILE MILLS LIMITEDFOR THE 1ST QUARTER ENDED
SEPTEMBER 30, 2016
Directors' Report
Dated: October 25, 2016
Lahore. Mr. 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 30, 2016.
The company’s pretax profit for the quarter ended September 30, 2016 is Rs. 17.094 million as compared to loss of Rs.34.207 million in corresponding quarter of previous year depicting Earning per share of Rs.0.46 as compared to loss per share Rs.2.45 in the corresponding period of previous year.
The company’s sales of yarn for the current quarter increased to Rs. 1062.199 million from sales of Rs. 967.345 million in the corresponding period of previous year.
In the current quarter, the company’s overall performance is better as is apparent from the above financial information. The local yarn market exhibited favorable environment which resulted in increase in local sales and also returned profitability.
The prices of raw materials are currently rotating around Rs.6500/- per maund for Cotton, Rs. 117 per kg for Polyester and Rs.215/- per kg Viscose. The raw material prices exhibited volatile trend throughout the period under discussion. The year 2016-17 also confronts short fall of cotton crop. The crop produced is also not of good quality. This may effect the prices and quality of the yarn in the coming period. In-spite of all these adversities management still determined to give better financial results from local and international market in the time to come.
As we have already discussed in the annual report that the management has worked out a plan to replace old gas generators which are in operation since 2004 with new ones in order to provide the mill un-interrupted supply of power both through direct supply of electricity and generating electricity from gas for constant functioning of mills. Initially management has established letter of credit with bank for import of 2 generators from Austria which are expected to reach in mill on February 2017 and this process shall continue till completion of generator replacement plan.
We are thankful and appreciate the efforts of valued customers, bankers, share holders, staff members and management who have sincerely participated in all business activities of the company and strived to maintain cordial relation by creating pleasant working environment.
SHAHZAD TEXTILE MILLS LIMITED2
1st Quarterly Report September 30, 2016
SHAHZAD TEXTILE MILLS LIMITED4
CONDENSED INTERIM BALANCE SHEET AS AT SEPTEMBER 30, 2016
(Rupees 000) (Rupees 000)
September 30,2016
(Un-audited)
Note
June 30, 2016
(Audited)
4
5
CAPITAL AND LIABILITIES Share Capital and Reserves Authorized capital: 40,000,000 (June 2016: 40,000,000) ordinary shares of Rs. 10 each Issued, subscribed and paid up capital 17,971,372 (June 2016: 17,971,372) ordinary shares of Rs. 10 each Reserves Surplus on Revaluation of Property, Plant and Equipment Non Current Liabilities Staff retirement benefits Deferred tax liability Current Liabilities Trade and other payables Accrued mark up Short term borrowings Provision for taxation Contingencies and Commitments ASSETS Non Current Assets Property, plant and equipment Long term investment in associate 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 the Government Cash and bank balances
400,000
179,714 1,041,439
1,221,153
501,395
94,815 229,047
323,862
242,740 4,640
138,834 47,989
434,203
-
2,480,613
1,561,391 349,531
13,970
1,924,892
44,376 244,414
70,719
106,510 1,184
77,520 10,998
555,721
2,480,613
400,000
179,714 1,029,325
1,209,039
505,320
93,332 230,791
324,123
229,138 4,807
320,591 37,341
591,877
-
2,630,359
1,576,075 344,015
13,970
1,934,060
49,408 363,391
45,988
77,381 1,184
70,796 88,151
696,299
2,630,359
The annexed notes form an integral part of this condensed interim financial information (un-audited).
1st Quarterly Report September 30, 2016
Condensed Interim Profit And Loss Account (Un-Audited) FOR THE 1st QUARTER ENDED SEPTEMBER 30, 2016
Sales Cost of sales Gross Profit Operating expenses: - Selling and distribution - Administrative expenses Operating Profit / (Loss) Finance cost Other operating expenses Other income Share of net profit of associate Profit / (Loss) before Taxation Taxation Net Profit / (Loss) for the Period Earnings per Share - Basic
1,062,199 (998,910)
63,289
(14,175) (28,602)
(42,777)
20,512
(7,690) (1,457)
213 5,516
(3,418)
17,094
(8,905)
8,189
0.46
967,345 (957,548)
9,797
(11,629) (29,836)
(41,465)
(31,668)
(6,021) -
2,077 1,405
(2,539)
(34,207)
(9,819)
(44,026)
(2.45)
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Note (Rupees 000) (Rupees 000)
1st Quarterly Report September 30, 2016
5SHAHZAD TEXTILE MILLS LIMITED
The annexed notes form an integral part of this condensed interim financial information(un-audited).
September 30,2016
September 30,2015
1st Quarterly Report September 30, 2016
6 SHAHZAD TEXTILE MILLS LIMITED
Condensed Interim Statement Of Comprehensive Income (Un-Audited) FOR THE 1st QUARTER ENDED SEPTEMBER 30, 2016
Net Profit / (Loss) for the Period Other Comprehensive Income for the Period Items that may be reclassified subsequently to profit and loss Share of associate's other comprehensive income - net of deferred tax Total Comprehensive Income / (Loss) for the Period
The annexed notes form an integral part of this condensed interim financial information(un-audited).
8,189
-
8,189
(44,026)
-
(44,026)
(Rupees 000) (Rupees 000)
September 30,2016
September 30,2015
7SHAHZAD TEXTILE MILLS LIMITED
Condensed Interim Cash Flow Statement (Un-Audited) FOR THE 1st QUARTER ENDED SEPTEMBER 30, 2016
(Rupees 000) (Rupees 000)
September 30,2016
September 30,2015
1st Quarterly Report September 30, 2016
CASH FLOW FROM OPERATING ACTIVITIES Profit / (Loss) before taxation Adjustments for: - Depreciation - Share of net profit of associate - Provision for gratuity - Exchange gain - Provision for workers' (profit) participation fund - Provision for workers' welfare fund - Finance cost Operating Profit / (Loss) 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 the Government Increase in current liabilities - Trade and other payables Net Cash generated from Operations Income tax paid Gratuity paid Finance cost paid Net Cash generated from Operating Activities CASH FLOW FROM INVESTING ACTIVITIES Property, plant and equipment purchased Capital work in progress Net Cash used in Investing Activities CASH FLOW FROM FINANCING ACTIVITIES Liabilities against assets subject to finance lease Short term borrowings Net Cash used in Financing Activities Net Decrease in Cash and Cash Equivalents Cash and cash equivalents at the beginning of the period Cash and Cash Equivalents at the End of the three Months Ended
The annexed notes form an integral part of this condensed interim financial information (un-audited).
17,094
21,373 (5,516)
8,650 171 919 368
6,283 32,248
49,342
5,032 118,977 (24,902) (24,328) (6,724)
12,313 80,368
129,710
(4,801) (7,167) (6,450)
111,292
(6,689) -
(6,689)
- (181,756) (181,756)
(77,153)
88,151
10,998
(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
Rupees (000)
Balance as at June 30, 2015 Total comprehensive loss for the first quarter Transferred from surplus on revaluation of property, plant and 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)
Transaction with owners Dividend paid during the period Balance as at September 30, 2015 Balance as at June 30, 2016 Total comprehensive Income for the first quarter Transferred from surplus on revaluation of property, plant and equipment on incremental depreciation charged in current period (net of deferred tax) Transaction with owners Dividend paid during the period Balance as at September 30, 2016
The annexed notes form an integral part of this condensed interim financial information (un-audited).
179,714
-
-
-
-
179,714
179,714
-
-
-
179,714
Condensed Interim Statement Of Changes In Equity (Un-Audited) FOR THE 1st QUARTER ENDED SEPTEMBER 30, 2016
ShareCapital
Share Premium Reserve
UnappropriatedProfit Total Equity
Particulars
5,796
-
-
-
-
5,796
5,796
-
-
-
5,796
1,033,080
(44,026)
3,657
660
-
993,371
1,023,529
8,189
3,925
-
1,035,643
1,218,590
(44,026)
3,657
660
-
1,178,881
1,209,039
8,189
3,925
-
1,221,153
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1st Quarterly Report September 30, 2016
SHAHZAD TEXTILE MILLS LIMITED
SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED) FOR THE 1st QUARTER ENDED SEPTEMBER 30, 2016
Note 1 General Information 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 Pakistan Stock Exchange Limited. The Company manufactures and deals in all types of 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 This condensed interim financial statements have been prepared in accordance with
the directives issued by the Pakistan Stock Exchange and is in compliance with the International Accounting Standard - 34 (Interim Financial Reporting).
2.2 This condensed interim financial information is presented in Pak rupees, which is the Company's functional and presentational currency. Figures have been rounded off to nearest thousand rupees, unless stated otherwise. This condensed financial information does not include all the information required for annual financial statements and therefore, should be read in conjunction with the annual financial statements for the year ended June 30, 2016.
Note 3 Accounting Policies The accounting policies and methods of computation of this condensed interim financial information is the same as those followed in the preparation of annual financial statements for the preceding financial year ended on June 30, 2016.
Note 4 Contingencies and Commitments Contingencies
- The Company has provided bank guarantees / post dated cheques in the favour of following parties:
- Sui Northern Gas Pipeline Limited - Custom Authorities
- The Company is contingently liable for Rs. 13.090 million (June 2016: Rs. 11.886 million) on account of electricity duty on self generation. However, the company has not admitted the said duty and case is pending before the Supreme Court of Pakistan.
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1st Quarterly Report September 30, 2016
47.84 7.10
54.94
47.84 7.10
54.94
Rupees in Million
September 30,2016
(Un-audited)
June 30,2016
(Audited)
SHAHZAD TEXTILE MILLS LIMITED
Commitments
- The Company's outstanding commitments / contracts as at the balance sheet date are as under:
Foreign bills of exchange purchased Letters of credit
Note 5 Property, Plant and Equipment 5.1 Operating fixed assets Opening written down value Additions during the period / year (at cost) Revaluation adjustment Disposals during the period / year (at written down value) Depreciation charge for the period / year Revaluation adjustment 5.2 Capital work in progress Capital work in progress
Note 6 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
1st Quarterly Report September 30, 2016 Note 4, Contingencies and Commitments - Contd…
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Rupees (000) Rupees (000)
664,761 21,091 22,980
119,566 132,408
2,052 7,699 2,989
18,352 991,898
29,336 (28,548)
788 992,686
52,961 (46,737)
6,224 998,910
629,840 18,047 23,398
105,450 146,854
2,999 2,914 1,890
19,648 951,040
32,367 (30,207)
2,160 953,201
45,278 (40,931)
4,347 957,548
1,576,075 6,689
- 1,582,764
- 1,582,764
(21,373) -
1,561,391
- 1,561,391
1,630,097 -
(201,203) 1,428,894
- 1,428,894
(90,644) 237,825
1,576,075
- 1,576,075
(Rupees 000) (Rupees 000)
September 30,2016
(Un-audited)
June 30,2016
(Audited)
51.17 116.32 167.48
85.48 33.89 119.37
Rupees in Million
September 30,2016
(Un-audited)
June 30,2016
(Audited)
September 30,2016
(Un-audited)
September 30,2015
(Un-audited)
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1st Quarterly Report September 30, 2016
SHAHZAD TEXTILE MILLS LIMITED
Note 7 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 balances and transactions with related parties are as follows: Transaction during the period Sargodha Jute Mills Limited
Directors
79
612
108
610
September 30,2016
(Un-audited)
September 30,2015
(Un-audited)
(Rupees 000) (Rupees 000)
Relationship
Associate
Related party Nature of Transaction
Purchase of materials, goods and services Sale of materials, goods and services Rent receivable / received Mark up on loan from directors
67
52
108
707
Note 8 Authorization of Interim Financial Information This condensed interim financial information (un-audited) is authorized for issue on October 25, 2016 by the Board of Directors of the Company. Note 9 General Corresponding figures have been re-arranged / reclassified, wherever necessary, to facilitate comparison. No significant re-arrangements have been made in this condensed interim financial information (un-audited).