70 YEARS AND BEYOND A LEGACY OF EXCELLENCE
1ST QUARTERLY REPORT
SEPTEMBER 30, 2023
CONTENTS
UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS | |
Company Information | 2 |
Directors' Review | 3 |
Unconsolidated Condensed Interim Statement of Financial Position | 4 |
Unconsolidated Condensed Interim Statement of Profit or Loss | 6 |
Unconsolidated Condensed Interim Statement of Comprehensive Income | 7 |
Unconsolidated Condensed Interim Statement of Changes in Equity | 8 |
Unconsolidated Condensed Interim Statement of Cash Flows | 9 |
Selected Notes to the Unconsolidated Condensed | |
Interim Financial Statements | 10 |
CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS | |
Directors' Review on Consolidated Condensed Interim Financial Information | 21 |
Consolidated Condensed Interim Statement of Financial Position | 22 |
Consolidated Condensed Interim Statement of Profit or Loss | 24 |
Consolidated Condensed Interim Statement of Comprehensive Income | 25 |
Consolidated Condensed Interim Statement of Changes in Equity | 26 |
Consolidated Condensed Interim Statement of Cash Flows | 27 |
Selected Notes to the Consolidated Condensed Interim Financial Statements | 28 |
QUARTERLY REPORT
1
COMPANY INFORMATION
Board of Directors
Mr. Tariq Sayeed Saigol | Chairman |
Mr. Taufique Sayeed Saigol | Chief Executive |
Mr. Sayeed Tariq Saigol | |
Mr. Waleed Tariq Saigol | |
Mr. Danial Taufique Saigol | |
Ms. Jahanara Saigol | |
Syed Muhammad Shabbar Zaidi | |
Mr. ulfikar Monnoo | |
Syed Mohsin Raza Naqvi | |
Audit Committee | |
Syed Muhammad Shabbar Zaidi | Chairman |
Mr. ulfikar Monnoo | Member |
Mr. Sayeed Tariq Saigol | Member |
Mr. Waleed Tariq Saigol | Member |
Human Resource & | |
Remuneration Committee | |
Mr. ulfikar Monnoo | Chairman |
Mr. Sayeed Tariq Saigol | Member |
Mr. Danial Taufique Saigol | Member |
Chief Financial Officer | |
Syed Mohsin Raza Naqvi | |
Company Secretary | |
Mr. Muhammad Ashraf | |
Chief Internal Auditor | |
Mr. eeshan Malik Bhutta | |
Auditors | |
M/s. Riaz Ahmad & Company, | |
Chartered Accountants |
Legal Adviser
Mr. Muhammad Younas,
Advocate High Court
Bankers of the Company
Al Baraka Bank (Pakistan) Limited
Allied Bank Limited
Askari Bank Limited
Bank Alfalah Limited
Bank Al-Habib Limited
Faysal Bank Limited
Habib Bank Limited
Habib Metropolitan Bank Limited
JS Bank Limited
MCB Bank Limited
Meezan Bank Limited
National Bank of Pakistan
PAIR Investment Company Limited
SAMBA Bank Limited
Silk Bank Limited
The Bank of Khyber
The Bank of Punjab
United Bank Limited
Share Registrar
Vision Consulting Limited 5-C, LDA Flats, Lawrence Road, Lahore Tel: (00-92-42)36283096-97 Fax: (00-92-42) 36312550 E-Mail: shares vcl.com.pk
Registered Office
42-Lawrence Road, Lahore.
Tel: (00-92-42)36302261-62
Fax: (00-92-42) 36368721
Mills:
Peshawar Road, Rawalpindi
Tel: (0092-51)5495328-32
Fax: (0092-51) 5495304
Website:
www.kmlg.com/ktml
Gulyana Road, Gujar Khan,
District Rawalpindi
Tel: (0092-51)3564472-74
8 K.M., Manga Raiwind Road, District Kasur
Tel: (0092-42)32560683-85,
Fax: (0092-42)32560686-87
Note: KTML's Financial Statements are also available at the above website.
2
KOHINOOR TEXTILE MILLS LIMITED
DIRECTORS' REVIEW
The Directors present un-audited accounts of the Company for the quarter ended 30 September 2023, in compliance with the requirements of Section 237 of the Companies Act, 2017.
REVIEW OF OPERATIONS
The performance of the Company in the period under review improved over the previous quarter, driven by an increase in exports, a one-off positive impact from rapid devaluation and savings from the Company's self-generation of power. However, these trends were adversely impacted by rapidly increasing costs.
The results of the Spinning divisions were similar to those of the previous quarter but increased sales and improved rates failed to entirely compensate for the increased costs of energy. Towards the end of the quarter however, the yarn market became increasingly pressured due to uncertainty about the cost of energy, raw material and a lack of liquidity. Due to recent revaluation of the Pakistani Rupee and ongoing uncertainty about demand and energy prices, the coming quarter may be a difficult one for the Spinning industry.
The results of the Weaving division showed significant improvement in the period under review, driven by an increase in fabric prices and higher levels of exports. However, due to high interest costs, the results remain negative. We expect the situation to improve going forward but pessimism remains evident in the Weaving industry owing to rapid revaluation of the rupee and increased energy costs during this period of uncertainty in local demand.
The results in Processing and Cut & Sew division are similar to those of the previous quarter but showed a promising increase in the total volume of exports. However, going forward some headwinds are being felt due to rapid increase in energy costs and the value of the Pakistani Rupee. Some of the increases from high energy and financial costs are expected to be offset by slightly lower yarn prices and competitive cotton rates. We continue to remain committed to producing higher value quality goods in which we see a better future.
The Company's power grid project has been completed, allowing for a further expansion of our solar energy generation. We expect that by the end of the third quarter, all three of the Company's sites will operate entirely on renewable energy during daylight hours. We are continuing to expand our water recycling and storage capacity and believe that by the end of the financial year, we will be in a position to fully reclaim and reuse all of the Company's waste and sewage water. Further investment is planned in converting steam generation from natural gas to biofuel which should be installed by the end of the financial year.
FINANCIAL REVIEW
During the period under review, Company's sales increased by 51% to Rs. 14,441 million (2022: Rs. 9,585
million), while cost of sales increased by 46% to Rs. 11,696 million (2022: Rs. 8,033 million). This resulted
in gross profit of Rs. 2,745 million (2022: Rs. 1,552 million). Operating profit for the period under review
stood at Rs. 2,092 million (2022: Rs. 954 million). The Company made an after-tax profit of Rs. 982 million
(2022: Rs. 477 million). Earnings per share for the quarter ended 30 September 2023 were at Rs. 3.41 against Rs. 1.59 for the corresponding period last year.
ACKNOWLEDGEMENT
The Directors are grateful to the Company's members, financial institutions and customers for their cooperation and support. They also appreciate hard work and dedication of all the employees working at the various divisions.
For and on behalf of the Board | |||
Lahore | Syed Mohsin Raza Naqvi | a | e a eed aig l |
October 27, 2023 | Director | Chief Executive |
QUARTERLY REPORT
3
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
As at 30 September 2023 | Un-audited | Audited | |||||
Note | |||||||
30 September | 30 June | ||||||
2023 | 2023 | ||||||
(Rupees in thousand) | |||||||
EQUITY AND LIABILITIES | |||||||
SHARE CAPITAL AND RESERVES | |||||||
th ri | ed share ca ital | 3,700,000 | 3,700,000 | ||||
370,000,000 (30 June 2023: 370,000,000) | |||||||
ordinary shares of Rupees 10 each | 300,000 | 300,000 | |||||
30,000,000 (30 June 2023: 30,000,000) preference | |||||||
shares of Rupees 10 each | |||||||
ss ed | s scri ed and aid | share ca ital | 4,000,000 | 4,000,000 | |||
269,299,456 (30 June 2023: 299,296,456) | 2,692,994 | 2,992,964 | |||||
ordinary shares of Rupees 10 each | |||||||
Reserves | |||||||
Ca ital reser es | |||||||
Share premium | 986,077 | 986,077 | |||||
Surplus on revaluation of freehold land | 3,861,708 | 3,861,708 | |||||
Own shares purchased for cancellation | - | (312,153) | |||||
Revenue reserves | 4,847,785 | 4,535,632 | |||||
General reserve | 1,450,491 | 1,450,491 | |||||
Unappropriated profit | 16,922,919 | 17,415,710 | |||||
18,373,410 | 18,866,201 | ||||||
tal e | it | 25,914,189 | 26,394,797 | ||||
LIABILITIES | |||||||
NON-CURRENT LIABILITIES | 5 | 6,467,813 | 6,408,355 | ||||
Long term financing | |||||||
Deferred government grants | 12,521 | 13,441 | |||||
Deferred income tax liability | 1,508,525 | 1,503,053 | |||||
CURRENT LIABILITIES | 7,988,859 | 7,924,849 | |||||
Trade and other payables | 4,345,276 | 4,331,413 | |||||
Accrued mark-up | 607,016 | 483,829 | |||||
Short term borrowings | 9,638,820 | 6,894,851 | |||||
Current portion of non-current liabilities | 1,419,402 | 1,338,436 | |||||
Unclaimed dividend | 32,197 | 32,264 | |||||
Taxation - net | 652,787 | 485,779 | |||||
16,695,498 | 13,566,572 | ||||||
tal lia | ilities | 6 | 24,684,357 | 21,491,421 | |||
CONTINGENCIES AND COMMITMENTS | |||||||
TOTAL EQUITY AND LIABILITIES | 50,598,546 | 47,886,218 | |||||
The annexed notes form an integral part of these unconsolidated condensed interim financial statements.
CHIEF EXECUTIVE OFFICER | DIRECTOR | CHIEF | OFFICER |
4
KOHINOOR TEXTILE MILLS LIMITED
Un-audited | Audited |
Note 30 September | 30 June |
2023 | 2023 |
(Rupees in thousand)
ASSETS | |
NON-CURRENT ASSETS | |
Property, plant and equipment | 7 |
Long term investments | |
Long term deposits |
CURRENT ASSETS
Stores, spare parts and loose tools
Stock-in-trade
Trade debts
Advances
Short term deposits prepayments
Other receivables
Short term investments
Cash and bank balances
19,852,722
11,078,733
61,628
30,993,083
1,123,658
11,183,298
4,966,465
198,068
96,846
1,499,428
294,198
243,502
19,218,251
11,078,733
61,628
30,358,612
1,069,324
8,863,674
4,430,883
277,849
30,361
1,744,173
467,867
643,475
19,605,463 17,527,606
TOTAL ASSETS | 50,598,546 | 47,886,218 | ||
CHIEF EXECUTIVE OFFICER | DIRECTOR | CHIEF | OFFICER |
QUARTERLY REPORT
5
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (Un-audited)
For the quarter ended 30 September 2023
30 September | 30 September |
2023 | 2022 |
(Rupees in thousand)
REVENUE
COST OF SALES
GROSS PROFIT
DISTRIBUTION COST ADMINISTRATIVE EXPENSES OTHER EXPENSES
OTHER INCOME
PROFIT FROM OPERATIONS
FINANCE COST
PROFIT BEFORE TAXATION
TAXATION
- Current
- Deferred
PROFIT AFTER TAXATION
14,440,995 | 9,585,251 | ||
(11,696,028) | (8,033,083) | ||
2,744,967 | 1,552,168 | ||
(380,881) | (335,700) | ||
(293,293) | (287,085) | ||
(94,058) | (57,941) | ||
(768,232) | (680,726) | ||
1,976,735 | 871,442 | ||
115,543 | 82,929 | ||
2,092,278 | 954,371 | ||
(805,036) | (286,123) | ||
1,287,242 | 668,248 | ||
(299,283) | (127,893) | ||
(5,471) | (63,721) | ||
(304,754) | (191,614) | ||
982,488 | 476,634 | ||
30 September | 30 September | ||
2023 | 2022 |
(Rupees)
EARNINGS PER SHARE - BASIC AND DILUTED | 3.41 | 1.59 | ||
The annexed notes form an integral part of these unconsolidated condensed interim financial statements.
CHIEF EXECUTIVE OFFICER | DIRECTOR | CHIEF | OFFICER |
6
KOHINOOR TEXTILE MILLS LIMITED
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (Un-audited)
For the quarter ended 30 September 2023
30 September | 30 September |
2023 | 2022 |
(Rupees in thousand)
PROFIT AFTER TAXATION
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to profit or loss
Items that may be reclassified subsequently to profit or loss
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
982,488
-
-
-
982,488
476,634
-
-
-
476,634
The annexed notes form an integral part of these unconsolidated condensed interim financial statements.
CHIEF EXECUTIVE OFFICER | DIRECTOR | CHIEF | OFFICER |
QUARTERLY REPORT
7
8 KOHINOOR TEXTILE MILLS LIMITED
UNCONSOLIDATED CONDENSED INTERIM
STATEMENT OF CHANGES IN EQUITY (Un-audited)
For the quarter ended 30 September 2023
Reserves | ||||||||||||
Capital reserves | Revenue reserves | |||||||||||
Share | Surplus on | Own shares | Unappropriated | Total | Total | |||||||
capital | Share | revaluation of | purchased for | Sub - Total | General | Sub - Total | reserves | equity | ||||
premium | freehold land | cancellation | reserve | profit | ||||||||
….………………...…..…… ( Rupees in thousand ) ….………………...…..…… | ||||||||||||
Balance as at 30 June 2022 - (audited) | 2,992,964 | 986,077 | 3,871,774 | - | 4,857,851 | 1,450,491 | 14,998,382 | 16,448,873 | 21,306,724 | 24,299,688 |
- t f r the eri d
Other c | rehensi e inc | e f | r the | eri | d | |||||||||||||||||||||||||
tal c | rehensi e inc | e f r the | eri | d | ||||||||||||||||||||||||||
2,992,964 | 986,077 | 3,871,774 | - | 4,857,851 | 1,450,49115,475,01616,925,507 | 21,783,358 | 24,776,322 | |||||||||||||||||||||||
Balance as at 30 September 2022 | - (un-audited) | |||||||||||||||||||||||||||||
O n shares | rchased d | ring the | ear f | r cancellati | n | |||||||||||||||||||||||||
r l s | n re | al ati n f in est | ent | r | ert |
- t f r the eri d
Other c | rehensi e inc | e f | r the | eri | d | ||||||||||||||||||||||||||
tal c | rehensi e inc | e f | r the | eri | d | 2,992,964 | 986,077 | 3,861,708 | (312,153) | 4,535,632 | 1,450,49117,415,71018,866,201 | 23,401,833 | 26,394,797 | ||||||||||||||||||
Balance as at 30 June 2023 - (audited) | |||||||||||||||||||||||||||||||
O | n shares | rchased d | ring the | eri | d | ||||||||||||||||||||||||||
f | r cancellati n |
- t f r the eri d
Other c | rehensi e inc e f | r the | eri | d | |||||||||||||||||||||||||||||||||||||||||
tal c | rehensi e inc | e f | r the | eri | d | ||||||||||||||||||||||||||||||||||||||||
Balance as at 30 September 2023 - (un-audited) | |||||||||||||||||||||||||||||||||||||||||||||
2,692,994 | 986,077 | 3,861,708 | - | 4,847,785 | 1,450,491 | 16,922,919 | 18,373,410 | 23,221,195 | 25,914,189 | ||||||||||||||||||||||||||||||||||||
he anne | ed n tes f r | an integral | art | f these | nc ns lidated c | ndensed interi | nancial state | ents |
CHIEF EXECUTIVE OFFICER | DIRECTOR | CHIEF | OFFICER |
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS (Un-audited)
For the quarter ended 30 September 2023
Note | 30 September | 30 September |
2023 | 2022 | |
(Rupees in thousand) |
CASH FLOWS FROM OPERATING ACTIVITIES
Cash sed in generated fr | erati ns | 8 |
Finance cost paid | ||
Income tax paid | ||
Net increase in long term deposits | ||
et cash sed in erating acti | ities |
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure on property, plant and equipment Proceeds from disposal of property, plant and equipment Proceeds from disposal of long term investment
Short term investments - net Interest received
Dividend received
et cash sed in in esting acti ities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long term financing
Repayment of long term financing
Own shares purchased for cancellation
Short term borrowings - net
Dividend paid
et cash fr | nancing acti ities |
NET DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINING OF THE PERIOD
CASH AND CASH EQUIVALENTS AT THE
END OF THE PERIOD
(271,192)
(681,849)
(132,275)
-
(1,085,316)
(961,771)
18,346
-
173,669
34,789
-
(734,967)
345,950
(206,446)
(1,463,096)
2,743,969
(67)
1,420,310
(399,973)
643,475
243,502
308,581
(252,552)
(190,476)
(11)
(134,458)
(1,039,007)
727
13,999
(108,254)
13,668
20,026
(1,098,841)
725,079
(260,934)
-
663,929
(167)
1,127,907
(105,392)
309,629
204,237
The annexed notes form an integral part of these unconsolidated condensed interim financial statements.
CHIEF EXECUTIVE OFFICER | DIRECTOR | CHIEF | OFFICER |
QUARTERLY REPORT
9
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Kohinoor Textile Mills Ltd. published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 09:25:13 UTC.