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.