1st Quarter Ended September30, 2008

8/2/2019 1st Quarter Ended September30, 2008

1/16


2/16


3/16

1stQ

uarter

ended

Septem

be

r

30,

2008

01

Contents

Company Information 02

Vision & Mission Statement 04

Directors Report to the Shareholders 05

Balance Sheet 06

Profit & Loss Account 07

Cash Flow Statement 08

Statement of Changes in Equity 09

Notes to the Financial Statements 10


4/16

CHENABLIM

ITED

02

Company Information

Chief Executive Officer Mian Muhammad Latif

Directors Mian Muhammad Javaid Iqbal

Mr. Muhammad Naeem

Mr. Muhammad Faisal Latif

Mr. Muhammad Farhan Latif

Mr. Muhammad Rizwan Latif

Mr. Muhammad Zeeshan Latif

Mst. Shahnaz Latif

Mst. Tehmina Yasmin

Bankers/Financial Institutions

(In Alphabetic Order) Allied Bank Limited

Atlas Bank Limited

Askari Bank Limited

AlBaraka Islamic Bank, B.S.C. (E.C)

Bank Alfalah Limited

Citibank, N.A.

Faysal Bank Limited

First Credit & Investment Bank Limited

First Punjab Modaraba

Habib Bank Limited

Habib Metropolitan Bank Limited

KASB Bank Limited

National Bank of Pakistan

NIB Bank Limited

Orix Investment Bank (Pakistan) Limited

Pak Oman Investment Company Ltd.

Pak Kuwait Investment Company (Pvt.) Ltd.

Pak Libya Holding Company (Pvt.) Ltd.

Saudi Pak Commercial Bank Limited

Saudi Pak Agricultural & Investment Company (Pvt.) Ltd.

Standard Chartered Bank (Pakistan) Limited

The Bank of Punjab

United Bank Limited

Chief Financial Officer Mr. Muhammad Arif Shaikh F.C.A.

Company Secretary Mr. Muhammad Arshad


5/16

1stQ

uarter

ended

Septem

be

r

30,

2008

03

Company Information

Audit Committee

Mr. Muhammad Farhan Latif Chairman

Mst. Shahnaz Latif Member

Mst. Tehmina Yasmin Member

Auditors Avais Hyder Liaquat Nauman

Chartered Accountants

Legal Advisor Ch. Shahid Mehmood (Advocate)

Registered Office Nishatabad, Faisalabad.

Tel:041-8754472-8

Fax:041-8752400, 8752700

E-mail Address [email protected]

Website Address www.chenabgroup.com

Works - S pinning Unit - Toba Tek Singh.

- Weaving Unit - Kharianwala, District, Sheikhupura.

- Weaving Unit - Shahkot, District, Nankana Sahib.

- Weaving Unit - Gatti, Faisalabad.

- Weaving Unit - Khurrianwala, Faisalabad.

- Processing Unit

& Stitching Units - Nishatabad, Faisalabad.


6/16

CHENABLIM

ITED

04

Vision & Mission

Vision

To be a competitive and customer focused organizationwith continuing commitment to excellence and standards.

Mission Statement

To be the business house of first choice for customers.

To be a change leader.

To produce innovative, relevant and cost effective products.

Setting and maintaining high standards.

To earn profits by achieving optimum level of production by using state of the art

technologies.

To provide ideal working conditions to employees and to take care in their career

planning and reward them according to their skill and responsibility.

To meet social and cultural obligations towards the society being a patriotic and

conscientious corporate citizens.


7/16

1stQ

uarter

ended

Septem

be

r

30,

2008

05

The directors feel pleasure in presenting before you the un-audited financial statements

of the company for the 1st quarter of financial year 2008-09 ended on September 30, 2008.

Figures of the corresponding quarter of the last year are also presented for comparison.

The balance sheet figures as on June 30, 2008 and September 30, 2008 have been shown

as required by International Accounting Standards (IAS) 34 interim financial reporting.

SALES REENUE

The company has earned sales revenue of Rs.2.215 billion during 1st quarter of the year

as compared with the same quarter of the preceding year bringing home sales revenue

of Rs.2.023 billion reflecting an increase of 9.49%.

FINANCIAL RESULTS

Despite stiff competition in the international market, the company has been able to earn

net profit of Rs.5.574 million as against profit of Rs.19.500 million earned during the same

quarter of the preceding year.

BMR

The major BMR of the project is almost complete, the results of which shall be coming

forth gradually. If the circumstances are found favorable, the management of the company

expects good results out of the BMR having been made so far

FUTURE OUTLOOK

The management is making its all out efforts to utilize production capacity on optimum

level resulting an increase in sales volumes to a splendid level but the unfavorable factors

like frequent sui gas load shedding and electric shut down and continuous increase in

cost of doing business are coming in the way.

ACKNOWLEDGEMENT

For the support extended by the financial institutions, shareholders and its customers in

one way or the other and for the dedicated services rendered by its employees to the

cause of the company, the directors are thankful to all of them.

For and on behalf of

BOARD OF DIRECTORS

FAISALABAD (MIAN MUHAMMAD LATIF)

October 31, 2008 CHIEF EXECUTIVE

Directors Report to the Share Holders (Un-audited)As at September 30, 2008


8/16

CHENABLIM

ITED

06

Balance Sheet (Un-audited)As at September 30, 2008

September June30, 2008 30, 2008

Notes Rupees RupeesSHARE CAPITAL AND RESERVES

Authorised capital120,000,000 ordinary shares

of Rs.10/ each 1,200,000,000 1,200,000,000

80,000,000 cumulative preferenceshares of Rs.10/ each 800,000,000 800,000,000

Issued, subscribed and paid up capital 1,150,000,000 1,150,000,000Cumulative preference shares 800,000,000 800,000,000Capital reserves 526,409,752 526,409,752Revenue reserves 119,265,924 113,545,598

2,595,675,676 2,589,955,350

SURPLUS ON REVALUATION OFPROPERTY, PLANT AND EQUIPMENT 1,160,119,638 1,160,265,688

NONCURRENT LIABILITIESLong term financing 2,048,612,981 2,201,513,749Liabilities against assets

subject to finance lease 137,272,162 95,057,452Long term morabaha Deferred liability

Staff retirement gratuity 174,694,114 170,046,540

2,360,579,257 2,466,617,741CURRENT LIABILITIES

Trade and other payables 1,714,766,304 1,698,605,437Interest / markup payable 281,668,583 285,107,900Short term borrowings 6,765,719,905 6,880,562,531Current portion of :

Long term financing 1,058,137,578 1,041,769,900Liabilities against assetssubject to finance lease 35,770,102 81,827,892

Provision for taxation income tax 103,805,982 82,390,810

9,959,868,454 10,070,264,470CONTINGENCIES AND COMMITMENTS 4

16,076,243,025 16,287,103,249NONCURRENT ASSETS

Property, plant and equipment 7,577,153,225 7,613,039,206Long term deposits 23,223,563 22,223,563

7,600,376,788 7,635,262,769CURRENT ASSETS

Stores, spares and loose tools 1,112,216,720 1,175,542,491Stock in trade 4,312,687,125 4,442,600,098Trade debts 2,384,795,602 2,429,040,820Loans and advances 240,333,045 145,473,360Deposits and prepayments 43,259,696 31,823,107

Other receivables 133,575,082 135,968,236Tax refunds due fromGovernment 225,133,632 231,534,410

Cash and bank balances 23,865,335 59,857,958

8,475,866,237 8,651,840,480

16,076,243,025 16,287,103,249

The annexed notes form an integral part of these financial statements.

MUHAMMAD NAEEM MIAN MUHAMMAD LATIF(DIRECTOR) (CHIEF EXECUTIVE)


9/16

1stQ

uarter

ended

Septem

be

r

30,

2008

07

Profit and Loss Account (Un-audited)For the First quarter ended September 30, 2008

1st Quarter EndedSeptember September30, 2008 30, 2007

Notes Rupees Rupees

Sales 2,215,501,974 2,023,407,021

Cost of sales 6 1,678,221,028 1,619,111,571

Gross profit 537,280,946 404,295,450

Other operating income 527,018 211,264

537,807,964 404,506,714

Selling and distribution expenses 114,864,703 79,523,627

Administrative expenses 43,413,197 42,420,507

Other operating expenses 1,420,497 3,472,657

Finance cost 351,120,120 241,243,879

510,818,517 366,660,670

Profit for the period before taxation 26,989,447 37,846,044

Provision for taxation 21,415,172 18,345,090

Profit for the period after taxation 5,574,275 19,500,954

Earnings per share - Basic 7 0.048 0.009




10/16

CHENABLIM

ITED

08

Cash Flow Statement (Un-audited)For the First quarter ended September 30, 2008

1st Quarter EndedSeptember September30, 2008 30, 2007

Notes Rupees Rupees

a) CASH FLOWS FROM OPERATING ACTIVITIES

Profit for the period before taxation 26,989,448 37,846,044Adjustment for:

Depreciation on property, plant and equipment 67,262,927 66,930,906Provision for staff retirement gratuity 16,072,633 13,335,814Finance cost 351,120,120 241,243,879

(175,844)

Operating cash flows before working capital changes 461,269,284 359,356,643

Changes in working capital(Increase) / decrease in current assets

Stores, spares and loose tools 63,325,771 37,766,090Stock in trade 129,912,973 (336,439,373)Trade debts 44,245,218 (86,239,585)Loans and advances (71,543,936) 8,188,192Deposits and prepayments (11,436,589) (7,714,517)Other receivables 2,393,154 5,251,129Tax refunds due from Government 6,400,778 (6,573,456)

163,297,369 (385,761,520)Increase in current liabilities

Trade and other payables 22,024,146 42,070,276

185,321,515 (343,691,244)

Cash (used in) / generated from operating activities 646,590,799 15,665,399Income tax paid (23,315,749) (12,202,174)Finance cost paid (354,559,438) (232,975,355)

Staff retirement gratuity paid (11,425,059) (7,918,021)Net cash generated/(used in) from operating activities 257,290,553 (237,430,151)

b) CASH FLOWS FROM INVESTING ACTIVITIES

Additions in property, plant and equipment (32,364,721) (36,335,344)Proceeds from disposal of property, plant and equipment 987,774 313,620Long term deposites (1,000,000)

Net cash used in investing activities (32,376,945) (36,021,724)

c) CASH FLOWS FROM FINANCING ACTIVITIES

Long term loans obtained 90,000,000Repayment of:

Long term loans (136,533,071) (153,306,162)Liabilities against assets subject to finance lease (9,529,787) (18,403,335)

Increase in short term bank borrowings net (114,842,626) 488,334,580Payment of dividend (747) (193)

Net cash from financing activities (260,906,231) 406,624,890Net (decrease) / increase in cash and cash equivalents (a+b+c) (35,992,623) 133,173,015

Cash and cash equivalents at the beginning of the period 59,857,958 59,243,631

Cash and cash equivalents at the end of the period 23,865,335 192,416,646




11/16

1stQ

uarter

ended

Septem

be

r

30,

2008

09

Statement of Changes in EquityFor the Period ended September 30, 2008

BalanceasatJuly01,2007

1,150,000,000

800,000,000

120,000,000

63,552,610

342,857,142

276

,432,834

6,295,498

2,759,138,084

Incrementaldepreciationon

revaluedassetsfortheperiod

152,135

152,135

Profitfortheperiod

19,500,954

19,500,954

Transferredtopreference

sharesredemptionreserve

Tranferredtounappropriatedprofit

(200,000,000)

200,000,000

BalanceasatSep30,2007

1,150,000,000

800,000,000

120,000,000

63,552,610

342,857,142

76

,432,834

225,948,587

2,778,791,173



456,405

456,405

Profitfortheperiod

(115,292,228)

(115,292,228)

Dividendtocumulativepreference

shareholdersat9.25%perannum

(74,000,000)

(74,000,000)

BalanceasatJune30,2008

1,150,000,000

800,000,000

120,000,000

63,552,610

342,857,142

76

,432,834

37,112,764

2,589,955,350



146,050

146,050

Profitfortheperiod

5,574,275

5,574,275

Transferredtopreference

sharesredemptionreserve

BalanceasatSep30,2008

1,150,000,000

800,000,000

120,000,000

63,552,610

342,857,142

76

,432,834

42,833,090

2,595,675,676

Theannexednotesformanintegralp

artofthesefinancialstatements.

ShareCapital

CapitalReserves

RevenueR

eserves

Total

Bookdifferenceof

Preference

Unapprpriated

Issued,subscribed

Cumulative

Premiumon

capitalunder

shares

Generalr

eserve

profit

an

dpaidupcapital

preference

issueofordinary

schemeof

redumption

shares

shares

arrangementfor

reserve

amalgamationR

upees

MUHAMMADNAEEM

MIANMUHAMMADLATIF

(DIRECTOR)

CHIEFEXECUTIVE


12/16

CHENABLIM

ITED

10

Notes to the Financial Statements (Un-audited)For the First quarter ended September 30, 2008

1. STATUS AND ACTIVITIES

1.1 Chenab Limited (the Company) is incorporated as a public limited company under theCompanies Ordinance, 1984 and is listed on Karachi Stock Exchange. The registered officeof the Company is situated at Nishatabad, Faisalabad. The principal business of the Companyis export of all kinds of value added fabrics, textile made-ups, casual and fashion garmentsduly processed. The cloth processing unit is located at Nishatabad, District Faisalabad andstitching units are located at Nishatabad, District Faisalabad and Shorkot Road, District

Toba Tek Singh. Weaving units are located at Sheikhupura Road, Khurrianwala, DistrictFaisalabad, Jhumra Road, Gatti, District Faisalabad, Sheikhupura Road, Kharrianwala,District Sheikhupura and Shahkot, District Nankana Sahib. Spinning unit is located atShorkot Road, District Toba Tek Singh, in the province of Punjab.

1.2 Pursuant to schemes of arrangement approved by the Honourable Lahore High Court,Lahore, assets, liabilities and reserves of Faisal Weaving (Private) Limited, Latif Weaving

(Private) Limited and Chenab Finishing (Private) Limited were merged with the Companywith effect from December 31, 1998 and assets, liabilities and reserves of Chenab FibresLimited were merged with the Company with effect from April 01, 2003.

1.3 The condensed interim financial statements are presented in Pak Rupee, which is theCompany's functional and presentation currency.

2. BASIS OF PREPARATION

These condensed interim financial statements have been prepared under the "historical costconvention" except staff retirement gratuity carried at present value and certain property, plantand equipment carried at valuation.

These condensed interim financial statements are unaudited and are being submitted to theshareholders as required under Section 245 of the Companies Ordinance, 1984. These condensedinterim financial statements have been prepared in accordance with the requirements of theInternational Accounting Standard 34 "Interim Financial Reporting" as applicable in Pakistan andshall be read in conjunction with the published audited financial statements for the year endedJune 30, 2008.

3. ACCOUNTING POLICIES

The accounting policies and methods of computation followed in the preparation of thesecondensed interim financial statements are the same as those applied in the preparation of thepublished audited financial statements for the year ended June 30, 2008.

September June30, 2008 30, 2008Rupees Rupees

4. CONTINGENCIES AND COMMITMENTS

ContingenciesIn respect of bank guarantees issued on behalf

of the Company Sui Northern Gas Pipelines Limitedfor supply of gas 123,945,500 123,945,500

Collector of Customs against demand of customduty on humidification plant. 1,920,000 1,920,000The Company has claimed exemption from the duty.

C ol lec to r o f C us to ms , f or re le as e o f re tu rn ed go od s f or re -e xp ort 2 ,9 30 ,1 25 2 ,5 23 ,2 80

District Government against imposition of license fee 200,000 200,000

F or ei gn c us to m er s to s ec ur e fu lf il lm en t of c on tr ac tu al o bl ig at io ns 4 1,8 12 ,1 84 6 3, 88 5, 00 0

Demand of custom duty and sales tax notacknowledged in view of pending appeals 4,541,043 4,541,043

Post dated cheques issued in favour of Collector of Customsfor release of goods imported for reexport 58,719,081 42,625,522

Claim of workers' welfare fund not acknowledged.The Company is claiming exemption. 13,197,212 13,197,212

CommitmentsUnder letters of credit for :

Raw material and stores 313,756,474 410,072,016


13/16

1stQ

uarter

ended

Septem

be

r

30,

2008

11


5. ACQUISITIONS AND DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT AT COST

Quarter EndedSeptember 30, 2008.

Description Acquisition Disposal

Note Rupees Rupees

OwnedPlant and machinery 16,713,492 Electric installations 610,354 Factory equipment 174,545 Office equipment 316,865 Vehicles 60,210 (2,294,760)

17,875,466 (2,294,760)

1st Quarter Ended

September September

30, 2008 30, 2007

Rupees Rupees

6. Cost of sales

Cost of goods manufactured (Note 6.1) 1,587,809,549 1,406,451,472Finished goodsOpening stock 1,287,182,156 949,375,946Closing stock (1,196,770,677) (736,715,847)

90,411,479 212,660,099

1,678,221,028 1,619,111,5716.1 Cost of goods manufactured

Raw material consumed (6.1.1) 778,825,657 802,441,625

Salaries, wages and benefits 164,026,234 157,027,610Staff retirement benefits 12,905,426 10,135,218Stores and spares 98,025,759 95,255,002Dyes and chemicals 139,549,325 146,270,625Packing material 145,613,353 141,882,546Repairs and maintenance 4,356,888 2,970,311Fuel and power 130,508,338 127,218,705Insurance 5,651,352 5,032,527Research and development support (6.1.2) 174,985 940,665Depreciation / impairment loss 63,696,041 63,234,636Other 47,931,370 14,414,090

1,591,264,728 1,566,823,560Work in processOpening stock 2,594,938,814 2,396,465,262Closing stock (2,598,393,993) (2,556,837,351)

(3,455,179) (160,372,089)

1,587,809,549 1,406,451,4726.1.1 Raw material consumed

Opening stock 560,479,128 651,342,047Purchases including purchase expenses 735,868,984 1,191,169,008

1,296,348,112 1,842,511,055Closing stock (517,522,455) (1,040,069,431)

778,825,657 802,441,625


14/16

CHENABLIM

ITED

12


1st Quarter Ended

September September

30, 2008 30, 2007

Rupees Rupees

7. Earnings per share Basic

Profit for the period 5,574,275 19,500,954Less: Dividend on cumulative preference

shares at 9.25% per annum 18,500,000Profit attributable to ordinary

share holders 5,574,275 1,000,954

Weighted average number ofordinary shares outstandingduring the period 115,000,000 115,000,000

0.048 0.009

8. TRANSACTIONS WITH RELATED PARTIES

Relationship Nature of transaction

Associated undertakings Sales of goods 702,631,702 179,630,831Organizational exp. Received 296,191 93,750

key management personal Sales of vehicals 313,620

9. DATE OF AUTHORISATION FOR ISSUE

These condensed interim financial statements were authorised for issue on 31102008 by theBoard of Directors of the Company.

10. Generali ) There is no unusual item included in the condensed interim financial statements which

is affecting liabilities, assets, profit, cash flows or equity of the Company.

ii ) The provision for taxation and workers' profit participation fund are based on thesecondensed interim financial statements and are subject to adjustments in annual financialstatements.

iii) Figures have been rounded off to the nearest Rupees.




15/16


16/16

Date post:	06-Apr-2018
Category:	Documents
Upload:	haider-ali
View:	217 times
Download:	0 times

1st Quarter Ended September30, 2008

Documents