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Samin Textiles Limited Interim Financial Report for the quarter ended September 30, 2017
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Samin Textiles Limited
Interim Financial Report
for the quarter ended
September 30, 2017
Company Information
Legal Advisor
Imtiaz Saddiqui & Associates
Leading Banks
National Bank of Pakistan
Askari Bank Limited
Bank Alfalah Limited
Summit bank Limited
NIB Bank Limited
Allied Bank Limited
Pak Libya Holding Company (Private) Limited
Pak Oman Investment Company Limited
Soneri Bank Limited
Shares Registrar
Corplink (Pvt) Limited
Wings Arcade,
1-K, Commercial Model Town,
Lahore, Pakistan.
Tel: 92 - 42 -35839182
Fax: 92 - 42 - 35869037
Registered/Head Office
50-C, Main Gulberg,
Lahore, Pakistan.
Tel: 92 - 42 - 35753761
Fax: 92 - 42 - 35753688
Mills
th8 Kilometer,
Manga - Raiwaind Road,
District Kasur, Pakistan.
Board of Directors
Non-Executive Directors
Mrs. Mehvash Amin Chairman
Mr. Shehryar Amin
Mr. Tariq Jilani
Mr. Jamil Masud
Executive Directors
Mr. Jehanzeb Amin Cheif Executive
Mr. Safder Hussain Tariq
Independent Director
Mr. Qamber Hamid
Audit Committee
Mr. Qamber Hamid Chairman
Mr. Jamil Masud Member
Mr. Tariq Jilani Member
Human Resource & Remuneration Committee
Mr. Jamil Masud Chairman
Mr. Tariq Jilani Member
Mr. Shehryar Amin Member
Chief Financial Officer
Mr. Safder Hussain Tariq
Company Secretary
Mr. Muhammad Tayyab
Chief Internal Auditor
Ms. Nayab Ayaz
Auditors
Grant Thornton Anjum Rahman
Chartered Accountants
01
Interim Financial Report
Contents
Company Information
Directors’ Review
Condensed Interim Balance Sheet
Condensed Interim Profit and Loss Account
Condensed Interim Statement of Comprehensive Income
Condensed Interim Statement of Cash Flows
Condensed Interim Statement of Changes in Equity
Notes to the Condensed Interim Financial Information
01
02
03
04
05
06
07
08
Company Information
Legal Advisor
Imtiaz Saddiqui & Associates
Leading Banks
National Bank of Pakistan
Askari Bank Limited
Bank Alfalah Limited
Summit bank Limited
NIB Bank Limited
Allied Bank Limited
Pak Libya Holding Company (Private) Limited
Pak Oman Investment Company Limited
Soneri Bank Limited
Shares Registrar
Corplink (Pvt) Limited
Wings Arcade,
1-K, Commercial Model Town,
Lahore, Pakistan.
Tel: 92 - 42 -35839182
Fax: 92 - 42 - 35869037
Registered/Head Office
50-C, Main Gulberg,
Lahore, Pakistan.
Tel: 92 - 42 - 35753761
Fax: 92 - 42 - 35753688
Mills
th8 Kilometer,
Manga - Raiwaind Road,
District Kasur, Pakistan.
Board of Directors
Non-Executive Directors
Mrs. Mehvash Amin Chairman
Mr. Shehryar Amin
Mr. Tariq Jilani
Mr. Jamil Masud
Executive Directors
Mr. Jehanzeb Amin Cheif Executive
Mr. Safder Hussain Tariq
Independent Director
Mr. Qamber Hamid
Audit Committee
Mr. Qamber Hamid Chairman
Mr. Jamil Masud Member
Mr. Tariq Jilani Member
Human Resource & Remuneration Committee
Mr. Jamil Masud Chairman
Mr. Tariq Jilani Member
Mr. Shehryar Amin Member
Chief Financial Officer
Mr. Safder Hussain Tariq
Company Secretary
Mr. Muhammad Tayyab
Chief Internal Auditor
Ms. Nayab Ayaz
Auditors
Grant Thornton Anjum Rahman
Chartered Accountants
01
Interim Financial Report
Contents
Company Information
Directors’ Review
Condensed Interim Balance Sheet
Condensed Interim Profit and Loss Account
Condensed Interim Statement of Comprehensive Income
Condensed Interim Statement of Cash Flows
Condensed Interim Statement of Changes in Equity
Notes to the Condensed Interim Financial Information
01
02
03
04
05
06
07
08
03
Interim Financial Report
02
Samin Textiles Limited
Directors’ Review
The board of directors of your company is pleased to present before you the un-audited financial statements for
the 1st quarter ended September 2017. These financial statements have been prepared in compliance with IAS – 34
“Interim Financial Reporting” and are submitted under section 245 of the companies ordinance 1984.
Financial Highlights
The figures tabulated above reveal that during the period under review the company posted net sales amounting
to Rs. 117.475 million and a net loss of Rs. 83.190 million as compared to net sales of Rs. 319.524 million and a net
loss of Rs. 50.396 million for the corresponding period of last financial year.
Sluggish textile demand in the international market continued during the period under review as well.
Consequently, the selling price remained under and couldn't generate gross margins and the total plant capacity
couldn't be achieved resulting in lower sales volume, high fixed cost and increased red bottom line.
Future Outlook / Strategy
The sponsors and the management have the faith and belief in the textile business. The present lean period on
textile industry hasn't shaken their determination to stay in the business. They are committed to cater for the
financial needs of the company for its survival and revival.
As soon as the prevailing political and investment climate turns congenial, they will be playing their role for
turnaround of the project. Company is holding back its further investment in the proposed BMR plan till clarity of
overall situation of the textile industry.
However, cost cutting measures under all heads of account and financial support from the sponsors is helping the
company to survive till crossing the rough patch.
Acknowledgement:
We are grateful to all our stakeholders exclusively the bankers for their ongoing support and the employees of the
company for their commitment and hard work.
For and on behalf of the Board
Jehanzeb AminChief Executive
Lahore :
Dated : October 28, 2017
Quarter endedSeptember 30, 2017
Quarter ended
September 30, 2016
Rupees in million
Sales - Net
Gross (Loss) / Profit
Other Operating Income
Loss/Profit After Tax
Depreciation
Cash Loss / Profit
117.475
(47.678)
0.013
(83.190)
18.295
(64.895)
319.524
(7.791)
0.168
(50.396)
18.032
(32.364)
117.475
(47.678)
0.013
(83.190)
18.295
(64.895)
319.524
(7.791)
0.168
(50.396)
18.032
(32.364)
03
Interim Financial Report
02
Samin Textiles Limited
Directors’ Review
The board of directors of your company is pleased to present before you the un-audited financial statements for
the 1st quarter ended September 2017. These financial statements have been prepared in compliance with IAS – 34
“Interim Financial Reporting” and are submitted under section 245 of the companies ordinance 1984.
Financial Highlights
The figures tabulated above reveal that during the period under review the company posted net sales amounting
to Rs. 117.475 million and a net loss of Rs. 83.190 million as compared to net sales of Rs. 319.524 million and a net
loss of Rs. 50.396 million for the corresponding period of last financial year.
Sluggish textile demand in the international market continued during the period under review as well.
Consequently, the selling price remained under and couldn't generate gross margins and the total plant capacity
couldn't be achieved resulting in lower sales volume, high fixed cost and increased red bottom line.
Future Outlook / Strategy
The sponsors and the management have the faith and belief in the textile business. The present lean period on
textile industry hasn't shaken their determination to stay in the business. They are committed to cater for the
financial needs of the company for its survival and revival.
As soon as the prevailing political and investment climate turns congenial, they will be playing their role for
turnaround of the project. Company is holding back its further investment in the proposed BMR plan till clarity of
overall situation of the textile industry.
However, cost cutting measures under all heads of account and financial support from the sponsors is helping the
company to survive till crossing the rough patch.
Acknowledgement:
We are grateful to all our stakeholders exclusively the bankers for their ongoing support and the employees of the
company for their commitment and hard work.
For and on behalf of the Board
Jehanzeb AminChief Executive
Lahore :
Dated : October 28, 2017
Quarter endedSeptember 30, 2017
Quarter ended
September 30, 2016
Rupees in million
Sales - Net
Gross (Loss) / Profit
Other Operating Income
Loss/Profit After Tax
Depreciation
Cash Loss / Profit
117.475
(47.678)
0.013
(83.190)
18.295
(64.895)
319.524
(7.791)
0.168
(50.396)
18.032
(32.364)
117.475
(47.678)
0.013
(83.190)
18.295
(64.895)
319.524
(7.791)
0.168
(50.396)
18.032
(32.364)
05
Interim Financial Report
04
Samin Textiles Limited
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
Condensed Interim Profit and Loss Account (Un-audited)for the quarter ended September 30, 2017
For the quarter
ended
Sep 30, 2016
Rupees
319,524,536
(327,316,308)
(7,791,772)
168,442
(4,397,805)
(15,668,224)
(71,476)
(27,760,835)
(20,666,118)
(48,426,953)
(1,969,300)
(50,396,253)
(1.89)
For the quarter
ended
Sep 30, 2017
Note Rupees
117,475,436
13 (165,153,875)
(47,678,439)
12,969
(3,222,004)
(13,606,882)
-
(64,494,356)
-
(17,518,930)
(82,013,286)
(1,177,289)
(83,190,575)
16 (3.11)
Sales
Cost of sales
Gross profit / (loss)
Other income
Distribution cost
Administrative expenses
Other operating expenses
Operating (loss) / profit
Finance cost
(Loss) / profit before taxation
Provision for taxation
(Loss) / profit after taxation
(Loss) / earning per share - basic and diluted
The annexed notes 1 to 18 form an integral part of these financial statements.
Condensed Interim Balance Sheet (Un-audited)as at September 30, 2017
Un-audited
Sep 30, 2017
Notes Rupees
6 267,280,000
7 96,500,000
(298,935,932)
64,844,068
339,791,266
8 10,411,566
9 114,268,313
10 1,287,100
125,966,979
236,561,338
32,594,784
526,834,381
44,529,932
840,520,435
966,487,414
1,371,122,748
11
12 863,777,475
-
-
14,420,790
878,198,265
51,269,525
256,322,910
44,295,370
8,396,636
2,793,663
126,573,420
-
3,272,959
492,924,483
1,371,122,748
Equity and liabilities
Share capital and reserves
Share capital
Loan from sponsor
Reserves
Total share capital and reserves
Surplus on revaluation of property, plant and equipment
Liabilities
Non-current
Subordinated loan-related party
Long term financing-secured
Deferred tax and other liabilities
Total non-current liabilities
Current
Trade and other payables
Interest /markup accrued on borrowings
Short term borrowings
Current portion of long term borrowings
Total current liabilities
Total liabilities
Total equity and liabilities
Contingencies and commitments
Assets
Non-current
Property, plant and equipment
Intangible assets
Long term investments
Long term deposits
Total Non-current assets
Current
Stores, spare parts and loose tools
Stock in trade
Trade debts
Loans and advances
Trade deposits and prepayments
Tax refunds due from government
Interest accrued
Cash and bank balances
Current assets
Total assets
The annexed notes from 1 to 18 form an integral part of this interim financial information.
Audited
Jun 30, 2017
Rupees
267,280,000
41,000,000
(215,745,357)
92,534,643
339,791,266
10,411,566
110,579,602
1,287,100
122,278,268
218,071,698
36,436,697
525,607,481
51,362,932
831,478,808
953,757,076
1,386,082,985
882,072,369
-
-
14,420,790
896,493,159
52,077,111
272,970,158
19,414,419
7,370,758
2,859,050
129,840,173
-
5,058,157
489,589,826
1,386,082,985
05
Interim Financial Report
04
Samin Textiles Limited
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
Condensed Interim Profit and Loss Account (Un-audited)for the quarter ended September 30, 2017
For the quarter
ended
Sep 30, 2016
Rupees
319,524,536
(327,316,308)
(7,791,772)
168,442
(4,397,805)
(15,668,224)
(71,476)
(27,760,835)
(20,666,118)
(48,426,953)
(1,969,300)
(50,396,253)
(1.89)
For the quarter
ended
Sep 30, 2017
Note Rupees
117,475,436
13 (165,153,875)
(47,678,439)
12,969
(3,222,004)
(13,606,882)
-
(64,494,356)
-
(17,518,930)
(82,013,286)
(1,177,289)
(83,190,575)
16 (3.11)
Sales
Cost of sales
Gross profit / (loss)
Other income
Distribution cost
Administrative expenses
Other operating expenses
Operating (loss) / profit
Finance cost
(Loss) / profit before taxation
Provision for taxation
(Loss) / profit after taxation
(Loss) / earning per share - basic and diluted
The annexed notes 1 to 18 form an integral part of these financial statements.
Condensed Interim Balance Sheet (Un-audited)as at September 30, 2017
Un-audited
Sep 30, 2017
Notes Rupees
6 267,280,000
7 96,500,000
(298,935,932)
64,844,068
339,791,266
8 10,411,566
9 114,268,313
10 1,287,100
125,966,979
236,561,338
32,594,784
526,834,381
44,529,932
840,520,435
966,487,414
1,371,122,748
11
12 863,777,475
-
-
14,420,790
878,198,265
51,269,525
256,322,910
44,295,370
8,396,636
2,793,663
126,573,420
-
3,272,959
492,924,483
1,371,122,748
Equity and liabilities
Share capital and reserves
Share capital
Loan from sponsor
Reserves
Total share capital and reserves
Surplus on revaluation of property, plant and equipment
Liabilities
Non-current
Subordinated loan-related party
Long term financing-secured
Deferred tax and other liabilities
Total non-current liabilities
Current
Trade and other payables
Interest /markup accrued on borrowings
Short term borrowings
Current portion of long term borrowings
Total current liabilities
Total liabilities
Total equity and liabilities
Contingencies and commitments
Assets
Non-current
Property, plant and equipment
Intangible assets
Long term investments
Long term deposits
Total Non-current assets
Current
Stores, spare parts and loose tools
Stock in trade
Trade debts
Loans and advances
Trade deposits and prepayments
Tax refunds due from government
Interest accrued
Cash and bank balances
Current assets
Total assets
The annexed notes from 1 to 18 form an integral part of this interim financial information.
Audited
Jun 30, 2017
Rupees
267,280,000
41,000,000
(215,745,357)
92,534,643
339,791,266
10,411,566
110,579,602
1,287,100
122,278,268
218,071,698
36,436,697
525,607,481
51,362,932
831,478,808
953,757,076
1,386,082,985
882,072,369
-
-
14,420,790
896,493,159
52,077,111
272,970,158
19,414,419
7,370,758
2,859,050
129,840,173
-
5,058,157
489,589,826
1,386,082,985
07
Interim Financial Report
06
Samin Textiles Limited
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
for the quarter ended September 30, 2017
Condensed Interim Statement of Cash Flows (Un-audited)
For the quarter
ended
Sep 30, 2017
Rupees
14 (32,790,664)
-
(34,006,966)
-
-
-
1,226,900.00
(3,144,289)
55,500,000
(21,360,843)
32,221,768
(1,785,198)
5,058,157
3,272,959
Cash flows from operating activities
Cash (used in) operations
Taxes paid
Net cash (used in) operating activities
Cash flows from investing activities
Additions in property, plant and equipment
Dividend received
Net cash from investing activities
Cash flows from financing activities
(Decrease) in short term borrowings
(Decrease) in long term financing - net
Increase / (Decrease) in Sponsor's loan
Finance cost paid
Net cash (used in) financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
The annexed notes 1 to 18 form an integral part of these financial statements.
Note
For the quarter
ended
Sep 30, 2016
Rupees
51,602,140
(12,879,876)
38,722,264
(678,464)
-
(678,464)
(16,302,023)
(13,143,168)
-
(16,200,661)
(45,645,852)
(7,602,052)
26,116,244
18,514,192
for the quarter ended September 30, 2017
Condensed Interim Statement of Comprehensive Income (Un-audited)
(Loss) / profit after taxation
Other comprehensive income / (loss) for the year
Total comprehensive (loss) for the year
The annexed notes 1 to 18 form an integral part of these financial statements.
For the quarter
ended
Sep 30, 2017
Rupees
(83,190,575)
-
(83,190,575)
For the quarter
ended
Sep 30, 2016
Rupees
(50,396,253)
-
(50,396,253)
07
Interim Financial Report
06
Samin Textiles Limited
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
for the quarter ended September 30, 2017
Condensed Interim Statement of Cash Flows (Un-audited)
For the quarter
ended
Sep 30, 2017
Rupees
14 (32,790,664)
-
(34,006,966)
-
-
-
1,226,900.00
(3,144,289)
55,500,000
(21,360,843)
32,221,768
(1,785,198)
5,058,157
3,272,959
Cash flows from operating activities
Cash (used in) operations
Taxes paid
Net cash (used in) operating activities
Cash flows from investing activities
Additions in property, plant and equipment
Dividend received
Net cash from investing activities
Cash flows from financing activities
(Decrease) in short term borrowings
(Decrease) in long term financing - net
Increase / (Decrease) in Sponsor's loan
Finance cost paid
Net cash (used in) financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
The annexed notes 1 to 18 form an integral part of these financial statements.
Note
For the quarter
ended
Sep 30, 2016
Rupees
51,602,140
(12,879,876)
38,722,264
(678,464)
-
(678,464)
(16,302,023)
(13,143,168)
-
(16,200,661)
(45,645,852)
(7,602,052)
26,116,244
18,514,192
for the quarter ended September 30, 2017
Condensed Interim Statement of Comprehensive Income (Un-audited)
(Loss) / profit after taxation
Other comprehensive income / (loss) for the year
Total comprehensive (loss) for the year
The annexed notes 1 to 18 form an integral part of these financial statements.
For the quarter
ended
Sep 30, 2017
Rupees
(83,190,575)
-
(83,190,575)
For the quarter
ended
Sep 30, 2016
Rupees
(50,396,253)
-
(50,396,253)
09
Interim Financial Report
08
Samin Textiles Limited
for the quarter ended September 30, 2017
Notes to the Condensed Interim Financial Information (Un-audited)
1 General information and nature of operations
Samin Textiles Limited (the "Company") is a public limited company incorporated in Pakistan on November 27,
1989 under the Companies Ordinance, 1984. The shares of the Company are listed on Pakistan Stock Exchange.
The principal business of the Company is manufacturing and sale of cloth. The address of its registered/head office
is 50-C, Main Gulberg, Lahore. The mill is situated at Manga - Raiwind Road, District Kasur in the Province of Punjab.
2 Basis of preparation
This condensed interim financial information is unaudited and is being submitted to shareholders, as required by
section 245 of Companies Ordinance, 1984.
This condensed interim financial information of the Company for the three month ended 30 September 2017 has
been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34, "Interim
Financial Reporting" and provisions of and directives issued under the Companies Ordinance, 1984. In case where
requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been
followed. This condensed interim financial report does not include all the information required for full annual
financial statements and should be read in conjunction with the annual financial statements of the Company for
the year ended June 30, 2017.
3 Accounting policies
The accounting policies and methods of computation adopted for the preparation of this condensed interim
financial information are consistent with those applied in the preparation of the annual published financial
statements of the Company for the year ended June 30, 2017.
The new standards, amendments to the approved accounting standards and interpretations that are mandatory for
accounting periods beginning on or after July 1, 2017, were either considered not to be relevant to the Company's
operations or did not have significant effect on the accounting policies of the Company.
4 Critical accounting estimates and judgments
Judgments and estimates made by the management in the preparation of this condensed interim financial report
are the same as those applied to the preceding annual published financial statements of the Company for the year
ended June 30, 2017.
5 Financial risk management
The financial risk management objectives and policies adopted by the Company are consistent with those
disclosed in the financial statements of the Company for the year ended June 30, 2017.
Un-audited Audited
Sep 30, 2017 Jun 30, 2017
Rupees Rupees6
300,000,000 300,000,000
300,000,000 300,000,000
267,280,000
267,280,000
267,280,000
267,280,000
7
96,500,000
96,500,000
Share capital
Authorized share capital
30,000,000 (June 30, 2017: 30,000,000) ordinary shares of Rs. 10/- each
Total
Issued, subscribed and paid-up capital
26,728,000 (June 30, 2017: 26,728,000) ordinary shares of Rs. 10/- each
Total
LOAN FROM SPONSOR - RELATED PARTY
Loan from sponsor
Total 96,500,000
96,500,000
for the quarter ended September 30, 2017
Condensed Interim Statement of Changes in Equity (Un-audited)
Rupees Rupees Rupees Rupees
Balance as at July 01, 2016 267,280,000
51,256,016
51,256,016 318,536,016
Loss for the period -
(50,396,253)
(50,396,253) (50,396,253)
-
-
- -
-
(50,396,253)
(50,396,253) (50,396,253)
-
2,777,905
2,777,905 2,777,905
Balance as at September 30, 2016 267,280,000
3,637,668
3,637,668 270,917,668
Profit for the period -
(232,708,920)
(232,708,920) (232,708,920)
Other comprehensive income for the period -
-
- -
-
(232,708,920)
(232,708,920) (232,708,920)
-
13,325,895
13,325,895 13,325,895
Balance as at June 30, 2017 267,280,000 (215,745,357) (215,745,357) 51,534,643
Loss for the period - (83,190,575) (83,190,575) (83,190,575)
Other comprehensive income for the period - - - -
Total comprehensive loss for the period - (83,190,575) (83,190,575) (83,190,575)
- - - -
Balance as at September 30, 2017 267,280,000 (298,935,932) (298,935,932) (31,655,932)
The annexed notes from 1 to 18 form an integral part of this interim financial information.
Total Equity
Revenue reserve-
Accumulated
Profits/(Loss) Sub-total
Transfer from surplus on revaluation of property,
plant and equipment -net of tax
Particulars Issued, subscribed
and paid up share
capital
Reserves
Other comprehensive income for the period
Total comprehensive loss for the period
Transfer from surplus on revaluation of property,
plant and equipment-net of tax
Total comprehensive loss for the period
Transfer from surplus on revaluation of property,
plant and equipment -net of tax
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
09
Interim Financial Report
08
Samin Textiles Limited
for the quarter ended September 30, 2017
Notes to the Condensed Interim Financial Information (Un-audited)
1 General information and nature of operations
Samin Textiles Limited (the "Company") is a public limited company incorporated in Pakistan on November 27,
1989 under the Companies Ordinance, 1984. The shares of the Company are listed on Pakistan Stock Exchange.
The principal business of the Company is manufacturing and sale of cloth. The address of its registered/head office
is 50-C, Main Gulberg, Lahore. The mill is situated at Manga - Raiwind Road, District Kasur in the Province of Punjab.
2 Basis of preparation
This condensed interim financial information is unaudited and is being submitted to shareholders, as required by
section 245 of Companies Ordinance, 1984.
This condensed interim financial information of the Company for the three month ended 30 September 2017 has
been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34, "Interim
Financial Reporting" and provisions of and directives issued under the Companies Ordinance, 1984. In case where
requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been
followed. This condensed interim financial report does not include all the information required for full annual
financial statements and should be read in conjunction with the annual financial statements of the Company for
the year ended June 30, 2017.
3 Accounting policies
The accounting policies and methods of computation adopted for the preparation of this condensed interim
financial information are consistent with those applied in the preparation of the annual published financial
statements of the Company for the year ended June 30, 2017.
The new standards, amendments to the approved accounting standards and interpretations that are mandatory for
accounting periods beginning on or after July 1, 2017, were either considered not to be relevant to the Company's
operations or did not have significant effect on the accounting policies of the Company.
4 Critical accounting estimates and judgments
Judgments and estimates made by the management in the preparation of this condensed interim financial report
are the same as those applied to the preceding annual published financial statements of the Company for the year
ended June 30, 2017.
5 Financial risk management
The financial risk management objectives and policies adopted by the Company are consistent with those
disclosed in the financial statements of the Company for the year ended June 30, 2017.
Un-audited Audited
Sep 30, 2017 Jun 30, 2017
Rupees Rupees6
300,000,000 300,000,000
300,000,000 300,000,000
267,280,000
267,280,000
267,280,000
267,280,000
7
96,500,000
96,500,000
Share capital
Authorized share capital
30,000,000 (June 30, 2017: 30,000,000) ordinary shares of Rs. 10/- each
Total
Issued, subscribed and paid-up capital
26,728,000 (June 30, 2017: 26,728,000) ordinary shares of Rs. 10/- each
Total
LOAN FROM SPONSOR - RELATED PARTY
Loan from sponsor
Total 96,500,000
96,500,000
for the quarter ended September 30, 2017
Condensed Interim Statement of Changes in Equity (Un-audited)
Rupees Rupees Rupees Rupees
Balance as at July 01, 2016 267,280,000
51,256,016
51,256,016 318,536,016
Loss for the period -
(50,396,253)
(50,396,253) (50,396,253)
-
-
- -
-
(50,396,253)
(50,396,253) (50,396,253)
-
2,777,905
2,777,905 2,777,905
Balance as at September 30, 2016 267,280,000
3,637,668
3,637,668 270,917,668
Profit for the period -
(232,708,920)
(232,708,920) (232,708,920)
Other comprehensive income for the period -
-
- -
-
(232,708,920)
(232,708,920) (232,708,920)
-
13,325,895
13,325,895 13,325,895
Balance as at June 30, 2017 267,280,000 (215,745,357) (215,745,357) 51,534,643
Loss for the period - (83,190,575) (83,190,575) (83,190,575)
Other comprehensive income for the period - - - -
Total comprehensive loss for the period - (83,190,575) (83,190,575) (83,190,575)
- - - -
Balance as at September 30, 2017 267,280,000 (298,935,932) (298,935,932) (31,655,932)
The annexed notes from 1 to 18 form an integral part of this interim financial information.
Total Equity
Revenue reserve-
Accumulated
Profits/(Loss) Sub-total
Transfer from surplus on revaluation of property,
plant and equipment -net of tax
Particulars Issued, subscribed
and paid up share
capital
Reserves
Other comprehensive income for the period
Total comprehensive loss for the period
Transfer from surplus on revaluation of property,
plant and equipment-net of tax
Total comprehensive loss for the period
Transfer from surplus on revaluation of property,
plant and equipment -net of tax
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
This represents an interest free loan from a member of the Company. This loan is designated interest free and is
repayable at the discretion of the Company. 'Further, in accordance with Technical Release - 32 “Accounting
Directors’ Loan” issued by the Institute of Chartered Accountants of Pakistan effective for the financial statements
for the period beginning on or after January 01, 2016 with earlier application permitted, such loan have been
classified as part of equity instead of long term borrowing in current year financial statements.
8 Subordinated loan - unsecured
This interest bearing loan from a member of the Company is subordinated to the main lenders. The loan was
designated as an interest bearing loan with effect from 1st July 2010 and carries interest @ 6 Month KIBOR + 3% per
annum. Re-payment terms of the loan have not yet been finalized. However, the loan is not repayable within next
twelve months.
for the quarter ended September 30, 2017
Notes to the Condensed Interim Financial Information (Un-audited)
Un-audited Audited
Sep 30, 2017 Jun 30, 2017
Rupees Rupees9 Long term financing - secured
From financial institutions 157,416,880
160,561,169
157,416,880 160,561,169
Less:
Payable within in next twelve months (43,148,567)
(49,981,567)
Total 114,268,313
110,579,602
10 Defered Liabilities
Defered tax -
-
Staff gratuity 1,287,100 1,287,100
Total 1,287,100 1,287,100
11 Contingencies and commitments
Contingencies
There is no material change in contingencies as disclosed in the notes to the financial statements for the year ended
June 30, 2017.
12 Property, plant and equipment
Operating fixed assets 12.1
Total
12.1 Operating fixed assets
Written down value - opening
Add: Cost of additions during the period / year 12.1.1
Disposals during the period / year (W.D.V)
Add: Transferred from capital work in progress
Less: Depreciation
Written down value - closing
882,072,369
882,072,369
948,921,557
5,519,518
954,441,075
(9,890)
-
(72,358,816)
882,072,369
Note
Un-audited Audited
Sep 30, 2017 Jun 30, 2017
Rupees Rupees
863,777,475
863,777,475
882,072,369
-
882,072,369
-
-
(18,294,895)
863,777,475
11
Interim Financial Report
10
Samin Textiles Limited
for the quarter ended September 30, 2017
Notes to the Condensed Interim Financial Information (Un-audited)
Un-audited Audited
Sep 30, 2017 Jun 30, 2017
Rupees Rupees
12.1.1 Cost of additions during the period
Building on freehold land - -
Plant and machinery - 4,430,516
Office equipment - 1,089,002
Total - 5,519,518
13 Cost of Sales
Closing work in process
Raw material consumed
Salaries, wages and other benefits
Factory Overhead
(Increase)/decrease in Work In process
Opening work in process
Adjustment of finished goods
Adjustment of work in process
Cost of goods manufactured
(Increase) / decrease in finished goods
Opening Stock
Closing Stock
49,547,873 171,165,631
30,962,069 38,697,016
69,817,253 88,348,845
150,327,195 298,211,492
1,329,570 2,850,745
(1,143,169) (3,417,538)
186,401 (566,793)
150,513,596 297,644,699
249,908,464 364,733,755
(235,268,185) (335,062,146)
14,640,279 29,671,609
165,153,875 327,316,308
Un-audited Un-audited
Sep 30, 2017 Sep 30, 2016
Rupees Rupees
This represents an interest free loan from a member of the Company. This loan is designated interest free and is
repayable at the discretion of the Company. 'Further, in accordance with Technical Release - 32 “Accounting
Directors’ Loan” issued by the Institute of Chartered Accountants of Pakistan effective for the financial statements
for the period beginning on or after January 01, 2016 with earlier application permitted, such loan have been
classified as part of equity instead of long term borrowing in current year financial statements.
8 Subordinated loan - unsecured
This interest bearing loan from a member of the Company is subordinated to the main lenders. The loan was
designated as an interest bearing loan with effect from 1st July 2010 and carries interest @ 6 Month KIBOR + 3% per
annum. Re-payment terms of the loan have not yet been finalized. However, the loan is not repayable within next
twelve months.
for the quarter ended September 30, 2017
Notes to the Condensed Interim Financial Information (Un-audited)
Un-audited Audited
Sep 30, 2017 Jun 30, 2017
Rupees Rupees9 Long term financing - secured
From financial institutions 157,416,880
160,561,169
157,416,880 160,561,169
Less:
Payable within in next twelve months (43,148,567)
(49,981,567)
Total 114,268,313
110,579,602
10 Defered Liabilities
Defered tax -
-
Staff gratuity 1,287,100 1,287,100
Total 1,287,100 1,287,100
11 Contingencies and commitments
Contingencies
There is no material change in contingencies as disclosed in the notes to the financial statements for the year ended
June 30, 2017.
12 Property, plant and equipment
Operating fixed assets 12.1
Total
12.1 Operating fixed assets
Written down value - opening
Add: Cost of additions during the period / year 12.1.1
Disposals during the period / year (W.D.V)
Add: Transferred from capital work in progress
Less: Depreciation
Written down value - closing
882,072,369
882,072,369
948,921,557
5,519,518
954,441,075
(9,890)
-
(72,358,816)
882,072,369
Note
Un-audited Audited
Sep 30, 2017 Jun 30, 2017
Rupees Rupees
863,777,475
863,777,475
882,072,369
-
882,072,369
-
-
(18,294,895)
863,777,475
11
Interim Financial Report
10
Samin Textiles Limited
for the quarter ended September 30, 2017
Notes to the Condensed Interim Financial Information (Un-audited)
Un-audited Audited
Sep 30, 2017 Jun 30, 2017
Rupees Rupees
12.1.1 Cost of additions during the period
Building on freehold land - -
Plant and machinery - 4,430,516
Office equipment - 1,089,002
Total - 5,519,518
13 Cost of Sales
Closing work in process
Raw material consumed
Salaries, wages and other benefits
Factory Overhead
(Increase)/decrease in Work In process
Opening work in process
Adjustment of finished goods
Adjustment of work in process
Cost of goods manufactured
(Increase) / decrease in finished goods
Opening Stock
Closing Stock
49,547,873 171,165,631
30,962,069 38,697,016
69,817,253 88,348,845
150,327,195 298,211,492
1,329,570 2,850,745
(1,143,169) (3,417,538)
186,401 (566,793)
150,513,596 297,644,699
249,908,464 364,733,755
(235,268,185) (335,062,146)
14,640,279 29,671,609
165,153,875 327,316,308
Un-audited Un-audited
Sep 30, 2017 Sep 30, 2016
Rupees Rupees
12
Samin Textiles Limited
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
Un-audited Un-audited
Sep 30, 2017 Sep 30, 2016
Rupees Rupees
16 Earnings (loss) per share - basic and diluted
Loss for the period (83,190,575) (50,396,253)
Weighted average number of ordinary shares 26,728,000 26,728,000
Loss per share (Rupees) (3.11)
(1.89)
Significant balances with related parties as on balance sheet date are as follows:
Security General Insurance Company Limited Associated undertaking
Insurance premium payable 2,984,271 2,984,271
Payable to Sponsors Director 119,321,476 63,594,476
Payable to Provident Fund Provident fund 20,184,215 15,733,793
for the quarter ended September 30, 2017
Notes to the Condensed Interim Financial Information (Un-audited)
Audited
Jun 30, 2017
Rupees
Un-audited
Sep 30, 2017
Rupees
17 General
17.1 Corresponding figures have been rearranged wherever necessary, for the purpose of comparison. However, there
were no material reclassification or rearrangement to report.
In order to comply with the requirements of International Accounting Standard 34 - ‘Interim Financial Reporting’,
the condensed interim balance sheet has been compared with the balances of annual audited financial statements
of preceding financial year, whereas, the condensed interim profit and loss account, condensed interim statement
of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of
cash flows have been compared with the balances of condensed interim half yearly financial information of
comparable period.
17.2 Figures have been rounded off to the nearest rupees unless otherwise stated.
18 Date of authorization for issue
This financial information was authorized for issue on 28 October 2017 by the Board of Directors of the Company.
13
Interim Financial Report
15 Transactions with related parties
Significant transactions with related parties during three months are as follows:
Un-audited Un-audited
Sep 30, 2017 Sep 30, 2016
Relationship
Rupees Rupees
Mrs. Mehvish Amin Member of the Company
Office rent 300,000
300,000
Markup on subordinated loan 227,000
229,061
MCB Bank Limited Associated company
Profit received on PLS account 12,969 58,904
Onetel Pakistan (Pvt) Limited Associated company
Interest On Loan - 109,538
Directors and other key management personnel Directors and executives
Remuneration and benefits 8,628,720 9,613,740
(48,426,953)
18,032,355
117,320
(109,538)
20,666,118
(9,720,698)
(2,322,710)
37,327,112
15,182,462
(4,112,769)
1,850,671
13,398,072
51,602,140
for the quarter ended September 30, 2017
Notes to the Condensed Interim Financial Information (Un-audited)
14 Cash (used in) generated from operations
(Loss) / Profit before taxation
Adjustments for:
Depreciation on property, plant and equipment
Amortization
Interest Income
Finance cost
Operating profit before changes in working capital
Changes in working capital
(Increase) /decrease in current assets
Stores, spare parts and loose tools
Stock in trade
Trade debts
Loans and advances
Trade deposits, prepayments and balances with statutory authorities
(Decrease) /increase in current liabilities
Trade and other payables
Total
(82,013,286)
18,294,894
-
-
17,518,930
(46,199,462)
807,586
16,647,248
(24,880,951)
(1,025,878)
3,371,153
18,489,640
(32,790,664)
Un-audited Un-audited
Sep 30, 2017 Sep 30, 2016
Rupees Rupees
12
Samin Textiles Limited
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
Un-audited Un-audited
Sep 30, 2017 Sep 30, 2016
Rupees Rupees
16 Earnings (loss) per share - basic and diluted
Loss for the period (83,190,575) (50,396,253)
Weighted average number of ordinary shares 26,728,000 26,728,000
Loss per share (Rupees) (3.11)
(1.89)
Significant balances with related parties as on balance sheet date are as follows:
Security General Insurance Company Limited Associated undertaking
Insurance premium payable 2,984,271 2,984,271
Payable to Sponsors Director 119,321,476 63,594,476
Payable to Provident Fund Provident fund 20,184,215 15,733,793
for the quarter ended September 30, 2017
Notes to the Condensed Interim Financial Information (Un-audited)
Audited
Jun 30, 2017
Rupees
Un-audited
Sep 30, 2017
Rupees
17 General
17.1 Corresponding figures have been rearranged wherever necessary, for the purpose of comparison. However, there
were no material reclassification or rearrangement to report.
In order to comply with the requirements of International Accounting Standard 34 - ‘Interim Financial Reporting’,
the condensed interim balance sheet has been compared with the balances of annual audited financial statements
of preceding financial year, whereas, the condensed interim profit and loss account, condensed interim statement
of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of
cash flows have been compared with the balances of condensed interim half yearly financial information of
comparable period.
17.2 Figures have been rounded off to the nearest rupees unless otherwise stated.
18 Date of authorization for issue
This financial information was authorized for issue on 28 October 2017 by the Board of Directors of the Company.
13
Interim Financial Report
15 Transactions with related parties
Significant transactions with related parties during three months are as follows:
Un-audited Un-audited
Sep 30, 2017 Sep 30, 2016
Relationship
Rupees Rupees
Mrs. Mehvish Amin Member of the Company
Office rent 300,000
300,000
Markup on subordinated loan 227,000
229,061
MCB Bank Limited Associated company
Profit received on PLS account 12,969 58,904
Onetel Pakistan (Pvt) Limited Associated company
Interest On Loan - 109,538
Directors and other key management personnel Directors and executives
Remuneration and benefits 8,628,720 9,613,740
(48,426,953)
18,032,355
117,320
(109,538)
20,666,118
(9,720,698)
(2,322,710)
37,327,112
15,182,462
(4,112,769)
1,850,671
13,398,072
51,602,140
for the quarter ended September 30, 2017
Notes to the Condensed Interim Financial Information (Un-audited)
14 Cash (used in) generated from operations
(Loss) / Profit before taxation
Adjustments for:
Depreciation on property, plant and equipment
Amortization
Interest Income
Finance cost
Operating profit before changes in working capital
Changes in working capital
(Increase) /decrease in current assets
Stores, spare parts and loose tools
Stock in trade
Trade debts
Loans and advances
Trade deposits, prepayments and balances with statutory authorities
(Decrease) /increase in current liabilities
Trade and other payables
Total
(82,013,286)
18,294,894
-
-
17,518,930
(46,199,462)
807,586
16,647,248
(24,880,951)
(1,025,878)
3,371,153
18,489,640
(32,790,664)
Un-audited Un-audited
Sep 30, 2017 Sep 30, 2016
Rupees Rupees
50-C, Main Gulberg, Lahore, Pakistan.Tel: +92 42 3575 3761Fax: +92 42 3575 3688www.samintextile.com
Samin Textiles Limited
