Condensed Interim Financial Statements for the Quarter Ended September 30, 2022
CONTENTS
Company's information | 02 |
Directors' Report (English & Urdu) | 03 - 06 |
Statement of Financial Position | 07 |
Statement of Profit or Loss | 08 |
Statement of Comprehensive Income | 09 |
Statement of Changes in Equity | 10 |
Statement of Cash Flow | 11 |
Notes to the Financial Information | 12 - 16 |
For the quarter ended September 30, 2022 | 1
Company Information
Board of Directors
Mr. Jonathan R. Simon | Director / Chairman |
Mr. Nasim Hyder | Director / Vice Chairman |
Mr. Khaleequr Rahman | Director |
Mr. Shabbir Ahmed | Director |
Mr. Abdul Rehman Yaqub | Director |
Mr. Perwez Ahmed | Director |
Mr. Anas Rahman | Director |
Mr. Zain Ashraf Mukaty | Director |
Ms. Huma Pasha | Director |
Ms. Aminah Zahid Zaheer | Director |
Mr. Rehan Rahman | Chief Executive |
Board Audit Committee
Mr. Nasim Hyder | Chairman |
Mr. Khaleequr Rehman | Member |
Mr. Zain Ashraf Mukaty | Member |
Ms. Aminah Zahid Zaheer | Member |
Board HR & Remuneration Committee
Ms. Aminah Zahid Zaheer | Chairperson |
Mr. Zain Ashraf Mukaty | Member |
Mr. Nasim Hyder | Member |
Chief Financial Officer
Ms. Javeria Siddiqui
Company Secretary
Mr. Mudassir Moten
Bankers
Allied Bank Limited
Bank Al Habib Limited
Bank Alfalah Limited
Bank Islami Pakistan Limited
Faysal Bank Limited
Habib Metropolitan Bank Limited
HBL Bank Limited
Meezan Bank Limited
Standard Chartered Bank (Pakistan) Ltd
External Auditors
EY Ford Rhodes Chartered Accountants
Progressive Plaza, Beaumont Road,
Karachi.
Registered Office
H-23/4A, Scheme # 3, Landhi Industrial Area, Landhi, Karachi.
Corporate Office
K&N Centre, 2nd and 3rd Floor,160 Banglore Town, Shahrah -e-Faisal, Karachi
Factory Addresses
Sindh:
Plot # H-23/4-A,H-23-/4-B & H- 23/3-II, Scheme
-
3, Landhi Industrial Area, Landhi, Karachi. Plot # A-5,B-4/A,C-3,C-31,F-125,F-342 & F-89, SITE, Karachi.
Plot # 342/A, Haroonabad, SITE, Karachi Plot # PL-15 & ST-03 North Karachi Industrial Area, Karachi.
Survey # 81, 242, 72 to 75, 165, 166, 171, 172, 176 to 181, 186 to 190, 156, 210, 211, 242, 243
Deh Moachko, Tapo Gabopat, Keamari Town, Karachi.
Balochistan
Plot# D-12 to D-17,K-1 to K-3,M-34, HITE, all in Mauza Pathra, Tehsil Hub, Disctirct Lasbela, Balochistan
Share Registrar/Transfer Agent
FAMCO Associates (Pvt.) Ltd.
8-F, Next to Hotel Faran Nursery, Block-6, PECHS, Shahrah-e-Faisal, Karachi.
Legal Advisor
Mohsin Tayebaly & Co
1st Floor, Dime Centre Khayaban-e-Iqbal,Block-9, Clifton, Karachi
Internal Auditors
A.F. Ferguson & Co. Chartered Accountants State Life Building No. 1-C, I.I. Chundrigar Road, City Railway Colony, Karachi.
Website
http://www.feroze1888.com
For the quarter ended September 30, 2022 | 2
DIRECTORS' REPORT
We are pleased to present the performance review and the un-audited Financial Statements for the three months ended September 30, 2022.
ECONOMIC & INDUSTRY OVERVIEW
"Uncertainty always creates doubt and doubt creates fear". This quote perfectly encapsulates the current predicament of Pakistan. The situation has exacerbated following floods on an unprecedented scale that emerged out of record monsoon rainfall in the Country, leaving millions across the Country homeless while causing loss of lives, standing crops, infrastructure and property. Almost 15% of the Country is underwater and over 33 million people have been affected. There are many initial estimates of losses going as high as US$40 billion which constitutes almost 10% in terms of GDP.
Moreover, the combination of elevated prices for imported commodities, depreciating local currency and tightening global financial conditions have intensified already acute levels of debt distress faced by the Country. The USD/PKR touched a new low of Rs 240/US$ in July-22 and since then has been akin to a swinging pendulum.
As a result, growth is now expected to be around 2% and inflation is projected to rise to around 23% in FY23. For the year 2022-23, cotton production is estimated at 6.3 million bales reflecting a historic decline of 43.08% in production over the past year. Lower agriculture output is expected to negatively impact industrial and service sector activity besides aggravating the imports and decline in export primarily rice.
The value of textile exports from Pakistan, as reported by the PBS - increased by 4.18% year-on-year in dollar terms in the first two months of fiscal year 2022-23. During the period, the Country earned US$ 3.06 billion from textile and apparel exports, compared to exports of US$ 2.93 billion in corresponding period last year. Among textiles, cotton yarn exports decreased by 17% to US$ 160.4 million in July-August2022-23. Specifically, Exports of towel also decreased by 6.61% and were valued at US$ 150 million during the two months period.
The overall textile imports in Jul-Aug, FY2022 decreased by 12.27% to US$ 678.91 million (US$ 773.9 million last year). Raw cotton imports went up by 23.29% year-on-year to US$ 255.38 million. Meanwhile, the value of textile machinery imports by Pakistan decreased significantly by 35.38% year-on-year to US$ 93.32 million during the two-month period.
REVIEW OF OPERATING RESULTS
A brief overview of the performance of your Company for the three months ended September 30, 2022 is stated below:
Statement of Profit or Loss for the three months ended:
September 2022 | September 2021 | |
-------- (Rupees in '000) -------- | ||
Sales- net | 11,356,102 | |
9,013,750 | ||
Gross profit | 2,005,786 | 1,710,429 |
Profit before taxation | 1,963,423 | 563,170 |
Profit after taxation | 1,767,294 | 436,477 |
EPS (Rs/Share) | 4.42 | 1.14 |
The net sales in value term during the period has decreased by Rs.2,342 million, i.e. by 21% in comparison with the corresponding period. This change is attributable to volumetric decrease by 51 % amounting to Rs. 5,572 million and devaluation of PKR having a positive impact of Rs. 2,248 million.
In spite of increase in raw material prices, the Company's gross profit margin has increased by 17.27% whereas profit after tax for the period has increased by Rs.1.3 billion in comparison with the corresponding period, mainly on account of net exchange gain.
For the quarter ended September 30, 2022 | 3
FUTURE OUTLOOK
The Country is already in an International Monetary Fund (IMF) program owing to mounting debt burden and falling foreign exchange reserves. Whereas, the emergence of an economic crisis, coupled with rising inflation and shortage of raw material due to torrential rains and floods have further intensified the situation.
It is apparent that economic direction is set to change as the Government has expressed its intentions lower both the interest rate and inflation - an uphill task, and is gearing up to take on the bulging dollar head-on. The rupee dollar parity can only be brought to a certain level if the elementary forces of supply and demand kick in while the state of foreign investment in the Country is abysmal, to say the least, which continues to only intensify the uncertainty.
In current scenario, perseverance and prudence is the need of the hour. The Company remains vigilant and closely monitoring the situation in order to act proactively in these challenging times.
ACKNOWLEDGEMENT
We would like to take this opportunity to express our deep sense of gratitude to the shareholders, employees, customers and business partners for their cooperation, confidence and faith they have always reposed in the Company.
For and on behalf of the Board of Directors
Rehan Rahman | Aminah Zahid Zaheer |
Chief Executive Officer | Director |
Karachi
Date: October 28, 2022
For the quarter ended September 30, 2022 | 4
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Feroze1888 Mills Ltd. published this content on 31 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2022 04:58:06 UTC.