KOHINOOR TEXTILE MILLS LIMITED KOHINOOR
T E X T IL E M IL L S L T D.
70 YEARS AND BEYOND
A LEGACY OF EXCELLENCE
3rd QUARTERLY REPORT MARCH 31, 2024
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 Statements | 19 |
Consolidated Condensed Interim Statement of Financial Position | 20 |
Consolidated Condensed Interim Statement of Profit or Loss | 22 |
Consolidated Condensed Interim Statement of Comprehensive Income | 23 |
Consolidated Condensed Interim Statement of Changes in Equity | 24 |
Consolidated Condensed Interim Statement of Cash Flows | 25 |
Selected Notes to the Consolidated Condensed Interim Financial Statements | 26 |
3RD 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. Zulfikar Monnoo | |
Syed Mohsin Raza Naqvi | |
Audit Committee | |
Syed Muhammad Shabbar Zaidi | Chairman |
Mr. Zulfikar Monnoo | Member |
Mr. Sayeed Tariq Saigol | Member |
Mr. Waleed Tariq Saigol | Member |
Human Resource & | |
Remuneration Committee | |
Mr. Zulfikar 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. Zeeshan Malik Bhutta | |
Auditors | |
M/s. Riaz Ahmad & Company, | |
Chartered Accountants |
Legal Adviser
Mr. Muhammad Amin Hashmi 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 nine months ended 31 March 2024, in compliance with the requirements of Section 237 of the Companies Act, 2017.
Review of Operations
The results of the Company during the period under review are similar to those for the corresponding period of the previous financial year. High revenues driven by capacity and price increases were negatively impacted by dramatically increased costs of energy and sky-rocketing interest rates. Despite an increasingly unfavourable economic climate, the Company has managed to hold its ground on profitability and aims to improve on it by the end of the financial year.
In the third quarter of the financial year, the results of the Company's Spinning divisions improved over those of the previous quarter. Raw material coverage at favourable rates, increased capacities, and higher sales prices helped drive revenue, while the Company's solar installations at its Rawalpindi and Gujar Khan sites helped offset the high cost of energy from the national grid and inconsistency in the supply of natural gas/RLNG. Despite increased prices and improved demand for yarn in the market, several spinners have found themselves unable to compete given high utility costs and there are reports of closures of capacity resulting in reduced availability of export-quality yarn. The Company remains positive that it will achieve a similar or slightly improved result in the fourth quarter.
The pre-tax results of the Weaving division showed some improvement over the previous quarter with increases in local and international sales rates and reasonable demand for fabric. Timely purchase of yarn helped to offset some of the high costs of fuel. The major driver of costs for the Weaving division continues to be the extremely high interest rate resulting in finance costs far in excess of anything envisaged. We foresee significant improvement in the Company's results in the fourth quarter as internal steps to increase the division's competitiveness take effect.
The performance of the Home Textiles division slipped from that of the previous quarter, driven by a very large and sudden increase in freight rates due to hostilities in the Middle East. Further, low capacity utilization in the Pakistani made-ups industry has resulted in inability to pass through current and expected increases in input prices. This has been exacerbated by a recessionary mood in China where the industry has slashed prices out of desperation. We continue to pursue business in more niche, higher-value products to increase margins.
The Company's efforts to further its sustainability goals continue apace, with an additional one megawatt of solar panels to be installed by the end of May and a further three megawatts to be in production before the end of the financial year. The current waste water treatment and recycling program continues to develop rapidly with fine-tuning underway in most areas and an additional rainwater harvesting lake to be completed before the end of June.
Financial Review
During the period under review, Company's sales increased by 43% to Rs. 42,947 million (2023: Rs. 30,063
million), while cost of sales increased by 44% to Rs. 35,590 million (2023: Rs. 24,772 million). This resulted
in gross profit of Rs. 7,357 million (2023: Rs. 5,291 million). Operating profit for the period under review
stood at Rs. 5,157 million (2023: Rs. 3,637 million). The Company made an after-tax profit of Rs. 1,762
million (2023: Rs. 1,807 million). Earnings per share for the nine months ended 31 March 2024 were at Rs. 6.44 against Rs. 6.04 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 | Taufique Sayeed Saigol |
April 25, 2024 | Director | Chief Executive Officer |
3RD QUARTERLY REPORT |
3
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
As at 31 March 2024
Un-audited | Audited | |
Note | 31 March | 30 June |
2024 | 2023 | |
(Rupees in thousand) | ||
EQUITY AND LIABILITIES | ||
SHARE CAPITAL AND RESERVES | ||
Authorized share capital | ||
370,000,000 (30 June 2023: 370,000,000) | 3,700,000 | 3,700,000 |
ordinary shares of Rupees 10 each | ||
30,000,000 (30 June 2023: 30,000,000) preference | 300,000 | 300,000 |
shares of Rupees 10 each |
Issued, subscribed and paid-up share capital | |
269,299,456 (30 June 2023: 299,296,456) | |
ordinary shares of Rupees 10 each | 5 |
Reserves | |
Capital reserves | |
Share premium | |
Surplus on revaluation of freehold land | |
Own shares purchased for cancellation | |
Revenue reserves | |
General reserve | |
Unappropriated profit | |
Total equity | |
LIABILITIES | |
NON-CURRENT LIABILITIES | |
Long term financing | 6 |
Deferred government grants | |
Deferred income tax liability | |
CURRENT LIABILITIES | |
Trade and other payables | |
Accrued mark-up | |
Short term borrowings | |
Current portion of non-current liabilities | |
Unclaimed dividend | |
Taxation - net | |
Total liabilities | |
CONTINGENCIES AND COMMITMENTS | 7 |
4,000,000
2,692,994
986,077
3,861,708
-
4,847,785
1,450,491
17,702,225
19,152,716
24,000,501
26,693,495
6,527,175
10,790
1,753,276
8,291,241
4,685,104
602,933
8,943,308
1,500,187
31,543
452,188
16,215,263
24,506,504
4,000,000
2,992,964
986,077
3,861,708
(312,153)
4,535,632
1,450,491
17,415,710
18,866,201
23,401,833
26,394,797
6,408,355
13,441
1,503,053
7,924,849
4,331,413
483,829
6,894,851
1,338,436
32,264
485,779
13,566,572
21,491,421
TOTAL EQUITY AND LIABILITIES | 51,199,999 | 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 | 31 March | 30 June | |||
2024 | 2023 | ||||
(Rupees in thousand) | |||||
ASSETS | |||||
NON-CURRENT ASSETS | |||||
Property, plant and equipment | 8 | 20,980,151 | 19,218,251 | ||
Long term investments | 11,078,733 | 11,078,733 | |||
Long term deposits | 111,634 | 61,628 | |||
32,170,518 | 30,358,612 |
CURRENT ASSETS
Stores, spare parts and loose tools Stock-in-trade
Trade debts Advances
Short term prepayments Other receivables Short term investments Cash and bank balances
987,437
9,127,089
5,904,956
752,554
118,975
1,381,545
512,534
244,391
19,029,481
1,069,324
8,863,674
4,430,883
277,849
30,361
1,744,173
467,867
643,475
17,527,606
TOTAL ASSETS | 51,199,999 | 47,886,218 | |
CHIEF EXECUTIVE OFFICER | DIRECTOR | CHIEF | OFFICER |
3RD QUARTERLY REPORT
5
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (Un-audited)
For the nine months ended 31 March 2024
Nine months ended | Quarter ended | ||||
Note | 31 March | 31 March | 31 March | 31 March | |
2024 | 2023 | 2024 | 2023 |
Revenue Cost of sales
....................... (Rupees in thousand) ........................
42,946,856 30,062,559 14,884,520 10,744,521
(35,590,317) (24,771,690) (12,412,154) (8,781,493)
Gross profit
Distribution cost Administrative expenses Other expenses
Other income
Profit from operations
Finance cost
Profit before taxation
Taxation
7,356,539 | 5,290,869 | |
(1,284,529) | (959,698) | |
(929,540) | (766,615) | |
(243,927) | (244,837) | |
(2,457,996) | (1,971,150) | |
4,898,543 | 3,319,719 | |
258,445 | 316,875 | |
5,156,988 | 3,636,594 | |
(2,533,235) | (1,010,671) | |
2,623,753 | 2,625,923 |
2,472,366 | 1,963,028 | |
(549,727) | (320,857) | |
(331,904) | (217,687) | |
(83,747) | (39,292) | |
(965,378) | (577,836) | |
1,506,988 | 1,385,192 | |
56,597 | 192,157 | |
1,563,585 | 1,577,349 | |
(859,370) | (423,619) | |
704,215 | 1,153,730 |
- Current
- Deferred
Profit after taxation
(611,737) | (447,297) | (101,761) | (176,138) | |||
(250,222) | (371,138) | (186,945) | (148,436) | |||
(861,959) | (818,435) | (288,706) | (324,574) | |||
1,761,794 | 1,807,488 | 415,509 | 829,156 | |||
Earnings per share - basic and diluted (Rupees) 9 | 6.44 | 6.04 | 1.52 | 2.77 | |||
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 nine months ended 31 March 2024
Nine months ended | Quarter ended | |||
31 March | 31 March | 31 March | 31 March | |
2024 | 2023 | 2024 | 2023 |
....................... (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
1,761,794
-
-
-
1,761,794
1,807,488
-
-
-
1,807,488
415,509
-
-
-
415,509
829,156
-
-
-
829,156
The annexed notes form an integral part of these unconsolidated condensed interim financial statements.
CHIEF EXECUTIVE OFFICER | DIRECTOR | CHIEF | OFFICER |
3RD QUARTERLY REPORT 7
8 KOHINOOR TEXTILE MILLS LIMITED
UNCONSOLIDATED CONDENSED INTERIM
STATEMENT OF CHANGES IN EQUITY
For the nine months ended 31 March 2024
Reserves | |||||||||||
Capital reserves | Revenue reserves | ||||||||||
Share capital | Total equity | ||||||||||
Share | Surplus on | Own shares | General | Unappropriated | Total | ||||||
revaluation of | purchased for | Sub - total | Sub - total | ||||||||
premium | freehold land | cancellation | reserve | profit | reserves | ||||||
--------------------------------------------------------- | (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 | |
Surplus on revaluation of investment property | - | - | (10,066) | - | (10,066) | - | 10,066 | 10,066 | - | - | |
Profit for the period | |||||||||||
- | - | - | - | - | - | 1,807,488 | 1,807,488 | 1,807,488 | 1,807,488 | ||
Other comprehensive income for the period | - | - | - | - | - | - | - | - | - | - | |
Total comprehensive income for the period | |||||||||||
- | - | - | - | - | - | 1,807,488 | 1,807,488 | 1,807,488 | 1,807,488 | ||
Balance as at 31 March 2023 - (un-audited) | 2,992,964 | 986,077 | 3,861,708 | - | 4,847,785 | 1,450,491 | 16,815,936 | 18,266,427 | 23,114,212 | 26,107,176 | |
Own shares purchased during the period for cancellation | - | - | - | (312,153) | (312,153) | - | - | - | (312,153) | (312,153) | |
Profit for the period | |||||||||||
- | - | - | - | - | - | 599,774 | 599,774 | 599,774 | 599,774 | ||
Other comprehensive income for the period | - | - | - | - | - | - | - | - | - | - | |
Total comprehensive income for the period | |||||||||||
- | - | - | - | - | - | 599,774 | 599,774 | 599,774 | 599,774 | ||
Balance as at 30 June 2023 - (audited) | 2,992,964 | 986,077 | 3,861,708 | (312,153) | 4,535,632 | 1,450,491 | 17,415,710 | 18,866,201 | 23,401,833 | 26,394,797 | |
Own shares purchased during the period for cancellation | |||||||||||
(299,970) | - | - | 312,153 | 312,153 | - | (1,475,279) | (1,475,279) | (1,163,126) | (1,463,096) | ||
Profit for the period | - | - | - | - | - | - | 1,761,794 | 1,761,794 | 1,761,794 | 1,761,794 | |
Other comprehensive income for the period | - | - | - | - | - | - | - | - | - | - | |
Total comprehensive income for the period | - | - | - | - | - | - | 1,761,794 | 1,761,794 | 1,761,794 | 1,761,794 | |
Balance as at 31 March 2024 - (un-audited) | 2,692,994 | 986,077 | 3,861,708 | - | 4,847,785 | 1,450,491 | 17,702,225 | 19,152,716 | 24,000,501 | 26,693,495 | |
The annexed notes form an integral part of these unconsolidated condensed interim financial statements.
CHIEF EXECUTIVE OFFICER | DIRECTOR | CHIEF | OFFICER |
UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS (Un-audited)
For the nine months ended 31 March 2024
31 March | 31 March | |
Note | 2024 | 2023 |
(Rupees in thousand) |
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations | 10 |
Finance cost paid |
Income tax paid
Worker's welfare fund paid
Payment received from Workers' profits participation fund Net increase in long term deposits
Net cash generated from operating activities
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 investments Short term investments - net
Interest received Dividend received
Net cash used in investing activities
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
Net cash from financing activities
NET DECREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
4,531,048
(2,414,131)
(645,328)
(58,307)
34,599
(50,006)
1,397,875
(2,797,736)
55,220
-
(44,667)
127,350
314
(2,659,519)
1,115,127
(837,207)
(1,463,096)
2,048,457
(721)
862,560
(399,084)
643,475
244,391
1,429,949
(755,171)
(510,519)
(58,307)
32,204
(451)
137,705
(4,236,839)
24,285
21,022
54,622
71,550
18,800
(4,046,560)
2,710,644
(678,593)
-
1,820,016
(361)
3,851,706
(57,149)
309,629
252,480
The annexed notes form an integral part of these unconsolidated condensed interim financial statements.
CHIEF EXECUTIVE OFFICER | DIRECTOR | CHIEF | OFFICER |
3RD QUARTERLY REPORT
9
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Kohinoor Textile Mills Ltd. published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 05:09:18 UTC.
