nadeem first quarter septembe · 2017. 10. 28. · 5 nadeem textile mills limited condensed interim...

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COMPANY INFORMATION

Board of Directors : Mr. Zahid Mazhar (Chief Executive)Mr. Omer Bin Zahid (Executive Director)Mr. Hassan Bin Zahid (Executive Director)Mrs.Naila Zahid (Chairperson)Mrs.Anam OmerMrs. Shafia HassanMr. Faiz-ul-Hassan SiddiquiMr. Nadeem AhmedMr. Mehmood Siddiqui

Chief Financial Officer : Mr. Omer Bin Zahid

Company Secretary : Mr. Abdul Amin

Audit Committee : Mr. Faiz-ul-Hassan Siddiqui (Chairman)Mrs. Anam Omer (Member)Mrs. Shafia Hassan (Member)

H. R. & RemunerationCommitee : Mr. Nadeem Ahmed (Chair man)

Mrs. Anam Omer(Member)Mrs. Shafia Hassan (Member)

Chartered Accountants

Legal Advisor : Mr. Abdul Ghani Khan (Advocate)

Bankers : Soneri Bank LimitedJ. S. Bank LimitedBank Al-Falah LimitedSamba Bank LimitedAskari Bank Limited

Head Office /Registered Office : A 801-804, Lakson Square Building No. 3,

Sarwar Shaheed Road,Karachi - Pakistan.Phone : (021) 35220481-8Fax : (92-21) 35220495-6

Share Registrar : M/s Hameed Majeed Associates (Pvt.) Ltd.5th Floor, Karachi Chambers,Hasrat Mohani Road, Karachi.Phone : 32424826-32412754 Fax : 32424835E-mail : [email protected]

Mills : Unit 1: A-265, S.I.T.E., Nooriabad,District Dadu, Sindh.

Unit 2: E-11, S.I.T.E, Kotri, Sindh.

URL : www.nadeem.com.pk

Auditors : M/s. Rahman Sarfaraz Rahim Iqbal Rafiq

mailto:[email protected]

http://www.nadeem.com.pk

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DIRECTORS' REPORT

Karachi:October 28, 2017

ZAHID MAZHARChief Executive

Dear Shareholders,The Directors of the Company hereby present their report together with the un-auditedInterim Financial Statements of the Company for the 1st Quarter ended September30, 2017.

During the 1st Quarter ended September 30, 2017 the operational results of the companyas compared to the 1st Quarter of previous year are as follows:

Earning per share for the period is Rs. 0.48 as compared to Rs. 0.76 of the comparativeperiod of last year.

The company managed to achieve sales turnover of Rs. 1,456 million during the 1stQuarter ended September 30, 2017 as compared to Rs. 1,368 million of the comparativeperiod showing an increase of 6.43%. The gross profit margin of the period is Rs. 84.50million at 5.80% to sales.

The cost of energy and taxation is higher in Pakistan as compared to its regionalcompetitors. Higher cost of production is making Pakistan’s exports noncompetitive inthe global market. The target of cotton crop for the year 2017-18 has been revised to 12.6million bales, a drop of 10.26%from the initial estimate of 14.04 million bales.The directors of the company are committed to achieve good results through optimumutilization of resources.

The management of the Company appreciates the efforts of its employees, andcontinuous support of customers, suppliers and bankers.

OPERATING RESULTS

EARNING PER SHARE

OVERVIEW

FUTURE OUTLOOK

ACKNOWLEDGEMENT

Net SalesGross ProfitProfit / (Loss) before TaxProfit / (Loss) after tax

Sep. 30, 2017Rs. In Million

1,456.6584.508.437.55

Sep. 30, 2016Rs. In Million

1,368.6085.4122.8211.85

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ASSETSNON-CURENT ASSETSProperty, plant and equipment 4 1,610,845,869 1,627,787,841Long term deposits 13,179,429 13,179,429

1,624,025,298 1,640,967,270CURRENT ASSETS

EQUITY AND LIABILITIESAuthorized capital

NON CURRENT LIABILITIES

CURRENT LIABILITIES

Stores, spares and loose tools 0,341,587 2,271,072Stock in trade ,059,076,661 25,607,539Trade debts 46,330,924 509,681,878Loans and advances 13,503,531 9,153,138Trade deposits, prepayments and other receivables 131,914,081 9,196,556Tax refunds due from Government 17,912,897 23,017,213Cash and bank balances 6,417,841 0,489,840

,095,497,522 ,699,417,236TOTAL ASSETS ,719,522,820 ,340,384,506

25,000,000 (2017:25,000,000)ordinary shares of Rs. 10 each 250,000,000 250,000,000

Share capital 56,195,000 156,195,000Capital reserves 23,710,000 123,710,000Unappropriated Profit 06,130,482 02,021,367

86,035,482 81,926,367Advance against right shares 89,812,139 89,812,139Surplus on revaluation of property, plant & equipment 334,443,839 337,726,446

Long term financing 8,845,399 8,012,066Loan from associate 288,403,058 297,698,058Deferred liabilities 6,063,612 9,183,728

423,312,069 474,893,852

Trade and other payables 591,417,422 500,176,293Accrued mark-up 24,007,468 24,157,491Short term borrowings 1,593,632,660 1,209,286,699Loan from directors 4,800,000 4,800,000Current portion of loan from associate 86,000,000 121,000,000Current portion of long term financing 86,061,740 96,605,219

2,385,919,290 1,956,025,702Contingencies and CommitmentsTOTAL EQUITY AND LIABILITIES 3,719,522,820 3,340,384,506

8 71 8

51 3

91 1

4 32 13 3

112 24 4

6 9

6 7

The annexed notes 1 to 10 form an integral part of these condensed interim financial statements.

(Audited)Jun. 30, 2017

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(Un-Audited)Sep. 30, 2017

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NADEEM TEXTILE MILLS LIMITEDCONDENSED INTERIM BALANCE SHEET (UN-AUDITED)

AS AT SEPTEMBER 30, 2017

Omer Bin ZahidDirector

Zahid MazharChief Executive

Karachi: October 28, 2017

Note

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NADEEM TEXTILE MILLS LIMITEDCONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED)

FOR THE 1ST QUARTER ENDED SEPTEMBER 30, 2017

Sales - netCost of sales and services (1,283,189,401)Gross profit

Administrative expenses (23,078,334)Distribution costs (12,773,140)

(35,851,474)

Other operating income / (loss) 873,299Other operating expenses (1,829,746)Finance cost (25,783,176)

(26,739,623)22,822,185

Taxation for the period (10,974,048)

Profit for the period 11,848,137

(1,372,166,766)

(23,280,688)(15,883,304)(39,163,992)

(3,701,841)(443,378)

(32,751,948)(36,897,167)

rofit before taxation 8,424,173

(873,474)

7,550,699

Earnings per share - basic and diluted 0.48 0.76

P

1,456,652,097

84,485,331

1,368,602,684

85,413,283


30-SEP-2017RUPEES

30-SEP-2016RUPEES




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NADEEM TEXTILE MILLS LIMITEDCONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)


Profit after taxation

Transfer from surplus on revaluation ofproperty, plant & equipment -Incremental depreciation 4,016,667

15,864,804

Other comprehensive income / (loss)

3,282,608

10,833,307

7,550,699 11,848,137


30-SEP-2017RUPEES

30-SEP-2016RUPEES




CASH FLOW FROM OPERATING ACTIVITIES

Adjustment:

EFFECT OF CASH FLOW DUE TO WORKING CAPITAL CHANGES

Cash generated from operations

Profit / (loss) before taxation

Depreciation 32,322,581 31,177,430Provision for gratuity 6,350,550Loss /(gain) on disposal of property,plant & equipment 368,724 (384,794)

Finance cost 32,751,948

72,440,965 62,482,968

Operating profit

(Increase) / Decrease in Current AssetsStores, spares and loose tools (8,070,515) (8,350,963)

Trade debts - Un-secured considered good (36,649,046) 33,674,488

Trade and other payables 84,516,935 130,758,443

(219,874,529) 103,271,183

Payments for:(5,254,916) (4,720,122)

(48,788,952) (65,865,615)

Net cash (used) / provided by operating activitiesC/f ...

6,997,712

Un-realized loss/(gain) on sale of shares - (443,394)25,783,176

before working capital changes 80,865,138 85,305,153

Stock in trade (233,469,122) (125,691,737)

Loans and advances (74,350,393) (14,543,900)Deposits, prepayments and other receivables (32,717,525) 2,119,698

Gratuity paidTaxes paidFinancial charges (32,901,971) (28,725,640)

8,424,173 22,822,185

(385,256,601) (112,792,414)Increase / (Decrease) in Current Liabilities:

(10,632,065) (32,419,853)

(268,663,481) 37,405,567

....

NADEEM TEXTILE MILLS LIMITEDCONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)


30-SEP-2016RUPEES

30-SEP-2017RUPEES

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8

30-SEP-2016RUPEES

30-SEP-201RUPEES

7

b/f (268,663,481) 37,405,567

Addition to property, plant & equipment (18,545,850) (46,781,458)Long term deposit - (495,000)Proceeds from disposal of property,plant and equipment 2,796,517 870,000Net Cash flow used in investing activities (15,749,333) (46,406,458)

(284,412,814) (9,000,891)

Proceeds / (repayments) of long term liabilities (49,005,146) (30,294,834)

Net Cash flow used in financing activities (333,417,960) (39,295,725)

Cash and cash equivalents at beginningof the period (1,299,796,859) (1,160,167,133)

Cash and cash equivalents at end of the period (1,633,214,819) (1,199,462,857)

CASH FLOWS FROM INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES

Net Increase / (Decrease) in cash andcash equivalents

.....


NADEEM TEXTILE MILLS LIMITEDCONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)





Balance as at June 30, 2016 156,195,000 123,710,000 182,831,184 462,736,184

Total comprehensive income(July 01, 2016 to September 30, 2016) - -

Balance as at June 30, 2017 156,195,000 123,710,000 202,021,367 481,926,367

Dividend payable - - (6,724,192) (6,724,192)

- - 10,833,307

15,864,805 15,864,805

Total comprehensive income(July 01, 2017, to September 30, 2017) 10,833,307

Balance as at September 30, 2016 156,195,000 123,710,000 198,695,989 478,600,989

Balance as at September 30, 2017 156,195,000 123,710,000 486,035,482206,130,482


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NADEEM TEXTILE MILLS LIMITEDCONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)


UN-APPRO-PRIATED

PROFIT/(LOSS)CAPITALRESERVE

ISSUEDSUBSCRIBEDAND PAID UP

CAPITALTOTALEQUITY

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1 STATUS AND NATURE OF BUSINESS

2 STATEMENT OF COMPLIANCE

3 ACCOUNTING POLICIES

4 ACCOUNTING ESTIMATESAND JUDGMENTS

5 PROPERTY, PLANT & EQUIPMENT

Nadeem Textile Mills Limited (the "Company") is a public listed company incorporated underthe Companies Ordinance, 1984 and is quoted on the Pakistan Stock Exchange (formerlyKarachi Stock Exchange). The company is in the business of manufacturing and sale of yarns.The manufacturing facility of the company is located at A-265, S.I.T.E, Nooriabad and E-11,S.I.T.E, Kotri, District Dadu, Sindh. The registered business office of the company is situatedat Suite A-801 toA-804 Lakson Square Building No.3, Sarwar Shaheed Road, Karachi.

This condensed interim financial report of the Company for the three months ended September30, 2017 has been prepared in accordance with the requirements of the InternationalAccounting Standards 34 - Interim Financial reporting and provisions of and directives issuedunder the repealed Companies Ordinance,1984. In case where requirements differ, theprovisions of or directives issued under the Ordinance have been followed.

This condensed interim financial report comprises of the condensed interim balance sheet asat Septemebr 30, 2017 and the condensed interim profit and loss account, condensed interimstatement of comprehensive income, condensed interim statement of changes in equity andthe condensed interim cash flow statement together with the condensed interim notes to theinterim financial information forming for the three months ended.

The comparative condensed balance sheet, presented in this condense interim financialreport, as at June 30, 2017 has been extracted from the annual audited financial statementsof the Company for the year ended June 30, 2017 whereas the comparative condensedinterim profit and loss account, condensed interim statement of comprehensive income,condensed interim statement of changes in equity and condensed interim cash flowstatement for the three months period ended September 30, 2016 have been extracted fromthe condensed interim financial information for the three months ended September 30, 2016.

These interim financial information have been prepared using the same accountingconvention, basis of preparation and significant accounting policies as those applied in thepreparation of the audited financial statements for the year ended June 30, 2017.

The preparation of the condensed interim financial information in conformity with approvedaccounting standards require management to make estimates, assumptions and usejudgments that affect the application of policies and reported amounts of assets and liabilities,income and expenses. The estimates and underlying assumptions are reviewed on anongoing basis. Revisions to accounting estimates are recognised in the period in which theestimate is revised if the revision affects only that period, or in the period of the revision andfuture periods if the revision affects both current and future periods.

In preparing the condensed interim financial information, the significant judgments made bymanagement in applying the Company’s accounting policies and the key sources ofestimation uncertainty were the same as those that applied to the preceding published annualfinancial statements of the Company as at and for the year ended June 30, 2017.

Property, plant & equipment 1,598,914,710 1,620,000,780Capital work in progress 11,931,159 7,349,561

1,610,845,869 1,627,350,341

This details of operating property, plant & equipment that have been added / disposed ofduring the three months period ended September 30, 2017 is as follows:

NOTES TO THE FINANCIAL STATEMENTS (UN-AUDITED)CONDENSED INTERIMFOR THE 1ST QUARTER ENDED SEPTEMBER 30, 2017

NADEEM TEXTILE MILLS LIMITED


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ACQUISITION AND DISPOSAL OF PROPERTY, PLANT & EQUIPMENT

Additions Deletions Additions DeletionsRupees

14,401,751 (4,625,000) 118,855,398 (11,411,675)

6 CONTINGENCIES & COMMITMENTSContingencies

Commitments

7 TRANSACTIONS WITH RELATED PARTIES

Balance outstanding:

8 FINANCIAL RISK MANAGEMENT

9 DATE OFAUTHORIZATION FOR ISSUE

10 GENERAL

L 142

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and - Leasehold - - ,125,000 -Factory building - - ,486,841 -Office premises - - ,123,394 -Plant & machinery 3,384,501 (3,150,000) 107,066,359 (9,609,961)Computer equipment 31,450 - 819,498 -Office equipment 140,800 - 271,872 -Furniture & Fixture - - 479,434 -Vehicle 845,000 (1,475,000) 2,483,000 (1,801,714)

Contingencies are same as previous financial statements dated June 30, 2017.

Against letters of credit 156,079,848 88,782,160Bank guarantee to excise & taxation department 19,025,753 18,700,000Bank guarantee to HESCO 10,290,000 10,290,000Revolving letter of credit to SSGC 33,822,955 33,822,955FBP outstanding 530,013,500 493,546,942Civil contractor 2,559,148 2,955,382

Electricity purchased 62,039,177 54,378,985Rental income 10,000 10,000Weigh bridge expenses 45,000 -Loan received 2,500,000 6,000,000Loan repaid 46,785,000 31,350,000

Nadeem International (Pvt.) Limited 363,500,000 314,250,000Nadeem Power Generation (Pvt.) Limited 10,913,058 30,914,184Loan from director 4,800,000 4,800,000

The companies financial risk management objectives and policies are consistent with thatdisclosed in the financial statements for the year ended June 30, 2017.

These financial statements were approved by the Board of Directors and authorized for issueon October 28, 2017.

Figures in these financial statements have been rounded off to the nearest rupee.

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( )Un-Audited Sep. 30, 2017 ( )Audited June 30, 2017


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NOTES TO THE FINANCIAL STATEMENTS (UN-AUDITED)CONDENSED INTERIMFOR THE 1ST QUARTER ENDED SEPTEMBER 30, 2017

NADEEM TEXTILE MILLS LIMITED

nadeem first quarter septembe · 2017. 10. 28. · 5 nadeem textile mills limited condensed interim...

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