Interim March 2015 - Samin Textiles, Ltd

Interim Financial Report
for the nine months ended
March 31, 2015
Samin Textiles Limited
Contents
Company Information
01
Directors’ Review
02
Condensed Interim Balance Sheet
03
Condensed Interim Profit and loss account
04
Condensed Interim Statement of comprehensive Income
05
Condensed Interim Cash flow statement
06
Condensed Interim Statement of Changes in Equity
07
Notes to the Condensed Interim Information
08
Company Information
Shares Registrar
Board of Directors
Mr. Sarmad Amin
Mr. Jehanzeb Amin
Mr. Safder Hussain Tariq
Mr. Shehryar Amin
Mr. Tariq Jilani
Mr. Qamber Hamid
Mr. Jamil Masud
Chairman
Chief Executive
Independent Director
Corplink (Pvt) Limited
Wings Arcade,
1-K, Commercial Model Town,
Lahore, Pakistan.
Tel: 92 - 42 - 35839182
Fax: 92 - 42 - 35869037
Registered/Head Office
Chief Financial Officer
Company Secretary
50-C, Main Gulberg,
Lahore, Pakistan.
Tel: 92 - 42 - 35753761
Fax: 92 - 42 - 35753688
Mr. Sohail Omer
Mills
Chief Internal Auditor
8th Kilometer,
Manga - Raiwaind Road,
District Kasur, Pakistan.
Mr. Safder Hussain Tariq
Mr. Wasim Abbas
Auditors
Website
Anjum Asim Shahid Rahman
Chartered Accountants
www.samintextile.com
Legal Advisor
Imtiaz Siddiqui & Associates
Audit Committee
Mr. Qamber Hamid
Mr. Jamil Masud
Mr. Tariq Jilani
Mr. Wasim Abbas
Chairman
Member
Member
Secretary
Human Resource & Remuneration Committee
Mr. Jamil Masud
Mr. Tariq Jilani
Mr. Shehryar Amin
Chairman
Member
Member
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
Pak China Investment Company Limited
01
Directors’ Review
The board of directors of your company is pleased to present before you the un-audited
financial statements for the 3rd quarter ended March 31, 2015. 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:
Comparison of significant financial figures for the period under review with the
corresponding period is exhibited below:Rupees in million
Nine months
ended
March 31,
2015
Net Sales
Gross Profit / (Loss)
(Loss) / Profit after tax
1,432.614
Quarter
ended
March 31,
2015
394.331
(134.304)
(68.142)
13.952
(107.981)
Nine months
ended
March 31,
2014
Quarter
ended
March 31,
2014
1984.77
444.89
1.56
(172.17)
(19.75)
(82.10)
The above noted comparative figures reveal that during the period under review the
company posted net sales amounting to Rs.1,432.614 million and a net profit after tax of Rs.
13.952 million as compared to net sales of Rs.1,984.77 million and net loss of Rs. 172.17 million
for the corresponding period of last financial year.
Intense competition among regional players and internationally sluggish demand of grey
fabric has caused slow down in overall industrial situation thus effecting viability of the
project. Company is also facing austere working capital crisis. To overcome this situation
arrangements are being made to liquidate company's investment in Security General
insurance Company Limited. Cost corrective measures are being adopted and
production plans being revitalized in order to ensure survival of the Company.
Future outlook:
Your management is taking stringent measures to bring the situation under control. A BMRE
plan is already under consideration to re modernize production facilities. Company's
balance holding in Security General Insurance Company Limited is being disposed of for
meeting working capital needs and BMRE plan. Once sought after plans are implemented,
company will definitely be in a position to produce prolific results.
Management is fully devoted and not leaving any stone unturned to turn the existing
situation around.
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
Lahore :
Dated : April 27, 2015
02
Jehanzeb Amin
Chief Executive
Condensed Interim Balance Sheet (Un-audited)
as at March 31, 2015
Note
Un-audited
Mar 31, 2015
Rupees
Audited
June 30, 2014
Rupees
Equity and liabilities
Share capital and reserves
Share capital
Reserves
267,280,000
267,280,000
23,253,707
701,451,810
Total share capital and reserves
290,533,707
968,731,810
Surplus on revaluation of property, plant and equipment
265,831,341
272,880,194
Liabilities
Non-current
Subordinated loan
Long term financing
6
Deferred liabilities
7
Total non-current liabilities
10,411,566
10,411,566
91,444,570
115,772,617
200,097,146
307,974,194
301,953,282
434,158,377
263,125,662
247,892,382
Current
Trade and other payables
Interest /markup accrued on borrowings
Short term borrowings
Current portion of long term borrowings
41,892,413
35,687,172
736,862,846
896,175,554
60,667,695
110,301,440
Total current liabilities
1,102,548,616
1,290,056,548
Total liabilities
1,404,501,898
1,724,214,925
Total equity and liabilities
1,960,866,946
2,965,826,929
897,533,231
903,518,334
Contingencies and commitments
8
Assets
Non-current
Property, plant and equipment
9
Intangible assets
Long term investments
10
1,823,488
2,145,280
1,100,000
405,770,000
Long term deposits
12,418,739
12,823,739
Non-current assets
912,875,458
1,324,257,353
Current
Stores, spare parts and loose tools
70,223,487
76,754,664
159,137,650
320,747,469
Trade debts
65,820,372
57,619,607
Loans and advances
24,771,253
20,245,940
Stock in trade
Trade deposits, prepayments and balances with statutory authorities
Tax refunds due from government
Investment
10
Interest accrued
Cash and bank balances
Current assets
Non-current assets classified as held for sale
Total assets
10
1,228,640
1,228,640
85,033,218
91,398,423
-
705,330,000
473,944
365,269
20,952,924
17,812,734
427,641,488
1,291,502,746
620,350,000
350,066,830
1,960,866,946
2,965,826,929
The annexed notes from 1 to 17 form an integral part of this interim financial information.
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
03
Condensed Interim Profit and loss account (Un-audited)
for the nine months ended March 31, 2015
Note
Sales - net
Cost of sales
11
Gross profit / (loss)
For the nine
months ended
March 31, 2015
Rupees
For the nine
months ended
March 31, 2014
Rupees
For the quarter
ended
March 31, 2015
Rupees
For the quarter
ended
March 31, 2014
Rupees
1,432,614,426
1,984,768,341
394,331,854
444,893,720
(1,566,918,324)
(1,983,211,663)
(462,479,557)
(464,641,793)
(68,147,703)
(19,748,073)
(134,303,898)
1,556,678
330,267,798
22,776,871
Distribution cost
(24,384,446)
(32,951,818)
(6,584,221)
(11,274,160)
Administrative expenses
(41,291,858)
(41,743,804)
(13,862,617)
(12,981,735)
Other operating income
Other operating expenses
Operating profit / (loss)
Finance cost
Profit / (loss) before taxation
Taxation
Profit / (loss) for the period
Profit / (loss) per share - basic & diluted
12
(657,590)
-
130,199
117,667
(323,713)
(1,223,697)
(88,788,055)
(45,109,998)
129,630,006
(50,362,073)
(100,675,072)
(104,281,879)
(31,229,149)
(33,971,611)
28,954,935
(154,643,952)
(120,017,203)
(79,081,609)
(15,002,681)
(17,526,258)
12,035,636
(3,013,158)
13,952,254
(172,170,210)
(107,981,567)
(82,094,767)
0.52
(6.44)
(4.04)
(3.07)
The annexed notes from 1 to 17 form an integral part of this interim financial information.
JEHANZEB AMIN
Chief Executive
04
SAFDAR HUSSAIN TARIQ
Director
Condensed Interim Statement of Comprehensive Income (Un-audited)
for the nine months ended March 31, 2015
Profit/(loss) after taxation
For the nine
months ended
March 31, 2015
For the nine
months ended
March 31, 2014
For the quarter
ended
March 31, 2015
For the quarter
ended
March 31, 2014
Rupees
Rupees
Rupees
Rupees
(172,170,210)
(107,981,567)
13,952,254
(82,094,767)
Other comprehensive income
Items that will not be reclassified to profit or
(loss)
-
-
-
-
Items that may be reclassified subsequently
to profit or (loss)
Gain/(loss) on remeasurement of availablefor-sale investment to fair value-net of tax
(368,536,875)
268,945,917
-
-
Other comprehensive income for the year
(368,536,875)
268,945,917
-
-
Total comprehensive income / (loss) for the period
(354,584,621)
96,775,707
(107,981,567)
(82,094,767)
The annexed notes from 1 to 17 form an integral part of this interim financial information.
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
05
Condensed Interim Statement of Cash flows (Un-audited)
for the nine months ended March 31, 2015
Note
Cash generated from operations
13
For the nine
months ended
March 31, 2015
Rupees
For the nine
months ended
March 31, 2014
Rupees
31,431,315
130,200,219
Finance cost paid
(94,047,487)
(96,974,341)
Income taxes paid
(16,862,284)
(21,461,690)
Net cash (used in) operating activities
(79,478,455)
11,764,189
Cash flows from investing activities
Increase in long term deposits
Proceeds from disposal of property, plant and equipment
Increase in long term investments
405,000
-
588,000
(100,000)
-
Proceeds from disposal of Investments
350,066,830
Additions to property, plant and equipment
(50,381,341)
(16,475,392)
Dividend received
Net cash from investing activities
-
16,325,000
20,429,828
316,315,490
4,542,436
(159,312,708)
(40,124,616)
(73,539,546)
14,994,868
Cash flows from financing activities
Net proceeds from short term borrowings
Net proceeds from long term financing
Repayment of lease liability
Net cash (used in) financing activities
Net change in cash and cash equivalents
(844,590)
(757,890)
(233,696,844)
(25,887,638)
3,140,191
(9,581,013)
Cash and cash equivalents at the beginning of the period
17,812,734
22,108,572
Cash and cash equivalents at the end of the period
20,952,924
12,527,560
The annexed notes from 1 to 17 form an integral part of this interim financial information.
JEHANZEB AMIN
Chief Executive
06
SAFDAR HUSSAIN TARIQ
Director
Condensed Interim Statement of Changes in Equity (Un-audited)
for the nine months ended March 31, 2015
Reserves
Particulars
Issued,
subscribed
and paid up
share capital
Rupees
Balance as at July 01, 2013
267,280,000
Capital reserveSurplus on
revaluation of Revenue reserveinvestment to fair Accumulated
value
losses
Rupees
1,400,730,371
Loss for the period
-
Other comprehensive income for
the period
-
268,945,917
Total comprehensive income/(loss)
for the period
-
268,945,917
Transfer from surplus on revaluation
of property, plant and equipment
on account of incremental
depreciation-net of income tax
-
-
-
Sub-total
Total Equity
Rupees
Rupees
Rupees
(253,895,906)
1,146,834,465
1,414,114,465
(172,170,210)
(172,170,210)
(172,170,210)
268,945,917
268,945,917
96,775,707
96,775,707
8,181,705
8,181,705
Balance as at March 31, 2014
267,280,000
1,669,676,288
(417,884,411)
1,251,791,877
1,519,071,877
Balance as at July 01, 2014
267,280,000
997,125,119
(390,559,476)
606,565,643
873,845,643
13,952,254
13,952,254
13,952,254
-
(368,536,875)
(368,536,875)
-
(235,776,168)
(235,776,168)
(590,360,789)
(590,360,789)
Profit/(loss) for the period
-
Other comprehensive income for
the period
-
(368,536,875)
Transfer to profit and loss account
on disposal of available for sale
investment
-
(235,776,168)
Total comprehensive income/(loss)
for the period
-
(604,313,043)
Transfer from surplus on revaluation
of property, plant and equipment
on account of incremental
depreciation-net of income tax
Balance as at March 31, 2015
267,280,000
-
392,812,076
8,181,705
(172,170,210)
13,952,254
7,048,853
(369,558,369)
7,048,853
7,048,853
23,253,707
290,533,706
The annexed notes from 1 to 17 form an integral part of this interim financial information.
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
07
Notes to the Condensed Interim Financial Information (Un-audited)
for the nine months ended March 31, 2015
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 the Lahore and
Karachi Stock Exchanges. 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 nine month period ended 31 March
2015 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, 2014.
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, 2014.
The new standards, amendments to the approved accounting standards and interpretations that are
mandatory for accounting periods beginning on or after July 1, 2014, 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, 2014.
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, 2014.
6
Un-audited
Audited
March 31, 2015
June 30, 2014
Rupees
Rupees
Long term financing - secured
Opening balance
Receipts during the period / year
224,852,747
-
242,722,232
-
Repayments during the period / year
(73,539,546)
(17,869,485)
Closing balance
151,313,201
224,852,747
(59,164,725)
(107,953,880)
92,148,476
116,898,867
Less:
Payable within next twelve months
Transaction cost
Amortization of transaction cost
(1,126,250)
422,344
(703,906)
Non-current portion
08
91,444,570
(1,689,375)
563,125
(1,126,250)
115,772,617
Notes to the Condensed Interim Financial Information (Un-audited)
for the nine months ended March 31, 2015
Note
7
Audited
June 30, 2014
Rupees
Rupees
Defered Liabilities
Defered tax
7.1
198,535,046
Staff gratuity
Total
8
Un-audited
March 31, 2015
306,412,094
1,562,100
1,562,100
200,097,146
307,974,194
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, 2014.
Note
Un-audited
Audited
March 31, 2015
June 30, 2014
Rupees
Rupees
Commitments
Commitments against foreign bills
9
37,256,850
8,999,204
893,262,326
899,247,429
Property, plant and equipment
Operating fixed assets
9.1
Capital work in progress
Total
9.1
4,270,905
897,533,231
903,518,334
899,247,429
961,201,348
Operating fixed assets
Written down value - opening
Add: Transferred from capital work in progress
Add: Cost of additions during the period / year 9.1.1
Disposals during the period / year (W.D.V)
9.1.1
4,270,905
-
1,620,714
50,381,341
17,790,649
949,628,770
980,612,711
-
(1,704,630)
Less: Depreciation
(56,366,444)
(79,660,652)
Written down value - closing
893,262,326
899,247,429
Building on freehold land
26,251,431
5,903,569
Plant and machinery
22,879,060
9,260,726
Cost of additions during the period / year
Furniture & Fittings
135,000
Office equipment
1,115,850
1,078,747
Vehicles
-
377,607
Electric installations
Total
-
1,170,000
50,381,341
17,790,649
09
Notes to the Condensed Interim Financial Information (Un-audited)
for the nine months ended March 31, 2015
10
11
Non-current assets classified as held for sale
10.1
During the year ended June 30, 2014, the company entered into a MOU with Adamjee Insurance
Company Limited for disposing off 3,684,914 shares of Security General Insurance Company
Limited at Rs. 95 per share. During the half year ended, such shares have been disposed off.
10.2
The company also intends to dispose off remaining 6,530,000 shares of Security General Insurance
Company Limited within one year.
Cost of sales
Un-audited
Un-audited
Nine months ended Nine months ended
March 31, 2015
March 31, 2014
Rupees
Rupees
Raw materials consumed
Un-audited
Quarter ended
March 31, 2015
Rupees
Un-audited
Quarter ended
March 31, 2014
Rupees
352,038,188
1,058,102,683
1,497,165,944
233,703,700
Salaries, wages and other benefits
116,147,366
95,624,287
41,491,387
24,801,417
Factory overheads
311,672,496
357,470,498
69,148,504
100,560,003
1,485,922,545
1,950,260,729
344,343,591
477,399,608
(Increase)/decrease in work in process
Opening work in process
Closing work in process
Adjustment of work in process
Cost of goods manufactured
6,779,303
15,904,307
2,923,786
11,397,288
(2,923,786)
(13,225,789)
(2,923,786)
(13,225,789)
3,855,517
2,678,518
1,489,778,062
1,952,939,247
-
(1,828,501)
344,343,591
475,571,107
(Increase)/decrease in finished goods
Opening stock
Closing stock
Adjustment of finished goods
Total
12
202,762,937
257,487,384
243,758,641
216,285,654
(125,622,675)
(227,214,968)
(125,622,675)
(227,214,968)
77,140,262
30,272,416
118,135,966
(10,929,314)
1,566,918,324
1,983,211,663
462,479,557
464,641,793
Other operating income
Note
Un-audited
nine months ended
March 31, 2015
Rupees
Un-audited
nine months ended
March 31, 2014
Rupees
Un-audited
Quarter ended
March 31, 2015
Rupees
Un-audited
Quarter ended
March 31, 2014
Rupees
Income from financial assets
Profit on deposit accounts
Dividend income
Interest income
238,346
228,626
16,325,000
20,429,828
46,987
117,667
-
-
347,021
-
83,212
-
313,046,597
-
-
-
Income from assets other than financial
assets
Gain on disposal of Investment
Gain on disposal of property, plant and
equipment
Foreign currency translation differences
Total
10
10.1
440,155
-
310,834
-
1,678,262
-
330,267,798
22,776,871
130,199
117,667
Notes to the Condensed Interim Financial Information (Un-audited)
for the nine months ended March 31, 2015
13
Un-audited
Un-audited
March 31, 2015
March 31, 2014
Rupees
Rupees
Cash (used in) generated from operations
Profit/(loss) before taxation
28,954,935
(154,643,952)
56,366,444
58,594,537
Adjustments for:
Depreciation on property, plant and equipment
Gain on disposal of property, plant and equipment
Amortization
Dividend income
Gain on disposal of Investment
Interest Income
Finance cost
Operating profit before changes in working capital
321,792
(16,325,000)
(313,046,597)
(108,675)
100,675,072
(143,162,030)
(440,155)
602,800
(20,429,828)
104,281,879
(12,034,719)
Changes in working capital
(Increase) /decrease in current assets
Stores, spare parts and loose tools
Stock in trade
6,531,177
4,243,789
161,609,819
103,110,267
Trade debts
(8,200,765)
(6,441,163)
Loans and advances
(4,525,313)
(4,323,851)
Trade deposits, prepayments and balances with statutory authorities
3,945,147
(263,339)
(Decrease) /increase in current liabilities
14
Trade and other payables
15,233,280
45,909,235
Cash (used in) / generated from operations
31,431,315
130,200,219
16,325,000
20,429,828
Transactions with related parties
Significant transactions with related parties
during six months are as follows:
Security General Insurance Company Limited
Dividend received
Mrs. Mehvish Amin
Office rent
Markup on subordinated loan
850,000
675,000
1,172,137
1,172,137
2,004
1,061
108,675
108,675
18,890,488
19,285,494
MCB Bank Limited
Profit received on PLS account
Onetel Pakistan (Pvt) Limited
Interes on loan
Directors and other key management personnel
Remuneration and benefits
11
Notes to the Condensed Interim Financial Information (Un-audited)
for the nine months ended March 31, 2015
Un-audited
Audited
March 31, 2015
June 30, 2014
Rupees
Rupees
Ordinary share capital
1,000,000
1,000,000
Loan
1,150,000
1,150,000
473,944
365,269
620,350,000
1,459,016,830
4,347,735
3,471,852
Significant balances with related parties as on
balance sheet date are as follows:
Ontel Pakistan (Private) Limited
Interest accrued on loan
Security General Insurance Company Limited
Investment
Insurance premium payable
15
Un-audited
March 31, 2014
Rupees
Rupees
Earnings (loss) per share - basic and diluted
Profit/(loss) for the period (Rupees)
13,952,254
(90,075,443)
Weighted average number of ordinary shares
26,728,000
26,728,000
Earning/(loss) per share (Rupees)
16
Un-audited
March 31, 2015
0.52
(3.37)
General
This financial information is presented in Pak Rupees, which is the Company's functional and presentation
currency. Figures have been rounded off to the nearest rupee, unless stated otherwise.
17
Date of authorization for issue
This financial information was authorized for issue on April 27, 2015 by the Board of Directors of the
Company.
JEHANZEB AMIN
Chief Executive
12
SAFDAR HUSSAIN TARIQ
Director
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