Final Book 31, March 2017 - colonytextiles.com Quarter March 31 2017 Final.pdf · Meezan Bank...

CONDENSED INTERIM FINANCIAL INFORMATIONfor the 3rd Quarter ended

March 31, 2017(un-audited)

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COMPANY INFORMATIONBoard Of Directors

Board CommitteesAudit Committee

HR & Remuneration Committee

Other Management Committees

Mr. Mughis A. Sheikh (Chairman)(Chief Executive Officer)Mr. Fareed M. Sheikh

Mr. Muhammad Tariq

Mr. Muhammad Atta ullah Khan

Mr. Muhammad Ashraf Saif

Mr. Abdul Hakeem Khan Qasuria

Mr. Muhammad Ikram ul Haq

Mr. Muhammad Ashraf Saif (Chairman)



Mr. Muhammad Ashraf Saif (Chairman)

Mr. Muhammad Ikram ul Haq


Executive Committee

Mr. Fareed M. Sheikh (Chairman)

Mr. Muhammad Tariq


Technical Committee


Mr. Muhammad Tariq

Mr. Zafar Mohyuddin

Finance Committee


Mr. Atta Mohyuddin Khan

Mr. Bilal Ahmad Khan

Mr. Hammad Shakeel

Social Compliance & Human Resource




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Legal Advisor

Registered Address

Share Registrar

Bankers

HAIDERMOTABNR

Advocates and Corporate Counsel

M. Ismail Aiwan-e-Science Building

205 Ferozepur Road, Lahore-54600

Phone : 042-35758970-2

Fax : 042-35763247

Email : [email protected]

Website : www.colonytextiles.com

Hameed Majeed Associates (Pvt.) Limited

HM House, 7 Bank Square

Lahore.

Phone: (042) 37235081-2, Fax: 042-37358817

Email : [email protected]

Faysal Bank Limited

Habib Bank Limited

BankIslami Pakistan Limited

Meezan Bank Limited

National Bank of Pakistan

Soneri Bank Limited

Standard Chartered Bank (Pakistan) Limited

Silk Bank Limited

The Bank of Punjab

United Bank Limited

Summit Bank Limited

Company Secretary

Chief Financial Officer

Auditors


Mr. Muhammad Abid

Tariq Abdul Ghani Maqbool & Co.

Chartered Accountants

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For and on behalf of the Board

Fareed M. Sheikh

Chief Executive Officer

Lahore

April 29, 2017

DIRECTORS’ REVIEW

Dear Members,

It is our pleasure to present here our interim condensed financial statements for the nine months period ended March 31, 2017.

Your company has achieved a net turnover of Rs. 9,529 million for the nine months ended (2016: 9,071 million) and earned a gross profit of Rs. 951 million as compared with Rs. 371 million for the same period of the last year. The net profit for the period is Rs. 2.72 million as compared with loss of Rs. 799 million for the same period of the last year and consequently earnings per share is Rs. 0.01 (2016: Loss per share Rs. 1.60).

The overall economic situation of Pakistan is under severe pressure due to increased prices of energy, continued economic volatility, fierce competition in international markets and rising cost of business over the last several years which has hampered the exports growth, turnover and made our products un-competitive. To make the matters worse the mini scale amount of Refund Processing Orders issued by FBR were cancelled and now the fate of large amounts of refunds stuck is totally uncertain.

FUTURE OUTLOOK

The challenging operating environment and increasing competitive intensity has considerably declined textile exports over past few years. The Government of Pakistan announced textile package for the industry which is still nowhere to be seen after lapse of several months.

Despite of challenging macro-economic scenario arising from uncertain security and political environment, increasing competition from regional players and sluggish overseas demand, the management is trying to improve the situation through better marketing by winning customer confidence and improved capacity utilization and better supply chain management to keep cost low.

We would like to place on record our deep appreciation for the efforts of our executives, officers and other staff members for their hard work, cooperation and sincerity to the company.

ASSETS

Non current assets

Property, plant and equipment 9 18,851,200

19,610,953

Investment Property 489,160

-

Long term investments 10 485,720

175,425

Long term deposits 49,912

49,650

19,875,992

19,836,028Current assets

Stores, spares and loose tools 225,874

213,718

Stock in trade 11 4,936,817

5,184,692

Trade debts 712,864 462,075

Loans, advances, deposits and other receivables 259,526 215,993

Other financial assets 39 38

Tax refunds due from Government 781,282 750,700

Cash and bank balances 32,588 56,885

6,948,990 6,884,101

Total assets 26,824,982 26,720,129

The annexed selected notes from 1 to 16 form an integral part of this condensed interim financial

information.

(Unaudited) (Audited)

March 31, June 30,

2017 2016

NoteEQUITY AND LIABILITIES

Share capital and reserves

Share capital 4 4,980,100

4,980,100

Reserve arising on amalgamation 3,156,388

3,156,388

General reserves 4,702

4,702

Revenue reserves (362,254)

(364,974)

Surplus on remeasurement of investments 322,274

474

8,101,210

7,776,690

Surplus on revaluation of fixed assets 12,644

-

Non current liabilities

Long term finances 5 7,145,604

7,223,207

Directors subordinated loan 120,000

120,000

Liabilities against assets subject to finance lease 6 42,701

32,371

Deferred liabilities 2,568,937

2,447,971

9,877,242

9,823,549Current liabilities

Trade and other payables 1,387,646 1,993,536

Short term bank borrowings 7 4,296,327 4,302,009

Interest / mark-up payable 1,577,008 1,329,798

Current portion of long term liabilities 1,477,215

1,456,685

Provision for taxation 95,690 37,862

8,833,886 9,119,890Contingencies and commitments 8 - -

Total equity and liabilities 26,824,982 26,720,129

(Rupees in '000')

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AS AT MARCH 31, 2017

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FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2017

March 31, March 31, March 31, March 31,

2017 2016 2017 2016

Note

Sales - net 9,529,410

9,071,137

2,981,706

2,931,189

Cost of goods sold (8,579,224)

(8,699,499)

(2,705,036)

(2,767,344)

Gross profit 950,186

371,638

276,670

163,845

Distribution expenses (133,931)

(123,644) (45,347) (40,630)

Administrative expenses (148,748)

(139,381)

(30,845)

(30,744)

Finance Cost (582,283)

(648,679)

(169,647)

(211,803)

(864,962)

(911,704)

(245,839)

(283,177)

Profit/(Loss) before taxation 85,224

(540,066)

30,831

(119,332)

Other operating income / (loss) 13,186

(168,668)

1,442

(2,898)

98,410

(708,734)

32,273

(122,230)

Taxation 12 (95,690)

(90,711)

(31,500)

(28,702)

Profit/(Loss) for the period 2,720

(799,445)

773

(150,932)

Other comprehensive income

Other comrehensive income/(Loss)-net of tax 334,444 (30) 344,562 -

Total comprehensive (loss) / income 337,164 (799,475) 345,335 (150,932)

Earnings/(Loss) per share - basic and diluted (Rupees) 0.01 (1.60) 0.00 (0.30)

The annexed selected notes from 1 to 16 form an integral part of this condensed interim financial information.

- - - - - - - - - - - - - - - (Rupees in '000') - - - - - - - - - - - - - - -

Nine months ended Three months ended

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March 31, March 31,

2017 2016

A. CASH FLOWS FROM OPERATING ACTIVITIES

(Loss) / profit before taxation 98,410 (708,734)

Adjustments for :

Provision for staff retirement benefit - gratuity 59,209 48,232

Depreciation on property, plant and equipment 639,229 661,211

Loss/(Gain) on remeasurement of investment (344,570) 4

Loss on disposal of investment property - 119,997

Share of loss on equity investment 33,931 47,957

Gain on disposal of property, plant and equipment (229) (895)

Finance cost 582,283 648,679

969,853 1,525,185

Operating cash flows before movements in working capital 1,068,263 816,451

Changes in working capital

(Increase) / decrease in current assets

Stores, spares and loose tools (12,156) (7,433)

Stock in trade 247,875 (144,927)

Trade debtors (250,789) 251,290

Loans, advances, deposits and other receivables (43,533) 100,983

Tax refunds due from Government (30,582) (156,572)

Increase / (decrease) in current liabilities

Trade and other payables (412,398) (115,952)

(501,583) (72,611)

Cash generated from operations 566,680 743,840

Finance cost paid (62,771) (340,285)

Gratuity paid (55,641) (28,575)

Income tax paid (68,445) (101,736)

(186,857) (470,596)

Net cash from / (used in) operating activities 379,823 273,244

B. CASH FLOWS FROM INVESTING ACTIVITIES

Additions to property, plant and equipment (351,783) (515,011)

Proceeds from disposal of property, plant and equipment 350 1,340

Long term deposits (262) -

Proceeds from disposal of investment property - 311,618

(Rupees in '000')

Nine months ended

Net cash from / (used in) investing activities (351,695) (202,053)

C. CASH FLOWS FROM FINANCING ACTIVITIES

Long term finances repaid (52,266) (107,307)

Repayment of lease finance 5,523 (5,491)

Short term borrowings - net (5,682) 20,519

Net cash (used in) / from financing activities (52,425) (92,279)

Net (decrease) / increase in cash and cash equivalents (A+B+C) (24,297) (21,088)

Cash and cash equivalents at beginning of the period 56,885 58,271

Cash and cash equivalents at end of the period 32,588 37,183


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Balance at July 1, 2015 4,980,100 3,156,388 4,702 525,711 536 8,667,437

Loss for the period - - (799,445) - (799,445)

Other comprehensive Loss - - - (30) (30)

Total comprehensive loss for the

period ended March 31, 2016 - - (799,445) (30) (799,475)

Balance at March 31, 2016 4,980,100 3,156,388 4,702 (273,734) 506 7,867,962

Balance at July 1, 2016 4,980,100 3,156,388 4,702 (364,974) 474 7,776,690

Profit for the period -

-

-

-

-

- -

2,720 - 2,720

Other comprehensive income

Gain on remeasurementof investment 321,800 321,800

Total comprehensive loss for the

period ended March 31, 2017 - - - 2,720 321,800 324,520

Balance at March 31, 2017 4,980,100 3,156,388 4,702 (362,254) 322,274 8,101,210


- - - - - - - - - - - - (Rupees in '000') - - - - - - - - - - - -

Share capital(Deficit) / surplus

on revaluation of

investments

Revenue

Reserves

General

Reserves

Reserve arising

on

amalgamation

Total

1. LEGAL STATUS AND NATURE OF BUSINESS

1.1

1.2

2. BASIS OF PREPARATION

2.1

2.2

2.3

3. SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES

Unaudited Audited

March 31, June 30,

2017 2016

4. SHARE CAPITAL

Authorized capital

185,000,000 (June 30, 2016: 185,000,000)

ordinary shares of Rs.10/- each 1,850,000

1,850,000

Capital of merged companies

(345,000,000 ordinary shares of Rs.10/- each) 3,450,000

3,450,000

5,300,000

5,300,000

Issued, subscribed and paid up capital

200 200

4,979,900 4,979,900

4,980,100 4,980,100

20.000 ordinary shares of Rs. 10 each issued as fully

paid shares

(Rupees in '000')

Colony Textile Mills Limited " The Company" was incorporated in Pakistan on January 12, 2011. The company has applied its listing on Karachi Stock

Exchange. The registered office of the company is located at M. Ismail Aiwan e Science, Feroze Pur Road, Lahore and its manufacturing facilities are

located at Lahore and Multan, in the Province of Punjab. The principal business of the company is to manufacture and sale of yarn, fabric and trading

in real estate.

This condensed interim financial information is presented in Pak Rupees, which is the Company's functional and presentation currency.

This condensed interim financial information has been prepared under the "historical cost convention" except staff retirement gratuity carried at

present value and certain financial instruments carried at fair value.

This condensed interim financial report of the company for the nine-months period ended March 31, 2017 has been prepared in accordance with the

requirements of International Accounting Standard 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.

Operations of the textile are very much seasonal in nature such as cotton purchase which depends upon the crop season. Effects of such operations

are also reflected in the condensed interim financial information.

The accounting policies and the methods of computation adopted in the preparation of this condensed interim financial report are the same as those

applied in the preparation of the financial statements for the year ended June 30, 2016.

497,989,959 fully paid ordinary shares of Rs. 10 each

issued to the shareholders of amalgamated entities.

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8. CONTINGENCIES AND COMMITMENTS

8.1 There is no significant change in the status of contingencies as reported in the annual financial statements for the year

8.2 There is no significant change in the status of commitments as reported in the annual financial statements for the year

9. PROPERTY, PLANT AND EQUIPMENT

Operating assets - owned

Operating assets - leased

Capital work in progress

9.1 Operating assets

Opening book value

Additions during the period/ year:

Building on freehold land

Plant and machinery

Factory tools and equipments

Furniture and fixtures

Office and hospital equipments

Vehicles

Book value of assets disposed during the period

Assets transferred to Investment Property

Depreciation charge for the period / year

Closing book value

Unaudited Audited

March 31, June 30,

2017 2016

18,018,594

18,869,288

292,512

288,182

540,094

453,483

18,851,200

19,610,953

18,869,288

18,810,017

15,262 100,736

248,251 807,188

76

100

411

935

526

1,379

646 1,764

265,172 912,102

(121) (545)

(476,516) -

(639,229) (852,286)

18,018,594 18,869,288

(Rupees in '000')

5. LONG TERM FINANCING - Secured

From banking companies

Current portion shown under current liabilities

6. LIABILITIES AGAINST ASSETS

SUBJECT TO FINANCE LEASE

Present Value of lease payments

Current portion shown under current liabilities

7. SHORT TERM BORROWINGS - Secured

Short term running finances are availed from various commercial banks under markup

arrangements aggregate to Rs.4,296 million (June 30, 2016: Rs. 4,302 million)

Unaudited Audited

March 31, June 30,

2017 2016

(Rupees in '000')

8,592,975 8,645,241

(1,447,371)

(1,422,034)

7,145,604

7,223,207

72,545

67,022

(29,844)

(34,651)

42,701

32,371

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ended June 30, 2016.

ended June 30, 2016.

10. LONG TERM INVESTMENTS

Investment in Imperial Sugar Limited

Other investments

11. STOCK IN TRADE

Textile

Raw material

Work in process

Finished goods

Real estate business

Land held for development and resale

12. TAXATION

Current

13. RELATED PARTIES TRANSACTIONS

Related parties

Contribution to Provident fund trust

Related parties comprise directors and provident fund trust. The company in the normal course of business

carries out transactions with various related parties. Aggregate transactions are as follows:

March 31, March 31, March 31, March 31,

2017 2016 2017 2016

11,680 9,814 3,893 2,831

Nine Month Ended Three Month Ended

(Rupees in '000') (Rupees in '000')

484,772

174,477

948

948

485,720

175,425

385,435

442,997

438,241

436,792

3,616,394

3,808,156

4,440,070

4,687,945

496,747

496,747

4,936,817

5,184,692

Unaudited Unaudited

March 31, March 31,

2017 2016

95,690 90,711

(Rupees in '000')

Unaudited Audited

March 31, June 30,

2017 2016

(Rupees in '000')

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14. SEGMENT INFORMATION

Mar-17

Sales

Total 7,407,268

6,076,675

2,244,919

3,058,973

9,652,187

9,135,648

Inter-segment (122,777) (64,511) -

-

(122,777) (64,511)

7,284,491

6,012,164

2,244,919

3,058,973

9,529,410

9,071,137

Cost of Sales (6,531,363) (5,741,669) (2,047,861) (2,957,830) (8,579,224) (8,699,499)

Gross Profit 753,128 270,495

197,058

101,143

950,186

371,638

Distribution Cost (111,163) (71,497) (22,768) (52,147) (133,931) (123,644)

Administration Cost (124,948) (87,142) (23,800) (52,239) (148,748) (139,381)

(236,111) (158,639) (46,568) (104,386) (282,679) (263,025)

517,017 111,856

150,490 (3,243) 667,507 108,613

(465,826) (393,022) (116,457) (255,657) (582,283) (648,679)

51,191 (281,166) 34,033 (258,900) 85,224 (540,066)

Unallocated income and expenses

Other (loss) / Income 13,186 (168,668)

98,410 (708,734)

Taxation (95,690) (90,711)2,720 (799,445)

334,444 (30)

Total comprehensive Income/( loss) for the period 337,164 (799,475)

Mar-17

SalesExternal 2,272,196

2,115,587

742,605

834,914

3,014,801

2,950,501

Inter-segment (33,095) (19,312) -

-

(33,095) (19,312)

2,239,101

2,096,275

742,605

834,914

2,981,706

2,931,189

Cost of Sales (2,040,082) (2,012,376) (664,954) (754,968) (2,705,036) (2,767,344)

Gross Profit 199,019 83,899

77,651 79,946

276,670

163,845

Distribution Cost (29,111) (25,689) (16,236) (14,941) (45,347) (40,630)

Administration Cost (20,614) (20,614) (10,231) (10,130) (30,845) (30,744)

(49,725) (46,303) (26,467) (25,071) (76,192) (71,374)

149,294 37,596 51,184 54,875 200,478 92,471

(115,163) (140,896) (54,484) (70,907) (169,647) (211,803)

34,131 (103,300) (3,300) (16,032) 30,831 (119,332)

Unallocated income and expenses

Other (loss) / Income 1,442 (2,898)

32,273 (122,230)

Taxation (31,500) (28,702)

773 (150,932)344,562 -

Total comprehensive Income/( loss) for the period 345,335 (150,932)

Spinning Weaving Total Company

Other comprehensive loss

Mar-16 Mar-17 Mar-16 Mar-17 Mar-16

Three Month Ended Three Month Ended Three Month Ended

Finance cost

Nine Month Ended

Mar-16 Mar-17 Mar-16 Mar-17 Mar-16

Profit/(Loss) before tax

Profit/(Loss) after tax for the period

Other comprehensive Income/( loss)

Finance cost

Profit/(Loss) after tax for the period

Profit/(Loss) before tax

Spinning Weaving

Rupees in "000"

Total Company

Nine Month Ended Nine Month Ended

Rupees in "000"

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Reconciliation of reportable segment assets and liabilities

Audited Audited

Jun-16 Jun-16

10,811,163

11,246,882

8,040,037

8,364,071

18,851,200 19,610,953

489,160 -

485,720 175,425

32,588 56,885

6,966,314 6,876,866

Total assets as per balance sheet 26,824,982 26,720,129

120,000 120,000

95,690 37,862

26,609,292 26,562,267

26,824,982 26,720,129

Investment property

Unaudited

Rupees in "000"

Mar-17

Total CompanySpinning Weaving

Unaudited Unaudited

Other corporate assets

Total liabilities as per balance sheet

Unallocated liabilities:

Directors Subordinated Loan

Provision for taxation

Other corporate liabilities

Total assets for reportable segments

Unallocated assets:

Long term investments

Cash and bank balnces

Audited

Mar-17 Mar-17 Jun-16

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15. DATE OF AUTHORIZATION OF ISSUE

16. GENERAL

Figures have been rounded off to the nearest thousand rupees.

This condensed interim financial information was authorized for issue by the Board of Directors on April 29, 2017.

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NOTES

Final Book 31, March 2017 - colonytextiles.com Quarter March 31 2017 Final.pdf · Meezan Bank...

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Transcript of Final Book 31, March 2017 - colonytextiles.com Quarter March 31 2017 Final.pdf · Meezan Bank...