PDF mail Final - crescenttextile.com Quarter 30 Sep 09.pdfChartered Accountants Auditors Sargodha...
Transcript of PDF mail Final - crescenttextile.com Quarter 30 Sep 09.pdfChartered Accountants Auditors Sargodha...
1
2
Contents
Company Information
Directors’ Report to the Shareholders
Balance Sheet
Profit & Loss Account
Cash Flow Statement
Statement of Changes in Equity
Notes to the Financial Statements
3
4
5
6
7
8
9
3
Company information
AlBaraka Islamic Bank B.S.C (E.C)
Allied Bank Limited
Faysal Bank Limited
Habib Bank Limited
Meezan Bank Limited
MCB Bank Limited
National Bank of Pakistan
NIB Bank Limited
Standard Chartered Bank (Pakistan) Limited
United Bank Limited
Mr. Muhammad Anwar
Mr. Ahmad Shafi
Mr. Khalid Bashir
Mr. Muhammad Arshad
Mr. Muhammad Iqbal Hussain
(Nominee NIT)
Mr. Nasir Shafi
Mr. Tariq Shafi
Chairman &
Chief Executive
Director
Director
Director
Director
Director
Director
Audit Committee
Mr. Khalid Bashir
Mr. Nasir Shafi
Mr. Ahmad Shafi
Chairman
Member
Member
Chief Financial Officer
Mr. Sadiq Saleem
Mr. Naseer Ahmad Chaudhary
Corporate Secretary
Mr. Muhammad Attiq ur Rehman
Head of Internal Audit
Riaz Ahmad & Company
Chartered Accountants
Auditors
Sargodha Road,
Faisalabad, Pakistan
T: + 92-041-111-105-105
F: + 92-041-111-103-104
Mills & Head Office
Hassan & Hassan
Mr. Raza Abbas Chaudhary
Advocates
Advocate
Legal Advisor
The Crescent Textile Mills Limited is a listed Company
and its shares are traded on all three Stock Exchanges
in Pakistan.
Crescent Group Services (Pvt) Limited
306, 3rd Flr, Siddiq Trade Centre,
72-Main Boulevard, Gulberg,
Lahore, Pakistan
T: +92-042-5787592
F: + 92-042-5787594
Stock Exchange Listing
Share Registrar
The Company's shares are quoted in leading dailies
under textile composite sector.
Registered Office
40-A, Off: Zafar Ali Road, Gulberg-V,
Lahore, Pakistan
T: + 92-042-111-245-245
F: + 92-042-111-222-245
www.ctm.com.pk
4
Directors' Report to the Shareholders
For the 1st Quarter ended September 30, 2009
Your directors are pleased to present the un-audited financial statements of the company for the 1st Quarter ended
on September 30, 2009.
Financial and Operational performance:
Economic indicators of the country were giving mixed signals during this Qtr as current account deficit had
squeezed on the back of record home remittances, IMF borrowings and major decline in non-oil imports. This
implies positive in future for PKR/US$ stability but negative for GDP growth and also for exports as investment on
import of machinery was stagnant. Due internal security situation domestic and foreign investment had dried-up
and increased fragility of the economy. High mark up rates prolonged power and gas load shedding had also been
In 1st Qtr of FY2010 sales of the company were down by 22% from Rs.2,115 million as against Rs.2,712 million in
corresponding period. This was partly due to lower selling prices, slightly less volume sold, reduced sales of outside
purchased goods and to some extent stable PKR/US$ parity in comparison to same period of last year. Same trend was
visible in cost of sales; which was down by 20% but higher decline in sales had negative impact on gross margins. The
company achieved lower gross margins (down by Rs.141.684 million, current Qtr) in comparison of same period last
year (reduced from 16.79% to 14.83% of sales). But reduction in 'Other Operating and Finance Costs' (down by
Rs.142.415 million and Rs.129.527 million respectively) negated the impact on bottom line results of the company.
The reduction in these costs had contributed positively on bottom line growth; which depicted Rs.43.452 million 'Profit
Before Tax' as against Rs.60.305 million 'Loss Before Tax' in same period of corresponding year. In previous
corresponding period these costs included 'Provisioning for doubtful debts, Exchange loss on FCY loans and loss on
CCS Transaction' to the tune of Rs.161.499 million and had a cumulative negative impact on net margins of the
company. So, under very competitive environment and with limited options in hand we remained focused on
diversified product mix having better margins resulting in better than expected performance .
The company achieved better operational efficiency in all the processes which remained operative throughout 92 days
during 1st Qtr of FY2010. Operational performance of these processes was satisfactory and machine
utilization of the same was at optimum level.
Summarized position of financial results of the company, in comparison to same period of last year, is as below:
Sales revenue
Gross profit
Operating and other costs
Other operating income
Finance cost
Profit share from associate
Profit / (loss) before tax
Taxation
Profit / (loss) after tax
2009(Millions Rs.)
2,115
314
169
37
138
42
86
19
67
2008(Millions Rs.)
Change(%)
2,712
455
311
63
268
38
( 2 3 )
18
( 4 1 )
( 22 )
( 31 )
( 45 )
( 41 )
( 48 )
14
32
6
263
st1 Quarter
The improvement in demand for cotton on better international economic outlook is likely to keep its prices firm. This will lead to reduced margins for domestic industry which is already facing high interest rates, power/ gas shortage and rising input costs. However, an early reduction in mark up rates, implementation of positive steps in Textile Policy, 2009 and last but not the least any relaxation from EU on market access will greatly help improvingperformance of the industry.
We, however, are focused to improve performance of the company through sustained growth in sale of value added
products having good margin and will strive to pursue this strategy through dedicated efforts by reducing
costs with efficient and better resource utilization. for and on behalf of the Board.
(Muhammad Anwar)
Chairman & Chief Executive
the other reasons for negative industrial growth.
On improvement of global economic fundamentals and expectation of healthy demand the cotton prices were firm
during this Qtr despite healthy crop (44% up from previous season, PCGA data up till October 15, 2009). Similarly,
other input costs of semi- finished goods, polyester, HFO and wages also registered rise and continued to track the
rise of oil and other commodity prices in the international market. However, foreign buyers were reluctant toaccommodate this impact and left little room for growth in margins.
Future prospects:
Interim Condensed Balance Sheetas at September 30, 2009
EQUITY AND LIABILITIES
Authorized share capital100 000 000 (June 30, 2009: 100 000 000) ordinary shares of Rupees 10 each
Share capital and reserves
Issued, subscribed and paid up share capital
Surplus on revaluation of operating fixed assets
Total Equity
Un-Audited
September 30, 2009
( Rupees in thousand )
1,000,000 1,000,000
492,099
1,932,485
Note Audited
June 30, 2009
4
5
492,099
1,769,738
2,424,584 2,261,837
1,640,393 1,640,393
Long term financing
Non-current liabilities
957,796 1,108,019
Trade and other payables
Accrued mark-up
Short term borrowings
Current portion of long term financing
Provision for taxation
Current liabilities 493,997
149,086
4,622,755
473,750
86,661
315,065
177,207
4,883,207
356,845
73,361
Contingencies and commitments
Total Liabilities
5,826,249 5,805,685
6,784,045 6,913,704
The annexed notes form an integral part of these financial statements.
TOTAL EQUITY AND LIABILITIES
7
Property, plant and equipment
Investment in an associate
Long term investments
Long term loans and advances
Long term deposits and prepayments
Deferred tax - asset
ASSETS
Non-current assets
8
9
10
4,137,095
522,090
95,043
1,841,120
2,299
20,344
4,182,387
485,335
227,883
1,812,096
2,217
20,344
Stores, spare parts and loose tools
Stock-in-trade
Trade debts
Loans and advances
Short term deposits and prepayments
Interest accrued
Other receivables
Short term investments
Cash and bank balances
Current assets
195,941
923,197
2,499,421
223,525
1,340
4,281
64,567
293,932
24,827
174,116
940,421
2,562,348
239,191
1,422
22,081
61,909
65,253
18,931
4,231,031 4,085,672
TOTAL ASSETS 10,849,022 10,815,934
(Muhammad Anwar)
Chairman & Chief Executive
(Khalid Bashir)
Director
6
11
6,617,991 6,730,262
5
Reserves
10,849,022 10,815,934
6
Interim Condensed Profit and Loss Account (Un-Audited)
for the 1st Quarter Ended September 30, 2009
Sales
Cost of sales
89,724
42,629
36,496
2,115,091
1,801,371
Note
12
93,606
38,022
178,911
2,711,696
2,256,292
168,849 310,539
Gross profit
Distribution cost
Administrative expenses
Other operating expenses
Other operating income
Profit from operations
Finance cost
Share of profit of associate before taxation
Profit / (loss) before taxation
Provision for taxation
Profit / (loss) after taxation
The annexed notes form an integral part of these financial statements.
313,720 455,404
144,871 144,865
37,016
181,887
138,434
42,945
86,398
19,490
66,908
1.36 (0.82)
(Muhammad Anwar)
Chairman & Chief Executive
(Khalid Bashir)
Director
September 30, 2009
September 30, 2008
( Rupees in thousand )
Earnings / (loss) per share - basic and diluted (in Rupees)
62,791
207,656
267,961
37,606
(22,699)
17,889
(40,588)
7
Interim Condensed Cash Flow Statement (Un-Audited)
for the 1st Quarter Ended September 30, 2009
Cash flows from operating activities
Profit / (loss) before taxation
Depreciation
Gain on disposal of operating fixed assets
Credit balances written back
Share in profit of associate before tax
Income from loans and advances
Finance cost
September 30, 2009
(Rupees in thousand)
September 30, 2008
216,920 218,474
86,398 (22,699)
Stores, spare parts and loose tools
Stock-in-trade
Trade debts
Loans and advances
Short term deposits and prepayments
Interest accrued
Other receivables
Increase in current liabilities:
Trade and other payable
Cash flows from working capital changes
(21,825)
17,224
62,927
31,308
82
17,800
(2,658)
(26,075)
227,157
(235,897)
(14,850)
124
5,503
50,579
178,932
115,596
Net cash flows from working capital changes 283,790
500,710
122,137
340,611 Cash flows from operating activities
Finance cost paid
Income tax paid
Dividend paid
(Increase) / decrease in long term deposits and prepayments
(166,555)
(15,642)
-
(82)
(227,713)
(19,915)
(23)
125
Net cash flows from operating activities
Cash flows from investing activities
Capital expenditure on property, plant and equipment
Proceeds from sale of property, plant and equipment
Decrease in long term loans and advances
(20,021)
570
686
(59,418)
23,899
489
(18,765) (35,030)Net cash used in investing activities
Cash flows from financing activities Proceeds from long term financing
Repayment of long term financing
Short term borrowings - net
-
(33,318)
(260,452)
35,000
(116,666)
29,458
(293,770)
5,896
18,931
24,827
Net cash used in financing activities
Net increase in cash and cash equivalents
(Increase) / decrease in current assets:
Adjustments for non-cash charges and other items:
(Muhammad Anwar)
Chairman & Chief Executive
(Khalid Bashir)
Director
65,103
(360)
-
(42,945)
(29,710)
138,434
64,861
(1,272)
(20,538)
(37,606)
(32,233)
267,961 Cash flows from operating activities
before working capital changes
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
(182,279)
318,431
(247,526)
93,085
(52,208)
5,847
8,572
14,419
The annexed notes form an integral part of these financial statements.
8
Interim Condensed Statement of Changes in Equity ( Un - Audited )
for the 1st Quarter ended September 30, 2009
Balance as on July 01, 2008
Net loss for the quarter ended September 30, 2008
Fair value adjustment on investments
Balance as on September 30, 2008
ShareCapital Total
( Rupees in thousand )
492,099
-
-
492,099
(Muhammad Anwar)
Chairman & Chief Executive
(Khalid Bashir)
Director
350,507
-
(214,946)
135,561
1,773,643
-
-
1,773,643
30,000
-
-
30,000
(234,064)
(40,588)
-
(274,652)
1,569,579
(40,588)
-
1,528,991
2,412,185
(40,588)
(214,946)
2,156,651
-
-
-
-
-
(114,430)
-
-
-
Balance as on June 30, 2009
Net profit for the quarter ended September 30, 2009
Fair value adjustment on investments
Balance as on September 30, 2009
492,099
-
-
492,099
Revenue Reserves
Reserves
CapitalReserve
Fair value General
Dividendequalization
(AccumulatedLoss)
Sub Total
Total Equity
1,920,086
(40,588)
(214,946)
1,664,552
Net profit for the period from
October 01, 2008 to June 30, 2009
Transfer from surplus on revaluation of operating
fixed assets on account of incremental
depreciation - net of deferred tax
Fair value adjustment on investments
-
-
-
219,608
8
-
219,608
8
-
219,608
8
(114,430)
219,608
8
(114,430)
21,131
-
95,839
116,970
1,773,643
-
-
1,773,643
30,000
-
-
30,000
(55,036)
66,908
-
11,872
1,748,607
66,908
-
1,815,515
1,769,738
66,908
95,839
1,932,485
2,261,837
66,908
95,839
2,424,584
The annexed notes form an integral part of these financial statements.
9
Reserves5.
Composition of reserves is as follows:
Capital
Fair value reserve
Revenue
Dividend equalization
General
Accumulated losses
30,000
1,773,643
11,872
1,815,515
1,932,485
30,000
1,773,643
(55,036)
1,748,607
1,769,738
The Crescent Textile Mills Limited (the Company) is a public limited company incorporated in Pakistan under the
Companies Ordinance, 1984. The registered office of the Company is located at 40-A, Off: Zafar Ali Road, Gulberg-V,
Lahore. Its shares are quoted on all the Stock Exchanges in Pakistan. The Company is engaged in business of textile
manufacturing comprising of spinning, combing, weaving, dyeing, bleaching, printing, stitching, buying, selling and
otherwise dealing in yarn, cloth and other goods and fabrics made from raw cotton and synthetic fiber(s) and to
generate, accumulate, distribute, supply and sale of electricity. The Company also operates a cold storage unit .
Selected Notes to the Interim Condensed Financial Information ( Un - Audited )
for the 1st Quarter Ended September 30, 2009
The company and its activities1.
Basis of preparation of financial statements
These financial statements are un-audited and are being submitted to shareholders, as required by section 245
of the Companies Ordinance, 1984.
2.
2.1
The accounting policies adopted for the preparation of these condensed quarterly financial statements are the same as
those applied in the preparation of the preceding annual published financial statements of the Company for the year
ended June 30, 20 09.
2.2
2.3
Un-Audited
September 30, 2009
(No of Shares)
Audited
June 30, 2009
Critical accounting estimates and judgments3.
Issued, subscribed and paid up share capital4.
19,781,136
19,781,136 Ordinary Shares of Rupees 10 each
fully paid in cash
Ordinary Shares of Rupees 10 each
issued as fully paid bonus shares
197,811 197,811
29,428,787
49,209,923
29,428,787
49,209,923
294,288
492,099
294,288
492,099
Long term financing - secured6.
Financing from banking companies (Note 6.1)
Term finance certificates (Note 6.2)
857,811
99,985
957,796
1,008,034
99,985
1,108,019
September 30, 2009
June 30, 2009
Un-Audited
( Rupees in thousand )
Audited
These financial statements have been prepared in accordance with the requirements of the International
Accounting Standard (IAS) 34, "Interim Financial Reporting" as applicable in Pakistan as notified by the Securitiesand Exchange Commission of Pakistan.
Judgments and estimates made by the management in the preparation of the condensed quarterly financial statements
are the same as those applied in the preparation of the preceding annual published financial statements of the Companyfor the year ended June 30, 2009.
116,970
21,131
10
1,264,894
-
1,264,894
(33,318)
1,231,576
(373,765)
857,811
1,386,279
90,183
1,476,462
(211,568)
1,264,894
(256,860)
1,008,034
Financing from banking companies6.1
Opening balance
Add: Disbursement during the period / year
Less: Payments during the period / year
Less: Current portion
Term finance certificates6.2
Opening balance
Less: Payments during the period / year
Less: Current portion
199,970
-
199,970
(99,985)
99,985
299,955
(99,985)
199,970
(99,985)
99,985
Contingencies and commitments7.
Contingencies
There has been no significant change in contingencies since the date of preceding annual published financial
statements.
-
Commitments
Commitments in respect of capital expenditures are Rupees 5.082 million (June 30, 2009: Rupees 8.985 million).
Commitments in respect of outstanding letters of credit other than for capital expenditures are Rupees 32.178
million (June 30, 2009: Rupees 51.872 million).
-
-
Property, plant and equipment8.
Operating fixed assets - tangible (Note 8.1)
Capital work in progress (Note 8.2)
4,135,713
1,382
4,137,095
4,180,127
2,260
4,182,387
Operating fixed assets - tangible8.1
Opening book value
Add: Additions during the period / year (Note 8.1.1)
Less: Deletions during the period / year (Note 8.1.2)
Less: Depreciation during the period / year
Book value at the end of the period / year
4,180,127
20,899
4,201,026
210
4,200,816
65,103
4,135,713
4,216,100
264,249
4,480,349
24,358
4,455,991
275,864
4,180,127
Additions during the period / year8.1.1
Building on freehold land
Plant and machinery
Factory tools and equipments
Gas and electric installations
Vehicles
Furniture and fixtures
Office equipments
-
11,525
170
417
8,147
-
640
20,899
7,324
222,074
458
4,479
23,354
2,326
4,234
264,249
Deletions during the period / year8.1.2
Plant and machinery
Vehicles
4
206
210
20,948
3,410
24,358
September 30, 2009
June 30, 2009
Un-Audited
( Rupees in thousand )
Audited
Capital work in progress8.2
Plant and machinery
Advances to suppliers -
1,382
1,382
2,167
93
2,260
11
September 30, 2009
June 30, 2009
Un-Audited
( Rupees in thousand )
Audited
Investment in an associate9.
Unquoted
Cost
Share of post acquisition profit
as at the beginning of the period / year
Share of post acquisition profit before taxation
Share in charge for profit
269,264
216,071
42,945
(6,190)
36,755
252,826
522,090
269,264
50,764
184,823
(19,516)
165,307
216,071
485,335
As at the end of the period / year
Long term investments10.
Quoted - Related parties
Unquoted - Related parties
Quoted - Others
Unquoted - Others
Impairment loss charged to profit and loss account
Fair value adjustment
41,625
43,159
2,163
500
87,447
-
7,596
95,043
207,377
43,159
19,798
500
270,834
(64,082)
21,131
227,883
Short term investments11.
Quoted - Related parties
Quoted - Others
Impairment loss charged to profit and loss account
Fair value adjustment
119,305
65,253
184,558
-
109,374
293,932
-
179,747
179,747
(114,494)
-
65,253
11.1
Certain long term investments of the Company have been classified as short term investments as the
management intends to dispose off such investments in the coming next twelve months.
Cost of sales12.
Raw material consumed
Cloth and yarn purchased
Store, spare parts and loose tools
Packing materials
Processing and weaving charges
Salaries, wages and other benefits
Fuel and power
Repairs and maintenance
Insurance
Depreciation on operating fixed assets
Other factory overhead
641,978
233,954
122,746
70,356
65,269
142,916
219,564
9,753
4,110
61,353
1,627
1,573,626
732,093
156,258
124,167
67,891
54,414
127,958
266,540
8,380
3,815
61,883
2,036
1,605,435 Work-in-process
Opening stock
Closing stock
Cost of goods manufactured
Finished goods:
Opening stock
Closing stock
Cost of sales - purchased for resale
76,838
(94,191)
(17,353)
1,556,273
684,570
(710,627)
(26,057)
271,155
1,801,371
75,605
(97,236)
(21,631)
1,583,804
755,309
(689,948)
65,361
607,127
2,256,292
Quarter ended September 30,
2009
September 30, 2008
( Rupees in thousand )
12 (Muhammad Anwar)
Chairman & Chief Executive
(Khalid Bashir)
Director
This represents provision for the quarter against current tax under the normal law.
Taxation
13.
The related parties and associated undertakings comprise associated companies, associates, companies in which
directors are interested, staff retirement funds, directors and key management personnel. Significant transactions
with related parties and associated undertakings are as under:
Transactions with related parties14.
Associated Companies
62,515
42,154
-
7,844
33,991
4,772
53,355
82,565
779
8,139
36,886
3,350
Quarter ended September 30,
2009
September 30, 2008
( Rupees in thousand )
Company type
Nature of transaction
Employees Provident Fund Trust
Purchases
Sales
Processing income
Insurance charges
Interest income
Amount contributed
These financial statements have been authorized for issue by the Board of Directors of the Company on October 27, 2009.
Date of authorization
15.
General
16.
Corresponding figures have been rearranged, wherever necessary for the purpose of comparison. However, no significant
reclassifications have been made.
The outstanding balances of such parties are as under:
(7,554)
1,839,026
121,987
4,281
20
(4,632)
1,809,317
128,258
22,081
25
Associated Companies
Insurance payable
Long term loans and advances
Trade receivable
Interest accrued
Other receivables
Figures have been rounded off to nearest thousand rupees.
Transactions entered into with the key management personnel as per their terms of employment are excluded from related
party transactions.
September 30, 2009
June 30, 2009
Un-Audited
( Rupees in thousand )
Audited