Condensed Interim Financial Information For The Half of Rupee has also played a positive role in the Textile sector and improvement have been witnessed in the six segments of the Textile Industries, major being Yarn and Grey Fabric, Finished Fabric, Home Textile ...

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<ul><li><p>Condensed Interim Financial InformationFor The Half Year Ended December 31, 2017</p></li><li><p>ISLAND TEXTILE MILLS LIMITED</p><p>1. 01</p><p>2. 02</p><p>4. 04</p><p>5. 05</p><p>6. 06</p><p>7. 07</p><p>8. 09</p><p>CONTENTS</p><p>COMPANY INFORMATION</p><p>DIRECTORS REPORT</p><p>CONDENSED INTERIM BALANCE SHEET</p><p>3. 03AUDITORS REPORT TO THE MEMBERS</p><p>CONDENSED INTERIM PROFIT &amp; LOSS ACCOUNT (UNAUDITED)</p><p>CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)</p><p>CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY</p><p>NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UNAUDITED)</p></li><li><p>ISLAND TEXTILE MILLS LIMITED 01</p><p>BOARD OF DIRECTORSCHAIRMAN: Mr. Anwar Ahmed Tata CHIEF EXECUTIVE: Mr. Shahid Anwar Tata</p><p>DIRECTORS: Mr. Adeel Shahid Tata Mr. Aijaz Ahmed Tariq Mr. Bilal Shahid Tata Mr. Muhammad Naseem Mr. Sheikh Kausar EjazAUDIT COMMITTEE CHAIRMAN: Mr. Muhammad Naseem </p><p>MEMBERS: Mr. Adeel Shahid Tata Mr. Sheikh Kausar Ejaz</p><p>SECRETARY: Mr. Owais Ahmed Abbasi </p><p>HUMAN RESOURCE &amp; REMUNERATION COMMITTEE CHAIRMAN: Mr. Muhammad Naseem </p><p>MEMBERS: Mr. Shahid Anwar Tata Mr. Adeel Shahid Tata</p><p>SECRETARY: Mr. Aadil Riaz</p><p>COMPANY SECRETARY &amp; CHIEF FINANCIAL OFFICER: Mr. Farooq Advani</p><p>BANKERS: Faysal Bank Limited Bank Alfalah Limited Meezan Bank Limited The Bank of Punjab MCB Bank Limited National Bank of Pakistan Soneri Bank Limited Summit Bank Limited Askari Bank Limited Pak Oman Investment Company Limited Dubai Islamic Bank Pakistan Limited Allied Bank Limited JS Bank Limited</p><p>AUDITORS: M/s. Deloitte Yousuf Adil Chartered Accountants</p><p>LEGAL ADVISOR: Ameen Bandukda &amp; Co. Advocates </p><p>SHARE REGISTRAR: Central Depository Company of Pakistan Limited CDC House, 99 B, Block B, S.M.C.H.S., Main Shahra-e-Faisal Tel# (Toll Free) 0800-CDCPL (23275) Fax# (92-21) 34326053</p><p>REGISTERED OFFICE: 6th Floor Textile Plaza, M.A Jinnah Road Karachi. Tel#32412955-3 Lines 32426761-2-4 Fax #32417710 </p><p>WEB SITE ADDRESS: www.tatapakistan.com</p><p>E- MAIL ADDRESS: itm.corporate@tatapakistan.com </p><p>MILLS: A/12, S.I.T.E. Kotri District Jamshoro (Sindh)</p><p>COMPANY INFORMATION</p></li><li><p>ISLAND TEXTILE MILLS LIMITED02</p><p>DIRECTORS REPORT</p><p>Assalam-o-Alaikum</p><p>The Financial Statements (Un-audited) of the Company for the Half Year ended, December 31, 2017 is being presented to you.</p><p>Alhamdulillah, the financial statement of the Company for the 2nd quarter ended December 31, 2017 is encouraging and has shown a good improvement. During the period under review, the Company incurred a pre-tax profit of Rs.103.253 million as compared to a pre-tax loss of Rs.19.625 million during the corresponding period of last year.</p><p>Textile IndustryAlhamdulillah, there has been some positive developments in the Textile Industry. The activities and exports of downstream Industries have picked up which have resulted in the increased demand of yarn as well. Another encouraging aspect is the Governments continuation of Export Rebate, though only 50%. The escalation in Cotton Prices and the devaluation of Rupee has also played a positive role in the Textile sector and improvement have been witnessed in the six segments of the Textile Industries, major being Yarn and Grey Fabric, Finished Fabric, Home Textile, Denim, Towel and Knitted Garments. Moreover, to a great extend the rise in Cotton Prices has been absorbed mainly due to two factors, depreciation of Rupee and growth in the demand of Yarn. </p><p>Cotton CropThis has been the third consecutive year of Cotton Crop failure particularly in Punjab, whereas, the Crop in Sindh has improved resulting in high yield of cotton this year. The crop in Punjab has performed poorly both quality wise and quantity wise and I have never seen such inferior quality of Cotton in my 35 years in textile business. The Punjab Government seems clueless about its remedial measures or research for development. Agriculture being a subject of the Provisional Government, we feel Punjab Government needs to work on both quality and quantity as Cotton is our most important Cash Crop and the production of Cotton is integral to the economic development of the Country. At present, your Company has enough Cotton Stock to last till June 2018; though, critical would be the next Cotton year, whereby, we will have to wait and watch for the outcome of the future Cotton yield. </p><p>Future Outlook Going forward, the Management is taking initiatives in every area to optimize and reduce Cost without compromising on the performance of the Mill and has made reduction in the areas of Stores and Spares, Repair &amp; Maintenance, Other Overheads and Power. </p><p>To keep up with the market trend and demand, we are producing new value added Yarns like Tri Blends containing Fibers like Tencel, Modal, Micromodal, Viscose, in our current set up. We also have plans to produce Compact Blended Yarns, Compact SIRO / CHAIN Yarns, within the current year.</p><p>ACKNOWLEDGEMENTIt is most important to mention the untiring efforts of all our team members who are engaged in up-holding their commitment to the Companys success and growth. We also thank our Bankers, Vendors and Customers for their consistent trust and support.</p><p> Dated: February 26, 2018Karachi</p><p>On behalf of the Board of Directors </p><p>Shahid Anwar TataChief Executive</p></li><li><p>ISLAND TEXTILE MILLS LIMITED 03</p><p>AUDITORS REPORT TO THE MEMBERS ON REVIEW OF INTERIM FINANCIAL INFORMATION</p><p>Introduction</p><p>We have reviewed the accompanying condensed interim balance sheet of ISLAND TEXTILE MILLS LIMITED (the Company) as at December 31, 2017, the related condensed interim profit and loss account, condensed interim cash flow statement, condensed interim statement of changes in equity and notes to the accounts for the half year then ended (here-in-after referred to as the condensed interim financial information). Management is responsible for the preparation and presentation of this condensed interim financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on this condensed interim financial information based on our review. The figures of the condensed interim profit and loss account for the quarter ended December 31, 2017 and December 31, 2016 have not been reviewed, as we are required to review only the cumulative figures for the half year ended December 31, 2017.</p><p>Scope of Review</p><p>We conducted our review in accordance with International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.</p><p>Conclusion</p><p>Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information as of and for the half year ended December 31, 2017 is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. </p><p>Chartered Accountants</p><p>Engagement partnerHena Sadiq</p><p>Dated: February 26, 2018Karachi</p><p>Deloitte Yousuf AdilChartered AccountantsCavish Court, A-35, Block 7 &amp; 8KCHSU, Sharea Faisal,Karachi-75350PakistanPhone: +92 (0) 21 3454 6494-7Fax: +92 (0) 21- 3454 1314Web: www.deloitte.com</p></li><li><p>ISLAND TEXTILE MILLS LIMITED04</p><p>December 31, June 30,2017 2017</p><p>(Unaudited) (Audited)Note</p><p>ASSETS</p><p>Non-current AssetsProperty, plant and equipment 5 4,091,877 4,197,161Intangible assets 76 113Long term investments 312,531 309,978Long term deposits 1,468 1,605</p><p>4,405,952 4,508,857</p><p>Current AssetsStores, spares and loose tools 28,922 30,547Stock-in-trade 1,409,873 1,406,651Trade debts 523,031 514,263Loans and advances 372,282 219,033Short-term prepayments 1,709 1,642Other receivables 52,997 40,770Other financial assets 26,036 25,900Sales tax refundable 49,706 92,395Cash and bank balances 66,193 37,317</p><p>2,530,749 2,368,518</p><p>TOTAL ASSETS 6,936,701 6,877,375</p><p>EQUITY AND LIABILITIES</p><p>EQUITY Share capital and reserves 6 1,157,877 1,090,601</p><p>Surplus on revaluation of property, plant and equipment 660,796 677,600</p><p>LIABILITIES</p><p>Non-current liabilitiesDeferred liabilities 248,723 182,362Long term finances 7 2,595,873 2,431,311</p><p>2,844,596 2,613,673</p><p>Current liabilitiesTrade and other payables 499,368 263,030Current portion of long term finances 7 125,598 568,688Short term borrowings 1,555,915 1,570,789Accrued interest / mark-up on borrowings 92,551 92,994</p><p>2,273,432 2,495,501Contingencies and commitments 8</p><p>TOTAL EQUITY AND LIABILITIES 6,936,701 6,877,375</p><p>The annexed notes from 1 to 13 form an integral part of this condensed interim financial information.</p><p>CONDENSED INTERIM BALANCE SHEETAS AT DECEMBER 31, 2017</p><p>... Rupees in '000' .</p><p>ANWAR AHMED TATACHAIRMAN/DIRECTOR</p><p>FAROOQ ADVANICHIEF FINANCIAL OFFICER</p><p>SHAHID ANWAR TATACHIEF EXECUTIVE</p></li><li><p>ISLAND TEXTILE MILLS LIMITED 05</p><p>December 31, December 31, December 31, December 31,2017 2016 2017 2016</p><p>Note</p><p>Sales - net 3,045,376 2,640,971 1,668,260 1,517,972</p><p>Cost of goods sold 9 (2,699,557) (2,432,812) (1,457,408) (1,418,961)</p><p>Gross profit 345,819 208,159 210,852 99,011</p><p>Distribution cost (60,868) (55,050) (34,025) (27,499)</p><p>Administrative expenses (36,749) (30,932) (18,074) (15,528)</p><p>Other operating expenses (12,536) (1,284) (5,229) (768)</p><p>Finance cost (156,150) (141,694) (77,612) (68,974)(266,303) (228,960) (134,940) (112,769)</p><p>Share of profit / (loss) from associates - net of tax 2,555 (4,693) 2,282 (785)</p><p>Other income 21,181 5,869 9,483 4,70523,736 1,176 11,765 3,920</p><p>Profit / (loss) before taxation 103,253 (19,625) 87,678 (9,838)</p><p>Provision for taxation 10 (52,778) (26,394) (37,962) (18,397)</p><p>Profit/ (loss) for the period 50,475 (46,019) 49,716 (28,235)</p><p>Other comprehensive income</p><p>Items that will be reclassified subsequently to profit or lossCompany's share in unrealised loss on remeasurement</p><p>of associates' investments - net of deferred tax (2) (4) (1) (7)Total comprehensive income/ (loss) for the period 50,473 (46,023) 49,715 (28,242)</p><p>Earnings per share - basic and diluted (Rupees) 100.95 (92.04) 99.43 (56.47)</p><p>The annexed notes from 1 to 13 form an integral part of this condensed interim financial information.</p><p>------------------------------- Rupees in '000' --------------------------------</p><p>CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UNAUDITED)FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2017</p><p>Half year ended Quarter ended</p><p>ANWAR AHMED TATACHAIRMAN/DIRECTOR</p><p>FAROOQ ADVANICHIEF FINANCIAL OFFICER</p><p>SHAHID ANWAR TATACHIEF EXECUTIVE</p></li><li><p>ISLAND TEXTILE MILLS LIMITED06</p><p>December 31, December 31,2017 2016</p><p>A. CASH FLOWS FROM OPERATING ACTIVITIES Profit/ (loss) before taxation 103,253 (19,625) Adjustments for:</p><p>Depreciation 109,449 100,038Amortization 39 564Provision for staff gratuity 12,788 12,596Provision for staff compensated absences 5,166 4,623Finance cost 156,150 141,694Loss on disposal of property, plant and equipment 3,623 39Share of (profit ) / loss from associates - net of deferred tax (2,555) 4,693Reversal / (Provision) for doubtful debts (369) 115</p><p> Operating cash flows before working capital changes 387,544 244,737 Decrease / (increase) / in current assets</p><p>Stores, spares and loose tools 1,625 3,965Stock-in-trade (3,222) (611,649)Trade debts (8,399) 38,020Loans and advances (124,961) 50,691Other receivables (12,227) (393)Short-term prepayments (67) 7,446Sales tax refundable 42,689 129,718</p><p> Increase in current liabilitiesTrade and other payables 236,347 132,160</p><p> Net cash generated from / (used in ) operations 519,329 (5,305) Finance cost paid (156,594) (151,862) Staff gratuity paid (279) (4,400) Staff compensated absences paid (4,092) (3,919) Income taxes paid (28,288) (24,033) Net cash generated from / (used in) operating activities 330,076 (189,519)</p><p>B. CASH FLOWS FROM INVESTING ACTIVITIES </p><p>Additions to property, plant and equipment (12,465) (39,452)Proceeds from disposal of property, plant and equipment 4,675 60Additions to other financial assets (136) (2,824)Long term deposits received/ (paid) - net 137 (454)Net cash used in investing activities (7,789) (42,670)</p><p>HALF YEAR ENDED</p><p>CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)FOR THE HALF YEAR ENDED DECEMBER 31, 2017</p><p>-------- Rupees in '000' --------</p><p>C. CASH FLOWS FROM FINANCING ACTIVITIES </p><p>Long-term finance (repaid) / obtained - net (278,528) 2,699Dividend paid (8) -Short-term borrowings repaid (687,329) (378,956)</p><p>Net cash used in financing activities (965,866) (376,257)</p><p>Net decrease in cash and cash equivalents (A+B+C) (643,579) (608,446)Cash and cash equivalents at beginning of the period (679,977) (589,063)</p><p>Cash and cash equivalents at end of the period (1,323,556) (1,197,509)</p><p>CASH AND CASH EQUIVALENTSCash and bank balances 66,193 20,281Short-term running finances (1,389,749) (1,217,790)</p><p>(1,323,556) (1,197,509)</p><p>The annexed notes from 1 to 13 form an integral part of this condensed interim financial information.</p><p>ANWAR AHMED TATACHAIRMAN/DIRECTOR</p><p>FAROOQ ADVANICHIEF FINANCIAL OFFICER</p><p>SHAHID ANWAR TATACHIEF EXECUTIVE</p></li><li><p>ISLAND TEXTILE MILLS LIMITED 07</p><p> Issu</p><p>ed,</p><p>subs</p><p>crib</p><p>ed a</p><p>ndpa</p><p>id u</p><p>p ca</p><p>pita</p><p>l</p><p> Gen</p><p>eral</p><p> rese</p><p>rve </p><p> Oth</p><p>er re</p><p>serv</p><p>e C</p><p>ompa</p><p>ny's </p><p>shar</p><p>e in</p><p> oth</p><p>er </p><p>com</p><p>preh</p><p>ensi</p><p>ve </p><p>inco</p><p>me </p><p>of </p><p>asso</p><p>ciat</p><p>es </p><p>Unap</p><p>prop</p><p>riate</p><p>d pr</p><p>ofit</p><p>Tota</p><p>l</p><p>Bal</p><p>ance</p><p> at J</p><p>une </p><p>30, 2</p><p>016 </p><p>(Aud</p><p>ited)</p><p>5,00</p><p>090</p><p>0,00</p><p>059</p><p>1(1</p><p>,660</p><p>)14</p><p>6,90</p><p>81,</p><p>050,</p><p>839</p><p>Tota</p><p>l com</p><p>preh</p><p>ensi</p><p>ve lo</p><p>ss fo</p><p>r the</p><p> hal</p><p>f yea</p><p>r e</p><p>nded</p><p> Dec</p><p>embe</p><p>r 31,</p><p> 201</p><p>6Lo</p><p>ss fo</p><p>r the</p><p> per</p><p>iod</p><p>--</p><p>--</p><p>(46,</p><p>019)</p><p>(46,</p><p>019)</p><p>Oth</p><p>er c</p><p>ompr</p><p>ehen</p><p>sive</p><p> inco</p><p>me</p><p>Com</p><p>pany</p><p>'s s</p><p>hare</p><p> in u</p><p>nrea</p><p>lised</p><p> loss</p><p> on </p><p>rem</p><p>easu</p><p>rem</p><p>ent</p><p>of a</p><p>ssoc</p><p>iate</p><p>s' in</p><p>vest</p><p>men</p><p>ts - </p><p>net o</p><p>f tax</p><p> -</p><p>--</p><p>(4)</p><p>-(4</p><p>)</p><p>Tota</p><p>l com</p><p>preh</p><p>ensi</p><p>ve lo</p><p>ss fo</p><p>r the</p><p> per</p><p>iod</p><p>--</p><p>-(4</p><p>)(4</p><p>6,01</p><p>9)(4</p><p>6,02</p><p>3)</p><p>Tran</p><p>sfer</p><p>red </p><p>from</p><p> sur</p><p>plus</p><p> on </p><p>reva</p><p>luat</p><p>ion </p><p>of p</p><p>rope</p><p>rty,</p><p> pla</p><p>nt a</p><p>nd e</p><p>quip</p><p>men</p><p>t on </p><p>acco</p><p>unt o</p><p>f: in</p><p>crem</p><p>enta</p><p>l dep</p><p>reci</p><p>atio</p><p>n an</p><p>d di</p><p>spos</p><p>al - </p><p>net o</p><p>f tax</p><p>--</p><p>--</p><p>5,60</p><p>75,</p><p>607</p><p>Com</p><p>pany</p><p>'s s</p><p>hare</p><p> in a</p><p>ssoc</p><p>iate</p><p>s' s</p><p>urpl</p><p>us o</p><p>n re</p><p>valu</p><p>atio</p><p>nof</p><p> pro</p><p>pert</p><p>y pl</p><p>ant a</p><p>nd e</p><p>quip</p><p>men</p><p>t on </p><p>acco</p><p>unt o</p><p>f: in</p><p>crem</p><p>enta</p><p>l dep</p><p>reci</p><p>atio</p><p>n an</p><p>d di</p><p>spos</p><p>al - </p><p>net o</p><p>f tax</p><p>--</p><p>--</p><p>2,78</p><p>42,</p><p>784</p><p>Bal</p><p>ance</p><p> at D</p><p>ecem</p><p>ber 3</p><p>1, 2</p><p>016 </p><p>(Una</p><p>udite</p><p>d)5,</p><p>000</p><p>900,</p><p>000</p><p>591</p><p>(1,6</p><p>64)</p><p>109,</p><p>280</p><p>1,01</p><p>3,20</p><p>7</p><p>Tota</p><p>l com</p><p>preh</p><p>ensi</p><p>ve in</p><p>com</p><p>e fo</p><p>r the</p><p> hal</p><p>f yea</p><p>r </p><p>ende</p><p>d J</p><p>une </p><p>30, 2</p><p>017</p><p>Prof</p><p>it fo</p><p>r the</p><p> per</p><p>iod</p><p>--</p><p>--</p><p>58,5</p><p>3458</p><p>,534</p><p>Oth</p><p>er c</p><p>ompr</p><p>ehen</p><p>sive</p><p> inco</p><p>me</p><p>Rem</p><p>easu</p><p>rem</p><p>ent g</p><p>ain </p><p>of d</p><p>efin</p><p>ed b</p><p>enef</p><p>it - n</p><p>et o</p><p>f tax</p><p>--</p><p>--</p><p>676</p><p>676</p><p>Com</p><p>pany</p><p>'s s</p><p>hare</p><p> in re</p><p>mea</p><p>sure</p><p>men</p><p>t gai</p><p>n on</p><p> ass</p><p>ocia</p><p>tes'</p><p>defin</p><p>ed b</p><p>enef</p><p>it pl</p><p>an - </p><p>net o</p><p>f tax</p><p>--</p><p>-64</p><p>-64</p><p>--</p><p>-64</p><p>676</p><p>740</p><p>Tota</p><p>l com</p><p>preh</p><p>ensi</p><p>ve in</p><p>com</p><p>e fo</p><p>r the</p><p> per</p><p>iod</p><p>--</p><p>-64</p><p>59,2</p><p>1059</p><p>,274</p><p>------</p><p>------</p><p>------</p><p>------</p><p>------</p><p>------</p><p>------</p><p>------</p><p>------</p><p>------</p><p>------</p><p>------</p><p>---Ru</p><p>pees</p><p> in '0</p><p>00' -</p><p>------</p><p>------</p><p>------</p><p>------</p><p>------</p><p>-...</p></li></ul>

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