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SAMIN TEXTILES LIMITED
for the half year ended
December 31, 2015
INTERIM FINANCIAL REPORT
Contents
Condensed Interim Statement of Changes in Equity 08
Condensed Interim Cash flow statement 07
Condensed Interim Statement of comprehensive Income 06
Condensed Interim Profit and loss account 05
Condensed Interim Balance Sheet 04
Directors’ Review 02
Company Information 01
Notes to the Condensed Interim Information 09
COMPANY INFORMATION
Board of Directors
Non-Executive Directors
Mr. Sarmad Amin ChairmanMr. Shehryar Amin
Mr. Safder Hussain Tariq
Independent Director
Mr. Qamber Hamid
Audit Committee
Mr. Jamil Masud ChairmanMr. Tariq Jillani MemberMr. Qamber Hamid MemberMr. Wasim Abbas Secretary
Human Resource &Remuneration Committee
Mr. Jamil Masud ChairmanMr. Tariq Jillani MemberMr. Salman Chaudhary Member
Chief Financial OfficerMr. Safder Hussain Tariq
Company SecretaryMr. Sohail Omer
Chief Internal AuditorMr. Wasim Abbas
Auditors
Grant Thornton Anjum RahmanChartered Accountants
Legal Advisor
Imtiaz Siddiqui & Associates
Leading Banks
Mr. Tariq JillaniMr. Jamil Masud
Executive Directors
Mr. Jehanzeb Amin Chief Executive
National Bank of PakistanAskari Bank LimitedBank Alfalah LimitedSummit Bank LimitedNIB Bank LimitedAllied Bank Limited
Leading Banks
Pak Libya Holding Company (Private) Limited
Pak Oman Investment Company LimitedSoneri Bank LimitedOrix Leasing Pakistan LimitedPak China Investment Company Limited
Shares RegistrarCorplink (Pvt) LimitedWings Arcade, 1-K, Commercial Model Town,Lahore, Pakistan.Tel: 92 - 42 - 35839182Fax: 92 - 42 - 35869037
Registered/Head Office
50-C, Main Gulberg,Lahore, Pakistan.Tel: 92 - 42 - 35753761Fax: 92 - 42 - 35753688
Mills
th8 Kilometer,Manga - Raiwaind Road,District Kasur, Pakistan.
01
Auditors Report 03
Contents
Condensed Interim Statement of Changes in Equity 08
Condensed Interim Cash flow statement 07
Condensed Interim Statement of comprehensive Income 06
Condensed Interim Profit and loss account 05
Condensed Interim Balance Sheet 04
Directors’ Review 02
Company Information 01
Notes to the Condensed Interim Information 09
COMPANY INFORMATION
Board of Directors
Non-Executive Directors
Mr. Sarmad Amin ChairmanMr. Shehryar Amin
Mr. Safder Hussain Tariq
Independent Director
Mr. Qamber Hamid
Audit Committee
Mr. Jamil Masud ChairmanMr. Tariq Jillani MemberMr. Qamber Hamid MemberMr. Wasim Abbas Secretary
Human Resource &Remuneration Committee
Mr. Jamil Masud ChairmanMr. Tariq Jillani MemberMr. Salman Chaudhary Member
Chief Financial OfficerMr. Safder Hussain Tariq
Company SecretaryMr. Sohail Omer
Chief Internal AuditorMr. Wasim Abbas
Auditors
Grant Thornton Anjum RahmanChartered Accountants
Legal Advisor
Imtiaz Siddiqui & Associates
Leading Banks
Mr. Tariq JillaniMr. Jamil Masud
Executive Directors
Mr. Jehanzeb Amin Chief Executive
National Bank of PakistanAskari Bank LimitedBank Alfalah LimitedSummit Bank LimitedNIB Bank LimitedAllied Bank Limited
Leading Banks
Pak Libya Holding Company (Private) Limited
Pak Oman Investment Company LimitedSoneri Bank LimitedOrix Leasing Pakistan LimitedPak China Investment Company Limited
Shares RegistrarCorplink (Pvt) LimitedWings Arcade, 1-K, Commercial Model Town,Lahore, Pakistan.Tel: 92 - 42 - 35839182Fax: 92 - 42 - 35869037
Registered/Head Office
50-C, Main Gulberg,Lahore, Pakistan.Tel: 92 - 42 - 35753761Fax: 92 - 42 - 35753688
Mills
th8 Kilometer,Manga - Raiwaind Road,District Kasur, Pakistan.
01
Auditors Report 03
02 Samin Textiles Limited 03
Interim Financial Report
DIRECTORS’ REVIEW
For and on behalf of the Board
Jehanzeb Amin
Chief Executive
Lahore :
Dated : February 24, 2016
Sales - Net
Gross Profit / (Loss)
Other Operating Income
Profit / (Loss) after tax
Depreciation
Cash Profit / (Loss)
683.221
28.716
6.706
(39.296)
35.779
(3.517)
Rupees in million
Half Year endedDecember 31, 2015
1,038.282
(66.156)
330.137
121.933
37.058
158.991
Half Year endedDecember 31, 2014
The board of directors of your company is pleased to present before you the un-audited financial statements duly reviewed by the auditors for the half Year ended December 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
The figures tabulated above reveal that during the period under review company posted net sales amounting to Rs. 683.221 million and a net loss of Rs. (39.296) million as compared to net sales of Rs. 1,038.282 million and net profit of Rs. 121.933 million for the corresponding period of last financial year.
The sales were down due to the depressed market prices and low production volumes.
Investment
Company's wholly owned subsidiary named Nimas Trading (Private) Limited to whom the company sold 6,530,000 ordinary shares of Security General Insurance Company Limited (SGICL) face value of Rs. 10 each during last financial year @ 94 amounting to Rs. 613,820,000/- has decided to wind up its operations during the year. Consequently, the shares sold to Nimas Trading (Private) limited were received back by the parent company in the process of its liquidation at the same price.
In order to implement company's plan for its turnaround project like arrangement of additional working capital and BMR, the company has sold the said investment of 6,530,000/- shares @ Rs. 95 in the market. The liquidity so generated has helped the company in implementing its plan as mentioned in note 1.2 of the financial statement.
Future Outlook / Strategy
Though the company had suffered a loss of Rs. (39.296) million during the half year ended December 31, 2015, however, the significant achievement is that the company is out of gross loss situation. This is the first step towards revival and turnaround of the project. Management is hopeful of even further improvement for the financial year closing 30th June 2016.
Second step towards revival is to control the bleeding and convert the cash loss to cash profit. For this purpose management is exercising all measures to curtail the costs under every head. The major improvement can be seen after implementation of proposed BMR in which old and inefficient looms will be replaced with new / efficient looms.
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.
AUDITOR'S REPORT TO THE MEMBERS ON REVIEW OF CONDENSED INTERIM FINANCIAL INFORMATION
Chartered Accountants Member of Grant Thornton International Ltd
Offices in Karachi and Islamabad
Grant Thornton Anjum Rahman1-Inter Floor, Eden Centre,
43-Jail Road, Lahore 54000,
Pakistan.
T +92 42 37423 621-23, 37422 987-88
F +92 42 37425 485
www.gtpak.com
An instinct for growthTM
CHARTERED ACCOUNTANTSEngagement Partner: Imran AfzalLahoreDated: February 24, 2016
Introduction
We have reviewed the accompanying condensed interim balance sheet of Samin Textiles Limited as at December 31, 2015 and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim statement of cash flows, condensed interim statement of changes in equity together with the notes forming part thereof 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 condensed interim profit and loss account and condensed interim statement of comprehensive income for the quarters ended December 31, 2015 and 2014 have not been reviewed as we are required to review only the cumulative figures for the half year ended December 31, 2015.
Scope of Review
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.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information as of and for the half year ended December 31, 2015 is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.
Emphasis of Matter
We draw attention to note 1.2 to the financial information which describes that during the period ended December 31, 2015, the Company suffered a net loss amounting to Rs. 39.297 million. Currently, the Company is in the process of implementing its plan for improving production efficiencies and cost cuttings. These conditions indicate existence of uncertainties relating to going concern status of the Company in foreseeable future. Our conclusion is not qualified in respect of this matter.
02 Samin Textiles Limited 03
Interim Financial Report
DIRECTORS’ REVIEW
For and on behalf of the Board
Jehanzeb Amin
Chief Executive
Lahore :
Dated : February 24, 2016
Sales - Net
Gross Profit / (Loss)
Other Operating Income
Profit / (Loss) after tax
Depreciation
Cash Profit / (Loss)
683.221
28.716
6.706
(39.296)
35.779
(3.517)
Rupees in million
Half Year endedDecember 31, 2015
1,038.282
(66.156)
330.137
121.933
37.058
158.991
Half Year endedDecember 31, 2014
The board of directors of your company is pleased to present before you the un-audited financial statements duly reviewed by the auditors for the half Year ended December 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
The figures tabulated above reveal that during the period under review company posted net sales amounting to Rs. 683.221 million and a net loss of Rs. (39.296) million as compared to net sales of Rs. 1,038.282 million and net profit of Rs. 121.933 million for the corresponding period of last financial year.
The sales were down due to the depressed market prices and low production volumes.
Investment
Company's wholly owned subsidiary named Nimas Trading (Private) Limited to whom the company sold 6,530,000 ordinary shares of Security General Insurance Company Limited (SGICL) face value of Rs. 10 each during last financial year @ 94 amounting to Rs. 613,820,000/- has decided to wind up its operations during the year. Consequently, the shares sold to Nimas Trading (Private) limited were received back by the parent company in the process of its liquidation at the same price.
In order to implement company's plan for its turnaround project like arrangement of additional working capital and BMR, the company has sold the said investment of 6,530,000/- shares @ Rs. 95 in the market. The liquidity so generated has helped the company in implementing its plan as mentioned in note 1.2 of the financial statement.
Future Outlook / Strategy
Though the company had suffered a loss of Rs. (39.296) million during the half year ended December 31, 2015, however, the significant achievement is that the company is out of gross loss situation. This is the first step towards revival and turnaround of the project. Management is hopeful of even further improvement for the financial year closing 30th June 2016.
Second step towards revival is to control the bleeding and convert the cash loss to cash profit. For this purpose management is exercising all measures to curtail the costs under every head. The major improvement can be seen after implementation of proposed BMR in which old and inefficient looms will be replaced with new / efficient looms.
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.
AUDITOR'S REPORT TO THE MEMBERS ON REVIEW OF CONDENSED INTERIM FINANCIAL INFORMATION
Chartered Accountants Member of Grant Thornton International Ltd
Offices in Karachi and Islamabad
Grant Thornton Anjum Rahman1-Inter Floor, Eden Centre,
43-Jail Road, Lahore 54000,
Pakistan.
T +92 42 37423 621-23, 37422 987-88
F +92 42 37425 485
www.gtpak.com
An instinct for growthTM
CHARTERED ACCOUNTANTSEngagement Partner: Imran AfzalLahoreDated: February 24, 2016
Introduction
We have reviewed the accompanying condensed interim balance sheet of Samin Textiles Limited as at December 31, 2015 and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim statement of cash flows, condensed interim statement of changes in equity together with the notes forming part thereof 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 condensed interim profit and loss account and condensed interim statement of comprehensive income for the quarters ended December 31, 2015 and 2014 have not been reviewed as we are required to review only the cumulative figures for the half year ended December 31, 2015.
Scope of Review
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.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information as of and for the half year ended December 31, 2015 is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.
Emphasis of Matter
We draw attention to note 1.2 to the financial information which describes that during the period ended December 31, 2015, the Company suffered a net loss amounting to Rs. 39.297 million. Currently, the Company is in the process of implementing its plan for improving production efficiencies and cost cuttings. These conditions indicate existence of uncertainties relating to going concern status of the Company in foreseeable future. Our conclusion is not qualified in respect of this matter.
04 Samin Textiles Limited 05
Interim Financial Report
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
Condensed Interim Profit and loss account (Un-audited)Condensed Interim Balance Sheet (Un-audited)as at December 31, 2015
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
Note
Equity and liabilities
Share capital and reserves
Issued, subscribed and paid-up share capital
Reserves
Total share capital and reserves
Surplus on revaluation of property, plant and equipment
Liabilities
Non-current
Subordinated loan
Long term financing - secured 4
Deferred liabilities 5
Total non-current liabilities
Current
Trade and other payables 6
Interest accrued on borrowings
Short term borrowings - secured
Current portion of long term borrowings - secured
Total current liabilities
Total liabilities
Total equity and liabilities
Contingencies and commitments 7
Assets
Non-current
Property, plant and equipment 8
Intangible assets
Long term investments 9
Long term deposits
Total Non-current assets
Current
Stores, spare parts and loose tools
Stock in trade
Trade debts
Loans and advances
Trade deposits and prepayments
Tax refunds due from government
Other receivables 10
Interest accrued
Cash and bank balances 11
Total Current assets
Total assets
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information.
Un-audited Audited
Dec 31 , 2015 June 30, 2015
Rupees Rupees
267,280,000 267,280,000
102,668,759 137,304,455
369,948,759 404,584,455
258,865,367 263,526,284
10,411,566 10,411,566
89,668,655 123,499,619
1,562,100 23,341,406
101,642,321 157,252,591
279,139,587 345,926,606
18,210,708 31,777,580
473,435,207 802,034,940
54,044,873 51,211,536
824,830,375 1,230,950,662
926,472,696 1,388,203,253
1,555,286,822 2,056,313,992
847,039,937 881,130,005
888,280 1,307,280
1,100,000 1,100,000
12,418,239 12,418,239
861,446,456 895,955,524
59,232,464 64,098,850
350,590,781 232,261,885
57,492,357 111,910,448
35,625,546 18,664,953
1,128,640 1,178,640
115,859,710 98,980,112
- 613,820,000
584,344 511,319
73,326,524 18,932,261
693,840,366 1,160,358,468
1,555,286,822 2,056,313,992
for the half year ended December 31, 2015
For the quarter
ended Dec 31,
2014
Rupees
535,150,668
(582,878,980)
(47,728,312)
131,316
(7,849,816)
(13,986,721)
(333,877)
(69,767,410)
(31,157,384)
(100,924,794)
(21,808,072)
(122,732,866)
(4.59)
For the half year
ended Dec 31,
2014
1,038,282,572
(1,104,438,767)
(66,156,195)
330,137,599
(17,800,225)
(27,429,241) (333,877)
218,418,061
(69,445,923)
148,972,138
(27,038,317)
121,933,821
4.56
Rupees
For the quarter
ended Dec 31,
2015
294,074,547
(282,053,022)
12,021,525
91,386
(7,699,388)
(13,057,485) (320,303)
(8,964,265)
(15,799,391)
(24,763,656)
14,680,986
(10,082,670)
(1.09)
Rupees
For the half year
ended Dec 31,
2015
683,221,393
(654,504,827)
28,716,566
6,706,412
(16,704,702)
(30,329,719) (332,795)
(11,944,238)
(42,242,404)
(54,186,642)
14,890,029
(39,296,613)
(1.47)
RupeesNote
Sales - net
Cost of sales 12
Gross profit / (loss)
Other income 13
Distribution cost
Administrative expenses Other operating expenses
Operating (loss) / profit
Finance cost
(Loss) / profit before taxation
Taxation 14
(Loss) / profit after taxation
(Loss) / earning per share - basic and diluted
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information.
04 Samin Textiles Limited 05
Interim Financial Report
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
Condensed Interim Profit and loss account (Un-audited)Condensed Interim Balance Sheet (Un-audited)as at December 31, 2015
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
Note
Equity and liabilities
Share capital and reserves
Issued, subscribed and paid-up share capital
Reserves
Total share capital and reserves
Surplus on revaluation of property, plant and equipment
Liabilities
Non-current
Subordinated loan
Long term financing - secured 4
Deferred liabilities 5
Total non-current liabilities
Current
Trade and other payables 6
Interest accrued on borrowings
Short term borrowings - secured
Current portion of long term borrowings - secured
Total current liabilities
Total liabilities
Total equity and liabilities
Contingencies and commitments 7
Assets
Non-current
Property, plant and equipment 8
Intangible assets
Long term investments 9
Long term deposits
Total Non-current assets
Current
Stores, spare parts and loose tools
Stock in trade
Trade debts
Loans and advances
Trade deposits and prepayments
Tax refunds due from government
Other receivables 10
Interest accrued
Cash and bank balances 11
Total Current assets
Total assets
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information.
Un-audited Audited
Dec 31 , 2015 June 30, 2015
Rupees Rupees
267,280,000 267,280,000
102,668,759 137,304,455
369,948,759 404,584,455
258,865,367 263,526,284
10,411,566 10,411,566
89,668,655 123,499,619
1,562,100 23,341,406
101,642,321 157,252,591
279,139,587 345,926,606
18,210,708 31,777,580
473,435,207 802,034,940
54,044,873 51,211,536
824,830,375 1,230,950,662
926,472,696 1,388,203,253
1,555,286,822 2,056,313,992
847,039,937 881,130,005
888,280 1,307,280
1,100,000 1,100,000
12,418,239 12,418,239
861,446,456 895,955,524
59,232,464 64,098,850
350,590,781 232,261,885
57,492,357 111,910,448
35,625,546 18,664,953
1,128,640 1,178,640
115,859,710 98,980,112
- 613,820,000
584,344 511,319
73,326,524 18,932,261
693,840,366 1,160,358,468
1,555,286,822 2,056,313,992
for the half year ended December 31, 2015
For the quarter
ended Dec 31,
2014
Rupees
535,150,668
(582,878,980)
(47,728,312)
131,316
(7,849,816)
(13,986,721)
(333,877)
(69,767,410)
(31,157,384)
(100,924,794)
(21,808,072)
(122,732,866)
(4.59)
For the half year
ended Dec 31,
2014
1,038,282,572
(1,104,438,767)
(66,156,195)
330,137,599
(17,800,225)
(27,429,241) (333,877)
218,418,061
(69,445,923)
148,972,138
(27,038,317)
121,933,821
4.56
Rupees
For the quarter
ended Dec 31,
2015
294,074,547
(282,053,022)
12,021,525
91,386
(7,699,388)
(13,057,485) (320,303)
(8,964,265)
(15,799,391)
(24,763,656)
14,680,986
(10,082,670)
(1.09)
Rupees
For the half year
ended Dec 31,
2015
683,221,393
(654,504,827)
28,716,566
6,706,412
(16,704,702)
(30,329,719) (332,795)
(11,944,238)
(42,242,404)
(54,186,642)
14,890,029
(39,296,613)
(1.47)
RupeesNote
Sales - net
Cost of sales 12
Gross profit / (loss)
Other income 13
Distribution cost
Administrative expenses Other operating expenses
Operating (loss) / profit
Finance cost
(Loss) / profit before taxation
Taxation 14
(Loss) / profit after taxation
(Loss) / earning per share - basic and diluted
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information.
For the half year
ended Dec 31,
2015
For the half year
ended Dec 31,
2014
Note Rupees Rupees
Cash flows from operating activities
Cash (used in) operations 15 (131,118,713)
(65,657,570)
Income taxes paid (17,741,361)
(10,910,883)
Net cash (used in) operating activities (148,860,074)
(76,568,453)
Cash flows from investing activities
Proceeds from disposal of investments 620,350,000
350,066,830
Additions in property, plant and equipment (1,689,027)
(8,669,592)
Dividend received - 16,325,000
Net cash from investing activities 618,660,973 357,722,238 Cash flows from financing activities
(Decrease) in short term borrowings - net (328,599,733)
(162,332,136)
(Decrease) in long term financing - net (30,997,627)
(63,608,376)
Repayment of liabilities against assets subject to finance lease -
(439,590)
Finance cost paid (55,809,276)
(61,050,282)
Net cash (used in) financing activities (415,406,636)
(287,430,384)
Net change in cash and cash equivalents 54,394,263
(6,276,599)
Cash and cash equivalents at beginning of the period 18,932,261
17,812,734
Cash and cash equivalents at end of the period 73,326,524
11,536,135
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information.
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
Condensed Interim Statement of Cash flows (Un-audited)
06 Samin Textiles Limited 07
Interim Financial Report
Condensed Interim Statement of Comprehensive Income (Un-audited)
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
for the half year ended December 31, 2015
For the half year
ended Dec 31,
2015
For the half year
ended Dec 31,
2014
For the quarter
ended Dec 31,
2015
For the quarter
ended Dec 31,
2014
Rupees
(Loss) / profit after taxation (39,296,613) 121,933,821 (10,082,670) (122,732,866)
Other comprehensive income
Items that will not be reclassified to profit and loss account -
-
- -
Items that may be reclassified subsequently to profit and loss account -
-
- -
-
(368,536,875)
- (368,536,875)
-
(235,776,168)
- (235,776,168)
Other comprehensive (loss) for the period -
(604,313,043)
- (604,313,043)
Total comprehensive (loss) for the period (39,296,613)
(482,379,222)
(10,082,670) (727,045,909)
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information.
(Loss) on remeasurement of available-for-sale investment to fair value - net of tax
Gain on disposal of investment transferred to profit & loss account
The surplus arising on revaluation of fixed assets is presented under a separate head below equity in accordance with the requirements of Companies
Ordinance1984.
RupeesRupeesRupees
for the half year ended December 31, 2015
For the half year
ended Dec 31,
2015
For the half year
ended Dec 31,
2014
Note Rupees Rupees
Cash flows from operating activities
Cash (used in) operations 15 (131,118,713)
(65,657,570)
Income taxes paid (17,741,361)
(10,910,883)
Net cash (used in) operating activities (148,860,074)
(76,568,453)
Cash flows from investing activities
Proceeds from disposal of investments 620,350,000
350,066,830
Additions in property, plant and equipment (1,689,027)
(8,669,592)
Dividend received - 16,325,000
Net cash from investing activities 618,660,973 357,722,238 Cash flows from financing activities
(Decrease) in short term borrowings - net (328,599,733)
(162,332,136)
(Decrease) in long term financing - net (30,997,627)
(63,608,376)
Repayment of liabilities against assets subject to finance lease -
(439,590)
Finance cost paid (55,809,276)
(61,050,282)
Net cash (used in) financing activities (415,406,636)
(287,430,384)
Net change in cash and cash equivalents 54,394,263
(6,276,599)
Cash and cash equivalents at beginning of the period 18,932,261
17,812,734
Cash and cash equivalents at end of the period 73,326,524
11,536,135
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information.
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
Condensed Interim Statement of Cash flows (Un-audited)
06 Samin Textiles Limited 07
Interim Financial Report
Condensed Interim Statement of Comprehensive Income (Un-audited)
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
for the half year ended December 31, 2015
For the half year
ended Dec 31,
2015
For the half year
ended Dec 31,
2014
For the quarter
ended Dec 31,
2015
For the quarter
ended Dec 31,
2014
Rupees
(Loss) / profit after taxation (39,296,613) 121,933,821 (10,082,670) (122,732,866)
Other comprehensive income
Items that will not be reclassified to profit and loss account -
-
- -
Items that may be reclassified subsequently to profit and loss account -
-
- -
-
(368,536,875)
- (368,536,875)
-
(235,776,168)
- (235,776,168)
Other comprehensive (loss) for the period -
(604,313,043)
- (604,313,043)
Total comprehensive (loss) for the period (39,296,613)
(482,379,222)
(10,082,670) (727,045,909)
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information.
(Loss) on remeasurement of available-for-sale investment to fair value - net of tax
Gain on disposal of investment transferred to profit & loss account
The surplus arising on revaluation of fixed assets is presented under a separate head below equity in accordance with the requirements of Companies
Ordinance1984.
RupeesRupeesRupees
for the half year ended December 31, 2015
08 Samin Textiles Limited
09
Interim Financial Report
Condensed Interim Statement of Changes in Equity (Un-audited)
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
for the half year ended December 31, 2015
Rupees
Balance as at July 01, 2014 (audited) 267,280,000
997,125,119
(390,559,476)
606,565,643
873,845,643
Profit for the period after taxation -
-
121,933,821
121,933,821
121,933,821
Other comprehensive loss for the period -
(604,313,043)
-
(604,313,043)
(604,313,043)
-
(604,313,043)
121,933,821
(482,379,222)
(482,379,222)
-
- 4,699,236
4,699,236
4,699,236
Balance as at December 31, 2014 (un-audited) 267,280,000
392,812,076
(263,926,419)
128,885,657
396,165,657
Balance as at July 01, 2015 (audited) 267,280,000
-
137,304,455
137,304,455
404,584,455
Loss for the period after taxation -
-
(39,296,613)
(39,296,613)
(39,296,613)
Other comprehensive income for the period -
-
-
-
-
Total comprehensive loss for the period -
-
(39,296,613)
(39,296,613)
(39,296,613)
-
-
4,660,917
4,660,917
4,660,917
Balance as at December 31, 2015 (un-audited) 267,280,000
-
102,668,759
102,668,759
369,948,759
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information.
Transfer from surplus on revaluation of property, plant
and equipment -net of tax
Particulars Issued,
subscribed and
paid up share
capital
Total comprehensive loss for the period
Transfer from surplus on revaluation of property, plant
and equipment-net of tax
Reserves
Total Equity
Capital reserve-
Surplus on
revaluation of
investment to fair
value
Revenue reserve-
Accumulated
profit / (loss) Sub-total
RupeesRupeesRupeesRupees
Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2015
1 Legal Status And Nature Of Business
1.1 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.
1.2 During the period ended December 31, 2015, the Company posted a gross profit of Rs. 28.716 million (4.2%) whereas suffered net loss amounting to Rs. 39.297 million mainly due to depressed market conditions for grey fabric in local & international market. Continuation of the Company as a going concern is dependent on its ability to attain satisfactory levels of profitability in the future based on following plans drawn by the management and resources for this purpose:
- Gross Profit
The management has improved production efficiencies and curtailed the wastages etc, thereby the company has posted a Gross Profit of 4.2% during half year ended December 31, 2015 as compared to 10.2 % Gross Loss during the year June 30, 2015. Similar trend is expected in future.
- Liquidity
In order to implement its BMRE plan and control the consequential losses due to paucity of liquidity, the company has realized its investment in SGI amounting to Rs. 620.350 million. The funds so realized have been deployed towards its working capital requirements and to reduce the borrowing cost, as a result the borrowings from the banks have been substantially reduced.
- Future Projections
The future projections for the whole year based on the same business model exhibit that there is no cash loss during the year ended June 30, 2016.
- Cost Cutting / Staff Retrenchment
The company has taken proactive measures to reduce the existing cost i.e. released the redundant work force, curtailed the wastages, minimized idle capacities and many other steps to improve the company’s financial health and makes the project efficient/profitable.
Keeping in view the aforementioned achievements/plans, the management is of the view that company will have requisite resources and continue to work as a going concern in a foreseeable future.
2 Statement Of Compliance
This condensed interim financial information is un-audited and is being submitted to the members in accordance with section 245 of the Companies Ordinance, 1984. It 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. The figures for the half year ended December 31, 2015 have, however, been subjected to limited scope review by the auditors as required by the Code of Corporate Governance. This condensed interim financial information does not include all the information required for annual financial statements and therefore, should be read in conjunction with the annual financial statements for the year ended June 30, 2015.
3 Significant Accounting Policies
The accounting policies adopted for the preparation of this condensed interim financial information 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, 2015.
The new standards, amendments to the approved accounting standards and interpretations that are mandatory for accounting period beginning on or after July 1, 2015, 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.
08 Samin Textiles Limited
09
Interim Financial Report
Condensed Interim Statement of Changes in Equity (Un-audited)
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
for the half year ended December 31, 2015
Rupees
Balance as at July 01, 2014 (audited) 267,280,000
997,125,119
(390,559,476)
606,565,643
873,845,643
Profit for the period after taxation -
-
121,933,821
121,933,821
121,933,821
Other comprehensive loss for the period -
(604,313,043)
-
(604,313,043)
(604,313,043)
-
(604,313,043)
121,933,821
(482,379,222)
(482,379,222)
-
- 4,699,236
4,699,236
4,699,236
Balance as at December 31, 2014 (un-audited) 267,280,000
392,812,076
(263,926,419)
128,885,657
396,165,657
Balance as at July 01, 2015 (audited) 267,280,000
-
137,304,455
137,304,455
404,584,455
Loss for the period after taxation -
-
(39,296,613)
(39,296,613)
(39,296,613)
Other comprehensive income for the period -
-
-
-
-
Total comprehensive loss for the period -
-
(39,296,613)
(39,296,613)
(39,296,613)
-
-
4,660,917
4,660,917
4,660,917
Balance as at December 31, 2015 (un-audited) 267,280,000
-
102,668,759
102,668,759
369,948,759
The annexed notes from 1 to 18 form an integral part of this condensed interim financial information.
Transfer from surplus on revaluation of property, plant
and equipment -net of tax
Particulars Issued,
subscribed and
paid up share
capital
Total comprehensive loss for the period
Transfer from surplus on revaluation of property, plant
and equipment-net of tax
Reserves
Total Equity
Capital reserve-
Surplus on
revaluation of
investment to fair
value
Revenue reserve-
Accumulated
profit / (loss) Sub-total
RupeesRupeesRupeesRupees
Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2015
1 Legal Status And Nature Of Business
1.1 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.
1.2 During the period ended December 31, 2015, the Company posted a gross profit of Rs. 28.716 million (4.2%) whereas suffered net loss amounting to Rs. 39.297 million mainly due to depressed market conditions for grey fabric in local & international market. Continuation of the Company as a going concern is dependent on its ability to attain satisfactory levels of profitability in the future based on following plans drawn by the management and resources for this purpose:
- Gross Profit
The management has improved production efficiencies and curtailed the wastages etc, thereby the company has posted a Gross Profit of 4.2% during half year ended December 31, 2015 as compared to 10.2 % Gross Loss during the year June 30, 2015. Similar trend is expected in future.
- Liquidity
In order to implement its BMRE plan and control the consequential losses due to paucity of liquidity, the company has realized its investment in SGI amounting to Rs. 620.350 million. The funds so realized have been deployed towards its working capital requirements and to reduce the borrowing cost, as a result the borrowings from the banks have been substantially reduced.
- Future Projections
The future projections for the whole year based on the same business model exhibit that there is no cash loss during the year ended June 30, 2016.
- Cost Cutting / Staff Retrenchment
The company has taken proactive measures to reduce the existing cost i.e. released the redundant work force, curtailed the wastages, minimized idle capacities and many other steps to improve the company’s financial health and makes the project efficient/profitable.
Keeping in view the aforementioned achievements/plans, the management is of the view that company will have requisite resources and continue to work as a going concern in a foreseeable future.
2 Statement Of Compliance
This condensed interim financial information is un-audited and is being submitted to the members in accordance with section 245 of the Companies Ordinance, 1984. It 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. The figures for the half year ended December 31, 2015 have, however, been subjected to limited scope review by the auditors as required by the Code of Corporate Governance. This condensed interim financial information does not include all the information required for annual financial statements and therefore, should be read in conjunction with the annual financial statements for the year ended June 30, 2015.
3 Significant Accounting Policies
The accounting policies adopted for the preparation of this condensed interim financial information 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, 2015.
The new standards, amendments to the approved accounting standards and interpretations that are mandatory for accounting period beginning on or after July 1, 2015, 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.
Un-audited Audited
Half year ended June 30, 2015
Dec 31, 2015
Rupees Rupees
7.2 Commitments
Commitments against foreign bills 17,841,444 19,650,000
8 Property, plant and equipment
Operating fixed assets 8.1 847,039,937 881,130,005
Total 847,039,937 881,130,005
Un-audited Audited
Half year ended June 30, 2015
Dec 31, 2015
Note Rupees Rupees
6 TRADE AND OTHER PAYABLES
Creditors 6.1 220,765,862 281,419,691
Accrued liabilities 40,091,051 36,942,835
Advances from customers 5,931,816 16,603,340
Security deposits 513,630 513,630
Withholding tax 4,867,365 3,356,371
Workers' Welfare Fund 6.2 1,891,540 1,891,540
Provident fund 1,612,159 1,733,035
Unclaimed dividend 3,466,164 3,466,164
Total 279,139,587
345,926,606
10 Samin Textiles Limited
11
Interim Financial Report
Note
4 Long term financing - secured
From financial institutions
Less:
Payable within in next twelve months
Transaction cost
Amortization of transaction cost
Non-current portion
5 Deferred Liabilities
Deferred tax 5.1
Staff gratuity
Total
Un-audited Audited
Half year ended June 30, 2015
Dec 31, 2015
Rupees Rupees
142,332,163 173,329,790
142,332,163 173,329,790
(52,663,508) (49,830,171)
89,668,655 123,499,619
- (1,126,250)
- 1,126,250
- -
89,668,655 123,499,619
- 21,779,306
1,562,100 1,562,100
1,562,100
23,341,406
5.1 This represented deferred tax liability on surplus on revaluation of property, plant and equipment and remeasurement of available for sale investments to fair value. Deferred tax asset amounting to Rs. 118.315 million (2015: Rs 41.980 million) arising on account of temporary differences mainly for property, plant and equipment (other than revaluation surplus), trade debts, finance lease liabilities, un-used tax losses, unabsorbed deprecation and tax credits has not been accounted for due to uncertainty regarding its recoverability in the foreseeable future.
6.1 This includes amount of Rs 4.19 million (2015: Rs. 2.99 million) payable to Security General Insurance Company Limited, a related party, on account of insurance services.
6.2 Workers’ Welfare Fund Ordinance, 1971 has been amended through Finance Acts 2006 and 2008. These amendments were held unconstitutional and struck down by the Honorable Lahore High Court, Lahore (HLHC) on August 05, 2011. The decision of the HLHC has been challenged in the august Supreme Court of Pakistan decision, outcome of which is still pending. Therefore, the Company has not yet made payment of this amount. Further, the Company has also not made any provision during last year as the management is confident of favourable outcome of such litigation.
7 Contingencies and commitments
7.1 Contingencies
There is no material change in contingencies as disclosed in the notes to the financial statements for the year ended June 30, 2015 except as follows:
7.1.1 Appeal effect order u/s 122(5A) of the Income Tax Ordinance 2001 for Tax Year 2010 that has been passed raising demand amounting to Rs. 1,775,510. The Company is in process of filing appeal before CIR-Appeals against the impugned demand. The Company has not made any provision against such order as the management is confident of favourable outcome of such case.
7.1.2 An order u/s 122(1) / 122(5A) for Tax Year 2011 has been passed by Additional CIR by disallowing the refunds of tax years 2008, 2009, and 2010 amounting to Rs. 6,014,075. The Company is in process of filing appeal before CIR-Appeals against the impugned demand. The Company has not made any provision against such order as the management is confident of favourable outcome of such case.
7.1.3 During last year, Company had filed a writ petition against imposition of Universal Obligation Fund Surcharge (UOFS), Debt Servicing Surcharge (DSS), Neelam-Jhelum Surcharge (NJS) and Equalisation (EQ) Surcharge on consumption of electricity whereby the Honorable Lahore High Court, Lahore has stayed recovery of these surcharges from November 2014. However, during the period ended December 31, 2015, Supreme Court of Pakistan ordered against the company and accordingly, the Company has made related provision in this condensed interim financial information.
Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2015
Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2015
Un-audited Audited
Half year ended June 30, 2015
Dec 31, 2015
Rupees Rupees
7.2 Commitments
Commitments against foreign bills 17,841,444 19,650,000
8 Property, plant and equipment
Operating fixed assets 8.1 847,039,937 881,130,005
Total 847,039,937 881,130,005
Un-audited Audited
Half year ended June 30, 2015
Dec 31, 2015
Note Rupees Rupees
6 TRADE AND OTHER PAYABLES
Creditors 6.1 220,765,862 281,419,691
Accrued liabilities 40,091,051 36,942,835
Advances from customers 5,931,816 16,603,340
Security deposits 513,630 513,630
Withholding tax 4,867,365 3,356,371
Workers' Welfare Fund 6.2 1,891,540 1,891,540
Provident fund 1,612,159 1,733,035
Unclaimed dividend 3,466,164 3,466,164
Total 279,139,587
345,926,606
10 Samin Textiles Limited
11
Interim Financial Report
Note
4 Long term financing - secured
From financial institutions
Less:
Payable within in next twelve months
Transaction cost
Amortization of transaction cost
Non-current portion
5 Deferred Liabilities
Deferred tax 5.1
Staff gratuity
Total
Un-audited Audited
Half year ended June 30, 2015
Dec 31, 2015
Rupees Rupees
142,332,163 173,329,790
142,332,163 173,329,790
(52,663,508) (49,830,171)
89,668,655 123,499,619
- (1,126,250)
- 1,126,250
- -
89,668,655 123,499,619
- 21,779,306
1,562,100 1,562,100
1,562,100
23,341,406
5.1 This represented deferred tax liability on surplus on revaluation of property, plant and equipment and remeasurement of available for sale investments to fair value. Deferred tax asset amounting to Rs. 118.315 million (2015: Rs 41.980 million) arising on account of temporary differences mainly for property, plant and equipment (other than revaluation surplus), trade debts, finance lease liabilities, un-used tax losses, unabsorbed deprecation and tax credits has not been accounted for due to uncertainty regarding its recoverability in the foreseeable future.
6.1 This includes amount of Rs 4.19 million (2015: Rs. 2.99 million) payable to Security General Insurance Company Limited, a related party, on account of insurance services.
6.2 Workers’ Welfare Fund Ordinance, 1971 has been amended through Finance Acts 2006 and 2008. These amendments were held unconstitutional and struck down by the Honorable Lahore High Court, Lahore (HLHC) on August 05, 2011. The decision of the HLHC has been challenged in the august Supreme Court of Pakistan decision, outcome of which is still pending. Therefore, the Company has not yet made payment of this amount. Further, the Company has also not made any provision during last year as the management is confident of favourable outcome of such litigation.
7 Contingencies and commitments
7.1 Contingencies
There is no material change in contingencies as disclosed in the notes to the financial statements for the year ended June 30, 2015 except as follows:
7.1.1 Appeal effect order u/s 122(5A) of the Income Tax Ordinance 2001 for Tax Year 2010 that has been passed raising demand amounting to Rs. 1,775,510. The Company is in process of filing appeal before CIR-Appeals against the impugned demand. The Company has not made any provision against such order as the management is confident of favourable outcome of such case.
7.1.2 An order u/s 122(1) / 122(5A) for Tax Year 2011 has been passed by Additional CIR by disallowing the refunds of tax years 2008, 2009, and 2010 amounting to Rs. 6,014,075. The Company is in process of filing appeal before CIR-Appeals against the impugned demand. The Company has not made any provision against such order as the management is confident of favourable outcome of such case.
7.1.3 During last year, Company had filed a writ petition against imposition of Universal Obligation Fund Surcharge (UOFS), Debt Servicing Surcharge (DSS), Neelam-Jhelum Surcharge (NJS) and Equalisation (EQ) Surcharge on consumption of electricity whereby the Honorable Lahore High Court, Lahore has stayed recovery of these surcharges from November 2014. However, during the period ended December 31, 2015, Supreme Court of Pakistan ordered against the company and accordingly, the Company has made related provision in this condensed interim financial information.
Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2015
Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2015
11 CASH AND BANK BALANCES
Cash at bank:
- current accounts
- deposit accounts
- foreign currency accounts
Cash in hand
Total
40,498,654
22,841,203
1,800,155
65,140,012
8,186,512
73,326,524
10,698,257
3,782,239
1,861,472
16,341,968
2,590,293
18,932,261
8.1 Operating fixed assets
Written down value - opening 881,130,005
899,247,429
Transferred from capital work in progress 1,294,292
30,932,336
Cost of additions during the period / year 394,735
27,780,900
882,819,032
957,960,665
Disposals during the period / year (W.D.V) -
(704,499)
Depreciation for the period / year (35,779,095) (76,126,161)
Written down value - closing 847,039,937 881,130,005
9 LONG TERM INVESTMENT
Investments in related parties
Associate
Onetel Pakistan (Private) Limited 9.1 1,000,000 1,000,000
Subsidiary
Nimas Trading (Private) Limited 9.2 100,000 100,000
Total 1,100,000 1,100,000
13
Interim Financial Report
12 Samin Textiles Limited
Un-audited Audited
Half year ended June 30, 2015
Dec 31, 2015
Rupees RupeesNote
9.1 This represents Company's investment in an associate, Onetel Pakistan (Private) Limited. The Company has common directorship with the associate and holds 24% (2015: 24%) equity in the associate. The breakup value per share based on unaudited accounts amounts to Rs. 10 per share at 30 June 2015 (2015: Rs. 10 per share).
9.2 This represents Company's investment in its wholly owned subsidiary company, Nimas Trading (Private) Limited. The Company has 100% equity in the subsidiary. Currently, the Company is in the process of winding up.
9.3 During the period ended December 31, 2015 the Company has disposed off its investment in Security General Insurance Company Limited of 6,530,000 Ordinary shares.
Half year ended
June 30, 2015Dec 31, 2015
Rupees Rupees
10 OTHER RECEIVABLES
Nimas Trading (Private) Limited 10.1 - 613,820,000
Total - 613,820,000
10.1 Such receivables have been settled in lieu of shares transferred to Samin Textiles Limited.
Note
Un-audited Audited
Un-audited Audited
Half year ended June 30, 2015
Dec 31, 2015
Rupees Rupees
Un-audited
Quarter ended
Dec 31, 2014
Rupees
Raw materials consumed 446,648,993
Salaries, wages and other benefits 37,932,468
Factory overheads 136,682,287
621,263,748
(Increase)/decrease in work in process
Opening work in process 2,735,148
Closing work in process (2,923,786)
Adjustment of work in process (188,638)
Cost of goods manufactured 621,075,110
(Increase)/decrease in finished goods
Opening stock 205,562,511
Closing stock (243,758,641)
Adjustment of finished goods (38,196,130)
Less: Export Rebate -
Total 582,878,980
Un-audited
Half year ended
Dec 31, 2015
Rupees
444,905,639
59,572,053
250,742,405
755,220,097
4,532,107
(2,647,685)
1,884,422
757,104,519
180,461,393
(282,693,038)
(102,231,645)
(368,047)
654,504,827
Un-audited
Half year ended
Dec 31, 2014
Rupees
824,398,983
74,655,979
242,523,992
1,141,578,954
6,779,303
(2,923,786)
3,855,517
1,145,434,471
202,762,937
(243,758,641)
(40,995,704)
-
1,104,438,767
Un-audited
Quarter ended
Dec 31, 2015
Rupees
176,142,344
18,432,875
131,336,412
325,911,631
6,725,940
(2,647,685)
4,078,255
329,989,886
234,788,459
(282,693,038)
(47,904,579)
(32,285)
282,053,022
12 COST OF SALES
Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2015
Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2015
11 CASH AND BANK BALANCES
Cash at bank:
- current accounts
- deposit accounts
- foreign currency accounts
Cash in hand
Total
40,498,654
22,841,203
1,800,155
65,140,012
8,186,512
73,326,524
10,698,257
3,782,239
1,861,472
16,341,968
2,590,293
18,932,261
8.1 Operating fixed assets
Written down value - opening 881,130,005
899,247,429
Transferred from capital work in progress 1,294,292
30,932,336
Cost of additions during the period / year 394,735
27,780,900
882,819,032
957,960,665
Disposals during the period / year (W.D.V) -
(704,499)
Depreciation for the period / year (35,779,095) (76,126,161)
Written down value - closing 847,039,937 881,130,005
9 LONG TERM INVESTMENT
Investments in related parties
Associate
Onetel Pakistan (Private) Limited 9.1 1,000,000 1,000,000
Subsidiary
Nimas Trading (Private) Limited 9.2 100,000 100,000
Total 1,100,000 1,100,000
13
Interim Financial Report
12 Samin Textiles Limited
Un-audited Audited
Half year ended June 30, 2015
Dec 31, 2015
Rupees RupeesNote
9.1 This represents Company's investment in an associate, Onetel Pakistan (Private) Limited. The Company has common directorship with the associate and holds 24% (2015: 24%) equity in the associate. The breakup value per share based on unaudited accounts amounts to Rs. 10 per share at 30 June 2015 (2015: Rs. 10 per share).
9.2 This represents Company's investment in its wholly owned subsidiary company, Nimas Trading (Private) Limited. The Company has 100% equity in the subsidiary. Currently, the Company is in the process of winding up.
9.3 During the period ended December 31, 2015 the Company has disposed off its investment in Security General Insurance Company Limited of 6,530,000 Ordinary shares.
Half year ended
June 30, 2015Dec 31, 2015
Rupees Rupees
10 OTHER RECEIVABLES
Nimas Trading (Private) Limited 10.1 - 613,820,000
Total - 613,820,000
10.1 Such receivables have been settled in lieu of shares transferred to Samin Textiles Limited.
Note
Un-audited Audited
Un-audited Audited
Half year ended June 30, 2015
Dec 31, 2015
Rupees Rupees
Un-audited
Quarter ended
Dec 31, 2014
Rupees
Raw materials consumed 446,648,993
Salaries, wages and other benefits 37,932,468
Factory overheads 136,682,287
621,263,748
(Increase)/decrease in work in process
Opening work in process 2,735,148
Closing work in process (2,923,786)
Adjustment of work in process (188,638)
Cost of goods manufactured 621,075,110
(Increase)/decrease in finished goods
Opening stock 205,562,511
Closing stock (243,758,641)
Adjustment of finished goods (38,196,130)
Less: Export Rebate -
Total 582,878,980
Un-audited
Half year ended
Dec 31, 2015
Rupees
444,905,639
59,572,053
250,742,405
755,220,097
4,532,107
(2,647,685)
1,884,422
757,104,519
180,461,393
(282,693,038)
(102,231,645)
(368,047)
654,504,827
Un-audited
Half year ended
Dec 31, 2014
Rupees
824,398,983
74,655,979
242,523,992
1,141,578,954
6,779,303
(2,923,786)
3,855,517
1,145,434,471
202,762,937
(243,758,641)
(40,995,704)
-
1,104,438,767
Un-audited
Quarter ended
Dec 31, 2015
Rupees
176,142,344
18,432,875
131,336,412
325,911,631
6,725,940
(2,647,685)
4,078,255
329,989,886
234,788,459
(282,693,038)
(47,904,579)
(32,285)
282,053,022
12 COST OF SALES
Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2015
Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2015
Interim Financial Report
15
14 Samin Textiles Limited
13 OTHER INCOME Un-audited
Quarter ended
Dec 31, 2014
Rupees
Un-audited
Half year ended
Dec 31, 2015
Rupees
Un-audited
Half year ended
Dec 31, 2014
Rupees
Un-audited
Quarter ended
Dec 31, 2015
RupeesNote
23,276,583
(1,468,511)
21,808,072
(17,652,540)
(14,680,986)
2,971,554 29,891,424
(2,853,107)
27,038,317
6,889,277
(21,779,306)
(14,890,029)
14 PROVISION FOR TAXATION
Current
Deferred
Total
Income from financial assets
Profit on deposit accounts
Dividend income
Interest income
Gain on disposal of Investment 9.3
Foreign currency translation differences
Total
103,387
-
73,025
6,530,000
-
6,706,412
191,359
16,325,000
263,809
313,046,597
310,834
330,137,599
54,874
-
36,512
-
91,386
75,092
-
56,224
-
-
131,316
Income from assets other than
financial assets
Un-audited Un-audited
Half year ended Half year ended
Dec 31, 2015 Dec 31, 2014
Rupees Rupees
15 Cash (used in) operations
(Loss) / profit before taxation
Adjustments for:
Depreciation on property, plant and equipment
Foreign currency translation difference
Amortization
Gain on disposal of investment
Interest Income
Dividend income
Finance cost
Operating profit before changes in working capital
Changes in working capital
(Increase) /decrease in current assets
Stores, spare parts and loose tools
Stock in trade
Trade debts
Loans and advances
Trade deposits, prepayments and balances with statutory authorities
(Decrease) /increase in current liabilities
Trade and other payables Total
(54,186,642)
35,779,095
332,795
419,000
(6,530,000)
(73,025)
-
42,242,404
17,983,627
4,866,386
(118,328,896)
54,085,296
(16,960,593)
(5,977,514)
(66,787,019) (131,118,713)
148,972,138
37,058,586
-
214,528
(313,046,597)
(72,450)
(16,325,000)
69,445,923
(73,752,872)
3,542,328
18,473,853
(27,570,951)
(3,276,311)
1,402,184
15,524,199 (65,657,570)
Un-audited
Half year ended
Dec 31, 2015
Rupees
Un-audited
Half year ended
Dec 31, 2014
Rupees
16 Transactions with related parties
Significant transactions with related parties during six months are as follows:
Security General InsuranceCompany Limited
Associated company
Dividend received -
16,325,000
Mrs. Mehvish Amin Member of the company
Office rent 600,000
450,000
Mrs. Shehla Segal Member of the company
Markup on subordinated loan 780,867
780,867
MCB Bank Limited Associated company
Profit received on PLS account 374 1,526
Onetel Pakistan (Pvt) Limited Associated company
Interest on loan 73,025 72,450
Directors and executives Directors and executives
Remuneration 15,898,200 12,586,992
Relationship
Un-audited Audited
Half year ended June 30, 2015
Dec 31, 2015
Note Rupees Rupees
Associate
9 1,000,000
1,000,000
1,150,000
1,150,000
584,344
511,319
Subsidiary
9 100,000
100,000
10 -
613,820,000
Associated company
6 4,194,231
2,989,326
21,416,094 23,618,136
Loan
Significant balances with related parties as onbalance sheet date are as follows:
Onetel Pakistan (Private) Limited
Investment
Interest accrued on loan
Nimas Trading (Private) Limited
Investment
Outstanding balance of receivables
Security General InsuranceCompany Limited
Outstanding balance ofInsurance premium
Payable to other related parties
Payable to Provident Fund Provident fund 1,690,320
1,733,035
Relationship
Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2015
Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2015
Interim Financial Report
15
14 Samin Textiles Limited
13 OTHER INCOME Un-audited
Quarter ended
Dec 31, 2014
Rupees
Un-audited
Half year ended
Dec 31, 2015
Rupees
Un-audited
Half year ended
Dec 31, 2014
Rupees
Un-audited
Quarter ended
Dec 31, 2015
RupeesNote
23,276,583
(1,468,511)
21,808,072
(17,652,540)
(14,680,986)
2,971,554 29,891,424
(2,853,107)
27,038,317
6,889,277
(21,779,306)
(14,890,029)
14 PROVISION FOR TAXATION
Current
Deferred
Total
Income from financial assets
Profit on deposit accounts
Dividend income
Interest income
Gain on disposal of Investment 9.3
Foreign currency translation differences
Total
103,387
-
73,025
6,530,000
-
6,706,412
191,359
16,325,000
263,809
313,046,597
310,834
330,137,599
54,874
-
36,512
-
91,386
75,092
-
56,224
-
-
131,316
Income from assets other than
financial assets
Un-audited Un-audited
Half year ended Half year ended
Dec 31, 2015 Dec 31, 2014
Rupees Rupees
15 Cash (used in) operations
(Loss) / profit before taxation
Adjustments for:
Depreciation on property, plant and equipment
Foreign currency translation difference
Amortization
Gain on disposal of investment
Interest Income
Dividend income
Finance cost
Operating profit before changes in working capital
Changes in working capital
(Increase) /decrease in current assets
Stores, spare parts and loose tools
Stock in trade
Trade debts
Loans and advances
Trade deposits, prepayments and balances with statutory authorities
(Decrease) /increase in current liabilities
Trade and other payables Total
(54,186,642)
35,779,095
332,795
419,000
(6,530,000)
(73,025)
-
42,242,404
17,983,627
4,866,386
(118,328,896)
54,085,296
(16,960,593)
(5,977,514)
(66,787,019) (131,118,713)
148,972,138
37,058,586
-
214,528
(313,046,597)
(72,450)
(16,325,000)
69,445,923
(73,752,872)
3,542,328
18,473,853
(27,570,951)
(3,276,311)
1,402,184
15,524,199 (65,657,570)
Un-audited
Half year ended
Dec 31, 2015
Rupees
Un-audited
Half year ended
Dec 31, 2014
Rupees
16 Transactions with related parties
Significant transactions with related parties during six months are as follows:
Security General InsuranceCompany Limited
Associated company
Dividend received -
16,325,000
Mrs. Mehvish Amin Member of the company
Office rent 600,000
450,000
Mrs. Shehla Segal Member of the company
Markup on subordinated loan 780,867
780,867
MCB Bank Limited Associated company
Profit received on PLS account 374 1,526
Onetel Pakistan (Pvt) Limited Associated company
Interest on loan 73,025 72,450
Directors and executives Directors and executives
Remuneration 15,898,200 12,586,992
Relationship
Un-audited Audited
Half year ended June 30, 2015
Dec 31, 2015
Note Rupees Rupees
Associate
9 1,000,000
1,000,000
1,150,000
1,150,000
584,344
511,319
Subsidiary
9 100,000
100,000
10 -
613,820,000
Associated company
6 4,194,231
2,989,326
21,416,094 23,618,136
Loan
Significant balances with related parties as onbalance sheet date are as follows:
Onetel Pakistan (Private) Limited
Investment
Interest accrued on loan
Nimas Trading (Private) Limited
Investment
Outstanding balance of receivables
Security General InsuranceCompany Limited
Outstanding balance ofInsurance premium
Payable to other related parties
Payable to Provident Fund Provident fund 1,690,320
1,733,035
Relationship
Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2015
Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2015
samintextile.com
Samin Textiles Limited50-C, Main Gulberg, Lahore - Pakistan.
Tel: +92 42 3575 3761
Fax: +92 42 3575 3688
Pro
du
ce b
y:
17 General
17.1 Corresponding figures have been rearranged wherever necessary, for the purpose of comparison. However, there were no material reclassification or rearrangement to report.
In order to comply with the requirements of International Accounting Standard 34 - ‘Interim Financial Reporting’, the condensed interim balance sheet has been compared with the balances of annual audited financial statements of preceding financial year, whereas, the condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows have been compared with the balances of condensed interim half yearly financial information of comparable period.
17.2 Figures have been rounded off to the nearest rupees unless otherwise stated.
18 Date of authorization for issue
This financial information was authorized for issue on February 24, 2016 by the Board of Directors of theCompany.
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
16 Samin Textiles Limited
Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2015
samintextile.com
Samin Textiles Limited50-C, Main Gulberg, Lahore - Pakistan.
Tel: +92 42 3575 3761
Fax: +92 42 3575 3688
Pro
du
ce b
y:
17 General
17.1 Corresponding figures have been rearranged wherever necessary, for the purpose of comparison. However, there were no material reclassification or rearrangement to report.
In order to comply with the requirements of International Accounting Standard 34 - ‘Interim Financial Reporting’, the condensed interim balance sheet has been compared with the balances of annual audited financial statements of preceding financial year, whereas, the condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows have been compared with the balances of condensed interim half yearly financial information of comparable period.
17.2 Figures have been rounded off to the nearest rupees unless otherwise stated.
18 Date of authorization for issue
This financial information was authorized for issue on February 24, 2016 by the Board of Directors of theCompany.
JEHANZEB AMIN
Chief Executive
SAFDAR HUSSAIN TARIQ
Director
16 Samin Textiles Limited
Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2015