Ahmad Hassan Textile Mills : Ate Transmission of Quarterly Report for the Period Ended 2023-09-30

ACCOUNTS

For the First Quarter Ended

September 30, 2023

(Un-Audited)

AHMAD HASSAN

TEXTILE MILLS LTD.

Ahmad Hassan Textile Mills Limited

BOARD OF DIRECTORS

CHAIRPERSON	Mrs. Salma Javed	Non-Executive Director
CHIEF EXECUTIVE	Mr. Muhammad Haris	Executive Director
DIRECTORS	Mian Muhammad Javed	Executive Director
	Mrs. Bushra Ali	Non-Executive Director
	Mr. Haseeb Haris Mughal	Non-Executive Director
	Mr. Ali Kamal	Independent Director
	Mr. Nazir Ahmed Khan	Independent Director

Directors' Review

In the Name of Allah, the Most Beneficent, the Merciful

Dear Shareholders

We have pleasure in presenting the un-audited accounts of your Company for the quarter ended September 30, 2023.

SUMMARIZED FINANCIAL RESULTS:

Summary of Profit and Loss	September 2023	September 2022
	(Rupees)	(Rupees)
Sales-Net	1,295,796,027	1,384,978,189
Gross Profit	83,230,972	152,167,481
Profit After Taxation	17,157,018	76,237,153
G. P. Ratio	6.42%	10.99%
Earnings Per Share	2.03	9.00
Distribution Expenses	12,414,005	5,531,231
Admin Expenses	21,480,913	17,585,184
Finance Cost	28,767,852	20,901,996

REVIEW OF FINANCIAL RESULTS:

During the period under review, sales of the Company witnessed reduction of 6.44% as compared to preceding period. Gross profit of the Company decreased from 10.99% to 6.42% as compared to preceding period. Profit after taxation decreased from 5.50% to 1.32% which is mainly attributable to low selling rates of fabric, high purchase rates of yarn, escalation of costs due to inflation and high interest rates. Distribution & Admin costs mainly increased due to inflation factor whereas finance cost increased due to higher interest rate.

FUTURE OUTLOOK

Textile industry in Pakistan is facing multidimensional challenges which are causing problems to compete both locally and globally. These problems encompass reduction of demand locally as well as globally, high rate of inflation, high rates of raw materials, high cost of energy & labor, volatility of exchange rates and escalation of government taxes. In order to maintain the Company in profitability zone, a bonafide effort is being made by the management to maintain cost and efficiency through strategies such as optimizing capacity utilization, rationalizing expenses, and implementing effective procurement strategy. In pursuance thereof, the Company is in process of installing additional solar system having rated capacity of 895.320 KWP.

We hope all of your directors' sincerely efforts towards the reduction in business cost; will result in increase in shareholder's wealth and stakeholder's interest in your Company.

ACKNOWLEDGMENT

Your Directors place on record their deep appreciation for the efforts made by the workers and staff of the Company for their deep devotion to work.

Your Directors would also like to express their thanks to the Shareholders and Financial Institutions for their support and assistance.

	On the behalf of the Board of Directors
Multan	Chief Executive	Director
Dated: October 28, 2023

1

Ahmad Hassan Textile Mills Limited

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)

AS AT SEPTEMBER 30, 2023	Un-Audited	Audited
		September 30, 2023	June 30, 2023
	ASSETS	Rupees	Rupees
	NON-CURRENT ASSETS
	Property, plant and equipment	1,589,486,629	1,636,465,404
	Investment property	30,074,550	-
	Long term deposits	11,847,377	11,847,375
		1,631,408,556	1,648,312,779
	CURRENT ASSETS
	Stores, spare parts and loose tools	44,931,159	50,775,618
	Stock-in-trade	1,075,722,880	1,115,879,467
	Trade debts	493,682,263	226,426,757
	Loans and advances	71,865,571	55,202,258
	Due from Government	167,307,093	207,581,898
	Other receivables	3,343,355	3,343,355
	Short term investment	28,847,030	18,382,292
	Cash and bank balances	407,954	17,174,375
		1,886,107,305	1,694,766,020
	TOTAL ASSETS	3,517,515,861	3,343,078,799
	EQUITY AND LIABILITIES
	SHARE CAPITAL AND RESERVES
	Authorized share capital	200,000,000	200,000,000
	Issued, subscribed and paid up share capital	84,715,354	84,715,354
	Capital reserve	32,746,284	32,746,284
	Surplus on revaluation of
	property, plant and equipment	522,503,046	527,309,623
	Revenue reserve - unappropriated profit	1,176,982,772	1,155,019,175
		1,816,947,456	1,799,790,436
	Subordinated loans	62,500,000	62,500,000
	NON-CURRENT LIABILITIES
	Long term loans and financing	162,011,337	150,652,445
	Lease liabilities	26,035,866	27,774,501
	Deferred income - government grant	-	-
	Gas infrastructure development Cess	14,055,627	12,953,609
	Deferred taxation	86,583,176	90,303,689
		288,686,006	281,684,244
	CURRENT LIABILITIES
	Trade and other payables	709,214,888	700,379,910
	Unclaimed dividend	4,040,056	3,722,109
	Short term borrowings	399,722,470	343,631,499
	Current portion of non-current liabilities	152,016,521	86,167,004
	Accrued finance cost	20,737,587	16,828,026
	Provision for taxation	63,650,877	48,375,571
		1,349,382,399	1,199,104,119
	TOTAL EQUITY AND LIABILITIES	3,517,515,861	3,343,078,799

Sd/-

Chief Executive

3

Ahmad Hassan Textile Mills Limited

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

	September 30, 2023 September 30,2022
		Rupees	Rupees
Sales - net	1,295,796,027			1,384,978,189
Cost of sales	(1,212,565,055)			(1,232,810,708)
Gross profit	83,230,972			152,167,481
Other income	9,885,157			663,134
Distribution cost	(12,414,005)			(5,531,231)
Administrative expenses	(21,480,913)			(17,585,184)
Other operating expenses	(1,741,549)			(15,137,197)
	(25,751,310)			(37,590,478)
Profit before finance cost	57,479,662			114,577,003
Finance cost	(28,767,852)			(20,901,996)
Profit before taxation	28,711,810			93,675,007
Taxation	(11,554,792)			(17,437,854)
Profit after taxation	17,157,018			76,237,153
Earnings/(loss) per share	2.03			9.00
CONDENSED INTERIM STATEMENT
OF OTHER COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE QUARTER ENDED SEPTEMBER 30, 2023
		Quarter ended
		September 30,	September 30,
	2023			2022
		Rupees			Rupees

Profit for the period

Other comprehensive Income / (Loss) for the period:

Items that will not be subsequently reclassified to profit or loss:

Impact of revaluation carried out during the period Less: related deferred tax

17,157,018 76,237,153

-

-

--

Total comprehensive income for the period	17,157,018	76,237,153

Sd/-

Director

4

Ahmad Hassan Textile Mills Limited

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2023

	September 30, 2023		September 30, 2022
	Rupees		Rupees
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation	28,711,810	93,675,007
Adjustments for non cash charges and other items:

Depreciation on property, plant and equipment

Provision for Workers' Profit Participation Fund

Provision for Workers' Welfare Fund

Duty Drawback of taxes on export sales

Gain on disposal of Fixed assets

Dividend Income

Loss/(gain) on disposal of short term investment

Unrealized (gain) / loss on remeasurement of short term investments Exchange rate fluctuation loss / (gain) - net

Amortization of deferred government grant

Finance cost - net

Profit before working capital changes

Effect on cash flows due to working capital changes

(Increase) / decrease in current assets

21,069,576

1,079,512

647,036

-

-

-

(776,128)

(241,933)

(8,867,096)

-

28,767,852

41,678,819

70,390,629

17,049,487

4,157,958

1,585,989

(1,787)

(1,007,490)

(104,413)

-

2,649,285

-

(81,820)

8,842,411

33,089,620

126,764,627

Stores, spares and loose tools

Stock in trade

Trade debts

Loans and advances (excluding advance income tax) Due from government

Increase / (decrease) in current liabilities

Trade and other payables

5,844,459

40,156,587

(258,388,410)

(8,022,633)

40,274,805

18,885,818

(161,249,374)

(35,437,305)

(277,711,932)

(88,284,520)

(37,317,896)

(12,349,772)

275,051,905

(176,049,520)

Cash used in operation	(90,858,746)
Income tax paid - net	(8,640,681)
Paid to workers' profit participation fund	(11,777,389)
Duty drawback of taxes on export sales received	-
	(20,418,070)
Net cash used in operating activities	(111,276,816)

CASH FLOWS FROM INVESTING ACTIVITIES

(49,284,893)

(19,501,575)

1,787

(19,499,788)

(68,784,681)

Property, plant and equipment	25,909,203
Investment property	(30,074,550)
Proceeds from disposal of fixed assets	-
Short term investments	(9,446,677)
Dividend received	-
Net cash (used in) / generated from investing activities	(13,612,024)

CASH FLOWS FROM FINANCING ACTIVITIES

(1,270,931)

1,280,409

5,000,000

104,413

5,113,891

Unclaimed dividend	317,947	-
Long term finances-net	78,025,547	33,116,343
Repayment of finance lease	(1,714,677)	(160,811)
Long term payable	260,922	(5,470,913)
Short term finances - net	56,090,971	54,867,148
Finance cost paid	(24,858,291)	(5,951,671)
Net cash generated from financing activities	108,122,419	76,400,096
NET (DECREASE) IN CASH AND CASH EQUIVALENTS	(16,766,421)	12,729,306
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD	17,174,375	4,442,391
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD	407,954	17,171,697

Sd/-

Chief Financial Officer

5

Ahmad Hassan Textile Mills Limited

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

				Reserves
	Issued,		Capital		Revenue
	subscribed			Surplus on				Total
	and paid up		Share	revaluation of
			Unappropriated
	share capital		premium	property,
		plant and		profit
				equipment
Balance as at June 30, 2022 (Audited)				Rupees
84,715,354		32,746,284	547,739,232		1,060,732,426	1,725,933,296
Total comprehensive income for the period:
Profit for the period	-		-	-		76,237,153		76,237,153
Other comprehensive income for the period	-		-	-		-		-
	-		-	-		76,237,153		76,237,153
Surplus on revaluation of land, buildings and plant	-		-					-
& machinery (net of defferred tax)		(5,186,804)		5,186,804
Balance as at September 30, 2022 (Un-Audited)	84,715,354		32,746,284	542,552,428		1,142,156,383		1,802,170,450
Total comprehensive income for the period:

Profit for the period

Other comprehensive income for the period

-	-	-	16,680,941	16,680,941
-	-	-	-		-
-	-	-	16,680,941	16,680,941

Final cash dividend of Rs. 2.25 per share
for the year ended June 30, 2022						(19,060,954)		(19,060,954)
Transfer from revaluation surplus on account of	-		-					-
incremental depreciation - net of deferred tax		(15,242,805)		15,242,805
Balance as at June 30, 2023 (Audited)	84,715,354		32,746,284	527,309,623		1,155,019,175		1,799,790,436
Total comprehensive income for the period:
Profit for the period	-		-	-		17,157,018		17,157,018
Other comprehensive income for the period	-		-	-		-		-
Transfer from revaluation surplus on account of	-		-	-		17,157,018		17,157,018
-		-
incremental depreciation - net of deferred tax		(4,806,577)		4,806,577		-
Balance as at September 30, 2023 (Un-Audited)	84,715,354		32,746,284	522,503,046		1,176,982,770		1,816,947,456

NOTES TO THE FINANCIAL STATEMENTS (UN-AUDITED) FOR THE QUARTER ENDED SEPTEMBER 30, 2023

1. These un-audited accounts are being presented to the shareholders as required under SECP notification No.764(1)/2001 dated 05-11-2001 and in accordance with the requirements of International Accounting Standard-34 "Interim Financial Reporting".
2. Accounting policies adopted for the preparation of these quarterly accounts are the same as adopted in the preceding annual accounts.
3. Figures from previous year have been re-arranged for the purpose of comparison wherever necessary.
4. Figures in these accounts have been rounded off to the nearest rupee.
5. Provisions for taxation has been calculated on turnover basis.

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AHMAD HASSAN TEXTILE MILLS LTD.

46 - Hassan Parwana Colony,

MULTAN

Ph # [phone], 4512362

Fax # [phone]

email: [e-mail]

web: www.ahtml.com.pk