Allawasaya Textile & Finishing Mills : Transmission of Auditors' Reviewed Half Yearly Accounts for the period ended December 31, 2022

Allawasaya Textile and Finishing Mills Limited

BOARD OF DIRECTORS

1.

Mrs. Nusrat Jamil

- Chairperson

2. Mian Muhammad Jamil

3.	Mr. Mohammad Alamgir Jamil Khan - Chief Executive Officer

1. Mian Tauqir Ahmed Sheikh
2. Mian Idrees Ahmed Sheikh
3. Mrs. Bushra Tauqir
4. Mrs. Misbah Idrees Sheikh
5. Mr. Muhammad Umar Farooq
6. Mr. Javed Musarrat
7. Mr. Abdul Rehman Qureshi
8. Mr. Imran Hussain

AUDIT COMMITTEE
Mr. Javed Musarrat	- Chairman
Mr. Abdul Rehman Qureshi	- Member
Mrs. Nusrat Jamil	- Member

CHIEF FINANCIAL OFFICER

Mr. Sohail Nadeem

COMPANY SECRETARY

Mr. Muhammad Ismail

HEAD OF INTERNAL AUDIT

Ch. Javed Akhtar

AUDITORS

Yousuf Adil Chartered Accountants, Multan.

BANKERS

M/s Habib Bank Limited

M/s Bank AL Habib Limited

M/s Habib Metropolitan Bank Limited

M/s United Bank Limited

M/s Askari Bank Limited

M/s Samba Bank Limited

M/s BankIslami Pakistan Limited

REGISTERED OFFICE

Allawasaya Square,

Mumtazabad Industrial Area,

Vehari Road, Multan, Pakistan.

Ph: [phone]-26

E-Mail:[e-mail]

SHARES REGISTRAR

M/s Hameed Majeed Associates (Pvt.) Limited, H.M. House, 7- Bank Square, Lahore.

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Allawasaya Textile and Finishing Mills Limited

DIRECTORS' REVIEW

Dear Shareholders,

On behalf of the Board of Directors of your Company, it is our privilege to present before you the Auditors' Reviewed Financial Statements of your Company for the Six Month period ended December 31, 2022.

During the six month period under report, the situation of the textile industry at large was slow due to recession in the world and floods in the country and economic and political instability in the country played its part as a result the overall demand of yarn and fabric reduced drastically in international and national market . The Company's sales were also affected badly due to shortage and inconsistent supply of raw materials . It is very important to mention that the sharp increase in mark up rates and devaluation in Pak Rupee had adversely affected the cost of production which added to the problems of the industry.

During the six month period under report, the total sales for the period were Rs. 1,764,285,781/ - as compared to Rs. 2,357,428,843 / - for the same period last year . The gross profit for the period was Rs. 73,379,840/ - as compared to Rs. 246,517,890/ - last year . The net loss after providing for tax amounted to (Rs. 104,427,545/ - ) for the Six Month period ended December 31, 2022.

There is a grave apprehension that after removal of subsidy in the electricity tariff, increase in minimum wages and further expected increase in discount rates will lead the industry to curtail its operations. The government must look into the situation and interv ene by adopting consistent and long term policies for the industry to increase exports and create more jobs. The government needs to cut down unnecessary and lavish spending and have a stable policy with regards to Dollar Rate, however, till such steps are not taken, the future of textile industry will be uncertain .

On behalf of the Board

Sd/ -	Sd/ -
Mohammad Alamgir Jamil Khan	Mian Idrees Ahmed Sheikh
Chief Executive Officer	Director
Place: Multan
Dated: 25. 02. 2023

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Allawasaya Textile and Finishing Mills Limited

3

Allawasaya Textile and Finishing Mills Limited

INDEPENDENT AUDITORS' REVIEW REPORT

To the members of Allawasaya Textile and Finishing Mills Limited

Report on the Review of Interim Financial Statements

INTRODUCTION

We have reviewed the accompanying condensed interim statement of financial position of Allawasaya Textile and Finishing Mills Limited (the Company) as at December 31, 2022 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, condensed interim statement of cash flows, and notes to the financial statements for the six month period then ended (here-in-after referred to as the "interim financial statements"). Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these interim financial statements based on our review.

The figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income and the related notes for the three-month period ended December 31, 2022 have not been reviewed, as we are required to review only the cumulative figures for the six month period ended December 31, 2022.

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 statements 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 interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

The engagement partner on the review resulting in this independent auditor's review report is Muhammad Sufyan.

YOUSUF ADIL

Chartered Accountants

Multan

Dated: 28.02.2023

UDIN Number: RR2022101809GHNDY4ql

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