Amtex : Transmission of Quarterly Report March 31 2023

AMTEX LIMITED

Third Quarterly Report

March 31, 2023

A M T E X

CONTENTS

COMPANY INFORMATION

DIRECTOR'S REPORT

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION CONDENSED INTERIM STATEMENT OF PROFIT & LOSS ACCOUNT CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME CONDENSED INTERIM CASH FLOW STATEMENT

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY NOTES TO THE CONDNSED INTERIM FINANCIAL STATEMENTS

Company Information

Board of Directors
Mr. Muhammad Ahsan	Chairman
Mr. Khurram Iftikhar	Chief Executive Officer
Mr. Shahzad Iftikhar
Mr. Nadeem Iftikhar
Mr. Suhail Maqsood Ahmed
Mr. Gul Muhammad Naz
Mrs.Bushra Bibi
Chief Financial Officer
Mr. Waheed Aslam
Company Secretary
Mr. Muhammad Raza Farooq
Audit Committee
Mr. Suhail Maqsood Ahmed	Chairman
Mr. Muhammad Ahsan
Mrs.Bushra Bibi
Human Resource & Remuneration Committee
Mr. Gul Muhammad Naz	Chairman
Mr. Suhail Maqsood Ahmed
Shahzad Iftikhar
Auditors
Zahid Jamil & Co.
Chartered Accountants
Legal Advisor
Mr. Aamir Nawaz Bhatti
Advocate High Court

Share Registrar Office

Vision Consulting Limited

3-C, LDA Flats, Lawrance Road, Lahore

Registered Office

P-225 Tikka Gali # 2 Montgomery Bazar, Faisalabad

Projects Locations

Punj Pullian Daewoo Road Faisalabad

Processing & Stitching Unit

Website

www.amtextile.com

DIRECTORS' REPORT

The Board of Directors of Amtex Limited presents herewith the Directors' Report together with the Company's un-audited financial information for the half year ended March 31, 2023.

Financial Results

The financial results for the period under review with comparative figures of previous period are presented hereunder.

		QUARTER ENDED		PERIOD ENDED
		MARCH 31		MARCH 31
		2023	2022	2023	2022
		RUPEES	RUPEES		RUPEES	RUPEES
Sales	430,619,016	265,118,286	1,109,687,252	849,158,513
Cost of sales	428,170,998	219,881,706	988,709,112	756,527,777
Gross profit	2,448,018	45,236,580	120,978,140	92,630,736
Other income	5,832,000	5,796,000	282,719,540	32,255,171
Net Profit / (loss) for the period	(37,522,340)	(1,654,424)	222,239,452	(36,019,050)
Earnings per share - Basic and diluted	(0.14)	(0.01)	0.86	(0.14)

During 1st nine months under review company earned gross profit of Rs.120.97 million as compared to gross profit of Rs.92.63 million in the corresponding period of last year and net profit of Rs.222.23 million as compared to net loss of Rs.36.01 million in the corresponding period of last year. Sales volume has also increased as compared to previous corresponding period and the company's total sales are Rs.1,109.68 million in nine months against sales of Rs. 849.15 million in the corresponding period of last year.

As mentioned in Note 1.3 of these condensed interim financial statements that The Court Auctioneers in Execution Application filed by the Bank of Punjab auctioned the Company's Spinning Division's Land and Building at Rs.490 million. During the pendency of the execution petition, the Decree Holder bank, the Company as well as other first charge holder banks/financial institutions reached a negotiated deal and agreed to withdraw objection petitions on auction of land and building and also agreed for sale of Spinning Division's machinery to the Auction Purchaser (M/S Beacon Impex Private Limited) for Rs.315 million. Resultantly, the honorable court confirmed the auction and ordered for distribution of sale proceeds of Rs.490 million amongst first charge holder banks/financial institutions in proportion to the value of their charge. The entire sale proceeds of Land, Building and Machinery of Rs.805 million have been adjusted against the loans of the Company by the relevant banks / financial institutions. Other operating income of rupees

282.71 million includes an amount of Rs.265.22 million gain on disposal of land, building and machinery of Company's Spinning Division.

Certain banks / financial institutions have filed suit against the Company for recovery of its financing and mark up, therefore Company has not provided any markup / cost of funds on the outstanding amount as also stated in notes to the accounts. Based on the legal opinion, the Company feels that, after institution of the suit, bank/financial institution is only entitled to cost of funds if so awarded by the Court in case the suit is awarded against the company. The levy of cost of funds and the quantum thereof shall be contingent on passing of the decree and rate prescribed by the State Bank of Pakistan during the period of pendency of the claim and discharge of decree, if passed by the Court.

Future outlook

Continuous increase in energy tariffs, slowdown in global economies and decline in cotton production are key challenges the textile sector could face going ahead. Though, weakness in PKR would provide some cushion. We expect the textile industry to remain in turmoil as gas crisis has started to surface again. However, power blackouts in addition to the current macroeconomic conditions along with mini budget remain a challenge for the industry. Textile sector has begun to losing the orders. Despite this Company's management is doing its utmost effort to comply with export orders and becomes successful to increase the export volume in nine months under review. Further to regularize bank loans and to settle the litigations with banks, negotiations with them are at advance stage.

Acknowledgement

The Directors of your Company would like to place on record their deep appreciation for the support of the customers, banks, financial institutions, regulators and shareholders and hope that this cooperation and support will also continue in future.

The Directors of your Company would also like to express their appreciation for the services, loyalty and efforts being continuously rendered by the executives, staff members and workers of the Company and hope that they will continue to do so in future.

For and on behalf of the Board

KHURRAM IFTIKHAR

SHAHZAD IFTIKHAR

Faisalabad

April 29, 2023