Din Textile Mills : Transmission of Quarterly Report for the Period Ended

30, 2022

DIN GROUP

CCOONNTT EE NN TTSS

Corporate Information	02
Directors' Report	03
Condensed Interim Statement of Financial Position	07
Condensed Interim Statement of Profit or Loss	08
Condensed Interim Statement of Comprehensive Income	09
Condensed Interim Statement of Cash Flows	10
Condensed Interim Statement of Changes in Equity	11
Selected Notes to the Condensed Interim Financial	12
Statements
Directors' Report (Urdu)	21

CORPORATE INFORMATION

Board of Directors

Shaikh Muhammad Muneer

Shaikh Muhammad Pervez

Shaikh Muhammad Tanveer

Shaikh Mohammad Naveed

Mr. Faisal Jawed

Mr. Farhad Shaikh Mohammad

Mr. Ehtesham Maqbool Elahi

Mr. Ali Farooq

Ms. Mehvish Waliany

Chief Operating Officer

Mr. Shaukat Hussain Ch.

(ACA, CPFA, FPFA, CFC )

Company Secretary

Mr. Muhammad Naveed Yar Khan

Chief Financial Officer

Mr. Kashif Javed

Auditors

Naveed Zafar Ashfaq Jaffery & Co. Chartered Accountants

Legal Advisor

Mohsin Teyebaly & Co.

Share Registrar

CDC Share Registrar Services Limited

CDC House 99-B,Block-B, S.M.C.H.S

Main Shahrah-e-Faisal,Karachi-74400

Customer Support Services

(Toll Free) 0800-23275

Fax: [phone]

Email : [e-mail]

Website : www.cdcsrsl.com

Chairman

Director

Chief Executive

Director

Director

Director

Director

Director

Director

sAllied Bank Limited
r	Bank Alfalah Limited
Bank Al-Habib Limited
e	BankIslami Pakistan Limited
Dubai Islamic Bank Pakistan Limited
k	Faysal Bank Limited
Habib Bank Limited
n	Habib Metropolitan Bank Limited
MCB Bank Limited
a	MCB Islamic Bank Limited
Meezan Bank Limited
	National Bank of Pakistan

BStandard Chartered Bank (Pakistan) Limited
Audit Committee
Mr. Ehtesham Maqbool Elahi	Chairperson
Shaikh Muhammad Pervez	Member
Mr. Faisal Jawed	Member

Human Resource and Remuneration Committee

Mr. Ali Farooq	Chairperson
Mr. Faisal Jawed	Member
Mr. Farhad Shaikh Mohammad	Member

Credit Rating

Long term rating A-(A Minus) Short term rating A2 (A two)

by Pakistan Credit Rating Agency (PACRA)

Registered Office

Din House, 35-A/1, Lalazar Area,

Opp: Beach Luxury Hotel, M. T. Khan Road, Karachi.

Mills

Unit-I and II: Kot Akbar Khan, 70 Km Multan Road, Tehsil Pattoki, District Kasur, Punjab.

Unit-III & Weaving: Revenue Estate, Bhai Kot, Tablighi Chowk, Raiwind Road, Tehsil and District Lahore - Punjab.

Unit-IV: Dars Road, Off Raiwind Manga Road, Bachuki Majha Distt. Kasur.

Website: www.dingroup.com

Email: [e-mail]

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DIRECTORS' REPORT

In the name of Allah, the Most Beneficent, the Most Gracious, the Most Merciful.

Dear Shareholders

The Board of Directors is pleased to present the un-audited financial statements of the Company for the quarter ended Sep 30, 2022 in compliance with requirements of the Companies Act, 2017.

Financial Results

During the Quarter ended under review, following are the key financial results of the company as compare to last contemporary period:

		30-Sep-22	30-Sep-21	Inc. /(Dec.)
		% age
Sales	Rupees in '000'	7,906,124	6,504,766	22
Gross Profit	Rupees in '000'	1,337,898	1,557,541	(14)
Pre-tax Profit	Rupees in '000'	517,803	1,145,990	(55)
After Tax Profit	Rupees in '000'	379,082	1,048,360	(64)
Gross Profit	Percentage	16.92	23.94
After Tax Profit	Percentage	4.79	16.12
Earning per share	Rupees	7.23	19.98

The financial results of company for the quarter ended September 30, 2022 decline substantially as compared to performance of previous period. The main reason is the rise in cost of raw material from 61.3% to 73.5% of sales, plus high finance costs as compared to last contemporary period as well as decline in demand of textile products. Our management, are trying their best to allocate its resources optimistically by strict strategic planning.

General Market Conditions

During the current quarter of the year, there is significant decline in demand of textile products both in local and international market. Pakistan textile exports hit 11-month low in July 2022. Cotton production in Pakistan could slump to 6.5 million bales (of 170 kilograms each), compared with a target of 11 million due to heavy floods in the country this year. This could force the textile industry to spend about $3 billion to import cotton from countries such as Brazil, Turkey, the US, East and West Africa and Afghanistan. About 30% of Pakistan's textile production capacity for exports has been hampered because of cotton and energy prices. The situation is exacerbated by the regressive policy of Government of maintaining a high interest rate to counter inflation. Exporters' working capital requirements have increased immensely and the requisite finance is not available, and when available it is extremely costly given the unreasonably high interest rates, which bring textile industry at uncompetitive edge in the region. Consequently as many as 100 smaller as well as bigger units of textile industry observed reduction in production levels or shut down of plants.

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Future Prospect

Due to significant rise in cost of production, the prices of textile end products increase while high inflation overall at world level result in decline in buying power of customers. These factors contributes towards decline of demand. The prices of Raw cotton on the other hand are volatile and non predictable. Textile industry is uncertain about behavior of raw cotton market and prices of input materials. China, on the other hand is selling yarn to Pakistan local market at significant less prices from prices prevailing in Pakistan by local spinning industry. This factor is breath of fresh air for textile weaving and made-up setups but simultaneously creating a threat for textile spinning sector. Due to these prevailing situations in local as well as international market coupled with political situation in Pakistan, the current financial year possess many challenges to be dealt with. However, if demands from customer is foreseen from 2nd or 3rd Quarter of the year situation is likely to become better.

Acknowledgment

The Board of directors would take a pleasure in appreciating all stakeholders for their endeavoring and their outstanding commitment in improving the performance of the Company and making it the leader in Textile sector exclusively. The Company looks toward your continuous support as always to help us navigate through difficult economic conditions both locally and internationally.

		On behalf of the Board of Directors
Karachi:	Shaikh Muhammad Tanveer	Farhad Shaikh Mohammad
Dated : October 19, 2022	Chief Executive	Director

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