Leather Up : Transmission of Quarterly Report for the Period Ended 31-03-2024

CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS PERIOD ENDED

MARCH 31, 2024

Financial Statements For The Nine Months Period Ended March 31, 2024

COMPANY PROFILE

Board of Directors

Khalid H. Shah	Chief Executive/ Director	Mahmooda Shah	Director
Jazim Shah	Director / Chairman	S. Faisal Shah	Director
Ellahi Bukhsh Qureshi	Director	Farooq Raza	Director
Shaikh Abdus Sami	Director
Board Audit Committee
Ellahi Bukhsh Qureshi	Chairman
Jazim Shah	Member
Mahmooda Shah	Member
Human Resource Committee
Ellahi Bukhsh Qureshi	Chairman
S. Faisal Shah	Member
Mahmooda Shah	Member

Chief Financial Officer / Company Secretary

Ali Ahmar

Auditors

UHY Hassan Naeem & Co.

Legal Advisor

Maqsood Ahmad Bullo & CompanyAdvocate

Bankers
MCB Bank Ltd	United Bank Ltd	Faysal Bank Ltd
Summit Bank Ltd	Askari Bank Ltd	Meezan Bank Ltd
Bank Al-falah Ltd	Bank Al Habib Ltd

Registered Office/Factory

Plot # 23/C, 15th Commercial Street Phase II Extension, Defence Housing Authority, Karachi. Phone: [phone] Fax: [phone]

E-mail: [e-mail]

Website: leatherupltd.com

Share Registrar Office

M/S C&K Management Associates (Pvt) Limited

404, TradeTower, Abdullah Haroon Road, Near Hotel Metroplole, Karachi-75530 Phone: [phone]

Financial Statements For The Nine Months Period Ended March 31, 2024

DIRECTORS REPORT

The Directors of your Company have pleasure in submitting the report on Financial Statements for the Nine Months Period Ended March 31, 2024.

Company Performance:

The company's net revenue for the nine months ended in March 31, 2024 is Rs. 25.035 million, compared to Rs. 14.245 million for the same period the previous year. The net profit after taxation for the nine months ended in March 31, 2024 is at 2.21 million whereas in the same comparative period there was a net loss of 1.83 million.

Future Outlook:

Despite various challenges, the company remains focused on improving operational efficiencies, exploring new markets, minimizing production costs effectively, and emphasizing the right performance levers. Despite global uncertainty and challenges within the leather industry, the management is committed to safeguarding the interests of the company's shareholders. We are striving to maintain stability in the current situation and are making concerted efforts to secure export orders of significant value from existing buyers/customers, as well as exploring new markets to sustain upward trends in exports. We hope to achieve reasonable export figures in the foreseeable future.

Workers Management Relation:

The management would like to acknowledge the valued contributions of all staff and workers towards achieving results. We express our gratitude to the shareholders for their continued support during difficult times and aim to maintain this support in the coming years. The worker- management relationship remained excellent throughout the year, resulting in the smooth operation of the company. This is a testament to teamwork, and we hope it continues in the same spirit in the future.

Thanks and Appreciation:

We extend our thanks to our shareholders for their trust and support, both now and during challenging times.

By order of the board

Karachi - April 22, 2024.

Khalid H. Shah

Chief Executive Officer

Financial Statements For The Nine Months Period Ended March 31, 2024

ٹروپر یک زرٹکیرئاڈ

سنمرافرپیک ینپمک یک لاس ےلھچپ وج ،ےہ ےپور نیلم 25.035 ،یئوہ متخ وک 2024 چرام 31 وج ےئل ےک ہام ون یندمآ صلاخ یک ینپمک زا دعب عفانم صلاخ ،یئوہ متخ وک 2024 چرام 31 وج ےئل ےک ہام ون ۔یھت ےپور نیلم 14.245 نارود ےک تدم یسا اھت ناصقن صلاخ اک نیلم 1.83 ںیم تدم ہلباقم یسا ہکبج ،ےہ ےپور نیلم 2.21 سکیٹ :ہدہاشم اک لبقتس

یراوادیپ ،شلات یک سٹیکرام ےئن ،یرتہب ںیم تیرہام یتایلمع ینپمک ،دوجواب ےک ےنوہ انماس اک ںوجنلیچ فلتخم ۔ےہ ہجوتم ےئل ےک ہفاضا ںیم یگدرکراک روا ےنرک مک وک ںوتگلا :ہراچ یچس ہرادا

ےئن رپ روط یتردق روا ےنھکر رارقرب تیلقتسم روا ےہ فورصم ےئل ےک تظافح یک دافم ےک ںورادمہس ٹنمجنیم ۔ےہ یہر رک ششوک یک ےناھڑب رادقم یک تارداص ھتاسیک زرمٹسک/نیفراص ےس سٹیکرام دیما یک تارداص لوقعم ںیم لبقتسم روا ےہ یترک ششوک یک ےنھکر رارقرب وک ںوتیاور یک رپوا ںیم تارداص ینپمک ۔ےہ یترک :ہتشر تاماظتنا اک زرکرو

۔ںیہ ےترک ددم ںیم ےنرک لصاح جئاتن وج ےہ ایگ ایک دنسپان وک تکارش یتمیق یک ںونکراک روا فاٹسا مامت ںیم ٹروپر ۔ےہ راہظا اک تیامح یراج ںیم ںوتقو لکشم یک نج ےہ یترک ادا ہیرکش اک ںوراد تکارش ٹنمجنیم دیما روا ےہ ماک میٹ ہی ۔ےہ اتانب ھتوومس وک ےنلچ ےک ینپمک وج ،ےہر رتہب ںیم رھب لاس ےروپ تاقلعت یتاماظتنا رکرو ۔یگ ےہر یراج ںیم حور یسا ںیم ںولاس ہدنئآ ہک ےہ :راہظا اک ردق و رکش

روا ںیم لاح ،ےہ یترک راہظا اک تیامح روپرھب یک نا وک ںوراد تکارش ہک ےہ یتوہ متخ ھتاس ےک ہیرکش ٹروپر ۔ںیم ںوتقو لکشم روا ،تیلقتسم ،یقرت ںیم سج ،ےہ یترک مہارف ہدہاشم تبثم ےئل ےک سنمرافرپ یک ینپمک ٹروپر ہک ےہ ہی تاب یک لک

۔ےہ یئگ ید تیمہا تیاہن وک تیمہا یک تیامح یک ںوراد تکارش روا ہلمع

۔ےس مکح ےک ڈروب

یچارک

22-Apr-24

۔ہاش نیسح دلاخ ۔وٹکیزگیا فیچ

LEATHER UP LIMITED

CONDESNED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)

AS AT MARCH 31, 2024

ASSETS

Note

Non-current assets

March	June
2024	2023

----------- Rupees ----------

Property, plant and equipment4 Long term deposits

Current assets

Stock-in-trade5 Trade debts

Advances, deposits and other receivables Tax refunds due from government Cash and bank balances

Total assets

EQUITY AND LIABILITIES

Share capital and reserves

Authorized capital

6,000,000 (2022: 6,000,000) ordinary shares of Rs. 10/- each

Issued, subscribed and paid up capital

6

Revenue reserves

General reserve

Accumulated (losses) / profit

Non-current liability
Staff retirement benefits - gratuity	7
Current liabilities
Loan from directors
Trade and other payables	8
Unclaimed dividend

2,616,273

63,072

17,403,292

112,554

4,177,387

1,953,134

4,304,328

27,950,695

30,630,040

60,000,000

60,000,000

1,369,610

(39,368,859)

(37,999,249)

22,000,751

500,406

8,600

6,489,932

1,630,351

8,128,883

2,740,629

63,072

33,920,530

-

2,888,165

1,809,133

2,754,248

41,372,075

44,175,776

60,000,000

60,000,000

1,369,610

(41,582,119)

(40,212,509)

19,787,491

333,604

-

22,424,331

1,630,351

24,054,682

Total equity and liabilities		30,630,040		44,175,777
Contingency and commitments	9
The annexed notes are integral part of these financial statements.

CHIEF EXECUTIVE		CHIEF FINANCIAL OFFICER			DIRECTOR

LEATHER UP LIMITED

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

FOR THE PERIOD ENDED MARCH 31, 2024

NINE MONTHS ENDED		QUARTER ENDED
MARCH	MARCH		MARCH	MARCH
2024	2023	2024	2023

Notes ---------------------- Rupees ----------------------

Sales revenue	10	25,035,751
Cost of sales	11	(20,721,753)
Gross (Loss) / Profit		4,313,998
Administrative expenses		(3,012,103)
Distribution expenses		(929,387)
		(3,941,490)
Operating loss		372,507
Other (expense) / income		2,062,601
Profit/(Loss) before taxation		2,435,109
Taxation	12	(221,849)
Profit/(Loss) after taxation
	2,213,260
Profit/(Loss) per share - basic and diluted	13	0.37

14,245,693

(12,160,063)

2,085,630

(4,569,854)

(1,169,667)

(5,739,521)

(3,653,891)

1,992,302

(1,661,589)

(175,917)

(1,837,506)

(0.31)

2,899,999

(2,719,778)

180,221

-

(839,710)

(98,500)

(938,210)

(757,990)

-

-

-

(757,989)

-

(29,530)

-

(787,519)

-

(0.13)

976,708

(1,286,309)

(309,601)

-

(723,778)

(145,332)

(869,110)

(1,178,711)

-

10,192

-

(1,168,519)

-

(9,547)

-

(1,178,066)

-

(0.20)

The annexed notes form integral part of these financial statements

CHIEF EXECUTIVE		CHIEF FINANCIAL OFFICER			DIRECTOR

LEATHER UP LIMITED

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE PERIOD ENDED MARCH 31, 2024

	NINE MONTHS ENDED		QUARTER ENDED
	MARCH		MARCH		MARCH	MARCH
	2024	2023	2024			2023
	-------------- Rupees --------------
Profit/(Loss) after taxation
2,213,260		(1,837,506)		(787,519)			(1,178,066)
Other comprehensive income
Items that will not be subsequently
reclassified to profit or loss	-	-	-			-
Actuarial gain on defined benefit obligation	-	-	-			-
Total comprehensive income/(Loss)
2,213,260		(1,837,506)		(787,519)			(1,178,066)

The annexed notes form integral part of these financial statements

CHIEF EXECUTIVE		CHIEF FINANCIAL OFFICER			DIRECTOR

LEATHER UP LIMITED

CONDENSED INTERIM STATEMENT OF CASFLOW (UN-AUDITED)

FOR THE PERIOD ENDED MARCH 31, 2024

CASH FLOWS FROM OPERATING ACTIVITIES

Note

Profit/Loss before taxation

Adjustments for non-cash and other items:

• Provision for staff gratuity
• Depreciation on property, plant and equipment

Cash flow before working capital changes

March 31,	March 31,
2024	2023

---------- Rupees ----------

2,435,109 (1,661,589)

166,802

124,356138,537

291,158138,537

2,726,267 (1,523,052)

Working capital changes

(Increase) / decrease in current assets

• Stock-in-trade
• Trade debts
• Advances, deposits, prepayments and other receivables
• Sales tax refundable

Increase / (decrease) in current liabilities

- Trade and other payables excluding gratuity payable

Cash generated from operations

Gratuity paid

Taxes paid

Net cash (used in) / generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash (used in) / generated from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Net loan obtained from / (repaid to) directors
Dividend Paid
Net cash generated from / (used in) financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year	14

The annexed notes are integral part of these financial statements.

16,517,238

(112,554)

(1,289,222)

(144,001)

(15,934,399)

(962,938)

1,763,329

-

(221,849)

(221,849)

1,541,480

-

8,600

-

8,600

1,550,080

2,754,248

4,304,328

6,872,824

7,483,828

563,909

(84,492)

(9,713,342)

5,122,726

3,599,674

(1,838,221)

(214,057)

(2,052,278)

1,547,396

-

(3,232,084)

(983,640)

(4,215,724)

(2,668,328)

4,104,144

1,435,820

LEATHER UP LIMITED

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

FOR THE PERIOD ENDED MARCH 31, 2024

Issued,

subscribed

and paid up capital

Revenue reserves

General		Accumulated
reserve		(loss) / profit

Total

----------------------- Rupees -----------------------

Balance as at July 1, 2022

Total comprehensive profit or loss for the period ended March 31, 2023

• Loss after taxation
• Other comprehensive loss

Balance as at March 31, 2023

Balance as at July 1, 2023

Total comprehensive profit or loss for the period ended March 31, 2024

• Profit after taxation
• Other comprehensive income

Balance as at March 31, 2024

60,000,000

-

-

-

60,000,000

60,000,000

-

-

-

60,000,000

1,369,610

-

-

-

1,369,610

1,369,610

-

-

-

1,369,610

(38,616,907)

(1,837,506)

-

(1,837,506)

(40,454,414)

(41,582,119)

2,213,260

-

2,213,260

(39,368,859)

22,752,703

(1,837,506)

-

(1,837,506)

20,915,196

19,787,491

2,213,260

-

2,213,260

22,000,751

The annexed notes are integral part of these financial statements.

LEATHER UP LIMITED

NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION

FOR THE PERIOD ENDED MARCH 31, 2024

(UN-AUDITED)

1. STATUS AND NATURE OF BUSINESS
   Leather Up Limited ('the Company') was incorporated in Pakistan as a private limited company on December 2, 1990 vide registration no. K-02440 of 1990-91. Subsequently, the Company was converted into a public limited company on May 15, 1993. The Company is listed on Pakistan Stock Exchange since 1994.
   The Company is engaged in the manufacture and export of leather garment products. The Head Office and the manufacturing facility of the Company are located at Plot # 23/C, 15th Commercial Street, Phase II Extension, Defence Housing Authority, Karachi.
2. BASIS OF PREPARATION

2.1 Statement of compliance

These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting which comprise of International Accounting Standard (IAS) 34 'Interim Financial Reporting' issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017 (the Act) and provisions of and directives issued under the Act.Where the provisions of and directives issued under the Act differ with the requirements of IAS 34, the provisions of and directives issued under the Act have been

1. These condensed interim financial statements are unaudited and subject to limited scope review by the auditors. These are being submitted to the members in accordance with Section 237 of the Companies Act, 2017 (the Act).
2. These condensed interim financial statements do not include all the information and disclosures required in annual audited financial statements, and should be read in conjunction with the Company's annual audited financial statements for the year ended June 30, 2023.

3 MATERIAL ACCOUNTING POLICY INFORMATION

The accounting policies and method of computations followed for the preparation of these condensed interim financial statements are the same as those applied in the preparartion of annual published financial statements of the company for the year ended June 30, 2023.

3.1 ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparartion of condensed interim financial statements in conformity with the approved accounitng standards as applicable in Pakistan requires the management to make estimates , assumptions and use judgements that affect the application of policies and the reported amount of assets and liabilities and

Judgements and estimates made by the management in the preparation of these condensed interim financial statements are the same as those applied in the Company's annual financial statements for the year ended June 30, 2023, except as disclosed otherwise.