Mahmood Textile Mills : Transmission of Quarterly Report for the Period 30.09.2023

1st QUARTERLY ACCOUNTS

September 30, 2023

MAHMOOD TEXTILE MILLS

Directors' Review to Shareholders

The Directors of Mahmood Textile Mills Limited are pleased to present its review report along with unaudited condensed interim financial information of your Company for the 1st Quarter ended 30th September 2023. With the blessings of Almighty ALLAH, the Company during the quarter under report after providing depreciation amounting to Rs. 424.063 million and income tax of Rs. 175.00 million earned a net profit of Rs. 191.154 million.

The detail of the production and sales of yarn and fabrics is tabulated as under:

PRODUCTION DATA
Production of yarn	= kgs.	15,195,736
(Converted into 20 count)
Production of cloth	= mtrs.	13,469,380
(Converted into 60 picks)
Production of Garments	= Pieces	698,538
TURNOVER
Total Sales (Net)	= Rs. (Million)	17,781.172

For and on behalf of the board
sd/-	sd/-
(KHAWAJA MUHAMMAD YOUNUS)	(KHAWAJA MUHAMMAD ILYAS)
Chief Executive Officer	Chairman
Multan:
Dated: 30th October, 2023

03

Condensed Interim Statement of Financial Position (Un-audited)

As At September 30, 2023

	30 Sep, 2023	30 June, 2023
	Rupees	Rupees
ASSETS
Non-current assets
Property, plant and equipment	18,022,456,836	17,654,660,879
Investment property	162,687,000	162,687,000
Intangible asset	4,282,510	4,846,115
Long term investments	5,689,696,328	5,538,760,850
Long term deposits	53,854,135	53,814,135
Current assets	23,932,976,809	23,414,768,979
Stores, spares and loose tools	1,338,242,880	1,357,140,105
Stock in trade	17,116,423,863	17,736,240,320
Trade debts	6,019,290,654	6,144,970,571
Loans and advances	1,932,937,453	925,347,505
Other receivables	250,875,623	256,095,983
Short term investments	31,986,968	24,795,100
Tax refunds due from the Government	1,020,406,138	1,476,972,686
Cash and bank balances	34,956,004	34,613,661
	27,745,119,584	27,956,175,931
TOTAL ASSETS	51,678,096,393	51,370,944,910
EQUITY AND LIABILITIES
Equity
Authorized share capital
30,000,000 ordinary shares of Rs.10 each	300,000,000	300,000,000
Issued, subscribed and paid-up share capital	300,000,000	300,000,000
Capital reserves:
Capital reserve	7,120,600	7,120,600
Surplus on revaluation of property, plant and equipment	2,480,292,333	2,508,051,120
Fair value gain / (loss) on long term investment
Revenue reserve - Unappropriated profit	11,158,409,075	10,939,496,770
	13,945,822,008	13,754,668,490
Liabilities
Non-current liabilities

Long term financing

Lease liabilities

Deferred liabilities

9,467,573,530

27,930,595

579,207,175

10,074,711,301

9,063,680,537

29,870,840

585,511,779

9,679,063,156

Current liabilities
Trade and other payables	4,906,882,202		6,350,162,198
Unclaimed dividends	3,680,033		3,699,840
Advance from Customers	78,582,381		126,477,024
Accrued mark-up	1,360,428,458		1,220,860,266
Short term borrowings	18,756,112,751		17,654,509,982
Current maturity of long term liabilities	1,607,194,471		1,811,821,166
Taxation	944,682,788		769,682,788
Total liabilities	27,657,563,084		27,937,213,264
37,732,274,384		37,616,276,420
TOTAL EQUITY AND LIABILITIES	51,678,096,393		51,370,944,910

Contingencies and commitments

sd/-	sd/-	sd/-
Kh. Muhammad Ilyas	Kh. Muhammad Younus	Yasir Ghaffar
Chairman	Director	Chief Financial Officer

04

Condensed Interim Statement of Profit or Loss (Un-audited)

For The Quarter Ended September 30, 2023

		30 Sep, 2023	30 Sep, 2022
	Note	Rupees	Rupees
Sales - net	27	17,781,172,058	12,302,231,251
Cost of sales	28	(14,858,516,826)	(10,512,523,340)
Gross profit		2,922,655,232	1,789,707,911
Distribution cost	29	(491,495,866)	(461,689,726)
Administrative expenses	30	(402,496,541)	(334,783,996)
Other expenses	32	(11,757,709)	(70,056,328)
Other income	31	2,110,842	17,567,175
Profit from operations		2,019,015,959	940,745,036
Finance cost	33	(1,803,797,918)	(648,582,557)
Share of profit of associates	7	150,935,477	129,106,131
Profit before taxation		366,153,518	421,268,609
Taxation	34	(175,000,000)	(120,000,000)
Profit after taxation		191,153,518	301,268,609
Earnings per share	35	6.37	16.07

sd/-	sd/-	sd/-
Kh. Muhammad Ilyas	Kh. Muhammad Younus	Yasir Ghaffar
Chairman	Director	Chief Financial Officer

05

Condensed Interim Statement of Changes in Equity (Un-audited)

For The Quarter Ended September 30, 2023

			Capital reserves			Revenue reserve
	Share	Capital	Surplus on	Fair value gain	Unappropriated		Total
	revaluation of
	capital	on long term
	reserve	property, plant	profit
		investment
			and equipment
			-----------------------------	Rupees	----------------------------
Balance as at June 30, 2022	187,500,000	7,120,600	2,529,956,267	-	9,926,512,816		12,651,089,683
Total Comprehensive income for the year
Transactions with the owners
100 % cash dividend for the year ended June 30, 2021	-	-	-		-	(187,500,000)		(187,500,000)
Bonus shares issued during the period	112,500,000					(112,500,000)		-
Profit for the year	-	-	-		-	1,201,948,807		1,201,948,807
Other comprehensive loss for the year	-	-	89,130,000	-	-		89,130,000
	-	-	89,130,000	-	1,201,948,807		1,291,078,807
Reclassification adjustment on account of deemed
disposal due to approval of scheme
of arrangement	-	-	-		-	-		-
Transfer from revaluation surplus on property, plant and
equipment on account of incremental depreciation	-	-	(111,035,147)	-	111,035,147		-
Balance as at June 30, 2023	300,000,000	7,120,600	2,508,051,120		10,939,496,770		13,754,668,490
Total Comprehensive income for the year

Profit for the year

Other comprehensive loss for the year

Reclassification adjustment on account of deemed disposal due to approval of scheme

of arrangement

Transfer from revaluation surplus on property, plant and equipment on account of incremental depreciation

-	-	-	-	191,153,518	191,153,518
-	-	-	-	-	-
-	-	-	-	191,153,518	191,153,518
-	-	-	-	-	-
-	-	(27,758,787)	-	27,758,787	-

Balance as at September 30, 2023

300,000,000

7,120,600

2,480,292,333

-

11,158,409,075

13,945,822,008

NOTES TO THE ACCOUNTS

1. These accounts are un-audited and are being presented to Members as required under Section 237 of the Companies Act 2017.
2. Accounting Policies have been adopted are the same applied in the preparation of Annual Accounts for the year ended 30-06-2023.
3. Provision for WPPF has been made in the accounts and will be provided at the end of the year 30-06-2024.
4. Figures are re-arranged where ever necessary for the proposes of comparison and figures are rounded off to the nearest rupee.

sd/-	sd/-	sd/-
Kh. Muhammad Ilyas	Kh. Muhammad Younus	Yasir Ghaffar
Chairman	Director	Chief Financial Officer

06

Condensed Interim Statement of Cash Flows (Un-audited)

For The Quarter Ended September 30, 2023

		30 Sep, 2023	30 Sep, 2022
		Rupees	Rupees
	Cash flows from operating activities
	Profit for the year - before taxation and share of
	profit of associates	215,218,041		292,162,479
	Adjustments for non-cash charges and other items:
	Depreciation	424,063,357		262,014,015
	Amortization	563,605		519,226
	Gain on disposal of operating fixed assets - net	(2,110,842)		(2,803,610)
	short term investments	-		(5,736,506)
	Dividend income and markup on TFC's	-		(7,459,515)
	Finance cost	1,803,797,918		648,582,557
	Profit before working capital changes	2,441,532,079		1,187,278,646
	Effect on cash flows due to working capital changes
	(Increase) / decrease in current assets
	Stores, spares and loose tools	18,897,226		(57,970,821)
	Stock in trade	619,816,457		(1,215,542,253)
	Trade debts	125,679,917		(102,109,205)
	Loans and advances	(1,007,589,948)		(613,141,019)
	Other receivables	5,220,360		(5,084,735)
	Sales tax refunds	553,324,043		(26,157,396)
	Increase in trade and other payables	(1,491,174,639)		378,525,823
		(1,175,826,586)		(1,641,479,605)
	Cash (used in) / generated from operations	1,265,705,493		(454,200,959)
	Income tax paid	(103,062,098)		(148,891,127)
	Net cash (used in) / generated from operating activities	1,162,643,395		(603,092,086)

Cash flows from investing activities

Purchase of property, plant and equipment Sale proceeds of operating fixed assets Short term investments - net

Long term deposits

Dividends and profit on TFC's

Net cash used in investing activities

(812,296,834)

22,548,361

(7,191,868)

(40,000)

-

(796,980,341)

(566,409,450)

18,030,000

(61,371,888)

(388,676)

7,459,515

(602,680,499)

	Cash flows from financing activities
	Long term financing - net		199,266,298		260,764,908
	Lease liabilities		(1,940,245)		4,805,886
	Dividend paid		(19,807)		-
	Short term borrowings - net		1,101,602,769		1,564,591,332
	Finance cost paid		(1,664,229,725)		(627,210,492)
	Net cash generated from / (used in) financing activities	(365,320,710)		1,202,951,634
	Net (decrease) / increase in cash and cash equivalents	342,343	(2,820,952)
	Cash and cash equivalents - at beginning of the year	34,613,661	46,905,744
	Cash and cash equivalents - at end of the year	34,956,004	44,084,792
	sd/-	sd/-			sd/-
Kh. Muhammad Ilyas	Kh. Muhammad Younus			Yasir Ghaffar
	Chairman	Director		Chief Financial Officer

07

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