Salman Noman Enterprises : TRANSMISSION OF QUARTERLY ACCOUNTS FOR THE PERIOD ENDED SEP-23

1st

September 30, 2023

SALMAN NOMAN ENTERPRISES LIMITED

DIRECTORS' REPORT TO THE SHAREHOLDERS

The Directors of your company have the pleasure to submit un- audited accounts for the first quarter ended as on 30th September 2023.

During the period under review the company remains closed its operations due to unavailability of working capital.

The company has incurred a loss of Rs. 6.202 million for the period ended September 30, 2023 as compared to the last year period ended September 30, 2022 loss of Rs. 6.698 million.

The matters with the banking companies are under litigation with the banking companies in the court of law and there are no credit lines available to the company. The management also exploring different options for potential investment to cope with the prevailing crises and the management is very confident that in near future the company will start its operations again.

The directors are thankful to customers for their support and co-

operation to the company.

For & on behalf of the Board

Chief Executive

Director

Lahore,

Dated: October 30, 2023

SALMAN NOMAN ENTERPRISES LIMITED

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)

AS AT 30 SEPTEMBER 2023

				Un-Audited
				30/Sep/2023
	Note			Rupees
EQUITY AND LIABILITIES
Share capital	5	44,670,360
Accumulated loss		(756,241,229)
Surplus on revaluation of property, plant and equipment			271,440,765
		(440,130,104)
Non-current liabilities
Long-term finances from financial institutions	6		68,170,283
Liabilities against assets subject to finance lease	7		-
Long-term finances from related parties	8		182,267,368
Deferred liabilities				4,074,332
Current liabilities			254,511,983
Trade and other payables			445,609,694
Mark-up accrued on borrowings			134,601,511
Short term borrowings	9		178,031,137
Current portion of long-term finances	10		169,271,909
Provision for taxation				10,652,251
			938,166,502
CONTINGENCIES AND COMMITMENTS		-
		752,548,381
ASSETS
Non-current assets
Property, plant and equipment	11		575,795,166
Long-term deposits				16,467,060
Current assets			592,262,226
Stores, spare parts and loose tools			30,453,008
Stock in trade			90,012,572
Trade debts			2,448,541
Trade deposits and prepayments			1,850,000
Balances due from government			35,269,523
Cash and bank balances				252,511
			160,286,155
		752,548,381

The annexed notes form an integral part of this condensed interim financial information.

Audited

30/Jun/2023

Rupees

44,670,360

(752,249,761)

273,652,141

(433,927,260)

68,170,283

-

182,267,368

4,074,332

254,511,983

445,519,694

134,601,511

178,076,137

169,271,909

10,652,251

938,121,502

-

758,706,225

581,953,010

16,467,060

598,420,070

30,453,008

90,012,572

2,448,541

1,850,000

35,269,523

252,511

160,286,155

758,706,225

Lahore:

Dated: October 30, 2023

CHIEF EXECUTIVE OFFICER

DIRECTOR

CHIEF FINANCIAL OFFICER

SALMAN NOMAN ENTERPRISES LIMITED

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE THREE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

Note

Operating expenses

Administrative and selling expenses

Other operating expenses

Finance cost

Loss before taxation

Taxation

Loss after taxation

Quarter ended

30/Sep/2023 30/Sep/2022

Rupees

(45,000) (207,800)

(6,157,844) (6,491,178)

(6,202,844) (6,698,978)

--

(6,202,844) (6,698,978)

--

(6,202,844) (6,698,978)

Total comprehensive loss	(6,202,844)	(6,698,978)
Loss per share - basic and diluted	(1.39)	(1.50)

The annexed notes form an integral part of this condensed interim financial information.

Lahore:

Dated: October 30, 2023

CHIEF EXECUTIVE OFFICER

DIRECTOR

CHIEF FINANCIAL OFFICER

SALMAN NOMAN ENTERPRISES LIMITED

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

FOR THE THREE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

Balance as at 30 June 2022

Total comprehensive income for the year ended 30 June 2022

Loss for the period Incremental depreciation on revaluation of property, plant and equipment for the period (net of deferred taxation)

Balance as at 30 June 2023

Total comprehensive income for the three months period ended 30 September 2023

Loss for the period Incremental depreciation on revaluation of property, plant and equipment for the period (net of deferred taxation)

Balance as at 30 September 2023

		Accumulated	Revaluation		Total
Share capital		surplus on
	loss	Property, plant		Equity
-------------------------	Rupees	and equipment
44,670,360	(735,079,538)		282,976,426	(407,432,752)
-	(26,494,508)		-	(26,494,508)
-	9,324,285		(9,324,285)	-
44,670,360	(752,249,761)		273,652,141	(433,927,260)
					-
-	(6,202,844)		-	(6,202,844)
-	2,211,376		(2,211,376)	-
44,670,360	(756,241,229)		271,440,765	(440,130,104)

The annexed notes form an integral part of this condensed interim financial information.

Lahore:

Dated: October 30, 2023

CHIEF EXECUTIVE OFFICER

DIRECTOR

CHIEF FINANCIAL OFFICER

CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)

FOR THE THREE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

CASH FLOWS FROM OPERATING ACTIVITIES

Loss before taxation

Adjustments for non-cash charges / items: Depreciation of property, plant and equipment Finance cost

Loss before working capital changes

Working capital changes

(Increase) / Decrease in current assets (Decrease) in trade and other payables

Cash used in operations

Net cash used in operating activities

CASH FLOWS FROM FINANCING ACTIVITIES

----- Three months ended -----

30/Sep/2023				30/Sep/2022
Rupees				Rupees
(6,202,844)		(6,698,978)
6,157,844			6,491,178
-					-
6,157,844				6,491,178
(45,000)		(207,800)
-			-
90,000					207,800
90,000			207,800
45,000			-
45,000			-

Procceds from short term finances	(45,000)		-
Net cash in flow from financing activities	(45,000)		-
Net decrease in cash and cash equivalents	-	-
Cash and cash equivalents at beginning of period	252,511		252,511
Cash and cash equivalents at end of period	252,511	252,511

The annexed notes form an integral part of this condensed interim financial information.

Lahore:

Dated: October 30, 2023

CHIEF EXECUTIVE OFFICER

DIRECTOR

CHIEF FINANCIAL OFFICER

SALMAN NOMAN ENTERPRISES LIMITED

SELECTED EXPLANATORY NOTES TO THE CONDENSED INTERIM

FINANCIAL INFORMATION (UN-AUDITED)

FOR THE THREE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

1. STATUS AND ACTIVITIES
2. 1. Salman Noman Enterprises Limited ('the Company') is a public limited company incorporated under the Companies Ordinance, 1984 (now Companies Act, 2017) and listed at Pakistani Stock Exchange (formerly Karachi and Lahore Stock Exchanges). The registered office of the Company is situated at 03 Kilometer Bhai Pheru, Tehsil Chunian, District Kasur. The Company was engaged in manufacturing and sale of yarn. The Company had ceased its operations since February 2018.
   2. Going concern assumption
      The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.
      The Company incurred a net loss for the period ended of Rs. 6,202,844 (Sep 2022: Rs. 6,698,978)
      resulting in accumulated losses at the end of the period of Rs. 756,241,229 (June 2023: Rs. 752,249,761 ). The Company's current liabilities exceed its current assets at reporting date by Rs. 777,880,347 (June 2023: Rs. 777,835,347).
      The Company had ceased its operations since February 2018 due to working capital. However, subsequent to the balance sheet date, the management is taking steps to recommence operations and the Company is in negotiations with financial institutions / sponsors of the Company for borrowing of funds to manage working capital requirements. The Company managed its liquidity constraints largely thru financing from its sponsors. The Company's ability to continue as a going concern is dependent on continued financing from sponsors. Management's effors for obtaining finances from financial institutions are not so far materilized, however, management is confident that efforts will be realized and that the Company will be able to continue as a going concern.
3. STATEMENT OF COMPLIANCE
   This condensed interim financial information is unaudited and has been prepared in accordance with the requirements of the International Accounting Standard 34 - Interim Financial Reporting' issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017 and provisions of and directives issued under the Companies Act, 2017. Where provisions of and directives issued under the Companies Act, 2017 differ from the IAS 34 and IFRSs, the provisions of and directives issued under the Companies Act, 2017 have been followed.
   This condensed interim financial information has, however, been subjected to limited scope review by the auditors, as required by the Code of Corporate Governance, and should be read in conjunction with the audited annual financial statements of the Company for the year ended 30 June 2023.
4. BASIS OF MEASUREMENT
   This condensed interim financail information has been prepared unnder the historical cost convention modified by adjustment of revaluation of certain assets. In this condensed interim financial information, except for the cash flow statements, all the transactions have been accounted for on accrual basis.
5. SIGNIFICANT ACCOUNTING POLICIES
   The accounting policies and method for computation adopted for the preparation of this condensed interim financial information is the same as those appplied in preparation of the financial statements for the year ended June 30, 2022.

Un-Audited		Audited
30/Sep/2023		30/Jun/2023
Rupees		Rupees

5 SHARE CAPITAL Authorized capital

10,000,000 (June 30, 2023: 10,000,000) Ordinary shares of Rs. 10 each

Issued, subscribed and paid-up share capital

4,467,036 (June 30, 2023: 4,467,036) ordinary shares of Rs 10/- each fully paid in cash

6 LONG-TERM FINANCES FROM FINANCIAL INSTITUTIONS Mark-upbearing secured finances from financial institutions

100,000,000 100,000,000

44,670,360 44,670,360

Soneri Bank Limited	78,770,283	78,770,283
National Bank of Pakistan	27,158,199		27,158,199
	105,928,482	105,928,482
Less: Long-term finances transferred to current liabilities	10,600,000	10,600,000
Current Maturity
Overdue portion of long-term finances	27,158,199		27,158,199
	37,758,199	37,758,199
	68,170,283	68,170,283

SALMAN NOMAN ENTERPRISES LIMITED

SELECTED EXPLANATORY NOTES TO THE CONDENSED INTERIM

FINANCIAL INFORMATION (UN-AUDITED)

FOR THE THREE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

1. LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE Present value of minimum lease payments
   Less: Current portion of obligation
2. LONG-TERMFINANCES FROM RELATED PARTIES From related parties - unsecured

Un-Audited	Un-Audited
30/Sep/2023	30/June/2023
Rupees	Rupees
81,855,397		81,855,397
81,855,397		81,855,397
-		-

Loan from related parties

182,267,368

182,267,368

8.1 Loan from related parties

As at June 30, 2015, the management of the Company has entered into agreement with directord and decided repayment terms of unsecured loan (previously repayment of the loan were not determined). According to the agreement, the tenure of loans is fifteen years with grace period of five years. These loans are unsecured and carrying markup of one month Kibor plus 0.5 percent (June 30, 2023: one month Kibor plus 0.5 percent) payable annually from July 1, 2015. The outstanding amount will be repayable in 10 equal annual installments of Rs. 13.868 million each (Starting from June 30, 2021 and ending on June 30, 2030). These includes amount of Rs. 138.683 million (June 30, 2023: Rs. 138.683 million) as subordinated to the loans from banking companies.

		Un-Audited	Audited
		30/Sep/2023	30/Jun/2023
9		Rupees	Rupees
SHORT TERM BORROWINGS
	Secured - from banking companies
	Running finance	151,500,976		151,500,976
	Forced demand draft-Guarantee	17,189,561		17,189,561
		168,690,537		168,690,537
	Unsecured - from related parties
	Borrowings from related parties	9,340,600		9,385,600
		178,031,137		178,076,137
10	CURRENT PORTION OF LONG-TERM FINANCES
	Long-term finances	37,758,199		37,758,199
	Liabilities against assets subject to finance lease	81,855,397		81,855,397
	Long term loans from others	49,658,313		49,658,313
		169,271,909		169,271,909
11	PROPERTY, PLANT AND EQUIPMENT
	Opening WDV	581,953,010		607,917,718
	Less: Depreciation	(6,157,844)		(25,964,708)
	Book value as at period end	575,795,166		581,953,010

1. AUTHORIZATION FOR ISSUE
   These financial statements have been approved by the board of directors of the Company and authorized for issue on October 30, 2023.
2. CORRESPONDING FIGURES
3. 1. Correspondig figures have been re-arranged, wherever necessary to the facilitation of comparison.
   2. Figures have been rounded off to the nearest of rupees.

Lahore:

Dated: October 30, 2023

CHIEF EXECUTIVE OFFICER

DIRECTOR

CHIEF FINANCIAL OFFICER