Suhail Jute Mills : Transmission of Quarterly Report for the Period Ended 31-12-2021

SUHAIL JUTE MILLS LIMITED

BRIEF REVIEW

AS AT, AND FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

We are pleased to submit the Condensed Interim Financial Information, along with Notes and the Auditors Review Report, as at, and for the half-year ended 31st December 2021, to the Members of Suhail Jute Mills Limited.

Administrative Expenses as compared with those incurred in the same 6 Month period

last year rose due to increased inflationary pressures. There was no 'other operative

income' for the period and the above results have resulted in a loss per share of Rs.5.53 as compared to a loss per share of Rs 5.28 in the comparable period of last year. The detailed breakdown is reflected in the accompanying condensed financial information, to which please refer.

There were no adverse observations by the auditors, resulting from their review of the Interim Financial Information. The emphasis of matter paragraph reflects factual circumstances as the Company continues to present its accounts on a realizable net assets basis in the absence of revival of commercial production.

In the absence of any funds generated by the Company, all financial requirements are being met from the personal resources of the Chief Executive, who is also the principal shareholder of the Company.

Efforts are continuing to dispose off surplus assets to raise working capital and pay off debts, but such efforts have not materialized as yet. As such, it is not possible to forecast, in any meaningful way, the prospects for the revival of the Company's operations till funding is raised by the sale of assets.

In view of the non-operational status of the Company, no pay-out to shareholders is possible at this time

We thank all stakeholders for their continued support through these difficult times.

BY ORDER OF THE BOARD

SOHAIL FAROOQ SHAIKH

CHIEF EXECUIVE

RAWALPINDI 26 February 2022

SUHAIL JUTE MILLS LIMITED

INDEPENDENT AUDITOR'S REVIEW REPORT

TO THE MEMBERS OF SUHAIL JUTE MILLS LIMITED

Introduction

We have reviewed the accompanying condensed interim statement of financial position of Suhail Jute Mills Limited as at 31 December, 2021 and the related condensed statement of profit or loss, condensed statement of comprehensive income, condensed interim statement of changes in equity, and condensed interim statement of cash flows, and notes to the interim financial statements for the six-months period then ended (here-in-after referred to as the

"interim financial statements"). Management is responsible for the preparation and presentation

of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standards on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditors of the

Entity". A review of interim financial statements consist of making inquiries, primarily of persons

responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Emphasis of matter paragraph

Management has made an assessment of the Company's ability to continue as a going concern

and have concluded that the financial statements as at December 31, 2021 are to be presented on a realizable net assets' basis instead of on a going concern basis.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

The engagement partner on the review resulting in this independent auditor's review report is Mr. Chaudhury Ahmed Habib (FCA).

Place: Islamabad	Crowe Hussain Chaudhury & Co.
Dated: 26 February 2022	Chartered Accountants

SUHAIL JUTE MILLS LIMITED

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDTIED)

AS AT DECEMBER 31, 2021

		Un-Audited		Audited
	Note	31-Dec-21		30-Jun-21
EQUITY AND LIABILITIES		----------PakRupees---------
SHARE CAPITAL AND RESERVES
Authorized Share Capital:
(5,000,000 ordinary shares of Rs.10 each)		50,000,000	50,000,000
Issued, subscribed and paid up capital
(4,332,819 ordinary shares of Rs. 10 each)	4	43,328,190		43,328,190
Reserves	5	(912,175,451)		(889,796,948)
Merger reserve		196,362,085		196,362,085
Surplus on revaluation of property, plant and equipment	6	1,367,349,545		1,368,951,930
		694,864,369		718,845,256
CURRENT LIABILITIES
Staff retirement benefits	7	7,415,743		7,415,743
Trade and other payables	8	202,002,399		195,086,075
Accrued mark-up		54,086,276		54,086,276
Unclaimed dividend		384,359		384,359
Loan from directors		249,966,299		236,149,305
Short term borrowings - secured	9	196,773,149		195,453,810
Provision for taxation	10	-		-
		710,628,225		688,575,567
		1,405,492,594		1,407,420,823
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment	18	1,395,212,209	1,397,075,383
Long term investment	11	190,000	190,000
		1,395,402,209		1,397,265,384
CURRENT ASSETS
Cash and bank balances	12	1,420,683		1,470,407
Advances, deposits, prepayments and other receivables	13	5,672,068		5,687,399
Stores and spare parts	14	1,910,762		1,910,762
Stock in trade	15	824,389		824,389
Long term security deposits	16	262,482		262,482
		10,090,384		10,155,439
		1,405,492,594		1,407,420,823
CONTINGENCIES AND COMMITMENTS	17

The annexed notes from 1 to 28 form an integral part of these financial statements.

CHIEF EXECUTIVE

CHIEF FINANCE OFFICER

DIRECTOR

SUHAIL JUTE MILLS LIMITED

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

FOR THE HALF YEAR ENDED DECEMBER 31, 2021

		Half Year Ended		Quarter Ended
		31-Dec-21		31-Dec-20		31-Dec-21		31-Dec-20
	Note			----------PakRupees---------
Sales		-	-	-	-
Cost of sales		-		-		-		-
Gross profit / (loss)		-	-	-	-
Administrative expenses	19	(19,934,082)	(19,034,130)	(9,766,013)	(9,309,855)
Finance cost	20	(4,046,806)	(3,840,163)	(2,024,301)	(1,915,458)
Other operative income	21	-		10,000		-		-
Loss before taxation		(23,980,887)	(22,864,293)	(11,790,314)	(11,225,313)
Income tax expense	10	-	-	-	-
Loss after taxation
	(23,980,887)	(22,864,293)	(11,790,314)	(11,225,313)
Loss per share - basic and diluted	22
(5.53)	(5.28)	(2.72)	(2.59)
The annexed notes from 1 to 28 form an integral part of these financial statements.

CHIEF EXECUTIVE

CHIEF FINANCE OFFICER

DIRECTOR

SUHAIL JUTE MILLS LIMITED

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE HALF YEAR ENDED DECEMBER 31, 2021

	Six Months Ended		Three Months Ended
	31-Dec-21		31-Dec-20		31-Dec-21		31-Dec-20
			----------PakRupees---------
Loss after taxation	(23,980,887)	(22,864,293)	(11,790,314)	(11,225,313)
Other comprehensive income for the year
Other comprehensive income not to be reclassified to
income and expenditure in subsequent periods
Actuarial gain on re-measurement of staff retirement	-	-	-	-
benefit
Total comprehensive loss for the year
(23,980,887)		(22,864,293)		(11,790,314)		(11,225,313)

The annexed notes from 1 to 28 form an integral part of these financial statements.

CHIEF EXECUTIVE

CHIEF FINANCE OFFICER

DIRECTOR