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CONTENTS CONTENTS
Corporate Information
Directors’ Report
Condensed Interim Balance Sheet
Condensed Interim Profit & Loss Account
Condensed Interim Statement of Comprehensive Income
Condensed Interim Statement of Cash Flow
Condensed Interim Statement of Changes in Equity
Selected Notes to the Condensed Interim Financial information
02
03
10
11
12
13
14
DIN GROUP
09
2
Board of Directors
CORPORATE INFORMATION
Company SecretaryMr. Islam Ahmed
Chief Financial OfficerMr. Shaukat Hussain Ch.
AuditorsNaveed Zafar Ashfaq Jaffery & Co.Chartered Accountants
Registered OfficeDin House, 35-A/1, Lalazar Area,
Opp: Beach Luxury Hotel, M. T. Khan Road, Karachi.
Mills
Websitewww.dingroup.com
Ba
nk
er
s
(ACA, CPFA, FPFA, CFC )
Chairman Director Chief Executive Director Director Director Director
Audit Commi�ee
Human Resource and Remunera�on Commi�ee
Shaikh Mohammad Pervez Shaikh Muhammad Tanveer Mr. Abdul Razzak
Chairman Member Member
Chairman Member Member
Shaikh Mohammad Muneer Shaikh Mohammad Pervez Shaikh Muhammad Tanveer Shaikh Mohammad Naveed Mr. Fawad Jawed Mr. Farhad Shaikh Mohammad Mr. Abdul Razzak
Mr. Abdul Razzak Shaikh Mohammad Pervez Mr. Farhad Shaikh Mohammad
Unit-I and II: Kot Akbar Khan, 70 Km Multan Road, Tehsil Pattoki, District Kasur, Punjab. Unit-III: Revenue Estate, Bhai Kot, Tablighi Chowk, Raiwind Road, Tehsil and Distt. Lahore - Punjab. Unit-IV: Dars Road,off Raiwind Manga Road, Bachuki Majha Distt.Kasur.
Allied Bank Ltd.
Bank Alfalah Limited Islamic
Bank Al-Habib Ltd.
Dubai Islamic Bank Pakistan Ltd.
Faysal Bank Ltd.
Habib Bank Ltd.
Habib Metropolitan Bank Ltd.
MCB Bank Ltd.
Meezan Bank Ltd.
National Bank of Pakistan
Standard Chartered Bank (Pakistan) Ltd.
The Bank of Punjab
3
Dear shareholders
Financial Results
DIRECTORS’ REPORT
General Market Conditions
31-Mar-16 Inc. / (Dec.) % age
Rupees in ‘000’Rupees in ‘000’Rupees in ‘000’Rupees in ‘000’PercentagePercentageRupees
Nine Months Ended
31-Mar-15
Sales Gross Profit Pre-tax Profit / (Loss) After Tax Profit / (Loss) Gross Profit After Tax Profit / (Loss) Earning / (Loss) per share
Pakistan has the inherent advantage of being the 4th largest producer of cotton in the world with a huge potential to further increase crop yield. The domestic availability of basic raw material is considered to be an added advantage for the success of any export led industry. In this context, Pakistan ranks as 3rd in the world in the field of yarn production. Pakistan is amongst the largest producers of cotton, with large spinning capacity in Asia. In fact Pakistan contributes 5% to the global spinning capacity after China and India. China and India are producing both cotton and MMF yarns and fabrics at comparatively lower energy cost. On the other hand, the textile industry in Pakistan is facing the highest energy cost in the region. One of the key issues which are affecting the economy of our country adversely is the terrorism and the lack of international investment. In fact terrorism is the main cause which has destructed the economy as due to fear of terrorism the international investors are avoiding any further investment in Pakistan even they are pulling those previous investment back, as Pakistan is a country who is fighting against terrorism so paying the cost for it. The national industries are also in horrible condition as the energy crises has also forced thousands of industries to shut down and the one who are
The Board of directors take great privilege to present the un-audited financial statements of the company along with observation on the performance of the company for the 3rd quarter ended March 31,2016. These statements have been prepared in compliance with IAS-34 and are being submitted under section 245 of The Companies Ordinance 1984.
During the 3rd quarter ended under review, your company has shown upward trend as compare to previous 3rd quarter ended:
5,740,374 493,265 165,263 100,196
8.59 1.75 4.47
6,610,072 292,445 (174,866) (275,435)
4.42 (4.17) (12.28)
(13) 69 195 136
The financial performance of the company during the 3rd quarter ended are shown upward although factors involve in shape of interrupted of power and gas. Competitive cotton prices and better marketing factors by the directors and all staff members have borne fruit.
4
still fighting against it are faced for downsizing and against it leaves thousand of people either unemployment or forced to leave their jobs.
The overall economic situation of Pakistan is under severe pressure like energy crises, heavy rain fall ,floods, continued economic, volatility, accelerating inflationary and the on going security law and order situation. Absence of exclusive areas dedicated to textiles production, energy has emerged as a major issue especially in the Punjab where approximately 65% of the industrial units are located. Skilled manpower is also significantly deficient with the result that the sector is suffering from low per capita productivity. The physical and institutional infrastructure, especially at sea and dry ports, requires revamping and reform. Likewise, numerous parallel and overlapping regulations add to management and production costs.
Chinese policies remain the biggest factor influencing international cotton prices. The Chinese government has procured up to 88% of this year’s production for the state cotton reserve, while Chinese cotton ending inventory is expected to increase to 42.6mn bales (125% of current year production) by the end of the current marketing year. The purchase of cotton for the Chinese state reserve has reduced the availability of cotton in the open market, where it was expected that Chinese textile mills would meet cotton requirements from government stockpiles. However, cotton made available through auction from the stockpiles was of low quality, where higher quality int’l cotton was available at roughly the same price. This drove demand for cotton imports by Chinese textile mills. In the absence of higher quality cotton being made available from the state reserves demand for int’l cotton is likely to continue supporting cotton prices. However, we could see a change in this dynamic if the Chinese Government starts making higher quality cotton available. The company will continue in streamlining our operation and further strengthen our focus on the positively enhancing the quality of life of the people of Pakistan through our people, product and planet and creating shared valued activities. Despite the challenges being faced on the country your company management is well aware of the challenges that are ahead and focusing on value added products to deal with the ongoing crises and will be making all efforts to ensure continue growth ,operational efficiency and optimal results for the company and its valued stakeholders in the days to come. We pray to God that all Muslims around the world especially Pakistani will be safe from any unsharpened seen in form of Terrorism, natural disaster , political issues etc. and Pakistan is now its path to progress. We will get benefit of all up coming project from road to energy and Insha Allah Pakistan will be achieved their goals in coming years.
The Board of directors would like to place on record their appreciation to the all our stakeholders for the loyalty they have shown us during these difficult times. We
Acknowledgment
Future Outlook
5
Karachi:
Dated :April 23, 2016
On behalf of the Board of Directors
SHAIKH MUHAMMAD TANVEER
Chief Executive
acknowledge the cooperation, support and loyalty of our employee, banks, shareholders, various governments bodies and board of directors. The company looks toward your continuous support as always to help us navigate through difficult economic conditions both locally and internationally.
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DIN TEXTILE MILLS LTD.
ACCOUNTS Financial Statements (Un-Audited)
3rd Quarter Ended March 31, 2016
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9
(Amounts in Thousand)
Note 31-Mar-16 30-Jun-15
Rupees Rupees
The annexed notes form an integral part of these condensed interim financial information.
5
7
6
NON CURRENT ASSETS
Property, plant and equipment
Long term deposits
Deferred tax assets
CURRENT ASSETS
Stores, spare parts and loose tools
Stock in trade
Trade debts
Loans and advances
Trade deposits and short term prepayments
Other receivables
CURRENT LIABILITIES
Trade and other payables
Accrued mark up / interest
Short term borrowings
Current portion of
Long term financing from banking companies - secured
Liabilities against assets subject to finance lease
WORKING CAPITAL
TOTAL CAPITAL EMPLOYED
NON CURRENT LIABILITIES
Long term financing from banking companies - secured Liabilities against assets subject to finance lease Deferred liabilities Staff retirement benefits - gratuity
CONTINGENCIES AND COMMITMENTS
Net Worth
Authorized capital
Net Worth Represented by: Issued, subscribed and paid up capital
Reserves
Condensed Interim Balance Sheet (Un-Audited) as at March 31, 2016
Karachi:Dated : April 23, 2016
SHAIKH MOHAMMAD MUNEER SHAIKH MUHAMMAD TANVEERChief Executive Chairman
EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES
8
Audited
77,100,000 ordinary shares of Rs. 10/- each
22,421,688 ordinary shares of Rs. 10/- each
Un-Audited
Tax refunds due from the Government
Cash and bank balances
771,000
2,651,988
14,965
76,947
2,743,900
262,740
1,489,054
914,777
162,923
1,644
52,499
502,240
33,507
3,419,384
2,807,113
69,601
229,057
431,809
3,343
3,540,923
(121,539)
2,622,361
695,319 3,043
102,172
800,534
1,821,827
771,000
224,217
1,597,610
1,821,827
2,611,547
14,943
102,944
2,729,434
224,443
1,166,746
866,157
34,648
1,540
38,309
480,752
36,720
2,849,315
1,554,288
39,760
963,952
322,464
4,166
2,884,630
(35,315)
2,694,119
865,601 2,805
104,081
972,487
1,721,632
224,217
1,497,415
1,721,632
10
(Amounts in Thousand except earning / (loss) per share)
31-Mar-16 Rupees
Condensed Interim Profit and Loss Account (Un-audited) For the quarter and 3rd quarter ended March 31, 2016
Nine Months Ended Quarter Ended
Note
9
31-Mar-15 Rupees
31-Mar-15 Rupees
31-Mar-16 Rupees
Sales
Cost of sales
Gross Profit
Distribution cost
Administrative expenses
Other operating expenses
Finance cost
Other operating income
Profit / (Loss) before taxation
Provision for taxation
Profit / (Loss) for the period
Earning / (Loss) per share-basic and diluted-Rupee per share
5,740,374
(5,247,109)
493,265
(41,755)
(94,609)
(8,870)
(182,808)
(328,042)
165,223
40
165,263
(65,067)
100,196
4.47
6,610,072
(6,317,627)
292,445
(71,246)
(103,319)
(107)
(293,984)
(468,656)
(176,211)
1,345
(174,866)
(100,569)
(275,435)
(12.28)
2,048,256
(1,849,682)
198,574
(14,363)
(31,170)
(4,003)
(72,976)
(122,512)
76,062
2
76,064
(35,708)
40,356
1.80
1,964,505
(1,887,353)
77,152
(21,733)
(35,942)
11
(93,622)
(151,286)
(74,134)
(334)
(74,468)
(2,778)
(77,246)
(3.45)
The annexed notes form an integral part of these condensed interim financial information.
Karachi:Dated : April 23, 2016
SHAIKH MOHAMMAD MUNEER SHAIKH MUHAMMAD TANVEERChief Executive Chairman
11
(Amounts in Thousand)
Condensed Interim Statement of Comprehensive Income (Un-Audited) For the quarter and 3rd quarter ended March 31, 2016
31-Mar-16 Rupees
Nine Months Ended Quarter Ended
31-Mar-15 Rupees
31-Mar-15 Rupees
31-Mar-16 Rupees
Profit / (Loss) for the period
Items that will be subsequently reclassified to profit and loss account
Available for sale investments
Unrealized gain on remeasurement of available for sale investments
Reclassification adjustments relating to gain realized on disposal of available for sale investments
Total comprehensive Income / (Loss) for the period
100,196
100,196
-
-
-
(275,435)
2
(14)
(12)
(275,447)
- -
- -
- -
40,356
40,356
(77,246)
(77,246)
The annexed notes form an integral part of these condensed interim financial information.
Karachi:Dated : April 23, 2016
SHAIKH MOHAMMAD MUNEER SHAIKH MUHAMMAD TANVEERChief Executive Chairman
31-Mar-16 Rupees
(Amounts in Thousand)
Rupees
Condensed Interim Cash Flow Statement (Un-Audited) for the 3rd quarter ended March 31, 2016
12
31-Mar-15
CASH FLOWS FROM OPERATING ACTIVITIES
Profit / (Loss) before taxation
Adjustments for
Depreciation
Staff retirement benefits - gratuity
Workers' profit participation fund
Finance cost
Profit before working capital changes
(Increase) / Decrease in current assets
Stores, spare parts and loose tools
Stock in trade Trade debts Loans and advances Trade deposits and short term prepayments
Other receivables Other financial assets
Increase / (Decrease) in current liabilities
Trade and other payables
Cash generated from operations
Finance cost paid
Taxes paid
Dividend paid
Workers' profit participation fund paid
Staff retirement benefits - gratuity paid
Net cash generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment
Fixed capital expenditure
Long term deposits
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Long term financing
Liabilities against assets subject to finance lease
Net cash (used in) / generated from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
CASH AND CASH EQUIVALENTS
Cash and bank balances
Short term borrowings
(Gain) on disposal of available for sale investments
Loss / (Gain) on disposal of property, plant and equipment
165,263
195,726
31,230
8,698
182,808 -
139
418,601
583,864
(38,297) (322,308)
(48,620) (128,275)
-
(14,190) -
(551,690)
1,242,900
1,275,074
(152,966)
(58,967)
(365) -
(33,139)
1,029,637
2,870
(239,177)
(126)
(236,433)
(60,937)
(585)
(61,522)
731,682
(927,232)
(195,550)
33,507
(229,057)
(195,550)
(174,866)
175,561
28,569
-
293,984 (36)
(714)
497,364
322,498
151,183 (67,836)
270,102 (4,796)
4,229
(451)
108
352,539
(15,557)
659,480
(259,191)
(153,519)
(86)
(661)
(41,779)
204,244
1,651
(171,820)
3,485
(166,684)
243,525
(18,001)
225,524
263,084
(686,833)
(423,749)
6,944
(430,693)
(423,749)
The annexed notes form an integral part of these condensed interim financial information.
Karachi:Dated : April 23, 2016
SHAIKH MOHAMMAD MUNEER SHAIKH MUHAMMAD TANVEERChief Executive Chairman
13
(Amounts in Thousand)
ParticularsUnappropriated
profit
Sub total
General
Total
Rupees
Share capital
Condensed Interim Statement of Changes in Equity (Un-Audited)
for the 3rd quarter ended March 31, 2016
Balance as at July 01, 2014
Total comprehensive loss for the
3rd quarter ended March 31, 2015
Balance as at March 31, 2015
Balance as at July 01, 2015
Total comprehensive Income for the
3rd quarter ended March 31, 2016
Balance as at March 31, 2016
Revenue
Reserves
1,281,230
(275,447)
1,005,783
1,097,414
100,196
1,197,610
224,217
-
224,217
224,217
-
224,217
400,000
-
400,000
400,000
400,000
1,681,230
(275,447)
1,405,783
1,497,414
100,196
1,597,610
1,905,447
(275,447)
1,630,000
1,721,631
100,196
1,821,827
The annexed notes form an integral part of these condensed interim financial information.
Karachi:Dated : April 23, 2016
SHAIKH MOHAMMAD MUNEER SHAIKH MUHAMMAD TANVEERChief Executive Chairman
-
Selected Notes to the Condense Interim Financial Information (Un-Audited) for the 3rd quarter ended March 31, 2016
LEGAL STATUS AND NATURE OF BUSINESS The company is limited by shares, incorporated in Pakistan on June 13, 1988 and were previously quoted on stock exchanges at Karachi and Lahore. However, due to integration of these stock exchanges into Pakistan Stock Exchange effective January 11, 2016, the shares of the company are now quoted on Pakistan Stock Exchange. The registered office of the company is situated at 35-A/1, Lalazar area, opposite Beach Luxury Hotel, M. T. Khan road, Karachi in the province of Sind, Pakistan.
The principal business of the company is to manufacture and sale of yarn. The manufacturing units are located at Pattoki and Raiwind in the province of Punjab.
BASIS OF PREPARATION Statement of compliance
This condensed interim financial information is un-audited and has been prepared in accordance with the requirements of the International Financial Reporting Standard (IFRS) IAS 34 "Interim Financial Reporting" as applicable in Pakistan. This condensed interim financial information does not include all of the information and disclosures required for annual financial statements, and should be read in conjunction with the financial statements of the company as at and for the year ended June 30, 2015.
These condensed interim financial information are being submitted to the shareholders as required by the Listing regulations of Karachi and Lahore Stock Exchange and section 245 of the Companies Ordinance, 1984.
These condensed interim financial statements comprise of condensed interim balance sheet, condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim cash flow statement and condensed interim statement of changes in equity together with the selected notes for the 3rd Quarter ended March 31, 2016 which have not been audited. These condensed interim financial statements also include condensed interim profit and loss, condensed interim statement of other comprehensive income for the quarter ended March 31, 2016.
SIGNIFICANT ACCOUNTING POLICIES
Accounting policies and methods of computation which have been used in the preparation of these condensed interim financial information are the same as those applied in preparation of the financial statements for the preceding year ended June 30, 2015.
1
1.1
1.2
2
2.1
14
3
3.1
15
3.2
4
31-Mar-16 30-Jun-15
4.1
(Un-Audited) (Audited)
PROPERTY, PLANT AND EQUIPMENT 5
Operating assets
Capital work in progress - at cost
5.1
5.2
-----------Rupees in '000'-----------
Amendments to certain existing standards and new interpretations on approved accounting standards effective during the period either were not relevant to the company's operations or did not have any impact on the accounting policies of the company.
ACCOUNTING ESTIMATES, JUDGEMENTS AND FINANCIAL RISK MANAGEMENT
The preparation of these condensed interim financial information in conformity with approved accounting standards requires management to make estimates, assumptions and use judgements that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgements are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting estimates are recognized prospectively commencing from the period of revision.
Judgements and estimates made by management in the preparation of these condensed interim financial information are the same as those that were applied to the financial statements as at and for the year ended June 30, 2015.
The Company's financial risk management objectives and policies are consistent with those disclosed in the financial statements as at and for the year ended June 30, 2015.
4.2
2,641,625
10,363
2,651,988
2,603,759
7,788
2,611,547
Note
16
STOCK IN TRADE
Finished goods amounting to Rs. 88.167 million (June 30, 2015 : Rs. 53.115 million) stated at their net realizable value aggregating Rs.83.924 million (June 30, 2015 : Rs. 49.119 million). The amount charged to profit and loss in respect of stocks written down to their net realizable value is Rs. 4.243 million (June 30, 2015 : Rs. 3.996 million).
CONTINGENCIES AND COMMITMENTS
There has been no significant change in the contingencies and commitments since the last audited financial statements except as disclosed in note 7.1, 7.2 and 7.3 respectively.
The Company has issued post dated cheques amounting to Rs. 143.61 million (June 30, 2015: Rs. 94.95 million) in favor of Collector of Customs in lieu of
6
6.1
7
7.1
5.1
31-Mar-16 31-Mar-15Acquisition Disposal
Cost-----------Rupees in '000'-----------
Acquisition DisposalCost
-----------Rupees in '000'-----------
The cost of additions and deletions to property, plant and equipment during the 3rd quarter ended were as follows.
Owned Assets
Plant and machinery
Electric installation
Tools and equipment
Furniture and fixture
Office equipment
Computers
Vehicles
Leased Assets
Vehicles
5.2 CAPITAL WORK IN PROGRESS (Un-audited) (Audited)
31-Mar-16
30-Jun-15-------------Rupees in’000’------------
Building
Plant and machinery
Electric Installation
222,543
10,188
-
843
331
400
64
2,233
236,602
3,650
-
-
467
-
-
2,934
-
7,051
94,327
406
25
780
-
194
2,654
-
98,386
675
-
-
-
-
1,270
3,321
-
5,266
219
847
9,297
10,363
-
-
7,788
7,788
17
custom levies against various statutory notification. The indemnity bonds furnished by the company are likely to be released after the fulfillment of term of related SROs.
8 ISSUED, SUBSCRIBED AND PAID UP CAPITAL
7.2
7.3
Contingencies
Bills discounted with recourse
Bank guarantees issued in ordinary course of business
Commitments
Letters of credit for capital expenditure
Letter of credit for raw material
Letter of credit for stores and spares
-------------Rupees in’000’------------
(Un-audited) (Audited)
31-Mar-16 30-Jun-15
-------------Rupees in’000’------------
(Un-audited) (Audited)
31-Mar-16 30-Jun-15 Number of Shares
31-Mar-16 30-Jun-15
124,864
148,911
97,374
61,332
72,842
13,479,600
1,962,334
6,979,754
22,421,688
Ordinary shares of Rs. 10 each allotted for consideration paid in cash
Ordinary shares of Rs. 10 each allotted for consideration of amalgamation of power plant
Ordinary shares of Rs. 10 each allotted as fully paid bonus shares
13,479,600
1,962,334
6,979,754
22,421,688
134,796
19,623
69,798
224,217
134,796
19,623
69,798
224,217
Associated company (Din Leather (Pvt.) Limited) held 7,260 (June 30, 2014 : 7,260) ordinary shares of the company. The shareholders' are entitled to receive all distributions to them including dividend and other entitlements in the form of bonus and right shares as and when declared by the company. All shares carry "one vote" per share withoutrestriction.
8.1
8.2
346,177
168,911
343,691
90,637
10,655
224,217
18
9
9.1
10
Nine Months ended Quarter ended
EARNING / (LOSS) PER SHARE-BASIC AND DILUTE-RUPEE PER SHARE
Profit / (Loss)for the period
Weighted average number of ordinary shares outstanding during the period
Earning / (Loss) per share - basic and diluted - Rupee per share
There is no dilutive effect on the basic earning per share of the company.
(Un-audited)
-------------Rupees in’000’------------
(Un-audited)
Transactions with related parties
MCB Bank Limited
Deposits
Withdrawals
Din Farm Product (Pvt) Limited
Relationship
Associated company
Associated company
31-Mar-16
Salaries and other employees benefits
Staff retirement benefits
Key management personnel
Key management personnel
31-Mar-15 Rupees
31-Mar-16 Rupees
31-Mar-16 Rupees
31-Mar-15 Rupees
31-Mar-15
TRANSACTIONS WITH RELATED PARTIES
Din Leather (Pvt) Limited
Associated company
Reimbursment of Expenses
---------------------Rupees in’000’---------------------
100,196
22,421,688
4.47
(275,435)
22,421,688
(12.28)
40,356
22,421,688
1.80
(77,246)
22,421,688
(3.45)
Din Industries Ltd.
Reimbursment of Expenses
Sale of Fixed
Reimbursment of Expenses
12 253
329
1,018
307
467
84,156
5,705
247,778 269,209
30
1,128
-
57,958
2,692
-
Associated company
19
(Un-audited) (Audited)
-------------Rupees in’000’------------
31-Mar-16 30-Jun-15
Balances outstanding at the period end
11 DATE OF AUTHORIZATION FOR ISSUE
These condensed interim financial information have been authorized for issue on April 23, 2016 by the board of directors of the company.
GENERAL
Figures have been rounded off to the nearest thousand rupees.
12
Karachi:Dated : April 23, 2016
SHAIKH MOHAMMAD MUNEER SHAIKH MUHAMMAD TANVEERChief Executive Chairman
MCB Bank Limited Din Farm Products (Pvt) Ltd . Din Industries Ltd .
984 - 196
1,254 - -
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