AMTEX LIMITED
Third Quarterly Report
March 31, 2023
A M T E X
CONTENTS
COMPANY INFORMATION
DIRECTOR'S REPORT
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION CONDENSED INTERIM STATEMENT OF PROFIT & LOSS ACCOUNT CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME CONDENSED INTERIM CASH FLOW STATEMENT
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY NOTES TO THE CONDNSED INTERIM FINANCIAL STATEMENTS
Company Information
Board of Directors | |
Mr. Muhammad Ahsan | Chairman |
Mr. Khurram Iftikhar | Chief Executive Officer |
Mr. Shahzad Iftikhar | |
Mr. Nadeem Iftikhar | |
Mr. Suhail Maqsood Ahmed | |
Mr. Gul Muhammad Naz | |
Mrs.Bushra Bibi | |
Chief Financial Officer | |
Mr. Waheed Aslam | |
Company Secretary | |
Mr. Muhammad Raza Farooq | |
Audit Committee | |
Mr. Suhail Maqsood Ahmed | Chairman |
Mr. Muhammad Ahsan | |
Mrs.Bushra Bibi | |
Human Resource & Remuneration Committee | |
Mr. Gul Muhammad Naz | Chairman |
Mr. Suhail Maqsood Ahmed | |
Shahzad Iftikhar | |
Auditors | |
Zahid Jamil & Co. | |
Chartered Accountants | |
Legal Advisor | |
Mr. Aamir Nawaz Bhatti | |
Advocate High Court |
Share Registrar Office
Vision Consulting Limited
3-C, LDA Flats, Lawrance Road, Lahore
Registered Office
P-225 Tikka Gali # 2 Montgomery Bazar, Faisalabad
Projects Locations
Punj Pullian Daewoo Road Faisalabad | Processing & Stitching Unit |
Website
www.amtextile.com
DIRECTORS' REPORT
The Board of Directors of Amtex Limited presents herewith the Directors' Report together with the Company's un-audited financial information for the half year ended March 31, 2023.
Financial Results
The financial results for the period under review with comparative figures of previous period are presented hereunder.
QUARTER ENDED | PERIOD ENDED | |||||
MARCH 31 | MARCH 31 | |||||
2023 | 2022 | 2023 | 2022 | |||
RUPEES | RUPEES | RUPEES | RUPEES | |||
Sales | 430,619,016 | 265,118,286 | 1,109,687,252 | 849,158,513 | ||
Cost of sales | 428,170,998 | 219,881,706 | 988,709,112 | 756,527,777 | ||
Gross profit | 2,448,018 | 45,236,580 | 120,978,140 | 92,630,736 | ||
Other income | 5,832,000 | 5,796,000 | 282,719,540 | 32,255,171 | ||
Net Profit / (loss) for the period | (37,522,340) | (1,654,424) | 222,239,452 | (36,019,050) | ||
Earnings per share - Basic and diluted | (0.14) | (0.01) | 0.86 | (0.14) |
During 1st nine months under review company earned gross profit of Rs.120.97 million as compared to gross profit of Rs.92.63 million in the corresponding period of last year and net profit of Rs.222.23 million as compared to net loss of Rs.36.01 million in the corresponding period of last year. Sales volume has also increased as compared to previous corresponding period and the company's total sales are Rs.1,109.68 million in nine months against sales of Rs. 849.15 million in the corresponding period of last year.
As mentioned in Note 1.3 of these condensed interim financial statements that The Court Auctioneers in Execution Application filed by the Bank of Punjab auctioned the Company's Spinning Division's Land and Building at Rs.490 million. During the pendency of the execution petition, the Decree Holder bank, the Company as well as other first charge holder banks/financial institutions reached a negotiated deal and agreed to withdraw objection petitions on auction of land and building and also agreed for sale of Spinning Division's machinery to the Auction Purchaser (M/S Beacon Impex Private Limited) for Rs.315 million. Resultantly, the honorable court confirmed the auction and ordered for distribution of sale proceeds of Rs.490 million amongst first charge holder banks/financial institutions in proportion to the value of their charge. The entire sale proceeds of Land, Building and Machinery of Rs.805 million have been adjusted against the loans of the Company by the relevant banks / financial institutions. Other operating income of rupees
282.71 million includes an amount of Rs.265.22 million gain on disposal of land, building and machinery of Company's Spinning Division.
Certain banks / financial institutions have filed suit against the Company for recovery of its financing and mark up, therefore Company has not provided any markup / cost of funds on the outstanding amount as also stated in notes to the accounts. Based on the legal opinion, the Company feels that, after institution of the suit, bank/financial institution is only entitled to cost of funds if so awarded by the Court in case the suit is awarded against the company. The levy of cost of funds and the quantum thereof shall be contingent on passing of the decree and rate prescribed by the State Bank of Pakistan during the period of pendency of the claim and discharge of decree, if passed by the Court.
Future outlook
Continuous increase in energy tariffs, slowdown in global economies and decline in cotton production are key challenges the textile sector could face going ahead. Though, weakness in PKR would provide some cushion. We expect the textile industry to remain in turmoil as gas crisis has started to surface again. However, power blackouts in addition to the current macroeconomic conditions along with mini budget remain a challenge for the industry. Textile sector has begun to losing the orders. Despite this Company's management is doing its utmost effort to comply with export orders and becomes successful to increase the export volume in nine months under review. Further to regularize bank loans and to settle the litigations with banks, negotiations with them are at advance stage.
Acknowledgement
The Directors of your Company would like to place on record their deep appreciation for the support of the customers, banks, financial institutions, regulators and shareholders and hope that this cooperation and support will also continue in future.
The Directors of your Company would also like to express their appreciation for the services, loyalty and efforts being continuously rendered by the executives, staff members and workers of the Company and hope that they will continue to do so in future.
For and on behalf of the Board
KHURRAM IFTIKHAR | SHAHZAD IFTIKHAR |
Faisalabad
April 29, 2023
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Amtex Ltd. published this content on 02 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2023 10:32:32 UTC.