AMTEX LIMITED
First Quarterly Report
September 30, 2022
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. Jawaria Ahsan | |
Chief Financial Officer | |
Mr. Waheed Aslam | |
Company Secretary | |
Mr. Muhammad Raza Farooq | |
Audit Committee | |
Mr. Suhail Maqsood Ahmed | Chairman |
Mr. Muhammad Ahsan | |
Mrs. Jawaria Ahsan | |
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 period ended September 30, 2022.
Financial Results
The financial results for the period under review with comparative figures of previous period are presented hereunder.
Quarter ended Septmeber 30, | |||
2022 | 2021 | ||
Rupees | Rupees | ||
Sales | 355,356,601 | 284,859,253 | |
Cost of sales | 281,049,180 | 262,241,676 | |
Gross Profit | 74,307,421 | 22,617,577 | |
Profit / (Loss) for the period | 289,765,840 | (24,752,270) | |
Earnings per share - Basic and diluted | 1.12 | (0.10) |
During 1st quarter under review company earned gross profit of Rs.74.30 million as compared to gross profit of Rs. 22.61 million in the corresponding period of last year and net profit of Rs. 289.76 million as compared to net loss of Rs. 24.75 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.355.35 million in three months against sales of Rs. 284.85 million in the corresponding period of last year.
As mentioned in Note 1.3 and Note 3.1.3 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. Gain on auction of land and building and sale of plant and machinery of spinning division amounting to rupees 264.44 million includes in other operating income.
Certain banks / financial institutions have filed a suit against the Company for recovery of its financing and mark up and the Company has not provided any markup / cost of funds on the said outstanding amounts. Based on the legal opinion, the company feels that, after institution of the suit, a financial institution is only entitled to cost of funds if so awarded by the court in case the suit is decided 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
Mixed trend observed at the beginning of FY2022. Challenges of energy shortage, political instability, continually increasing prices of fuel and regularly rising inflation are still major obstacles to sustainable growth. Trade has been adversely affected because of the unreliability and inadequacy of the country's electrical and gas power supply system. Government needs to take immediate steps to resolve the persistent issues of high financial cost, gas and electricity supply otherwise they will continue to hurt the textile industry in Pakistan. Management is well aware of the situation and tried best to maintain the increasing trend of exports volume and to settle litigations with banks in quite favorable manner. Company focuses on key measures as described in Textile and Apparel Policy like capacity building, reduce cost of doing business, DLTL / DDT schemes continuity for exports of value added products. Company plans to take benefits from the aforementioned measures and has set an ambitious export target which will not only support the management to achieve higher profitability but also help to settle the litigations with banks.
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Amtex Ltd. published this content on 31 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2022 04:28:05 UTC.