Bannu Woollen Mills : Transmission of Quarterly Report for the Period Ended 31-03-2024

Nine Months Accounts Period Ended March 31, 2024

BIBOJEE GROUP

BANNU WOOLLEN MILLS LIMITED

CONTENTS

Company's Profile

Directors' Report (English & )

Condensed Interim Statement of

Financial Position

Condensed Interim Statement of

Profit or Loss & Other Comprehensive Income

Condensed Interim Statement of

Cash Flows

Condensed Interim Statement of

Changes in Equity

Notes to the Condensed Interim

Financial Information

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2-5

6

7

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10-14

BANNU WOOLLEN MILLS LIMITED

COMPANY'S PROFILE AS AT 31-03-2024

Board of Directors	Mr. Ahmad Kuli Khan Khattak	Chairman
	Mrs. Shahnaz Sajjad Ahmad	Chief Executive
	Lt. Gen. (Retd.) Ali Kuli Khan Khattak
	Dr. Shahin Kuli Khan Khattak
	Syed Zubair Ahmed Shah
	Mr. Abdul Rehman Qureshi (Independent)
	Brig(R.) Agha Arshad Raza (Independent)
Audit Committee	Mr. Abdul Rehman Qureshi	Chairman
	Syed Zubair Ahmad Shah	Member
	Brig(R.) Agha Arshad Raza	Member
Human Resource &	Mr. Abdul Rehman Qureshi	Chairman
Remuneration Committee	Lt. Gen. (Retd.) Ali Kuli Khan Khattak	Member
	Mr. Ahmad Kuli Khan Khattak	Member
	Mrs. Shahnaz Sajjad Ahmad	Member
	Syed Zubair Ahmed Shah	Member
	Brig(R.) Agha Arshad Raza	Member
Chief Operating Officer (COO)	Mr. Khalid Kuli Khan Khattak
Chief Financial Officer	Mr. Kalim Aslam
Company Secretary	Mr. Azmat Khan
Head of Internal Audit	Mr. Salman Khan - ACA
Auditors	M/S. ShineWing Hameed Chaudhri & Co
	Chartered Accountants
Bankers	National Bank of Pakistan
	Bank Alfalah Ltd.
Legal Adviser	M/S Hassan & Hassan, Advocates
	Paaf Building, 1-D, Kashmir/ Egerton Road, Lahore
Tax Consultant	M. Nawaz Khan & Co
	1-Ground Floor, Farrah Centre, 2 Mozang Road, Lahore
Registrars & Shares	Vision Consulting Limited.
Registration Office	5-C, LDA Flats, First Floor,Lawrance Road,
	Lahore.
	Tel: [phone], Fax: [phone]
	E-Mail: [e-mail]
Registered Office	Bannu Woollen Mills Ltd
	D.I.Khan Road, Bannu
	Tel. [phone], 662273, 613250
	E-Mail [e-mail]
	Web Site: www.bwm.com.pk
Mills	D.I.Khan Road, Bannu
	Tel. [phone], 662273, 613250
	E-Mail [e-mail]
	Web Site: www.bwm.com.pk

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BANNU WOOLLEN MILLS LIMITED

On behalf of the Board of Directors of Bannu Woollen Mills Limited, we are pleased to present the un-audited condensed interim financial information of the Company for the third quarter and nine months period ended March 31, 2024.

FINANCIAL PERFORMANCE

During the third quarter, the Company's net sales were Rs. 66 million i.e. decrease of 21% as compared to the same period of last year and cost of sales decreased by 35% as compared to the same period of last year. Due to decrease in cost of sales the gross profit has increased by Rs. 11 million over the corresponding quarter of last year. Distribution, administrative, other expenses and finance cost increased by 8% over the corresponding quarter of last year mainly due to increase in markup on short term finances. The Company's net loss before tax was Rs. 43.197 million during the third quarter as compared to net loss before tax of Rs. 49.872 million over the corresponding quarter of last year. This resulted into loss per share of Rs. (3.89) as against loss per share of Rs. (3.96) of the corresponding quarter of last year.

The financial results for the nine months period under review are summarised below:

FINANCIAL RESULTS

	Quarter ended	Nine months period ended
	Mar.31,	Mar.31,	Mar. 31,	Mar. 31, 2023
	2024	2023	2024
	----------------------	Rupees in thousand	----------------
Sales - net	66,076	84,071	836,070	946,309
Gross profit	11,785	739	203,208	227,360
(Loss)/ profit from operations	(25,117)	(37,546)	79,025	106,656
(Loss) / profit before taxation	(43,197)	(49,872)	333,421	54,288
(Loss) / profit after taxation	(36,937)	(37,676)	309,408	14,225
(Loss) / earnings per share	(3.89)	(3.96)	32.55	1.50

During the period under review, the Company's net turnover decreased by Rs. 110.239 million and experienced 12% decline as compared to the corresponding period of last year. The decreased net turnover of the Company is due to a combination of factors. Rising inflation has squeezed customer spending power, leading to lower demand for our products. Additionally, key dealers have reduced their order volume in response to these market conditions.

During the period under review the Company has earned a net profit after taxation of Rs. 309.408 million after incorporation of share of loss and impairment loss reversal of Associated Company as compared to profit after taxation of Rs. 54.288 million of the corresponding period. The profit before these adjustments for the period amounts to Rs. 10.098 million as compared to profit of Rs. 60.130 million of the corresponding period. The gross profit as a percentage of sales slightly increased to 24.31% from 24.03% as compare to corresponding period of the last year due to decrease in cost of sales.

The massive increase in EPS is mainly due to impairment loss reversal from Associated Company.

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BANNU WOOLLEN MILLS LIMITED

Rising interest rates have also put a damper on the company's performance. The Company's finance cost amounting Rs. 68.927 million as against Rs. 46.526 million in the corresponding period of last year.

The Company achieved greasy production of 818,709 meters of fabric as compared to 1,094,857 meters of corresponding period of last year. The production decline can be attributed to temporary shutdowns during the current financial year. These shutdowns occurred from July 2nd to July 15th, 2023 (2 weeks) and from march 13th, 2024 to April 14th, 2024 (5 weeks), impacting specifically the period ended on march 31st, 2024 (which includes 2 weeks of shutdown), consequent upon reduction in anticipated orders from the mills dealers for the financial year 2024-2025.

FUTURE OUTLOOK

Pakistan's economy is being squeezed by declining reserves, a weak currency, import curbs, inflation, floods, policy shifts, and slowing global and domestic demand, leading to rising production costs, lower business profits, and forecasts of slower industrial growth.

The new government is expected to prioritize securing a program with the International Monetary Fund (IMF). This, along with how inflation is controlled, will be on inflation trajectory, which can determine the timing and pace of expected economic revival.

Despite acknowledging the challenges we face, including external factors beyond our control, we remain committed to taking action by focusing on reducing operational costs and boosting sales volume to ensure the company's continued success.

ACKNOWLGEMENT

We want to express our sincere gratitude to our valued customers for their continued loyalty and trust, your ongoing support is what drives us forward. We also extend our thanks to all our stakeholders, including our bankers who support our financial needs, dealers and vendors who keep our operations running smoothly, and our dedicated employees and associates who are the backbone of our company.

On behalf of the Board of Directors,

SHAHNAZ SAJJAD AHMAD	LT. GEN. ALI KULI KHAN KHATTTAK (RETD.)
CHIEF EXECUTIVE OFFICER	DIRECTOR
April 18, 2024

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BANNU WOOLLEN MILLS LIMITED

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BANNU WOOLLEN MILLS LIMITED

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BANNU WOOLLEN MILLS LIMITED

Condensed Interim Statement of Financial Position as at March 31,2024

		Un-audited	Audited
		March 31,	Jun. 30,
		2024	2023
ASSETS	Note	(Rupees in thousand)
Non-current assets	6	1,570,946
Property, plant and equipment	1,574,146
Intangible assets		246	675
Investments in Associated Companies	7	1,154,958	831,635
Security deposits		3,794	3,794
Current assets		2,729,944	2,410,250
	136,068
Stores and spares		111,787
Stock-in-trade		669,723	647,293
Trade debts	8	223,739	291,499
Advances to employees - unsecured, considered good		22,056	37,857
Advance payments		32,729	70,940
Prepayments and other receivables		19,567	913
Sales tax refundable		12,332	0
Income tax refundable, advance tax		13,540
and tax deducted at source		16,178
Cash and bank balances		14,902	55,186
		1,144,656	1,231,653
Total assets		3,874,600	3,641,903
Equity and liabilities
Share capital and reserves
Authorised capital		200,000
20,000,000 ordinary shares of Rs.10 each		200,000
Issued, subscribed and paid-up capital		95,063	95,063
Capital reserves		19,445
- share premium		19,445
- revaluation surplus on property, plant and equipment	9	2,761,730	2,766,738
Revenue reserves		154,055
- general reserves		154,055
- unappropriated profit / (accumulated loss)		122,746	(191,670)
Shareholders' equity		3,153,039	2,843,631
LIABILITIES
Non-current liabilities
Lease liabilities		5,621	12,718
Staff retirement benefits - gratuity		150,811	131,259
Deferred taxation		82,600	70,519
Current liabilities		239,032	214,496
10	111,424
Trade and other payables	114,231
Contract Liabilities		3,198	1,204
Unpaid dividends		3,452	3,452
Unclaimed dividends		4,746	4,746
Accrued mark-up		17,105	22,298
Short term finances		322,709	416,745
Current portion of lease liabilities		8,705	7,365
Taxation	11	11,190	13,735
		482,529	583,776
Total liabilities		721,561	798,272
Contingencies and commitments	12
TOTAL EQUITY AND LIABILITIES		3,874,600	3,641,903

The annexed notes form an integral part of these financial statements.

Shahnaz Sajjad Ahmad	Lt. Gen. (Retd.) Ali Kuli Khan Khattak	Kalim Aslam
Chief Executive	Director	Chief Financial Officer

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BANNU WOOLLEN MILLS LIMITED

For the Quarter and Nine Months Period Ended March 31, 2024

							Nine months period
		Quarter ended		ended
		Mar. 31,	Mar. 31,		Mar. 31,		Mar. 31,
	Note	2024			2023		2024		2023
		- - - - - - -	Rupees in thousand - - - - - - -
Sales - net		66,076			84,071	836,070	946,309
Cost of sales		(54,291)			(83,332)	(632,862)	(718,949)
Gross profit
	11,785			739	203,208		227,360
Distribution cost		(8,643)			(13,230)	(26,329)	(26,275)
Administrative expenses		(33,711)			(31,257)	(111,504)	(91,611)
Other income		1,522			1,525	14,568	2,623
Other expenses		3,930			4,677	(918)	(5,441)
(Loss) / profit from operations
	(25,117)			(37,546)	79,025		106,656
Finance cost		(18,080)			(12,326)	(68,927)	(46,526)
		(43,197)			(49,872)	10,098	60,130
Share of profit / (loss) and impairment of
an Associated Company - net	7	0			0	323,323	(5,842)
(Loss) / profit before taxation
	(43,197)			(49,872)	333,421		54,288
Taxation	13	6,260			12,196	(24,013)	(40,063)
(Loss) / profit after taxation
	(36,937)			(37,676)	309,408	14,225
Other comprehensive income		0			0	0	0
Total comprehensive (loss) / income
for the period		(36,937)			(37,676)	309,408	14,225
		- - - - - - - - - - - Rupees - - - - - - - - - - -
(Loss) / earnings per share		(3.89)			(3.96)	32.55	1.50

The annexed notes form an integral part of these condensed interim financial statements.

Shahnaz Sajjad Ahmad	Lt. Gen. (Retd.) Ali Kuli Khan Khattak	Kalim Aslam
Chief Executive	Director	Chief Financial Officer

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BANNU WOOLLEN MILLS LIMITED

For the Quarter and Nine Months Period Ended March 31, 2024

Nine months period

ended

	Mar. 31,	Mar. 31,
	2024	2023
Cash flows from operating activities	Rupees in thousand
Profit for the period - before taxation and share of	10,098
profit / (loss) on investments in an Associated Company	60,130
Adjustments for non-cash charges and other items:	18,043
Depreciation on property, plant and equipment	15,616
Depreciation on right of use of assets	7,069	3,058
Amortisation	428	391
Provision for impairment of trade debts	130	155
Staff retirement benefits - gratuity (net)	19,552	15,464
Mark-up on bank deposits and dealers' balances	(13,715)	(1,046)
Finance cost	68,927	46,526
Workers' welfare fund	243	1,348
Profit before working capital changes	110,775	141,642
Effect on cash flows due to working capital changes
(Increase) / decrease in current assets
Stores and spares	(24,281)	13,283
Stock-in-trade	(22,430)	89,570
Trade debts	67,630	(100,351)
Advances	15,801	5,854
Advance payments	38,211	(1,676)
Prepayments and other receivables	(18,654)	(3,487)
Sales tax refundable	(12,332)	22,691
(Decrease) / increase in trade and other payables	(1,056)
and contract liabilities	2,186
	42,889	28,070
Cash generated from operations	153,664	169,712
Taxes paid	(11,840)	(11,113)
Net cash generated from operating activities	141,824	158,599
Cash flows from investing activities	(21,981)
Fixed capital expenditure	(20,872)
Mark-up on bank deposits and dealers' balances	13,715	1,046
Net cash used in investing activities	(8,266)	(19,826)
Cash flows from financing activities	(8,705)
Lease rentals paid	(3,469)
Short term finances - net	(94,036)	(77,717)
Dividend paid	0	(34)
Finance cost paid	(71,101)	(45,490)
Net cash used in from financing activities	(173,842)	(126,710)
Net (decrease) / increase in cash and cash equivalents	(40,284)	12,063
Cash and cash equivalents - at beginning of the period	55,186	31,011
Cash and cash equivalents - at end of the period	14,902	43,074

The annexed notes form an integral part of these condensed interim financial statements.

Shahnaz Sajjad Ahmad	Lt. Gen. (Retd.) Ali Kuli Khan Khattak	Kalim Aslam
Chief Executive	Director	Chief Financial Officer

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