Colony Textile Mills : Transmission of Quarterly Report for the period Ended 2023-12-31

CONDENSED INTERIM

FINANCIAL INFORMATION FOR THE HALF YEAR ENDED DECEMBER 31, 2023 (UN-AUDITED)

CONTENTS

Company Information	2
Directors' Review	4
Independent Auditor's Review Report to the Members	5
Condensed Interim Statement of Financial Position (Un-Audited)	6
Condensed Interim Statement of Profit or Loss (Un-Audited)	7
Condensed Interim Statement of Comprehensive Income (Un-Audited)	8
Condensed Interim Statement of Cash Flows (Un-Audited)	9
Condensed Interim Statement of Changes in Equity (Un-Audited)	10
Notes to the Condensed Interim Financial Information (Un-Audited)	11
	19

HALF YEAR 2023

COMPANY INFORMATION

Board Of Directors
Mr. Mughis A. Sheikh	(Chairman)
Mr. Fareed Mughis Sheikh
Mr. Muhammad Tariq
Syed Aftab Hussain Naqvi
Mr. Muhammad Shahzad Jamil
Mr. Abdul Hakeem Khan Qasuria
Mrs. Amna Anwar
Board Committees
Audit Committee	(Chairman)
Syed Aftab Hussain Naqvi
Mr. Abdul Hakeem Khan Qasuria
Mrs. Amna Anwar
HR & Remuneration Committee	(Chairperson)
Mrs. Amna Anwar
Syed Aftab Hussain Naqvi
Mr. Muhammad Shahzad Jamil
Other Management Committees
Executive Committee
Mr. Fareed Mughis Sheikh	(Chairman)
Mr. Muhammad Tariq
Mr. Muhammad Atta ullah Khan
Technical Committee
Mr. Fareed Mughis Sheikh	(Chairman)
Mr. Muhammad Tariq
Mr. Noor Khan
Finance Committee
Mr. Fareed Mughis Sheikh	(Chairman)
Mr. Atta Mohyuddin Khan
Mr. Bilal Ahmad Khan Niazi
Social Compliance & Human Resource Committees
Mr. Fareed Mughis Sheikh	(Chairman)
Mr. Muhammad Atta ullah Khan
Mr. Atta Mohyuddin Khan

02	COLONY TEXTILE MILLS LIMITED

HALF YEAR 2023

Chief Financial Officer

Mr. Atta Mohyuddin Khan

Company Secretary

Mr. Muhammad Tayyab

Auditors

Ilyas Saeed & Co.

Chartered Accountants

Legal Advisor

BNR

Advocates and Corporate Counsel

Tax Advisor

Riaz Ahmad & Company

Chartered Accountants

Registered Address

M. Ismail Aiwan-e-Science Building

205 Ferozepur Road, Lahore-54600

Phone : [phone]

Fax : [phone]

Email : [e-mail]

Website: www.colonytextiles.com

Share Registrar

Hameed Majeed Associates (Pvt.) Limited

HM House, 7 Bank Square, Lahore.

Phone: [phone], Fax: [phone]

Email : [e-mail]

Bankers

BankIslami Pakistan Limited

Meezan Bank Limited

Faysal Bank Limited

Habib Bank Limited

National Bank of Pakistan

Soneri Bank Limited

Standard Chartered Bank (Pakistan) Limited

Silk Bank Limited

The Makramah Limited

The Bank of Punjab

United Bank Limited

Production Facilities

Weaving Unit:	4-K.M. Raiwind Manga Road, Raiwind, District Kasur
Spinning Unit:	Sher Shah Road, Ismailabad Multan.

COLONY TEXTILE MILLS LIMITED

03

HALF YEAR 2023

DIRECTORS' REVIEW

The directors of the company are pleased to present here the interim financial statements for the half year ended December 31, 2023 duly reviewed by statutory auditors.

The turnover of the company for the first half year has increased from Rs.9,861 million to Rs. 10,258 million, compared with corresponding period of the last year. The gross profit for the period is Rs 147 million (2022: gross loss Rs 386 million) and the net loss for six months is Rs.1,004 million (2022: Rs. 990 million). Loss per share for the period is Rs.2.02 as compared with loss per share of Rs.1.99 of the same period of last year.

Imprudent economic policies combined with recent global events have made Pakistan's economy particularly fragile, characterized by high balance of payments and fiscal deficits, a weakening and volatile currency, rising inflation and interest rates, a high external debt and uncompetitive energy pricing. Without meaningful policies and reforms that boosts economic competitiveness, direct investment towards productive sectors that promote industries and sustained efforts to end the regulatory quagmire, Pakistan's economic revival will continue to falter.

Textile sector suffered the most due to the current volatile situation. The extremely high interest rates, ever increasing raw material and input prices, uncertain currency rates clubbed with back breaking energy prices completely crushed the textile sector. While the global demand was sluggish due to recession local consumption suffered badly due to unprecedented inflation. The whole nation was running pilar to post trying to arrange for their bread and better and electricity bills; buying a piece of cloth was obviously not a priority.

After the election and formation of new government in the country, we are very hopeful that the current economic situation will be the top priority of the new government.

Although the challenges are very high but we are committed to perform in the best possible manner and add value to our stake holders to meet the long term goals of the company.

During the month of December, the company disposed of its wholly owned subsidiary StitchRite (Private) Limited at a profit for better control and management of the company's affairs.

We would like to place on record our deep appreciation for the cooperation of banks, efforts of our executive and employees for the betterment of the company.

For and on behalf of the board

Abdul Hakeem Khan Qasuria	Fareed Mughis Sheikh
Director	Chief Executive Officer
Lahore
February 29, 2024

04	COLONY TEXTILE MILLS LIMITED

HALF YEAR 2023

Independent Auditor's Review Report

To the members of Colony Textile Mills Limited

Report on Review of Interim Financial Statements

Introduction

We have reviewed the accompanying condensed interim statement of financial position of Colony Textile Mills Limited ("the company") as at 31 December 2023 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows, and notes to the condensed interim financial statements for the six-month period ended (here-in-after referred to as the "condensed interim financial statements"). Management is responsible for the preparation and presentation of this condensed interim financial statements in accordance with approved accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review.

The figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the quarters ended 31 December 2023 and 2022 have not been reviewed, as we are required to review only the cumulative figures for the six-month period ended 31 December 2023.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of condensed interim financial statements consists 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.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements are not prepared, in all material respects, in accordance with approved 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

Bushra Sana.

Dated: 29 February 2024	Ilyas Saeed & Co.
Lahore	Chartered Accountants
UDIN No.: RR202310278HJAndzPBt

COLONY TEXTILE MILLS LIMITED

05

HALF YEAR 2023

CONDENSED INTERIM STATEMENT OF

FINANCIAL POSITION (UN-AUDITED)

AS AT DECEMBER 31, 2023

31-Dec-2330-Jun-23

EQUITY AND LIABILITIES

Note

(Rupees in '000')

(Rupees in '000')

Share Capital and Reserves

Authorized share capital

530,000,000 (30 June 2023: 530,000,000) ordinary shares of Rs. 10 each

Issued, subscribed and paid up capital

Reserve arising on amalgamation

Revaluation surplus on property, plant and equipment

Director's loan6 General reserves

Unappropriated profit

Surplus on remeasurement of investments

Non Current Liabilities

Long term financing

7

Deferred liabilities

Current Liabilities

Trade and other payables

Short term borrowings8 Accrued mark-up

Unclaimed dividend

Current portion of long term liabilities

Provision for taxation

Contingencies and commitments

9

ASSETS

Non Current Assets

5,300,000

4,980,100

3,156,388

19,594

120,000

4,702

1,704,548

870

9,986,202

6,331,536

4,462,771

10,794,307

3,843,593

2,491,232

378,867

94

1,299,352

195,841

8,208,980

-

28,989,489

5,300,000

4,980,100

3,156,388

19,594

120,000

4,702

2,708,963

694

10,990,441

6,607,342

3,822,520

10,429,862

3,922,124

2,881,132

207,489

94

1,005,992

330,754

8,347,585

-

29,767,887

Property, plant and equipment	10	18,937,298		19,077,186
Right of use assets	11	79,709		81,753
Investment property		942,570		942,570
Long term investments	12	224,218		182,164
Investment in subsidiary		-		160,000
Long term deposits		51,132			51,132
Current Assets		20,234,927		20,494,804
Stores, spare parts and loose tools		384,567			386,796
Stock in trade	13	3,493,960			4,460,113
Trade debts		1,013,587			1,017,013
Loans and advances		1,109,653			975,921
Trade deposits and short term prepayments		125,942			89,076
Other financial assets	14	20			14
Tax refunds due from the government		2,553,192			2,253,234
Cash and bank balances		73,642			90,916
		8,754,562			9,273,083
		28,989,489		29,767,887

The annexed notes from 01 to 23 form an integral part of this condensed interim financial information.

Chief Financial Officer	Director	Chief Executive Officer
06		COLONY TEXTILE MILLS LIMITED

HALF YEAR 2023

CONDENSED INTERIM STATEMENT OF

PROFIT OR LOSS (UN-AUDITED)

FOR THE HALF YEAR ENDED DECEMBER 31, 2023

		Half year ended		Quarter ended
		31-Dec		31-Dec
		2023	2022	2023	2022
	Note	(Rupees in '000')		(Rupees in '000')		(Rupees in '000')		(Rupees in '000')
Sales - net	15	10,258,344	9,861,450	3,906,534	4,552,038
Cost of sales	16	(10,110,903)		(10,247,095)		(3,921,593)		(4,966,813)
Gross Profit/(Loss)		147,441	(385,645)	(15,059)	(414,775)
Operating expenses:

Distribution cost

Administrative expenses

Operating (Loss)/Profit
Finance cost	17
Other Operating Charges
Other income	18
(Loss)/Profit before taxation

Taxation

Net (Loss)/profit for the period

(Loss)/Earnings per share - basic and diluted (Rupees)

(117,639)

(267,176)

(384,815)

(237,374)

(763,855)

-

(763,855)

121,645

(879,584)

(124,831)

(1,004,415)

(2.02)

(153,184)

(275,699)

(428,883)

(814,528)

(440,381)

(1)

(440,382)

70,492

(1,184,418)

194,422

(989,996)

(1.99)

(55,844)

(108,681)

(164,525)

(179,584)

(353,087)

-

(353,087)

73,085

(459,586)

(49,189)

(508,775)

(1.02)

(93,664)

(156,743)

(250,407)

(665,182)

(218,038)

(1)

(218,039)

41,958

(841,263)

256,254

(585,009)

(1.17)

The annexed notes from 01 to 23 form an integral part of this condensed interim financial information.

Chief Financial Officer	Director	Chief Executive Officer
COLONY TEXTILE MILLS LIMITED		07

HALF YEAR 2023

CONDENSED INTERIM STATEMENT OF

COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE HALF YEAR ENDED DECEMBER 31, 2023

	Half year ended		Quarter ended
	31-Dec		31-Dec
	2023	2022	2023	2022
	`
Note	(Rupees in '000')		(Rupees in '000')		(Rupees in '000')		(Rupees in '000')
(Loss)/Profit for the period	(1,004,415)	(989,996)	(508,775)	(585,009)
Other comprehensive income:
Items that may be reclassified
to profit or loss statement:
- Net fair value gain / (loss) on
investment measured at
FVTOCI	176	(245)	176	(245)
Total comprehensive (loss)/income
for the period	(1,004,239)	(990,241)	(508,599)	(585,254)

The annexed notes from 01 to 23 form an integral part of this condensed interim financial information.

Chief Financial Officer	Director	Chief Executive Officer
08		COLONY TEXTILE MILLS LIMITED

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)

FOR THE HALF YEAR ENDED DECEMBER 31, 2023

CASH FLOWS FROM OPERATING ACTIVITIES

Profit/(loss) for the period before taxation

Adjustments for:

Provision for staff retirement benefits

Depreciation on operating assets

Finance cost

(Profit) / loss from investment in IL

(Profit) / loss on remeasurement of investments (Gain) on disposal of property, plant and equipment

Operating cash flows before working capital changes

Changes in working capital:

(Increase) / decrease in current assets: Stores, spare parts and loose tools Stock in trade

Trade debts

Loans, advances, deposits and other receivables Increase / (decrease) in current liabilities:

Trade and other payables

Cash generated from operating activities

Finance cost paid

Staff retirement benefits paid

Income tax paid

Net cash generated from operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

HALF YEAR 2023

31-Dec-23		31-Dec-22
(Rupees in '000')		(Rupees in '000')
(879,584)	(1,184,418)
129,000	114,000
446,651	438,374
763,855	440,381
(41,878)	(6,504)
(6)	1

1. (7,894)
   1,296,717978,358

417,133(206,060)

2,229			100,150
966,153		795,125
3,426		482,734
(665,380)		(561,852)
(78,531)			297,528
227,897		1,113,685
645,030			907,625
(53,400)		(182,176)
(27,826)		(37,708)
(64,918)			(100,635)
(146,144)		(320,519)
498,886	587,106

Fixed capital expenditure

Investment in subsidary

Proceeds from disposal of property, plant and equipment

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

(306,314)

160,000

2,500

(143,814)

(292,117)

(30,000)

136,178

(185,939)

Long term finances repaid	20,761		(203,469)
Lease finance - net	(3,208)		(6,579)
Short term borrowings - net	(389,900)		(188,507)
Net cash used in financing activities	(372,346)		(398,555)
Net (decrease) / increase in cash and cash equivalents	(17,274)	2,613
Cash and cash equivalents at beginning of the period	90,916		21,053
Cash and cash equivalents at end of the period	73,642	23,666

The annexed notes from 01 to 23 form an integral part of this condensed interim financial information.

Chief Financial Officer	Director	Chief Executive Officer
COLONY TEXTILE MILLS LIMITED		09