Janana De Malucho Textile Mills : Transmission of Quarterly Report for the Period Ended 31 March, 2024

Nine Months Report Period Ended March 31, 2024

BIBOJEE GROUP

JANANA DE MALUCHO TEXTILE

MILLS LIMITED

BOARD OF DIRECTORS	MR. AHMAD KULI KHAN KHATTAK	Chairman
	LT. GEN. (RETD.) ALI KULI KHAN KHATTAK	Chief Executive
	MRS. SHAHNAZ SAJJAD AHMAD
	DR. SHAHIN KULI KHAN KHATTAK
	MRS. ZENAB ADNAN AURANGZEB
	MAJ. GEN. (RETD.) SAEED AHMED WAHLA
	COL. (RETD.) SYED YUNUS ALI RAZA
AUDIT COMMITTEE	MAJ. GEN. (RETD.) SAEED AHMED WAHLA	Chairman
	MR. AHMAD KULI KHAN KHATTAK	Member
	COL. (RETD.) SYED YUNUS ALI RAZA	Member
HUMAN RESOURCE &	COL. (RETD.) SYED YUNUS ALI RAZA	Chairman
REMUNERATION COMMITTEE	LT. GEN. (RETD.) ALI KULI KHAN KHATTAK	Chief Executive /
		Member
	MR. AHMAD KULI KHAN KHATTAK	Member
	MRS. SHAHNAZ SAJJAD AHMAD	Member
CHIEF FINANCIAL OFFICER	MR. AMIN-UR-RASHEED
	B. Com. (Hons.) FICS
	Sr. Gen. Manager (Fin., Com. & Corporate Affairs)
COMPANY SECRETARY	MR. ABID RAZA, M.(Accounting & Finance), APFA
HEAD OF INTERNAL AUDIT	MR. BILAWAL IRSHAD, CIA(Pak)
AUDITORS	SHINEWING HAMEED CHAUDHRI & CO., Chartered Accountants
BANKERS	NATIONAL BANK OF PAKISTAN
	THE BANK OF KHYBER
	PAK OMAN INVESTMENT COMPANY LTD.
	BANK ALFALAH LIMITED
	MEEZAN BANK LIMITED
	HABIB METROPOLITAN BANK LTD.
LEGAL ADVISOR	HASSAN & HASSAN (ADVOCATES)
	PAAF BUILDING, 7 D, KASHMIR ROAD, LAHORE
TAX CONSULTANTS	M. NAWAZ KHAN & CO.
	GROUND FLOOR, FARRAH CENTRE, 2-MOZZANG ROAD,
	LAHORE
REGISTRARS &	VISION CONSULTING LIMITED
SHARES REGISTRATION OFFICE	5-C, LDA FLATS, 1ST FLOOR, LAWRENCE
	ROAD, LAHORE
	TEL. [phone], FAX. [phone]
	EMAIL: [e-mail]
REGISTERED OFFICE & MILLS	HABIBABAD, KOHAT (KPK)
	TEL. 0922 - 862161 - 862163

FAX. 0922 - 510474

E-MAIL: [e-mail], [e-mail]

WEB SITE: www.jdm.com.pk

On behalf of the Board of Directors, we are pleased to present the Directors' Review along with the condensed interim financial statements of the Company for the 3rd quarter & nine months Period ended 31st March 2024.

FINANCIAL HIGHLIGHTS
	Quarter	Nine
	Ended	Months Ended
	Mar. 31,	Mar. 31,	Mar. 31,	Mar. 31,
	2024	2023	2024	2023
	------------------	Rs. in thousands -----------------
Sales-net	1,515,630	1,436,632	4,529,507	4,807,719
Gross (loss) / profit	(15)	12,938	141,803	271,463
(Loss) / profit from operations	(49,459)	(31,470)	58,222	174,449
Loss before taxation	(125,710)	(109,514)	(184,698)	(65,052)
Loss after taxation	(118,334)	(75,605)	(150,404)	(77,284)
	----------------------	Rupees ---------------------
Loss per share	(17.11)	(10.93)	(21.75)	(11.17)

During the period under report, the turnover of the Company has decreased by Rs.278.212 million as compared to the previous period. Further, the Company, in the period under report, has incurred a loss before tax amounting to Rs.184.698 million and loss after tax of Rs.150.404 million in comparison with loss before tax amounting to Rs.65.052 million and loss after tax amounting to Rs.77.284 million respectively, in the previous comparative period.

The Company has incurred the loss due to enormous increase of 118% in the gas prices (i.e. from Rs.1,100 to Rs.2,400 per MMBtu) from the month of November, 2023 and a further increase of around 15% (from Rs.2,400 to Rs.2,750 per MMBtu) from the month of February, 2024; increase in raw material costs due to high exchange rates and increase in finance costs due to a historical rise in interest rates.

GENERAL MARKET CONDITIONS AND FUTURE OUTLOOK

According to the Asian Development Bank's (ADB) new report i.e. "Asian Development Outlook (ADO) April 2024", Pakistan's economic outlook is uncertain, with high risks on the downside, as political uncertainty would remain a key risk to the sustainability of stabilization and reform efforts.

According to the report, Pakistan's GDP is expected to grow by 1.9 per cent in FY2024, driven by a rebound in private sector investment linked to progress on reform measures

and transition to a new and more stable government. The report further projected that economic growth in the FY2025 would reach 2.8 per cent, driven by higher confidence, reduced macro-economic imbalances, adequate progress on structural reforms, greater political stability, and improved external conditions. Inflation will remain high-at about 25%

in FY2024, driven by higher energy prices, but is expected to ease to 15% in FY2025 as inflation expectations moderate and progress on macroeconomic stabilization restores confidence. The central bank has maintained a tightened monetary policy, keeping the policy interest rate at 22% in response to persistent inflationary pressures and exter nal imbalances.

The report pointed out that Pakistan would continue to face challenges from substantial new external financing requirements and the rollover of old debt, exacerbated by tight global financial conditions.

Textile industry in the Country is facing significant challenges due to soaring energy costs after recent hikes in gas prices, leading to a downturn in profitability and complete shutdowns across the sector. Other major issues that have compounded the industry's difficulties include, rising production costs, frequent energy shortages, burden of cross subsidies on energy costs imposed by the regulator, and a shortfall in the domestic cotton crop, that has necessitated the import of cotton bales to meet industry demands.

Adhering to the terms of the IMF's Stand-by Facility, the government has implemented significant hikes in gas prices, leading to a marked increase in the cost of conducting business. These conditions are likely to result in a notable economic deceleration and contraction in export volumes in the coming months.

ACKNOWLEDGMENT

The Board places on record its appreciation for the support of its bankers who have consistently facilitated the Company in financially difficult times. We would also like to highlight the hard work and diligence of the Company's senior management, support staff and the production workers. We look forward to same dedication and cooperation from them in the future as well.

On behalf of the Board of Directors

Col. (Retd.) Syed Yunus Ali Raza	Lt. Gen. (Retd.) Ali Kuli Khan Khattak
Director	Chief Executive Officer
Dated: April 22, 2024

Condensed Interim Statement of Financial Position as at March 31, 2024 (Un-audited)

		Mar. 31,	June 30,
		2024	2023
Assets	Note	Un-audited	Audited
--Rupees in thousand--
Non-current assets	5	7,466,546
Property, plant and equipment	7,592,697
Intangible assets		845	1,040
Investments in an Associated Company	6	95,082	71,693
Loans to employees		826	1,236
Security deposits		14,598	14,346
Current assets		7,577,897	7,681,012
	73,726
Stores, spares and loose tools		90,099
Stock-in-trade		1,333,366	1,465,380
Trade debts - unsecured, considered good		10,250	62,405
Advances to employees		1,507	1,588
Advance payments		41,899	19,998
Trade deposits and prepayments	7	87,702	77,271
Other receivables		692	622
Income tax refundable, advance tax		173,298
and tax deducted at source		197,372
Cash and bank balances		26,660	40,639
		1,749,100	1,955,374
Total assets		9,326,997	9,636,386
Equity and liabilities
Equity		1,000,000
Authorised capital		1,000,000
Issued, subscribed and paid-up capital		69,158	69,158
Treasury shares		(3,410)	(3,410)
Capital reserves		23,803
- other capital reserves		23,803
- revaluation surplus on property, plant		5,081,259
and equipment		5,110,134
Revenue reserves		371,530
- general reserve		371,530
- unappropriated profit		875,385	996,914
Shareholders' equity		6,417,725	6,568,129
Liabilities
Non-current liabilities
Lease liabilities		0	2,034
Long term finances	8	894	138,691
Staff retirement benefits - gratuity		115,562	100,467
Deferred taxation		440,305	531,218
Current liabilities		556,761	772,410
9	540,758
Trade and other payables	421,680
Contract liabilities		212,868	77,675
Unclaimed dividends		2,715	2,715
Accrued mark-up		64,213	1,017
Short term finances		1,287,357	1,556,639
Current portion of non-current liabilities	10	186,790	159,723
Taxation	11	56,619	75,207
Preference shares redemption account		1,191	1,191
		2,352,511	2,295,847
Total liabilities		2,909,272	3,068,257
Contingencies and commitments	12
Total equity and liabilities		9,326,997	9,636,386

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

Lt. Gen. (Retd.)		Amin-ur-Rasheed
Ali Kuli Khan Khattak	Col. (Retd.) Syed Yunus Ali Raza
Chief Executive	Director	Chief Financial Officer

Condensed Interim Statement of Profit or Loss & Other

Comprehensive Income (Un-audited)

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

		Quarter ended	Nine months period ended
		Mar. 31,	Mar. 31,	Mar. 31,	Mar. 31,
	Note	2024	2023	2024	2023
		- - - - - - - - - - - Rupees in thousand - - - - - - - -
Sales - net		1,515,630	1,436,632	4,529,507	4,807,719
Cost of sales		1,515,645	1,423,694	4,387,704	4,536,256
Gross (loss) / profit		(15)	12,938	141,803	271,463
Distribution cost		18,674	13,988	59,186	43,993
Administrative expenses		34,624	33,150	104,091	86,668
Other expenses		0	0	3,709	4,845
Other income		(3,854)	(2,730)	(83,405)	(38,492)
		49,444	44,408	83,581	97,014
(Loss) / profit from operations		(49,459)	(31,470)	58,222	174,449
Finance cost		76,251	78,044	266,309	216,357
		(125,710)	(109,514)	(208,087)	(41,908)
Share of profit of an Associated
Company		0	0	708	4,957
Impairment loss on investments in
an Associated Company
reversed / (recognised)		0	0	22,681	(28,101)
		0	0	23,389	(23,144)
Loss before taxation		(125,710)	(109,514)	(184,698)	(65,052)
Taxation	11	18,946		56,619
- current	17,957	60,096
- prior year		0	0	0	(3,227)
- deferred		(26,322)	(51,866)	(90,913)	(44,637)
		(7,376)	(33,909)	(34,294)	12,232
Loss after taxation		(118,334)	(75,605)	(150,404)	(77,284)
Other comprehensive income		0	0	0	0
Total comprehensive loss for the period	(118,334)	(75,605)	(150,404)	(77,284)
		------------------------- Rupees -------------------------
Loss per share		(17.11)	(10.93)	(21.75)	(11.17)

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

Lt. Gen. (Retd.)		Amin-ur-Rasheed
Ali Kuli Khan Khattak	Col. (Retd.) Syed Yunus Ali Raza
Chief Executive	Director	Chief Financial Officer

Condensed Interim Statement of Changes in Equity (Un-audited)

For the Nine Months Period Ended March 31, 2024

						Reserves		Revenue
					Capital
	Share	Treas-				Revaluation
	ury	Capital	Tax	Share	surplus on	Merger		Unappr-	Total
	capital
	shares	redemp-	property,	General	opriated
		holiday		reserve
			tion	premium		profit
					plant and
						equipment
	---------------------------------------------------			Rupees in thousand ----------------------------------------------------------------
Balance as at June 30, 2023 (audited)	69,158	(3,410)	6,694	350	11,409	5,110,134	5,350	371,530	996,914	6,568,129
Total comprehensive loss for
the period of nine months
ended March 31, 2024	0	0	0	0	0	0	0	0	(150,404)	(150,404)
Transfer from revaluation surplus
on property, plant and equipment on
account of incremental depreciation
for the period - net of deferred taxation	0	0	0	0	0	(28,875)	0	0	28,875	0
Share of revaluation surplus on
property, plant and equipment of
an Associated Company	0	0	0	0	0	0	0	0	0	0
Balance as at March 31, 2024
(un-audited)	69,158	(3,410)	6,694	350	11,409	5,081,259	5,350	371,530	875,385	6,417,725
Balance as at June 30, 2022 (audited)	69,158	(3,410)	6,694	350	11,409	5,124,591	5,350	371,530	1,035,997	6,621,669
Total comprehensive loss for
the period of nine months
ended March 31, 2023	0	0	0	0	0	0	0	0	(77,284)	(77,284)
Transfer from revaluation surplus
on property, plant and equipment on
account of incremental depreciation
for the period - net of deferred taxation	0	0	0	0	0	(28,199)	0	0	28,199	0
Share of revaluation surplus on
property, plant and equipment of
Associated Company	0	0	0	0	0	(33,956)	0	0	33,956	0
Balance as at March 31, 2023
(un-audited)	69,158	(3,410)	6,694	350	11,409	5,062,436	5,350	371,530	1,020,868	6,544,385

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

Lt. Gen. (Retd.)		Amin-ur-Rasheed
Ali Kuli Khan Khattak	Col. (Retd.) Syed Yunus Ali Raza
Chief Executive	Director	Chief Financial Officer

Condensed Interim Statement of Cash Flows (Un-audited)

For the 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)
Loss for the period - before taxation and share of profit	(208,087)
on investments in an Associated Company	(41,908)
Adjustments for non-cash charges and other items:	120,938
Depreciation on operating fixed assets	124,053
Amortisation on intangible assets	195	195
Depreciation on right of use assets	1,274	426
Gain on sale of operating fixed assets	(266)	(3,021)
Staff retirement benefits - gratuity (net)	15,095	5,700
Receivable balances written-off	3,709	4,845
Payable balances written-back	(73,815)	(34,448)
Finance cost	266,309	216,357
Profit before working capital changes	125,352	272,199
Effect on cash flows due to working capital changes
Decrease / (increase) in current assets:	16,373
Stores, spares and loose tools	13,651
Stock-in-trade	132,014	218,208
Trade debts	52,155	(64,602)
Loans and advances to employees	491	(511)
Security deposits	(252)	0
Advance payments	(21,901)	(10,392)
Trade deposits and prepayments	(10,431)	(10,621)
Other receivables	(70)	(939)
Increase / (decrease) in trade and other payables	324,377	(189,162)
	492,756	(44,368)
Cash generated from operations	618,108	227,831
Taxes paid	(51,133)	(63,871)
Net cash generated from operating activities	566,975	163,960
Cash flows from investing activities
Fixed capital expenditure	(8,508)	(81,875)
Sale proceeds of operating fixed assets	12,713	3,968
Net cash generated from / (used in) investing activities	4,205	(77,907)
Cash flows from financing activities	(1,551)
Lease liabilities	(1,091)
Long term finances - net	(111,213)	54,453
Short term finances - net	(269,282)	79,539
Finance cost paid	(203,113)	(203,827)
Net cash used in financing activities	(585,159)	(70,926)
Net (decrease)/increase in cash and cash equivalents	(13,979)	15,127
Cash and cash equivalents - at beginning of the period	40,639	17,169
Cash and cash equivalents - at end of the period	26,660	32,296

The annexed notes 1 to 16 form an integral part of these condensed interim financial statements.

Lt. Gen. (Retd.)		Amin-ur-Rasheed
Ali Kuli Khan Khattak	Col. (Retd.) Syed Yunus Ali Raza
Chief Executive	Director	Chief Financial Officer