Shahtaj Textile : Transmission of Quarterly Report for the Period Ended 31-12-2022

Condensed Interim

Financial Statements for the half year ended December 31, 2022

CONTENT

Company Information	02
Directors' Report to the Shareholders	03
Independent Auditor's Review Report	07
Condensed Interim Statement of Financial Position	08
Condensed Interim Statement of Profit or Loss Account	09
Condensed Interim Statement of Comprehensive Income	09
Condensed Interim Cash Flow Statement	10
Condensed Interim Statement of Changes in Equity	11
Notes to the Condensed Interim Financial Satements	12

01

BOARD OF DIRECTORS	Mr. Muneer Nawaz	Chairman
	Mr. M. Naeem	Chief Executive
	Mr. Abid Nawaz
	Mr. Aamir Amin (NIT)
	Mr. Farooq Hassan
	Mr. Syed Nadeem Ali Kazmi
	Mr. Toqueer Nawaz
	Mrs. Sadia Mohammad
	Mr. Muhammad Usman Khalid
	Lt. Col. (Retd.) R.D. Shams
COMPANY SECRETARY	Mr. Jamil Ahmad Butt, FCMA
AUDIT COMMITTEE OF THE BOARD	Mr. Aamir Amin	Chairman
	Mr. Muneer Nawaz	Member
	Mr. Toqueer Nawaz	Member
	Mr. Muhammad Usman Khalid	Member
	Mr. Jamil Ahmad Butt, FCMA	Secretary
HUMAN RESOURCE AND	Mr. Farooq Hassan	Chairman
REMUNERATION COMMITTE OF	Mr. Muneer Nawaz	Member
THE BOARD	Mr. M. Naeem	Member
	Mr. Toqueer Nawaz	Member
	Mrs. Sadia Muhammad	Member
	Mr. Jamil Ahmad Butt, FCMA	Secretary
AUDITORS	Yousuf Adil.
	Chartered Accountants.
	Cavish Court, A-35, Block 7 & 8 KCHS,
	Shahrah-e-Faisal, Karachi 75350.
BANKS	Bank Alfalah Limited
	United Bank Limited
	Meezan Bank Ltd.
	The Bank of Punjab
	MCB Bank Limited
	Faysal Bank Limited
	National Bank of Pakistan
LEGAL ADVISOR	Mr. Ras Tariq Chaudhary
	30-Mall Mansion
	The Mall
	Lahore.
HEAD OFFICE	Shahnawaz Building, 19-Dockyard Road,
	West Wharf, Karachi-74000
	Ph: 32313934-8, 32312834, 32310973
	Fax: [phone]
	Website: www.shahtaj.com
REGISTERED OFFICE	27-C, Abdalian Cooperative Housing Society,
	Opp. Expo Center, Lahore, Pakistan
	Tel: [phone]
	Fax:[phone]
MARKETING OFFICE	27-C, Abdalian Cooperative Housing Society,
	Opp. Expo Center, Lahore, Pakistan
	Tel: [phone]
	Fax:[phone]
FACTORY	46 K.M. Lahore/Multan Road
	Chunian Industrial Estate
	Bhai Pheru, Distt. Kasur, Punjab.
	Ph: [phone]-32, 4540133, 4540234
	Fax: [phone]
SHARE REGISTRAR	Jwaffs Registrar Services (Pvt.) Ltd.
	Suite # 407,408, 4th Floor, Al-Ameera Centre,
	Shahrah-e-Iraq, Near Passport Office,
	Saddar Karachi.
	Tel: [phone] Fax: [phone]

02

Directors are pleased to present un-audited Condensed Interim Financial Statements of the Company for the six months period ended on December 31, 2022 together with limited scope review report by the Auditors.

By the grace of Allah, in spite of difficult market conditions, operating results of the Company have been positive and Company has earned after tax profit of Rs. 85.345 million with an EPS of Rs 8.83 in comparison to Rs 18.61 reported during the same period last year. Net Sales revenue for the period is Rs. 4.443 billion compared to Rs. 3.772 billion showing increase of about 18% over the corresponding period of last year which is due to combination of price increase as well as volume increase. However, GP rate dropped significantly from 10.77% to 7.31% mainly due to drastic increase in power cost.

Administration cost for the period is higher than previous corresponding period due to inflationary effect. Finance cost increased significantly during the period under review mainly due to increase in interest rates as well as increase in average short-term borrowings of the Company. The increase in borrowings is mainly due to higher inventory levels.

Other income increased significantly mainly because of exchange gain due to currency devaluation.

Demand for fabrics is low due to worldwide recession. Customers are complaining of sudden drop in demand for finished goods putting downward pressure on fabric prices. Domestic issues like scarce and costly fuel and power, hyper-inflation, rising interest rates, political instability and severe flooding due to climate change have added to the difficulties. Availability of raw material is also a serious concern after the cotton crop damage from devastating flood. Banks are delaying opening of Import Lcs on account of depleting forex reserves. Many textile factories have shut down due to raw material and energy shortages. Although, Pakistan Government agreed to give a concessional electricity rate of Rs. 19.99 per unit and RLNG rate of 9 $ per MMBTU up to June, 2023 to export oriented sector. However, the Government is all set to discontinue this tariff under IMF program. This will make the textile export industries unviable to operate and lead to massive closures and huge lay-offs. Unfortunately, all these factors have further intensified and depressed the outlook for the foreseeable future.

Company will continue to do its best to overcome these challenges and undertake any measures to ensure its sustainability.

Board and its Committees

The total number of directors is ten as per the following:

1. Male: 9
2. Female: 1

Category	Names
Independent Directors	Mr. Aamir Amin (NIT)
	Mr. Farooq Hassan
	Mr. Syed Nadeem Ali Kazmi
	Mr. Muneer Nawaz
Other Non-Executive Directors	Mr. Toqueer Nawaz
Mr. Muhammad Usman Khalid
	Mr. Abid Nawaz
Female Non-Executive Director	Mrs. Sadia Muhammad
Executive Directors	Mr. Muhammad Naeem
Lt. Col(Retd.) Rashiduddin Shams

03

The Board has formed committees comprising of members as below:

a) Audit Committee

• Mr. Aamir Amin (Chairman)
• Mr. Muneer Nawaz
• Mr. Toqueer Nawaz
• Mr. Muhammad Usman Khalid
• Mr. Abid Nawaz

b) HR and Remuneration Committee

• Mr. Farooq Hassan (Chairman)
• Mr. Muneer Nawaz
• Mr. Muhammad Naeem
• Mr. Toqueer Nawaz
• Mrs. Sadia Muhammad

Appreciation

Directors acknowledge with thanks the hard work put in by all employees of the Company.

for and on behalf of the Board of Directors

Karachi	(Muneer Nawaz)	(M. Naeem)
February 28, 2023	Chairman	Chief Executive

04