Zephyr Textiles : TRANSMISSION OF QUARTERLY ACCOUNTS MAR 2024

March 31, 2024

2024

2024

Directors' Report

Operating financial results

			Increased
Description	March 31, 2024	March 31, 2023	By
	Rupees	Rupees	%
Sales - net	5,992,081,861	5,345,956,842	12.09
Gross Profit	832,516,104	660,880,891	25.97
Operating Profit for the period	558,460,612	292,104,344	91.19
Financial charges	218,705,742	122,359,691	78.74
Profit for the period before taxation	339,754,870	169,744,653	100.16
Taxation current	64,739,653	64,037,113	1.10
Profit for the period after taxation	275,015,217	105,707,540	160.17
Earning Per Share	4.63	1.78	160.11

end of next quarter in order to keep electricity cost bearable.

At the end, the directors extend their gratitude to the employees of the company for their

teamwork, commitment, integrity and professionalism.

29, 2024

2024

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UNAUDITED)

AS AT MARCH 31, 2024

		Unaudited	Audited
Notes	March 31, 2024	June 30, 2023
(Rupees)	(Rupees)
EQUITY AND LIABILITIES
SHARE CAPITAL & RESERVES
Authorized share capital		625,000,000	625,000,000
Issued, subscribed and paid-up share capital	3	594,287,290	594,287,290
Unappropriated profit		1,668,686,104	1,361,643,813
Surplus on revaluation of property, plant & equipment	4	491,039,285	574,060,494
NON CURRENT LIABILITIES		2,754,012,679	2,529,991,597
5	56,908,678
Long term loans	64,111,427
Lease liabilities		3,888,697	21,388,890
Deferred liabilities	7	212,767,159	227,434,587
Deferred grant		2,545,041	2,954,065
CURRENT LIABILITIES		276,109,575	315,888,969
9	1,552,429,095
Creditors, accrued and other liabilities	1,602,937,009
Contract liabilities		60,274,678	17,880,030
Mark-up accrued		28,780,639	52,271,856
Short term borrowings	8	1,372,000,000	1,312,657,119
Taxation - net		-	7,486,163
Unclaimed dividend		829,907	829,907
Current portion of deferred grand		890,764	999,837
Current portion of lease liability		23,333,333	23,333,328
Current portion of long term financing	5	10,621,680	10,621,685
		3,049,160,096	3,029,016,934
CONTIGENCIES AND COMMITMENTS		-	-
		6,079,282,350	5,874,897,500
ASSETS
NON CURRENT ASSETS
Property plant and equipment	11	2,434,201,386
Operating fixed assets	2,420,908,614
Right of use assets		101,226,635	110,024,981
Capital work in progress	12	61,782,117	75,202,086
Intangible assets		2,597,210,138	2,606,135,681
	1,810,096	2,716,222
Long term advances and deposits	13	25,926,811	25,602,294
CURRENT ASSETS		2,624,947,045	2,634,454,197
14	224,600,298
Stores, spares and loose tools	261,019,771
Stock in trade	15	1,780,935,858	1,456,787,939
Loans and advances	17	80,374,352	80,868,194
Trade debts	16	559,177,375	557,182,004
Trade deposits, prepayments	18	25,825,307	13,516,245
Tax refunds due from Government		274,539,003	521,469,078
Other receivables	19	178,531,401	85,275,163
Short term investment	20	199,237,152	107,975,933
Cash and bank balances	21	131,114,559	156,348,976
		3,454,335,305	3,240,443,303
		6,079,282,350	5,874,897,500

The annexed notes 1 to 9 form an integral part of these condensed interim financial statements.

2024

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

FOR THE NINE MONTHS ENDED MARCH 31, 2024

	Un-audited	Un-audited
	For Nine Months Ended	For Quarter Ended
	March 31,	March 31,
	2024	2023	2024	2023
	(Rupees)	(Rupees)
SALES	5,992,081,861	5,345,956,842	2,016,363,436	1,684,166,372
COST OF SALES	5,159,565,757	4,685,075,951	1,769,709,700	1,437,103,746
GROSS PROFIT	832,516,104	660,880,891	246,653,736	247,062,626
Other income	257,672,178	141,905,745	81,547,126	97,343,936
Distribution costs	358,693,642	323,737,683	148,168,811	90,200,238
Administrative expenses	102,402,458	82,325,093	34,122,859	26,862,336
Other operating expenses	70,631,570	104,619,516	49,192,272	85,171,522
	558,460,612	292,104,344	96,716,920	142,172,466
Finance Costs	218,705,742	122,359,691	71,293,176	43,003,617
PROFIT BEFORE TAXATION	339,754,870	169,744,653	25,423,744	99,168,849
Taxation	64,739,653	64,037,113	20,457,441	17,140,818
PROFIT AFTER TAXATION	275,015,217	105,707,540	4,966,303	82,028,031
OTHER COMPREHENSIVE INCOME
Other comprehensive income for the period	-	-	-	-
TOTAL COMPREHENSIVE INCOME	275,015,217	105,707,540	4,966,303	82,028,031
EARNING PER SHARE-BASIC & DILUTED	4.63	1.78	0.08	1.38

The annexed notes 1 to 9 form an integral part of these condensed interim financial statements.

2024

CONDENSED INTERIM STATEMENT OF CASH FLOW (UNADITED)

FOR THE NINE MONTHS ENDED MARCH 31, 2024

For the Nine Months Ended

March 31,

20242023

(Rupees)

CASH FLOW FROM OPERATING ACTIVITIES

Profit for the period before taxation

339,754,870

169,744,653

Adjustments for:

Depreciation on property, plant and equipment

Amortization

Gain / Loss on sale of PPE

Gain on re-measurement of short term investments Dividend Income

Capital gain from Investment

Allowance for ECL

Provision for staff gratuity

Financial charges

Net cash flow before working capital changes

149,396,647

906,138

(143,463,777)

(1,024,293)

(19,226,714)

(596,220)

21,579,436

42,543,063

218,705,742

268,820,022

141,856,422

681,219

8,123,752

98,295

(41,312)

(890,990)

15,316,376

36,988,840

122,359,691

324,492,293

(Increase)/Decrease in current assets

Stores, spares and loose tools

Stock in trade

Trade debts

Loans and advances

Short Term Investments

Trade deposits and prepayments

Tax refunds due from the Government

Other receivables

(Increase)/Decrease in current liabilities

Trade and other payables

Contract liabilities

Mark-up accrued

Unclaimed Dividend

Cash flow from operations

Financial charges paid

Taxes paid

Gratuity paid

Net cash flow from operating activities	( A )
CASH FLOW FROM INVESTING ACTIVITIES

36,419,473

(324,147,919)

19,584,065

493,842

(91,261,219)

(26,393,760)

249,067,569

(93,256,238)

(229,494,187)

(80,902,575)

42,394,648

23,491,217

-

(15,016,710)

364,063,995

(241,433,447)

(68,983,456)

(89,398,391)

(399,815,294)

(35,751,299)

(24,100,894)

(30,023,113)

59,308,035

(14,472,370)

5,063,176

(4,415,650)

9,463,125

1,115,085

1,937,394

165,826,078

(7,718,211)

(4,681,041)

68,409

153,495,235

649,669,575

(117,396,878)

(48,842,877)

(25,577,050)

(191,816,805)

457,852,770

(Addition) to operating fixed assets
(Addition) / Deletion to capital work in progress
Sale proceeds of fixed assets
Dividends recieved
Long term advances, deposits and deferred costs
Net cash flow from investing activities	( B )
CASH FLOW FROM FINANCING ACTIVITIES
Short term finances - secured
Long term finances - secrued
Principal paid on lease liabilities
Dividend paid
Net cash flow from financing activities	( C )
NET INCREASE IN CASH AND CASH EQUIVALENTS	( A+B+C )
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

(264,327,701)

13,419,969

207,996,961

19,226,714

324,517

(23,359,540)

59,342,881

(7,966,266)

(17,500,193)

-

33,876,422

(25,234,417)

156,348,976

131,114,559

(247,283,826)

(34,279,323)

19,109,694

41,312

875,480

(261,536,663)

39,352,697

(180,344,761)

(25,234,790)

(29,714,391)

(195,941,245)

374,862

64,697,152

65,072,014

The annexed notes 1 to 9 form an integral part of these condensed interim financial statements.

2024

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE NINE MONTHS ENDED MARCH 31, 2024

Description	Share	Revaluation	Accumulated	Total
Capital	Surplus	Profit
	(Rupees)	(Rupees)	(Rupees)	(Rupees)
Balance as at June 30, 2022 - restated	594,287,290	368,175,679	1,132,575,078	2,095,038,047
Final dividend @ Rs. 0.50 per ordinary share	-	-	(29,714,391)	(29,714,391)
Total comprehensive income for the period	-	-	105,707,540	105,707,540
Current year incremental depreciation - net of tax	-	(6,376,461)	6,376,461	-
Balance as at March 31, 2023	594,287,290	361,799,218	1,214,944,688	2,171,031,196
Balance as at June 30, 2023	594,287,290	574,060,494	1,361,643,813	2,529,991,597
Total comprehensive income for the period	-	-	275,015,217	275,015,217
Reversal of surplus on disposal of PPE		(45,679,686)	-	-
Deferred tax due to rate change and disposal - Net		(5,314,449)	-	-
Current year incremental depreciation - net of tax	-	(32,027,074)	32,027,074	-
Balance as at March 31, 2024	594,287,290	491,039,285	1,668,686,104	2,805,006,814

The annexed notes 1 to 9 form an integral part of these condensed interim financial statements.

2024

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED MARCH 31, 2024 (UN-AUDITED)

1. These accounts have been prepared in accordance with the requirements of International Accounting standard No. 34 "Interim Financial Reporting".
2. The accounts are being submitted to shareholders as required by Section 237 of the Companies Act, 2017.
3. The accounting policies adopted for the preparation of the accounts are the same as those applied in the preparation of the preceding annual published financial statements of the company for the year ended June 30, 2023.
4. Judgments and estimates made by the management in the preparation of these condensed interim financial statements are the same as those applied to the annual financial statements for the year ended June 30, 2023.
5. CONTINGENCIES AND COMMITMENTS
6. 1. Contingencies
      There has been no significant change in contigencies since the last reviewed financial statements.
   2. Commitments
      Commitments against irrevocable letters of credit for import of raw material as at March 31, 2024 amounting to Rs. 49.776 million (June 2023: Rs. 85.347 million)

Un-Audited	Audited
March 31, 2024	June 30, 2023
(Rupees)	(Rupees)

6. PROPERTY, PLANT AND EQUIPMENT

Opening book value	2,420,908,614	2,049,896,162
Additions during the period	264,327,701	332,681,039
Revaluation surplus	-	248,711,073
Book value of deletions during the period	(110,436,637)	(27,839,438)
Depreciation charged during the period	(140,598,292)	(182,540,222)
Closing Book Value	2,434,201,386	2,420,908,614
6.1	Cost of Additions in Property, Plant and Equipment:
	Land - freehold	50,473,059	188,544,101
	Building - on freehold land	-	73,041,972
	Plant and machinery	181,809,486	42,689,147
	Furniture and fixtures	132,800	672,601
	Vehicles	26,641,810	6,953,910
	Electric installations	2,655,600	18,870,340
	Office equipments	2,614,946	1,908,968
		264,327,701	332,681,039
6.2	Cost of Deletions in Property, Plant and Equipment:
	Plant & machinery	114,798,998	40,768,397
	Vehicles	1,496,840	8,613,365
		116,295,838	49,381,762

7. CAPITAL WORK IN PROGRESS

Building - on freehold land	60,965,971	21,963,533
Plant & machinery	816,146	51,907,666
	61,782,117	73,871,199

1. DATE OF AUTHORIZATION
   These accounts have been approved by the Board of Directors on April 29, 2024.
2. GENERAL
3. • Figures have been rounded off to the nearest rupee.
   • Comparative figures have been rearranged/reclassified wherever necessary for the purpose of comparison.

2024

			4
		832.516	5,992.082
105.708		660.881	5345.957
78.74			275.015
	2023	2024
12.09	5,345,956,842	5,992,081,861
25.97	660,880,891	832,516,104
91.19	292,104,344	558,460,612
78.74	122,359,691	218,705,724
100.16	169,744,653	339,754,870
1.10	64,037,113	64,739,653
160.17	105,707,540	275,015,217
160.11	1.78	4.63
	4.966	19.97
		264.328
	830
		480
			2024	29
		2024