Amtex : Transmission of Quarterly report for the Period Ended December 31 2023

AMTEX LIMITED

Half Yearly Report

December 31, 2023

A M T E X

CONTENTS

COMPANY INFORMATION

DIRECTOR'S REPORT

AUDITOR'S REVIEW REPORT

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION CONDENSED INTERIM STATEMENT OF PROFIT & LOSS ACCOUNT CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME CONDENSED INTERIM CASH FLOW STATEMENT

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY NOTES TO THE CONDNSED INTERIM FINANCIAL STATEMENTS

Company Information

Board of Directors
Mr. Muhammad Ahsan	Chairman
Mr. Khurram Iftikhar	Chief Executive Officer
Mr. Shahzad Iftikhar
Mr. Nadeem Iftikhar
Mr. Suhail Maqsood Ahmed
Mr. Gul Muhammad Naz
Mrs.Bushra Bibi
Chief Financial Officer
Mr. Waheed Aslam
Company Secretary
Mr. Muhammad Raza Farooq
Audit Committee
Mr. Suhail Maqsood Ahmed	Chairman
Mr. Muhammad Ahsan
Mrs.Bushra Bibi
Human Resource & Remuneration Committee
Mr. Gul Muhammad Naz	Chairman
Mr. Suhail Maqsood Ahmed
Shahzad Iftikhar
Auditors
Zahid Jamil & Co.
Chartered Accountants
Legal Advisor
Mr. Aamir Nawaz Bhatti
Advocate High Court

Share Registrar Office

Vision Consulting Limited

3-C, LDA Flats, Lawrance Road, Lahore

Registered Office

P-225 Tikka Gali # 2 Montgomery Bazar, Faisalabad

Projects Locations

Punj Pullian Daewoo Road Faisalabad

Processing & Stitching Unit

Website

www.amtextile.com

DIRECTORS' REPORT

The Board of Directors of Amtex Limited presents herewith the Directors' Report together with the Company's un-audited financial information for the half year ended December 31, 2023.

Financial Results

The financial results for the period under review with comparative figures of previous period are presented hereunder to have a quick look on the performance of the Company.

		Quarter ended			Half Year ended
		December 31,		December 31,
		2023		2022			2023		2022
		Rupees		Rupees		Rupees		Rupees
Sales	701,451,660	323,711,635		1,427,189,368	679,068,236
Cost of sales	600,644,449	279,488,934		1,215,387,124	560,538,114
Gross Profit	100,807,211	44,222,701		211,802,244	118,530,122
Other operating income	20,042,980	6,648,727		23,906,980	276,887,540
Net profit / (loss) for the period	8,627,566	(30,004,048)		42,629,677	259,761,792
Earnings per share - Basic and diluted	0.03	(0.12)		0.16	1.00

During 1st half year under review company earned gross profit of Rs.211.80 million as compared to gross profit of Rs. 118.53 million in the corresponding period of last year and net profit of Rs. 42.62 million as compared to net profit of Rs. 259.76 million in the corresponding period of last year. Sales volume has significantly increased as compared to previous corresponding period and the company's total sales are Rs. 1,427.18 million in six months against sales of Rs. 679.06 million in the corresponding period of last year. Despite political instability, poor law and order situation, devaluation of currency and significantly increasing prices of utilities, fuel and energy, Company maintained its growth in terms of export volume and Company's sales significantly increased. Further the shareholders in Annual General Meeting held on October 28, 2023 have accorded approval for sale of Land & Building situated at 1 K.M. Khurrianwala Jaranwala Road Faisalabad. In said Annual General Meeting members unanimously approved aforementioned special business transaction. The entire sale proceeds of land and building will be utilized to settle liabilities of the banks.

Qualification in Auditors' Report to the Members

Regarding the "going concern" observation of auditors, directors of your company explain that the management is making all efforts to continue operations and to run the entity as a going concern. Company's continuity of operations and consistency in increasing sales volume since last couple of quarters clearly indicate that management's efforts and plans are effective and feasible. Moreover, the company is in process of selling certain properties mortgaged with the banks, the entire such sale proceeds will be paid to relevant charge holder banks to reduce the debt burden and to settle the litigation with these banks. The management of the company has already taken steps for extension and restructuring of loans from certain banks and negotiations with other banks of the company are in process. In view of steps mentioned above, the management is confident that it will be successful in its efforts and hence the company will be able to continue as a going concern.

Certain banks / financial institutions have filed suit against the Company for recovery of its financing and mark up so Company has not provided any mark up / cost of funds on the outstanding amount as also stated in notes to the accounts. Based on the legal opinion, the Company feels that, after institution of the suit, bank/financial institution is only entitled to cost of funds if so awarded by the Court in case the suit is awarded against the company. The levy of cost of funds and the quantum thereof shall be contingent on passing of the decree and rate prescribed by the State Bank of Pakistan during the period of pendency of the claim and discharge of decree, if passed by the Court.

Future outlook

Regardless of several barriers to trade, it is commendable that the Pakistan's textiles and apparel sector kept on endeavoring to sustain footprints in global markets and continued to explore new business avenues. Despite continually increasing prices of fuel and energy sales volume of company significantly improved as compared to last corresponding half year. The loans with certain banks have been restructured keeping in view the future cash flows and forecasts while negotiations with others banks are in progress. Management is confident that along with consistent increase in export volume company will be able to honor its commitments towards its financial partners and will successfully attain satisfactory level of viability.

Acknowledgement

The Directors of your Company would like to place on record their deep appreciation for the support of the customers, banks, financial institutions, regulators and shareholders and hope that this cooperation and support will also continue in future.

The Directors of your Company would also like to express their appreciation for the services, loyalty and efforts being continuously rendered by the executives, staff members and workers of the Company and hope that they will continue to do so in future.

For and on behalf of the Board

Khurram Iftikhar

Shahzad Iftikhar

Faisalabad

February 29, 2024

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