Bhanero Textile Mills : Transmission of Quarterly Report for the Period Ended

UG

of Companies

THIRD QUARTERLY ACCOUNTS 2022-2023

(UN - AUDITED)

UMER GROUP OF COMPANIES

BHANERO TEXTILE MILLS LIMITED

Vision

A premier quality company providing quality products by maintaining an excellent level of ethical & professional standards.

Mission Statement

To become a leading manufacturer of textile products globally and explore the new era to achieve the highest level of success.

Bhanero Textile Mills Ltd

1

Directors' Review

On behalf of the board of directors of Bhanero Textile Mills Limited, I am pleased to present the unaudited condensed interim financial statements for the nine months ended March 31, 2023.

Significant Financial Performance for the Nine Months Ended March 31, 2023:

Profit after tax for the nine months ended March 31, 2023 is PKR 919.290 million as compared to PKR 2,023.891 million in the corresponding period March 31, 2022.

Earnings per share for the nine months ended March 31, 2023 is PKR 306.43 (March 31, 2022: PKR 674.63).

Break-up value of the share as on March 31, 2023 is PKR 3,386.77 (June 30, 2022: PKR 3,101.96). The current ratio as on March 31, 2023 is 1.97 (June 30, 2022:4.31).

Outlook of Textile Sector

The environment is not conducive at all for the textile sector in the country and unless immediate measures will be taken there's a high probability that this sector quickly slipping into a disastrous situation since it is losing credibility and market share among international buyers. The major export-focused industry is in a downward spiral trend in world-wide shipments in the current fiscal year 2022-23 as global buyers are now reluctant to place orders due prevailing uncertainty and challenges faced by the country. As per spokespersons of leading textile associations, if current situation persists there's a high probability that we are likely to fall short of $25 billion export target.

Among the other issues, the production of cotton crop is the foremost factor since there has been a historical decline by 37.23 percent this year. Of the industry requirement of 15 million bales of cotton, the country has only produced meagre 4.6 million bales this year according to data released by PCGA on 1stJanuary, 2023. Primarily, heavy downpours and river flooding are the main reasons of decline on cotton production which washed away standing crops, particularly in the cotton belts of Sindh and Punjab however, factors like unavailability of lint, liquidity crunch and energy shortages and non-utilization of latest developed variety of cotton seed shouldn't have been ignored too.

The other reasons like intense global competition from Bangladesh, Vietnam, India, and Thailand coupled with lack of modernization of the machinery and equipment, lack of investment, rising borrowing costs resulting in overall decline of textile sector over the period. Since the country is in desperate needs of FCY inflows, the government should immediately addressed the core issues in particular release of imported consignment. As per APTMA, the industry barely holds stocks for two months and if the imported cotton is not released promptly, then the industry will entirely shut down by the end of March 2023 leaving massive unemployment of 25 million people associated with the sector.

New Spinning Unit

As stated earlier, the erecting work is still in process for the plant and machinery and the management is putting all efforts to commence the production by July 2023.

Acknowledgement

The Board appreciates the contribution of employees and continual supports all financial institutions.

On behalf of the Board

___________________	_______________________
Khurrum Salim - CEO	Mohammad Salim - Director
Dated: 28th April, 2023

Bhanero Textile Mills Ltd

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Bhanero Textile Mills Limited

Condensed Interim Statement of Financial Position (Un-Audited) As at March 31, 2023

Note

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized capital

6,000,000 (June 30, 2022: 6,000,000) ordinary shares of Rs.10 each

Issued, subscribed and paid up capital Reserves

Loan from directors and sponsors4 Unappropriated profit

.

NON CURRENT LIABILITIES Long term financing - secured

Long term payables5 Staff retirement benefits

Deferred taxation Deferred government grant

CURRENT LIABILITIES Trade and other payables

Unclaimed dividend

Accrued interest/markup

Short term borrowings - secured Current portion of non current liabilities Provision for taxation - net

CONTINGENCIES AND COMMITMENTS

6

TOTAL EQUITY AND LIABILITIES

March 31, 2023

Un-Audited

Rupees

60,000,000

30,000,000

8,000,000,000

149,618,200

1,980,683,719

10,160,301,919

3,831,313,841

405,291,835

231,269,863

231,555,260

987,756,799

5,687,187,598

1,682,817,340

1,722,649

120,335,529

4,888,233,792

418,985,958

-

7,112,095,268

-

22,959,584,785

June 30, 2022

Audited

Rupees

60,000,000

30,000,000

8,000,000,000

-

1,275,893,956

9,305,893,956

2,816,943,750

285,713,297

208,934,489

231,555,260

673,119,963

4,216,266,759

1,579,460,996

1,519,833

31,367,006

-

336,847,787

73,746,474

2,022,942,096

-

15,545,102,811

Note

ASSETS

NON CURRENT ASSETS

Property, plant and equipment

7

Long term deposits

CURRENT ASSETS

Stores, spares and loose tools

Stock in trade

Trade debts

Short Term Investments8 Loans and advances

Trade deposits and short term prepayments Other receivables

Advance income tax / Income tax refundable Sales tax refundable

Cash and bank balances

TOTAL ASSETS

March 31, 2023

Un-Audited

Rupees

8,911,769,534

41,596,116

8,953,365,650

304,955,149

9,512,382,761

1,756,812,339

86,909,836

126,568,046

396,592,697

30,966,391

39,269,743

999,441,409

752,320,764

14,006,219,135

22,959,584,785

June 30, 2022

Audited

Rupees

6,777,100,444

41,596,116

6,818,696,560

150,348,628

5,101,913,563

1,883,524,023

-

65,701,413

246,263,643

28,945,773

-

608,870,900

640,838,308

8,726,406,251

15,545,102,811

The annexed notes form an integral part of these condensed interim financial information.

CHIEF EXECUTIVE	DIRECTOR	CHIEF FINANCIAL OFFICER
	Bhanero Textile Mills Ltd	3

Bhanero Textile Mills Limited

Condensed Interim Statement of Profit or Loss (Un-Audited) For The Nine Months Ended March 31, 2023

Nine Months Ended

March 31, 2023

March 31, 2022

Three Months Ended

March 31, 2023

March 31, 2022

Sales

Cost of sales

Gross profit

Distribution cost

Administrative expenses

Other income

Other operating expenses

Finance cost

Profit before taxation

Provision for taxation

9

Profit after taxation

Rupees

12,841,768,978

10,950,838,742

1,890,930,236

271,731,569

190,516,246

462,247,815

299,129,442

1,727,811,863

78,036,753

497,041,604

575,078,357

1,152,733,506

233,443,743

919,289,763

Rupees

12,312,430,092

9,625,578,474

2,686,851,618

315,741,562

158,133,659

473,875,221

231,748,422

2,444,724,819

152,863,116

86,380,741

239,243,857

2,205,480,962

181,590,229

2,023,890,733

Rupees

4,818,332,611

4,119,457,468

698,875,143

81,410,256

66,222,638

147,632,894

138,517,485

689,759,734

23,446,127

288,751,395

312,197,522

377,562,212

95,366,230

282,195,982

Rupees

4,588,576,050

3,659,670,835

928,905,215

150,725,273

57,922,740

208,648,013

13,223,230

733,480,432

48,863,133

22,159,923

71,023,056

662,457,376

73,251,415

589,205,961

Earning per share - basic and diluted	306.43	674.63

The annexed notes form an integral part of these condensed interim financial information.

94.07

196.40

CHIEF EXECUTIVE

DIRECTOR

CHIEF FINANCIAL OFFICER

Bhanero Textile Mills Ltd

4