Blessed Textiles : Transmission of Quarterly Report for the Period Ended

UG

of Companies

HALF YEARLY ACCOUNTS 2022-2023

(UN - AUDITED)

UMER GROUP OF COMPANIES

BLESSED TEXTILES LIMITED

Vision

A leader company maintaining an excellent level of ethical and professional standards.

Mission Statement

To become an exceptional manufacturer of textile products global market.

Blessed Textiles Limited

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Directors' Review

On behalf of the board of directors of Blessed Textiles Limited, I am pleased to present the unaudited condensed interim financial statements for the half year ended December 31, 2022.

Significant Financial Performance for the Half Year Ended December 31, 2022;

Profit after tax for the half year ended December 31, 2022 is PKR 521.595 million as compared to PKR 1,528.933 million in the corresponding period December 31, 2021.

Earnings per share for the half year ended December 31, 2022 is PKR 81.09(December 31, 2021: PKR 237.71).

Break-up value of the share as on December 31, 2022 is PKR 1,465.88 (June 30, 2022: PKR 1,401.83). The current ratio as on December 31, 2022 is 1.79 (June 30, 2022:2.58).

Outlook of Textile Industry

The textiles exports contracted for the fifth month in a row and dipping by 15.42 per cent YoY basis to $2.21 billion in January 2023. During July to January of 2022-23, exports were down by 7.16 percent at $16.46 billion compared to $17.74 billon the corresponding period last year. In case the textile exports remain on the downward trajectory, it will be difficult to achieve target export during the fiscal year which eventually aggravates the situation for the country which is already running out FCY reserves. The small factories completely halt their operations whereas large units have reduced their production between 30 to 50 percent owing to rising borrowing cost, unavailability of cotton, shortage of energy sources, volatility of exchange rate, delay in settlement of sales tax and income tax refunds and hurdles in opening of letter of credits.

The government is also considering for discontinuing power subsidy, withdrawing of duty drawbacks on local taxes and levies by the government and enhancing sales tax on raw materials for the export textile sector under the negotiations with IMF. If implemented this will have severe implication for the already struggling textile sector since the textile exports are major source of FCY inflow and employment in the country.

The global textile market is has become extremely massive where competition is usually between regional peers like India, Pakistan, Bangladesh and China. The government's decision for discontinuation of the Regionally Competitive Energy Tariff (RCET) for five export-oriented sectors is major blow for the national economy, potentially leading to reduced competitiveness and revenue losses for the affected industries. Unfortunately, both the current political and economic scenario of the country is an impediment for the growth of textile exports since the level playing field is not available to the textile sector with the regional competitors.

New Spinning Unit

Since the remaining machinery has reached the premises the revised timelines for completion of erecting work is March 2023 hence, the management is hopeful to commence the production by April 2023.

Acknowledgement

The Board highly appreciates the contribution of employees, bankers, corporate regulators, stakeholders and other government authorities for their continuous support.

On behalf of the Board

___________________		____________________
Muhammad Amin		Mohammad Salim
(Chief Executive Officer)	Blessed Textiles Limited	(Director)	3
Dated: 24th February, 2023

Blessed Textiles Limited

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BLESSED TEXTILES LIMITED

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2022

	Note	31-Dec-22		30-Jun-22
		Rupees		Rupees
		[Un-audited]		[Audited]
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized share capital		65,000,000	65,000,000
Issued share capital		64,320,000	64,320,000
General reserve		7,000,000,000	7,000,000,000
Loan from directors and sponsors	6	102,660,500	-
Retained earnings		2,261,569,911	1,952,231,183
TOTAL EQUITY		9,428,550,411	9,016,551,183
LIABILITIES
NON-CURRENT LIABILITIES
Long term finances
	3,827,112,098		3,061,920,470
Long term payables	7	507,627,068		416,759,648
Employees retirement benefits		203,039,865		185,493,380
Deferred taxation		222,777,079		222,777,079
Deferred grant		75,763,329		85,293,434
		4,836,319,439	3,972,244,011
CURRENT LIABILITIES
Trade and other payables
	1,033,765,408		1,230,672,526
Unclaimed dividend		8,674,473		7,809,531
Accrued interest/profit		163,770,365		60,290,812
Short term borrowings		7,307,176,203		2,559,054,165
Income tax payable		74,082,631		114,419,490
Current portion of non-current liabilities		330,888,111		364,483,938
		8,918,357,191	4,336,730,462
TOTAL LIABILITIES		13,754,676,630	8,308,974,473
CONTINGENCIES AND COMMITMENTS	8	-	-
TOTAL EQUITY AND LIABILITIES		23,183,227,041	17,325,525,656

The annexed notes from 1 to 20 form an integral part of these interim financial statements.

Director

Chief Financial Officer

Chief Executive

Blessed Textiles Limited

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