Blessed Textiles : Transmission of Quarterly Report for the Period Ended - September 2023

UG

of Companies

FIRST QUARTERLY

ACCOUNTS 2023-2024

(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 first quarter ended September 30, 2023.

Significant Financial Performance for the First Quarter Ended September 30, 2023;

Loss after tax for the first quarter ended September 30, 2023 is PKR 281.357 million as compared to the profit after tax amounting PKR 326.769 million in the corresponding period September 30, 2022.

Loss per share for the first quarter ended September 30, 2023 is PKR (43.74) (Sept 30 2022: EPS PKR 50.80).

Break-up value of the share as on September 30, 2023 is PKR 1,455.79 (June 30, 2023: PKR 1,499.53). The current ratio as on September 30, 2023 is 1.58 (June 30, 2023:1.59).

Challenges for Textile Industry

The textile is Pakistan's largest manufacturing industry, accounting for a sizable portion of the country's GDP, employments and inflow of foreign exchange in the country. The textile industry is vertically integrated, with operations spanning the whole textile value chain, from cotton ginning to finished products in the form fashion apparel, bed sheets, draperies and blankets. However, the sector is confronted with a number of issues, including high energy costs, high borrowing cost and fierce competition from other textile-producing countries.

The regional competitors have clear advantage over Pakistan as far as energy and borrowing costs are concerned hence, their pricing is more competitive to the foreign buyers as compared to Pakistan. Besides, the availability of raw cotton in the country is also a challenging in recent past since we have relied on import for procurement of raw cotton from USA, Brazil, Australia, South Africa, Turkey, Egypt etc.

It seems that year 2023 will be comparatively more challenging for textile industry as global recession, energy shortages, high costs, and declining orders of low-cost garments took their toll on Pakistani textiles. They global inflation reduces consumer demand with large textiles henceforth, forcing buyers to cut back on fashion purchases or choose for less expensive alternatives as their energy and grocery prices rose.

Fortunately, cotton production seems significant growth in Pakistan and it's anticipated that it can reach upto up to 8.5 million bales during the 2023-24 season. Though, State Bank of Pakistan's have maintained the benchmark interest rate at 22 percent, it's likely that the policy rate will go down in next MPC meeting since the inflation easing down to 27.40 percent in August 23 from 37.97 percent in May 2023.

We recommend that government should devise lucrative polices for industrial sector to promote renewal energy initiatives as solar energy is well-suited to the textile industry, as it can be used to power machines and equipment used in the production process. It will lighten the carbon footprint of the nation's power generation activities while reducing dependency on imported fuels.

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 Shaheen	Mohammad Salim
(Director)	(Director)
Dated: 27th October, 2023

Since the CEO is unavailable in Pakistan, the financial statements and director's review have been signed by two directors.
Blessed Textiles Limited	2

BLESSED TEXTILES LIMITED

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2023

	Note	30-Sep-23		30-Jun-23
		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	102,660,500
Retained earnings		2,196,634,289	2,477,991,507
TOTAL EQUITY		9,363,614,789	9,644,972,007
LIABILITIES
NON-CURRENT LIABILITIES
Long term finances
	4,318,822,555		4,452,609,765
Long term payables	7	697,199,655		676,623,553
Employees retirement benefits		254,776,780		235,492,661
Deferred taxation		269,132,925		269,132,925
Deferred grant		61,696,215		65,937,572
		5,601,628,130	5,699,796,476
CURRENT LIABILITIES
Trade and other payables
	1,858,275,255		1,675,260,606
Unclaimed dividend		8,598,269		8,613,908
Accrued interest/profit		693,997,938		629,628,589
Short term borrowings		8,575,218,311		9,243,031,713
Current portion of non-current liabilities		427,510,878		368,669,904
		11,563,600,651	11,925,204,720
TOTAL LIABILITIES		17,165,228,781	17,625,001,196
CONTINGENCIES AND COMMITMENTS	8	-	-
TOTAL EQUITY AND LIABILITIES		26,528,843,570	27,269,973,203

The annexed notes from 1 to 17 form an integral part of these interim financial statements.

Director

Chief Financial Officer

Director

Blessed Textiles Limited

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BLESSED TEXTILES LIMITED

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2023

	Note	30-Sep-23		30-Jun-23
		Rupees		Rupees
		[Un-audited]		[Audited]
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment	9
8,173,569,593		8,313,996,317
Long term deposits		50,441,329		50,441,329
		8,224,010,922	8,364,437,646
CURRENT ASSETS
Stores and spares
	224,555,429		219,827,850
Stock in trade		12,350,792,861		13,817,307,187
Trade receivables		3,117,403,694		2,343,689,065
Short term deposits		594,090,577		389,590,577
Advances, prepayments and other receivables		265,496,041		215,319,703
Sales tax refundable/adjustable		662,071,605		1,126,810,553
Advance income tax/income tax refundable		273,086,039		311,363,436
Cash and bank balances		817,336,402		481,627,186
		18,304,832,648	18,905,535,557
TOTAL ASSETS		26,528,843,570	27,269,973,203

The annexed notes from 1 to 17 form an integral part of these interim financial statements.

Director

Chief Financial Officer

Director

Blessed Textiles Limited

4

BLESSED TEXTILES LIMITED

STATEMENT OF PROFIT OR LOSS

FOR THE THREE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

		Nine months period ended
	Note	30-Sep-23		30-Sep-22
		Rupees		Rupees
Revenue from contracts with customers - net		7,916,765,215	5,413,974,764
Cost of sales		(7,290,313,329)	(4,816,149,248)
Gross profit		626,451,886	597,825,516
Selling and distribution expenses
	(112,210,685)		(137,613,004)
Administrative expenses		(67,621,613)		(63,847,493)
Other expenses		-		(28,334,358)
		(179,832,298)	(229,794,855)
Impairment reversals for expected credit losses		5,253,515	94,367,492
		451,873,103	462,398,153
Other income		39,426,667	11,797,549
Operating profit		491,299,770	474,195,702
Finance cost		(655,165,377)	(67,598,673)
(Loss) / profit before taxation		(163,865,607)	406,597,029
Provision for taxation	10	(117,491,611)	(79,828,449)
(Loss) / profit after taxation		(281,357,218)	326,768,580
(Loss) / earnings per share - basic and diluted		(43.74)	50.80

The annexed notes from 1 to 17 form an integral part of these interim financial statements.

Director

Chief Financial Officer

Director

Blessed Textiles Limited

5

BLESSED TEXTILES LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

	Nine months period ended
	30-Sep-23	30-Sep-22
	Rupees	Rupees
Other comprehensive income	-	-
(Loss) / profit after taxation	(281,357,218)	326,768,580
Total comprehensive income	(281,357,218)	326,768,580

The annexed notes from 1 to 17 form an integral part of these interim financial statements.

Director

Chief Financial Officer

Director

Blessed Textiles Limited

6

BLESSED TEXTILES LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE THREE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

						Loan from
		Issued		General		directors		Retained		Total
		share capital		reserve		and sponsors		earnings		equity
		Rupees		Rupees		Rupees		Rupees		Rupees
As at 01	July 2022 - [Audited]	64,320,000	7,000,000,000	-	1,952,231,183	9,016,551,183
Comprehensive income
Profit after taxation
-		-		-		326,768,580		326,768,580
Other comprehensive income	-		-		-		-		-
Total comprehensive income	-	-	-	326,768,580	326,768,580
As at 30	September 22	64,320,000	7,000,000,000	-	2,278,999,763	9,343,319,763
As at 01	July 2023 - [Audited]	64,320,000	7,000,000,000	102,660,500	2,477,991,507	9,644,972,007

Comprehensive income

Loss after taxation

Other comprehensive income

Total comprehensive income

-

-

-

-

-

-

-

-

-

(281,357,218)

-

(281,357,218)

(281,357,218)

-

(281,357,218)

As at 30 September 23

64,320,000

7,000,000,000

102,660,500

2,196,634,289

9,363,614,789

The annexed notes from 1 to 17 form an integral part of these interim financial statements.

Director

Chief Financial Officer

Director

Blessed Textiles Limited

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BLESSED TEXTILES LIMITED

CONDENSED INTERIM STATEMENT OF CASH FLOWS [UN-AUDITED]

FOR THE THREE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

	Note	Nine months period ended
	30-Sep-23	30-Sep-22
		Rupees	Rupees
CASH FLOW FROM OPERATING ACTIVITIES
Cash generated from / (used in) operations	11	1,791,897,009	599,492,615
Payments for:
Employees retirement benefits		(5,525,881)	(4,258,645)
Interest/profit on borrowings		(563,392,788)	(17,035,631)
Income tax		(79,214,214)	(79,208,275)
Net cash generated from / (used in) operating activities		1,143,764,126	498,990,064

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment

Proceeds from disposal of property, plant and equipment Long term deposits

Net cash used in investing activities

CASH FLOW FROM FINANCING ACTIVITIES

(61,038,276)

-

-

(61,038,276)

(794,030,178)

-

(2,967,744)

(796,997,922)

Long term finances obtained	-		670,169,363
Repayment of long term finances	(79,187,593)		(101,023,545)
Net increase in short term borrowings	(667,813,402)		(2,081,803,555)
Dividend paid	(15,639)		(88,343)
Net cash used in financing activities	(747,016,634)	(1,512,746,080)
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS	335,709,216	(1,810,753,938)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	481,627,186	2,578,010,074
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	817,336,402	767,256,136

The annexed notes from 1 to 17 form an integral part of these interim financial statements.

Director

Chief Financial Officer

Director

Blessed Textiles Limited

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BLESSED TEXTILES LIMITED

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS [UN-AUDITED]

FOR THE THREE MONTHS PERIOD ENDED 30 SEPTEMBER 2023

1. LEGAL STATUS AND OPERATIONS
   Blessed Textiles Limited ['the Company'] was incorporated in Pakistan as a Public Limited Company under the repealed Companies Ordinance, 1984 and is listed on Pakistan Stock Exchange Limited. The Company is primarily engaged in the manufacture and sale of yarn and woven fabric, however, it is also engaged in the generation of electricity for self consumption. The registered office of the Company is situated at Umer House, 23/1, Sector 23, S.M. Farooq Road, Korangi Industrial Area, Karachi. The manufacturing facility is located at 18 KM, Feroze Wattoan, Sheikhupura Road, District Sheikhupura in the province of Punjab.
2. BASIS OF PREPARATION
   These interim financial statements are un-audited and have been presented in condensed form and do not include all the information as is required to be provided in a full set of annual financial statements. These interim financial statements should be read in conjunction with the audited financial statements of the Company for the year ended 30 June 2023.

2.1 Statement of compliance

These interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprises of:

• International Accounting Standard 34 - Interim Financial Reporting, issued by International Accounting Standards Board [IASB] as notified under the Companies Act, 2017; and
• Provisions of and directives issued under the Companies Act, 2017

Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

2.2 Basis of measurement

These interim financial statements have been prepared on the historical cost basis except for the following items, which are measured on an alternative basis as at the reporting date.

Items	Measurement basis
Financial liabilities	Amortized cost
Financial assets	Fair value/amortized cost
Employee retirement benefits	Present value

1. Judgments, estimates and assumptions
   The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions and judgements are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the result of which forms the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
   Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.
2. Functional currency
   These interim financial statements have been prepared in Pak Rupees which is the Company's functional currency. The amounts reported in these interim financial statements have been rounded to the nearest Rupees unless specified otherwise.
3. Date of authorisation for issue
   These interim financial statements have been approved by the Board of Directors of the Company and authorized for issue on 27 October 2023.

3 NEW AND REVISED STANDARDS, INTERPRETATIONS AND AMENDMENTS EFFECTIVE DURING THE PERIOD.

The following new and revised standards, interpretations and amendments are effective in the current period but are either not relevant to the Company or their application does not have any material impact on the interim financial statements of the Company other than presentation and disclosures, except as stated otherwise.

3.1 Reference to the Conceptual Framework (Amendments to IFRS 3 - Business Combinations)

The amendments update an outdated reference to the Conceptual Framework in IFRS 3 without significantly changing the requirements in the standard.

Blessed Textiles Limited

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