Crescent Steel and Allied Products : Transmission of Quarterly Report for the Period Ended 31 December 2022

CONTENTS

COMPANY INFORMATION

Company Profile	01
Company Information	03

DIRECTORS' REPORT

Directors' Report	07
Directors' Report (Urdu)	10

UNCONSOLIDATED FINANCIAL STATEMEMENTS

Independent Auditor's Review Report to the Members	17
Condensed Interim Unconsolidated Statement of Financial Position	18
Condensed Interim Unconsolidated Statement of Profit or Loss and
other Comprehensive Income	19
Condensed Interim Unconsolidated Statement of Cash Flows	20
Condensed Interim Unconsolidated Statement of Changes in Equity	21
Notes to the Condensed Interim Unconsolidated Financial Statements	22

CONSOLIDATED FINANCIAL STATEMEMENTS

Condensed Interim Consolidated Statement of Financial Position	41
Condensed Interim Consolidated Statement of Profit or Loss and
other Comprehensive Income	42
Condensed Interim Consolidated Statement of Cash Flows	43
Condensed Interim Consolidated Statement of Changes in Equity	44
Notes to the Condensed Interim Consolidated Financial Statements	45

COMPANY PROFILE

Crescent Steel and Allied Products Limited is a conglomerate corporation listed on the Pakistan Stock Exchange as 'CSAP'. Starting commercial operations with a line pipe manufacturing facility in March 1987, today the company operates businesses in four defined sectors - engineering, textiles, capital markets and power - spread over six campuses in Pakistan. The Company operates five divisions and two wholly owned subsidiaries.

STEEL DIVISION - SPIRAL

PIPE PRODUCTION LINE,

PIPE COATINGS AND

FABRICATION

The Company's Steel Division operates two Helical Seam Submerged Arc Welded steel pipe manufacturing lines and an external coating application line at Nooriabad and, a fabrication facility - Shakarganj Engineering - in Dalowal, Faisalabad. The pipe manufacturing facility produces Submerged Arc Welded Helical seam carbon steel pipes in diameters ranging from 8 to 120 inches (219mm - 3,048mm), thickness up to 1 inch and in steel grade up to API 5L X-100 or equivalent. The unit has authorization to use API monogram of the American Petroleum Institute (API) - the highest international standard accredited for quality of steel line pipe in the Oil and Gas Sector and also continues to retain the ISO 9001 certification.

The Coating Plant is capable of applying various flow efficient and corrosion protection coatings such as Multilayer Polyolefin and Polypropylene coatings, Single Layer Fusion Bonded Epoxy coatings, Liquid Epoxy coatings and High Temperature Heat Shrink Tape coatings on steel pipes ranging from 4" - 60" (114 mm - 1,524 mm), tape coatings on pipe diameter above 60" (1,524 mm) and internal epoxy coatings on diameters ranging from 8"- 60" (219 mm - 1,524 mm).

Crescent Steel is a responsible local line pipe manufacturer that continues to serve as a partner in

important national energy projects with demonstrated commitment in terms of quality, experience, financial strength and technical expertise.

The fabrication unit has the capability to fabricate and erect reliable, quality machinery at par with international standards and designs, especially for the sugar and cement industry. The unit specializes in the manufacture and supply of cane shredders, juice heaters, evaporators, batch and continuous vacuum pans, centrifugal machines, stainless steel deep bed filters, spray clusters, multi-jet condensers, perforated plates, vibrio screens and high voltage transformer tanks.

The unit also has the capability to fabricate and erect machinery used in the secondary steel sector and it was leveraged for partial fabrication of a continuous caster machine structure, girders for overhead cranes and a vibratory scrap feeder for the billet manufacturing units of the steel industry.

COTTON DIVISION -

COTTON YARN SPINNING

UNIT

The Cotton Division comprises of one spinning unit with 19,680 spindles and is located in Jaranwala. The unit operating as "Crescent Cotton Products" (CCP), has a daily production capacity of 385 bags of high quality cotton/synthetic carded yarn, in counts ranging from 10s to 31s.

CCP is a division of the company but its operating results are shown separately. As a division, it is registered with the Ministry of Textile Industry Pakistan and All Pakistan Textile Mills Association (APTMA). It produces quality cotton/synthetic yarn with value addition of slub, siro and compact attachments.

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CCP is equipped with modern high-tech European and Japanese machinery ensuring a high-quality yarn making process, producing various counts from 10s to 31s and has a notional capacity (based on 20s) of 6.36 million kilograms per annum.

The brand is known for its high quality and hence demands a premium.

INVESTMENT AND

INFRASTRUCTURE

DEVELOPMENT DIVISION

The division manages an investment portfolio in securities (shares, bonds and other securities), across diversified sectors and investment properties in order to meet specified investment goals at a given risk appetite, to maximize returns.

The portfolio is balanced in a way that spreads risk over a diversified spectrum and offers potential for growth as well as dividend yields, while real estate investments are held for rental as well as long term appreciation.

CS ENERGY DIVISION

The primary function of this unit is to provide electricity internally to Crescent Hadeed Division - Billet Manufacturing Unit and generate, accumulate, distribute, sell and supply electricity to distribution companies, as permitted.

Initially equipped with a 15MW co-generation, thermal generation power plant at Bhone, Punjab, and the unit commenced commercial operations in December 2014. The unit also employs a 16.5MW condensing and extraction turbine to process steam during off-season periods to ensure uninterrupted supply to Crescent Hadeed Division throughout the year. The generation plant use bagasse in the combustion process to produce power and process steam.

CRESCENT HADEED

DIVISION - BILLET

MANUFACTURING UNIT

The principal activity of the unit is to manufacture and sale Steel Billet through a Steel Melting plant which is located at Bhone, District Jhang, Punjab. It commenced commercial operations in January 2016.

The unit operates a melt shop (equipped with two induction melting furnaces and a continuous casting machine) with an annual production capacity of 85,000 MT of steel billets in sizes ranging from 100mm X 100mm to 150mm X 150mm and a standard length of 6 meters. Billets manufactured by the unit are used by re-rolling mills to manufacture bars and other steel long products for use in the construction and engineering sectors.

SUBSIDIARY COMPANIES

CS CAPITAL (PRIVATE) LIMITED

CS Capital (Private) Limited is a fully owned subsidiary of Crescent Steel. The principal activity of the subsidiary is to manage and organically grow investment portfolios in stocks, commodities and other securities, both strategic and short term.

SOLUTION DE ENERGY (PRIVATE) LIMITED

Solution de Energy which was previously operating as a fully owned subsidiary of CS Energy (Private) Limited, now operates as a fully owned subsidiary of Crescent Steel, post amalgamation of CS Energy (Private) Limited and Crescent Steel.

The company was incorporated in October 2013, its principal activity being to build, own, operate and maintain a 100 MW solar power project.

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COMPANY INFORMATION

BOARD OF DIRECTORS	HUMAN RESOURCE AND
Ahmad Waqar	REMUNERATION COMMITTEE
Chairman, Non-Executive Director	Nadeem Maqbool
Ahsan M. Saleem
Chairman, Non-Executive Director (Independent)
Chief Executive Officer
Ahmad Waqar
Farah Ayub Tarin
Member, Non-Executive Director
Non-Executive Director (Independent)
Farah Ayub Tarin
Farrukh V. Junaidy
Member, Non-Executive Director (Independent)
Non-Executive Director (Independent)
Nasir Shafi
Muhammad Kamran Saleem
Member, Non-Executive Director
Non-Executive Director (Independent)

Nadeem Maqbool

Non-Executive Director (Independent)

Nasir Shafi

Non-Executive Director

GOVERNANCE AND NOMINATION COMMITTEE

S.M. Ehtishamullah	Ahmad Waqar
Non-Executive Director	Chairman, Non-Executive Director
	Ahsan M. Saleem
ACTING COMPANY	Member, Chief Executive Officer
Farrukh V. Junaidy
SECRETARY
Member, Non-Executive Director (Independent)
Muhammad Saad Thaniana	RISK MANAGEMENT COMMITTEE

AUDIT COMMITTEE

S.M. Ehtishamullah

Chairman, Non-Executive Director

Farrukh V. Junaidy	Farah Ayub Tarin
Chairman, Non-Executive Director (Independent)
Member, Non-Executive Director (Independent)
Nadeem Maqbool	Muhammad Kamran Saleem
Member, Non-Executive Director (Independent)
Member, Non-Executive Director (Independent)
Nasir Shafi
Member, Non-Executive Director
S.M. Ehtishamullah
Member, Non-Executive Director

Disclaimer: Other than the position of Chairman and CEO, listings are in alphabetical order

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