Samin Textiles Limited · Ms. Nayab Ayaz Auditors Grant Thornton Anjum Rahman Chartered Accountants. 03 Interim Financial Report 02 Samin Textiles Limited ... (here-in-after referred

Samin Textiles Limited

Interim Financial Report

for the half year ended

December 31, 2017

Contents

Company Information

Directors’ Review

Auditors’ Report

Condensed Interim Balance Sheet

Condensed Interim Profit and Loss Account

Condensed Interim Statement of Comprehensive Income

Condensed Interim Statement of Cash Flows

Condensed Interim Statement of Changes in Equity

Notes to the Condensed Interim Financial Information

02

03

05

06

07

08

09

10

11

Contents

Company Information

Directors’ Review

Auditors’ Report

Condensed Interim Balance Sheet

Condensed Interim Profit and Loss Account

Condensed Interim Statement of Comprehensive Income

Condensed Interim Statement of Cash Flows

Condensed Interim Statement of Changes in Equity

Notes to the Condensed Interim Financial Information

02

03

05

06

07

08

09

10

11

03


02


Directors’ Review

The board of directors of your company is pleased to present before you the un-audited financial statements duly

reviewed by the auditors for the half year ended December 31, 2017. These financial statements have been

prepared in compliance with IAS – 34 “Interim Financial Reporting” and are submitted under section 245 of the

companies ordinance 1984.

Financial Highlights

The figures tabulated above reveal that during the period under review the company posted net sales amounting

to Rs200.824 million and a net loss of Rs167.300 million as compared to net sales of Rs584.730 million and net loss

of Rs79.120 million for the corresponding period of last financial year.

Due to paucity of working capital, the Company has changed its business model i.e. from Own raw material

purchase to Conversion / Order weaving. Due to this business model the sales values went down by 60% to 70%

during the period under review. Due to lack of orders, the plant is running on idle capacity i.e. less than 60%

capacity utilization, as such the fixed cost is heavy and not being absorbed in the cost of goods sold and couldn't

generate gross margins.

Future Outlook / Strategy

The sponsors and the management have faith and belief in the textile business. The present lean period on textile

industry hasn't shaken their determination to stay in the business. As the entire textile sector especially the

weaving is facing the depressed market condition, the management is quite optimistic that it will bounce back and

those who can sustain the current pressure and cross through this rough patch will be able to get benefits of the

upcoming opportunities. They are committed to cater for the financial needs of the company for its survival and

revival.

The management is of the opinion that this is the time when government should come forward to support the

industry in terms of export rebate schemes and release of sales tax refunds. Such measures will put the industry

back to its own feet.

However, the management is cognizant of these facts and strives to take all necessary measures to turnaround the

company in a profitable unit. Cost cutting measures under all heads of account and financial support from the

sponsors is helping the company to survive till crossing the rough patch.

Acknowledgement:

We are grateful to all our stakeholders exclusively the bankers for their ongoing support and the employees of the

company for their commitment and hard work.

For and on behalf of the Board

Lahore : rd Dated : 23 February, 2018

Jehanzeb AminChief Executive

Half Year endedDecember 31, 2017

Half Year ended

December 31, 2016

Rupees in million

Sales - Net

Gross (Loss) / Profit

Other Operating Income

(Loss)/Profit After Tax

Depreciation

Cash Loss / Profit

200.824

(94.381)

2.360

(167.300)

36.673

(130.627)

584.730

3.142

0.167

(79.120)

18.295

(64.895)

Company Information

Legal Advisor

Imtiaz Saddiqui & Associates

Leading Banks

National Bank of Pakistan

Askari Bank Limited

Bank Alfalah Limited

Summit bank Limited

NIB Bank Limited

Allied Bank Limited

Pak Libya Holding Company (Private) Limited

Pak Oman Investment Company Limited

Soneri Bank Limited

Shares Registrar

Corplink (Pvt) Limited

Wings Arcade,

1-K, Commercial Model Town,

Lahore, Pakistan.

Tel: 92 - 42 -35839182

Fax: 92 - 42 - 35869037

Registered/Head Office

50-C, Main Gulberg,

Lahore, Pakistan.

Tel: 92 - 42 - 35753761

Fax: 92 - 42 - 35753688

Mills

th8 Kilometer,

Manga - Raiwaind Road,

District Kasur, Pakistan.

Board of Directors

Non-Executive Directors

Mrs. Mehvash Amin Chairman

Mr. Shehryar Amin

Mr. Tariq Jilani

Mr. Jamil Masud

Executive Directors

Mr. Jehanzeb Amin Cheif Executive

Mr. Safder Hussain Tariq

Independent Director

Mr. Qamber Hamid

Audit Committee

Mr. Qamber Hamid Chairman

Mr. Jamil Masud Member

Mr. Tariq Jilani Member

Human Resource & Remuneration Committee

Mr. Jamil Masud Chairman


Mr. Shehryar Amin Member

Chief Financial Officer


Company Secretary

Mr. Muhammad Tayyab

Chief Internal Auditor

Ms. Nayab Ayaz

Auditors

Grant Thornton Anjum Rahman

Chartered Accountants

03


02


Directors’ Review

The board of directors of your company is pleased to present before you the un-audited financial statements duly

reviewed by the auditors for the half year ended December 31, 2017. These financial statements have been

prepared in compliance with IAS – 34 “Interim Financial Reporting” and are submitted under section 245 of the

companies ordinance 1984.

Financial Highlights

The figures tabulated above reveal that during the period under review the company posted net sales amounting

to Rs200.824 million and a net loss of Rs167.300 million as compared to net sales of Rs584.730 million and net loss

of Rs79.120 million for the corresponding period of last financial year.

Due to paucity of working capital, the Company has changed its business model i.e. from Own raw material

purchase to Conversion / Order weaving. Due to this business model the sales values went down by 60% to 70%

during the period under review. Due to lack of orders, the plant is running on idle capacity i.e. less than 60%

capacity utilization, as such the fixed cost is heavy and not being absorbed in the cost of goods sold and couldn't

generate gross margins.

Future Outlook / Strategy

The sponsors and the management have faith and belief in the textile business. The present lean period on textile

industry hasn't shaken their determination to stay in the business. As the entire textile sector especially the

weaving is facing the depressed market condition, the management is quite optimistic that it will bounce back and

those who can sustain the current pressure and cross through this rough patch will be able to get benefits of the

upcoming opportunities. They are committed to cater for the financial needs of the company for its survival and

revival.

The management is of the opinion that this is the time when government should come forward to support the

industry in terms of export rebate schemes and release of sales tax refunds. Such measures will put the industry

back to its own feet.

However, the management is cognizant of these facts and strives to take all necessary measures to turnaround the

company in a profitable unit. Cost cutting measures under all heads of account and financial support from the

sponsors is helping the company to survive till crossing the rough patch.

Acknowledgement:

We are grateful to all our stakeholders exclusively the bankers for their ongoing support and the employees of the

company for their commitment and hard work.

For and on behalf of the Board

Lahore : rd Dated : 23 February, 2018

Jehanzeb AminChief Executive

Half Year endedDecember 31, 2017

Half Year ended

December 31, 2016

Rupees in million

Sales - Net

Gross (Loss) / Profit

Other Operating Income

(Loss)/Profit After Tax

Depreciation

Cash Loss / Profit

200.824

(94.381)

2.360

(167.300)

36.673

(130.627)

584.730

3.142

0.167

(79.120)

18.295

(64.895)

Company Information

Legal Advisor

Imtiaz Saddiqui & Associates

Leading Banks

National Bank of Pakistan

Askari Bank Limited

Bank Alfalah Limited

Summit bank Limited

NIB Bank Limited

Allied Bank Limited

Pak Libya Holding Company (Private) Limited

Pak Oman Investment Company Limited

Soneri Bank Limited

Shares Registrar

Corplink (Pvt) Limited

Wings Arcade,

1-K, Commercial Model Town,

Lahore, Pakistan.

Tel: 92 - 42 -35839182

Fax: 92 - 42 - 35869037

Registered/Head Office

50-C, Main Gulberg,

Lahore, Pakistan.

Tel: 92 - 42 - 35753761

Fax: 92 - 42 - 35753688

Mills

th8 Kilometer,

Manga - Raiwaind Road,

District Kasur, Pakistan.

Board of Directors

Non-Executive Directors

Mrs. Mehvash Amin Chairman

Mr. Shehryar Amin

Mr. Tariq Jilani

Mr. Jamil Masud

Executive Directors

Mr. Jehanzeb Amin Cheif Executive


Independent Director

Mr. Qamber Hamid

Audit Committee

Mr. Qamber Hamid Chairman

Mr. Jamil Masud Member


Human Resource & Remuneration Committee

Mr. Jamil Masud Chairman


Mr. Shehryar Amin Member

Chief Financial Officer


Company Secretary

Mr. Muhammad Tayyab

Chief Internal Auditor

Ms. Nayab Ayaz

Auditors

Grant Thornton Anjum Rahman

Chartered Accountants

200.824

(94.381)

2.360

(167.300)

36.673

(130.627)

584.730

3.142

0.167

(79.120)

18.295

(64.895)

05


Introduction

We have reviewed the accompanying condensed interim balance sheet of Samin Textiles Limited as at December 31, 2017

and the related condensed interim profit and loss account, condensed interim statement of comprehensive income,

condensed interim statement of cash flows, condensed interim statement of changes in equity together with the notes

forming part thereof for the half year then ended (here-in-after referred to as the “condensed interim financial

information”). Management is responsible for the preparation and presentation of this condensed interim financial

information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.

Our responsibility is to express a conclusion on this condensed interim financial information based on our review. The

figures of condensed interim profit and loss account and condensed interim statement of comprehensive income for the

quarters ended December 31, 2017 and 2016 have not been reviewed as we are required to review only the cumulative

figures for the half year ended December 31, 2017.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagement 2410, “Review of Interim

Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial information

consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical

and other review procedures. A review is substantially less in scope than an audit conducted in accordance with

International Standards on Auditing and consequently does not enable us to obtain assurance that we would become

aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim

financial information as of and for the half year ended December 31, 2017 is not prepared, in all material respects, in

accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.

Emphasis of Matter

Without qualifying our conclusion, we draw attention to note 1.2 to the accompanying condensed interim financial

information which describes that during the period ended December 31, 2017, the Company has incurred loss amounting

to Rs. 167.3 million mainly due to non-implementation of full BMR & E plans, sluggish market conditions for greige fabric in

the international market and shortage of working capital. These conditions indicate existence of uncertainties relating to

going concern status of the Company in foreseeable future. This financial information has, however, been prepared on a

going concern basis for the reasons, as more fully explained in note 1.2 to the financial information. Our conclusion is not

qualified in respect of this matter.

Auditor's Report to the Members on

Review of Condensed Interim Financial Information

An instinct for growthTM

CHARTERED ACCOUNTANTS

Engagement Partner: Muhammad Shaukat Naseeb

LahoreDated: February 23, 2018

04


Grant Thornton Anjum Rahman1-Inter Floor, Eden Centre,

43-Jail Road, Lahore 54000,

Pakistan.

T +92 42 37423 621-23, 37422 987-88

F +92 42 37425 485

www.gtpak.com

Chartered Accountants Member of Grant Thornton International Ltd

Offices in Karachi and Islamabad

200.824

(94.381)

2.360

(167.300)

36.673

(130.627)

584.730

3.142

0.167

(79.120)

18.295

(64.895)

05


Introduction

We have reviewed the accompanying condensed interim balance sheet of Samin Textiles Limited as at December 31, 2017

and the related condensed interim profit and loss account, condensed interim statement of comprehensive income,

condensed interim statement of cash flows, condensed interim statement of changes in equity together with the notes

forming part thereof for the half year then ended (here-in-after referred to as the “condensed interim financial

information”). Management is responsible for the preparation and presentation of this condensed interim financial

information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.

Our responsibility is to express a conclusion on this condensed interim financial information based on our review. The

figures of condensed interim profit and loss account and condensed interim statement of comprehensive income for the

quarters ended December 31, 2017 and 2016 have not been reviewed as we are required to review only the cumulative

figures for the half year ended December 31, 2017.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagement 2410, “Review of Interim

Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial information

consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical

and other review procedures. A review is substantially less in scope than an audit conducted in accordance with

International Standards on Auditing and consequently does not enable us to obtain assurance that we would become

aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim

financial information as of and for the half year ended December 31, 2017 is not prepared, in all material respects, in

accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.

Emphasis of Matter

Without qualifying our conclusion, we draw attention to note 1.2 to the accompanying condensed interim financial

information which describes that during the period ended December 31, 2017, the Company has incurred loss amounting

to Rs. 167.3 million mainly due to non-implementation of full BMR & E plans, sluggish market conditions for greige fabric in

the international market and shortage of working capital. These conditions indicate existence of uncertainties relating to

going concern status of the Company in foreseeable future. This financial information has, however, been prepared on a

going concern basis for the reasons, as more fully explained in note 1.2 to the financial information. Our conclusion is not

qualified in respect of this matter.

Auditor's Report to the Members on

Review of Condensed Interim Financial Information

An instinct for growthTM

CHARTERED ACCOUNTANTS

Engagement Partner: Muhammad Shaukat Naseeb

LahoreDated: February 23, 2018

04


Grant Thornton Anjum Rahman1-Inter Floor, Eden Centre,

43-Jail Road, Lahore 54000,

Pakistan.

T +92 42 37423 621-23, 37422 987-88

F +92 42 37425 485

www.gtpak.com

Chartered Accountants Member of Grant Thornton International Ltd

Offices in Karachi and Islamabad

07


JEHANZEB AMIN

Chief Executive

SAFDAR HUSSAIN TARIQ

06


JEHANZEB AMIN

Chief Executive


Director/CFO

Condensed Interim Profit and Loss Account (Un-audited)for the half year ended December 31, 2017

Notes

Sales - net

Cost of sales 15

Gross (loss)/profit

Other income

Distribution cost

Administrative expenses Other expenses 16

Operating loss

Finance cost

Loss before taxation

Taxation 17

Net loss for the period

Loss per share - basic & diluted 21

The annexed notes from 1 to 23 form an integral part of this condensed interim financial information.

For the half year

ended

Dec 31, 2017

Rupees

200,823,669

(295,205,035)

(94,381,366)

2,359,762

(6,633,245)

(26,672,636)

(2,106,253)

(127,433,738)

(35,384,627)

(162,818,365)

(4,482,128)

(167,300,493)

(6.26)

For the half year

ended

Dec 31, 2016

(Rupees)

584,730,332

(581,588,148)

3,142,184

167,888

(9,242,351)

(30,519,322)

(15,500)

(36,467,100)

(39,264,791)

(75,731,891)

(3,388,580)

(79,120,472)

(2.96)

For the quarter

ended

Dec 31, 2017

(Rupees)

83,348,233

(130,051,160)

(46,702,927)

2,346,793

(3,411,241)

(13,065,754) (2,106,253)

(62,939,382)

(17,865,697)

(80,805,079)

(3,304,839)

(84,109,918)

(3.15)

For the quarter

ended

Dec 31, 2016

Rupees

265,205,796

(254,271,840)

10,933,956

(554)

(4,844,546)

(14,851,098)

55,976

(8,706,265)

(18,598,673)

(27,304,938)

(1,419,280)

(28,724,219)

(1.07)

Condensed Interim Balance Sheet (Un-audited)as at December 31, 2017

NoteEquity and liabilities

Share capital and reserves

Authorized capital

30,000,000 (June 2017: 30,000,000) ordinary shares of Rs. 10 each

Share capital

Loan from sponsor 6

Reserves

Total share capital and reserves

Surplus on revaluation of property, plant and equipment

Liabilities

Non-current

Subordinated loan-related party

Long term financing 7

Deferred liabilities

Total non-current liabilities

Current

Trade and other payables 8

Interest /markup accrued

Short term borrowings 9

Current portion of long term financing

Total current liabilities

Total liabilities

Total equity and liabilities

Contingencies and Commitments 10

Assets

Non-current

Property, plant and equipment 11

Intangible assets 12

Long term investments 13

Long term deposits

Total Non-current assets

Current

Stores, spare parts and loose tools

Stock in trade

Trade debts

Loans and advances

Trade deposits and prepayments

Tax refunds due from government-net

Cash and bank balances 14

Current assets

Total assets

Un-audited Audited

Dec 31, 2017 Jun 30, 2017

Rupees Rupees

300,000,000

267,280,000

41,000,000

(215,745,357)

92,534,643

339,791,266

10,411,566

110,579,602

1,287,100

122,278,268

218,071,698

36,436,697

525,607,481

51,362,932

831,478,808

953,757,076

1,386,082,985

882,072,369

-

-

14,420,790

896,493,159

52,077,111

272,970,158

19,414,419

7,370,758

2,859,050

129,840,173

5,058,157

489,589,826

300,000,000

267,280,000

49,288,373

(375,799,140)

(59,230,767)

332,544,556

10,411,566

53,668,313

1,287,100

65,366,979

227,681,564

25,708,457

682,834,481

44,529,932

980,754,434

1,046,121,413

1,319,435,202

854,024,829

-

-

14,420,790

868,445,619

48,088,546

240,679,552

19,761,301

13,122,784

2,793,663

118,730,515

7,813,222

450,989,583

1,319,435,202 1,386,082,985


Director/CFO

07


JEHANZEB AMIN

Chief Executive


06


JEHANZEB AMIN

Chief Executive


Director/CFO

Condensed Interim Profit and Loss Account (Un-audited)for the half year ended December 31, 2017

Notes

Sales - net

Cost of sales 15

Gross (loss)/profit

Other income

Distribution cost

Administrative expenses Other expenses 16

Operating loss

Finance cost


Taxation 17

Net loss for the period

Loss per share - basic & diluted 21


For the half year

ended

Dec 31, 2017

Rupees

200,823,669

(295,205,035)

(94,381,366)

2,359,762

(6,633,245)

(26,672,636)

(2,106,253)

(127,433,738)

(35,384,627)

(162,818,365)

(4,482,128)

(167,300,493)

(6.26)

For the half year

ended

Dec 31, 2016

(Rupees)

584,730,332

(581,588,148)

3,142,184

167,888

(9,242,351)

(30,519,322)

(15,500)

(36,467,100)

(39,264,791)

(75,731,891)

(3,388,580)

(79,120,472)

(2.96)

For the quarter

ended

Dec 31, 2017

(Rupees)

83,348,233

(130,051,160)

(46,702,927)

2,346,793

(3,411,241)

(13,065,754) (2,106,253)

(62,939,382)

(17,865,697)

(80,805,079)

(3,304,839)

(84,109,918)

(3.15)

For the quarter

ended

Dec 31, 2016

Rupees

265,205,796

(254,271,840)

10,933,956

(554)

(4,844,546)

(14,851,098)

55,976

(8,706,265)

(18,598,673)

(27,304,938)

(1,419,280)

(28,724,219)

(1.07)

Condensed Interim Balance Sheet (Un-audited)as at December 31, 2017

NoteEquity and liabilities

Share capital and reserves

Authorized capital

30,000,000 (June 2017: 30,000,000) ordinary shares of Rs. 10 each

Share capital

Loan from sponsor 6

Reserves

Total share capital and reserves

Surplus on revaluation of property, plant and equipment

Liabilities

Non-current


Long term financing 7

Deferred liabilities

Total non-current liabilities

Current

Trade and other payables 8

Interest /markup accrued

Short term borrowings 9

Current portion of long term financing

Total current liabilities

Total liabilities

Total equity and liabilities

Contingencies and Commitments 10

Assets

Non-current

Property, plant and equipment 11

Intangible assets 12

Long term investments 13

Long term deposits

Total Non-current assets

Current


Stock in trade

Trade debts

Loans and advances

Trade deposits and prepayments

Tax refunds due from government-net

Cash and bank balances 14

Current assets

Total assets

Un-audited Audited

Dec 31, 2017 Jun 30, 2017

Rupees Rupees

300,000,000

267,280,000

41,000,000

(215,745,357)

92,534,643

339,791,266

10,411,566

110,579,602

1,287,100

122,278,268

218,071,698

36,436,697

525,607,481

51,362,932

831,478,808

953,757,076

1,386,082,985

882,072,369

-

-

14,420,790

896,493,159

52,077,111

272,970,158

19,414,419

7,370,758

2,859,050

129,840,173

5,058,157

489,589,826

300,000,000

267,280,000

49,288,373

(375,799,140)

(59,230,767)

332,544,556

10,411,566

53,668,313

1,287,100

65,366,979

227,681,564

25,708,457

682,834,481

44,529,932

980,754,434

1,046,121,413

1,319,435,202

854,024,829

-

-

14,420,790

868,445,619

48,088,546

240,679,552

19,761,301

13,122,784

2,793,663

118,730,515

7,813,222

450,989,583

1,319,435,202 1,386,082,985


Director/CFO

09


08


Condensed Interim Statement of Cash Flows (Un-audited)for the half year ended December 31, 2017

For the half year

ended

Dec 31, 2017

For the half year

ended

Dec 31, 2016

Notes Rupees Rupees

19 (45,006,680)

(1,537,792)

(46,544,472)

-

2,800,000

11.1.1 (9,158,680)

(6,358,680)

157,227,000

(63,744,289)

8,288,373

(46,112,867)

55,658,217

2,755,065

5,058,157

Cash generated from operations

Cash (used in) / generated from operations

Taxes paid

Net cash (used in) / from operating activities

Cash flows from investing activities

(Increase) / Decrease in long term deposits

Proceeds from disposal of property, plant and equipment

Additions in property, plant and equipment

Net cash used in investing activities

Cash flows from financing activities

(Decrease) / increase in short term borrowings

(Decrease) in long term financing - net

Increase in interest free loan from sponsor

Finance cost paid

Net cash (used in) / from financing activities

Net change in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period 7,813,222

60,944,163

(13,178,441)

47,765,722

(209,040)

-

(3,573,463)

(3,782,503)

(11,684,623)

(17,618,168)

-

(34,846,226)

(64,149,017)

(20,165,798)

26,116,244

5,950,446


for the half year ended December 31, 2017 For the half year

ended

Dec 31, 2017

For the half year

ended

Dec 31, 2016

For the quarter

ended

Dec 31, 2017

For the quarter

ended

Dec 31, 2016

Rupees Rupees Rupees Rupees

Loss after taxation

Other comprehensive income for the period

Total comprehensive loss for the period

(167,300,493)

-

(167,300,493)

(79,120,472)

-

(79,120,472)

(84,109,918)

-

(84,109,918)

(28,724,219)

-

(28,724,219)


Condensed Interim Statement of Comprehensive Income (Un-audited)

JEHANZEB AMIN

Chief Executive


JEHANZEB AMIN

Chief Executive


Director/CFO Director/CFO

09


08


Condensed Interim Statement of Cash Flows (Un-audited)for the half year ended December 31, 2017

For the half year

ended

Dec 31, 2017

For the half year

ended

Dec 31, 2016

Notes Rupees Rupees

19 (45,006,680)

(1,537,792)

(46,544,472)

-

2,800,000

11.1.1 (9,158,680)

(6,358,680)

157,227,000

(63,744,289)

8,288,373

(46,112,867)

55,658,217

2,755,065

5,058,157

Cash generated from operations

Cash (used in) / generated from operations

Taxes paid

Net cash (used in) / from operating activities

Cash flows from investing activities

(Increase) / Decrease in long term deposits

Proceeds from disposal of property, plant and equipment

Additions in property, plant and equipment

Net cash used in investing activities

Cash flows from financing activities

(Decrease) / increase in short term borrowings

(Decrease) in long term financing - net

Increase in interest free loan from sponsor

Finance cost paid

Net cash (used in) / from financing activities

Net change in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period 7,813,222

60,944,163

(13,178,441)

47,765,722

(209,040)

-

(3,573,463)

(3,782,503)

(11,684,623)

(17,618,168)

-

(34,846,226)

(64,149,017)

(20,165,798)

26,116,244

5,950,446


for the half year ended December 31, 2017 For the half year

ended

Dec 31, 2017

For the half year

ended

Dec 31, 2016

For the quarter

ended

Dec 31, 2017

For the quarter

ended

Dec 31, 2016


Loss after taxation



(167,300,493)

-

(167,300,493)

(79,120,472)

-

(79,120,472)

(84,109,918)

-

(84,109,918)

(28,724,219)

-

(28,724,219)


Condensed Interim Statement of Comprehensive Income (Un-audited)

JEHANZEB AMIN

Chief Executive


JEHANZEB AMIN

Chief Executive


Director/CFO Director/CFO

11


1 General information and nature of operations

1.1 Samin Textiles Limited (the "Company") is a public limited company incorporated in Pakistan on November 27,

1989 under the Companies Ordinance, 1984. The shares of the Company are listed on Pakistan Stock Exchange.

The principal business of the Company is manufacturing and sale of cloth. The address of its registered/head office

is 50-C, Main Gulberg, Lahore. The mill is situated at Manga - Raiwind Road, District Kasur in the Province of Punjab.

1.2 During the period ended December 31, 2017 the company has incurred net loss amounting to Rs. 167.3 million

mainly due to non-implementation of BMR & E plans, sluggish market conditions for greige fabric in the

international market, shortage of working capital and idle capacity utilization of plant. Due to shortage of working

capital, the Company have to change its business model i.e. own raw material purchase to conversion. The plant is

running on idle capacity i.e. less than 60% and accordingly, the fixed cost is heavy and not being absorbed in the

cost of goods sold. Continuation of the Company as going concern is dependent on its ability to attain satisfactory

levels of profitability in the future and implementation of following plans drawn by the management:

- Financial Projections

The management of the Company has prepared a set of financial projections for a period of three years to analyze

the Company’s sustainability in the future periods with a particular focus on the 12 months period ending

December 31, 2018. The financial projections are based on various assumptions such as production levels, interest

rates, interest repayments, availability of fuel and power and other market forces.

These financial projections have been approved by the Board of Directors (the Board) of the Company and have

been subjected to the stressed scenarios which the Board considered to be reasonable and appropriate.

- Financial commitment from sponsors

The sponsors of the Company have explicitly provided a commitment to provide necessary financial support to the

Company, if the need arises, to address any liquidity and solvency issues to enable the Company to continue its

business.

- Cost Cutting/Staff Retrenchment

The Company has taken proactive measures to further reduce the existing cost i.e. released redundant work force,

curtailed wastages, and other important steps to improve the Company's financial health and makes the project

efficient/profitable.

Keeping in view aforementioned achievements/plans, the management is of the view that the Company will have

requisite resources and continue to work as a going concern in the foreseeable future.

2 Statement of Compliance

This condensed interim financial information is unaudited and is being submitted to shareholders, as required by

the Companies Act, 2017.

Effective 30 May 2017, the Companies Act, 2017 (the Act) has been promulgated, however, the Securities and

Exchange Commision of Pakistan (SECP) vide its circularNo. 23 of 2017 dated October 04, 2017decided that the

Companies whose financila year closes on or before December 31, 2017 shall prepare their financial statements in

accordancewith the provisions of the repealed Companies ordinance, 1984. Furthermore Institue of Chartered

Accountants of Pakistan also issued clarification vide its circular dated 06 October 2017 which states that the

interim financial information of the Companies for period ending or before December 31, 2017 shall also be

prepared in accordance of with the provision of repealed Companies Ordinance, 1984.Accordingly, these

condensed interim financial information of the Company for the six month ended 31 December 2017 has been

prepared in accordance with the requirements of the International Accounting Standard (IAS) 34, "Interim Financial

Reporting" and provisions of and directives issued under the Companies Ordinance, 1984. In case where

requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been

followed.

This condensed interim financial report does not include all the information required for full annual financial

statements and should be read in conjunction with the annual financial statements of the Company for the year

ended June 30, 2017. Currently, the Company is assessing the impact of these requirements on the financial

10


Notes to the Condensed Interim Financial Information (Un-audited)for the half year ended December 31, 2017

for the half year ended December 31, 2017

Condensed Interim Statement of Changes in Equity (Un-audited)

Rupees

Balance as at July 01, 2016 267,280,000

51,256,016

-

51,256,016

318,536,016

Loss for the period -

(79,120,472)

-

(79,120,472)

(79,120,472)

-

-

-

- -

-

(79,120,472)

-

(79,120,472)

(79,120,472)

- 5,555,811 - 5,555,811 5,555,811

Balance as at December 31, 2016 (un-audited) 267,280,000

(22,308,644)

-

(22,308,644)

244,971,356


(215,745,357)

41,000,000

(174,745,357)

92,534,643


(167,300,493)

-

(167,300,493)

(167,300,493)

Other comprehensive income for the period -

-

-

- -

Total comprehensive loss for the period -

(167,300,493)

-

(167,300,493)

(167,300,493)

Loan obtained during the period 8,288,373

8,288,373

8,288,373

- 7,246,710 - 7,246,710 7,246,710

Balance as at December 31, 2017 (audited) 267,280,000 (375,799,140) 49,288,373 (326,510,767) (59,230,767)


Total Equity

Revenue

reserve-

Accumulated

Profits/(Loss) Sub-total

Transfer from surplus on revaluation of property,

plant and equipment -net of tax

Particulars

Issued,

subscribed and

paid up share

capital

Reserves




plant and equipment-net of tax

Loan from

sponsor

RupeesRupeesRupeesRupees

JEHANZEB AMIN

Chief Executive


Director/CFO

11


1 General information and nature of operations

1.1 Samin Textiles Limited (the "Company") is a public limited company incorporated in Pakistan on November 27,

1989 under the Companies Ordinance, 1984. The shares of the Company are listed on Pakistan Stock Exchange.

The principal business of the Company is manufacturing and sale of cloth. The address of its registered/head office

is 50-C, Main Gulberg, Lahore. The mill is situated at Manga - Raiwind Road, District Kasur in the Province of Punjab.

1.2 During the period ended December 31, 2017 the company has incurred net loss amounting to Rs. 167.3 million

mainly due to non-implementation of BMR & E plans, sluggish market conditions for greige fabric in the

international market, shortage of working capital and idle capacity utilization of plant. Due to shortage of working

capital, the Company have to change its business model i.e. own raw material purchase to conversion. The plant is

running on idle capacity i.e. less than 60% and accordingly, the fixed cost is heavy and not being absorbed in the

cost of goods sold. Continuation of the Company as going concern is dependent on its ability to attain satisfactory

levels of profitability in the future and implementation of following plans drawn by the management:

- Financial Projections

The management of the Company has prepared a set of financial projections for a period of three years to analyze

the Company’s sustainability in the future periods with a particular focus on the 12 months period ending

December 31, 2018. The financial projections are based on various assumptions such as production levels, interest

rates, interest repayments, availability of fuel and power and other market forces.

These financial projections have been approved by the Board of Directors (the Board) of the Company and have

been subjected to the stressed scenarios which the Board considered to be reasonable and appropriate.

- Financial commitment from sponsors

The sponsors of the Company have explicitly provided a commitment to provide necessary financial support to the

Company, if the need arises, to address any liquidity and solvency issues to enable the Company to continue its

business.

- Cost Cutting/Staff Retrenchment

The Company has taken proactive measures to further reduce the existing cost i.e. released redundant work force,

curtailed wastages, and other important steps to improve the Company's financial health and makes the project

efficient/profitable.

Keeping in view aforementioned achievements/plans, the management is of the view that the Company will have

requisite resources and continue to work as a going concern in the foreseeable future.

2 Statement of Compliance

This condensed interim financial information is unaudited and is being submitted to shareholders, as required by

the Companies Act, 2017.

Effective 30 May 2017, the Companies Act, 2017 (the Act) has been promulgated, however, the Securities and

Exchange Commision of Pakistan (SECP) vide its circularNo. 23 of 2017 dated October 04, 2017decided that the

Companies whose financila year closes on or before December 31, 2017 shall prepare their financial statements in

accordancewith the provisions of the repealed Companies ordinance, 1984. Furthermore Institue of Chartered

Accountants of Pakistan also issued clarification vide its circular dated 06 October 2017 which states that the

interim financial information of the Companies for period ending or before December 31, 2017 shall also be

prepared in accordance of with the provision of repealed Companies Ordinance, 1984.Accordingly, these

condensed interim financial information of the Company for the six month ended 31 December 2017 has been

prepared in accordance with the requirements of the International Accounting Standard (IAS) 34, "Interim Financial

Reporting" and provisions of and directives issued under the Companies Ordinance, 1984. In case where

requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been

followed.

This condensed interim financial report does not include all the information required for full annual financial

statements and should be read in conjunction with the annual financial statements of the Company for the year

ended June 30, 2017. Currently, the Company is assessing the impact of these requirements on the financial

10




Condensed Interim Statement of Changes in Equity (Un-audited)

Rupees


51,256,016

-

51,256,016

318,536,016


(79,120,472)

-

(79,120,472)

(79,120,472)

-

-

-

- -

-

(79,120,472)

-

(79,120,472)

(79,120,472)

- 5,555,811 - 5,555,811 5,555,811

Balance as at December 31, 2016 (un-audited) 267,280,000

(22,308,644)

-

(22,308,644)

244,971,356


(215,745,357)

41,000,000

(174,745,357)

92,534,643


(167,300,493)

-

(167,300,493)

(167,300,493)

Other comprehensive income for the period -

-

-

- -

Total comprehensive loss for the period -

(167,300,493)

-

(167,300,493)

(167,300,493)

Loan obtained during the period 8,288,373

8,288,373

8,288,373

- 7,246,710 - 7,246,710 7,246,710

Balance as at December 31, 2017 (audited) 267,280,000 (375,799,140) 49,288,373 (326,510,767) (59,230,767)


Total Equity

Revenue

reserve-

Accumulated

Profits/(Loss) Sub-total


plant and equipment -net of tax

Particulars

Issued,

subscribed and

paid up share

capital

Reserves




plant and equipment-net of tax

Loan from

sponsor

RupeesRupeesRupeesRupees

JEHANZEB AMIN

Chief Executive


Director/CFO

13


12


Notes to the Condensed Interim Financial Information (Un-audited)

Un-audited Audited

Sanctioned Limit Dec 31, 2017 Jun 30, 2017

Rupees Rupees Rupees

9 SHORT TERM BORROWINGS

From banking companies-secured:

Pre & Post-shipment - own sources 300,000,000 9.2 191,835,000 191,835,000

Cash finance 335,000,000 9.3 334,999,481 333,772,481

From related parties-unsecured 9.4 156,000,000 -

156,000,000 -

Total 682,834,481 525,607,481

Un-audited Audited

Dec 31, 2017 Jun 30, 2017

Note Rupees Rupees

8 TRADE AND OTHER PAYABLES

Creditors

- for goods

- for supplies

- for services

Accrued liabilities

Advances from customers

Security deposits

Payable to Workers' Profit Participation Fund

Provident fund payable

Unclaimed dividend

Total

7.1 Opening balance

Movement during the period:

Increase during the period

Repaid during the period

Closing balance

31,272,677

43,284,602

47,613,040

122,170,319

41,316,222

28,315,141

513,630

8,211,557

23,688,531

3,466,164

227,681,564

160,561,169

-

(63,744,289)

96,816,880

46,322,077

37,000,822

48,033,312

131,356,211

33,039,183

27,119,341

913,630

6,443,376

15,733,793

3,466,164

218,071,698

251,832,177

-

(91,271,008)

160,561,169

Note

9.1 The securities registered with SECP against short term borrowing from one financial institution is utilized for various

facilities sanctioned by the said financial institution.

9.2 These facilities are secured against first joint pari passu charge on current assets ranging from Rs. 120 million to Rs.

176 million, first pari passu charge on fixed assets ranging from Rs. 60 million to Rs. 160 million, second joint pari



statements. It is expected that it will result in change in accounting treatments and enhanced disclosures in the

financial statements which will be incorporated in subsequent financial statements of the Company.

3 Significant Accounting policies

The accounting policies and methods of computation adopted for the preparation of this condensed interim

financial information are consistent with those applied in the preparation of the annual published financial

statements of the Company for the year ended June 30, 2017.

The new standards, amendments to the approved accounting standards and interpretations that are mandatory for

accounting periods beginning on or after July 1, 2017, were either considered not to be relevant to the Company's

operations or did not have significant effect on the accounting policies of the Company.

4 Critical accounting estimates and judgments

Judgments and estimates made by the management in the preparation of this condensed interim financial report

are the same as those applied to the preceding annual published financial statements of the Company for the year

ended June 30, 2017.

5 Financial risk management

The financial risk management objectives and policies adopted by the Company are consistent with those

disclosed in the financial statements of the Company for the year ended June 30, 2017.

Un-audited Audited

Dec 31, 2017 Jun 30, 2017

Note Rupees Rupees

6 LOAN FROM SPONSOR - RELATED PARTY

Loan from sponsor- unsecured 49,288,373

41,000,000

Total 6.1 49,288,373

41,000,000

6.1 41,000,000 -

8,288,373

41,000,000

Opening balance

Received during the period/year

Closing balance 6.1.1 49,288,373

41,000,000

7 Long term financing-secured

From financial institutions 160,561,169

Less:

Payable within in next twelve months (43,148,567) (49,981,567)

Total 53,668,313 110,579,602

6.1.1 This represents interest free loan from a member of the Company. This loan is designated interest free and is

repayable at the discretion of the Company. 'Further, in accordance with Technical Release - 32 “Accounting

Directors’ Loan” issued by the Institute of Chartered Accountants of Pakistan effective for the financial statements

for the period beginning on or after January 01, 2016 with earlier application permitted, such loan has been

classified as part of equity instead of long term borrowing.

Un-audited Audited

Dec 31, 2017 Jun 30, 2017

Rupees Rupees

96,816,880

13


12


Notes to the Condensed Interim Financial Information (Un-audited)

Un-audited Audited

Sanctioned Limit Dec 31, 2017 Jun 30, 2017

Rupees Rupees Rupees

9 SHORT TERM BORROWINGS

From banking companies-secured:

Pre & Post-shipment - own sources 300,000,000 9.2 191,835,000 191,835,000

Cash finance 335,000,000 9.3 334,999,481 333,772,481

From related parties-unsecured 9.4 156,000,000 -

156,000,000 -

Total 682,834,481 525,607,481

Un-audited Audited

Dec 31, 2017 Jun 30, 2017

Note Rupees Rupees

8 TRADE AND OTHER PAYABLES

Creditors

- for goods

- for supplies

- for services

Accrued liabilities

Advances from customers

Security deposits

Payable to Workers' Profit Participation Fund

Provident fund payable

Unclaimed dividend

Total

7.1 Opening balance

Movement during the period:

Increase during the period

Repaid during the period

Closing balance

31,272,677

43,284,602

47,613,040

122,170,319

41,316,222

28,315,141

513,630

8,211,557

23,688,531

3,466,164

227,681,564

160,561,169

-

(63,744,289)

96,816,880

46,322,077

37,000,822

48,033,312

131,356,211

33,039,183

27,119,341

913,630

6,443,376

15,733,793

3,466,164

218,071,698

251,832,177

-

(91,271,008)

160,561,169

Note

9.1 The securities registered with SECP against short term borrowing from one financial institution is utilized for various

facilities sanctioned by the said financial institution.

9.2 These facilities are secured against first joint pari passu charge on current assets ranging from Rs. 120 million to Rs.

176 million, first pari passu charge on fixed assets ranging from Rs. 60 million to Rs. 160 million, second joint pari



statements. It is expected that it will result in change in accounting treatments and enhanced disclosures in the

financial statements which will be incorporated in subsequent financial statements of the Company.

3 Significant Accounting policies

The accounting policies and methods of computation adopted for the preparation of this condensed interim

financial information are consistent with those applied in the preparation of the annual published financial

statements of the Company for the year ended June 30, 2017.

The new standards, amendments to the approved accounting standards and interpretations that are mandatory for

accounting periods beginning on or after July 1, 2017, were either considered not to be relevant to the Company's

operations or did not have significant effect on the accounting policies of the Company.

4 Critical accounting estimates and judgments

Judgments and estimates made by the management in the preparation of this condensed interim financial report

are the same as those applied to the preceding annual published financial statements of the Company for the year

ended June 30, 2017.

5 Financial risk management

The financial risk management objectives and policies adopted by the Company are consistent with those

disclosed in the financial statements of the Company for the year ended June 30, 2017.

Un-audited Audited

Dec 31, 2017 Jun 30, 2017

Note Rupees Rupees

6 LOAN FROM SPONSOR - RELATED PARTY

Loan from sponsor- unsecured 49,288,373

41,000,000

Total 6.1 49,288,373

41,000,000

6.1 41,000,000 -

8,288,373

41,000,000

Opening balance

Received during the period/year

Closing balance 6.1.1 49,288,373

41,000,000

7 Long term financing-secured

From financial institutions 160,561,169

Less:

Payable within in next twelve months (43,148,567) (49,981,567)

Total 53,668,313 110,579,602

6.1.1 This represents interest free loan from a member of the Company. This loan is designated interest free and is

repayable at the discretion of the Company. 'Further, in accordance with Technical Release - 32 “Accounting

Directors’ Loan” issued by the Institute of Chartered Accountants of Pakistan effective for the financial statements

for the period beginning on or after January 01, 2016 with earlier application permitted, such loan has been

classified as part of equity instead of long term borrowing.

Un-audited Audited

Dec 31, 2017 Jun 30, 2017

Rupees Rupees

96,816,880

15


14


11 Property, plant and equipment

Operating fixed assets 11.1 854,024,829

11.1 Operating fixed assets

Written down value - opening 882,072,369

Add: Cost of additions during the period / year 11.1.1 9,158,680

891,231,049

Disposals during the period / year (W.D.V) (533,194)

Less: Depreciation (36,673,027)

Written down value - closing 854,024,829

11.1.1 Cost of additions during the period/year

Plant and machinery 9,158,680

Office equipment -

9,158,680

12 Intangible assets

Intangible assets 12.1 -

Total -

12.1 Written down value - opening -

Less: Amortization during the period -

Written down value - closing -

13 LONG TERM INVESTMENT

Investments in related parties

Associate

Onetel Pakistan (Private) Limited 13.1 & 13.2 & 13.3 - Total -

882,072,369

948,921,557

5,519,518

954,441,075

(9,890)

(72,358,816)

882,072,369

4,430,516

1,089,002

5,519,518

-

-

469,280

(469,280)

-

-

-

Un-audited Audited

Dec 31, 2017 Jun 30, 2017

Note Rupees Rupees

13.1 This represents Company's investment in an associate, Onetel Pakistan (Private) Limited. The Company held

common directorship with the associate and hold 24% (2016: 24%) equity in the associate. The breakup value per

share based on audited accounts amounts to Rs. 10 per share at 30 June 2017 (2016: Rs. 10 per share).

13.2 During the last year, the investment in associate company has been impaired due to change in plans and therefore

investment in equity is written off.



passu charge on fixed assets of the Company ranging from Rs. 40 million to Rs. 114 million, 4th ranking charge over

Machinery, first joint pari passu charge on present and future fixed assets of the Company amounting to Rs. 115

million, joint pari passu charge amounting Rs.65 million on current and fixed assets of the Company duly registered

SECP with creditors(NBP,Askari bank, Bank Alfalah), Ranking Mortgage charge for Rs.13 million over additional

land measuring 11 kanals & 19 Marlas, Joint Pari passu charge of Rs. 80 Million on the current assets of the

company, indemnity bond to cover exchange risk, lien on export LC/contract for Rs. 85 million, export bills under

lien and personal guarantee of the sponsoring director of the Company and carry markup at rates ranging from

three to six months KIBOR plus 2.5% to 4% per annum (June 2017: one to six months KIBOR plus 2.5% to 4% per

annum).

9.3 These facilities are secured against first joint pari passu charge over the current assets of the Company amounting

to Rs. 295 million, first pari passu charge over the fixed assets of the company valuing 340 million, 1% registered

and 100% equitable mortgage of residential property in the name of Mrs. Mehvish Amin, pledge of stocks (i.e. yarn

and grey cloth) and personal guarantee of the sponsoring director. Ranking charge over the current assets of the

company in the amount of Rs. 176 million.These facilities carry markup at rate six month KIBOR plus 3% per annum

(June 2017: three to six month KIBOR average ask rate plus 3% per annum).

9.4 This loan has obtained from sponsor and is unsecured carries interest @ 3 months kibor plus 0.5% (June 2017: Nil).

This loan is repayable on the demand of sponsor.

10 Contingencies and commitments

Contingencies

10.1 There is no material change in contingencies as disclosed in the notes to the financial statements for the year ended

June 30, 2017 except as follow:

10.1.1 Proceedings under section 214C read with section 177 ot the Ordinance for the Tax year 2015 were initiated in

August 2017. The ACIR passed an order on 10-01-2018 u/s 122(1) of the Ordinance whereby additions of Rs.

18,856,268 were made and refund claimed by the Company was reduced from Rs 17,462,076 to 17,099,006. Being

aggrieved from aforesaid Order, the Company has filed Appeal before Commissioner Appeals-II, Lahore. This

appeal is pending for adjudication. The management of the Company expects favourable outcome of the appeal

and accordingly no provisions in this regard has been made in these condensed interim financial information.

10.1.2 In respect of Audit proceedings for the Tax Year 2014, the Assistant/Deputy CIR passed an Order u/s 122(1)(5)

whereby additions of Rs 23,525,775 were made and the tax demand of Rs 1,293,704 was raised. Being aggrieved

from the aforesaid Order, the Company has filed the Appeal before the Commissioner Appeal-II, Lahore. on 30-11-

2017. This appeal is pending for adjudication. The management of the Company expects favourable outcome of

the appeal and accordingly no provision in this regard has been made in these condensed interim financial

information.

10.1.3 The Addl. CIR, Audit Range, Lahore initiated proceedings u/s 122(9)(5A) of the Ordinance for Tax Year 2012. The

Addl. CIR passed an Order u/s 122(5A) of the Ordinance whereby the tax demand of Rs. 61,365,329 was raised and

made impugned attrition/disallowance of Rs 255,774,631. Being aggrieved from the aforesaid Order the Company

has filed Appeal before the Commissioner Appeals-II, Lahore which is pending for adjudication. Further the

Company has also got stay against recovery proceedings uptill 02-03-2018. The management of the Company

expects favourable outcome of the appeal and accordingly no provision in this regard has been made in these

condensed interim financial information.

10.2 Commitments as at balance sheet date amounting to Rs. Nil (June 30, 2017: Nil).

15


14


11 Property, plant and equipment

Operating fixed assets 11.1 854,024,829

11.1 Operating fixed assets

Written down value - opening 882,072,369

Add: Cost of additions during the period / year 11.1.1 9,158,680

891,231,049

Disposals during the period / year (W.D.V) (533,194)

Less: Depreciation (36,673,027)

Written down value - closing 854,024,829

11.1.1 Cost of additions during the period/year

Plant and machinery 9,158,680

Office equipment -

9,158,680

12 Intangible assets

Intangible assets 12.1 -

Total -

12.1 Written down value - opening -

Less: Amortization during the period -

Written down value - closing -

13 LONG TERM INVESTMENT

Investments in related parties

Associate

Onetel Pakistan (Private) Limited 13.1 & 13.2 & 13.3 - Total -

882,072,369

948,921,557

5,519,518

954,441,075

(9,890)

(72,358,816)

882,072,369

4,430,516

1,089,002

5,519,518

-

-

469,280

(469,280)

-

-

-

Un-audited Audited

Dec 31, 2017 Jun 30, 2017

Note Rupees Rupees

13.1 This represents Company's investment in an associate, Onetel Pakistan (Private) Limited. The Company held

common directorship with the associate and hold 24% (2016: 24%) equity in the associate. The breakup value per

share based on audited accounts amounts to Rs. 10 per share at 30 June 2017 (2016: Rs. 10 per share).

13.2 During the last year, the investment in associate company has been impaired due to change in plans and therefore

investment in equity is written off.



passu charge on fixed assets of the Company ranging from Rs. 40 million to Rs. 114 million, 4th ranking charge over

Machinery, first joint pari passu charge on present and future fixed assets of the Company amounting to Rs. 115

million, joint pari passu charge amounting Rs.65 million on current and fixed assets of the Company duly registered

SECP with creditors(NBP,Askari bank, Bank Alfalah), Ranking Mortgage charge for Rs.13 million over additional

land measuring 11 kanals & 19 Marlas, Joint Pari passu charge of Rs. 80 Million on the current assets of the

company, indemnity bond to cover exchange risk, lien on export LC/contract for Rs. 85 million, export bills under

lien and personal guarantee of the sponsoring director of the Company and carry markup at rates ranging from

three to six months KIBOR plus 2.5% to 4% per annum (June 2017: one to six months KIBOR plus 2.5% to 4% per

annum).

9.3 These facilities are secured against first joint pari passu charge over the current assets of the Company amounting

to Rs. 295 million, first pari passu charge over the fixed assets of the company valuing 340 million, 1% registered

and 100% equitable mortgage of residential property in the name of Mrs. Mehvish Amin, pledge of stocks (i.e. yarn

and grey cloth) and personal guarantee of the sponsoring director. Ranking charge over the current assets of the

company in the amount of Rs. 176 million.These facilities carry markup at rate six month KIBOR plus 3% per annum

(June 2017: three to six month KIBOR average ask rate plus 3% per annum).

9.4 This loan has obtained from sponsor and is unsecured carries interest @ 3 months kibor plus 0.5% (June 2017: Nil).

This loan is repayable on the demand of sponsor.

10 Contingencies and commitments

Contingencies

10.1 There is no material change in contingencies as disclosed in the notes to the financial statements for the year ended

June 30, 2017 except as follow:

10.1.1 Proceedings under section 214C read with section 177 ot the Ordinance for the Tax year 2015 were initiated in

August 2017. The ACIR passed an order on 10-01-2018 u/s 122(1) of the Ordinance whereby additions of Rs.

18,856,268 were made and refund claimed by the Company was reduced from Rs 17,462,076 to 17,099,006. Being

aggrieved from aforesaid Order, the Company has filed Appeal before Commissioner Appeals-II, Lahore. This

appeal is pending for adjudication. The management of the Company expects favourable outcome of the appeal

and accordingly no provisions in this regard has been made in these condensed interim financial information.

10.1.2 In respect of Audit proceedings for the Tax Year 2014, the Assistant/Deputy CIR passed an Order u/s 122(1)(5)

whereby additions of Rs 23,525,775 were made and the tax demand of Rs 1,293,704 was raised. Being aggrieved

from the aforesaid Order, the Company has filed the Appeal before the Commissioner Appeal-II, Lahore. on 30-11-

2017. This appeal is pending for adjudication. The management of the Company expects favourable outcome of

the appeal and accordingly no provision in this regard has been made in these condensed interim financial

information.

10.1.3 The Addl. CIR, Audit Range, Lahore initiated proceedings u/s 122(9)(5A) of the Ordinance for Tax Year 2012. The

Addl. CIR passed an Order u/s 122(5A) of the Ordinance whereby the tax demand of Rs. 61,365,329 was raised and

made impugned attrition/disallowance of Rs 255,774,631. Being aggrieved from the aforesaid Order the Company

has filed Appeal before the Commissioner Appeals-II, Lahore which is pending for adjudication. Further the

Company has also got stay against recovery proceedings uptill 02-03-2018. The management of the Company

expects favourable outcome of the appeal and accordingly no provision in this regard has been made in these

condensed interim financial information.

10.2 Commitments as at balance sheet date amounting to Rs. Nil (June 30, 2017: Nil).

17


16


17 PROVISION FOR TAXATION

Current 2,514,800 5,884,669

Prior period 1,967,328 (2,496,089)

Total 4,482,128 3,388,580

OTHER EXPENSES

Total

Impairment on investment in associate

Donations

Debtors written off

Un-audited

Dec 31, 2017

Rupees

-

73,025

2,033,228

2,106,253

15,500

-

-

15,500

16

Un-audited

Dec 31, 2016

Rupees

18 Fair values of financial assets and liabilities

Fair value is the amount that would be received on sale of an asset or paid on transfer of a liability in an orderly

transaction between market participants at the measurement date. Consequently, differences can arise between

carrying values and fair value estimates. Underlying the definition of fair value is the presumption that the Company

is a going concern without any intention or requirement to curtail materially the scale of its operations or to

undertake a transaction on adverse terms.

IFRS 13, 'Fair Value Measurements' requires the Company to classify fair value measurements using fair value

hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has

the following levels:

Level I: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either

directly (i.e as prices) or indirectly (i.e derived from prices).

Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs).

Financial instruments by category

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including

their levels in the fair value hierarchy for financial instruments measured at fair value. It does not include fair value

information for financial assets and financial liabilities not measured at fair value if the carrying amount is a

reasonable approximation of fair value.



13.3 This is made-up as under:

Opening Investment

Less: Impaired during the year

Total

14 CASH AND BANK BALANCES

Cash at bank:

- current accounts

- deposit accounts

- foreign currency accounts

Cash in hand

-

-

-

2,981,392

1,795,845

5,060

4,782,297

3,030,925

7,813,222

1,000,000

(1,000,000)

-

4,378,931

171,829

5,060

4,555,820

502,337

5,058,157

Un-audited Audited

Dec 31, 2017 Jun 30, 2017

Note Rupees Rupees

15 Cost of Sales

For the Half Year Ended For the Half Year Ended For the Quarter Ended For the Quarter Ended

December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016


Raw material consumed

297,112,464 3,641,357 125,946,833

Salaries, wages and other benefits

78,455,794 33,173,862 39,758,778

Other factory Overheads

178,246,223 78,371,834 89,864,450

553,814,481 115,187,053 255,570,061

(Increase)/decrease in work in process

Opening work in process

2,850,745 1,143,169 3,417,538

Closing work in process

(291,054) (961,252) (291,054)

Adjustment of work in process

2,559,691 181,917 3,126,484

Cost of goods manufactured 556,374,172 115,368,970 258,696,545

(Increase)/decrease in finished goods

Opening stock 364,733,755 235,268,185 335,062,146

Closing stock (339,453,922) (220,511,430) (339,453,922)

Adjustment of finished goods 25,279,833 14,756,755 (4,391,776)

Less: Export rebate (65,857) - (32,929)

Total

53,189,230

64,135,931

148,189,087

265,514,248

1,329,570

(961,252)

368,318

265,882,566

249,908,464

(220,511,430)

29,397,034

-

295,279,600 581,588,148 130,125,725 254,271,840

17


16


17 PROVISION FOR TAXATION

Current 2,514,800 5,884,669

Prior period 1,967,328 (2,496,089)

Total 4,482,128 3,388,580

OTHER EXPENSES

Total

Impairment on investment in associate

Donations

Debtors written off

Un-audited

Dec 31, 2017

Rupees

-

73,025

2,033,228

2,106,253

15,500

-

-

15,500

16

Un-audited

Dec 31, 2016

Rupees

18 Fair values of financial assets and liabilities

Fair value is the amount that would be received on sale of an asset or paid on transfer of a liability in an orderly

transaction between market participants at the measurement date. Consequently, differences can arise between

carrying values and fair value estimates. Underlying the definition of fair value is the presumption that the Company

is a going concern without any intention or requirement to curtail materially the scale of its operations or to

undertake a transaction on adverse terms.

IFRS 13, 'Fair Value Measurements' requires the Company to classify fair value measurements using fair value

hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has

the following levels:

Level I: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either

directly (i.e as prices) or indirectly (i.e derived from prices).

Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs).

Financial instruments by category

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including

their levels in the fair value hierarchy for financial instruments measured at fair value. It does not include fair value

information for financial assets and financial liabilities not measured at fair value if the carrying amount is a

reasonable approximation of fair value.



13.3 This is made-up as under:

Opening Investment

Less: Impaired during the year

Total

14 CASH AND BANK BALANCES

Cash at bank:

- current accounts

- deposit accounts

- foreign currency accounts

Cash in hand

-

-

-

2,981,392

1,795,845

5,060

4,782,297

3,030,925

7,813,222

1,000,000

(1,000,000)

-

4,378,931

171,829

5,060

4,555,820

502,337

5,058,157

Un-audited Audited

Dec 31, 2017 Jun 30, 2017

Note Rupees Rupees

15 Cost of Sales

For the Half Year Ended For the Half Year Ended For the Quarter Ended For the Quarter Ended

December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016


Raw material consumed

297,112,464 3,641,357 125,946,833

Salaries, wages and other benefits

78,455,794 33,173,862 39,758,778

Other factory Overheads

178,246,223 78,371,834 89,864,450

553,814,481 115,187,053 255,570,061

(Increase)/decrease in work in process

Opening work in process

2,850,745 1,143,169 3,417,538

Closing work in process

(291,054) (961,252) (291,054)

Adjustment of work in process

2,559,691 181,917 3,126,484

Cost of goods manufactured 556,374,172 115,368,970 258,696,545

(Increase)/decrease in finished goods

Opening stock 364,733,755 235,268,185 335,062,146

Closing stock (339,453,922) (220,511,430) (339,453,922)

Adjustment of finished goods 25,279,833 14,756,755 (4,391,776)

Less: Export rebate (65,857) - (32,929)

Total

53,189,230

64,135,931

148,189,087

265,514,248

1,329,570

(961,252)

368,318

265,882,566

249,908,464

(220,511,430)

29,397,034

-

295,279,600 581,588,148 130,125,725 254,271,840

19


18


20

Transactions with related parties

Significant transactions with related parties during six months are as follows:

Cash (used in)/generated from operations


Adjustments for:

Depreciation on property, plant and equipment

Gain on disposal of property, plant and equipment

Interest Income

Operating profit before changes in working capital

Changes in working capital

(Increase) /decrease in current assets


Stock in trade

Trade debts

Loans and advances

Trade deposits, prepayments and balances with statutory authorities

Increase in current liabilities

Trade and other payables

Total

(162,818,365)

36,673,026

(2,266,806)

(73,025)

(93,100,543)

3,988,565

32,290,606

(346,882)

(5,752,026)

8,230,709

9,609,866

(45,006,680)

(75,731,891)

36,121,984

-

(73,025)

(183,501)

(3,134,948)

49,294,846

21,525,539

2,674,514

(10,483,068)

1,250,781

60,944,163

Un-audited Un-audited

Dec 31, 2017 Dec 31, 2016

Rupees Rupees

19


Dec 31, 2017 Dec 31, 2016

Relationship Rupees Rupees

Mrs. Mehvish Amin Sponsor

Office rent

Mrs. Shehla Segal Sponsor

Markup on subordinated loan

Mr. Sarmid Amin Sponsor

Markup on loan

Directors and other key management personnel Directors and executives

Remuneration and benefits

Provident Fund expense including interest Provident fund

600,000

454,000

2,385,264

16,393,230

10,223,733

600,000

454,496

-

15,627,090

10,936,622



December 31, 2017 (Un-audited)

Current

Trade debts

Loans and advances

Trade deposits

Cash and bank balances

Non-current


Long term financing

Current


Interest accrued

Short term borrowings

June 30, 2017 (Audited)

Current

Trade debts

Loans and advances

Trade deposits


Non-current


Long term financing

Current


Interest accrued


Financial liabilities not measured at fair value

Financial assets not measured at fair value



19,761,301 - - - 19,761,301 - - - -

13,122,784 - - - 13,122,784 - - - -

2,793,663 - - - 2,793,663 - - - -

7,813,222 - - - 7,813,222 - - - -

43,490,970 - - - 43,490,970

- -

-

10,411,566 10,411,566

- - - -

- - -

96,816,880

96,816,880 - - - -

- - -

178,153,785

178,153,785 - - - -

- - -

25,708,457

25,708,457 - - - -

- - -

682,834,481

682,834,481 - - - -

- 993,925,169

993,925,169

19,414,419 - -

-

19,414,419 - - - -

7,370,758 - -

-

7,370,758 - - - -

2,793,663 - -

-

2,793,663 - - - -

5,058,157 - -

-

5,058,157 - - - -

34,636,997 - - - 34,636,997 - - - -

- - - 10,411,566 10,411,566 - - - -

- - - 160,561,169 160,561,169 - - - -

- - - 178,589,139 178,589,139 - - - -

- - - 36,436,697 36,436,697 - - - -

- - - 525,607,481 525,607,481 - - - -

- - - 911,606,052 911,606,052 - - - -

Carrying Amount Fair Value

Loans and

receivables

Available for

sale

instruments

Fair value

through

income

statementOther financial

instruments Total Level 1 Level 2 Level 3 Total

RupeesRupeesRupeesRupeesRupeesRupeesRupeesRupeesRupees

Impairment loss on investment in associate 73,025

-

19


18


20

Transactions with related parties

Significant transactions with related parties during six months are as follows:

Cash (used in)/generated from operations


Adjustments for:

Depreciation on property, plant and equipment

Gain on disposal of property, plant and equipment

Interest Income

Operating profit before changes in working capital

Changes in working capital

(Increase) /decrease in current assets


Stock in trade

Trade debts

Loans and advances

Trade deposits, prepayments and balances with statutory authorities

Increase in current liabilities


Total

(162,818,365)

36,673,026

(2,266,806)

(73,025)

(93,100,543)

3,988,565

32,290,606

(346,882)

(5,752,026)

8,230,709

9,609,866

(45,006,680)

(75,731,891)

36,121,984

-

(73,025)

(183,501)

(3,134,948)

49,294,846

21,525,539

2,674,514

(10,483,068)

1,250,781

60,944,163


Dec 31, 2017 Dec 31, 2016

Rupees Rupees

19


Dec 31, 2017 Dec 31, 2016

Relationship Rupees Rupees

Mrs. Mehvish Amin Sponsor

Office rent

Mrs. Shehla Segal Sponsor

Markup on subordinated loan

Mr. Sarmid Amin Sponsor

Markup on loan

Directors and other key management personnel Directors and executives

Remuneration and benefits

Provident Fund expense including interest Provident fund

600,000

454,000

2,385,264

16,393,230

10,223,733

600,000

454,496

-

15,627,090

10,936,622



December 31, 2017 (Un-audited)

Current

Trade debts

Loans and advances

Trade deposits


Non-current


Long term financing

Current


Interest accrued


June 30, 2017 (Audited)

Current

Trade debts

Loans and advances

Trade deposits


Non-current


Long term financing

Current


Interest accrued






19,761,301 - - - 19,761,301 - - - -

13,122,784 - - - 13,122,784 - - - -

2,793,663 - - - 2,793,663 - - - -

7,813,222 - - - 7,813,222 - - - -

43,490,970 - - - 43,490,970

- -

-

10,411,566 10,411,566

- - - -

- - -

96,816,880

96,816,880 - - - -

- - -

178,153,785

178,153,785 - - - -

- - -

25,708,457

25,708,457 - - - -

- - -

682,834,481

682,834,481 - - - -

- 993,925,169

993,925,169

19,414,419 - -

-

19,414,419 - - - -

7,370,758 - -

-

7,370,758 - - - -

2,793,663 - -

-

2,793,663 - - - -

5,058,157 - -

-

5,058,157 - - - -

34,636,997 - - - 34,636,997 - - - -

- - - 10,411,566 10,411,566 - - - -

- - - 160,561,169 160,561,169 - - - -

- - - 178,589,139 178,589,139 - - - -

- - - 36,436,697 36,436,697 - - - -

- - - 525,607,481 525,607,481 - - - -

- - - 911,606,052 911,606,052 - - - -

Carrying Amount Fair Value

Loans and

receivables

Available for

sale

instruments

Fair value

through

income

statementOther financial

instruments Total Level 1 Level 2 Level 3 Total

RupeesRupeesRupeesRupeesRupeesRupeesRupeesRupeesRupees

Impairment loss on investment in associate 73,025

-

50-C, Main Gulberg, Lahore, Pakistan.Tel: +92 42 3575 3761Fax: +92 42 3575 3688www.samintextile.com


20



Un-audited

Dec 31, 2017

Rupees

Significant balances with related parties as on balance sheet date are as follows:

Payable to Sponsors Sponsors 230,722,113

63,594,476

Payable to Provident Fund Provident fund 23,688,531

15,733,793


Dec 31, 2017 Dec 31, 2016

Rupees Rupees

21 Loss per share - basic and diluted

Loss for the period (167,300,493) (79,120,472)

Weighted average number of ordinary shares 26,728,000 26,728,000

Loss per share (Rupees) (6.26) (2.96)

Audited

Jun 30, 2017

Rupees

22 General

22.1 Corresponding figures have been rearranged wherever necessary, for the purpose of comparison. However, there

were no material reclassification or rearrangement to report.

22.2 Figures have been rounded off to the nearest rupees unless otherwise stated.

23 Date of authorization for issue

This condensed interim financial information was authorized for issue on February 23, 2018 by the Board of

Directors of the Company.

JEHANZEB AMIN

Chief Executive


Director/CFO

50-C, Main Gulberg, Lahore, Pakistan.Tel: +92 42 3575 3761Fax: +92 42 3575 3688www.samintextile.com


20



Un-audited

Dec 31, 2017

Rupees

Significant balances with related parties as on balance sheet date are as follows:

Payable to Sponsors Sponsors 230,722,113

63,594,476

Payable to Provident Fund Provident fund 23,688,531

15,733,793


Dec 31, 2017 Dec 31, 2016

Rupees Rupees

21 Loss per share - basic and diluted

Loss for the period (167,300,493) (79,120,472)

Weighted average number of ordinary shares 26,728,000 26,728,000

Loss per share (Rupees) (6.26) (2.96)

Audited

Jun 30, 2017

Rupees

22 General

22.1 Corresponding figures have been rearranged wherever necessary, for the purpose of comparison. However, there

were no material reclassification or rearrangement to report.

22.2 Figures have been rounded off to the nearest rupees unless otherwise stated.

23 Date of authorization for issue

This condensed interim financial information was authorized for issue on February 23, 2018 by the Board of

Directors of the Company.

JEHANZEB AMIN

Chief Executive


Director/CFO

Documents

Samin Textiles Limited · Ms. Nayab Ayaz Auditors Grant Thornton Anjum Rahman Chartered Accountants. 03 Interim Financial Report 02 Samin Textiles Limited ... (here-in-after referred