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1st QuarterSeptember 30, 2011
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1st Quarter September 30, 2011 1
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1st Quarter September 30, 20112
Contents
Company Information
Directors Report to the Shareholders
Balance Sheet
Profit & Loss Account
Statement of Comprehensive Income
Cash Flow Statement
Statement of Changes in Equity
Notes to the Financial Statements
3
4
5
6
7
8
9
10
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for and on behalf of the Board.
(Muhammad Anwar)
Chairman & Chief Executive
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EQUITY AND LIABILITIES
Share capital and reserves
Authorized share capital100 000 000 (June 30, 2011: 100 000 000)ordinary shares of Rupees 10 each
Issued, subscribed and paid up share capitalReserves
Surplus on revaluation of operating fixed assets-net of deferred tax
Total equity
Un-Audited
September 30,2011
( Rupees in thousand )
1 ,000 ,000 1 ,000 ,000
Note Audited
June 30,2011
5
492,099
2,020,786
2,512,885
1,640,385 1,640,388
Long term financing
Liabilities against assets subject to finance lease
Non-current liabilitiesLIABILITIES
553,111
57,599
610,710
Trade and other payables
Accrued mark-up
Short term borrowings
Current portion of non-current liabilities
Provision for taxation
Current liabilities1,349,855
123,788
5,523,333
311,856
177,474
7,486,306
8,097,016
1,318,565
140,717
5,935,690
350,401
151,068
7,896,441
8,463,148
Contingencies and commitments
Total liabilities
12,044,241 12,616,421TOTAL EQUITY AND LIABILITIES
6
Property, plant and equipment
Investment in an associate
Long term investments
Long term loans and advances
Long term deposits and prepaymentsDeferred income tax - asset
ASSETSNon-current assets
3,998,285
411,103
2,226,993
2,372
2,646
63,354
6,704,753
4,034,955
451,550
2,255,434
2,727
2,520
42,351
6,789,537
Stores, spares and loose tools
Stock in trade
Trade debts
Loans and advances
Short term deposits and prepayments
Accrued interest
Other receivables
Short term investments
Cash and bank balances
Current assets
190,808
1,232,463
3,267,698
346,485
23,185
3,253
234,723
33,940
6,933
160,147
1,658,003
3,391,911
309,062
67,104
2,806
181,876
37,444
18,531
5,339,488 5,826,884
TOTAL ASSETS 12,044,241 12,616,421
(Muhammad Anwar)
Chairman & Chief Executive
(Khalid Bashir)
Director
512,086
54,621
566,707
7
8
9
Condensed Interim Balance Sheet
as at September 30, 2011
492,099
1,814,741
2,306,840
The annexed notes form an integral part of this condensed interim financial information.
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(Muhammad Anwar)
Chairman & Chief Executive
(Khalid Bashir)
Director
Condensed Interim Profit and Loss Account (Un-Audited)
for the 1st Quarter Ended September 30, 2011
Sales
Cost of sales
September 30,2011
(Rupees in thousand)
Note
10
Gross profit
Other operating income
Profit from operations
The annexed notes form an integral part of this condensed interim financial information.
122,490
43,195
31,088
3,279,118
2,879,410
148,987
49,700
10,772
2,546,764
2,331,722
196,773209,459
399,708215,042
202,9355,583
1.30(3.68)
Distribution cost
Administrative expenses
Other operating expenses
(Loss) / earning per share basic and diluted (Rupees)
September 30,2010
Finance cost
Share of loss of associate
(Loss) / profit before taxation
Provision for taxation
(Loss) / profit after taxation
119,416
(34,493)
94,089
30,059
64,030
188,488
(40,447)
(175,718)
5,403
(181,121)
45,063
247,998
47,634
53,217
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(Muhammad Anwar)
Chairman & Chief Executive
(Khalid Bashir)
Director
Condensed Interim Statement of Comprehensive Income (Un-Audited)
for the 1st Quarter Ended September 30, 2011
(Loss) / profit after taxation
Other comprehensive income
(Deficit) /surplus arising on remeasurement of available
for sale investments to fair value
Total comprehensive (loss) / income for the period
September 30,2011
(Rupees in thousand)
64,030
2,076
66,106
(181,121)
(24,927)
(206,048)
September 30,2010
The annexed notes form an integral part of this condensed interim financial information.
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Condensed Interim Cash Flow Statement (Un-Audited)
for the 1st Quarter Ended September 30, 2011
Cash flows from operating activities
Cash generated from / (utilized) in operations
Finance cost paid
Income tax paid
Dividend paid
Increase in long term deposits and prepayments
(Rupees in thousand)
September 30,2011
September 30,2010
(337,175)
Capital expenditure on property, plant and equipment
Proceeds from sale of property, plant and equipment
Decrease in long term loans and advances
(163,314)
6,500
138
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period 24,054
(Muhammad Anwar)
Chairman & Chief Executive
(Khalid Bashir)
Director
418,939
(24,687)
694
355
6,933
646,378
(205,417)
(21,895)
(2)
(125)
Net cash generated from / (utilized) in
operating activities
Net cash used in investing activities (156,676)(23,638)
Repayment of long term financing
Proceeds from long term financing
Proceeds from finance lease
Short term borrowings - net
(79,390)
147,085
-
433,791
Cash flows from financing activities
(150,216)
150,000
5,674
(412,357)
Net cash from financing activities 501,486(406,899)
Net (decrease) / increase in cash and cash equivalents 7,635(11,598)
16,41918,531
The annexed notes form an integral part of this condensed interim financial information.
11 (196,554)
(108,600)
(32,012)
(9)
-
Cash flows from investing activities
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Condensed Interim Statement of Changes in Equity (Un-Audited)
for the 1st Quarter Ended September 30, 2011
Balance as at July 01, 2010
Transfer from surplus on revaluation of operating fixed assets
on account of incremental depreciation
Total comprehensive income for the quarter ended
September 30, 2010
Sharecapital
UnappropriatedProfit /
(accumulated loss)
TotalEquity
Revenue Reserves
GeneralDividend
Equalization
Capital
Reserve
Fair Value
(Rupees in thousand)
(Muhammad Anwar)
Chairman & Chief Executive
(Khalid Bashir)
Director
Reserves
Sub total
300,908
3
64,030
2,180,340
3
66,106
2,672,439
3
66,106
Balance as at September 30, 2010 2,246,449 2,738,548364,941
Final dividend for the year ended June 30, 2010
at the rate of Rupees 1.50 per share
Transfer from surplus on revaluation of operating fixed assets
on account of incremental depreciation - net of deferred tax
Share of associate's items directly credited in equity
Total comprehensive loss for the period from
October 1, 2010 to June 30, 2011
(73,815)
19
4,761
(182,675)
(73,815)
19
4,761
(156,628)
(73,815)
19
4,761
(156,628)
Balance as at July 01, 2011 2,020,786 2,512,885113,231
Balance as at September 30, 2011 1,814,741 2,306,840(67,887)
The annexed notes form an integral part of this condensed interim financial information.
Transfer from surplus on revaluation of operating fixed assets
on account of incremental depreciation
Total comprehensive loss for the quarter ended
September 30, 2011
3
(181,121)
3
(206,048)
3
(206,048)
492,099
-
-
1,773,643
-
-
30,000
-
-
492,099 77,865 1,773,643 30,000
-
-
-
-
492,099 103,912 1,773,643 30,000
492,099 78,985 1,773,643 30,000
75,789
-
2,076
-
-
-
(24,927)
-
-
-
26,047
-
-
-
-
-
-
-
-
-
-
-
-
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Selected Notes to the Condensed Interim Financial Information (Un-Audited)
for the 1st Quarter Ended September 30, 2011
The company and its activities1.
The Crescent Textile Mills Limited (the Company) is a public limited company incorporated in Pakistan under theCompanies Ordinance, 1984. The registered office of the Company is located at 40-A, Off: Zafar Ali Road,Gulberg-V, Lahore. Its shares are quoted on all the Stock Exchanges in Pakistan. The Company is engaged inbusiness of textile manufacturing comprising of spinning, combing, weaving, dyeing, bleaching, printing,stitching, buying, selling and otherwise dealing in yarn, cloth and other goods and fabrics made from rawcotton, synthetic fiber(s) and to generate, accumulate, distribute, supply and sale of electricity. The Companyalso operates a cold storage unit.
Basis of preparation2.
This condensed interim financial information is un-audited and is being submitted to shareholders, as requiredby section 245 of the Companies Ordinance, 1984. This condensed interim financial information of the Companyfor the 1st quarter ended September 30, 2011 has been prepared in accordance with the requirements of theInternational Accounting Standard (IAS) 34 "Interim Financial Reporting" and provisions of and directivesissued under the Companies Ordinance, 1984 as applicable in Pakistan and notified by the Securities andExchange Commission of Pakistan (SECP). In case where requirements differ, the provisions of or directivesissued under the Companies Ordinance, 1984 have been followed. This condensed interim financialinformation should be read in conjunction with the audited annual published financial statements for the yearended June 30, 2011.
Accounting policies and computation methods3.
The accounting policies and methods of computations adopted for the preparation of this condensed interimfinancial information are the same as applied in the preparation of the preceding audited annual publishedfinancial statements of the Company for the year ended June 30, 2011.
September 30,2011
June 30,2011
Un-Audited
( Rupees in thousand )
Audited
Long term financing5.
Financing from banking companies
Opening balance
Add: Obtained during the period / year
Less: Repaid during the period / year
Less: Current portion shown under current liabilities
853,428
150,000
(150,216)
853,212
(300,101)
553,111
1,108,019
147,085
(401,676)
853,428
(341,342)
512,086
Critical accounting estimates and judgments4.
The preparation of this condensed interim financial information in conformity with the approved accountingstandards requires the use of certain critical accounting estimates. It also requires the management to exerciseits judgment in the process of applying the Company's accounting policies. Estimates and judgments arecontinually evaluated and are based on historical experience and other factors, including expectations of futureevents that are believed to be reasonable under the circumstances.
During preparation of this condensed interim financial information, the significant judgments made by the
management in applying the Companys accounting policies and the key sources of estimation and uncertaintywere the same as those that applied in the preceding audited annual published financial statements of theCompany for the year ended June 30, 2011.
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Contingencies and commitments6.
Contingencies
Commitments
Property, plant and equipment7.
Operating fixed asset (Note 7.1)Capital work in progress (Note 7.2)
3,977,437
20,848
3,998,285
3,998,049
36,906
4,034,955
Letters of guarantee of Rupees 129.018 million (June 30, 2011: Rupees 115.918 million) are given by thebanks of the Company to Sui Northern Gas Pipeline Limited against gas connection and collector ofCustoms against import of raw material and supplies.
Post dated cheques of Rupees 11.648 million (June 30, 2011: Rupees 9.412 million) are issued to customauthorities in respect of duties on imported material availed on the basis of consumption and exportplans. If documents of exports are not provided on due dates, cheques issued as security shall beencashable.
Operating fixed asset7.1
Opening book value
Add: Additions during the period/year (Note 7.1.1)
Less: Deletions/write off during the period/year (Note 7.1.2)
Less: Depreciation charged for the period/year
Book value at the end of the period/year
3,998,049
40,745
4,038,794
874,038,707
61,270
3,977,437
3,948,372
313,073
4,261,445
10,1234,251,322
253,273
3,998,049
Additions during the period / year7.1.1
Building on freehold land
Plant and machinery Owned
Plant and machinery Lease hold
Factory tools and equipment
Gas and electric installations
Vehicles
Office equipment
Software
-
3,799
30,343
740
-
60
101
5,702
40,745
20,237
262,583
-
2,917
7,886
15,632
3,818
-
313,073
-
Contracts for capital expenditure amounting to Rupees Nil (June 30, 2011: Rupees 82.872 million).Letters of credit other than for capital expenditure amounting to Rupees 23.949 million (June 30, 2011:
Rupees 98.839 million).
-
--
The Company is contingently liable to the extent of Rupees 130.616 million (June 30, 2011: Rupees130.616 million) as its share of contingent liabilities of its associate.
-
September 30,2011
June 30,2011
Un-Audited
( Rupees in thousand )
Audited
Book value of deletions/write off during the period / year7.1.2
Plant and machinery
Factory tools and equipmentGas and electric installations
Vehicles
Furniture and fixtures
Office equipment
87
--
-
-
-
87
5,783
715647
2,793
94
91
10,123
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Capital work in progress7.2
BuildingPlant and machinery
Advances for vehicles
60
9,490
11,298
20,848
-
34,406
2,500
36,906
Investment in an associate8.
UnquotedCost
Share of post acquisition profit
At the beginning of the period/year
Share of loss (Note 8.1)
Share of associate's item directly credited in equity
Elimination of inter company adjustment
269,264
182,286
(40,447)
-
-
141,839
411,103
269,264
348,606
(150,712)
5,290
(20,898)
182,286
451,550
8.1
Quoted - Related parties
Unquoted - Related parties
Quoted - Others
Unquoted - Others
Impairment loss charged to profit and loss account
Fair value adjustment
130,408
1,976,500
2,616
41,998
2,151,522
(3,514)
78,985
2,226,993
133,041
1,976,500
2,708
41,998
2,154,247
(2,725)
103,912
2,255,434
9.
Long term investments- available for sale
Share of loss of associate has been taken on the basis of un-audited accounts of the associate for thequarter ended September 30, 2011 (June 30, 2011: Audited accounts for the year ended June 30, 2011).
September 30,2011
June 30,2011
Un-Audited
( Rupees in thousand )
Audited
Work-in-process:
Opening stock
Closing stock
Cost of goods manufactured
133,539
(129,564)
3,975
1,593,228
84,732
(132,817)
(48,085)
1,985,606
Finished goods:
Opening stockClosing stock
Cost of sales - purchased for resale
1,167,910(852,757)
315,153
423,341
2,331,722
783,746(822,868)
(39,122)
932,926
2,879,410
Cost of sales
10.
Raw material consumedCloth and yarn purchased
Stores, spare parts and loose tools
Packing materials
Processing and weaving charges
Salaries, wages and other benefits
Fuel and power
Repair and maintenance
Insurance
Depreciation
Other factory overheads
709,921
123,886
143,708
62,022
84,793
138,188
242,243
17,492
4,710
57,263
5,027
1,589,253
956,705
232,466
153,617
96,746
102,570
175,281
243,203
10,773
3,975
56,278
2,077
2,033,691
(Rupees in thousand)
Un-Audited
September 30,2011
September 30,2010
Quarter ended
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(Loss) / profit before taxation
Adjustments for non-cash charges and other items:
Depreciation
Gain on disposal of operating fixed assets
Impairment loss on investments
Provision for workers welfare fund
Provision for workers profit participation fund
Share of loss of associate
Income from loans and advances
Finance cost
Working capital changes (Note 11.1)
(175,718)
61,270
(607)
7,018
-
-
40,447
-
188,488
525,480646,378
94,089
59,718
(1,748)
10,794
2,384
6,923
34,493
(29,710)
129,246
(502,743)
(196,554)
Cash generated from operations11.
(Rupees in thousand)
Un-Audited
September 30,2011
September 30,2010
Quarter ended
(30,661)
425,540
124,213
(15,528)
43,919
(447)
(52,847)
494,189
31,291
525,480
(16,993)
(218,400)
(420,968)
(36,098)
(2,500)
(3,228)
(34,705)
(732,892)
230,149
(502,743)
11.1
Working capital changes
(Increase) / decrease in current assets:
Stores, spare parts and loose tools
Stock-in-trade
Trade debts
Loans and advances
Short term deposits and prepayments
Interest accrued
Other receivables
Increase in current liabilities:
Trade and other payables
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Segment information12.
Quarter ended
September30, 2011
(Un-Audited)
Spinning Weaving Processing & Home Textile
(Un-Audited) (Un-Audited)
Sales
Cost of sales
Gross profit
12.1
1,021,331
1,036,885
(15,554)
1,501,903
1,280,151
221,752
11,569
19,266
30,835
11,588
17,264
28,852
1,136,688
1,107,552
29,136
1,560,109
1,460,272
99,837
22,319
3,782
26,101
19,188
3,389
22,577
Distribution cost
Administrative expenses
1,797,707
1,569,509
228,198
1,817,231
1,785,567
31,664
114,747
23,678
138,425
91,376
19,855
111,231
(Loss) / profit before taxation and
unallocated income and expenses (46,389) 192,900 3,035 77,260 89,773 (79,567)
Unallocated income
and expenses
Other operating expenses
Other operating income
Finance cost
Share of loss of associate
Provision for taxation
(Loss)/ profit after taxation
September30, 2010
Reconciliation of reportable segment assets and liabilities:
Spinning Weaving Processing & Home Textile
Total assets for reportable
segments
12.2
1,366,511 1,481,436 1,478,333 1,692,019 1,377,740 1,778,359
September30, 2011
June30, 2011
(U n- Au di ted ) (Au di te d) ( Un -Aud it ed) (Au di ted ) (U n- Au di te d) (Au dit ed)
Unallocated assets
All segment assets are allocated to reportable segments other than those directly relating to corporate and tax assets.
Total liabilities for reportable
segments 858,125 1,371,572 1,051,463 1,003,310 783,871 798,694
Unallocated liabilities
All segment liabilities are allocated to reportable segments other than trade and other payables, corporate
September30, 2011
September30, 2010
September30, 2011
September30, 2010
Quarter ended Quarter ended
September30, 2011
June30, 2011
September30, 2011
June30, 2011
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borrowings and current and deferred tax liabilities.
Trading
(Un-Audited)
403,127
423,573
(20,446)
946,378
933,342
13,036
-
-
-
( 20 ,44 6) 13 ,0 36
Power Generation Cold Storage Elimination ofInter-segment transactions
(Un-Audited) (Un-Audited) (Un-Audited)
209,825
218,014
(8,189)
250,583
218,028
32,555
352
2,817
3,169
338
2,525
2,863
5,004
3,107
1,897
4,008
3,144
864
-
157
157
-
162
162
2,026,918
2,026,918
-
2,801,094
2,801,094
-
-
-
-
-
-
-
(11,358) 29,692 1 ,740 702 --
Total - Company
(Un-Audited)
2,546,764
2,331,722
215,042
3,279,118
2,879,410
399,708
148,987
49,700
198,687
122,490
43,195
165,685
16,355 234,023
(10,772)
47,634
(188,488)
(40,447)
(5,403)
(181,121)
(31,088)
45,063
(119,416)
(34,493)
(30,059)
64,030
-
-
-
1,949,681 1,796,283 450,794 444,015 13,668 11,832 6,636,727 7,203,944
Trading Power Generation Cold Storage Total - Company
5,407,514
12,044,241
5,412,477
12,616,421
(U n-Au di ted ) (Au di ted ) (U n-Au di ted ) (Au di ted ) ( Un- Au di ted ) (Au di ted ) ( Un- Au di ted ) (Au di ted )
- - 247,422 277,585 95 827 2,940,976 3,451,988
5,156,040
8,097,016
5,011,160
8,463,148
Rupees in thousand
Rupees in thousand
September30, 2011
June30, 2011
Quarter ended
September30, 2011
September30, 2010
Quarter ended Quarter ended Quarter ended
September30, 2011
September30, 2010
September30, 2011
September30, 2010
September30, 2011
September30, 2010
Quarter ended
September30, 2011
September30, 2010
June30, 2011
June30, 2011
June30, 2011
September30, 2011
September30, 2011
September30, 2011
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(Muhammad Anwar)
Chairman & Chief Executive
(Khalid Bashir)
Director
Date of authorization14.
This condensed interim financial information was approved by the Board of Directors and authorized forissue on October 27, 2011.
Corresponding Figures15.
Comparative figures have been rearranged / reclassified, wherever necessary, for the purpose of comparison.However, no significant rearrangements / reclassifications have been made except.
General16.
Figures have been rounded off to the nearest thousand rupees.
Associated Companies
Employees Provident Fund Trust
Remuneration paid to chief executive, director and executives
20,625
133,589
403
7,619
32,938
6,210
4,007
21,873
34,323
38,243
379
6,129
9,516
34,015
3,818
21,994
Transaction with related parties12.
The related parties comprise associated undertakings, other related companies, staff retirement funds and keymanagement personnel. Significant transactions with related parties are as under:
(Rupees in thousand)
Un-Audited
September 30,
2011
September 30,
2010
Quarter ended
Company Type Nature of Transaction
Purchases
Sales
Processing income
Insurance charges
Interest income
Dividend income
Amount contributed
Net gain on fair value of derivative financial instruments is adjusted against finance cost instead ofshowing separately in other operating income.
-
Exchange loss on foreign currency loans is merged in finance cost instead of showing separately in otheroperating expenses.
-
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