HUSEIN INDUSTRIES LIMITED HUSEIN INDUSTRIES LIMITED HUSEIN INDUSTRIES LIMITED HUSEIN INDUSTRIES LIMITED

CONDENSED INTERIM CONDENSED INTERIM CONDENSED INTERIM CONDENSED INTERIM

FINANCIAL INFORMATION FOR THE FINANCIAL INFORMATION FOR THE FINANCIAL INFORMATION FOR THE FINANCIAL INFORMATION FOR THE
PERIOD ENDED DECEMBER 31,2011 PERIOD ENDED DECEMBER 31,2011 PERIOD ENDED DECEMBER 31,2011 PERIOD ENDED DECEMBER 31,2011
BOARD OF DIRECTORS BOARD OF DIRECTORS BOARD OF DIRECTORS BOARD OF DIRECTORS
Mr. Aziz L. Jamal Chairman/Chief Executive
Mr. Rashid L. Jamal Director
Mr. Husein Jamal Director
Mrs. Aisha Bai Suleman Director
Mr. Akhtar Wasim Dar Director
Mr. Ahsan Jamal Director
Miss. Hina Abdul Rashid Director
BOARD OF AUDIT COMMITTEE BOARD OF AUDIT COMMITTEE BOARD OF AUDIT COMMITTEE BOARD OF AUDIT COMMITTEE
Mr. Akhtar Wasim Dar Chairman
Mr. Rashid L. Jamal Member
Mr. Husein Jamal Member
Mr. Mirza Akhter Shikoh Secretary
COMPANY SECRETARY COMPANY SECRETARY COMPANY SECRETARY COMPANY SECRETARY
Mr. M. Anwar Kaludi
CORPORATE INFORMATION CORPORATE INFORMATION CORPORATE INFORMATION CORPORATE INFORMATION
REGISTERED & HEAD OFFICE REGISTERED & HEAD OFFICE REGISTERED & HEAD OFFICE REGISTERED & HEAD OFFICE
HT-8, Landhi Industrial & Trading Estate,
Landhi, Karachi-75120.
Tel: (9221) 35018536-8
Fax: (9221) 35018545
E-mail: sales@husein.com
BANKERS BANKERS BANKERS BANKERS
Habib Metropolitan Bank Limited
Habib Bank Limited
MCB Bank Limited
Soneri Bank Limited
AUDITORS AUDITORS AUDITORS AUDITORS
Haroon Zakaria & Co.
Chartered Accountants
SHARE REGISTRAR SHARE REGISTRAR SHARE REGISTRAR SHARE REGISTRAR
C & K Management Associates (Pvt) Limited
404, Trade Towers, Near Hotel Metropole,
Abdullah Haroon Road
Karachi.
MILLS MILLS MILLS MILLS
HT-8, Landhi Industrial & Trading Estate,
Landhi, Karachi-75120 Landhi, Karachi-75120
Observation of the auditors
BRIEF REVIEW
In the name of Allah the Most Merciful and the Most Benevolent
Directors of your company are pleased to present the half yearly financial statements and the Auditors
review report thereon to the members for the half year ended December 31, 2011.
The sales of your company was Rs. 230 Million for the half year under review as compared to Rs. 333
Million in the previous year. After accounting for all charges your company incurred loss after taxation of
Rs. 88 Million as compared to Rs. 69 Million in previous year.
During the half year under review the prices of inputs have shown upward trend. Energy shortage and
security and law and order problems are the main reasons for adverse economic conditions. However your
management is taking all steps to control these problems by efficient and economical operations.
Auditors have raised observations in their report on review of condensed interim financial information to
the members in respect of valuation of inventories, impairment tests of stores and spares, in this regard it
is clarified that the standard practice followed by the companyis to value the inventories, stores and spares
at lower of cost and net realizable value. However necessary exercise will be carried out and the results
would be incorporated in next annual financial statements of the Company.
Karachi: the
May 07,2013
Your Directors also like to express thanks the assistance, support and cooperation given by various
Government Departments Regulatory Authorities, Shareholders, Customers, Suppliers and Financial
Institutions.
On behalf of the Board
Aziz L. Jamal
Chairman & Chief Executives
As regards overdue export receivables which has not been realized it is stated that due to global recession
our export proceeds realization have been delayed and we now expect that the remittances would
commence in the near future.
We have negotiated with the bank which has agreed to extend maturity periods in order to coincide with
the projected cash flows of the Company. The Company is a going concern andyour directors are
committed to continue the business of the company.It is reiterated that the uncertainly as indicated in the
report on review of condensed interim financial information to the members is unlikely to materialize. The
uncertainly would have continued had the company would not have negotiated for restructuring of the
finances. Accordingly preparation of this condensed interim financial information on going concern basis
is justified.
Acknowledgement
The Management would like to place on record its appreciation for the continued dedication, hard work
commitment and loyalty of the executives, staff and workers engaged with the company at various levels.
May 07,2013
Introduction Introduction Introduction Introduction
Scope of review Scope of review Scope of review Scope of review
INDEPENDENT AUDITORS REPORT ON REVIEW OF INDEPENDENT AUDITORS REPORT ON REVIEW OF INDEPENDENT AUDITORS REPORT ON REVIEW OF INDEPENDENT AUDITORS REPORT ON REVIEW OF
CONDENSED INTERIM FINANCIAL INFORMATION TO THE MEMBERS CONDENSED INTERIM FINANCIAL INFORMATION TO THE MEMBERS CONDENSED INTERIM FINANCIAL INFORMATION TO THE MEMBERS CONDENSED INTERIM FINANCIAL INFORMATION TO THE MEMBERS
We have reviewed the accompanying condensed interim balance sheet of HUSEIN HUSEIN HUSEIN HUSEIN INDUSTRIES INDUSTRIES INDUSTRIES INDUSTRIES
LIMITED LIMITED LIMITED LIMITED (the Company) as at December 31, 2011, and the related condensed interim profit and loss
account, condensed interim statement of comprehensive income, condensed interim cash flow
statement and condensed interim statement of changes in equity and notes to interim financial
information for the six month period then ended (here-in-after referred to as the Interim financial
information). Management is responsible for the preparation and fair presentation of this interim
financial information in accordance with approved accounting standards as applicable in Pakistan.
Our responsibility is to express a conclusion on this interim financial information based on our
review. The figures of the condensed profit and loss account for the quarter ended December 31, 2011
and 2010 have not been reviewed as we are required to review only the cumulative figures for the six
months period ended December 31, 2011.
We conducted our review in accordance with International Standard on Review Engagements 2410,
Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A
Basis for adverse conclusion Basis for adverse conclusion Basis for adverse conclusion Basis for adverse conclusion
ii. The Company has not carried out proper exercise of physical inventory, evaluating lower of cost
and net realizable value of stock in trade comprising of raw material, semi finished and finished
amounting to Rs. 468.501 (June 2011: Rs. 527.290) as disclosed in note 7 to the annexed interim
financial information. We have only been provided summary of these stocks showing quantities with
valuation without supported by detailed stock records. Accordingly, our conclusion regarding the
existence and value of stock in trade could not made;
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.
i.Stock records of Stores, spares and loose tools amounting to Rs. 95.181 (June 2011: Rs. 94.018)
million has not been made available to us and proper exercise of physical inventory, valuing cost and
assessment of impairment has not been carried. Accordingly, our conclusion regarding the existence
and value of stores, spares and loose tools could not be made;
These conditions along with the matters reported in Paragraphs (i) to (iii) above indicate the
existence of a material uncertainty that may cast significant doubt on the Companys ability to
continue as a going concern and therefore the Company may be unable to realize its assets and
discharge its liabilities in the normal course of business. The annexed interim financial information
does not disclose this fact.
iv. During the period, the Company has incurred loss after taxation amounting to Rs. 87.845 (Dec
2010: Rs. 69.126) million and its accumulated losses stand at Rs. 657.806 (Dec 2010: Rs. 254.809)
million eroding the shareholders equity to negative Rs. 225.547 (Dec 2010: positive Rs. 177.450)
million. Further, the turnover of the company has fallen by 31% in the current period as compared to
corresponding period and the Company has incurred gross loss of Rs. 66.919 million for the current
period as against gross profit of Rs. 43.911 million for the corresponding period. Moreover, as per
restructured financing arrangement with the lending bank, the company has to sell its properties to
pay off long term finance amounting to Rs. 953 million.
iii. Companys trade debts as disclosed in Note 8 to the annexed interim financial information
include overdue export receivables Rs. 407.705 (June 2011: Rs. 410.294) million which has not yet
been realized during the current financial period. Furthermore, no provision has been made against
these receivables in this interim financial information. Accordingly, our conclusion regarding
realizability of these receivables could not made.
Adverse conclusion Adverse conclusion Adverse conclusion Adverse conclusion
Other matter Other matter Other matter Other matter
In their review report dated March 12, 2011, the auditors expressed an adverse conclusion for
reasons same as mentioned in paragraphs (i) and (ii) above and also included emphasis of matter
paragraphs regarding going concern assumption and unrealized exports receivables amounting to Rs.
405.134 million.
does not disclose this fact.
Our review indicates that, owing to the significance of the matters stated in paragraphs i to iv above
and the possible adjustments that may require but are not determined, the interim financial
information does not give a true and fair view of the financial position of the HUSEIN INDUSTRIES HUSEIN INDUSTRIES HUSEIN INDUSTRIES HUSEIN INDUSTRIES
LIMITED LIMITED LIMITED LIMITED as at December 31, 2011 and of its financial performance and its cash flows for the six-
month period then ended in accordance with approved accounting standards as applicable in
Pakistan.
The interim financial information of the Company for the six months period ended December 31,
2010 and for the year ended June 30, 2011 were reviewed and audited by another chartered
accountant firm.
Haroon Zakaria & Company Place: Karachi
Chartered Accountants Dated: 07-MAY-2013
Engagement Partner:
Muhammad Iqbal
In their audit report dated September 15, 2012, the auditor expressed an adverse opinion for reasons
same as mentioned in paragraphs (i) to (iv) above and also included emphasis of matter paragraph
regarding inordinately delay in convening the annual general meeting.
December 31, June 30,
2011 2011
(Unaudited) (Audited)
Note
ASSETS
Non-Current Assets
Property, plant and equipment 5 649,000 666,793
Deferred tax 6 19,736 19,736
Long term investments 362 569
Long term deposits 7,981 7,981
677,079 695,079
Current Assets
Stores, spares and loose tools 95,181 94,018
Stock in trade 7 468,501 527,290
Trade debts 8 676,762 714,447
CONDENSED INTERIM BALANCE SHEET (UN - AUDITED)
- - - - (Rupees in '000) - - - -
Trade debts 8 676,762 714,447
Loans and advances - Considered good 9 16,518 3,716
Deposits and short term prepayments 1,243 1,243
Other receivables - Considered good 7,011 3,976
Tax refunds due from government 13,782 32,635
Cash and bank balances 7,806 1,980
1,286,804 1,379,305
Total Assets 1,963,883 2,074,384
December 31, June 30,
2011 2011
(Unaudited) (Audited)
Note
EQUITY AND LIABILITIES
Share Capital and Reserves
Authorised share capital
15,000,000 Ordinary shares of Rs. 10 each 150,000 150,000
Issued, subscribed and paid up share capital
10,625,900 Ordinary shares of Rs. 10 each 106,259 106,259
Reserves 10 (331,806) (243,754)
Shareholders' Equity (225,547) (137,495)
Surplus on revaluation of fixed assets 333,715 333,715
Non-Current Liabilities
Long term finance 11 1,447,159 1,440,897
Deferred liability -staff gratuity 12,666 13,303
1,459,825 1,454,200
Current Liabilities
- - - - (Rupees in '000) - - - -
AS AT DECEMBER 31, 2011
Current Liabilities
Short term borrowings 12 133,165 94,449
Trade and other payables 13 174,921 213,655
Accrued markup 3,765 485
Current portion of long term finance 11 21,716 54,093
Unclaimed dividend 44,129 44,129
Provision for taxation 18,194 17,152
395,890 423,964
Contingencies and Commitments 14 - -
Total Equity and Liabilities 1,963,883 2,074,384
________________________ _________________
Aziz L.Jamal Akhtar Wasim Dar
Chairman & Chief Executive Director
The annexed notes 1-18 form an integral part of this condensed interim financial information.

December 31, December 31, December 31, December 31,
2011 2010 2011 2010
Note
Sales - net 15 230,438 333,167 53,408 181,495
Cost of sales (297,357) (289,256) (87,884) (152,352)
Gross (loss) / profit (66,919) 43,911 (34,476) 29,143
Administrative expenses (13,750) (12,506) (7,963) (9,829)
Distribution expenses (7,151) (11,125) (1,806) (8,254)
(20,901) (23,631) (9,769) (18,083)
(87,820) 20,280 (44,245) 11,060
Other Operating income 6,330 64 3,855 10
Operating (loss) / profit (81,490) 20,344 (40,390) 11,070
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN - AUDITED)
FOR THE HALF YEAR ENDED DECEMBER 31, 2011
Half year ended Quarter ended
- - - - (Rupees in '000) - - - -
Financial charges (4,038) (74,783) (1,849) (36,678)
Other operating charges - (11,362) - (11,362)
(4,038) (86,145) (1,849) (48,040)
Loss before taxation (85,528) (65,801) (42,239) (36,970)
Taxation - Current (2,317) (3,325) (1,770) (2,525)
Loss after taxation (87,845) (69,126) (44,009) (39,495)
Loss per share-basic (8.27) (6.51) (4.14) (3.72)
________________________ _________________
Aziz L.Jamal Akhtar Wasim Dar
Chairman & Chief Executive Director
The annexed notes 1-18 form an integral part of this condensed interim financial information.

December 31, December 31, December 31, December 31,
2011 2010 2011 2010
Loss for the period (87,845) (69,126) (44,009) (39,495)
Other comprehensive loss
Loss on remeasurement of available
for sales investment (207) - - -
Total comprehensive loss for the period (88,052) (69,126) (44,009) (39,495)
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE HALF YEAR ENDED DECEMBER 31, 2011
Half year ended Quarter ended
- - - - (Rupees in '000) - - - -
________________________ _________________
Aziz L.Jamal Akhtar Wasim Dar
Chairman & Chief Executive Director
The annexed notes 1-18 form an integral part of this condensed interim financial information.
December 31, December 31,
2011 2010
(Unaudited) (Unaudited)
A. CASH FLOW FROM OPERATING ACTIVITIES
Loss before taxation (85,528) (65,801)
Adjustments for non cash items and other charges
Depreciation 20,210 22,280
Provision for gratuity 346 -
Dividend income - (32)
Financial charges 4,038 74,783
Provision for doubtful debts - 11,362
Cash (used in) / generated from operating activities (60,934) 42,592
before working capital changes
Working capital changes
CONDENSED INTERIM CASH FLOW STATEMENT (UN - AUDITED)
FOR THE HALF YEAR ENDED DECEMBER 31, 2011
- - - - (Rupees in '000) - - - -
Working capital changes
(Increase)/ decrease in current assets
Stores, spares and loose tools (1,163) (4,560)
Stock in trade 58,789 5,098
Trade debts 37,685 9,610
Loans and advances - Considered good (12,802) (26,334)
Deposits and short term prepayments - (6)
Other receivables (3,034) (228)
79,474 (16,420)
Decrease in current liabilities
Deferred liability -staff gratuity (38,734) (32,440)
Net cash used in operations (20,194) (6,268)
Staff gratuity paid (983) (976)
Tax refund / (paid) - net 17,578 (3,668)
Financial charges paid (758) (35,172)
Net cash used in operating activities (4,357) (46,084)
B. CASH FLOW FROM INVESTING ACTIVITIES
Fixed capital expenditures (2,417) -
Dividend received - 32
Net cash (used in)/generated from investing activities (2,417) 32
December 31, December 31,
2011 2010
(Unaudited) (Unaudited)
Note
C. CASH FLOW FROM FINANCING ACTIVITIES
Repayments of long term finance (26,115) (20,460)
Proceeds from short term borrowing - 34,697
Dividend paid - (102)
Net cash (used in)/generated from financing activities (26,115) 14,135
Net decrease in cash and cash equivalents (A+B+C) (32,889) (31,917)
Cash and cash equivalent at beginning of the period (43,670) (244,046)
(76,559) (275,963)
CASH AND CASH EQUIVALENT
Tax refunds due from government 7,806 6,158
Running finance facility 12 (84,365) (282,121)
(76,559)
Cash and cash equivalent at end of the period
- - - - (Rupees in '000) - - - -
(76,559) (275,963)
________________________ _________________
Aziz L.Jamal Akhtar Wasim Dar
Chairman & Chief Executive Director
The annexed notes 1-18 form an integral part of this condensed interim financial information.
Capital Capital Capital Capital
Balance as at July 01, 2010 106,259 33,858 292,142 (185,683) 106,459 140,317 246,576
Loss for the period - - - (69,126) (69,126) (69,126) (69,126)
Other comprehensive income for the period - - - - - - -
Total comprehensive loss - - - (69,126) (69,126) (69,126) (69,126)
Balance as at December 31, 2010 Balance as at December 31, 2010 Balance as at December 31, 2010 Balance as at December 31, 2010 106,259 106,259 106,259 106,259 33,858 33,858 33,858 33,858 292,142 292,142 292,142 292,142 (254,809) (254,809) (254,809) (254,809) 37,333 37,333 37,333 37,333 71,191 71,191 71,191 71,191 177,450 177,450 177,450 177,450
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY - (UN-AUDITED) CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY - (UN-AUDITED) CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY - (UN-AUDITED) CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY - (UN-AUDITED)
FOR THE HALF YEAR ENDED DECEMBER 31, 2011 FOR THE HALF YEAR ENDED DECEMBER 31, 2011 FOR THE HALF YEAR ENDED DECEMBER 31, 2011 FOR THE HALF YEAR ENDED DECEMBER 31, 2011
Reserves Reserves Reserves Reserves
Ordinary Ordinary Ordinary Ordinary
Share Share Share Share
capital capital capital capital
Total Total Total Total
Revenue Revenue Revenue Revenue
Total Total Total Total Share Share Share Share
Premium Premium Premium Premium
General General General General
Accumulate Accumulate Accumulate Accumulate
d losses d losses d losses d losses
Sub Total Sub Total Sub Total Sub Total
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - Rupees in '000' - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Rupees in '000' - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Rupees in '000' - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Rupees in '000' - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Balance as at July 01, 2011 Balance as at July 01, 2011 Balance as at July 01, 2011 Balance as at July 01, 2011 106,259 33,858 292,142 (569,754) (277,612) (243,754) (137,495)
Loss for the period - - - (87,845) (87,845) (87,845) (87,845)
Other comprehensive loss - - - (207) (207) (207) (207)
Total comprehensive loss Total comprehensive loss Total comprehensive loss Total comprehensive loss - - - (88,052) (88,052) (88,052) (88,052)
Balance as at December 31, 2011 Balance as at December 31, 2011 Balance as at December 31, 2011 Balance as at December 31, 2011 106,259 106,259 106,259 106,259 33,858 33,858 33,858 33,858 292,142 292,142 292,142 292,142 (657,806) (657,806) (657,806) (657,806) (365,664) (365,664) (365,664) (365,664) (331,806) (331,806) (331,806) (331,806) (225,547) (225,547) (225,547) (225,547)
The annexed notes 1-18 form an integral part of this condensed interim financial information.
________________________ _________________
Aziz L.Jamal Akhtar Wasim Dar
Chairman & Chief Executive Director
1 11 1 NATURE AND STATUS OF BUSINESS NATURE AND STATUS OF BUSINESS NATURE AND STATUS OF BUSINESS NATURE AND STATUS OF BUSINESS
2 22 2 BASIS OF PREPARATION BASIS OF PREPARATION BASIS OF PREPARATION BASIS OF PREPARATION
2.1 2.1 2.1 2.1
2.2 2.2 2.2 2.2
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION
FOR THE HALF YEAR ENDED DECEMBER 31, 2011 FOR THE HALF YEAR ENDED DECEMBER 31, 2011 FOR THE HALF YEAR ENDED DECEMBER 31, 2011 FOR THE HALF YEAR ENDED DECEMBER 31, 2011
The Company was incorporated in Pakistan on May 25, 1953 as a Public Limited Company under
the repealed Companies Act 1913( now Company Ordinance 1984) in the name of Husein Textile
Mills Limited, which was changed to Husein Industries Limited in 1964. Its shares are listed on
Karachi Stock Exchange in Pakistan. The major activities of the Company are textile
manufacturing, producing cotton and polyester yarn, cloth and garments, which are marketed
within, and outside Pakistan. The registered office of the Company is situated at HT-8,Landhi
Industrial Area, Karachi.
These interim financial information of the Company for the half year period ended December 31,
2011 are unaudited and have been prepared in accordance with the requirements of the
International Accounting Standard 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.
The figures of condensed interim profit and loss account for the quarters ended December 31, 2010
and 2011 have not been reviewed by the auditors of the Company as they have reviewed the
cumulative figures for the six months ended December 31, 2010 and 2011. These interim financial
2.3 2.3 2.3 2.3
2.4 2.4 2.4 2.4
2.5 2.5 2.5 2.5
3 33 3 SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES
3.1 3.1 3.1 3.1
3.2 3.2 3.2 3.2
cumulative figures for the six months ended December 31, 2010 and 2011. These interim financial
information do not include all the information and disclosures required in annual financial
statements, and should be read in conjunction with Company's annual financial statements for the
year ended June 30, 2011.
These condensed interim financial information have been prepared under the historical cost
convention, except as otherwise disclosed in these notes.
Amendments to certain existing standards and new interpretations on approved accounting
standards effective during the period either were not relevant to the Company's operations or did
not have any impact on the accounting policies of the Company.
These interim financial information are presented in Pakistani Rupees which is also the Company's
functional currency and figures presented in these interim financial information have been rounded
off to the nearest thousand of Rupees.
The comparative balance sheet presented has been extracted from annual financial statements for
the year ended June 30, 2011, whereas comparative condensed profit and loss account, condensed
comprehensive statement of income, condensed cash flow statement and condensed statement of
changes in equity have been extracted from the unaudited interim financial information for the six
months ended December 31, 2010.
The accounting policies, applied in the preparation of these interim financial information are the
same as those applied in the preparation of the annual audited financial statements of the Company
for the year ended June 30, 2011.
4 44 4 ACCOUNTING ESTIMATES, JUDGMENTS AND FINANCIAL RISK MANAGEMENT ACCOUNTING ESTIMATES, JUDGMENTS AND FINANCIAL RISK MANAGEMENT ACCOUNTING ESTIMATES, JUDGMENTS AND FINANCIAL RISK MANAGEMENT ACCOUNTING ESTIMATES, JUDGMENTS AND FINANCIAL RISK MANAGEMENT
4.1 4.1 4.1 4.1
4.2 4.2 4.2 4.2
4.3 4.3 4.3 4.3
December 31, December 31, December 31, December 31, June 30,
2011 2011 2011 2011 2011
Note Note Note Note (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
5 55 5 PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT
The Company's financial risk management objectives and policies are consistent with those
disclosed in the financial statements as at and for the year ended June 30, 2011.
- - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - -
The preparation of these interim financial information in conformity with approved accounting
standards as applicable in Pakistan requires management to make estimates, assumptions and use
judgments that affect the application of policies and reported amounts of assets and liabilities and
income and expenses. Estimates, assumptions and judgments are continually evaluated and are
based on historical experience and other factors, including reasonable expectations of future events.
Revision to accounting estimates are recognised prospectively commencing from the period of
revision.
In preparing these interim financial information, the significant judgments made by management in
applying the Companys accounting policies and the key sources of estimation and uncertainty were
the same as those that applied to the financial statements as at and for the year ended June 30,
2011.
Opening written down value 666,793 666,793 666,793 666,793 391,483
Additions during the period / year 5.1 2,417 2,417 2,417 2,417 150
Disposal during the period / year - - - - (15,393)
Revaluation of free and lease hold landduring the year - - - - 333,715
Depreciation charge for the period / year (20,210) (20,210) (20,210) (20,210) (43,162)
Closing written down value Closing written down value Closing written down value Closing written down value 649,000 649,000 649,000 649,000 666,793
5.1 5.1 5.1 5.1 Additions during the period / year Additions during the period / year Additions during the period / year Additions during the period / year
Building on lease hold land 147 147 147 147 -
Plant and machinery 2,270 2,270 2,270 2,270 150
2,417 2,417 2,417 2,417 150
6 66 6 DEFERRED TAX DEFERRED TAX DEFERRED TAX DEFERRED TAX
This comprises of the following: -
Taxable temporary difference Taxable temporary difference Taxable temporary difference Taxable temporary difference
Accelerated tax depreciation (33,548) (33,548) (33,548) (33,548) (16,720)
Deductible temporary differences Deductible temporary differences Deductible temporary differences Deductible temporary differences
Provision for grauity 2,672 2,672 2,672 2,672 1,327
Provision for doubtful debts 3,085 3,085 3,085 3,085 3,977
Provision for slow moving items - -- - 402
Minimum tax impact 9,354 9,354 9,354 9,354 -
Effect of tax losses 112,481 112,481 112,481 112,481 30,750
127,592 127,592 127,592 127,592 36,456
Deferrd tax asset not recognized 6.1 (74,308) (74,308) (74,308) (74,308) -
19,736 19,736 19,736 19,736 19,736
6.1 6.1 6.1 6.1
December 31, December 31, December 31, December 31, June 30,
2011 2011 2011 2011 2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Note Note Note Note
7 77 7 STOCK IN TRADE STOCK IN TRADE STOCK IN TRADE STOCK IN TRADE
Raw material 7,841 7,841 7,841 7,841 6,103
Work in process 45,014 45,014 45,014 45,014 291,962
Finished goods 415,646 415,646 415,646 415,646 229,225
468,501 468,501 468,501 468,501 527,290
8 88 8 TRADE DEBTS TRADE DEBTS TRADE DEBTS TRADE DEBTS
Exports Exports Exports Exports
Considered good 455,830 455,830 455,830 455,830 407,029
Considered doubtful 3,265 3,265 3,265 3,265 3,265
459,095 459,095 459,095 459,095 410,294
Local Local Local Local
Deferred tax asset as at December 31, 2011 to the extent of 74.308 million (June 2011: nil)
has not been recognized as the Company does not expect to generate the sufficient taxable
profits against which such benefits can be utilized.
- - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - -
Local Local Local Local
Considered good 220,932 220,932 220,932 220,932 307,418
Considered doubtful 11,362 11,362 11,362 11,362 11,362
232,294 232,294 232,294 232,294 318,780
691,389 691,389 691,389 691,389 729,024
Provision against debts considered doubtful (14,627) (14,627) (14,627) (14,627) (14,627)
676,762 676,762 676,762 676,762 714,397
9 99 9 LOANS AND ADVANCES - CONSIDERED GOOD LOANS AND ADVANCES - CONSIDERED GOOD LOANS AND ADVANCES - CONSIDERED GOOD LOANS AND ADVANCES - CONSIDERED GOOD
Loans Loans Loans Loans
to employees 1,688 1,688 1,688 1,688 1,719
to contractors 241 241 241 241 241
1,929 1,929 1,929 1,929 1,960
Advances Advances Advances Advances
against expenses 962 962 962 962 552
to employees 1,128 1,128 1,128 1,128 1,199
to contractors 653 653 653 653 -
to suppliers 11,846 11,846 11,846 11,846 5
14,589 14,589 14,589 14,589 1,756
16,518 16,518 16,518 16,518 3,716
10 10 10 10 RESERVES RESERVES RESERVES RESERVES
Capital reserves 33,858 33,858 33,858 33,858 33,858
Revenue reserves 292,142 292,142 292,142 292,142 292,142
Accumulated losses (657,806) (657,806) (657,806) (657,806) (569,754) Accumulated losses (657,806) (657,806) (657,806) (657,806) (569,754)
(365,664) (365,664) (365,664) (365,664) (277,612)
(331,806) (331,806) (331,806) (331,806) (243,754)
10.1 10.1 10.1 10.1
10.2 10.2 10.2 10.2 This represents appropriation of profit in preceding years to meet future contingencies.
December 31, December 31, December 31, December 31, June 30,
2011 2011 2011 2011 2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Note Note Note Note - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - -
11 11 11 11 LONG TERM FINANCE LONG TERM FINANCE LONG TERM FINANCE LONG TERM FINANCE
- Secured - Secured - Secured - Secured
From a banking company From a banking company From a banking company From a banking company
Export Oriented Projects - 24,677
Term finance 11.1 1,468,875 1,468,875 1,468,875 1,468,875 1,470,313
1,468,875 1,468,875 1,468,875 1,468,875 1,494,990
Current and overdue portion shown under current liabilities (21,716) (21,716) (21,716) (21,716) (54,093)
1,447,159 1,447,159 1,447,159 1,447,159 1,440,897
11.1 11.1 11.1 11.1
This represents share premium received in the preceding years and is held for utilization of purposes
as stated in Section 83 of the Companies Ordinance, 1984.
As per restructuring agreement with the bank on May 11, 2011, this amount of Term Finance is
repayable in monthly instalments of different amounts over the period of ten years ranging from Rs.
200,000 to Rs. 5,081,750 including lump sum payments of Rs. 953 million on sale of properties of the
Company in years 2013 and 2014 . Further, no markup shall be charged till June 2012 and
thereafter, markup would be charged at rate applicable on 3 months Treasury Bills prevailing from
time to time. The other terms of Term Finance are same as disclosed in the financial statements of
December 31, December 31, December 31, December 31, June 30,
2011 2011 2011 2011 2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Note Note Note Note - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - -
12 12 12 12 SHORT TERM BORROWING SHORT TERM BORROWING SHORT TERM BORROWING SHORT TERM BORROWING
- Secured - Secured - Secured - Secured
From Banking Company From Banking Company From Banking Company From Banking Company
Running finance under markup arrangements Running finance under markup arrangements Running finance under markup arrangements Running finance under markup arrangements
- restructured 12.1 49,991 49,991 49,991 49,991 35,756
- overdue 12.2 34,374 34,374 34,374 34,374 9,893
84,365 84,365 84,365 84,365 45,649
Packing credit facility 12.3 48,800 48,800 48,800 48,800 48,800
133,165 133,165 133,165 133,165 94,449
12.1 12.1 12.1 12.1
12.2 12.2 12.2 12.2
time to time. The other terms of Term Finance are same as disclosed in the financial statements of
the Company for the year ended June 30, 2011.
The facility has a sanctioned limit of Rs. 50 million and carries markup at the rate three months
KIBOR. The facility is secured against hypothecation of raw material, semi finished, finished goods,
receivables and machinery, equitable mortgage on properties of the Company and personal
guarantees of Chief Executive and directors of the Company.
Company's all matured and overdue financing has been restructured on May 11, 2011 and at the
time of restructure, this overdue balance was required to be paid by the Company which could not be
paid during the period.
12.3 12.3 12.3 12.3
December 31, December 31, December 31, December 31, June 30,
2011 2011 2011 2011 2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
13 13 13 13 TRADE AND OTHER PAYABLES TRADE AND OTHER PAYABLES TRADE AND OTHER PAYABLES TRADE AND OTHER PAYABLES
Creditors 146,813 146,813 146,813 146,813 168,920
Accrued and other Liabilities 28,971 28,971 28,971 28,971 44,735
175,784 175,784 175,784 175,784 213,655
14 14 14 14 CONTINGENCIES AND COMMITMENTS CONTINGENCIES AND COMMITMENTS CONTINGENCIES AND COMMITMENTS CONTINGENCIES AND COMMITMENTS
There were no changes in the contingencies and commitments since the last audited financial statements.
December 31, December 31, December 31, December 31, December 31,
2011 2011 2011 2011 2010
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
15 15 15 15 SALES SALES SALES SALES
The company has obtained packing credit facility from banking company with the sanctioned limit of
Rs.80 million and carries markup at the rate three months KIBOR. The facility is secured against LCs
held under the lien of the lending banking company, 35% margin of Lc value for the procurement of
grey fabric and 35% margin of contract value for packing credit against contracts.
- - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - -
- - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - - - - - - (Rupees in '000) - - - -
15 15 15 15 SALES SALES SALES SALES
Local Sales 44,549 44,549 44,549 44,549 42,378
Direct Export 91,560 91,560 91,560 91,560 166,591
Indirect Export 94,329 94,329 94,329 94,329 124,198
185,889 185,889 185,889 185,889 290,789
230,438 230,438 230,438 230,438 333,167
16 TRANSACTIONS WITH RELATED PARTIES
Directors
Fees - - - -
Managerial
remuneration 134 810 134 - 750
Housing 48 685 48 - 632
Utilities 499 932 324 - 830
681 5 2,427 506 5 2,212
No. of Person(s) 1 6 5 1 6 5
In addition, the Chief Executive, Directors, and Executives are provided with free use of the company 's maintained cars.
Executives
- - - - - - - - - - - - - - - - - - Rupees in (000) - - - - - - - - - - - - - - - - - -
5 5
Related parties comprise of directors and other key management personnel. Remuneration and other benefits paid to Chief
Executive, Directors and Executives are as follows:
December 31, 2011 December 31, 2010
Chief
Executive
Executives
Chief
Execu
Directors
17 GENERAL
Figures have been rounded off to the nearest thousand of rupees.
18 DATE OF AUTHORIZATION FOR ISSUE
________________________ _________________
Aziz L.Jamal Akhtar Wasim Dar
Chairman & Chief Executive Director
These interim financial information were authorized for issue on 07-May-2013 by the Board of Directors of the
Company.