Amtex : Transmission of Quarterly Report Period ended September 30, 2022

AMTEX LIMITED

First Quarterly Report

September 30, 2022

A M T E X

CONTENTS

COMPANY INFORMATION

DIRECTOR'S REPORT

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION CONDENSED INTERIM STATEMENT OF PROFIT & LOSS ACCOUNT CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME CONDENSED INTERIM CASH FLOW STATEMENT

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY NOTES TO THE CONDNSED INTERIM FINANCIAL STATEMENTS

Company Information

Board of Directors
Mr. Muhammad Ahsan	Chairman
Mr. Khurram Iftikhar	Chief Executive Officer
Mr. Shahzad Iftikhar
Mr. Nadeem Iftikhar
Mr. Suhail Maqsood Ahmed
Mr. Gul Muhammad Naz
Mrs. Jawaria Ahsan
Chief Financial Officer
Mr. Waheed Aslam
Company Secretary
Mr. Muhammad Raza Farooq
Audit Committee
Mr. Suhail Maqsood Ahmed	Chairman
Mr. Muhammad Ahsan
Mrs. Jawaria Ahsan
Human Resource & Remuneration Committee
Mr. Gul Muhammad Naz	Chairman
Mr. Suhail Maqsood Ahmed
Shahzad Iftikhar
Auditors
Zahid Jamil & Co.
Chartered Accountants
Legal Advisor
Mr. Aamir Nawaz Bhatti
Advocate High Court
Share Registrar Office
Vision Consulting Limited
3-C, LDA Flats, Lawrance Road, Lahore
Registered Office
P-225 Tikka Gali # 2 Montgomery Bazar, Faisalabad
Projects Locations
Punj Pullian Daewoo Road Faisalabad	Processing & Stitching Unit
Website
www.amtextile.com

DIRECTORS' REPORT

The Board of Directors of Amtex Limited presents herewith the Directors' Report together with the Company's un-audited financial information for the period ended September 30, 2022.

Financial Results

The financial results for the period under review with comparative figures of previous period are presented hereunder.

	Quarter ended Septmeber 30,
	2022		2021
	Rupees		Rupees
Sales	355,356,601	284,859,253
Cost of sales	281,049,180	262,241,676
Gross Profit	74,307,421	22,617,577
Profit / (Loss) for the period	289,765,840	(24,752,270)
Earnings per share - Basic and diluted	1.12	(0.10)

During 1st quarter under review company earned gross profit of Rs.74.30 million as compared to gross profit of Rs. 22.61 million in the corresponding period of last year and net profit of Rs. 289.76 million as compared to net loss of Rs. 24.75 million in the corresponding period of last year. Sales volume has also increased as compared to previous corresponding period and the company's total sales are Rs.355.35 million in three months against sales of Rs. 284.85 million in the corresponding period of last year.

As mentioned in Note 1.3 and Note 3.1.3 of these condensed interim financial statements that The Court Auctioneers in Execution Application filed by the Bank of Punjab auctioned the Company's Spinning Division's Land and Building at Rs.490 million. During the pendency of the execution petition, the Decree Holder bank, the Company as well as other first charge holder banks/financial institutions reached a negotiated deal and agreed to withdraw objection petitions on auction of land and building and also agreed for sale of Spinning Division's machinery to the Auction Purchaser (M/S Beacon Impex Private Limited) for Rs.315 million. Resultantly, the honorable court confirmed the auction and ordered for distribution of sale proceeds of Rs.490 million amongst first charge holder banks/financial institutions in proportion to the value of their charge. The entire sale proceeds of Land, Building and Machinery of Rs.805 million have been adjusted against the loans of the Company by the relevant banks / financial institutions. Gain on auction of land and building and sale of plant and machinery of spinning division amounting to rupees 264.44 million includes in other operating income.

Certain banks / financial institutions have filed a suit against the Company for recovery of its financing and mark up and the Company has not provided any markup / cost of funds on the said outstanding amounts. Based on the legal opinion, the company feels that, after institution of the suit, a financial institution is only entitled to cost of funds if so awarded by the court in case the suit is decided against the company. The levy of cost of funds and the quantum thereof shall be contingent on passing of the decree and rate prescribed by the State Bank of Pakistan during the period of pendency of the claim and discharge of decree, if passed by the Court.

Future outlook

Mixed trend observed at the beginning of FY2022. Challenges of energy shortage, political instability, continually increasing prices of fuel and regularly rising inflation are still major obstacles to sustainable growth. Trade has been adversely affected because of the unreliability and inadequacy of the country's electrical and gas power supply system. Government needs to take immediate steps to resolve the persistent issues of high financial cost, gas and electricity supply otherwise they will continue to hurt the textile industry in Pakistan. Management is well aware of the situation and tried best to maintain the increasing trend of exports volume and to settle litigations with banks in quite favorable manner. Company focuses on key measures as described in Textile and Apparel Policy like capacity building, reduce cost of doing business, DLTL / DDT schemes continuity for exports of value added products. Company plans to take benefits from the aforementioned measures and has set an ambitious export target which will not only support the management to achieve higher profitability but also help to settle the litigations with banks.