ASIM TEXTILE MILLS LIMITED NOTES TO THE FINANCIAL STATEMENTS (Un-audited)
FOR THE QUARTER AND NINE MONTHS PERIOD ENDED MARCH 31, 2007 1. COMPANY AND ITS OPERATIONS The Company is limited by shares and incorporated in Pakistan under the Companies Ordinance, 1984. Its shares are listed at Karachi, Islamabad and Lahore stock exchanges. The principal business of the Company is manufacturing and sale of yarn. The Mill is located at Tehsil Jaranwala, District Faisalabad in the Province of Punjab and registered office of the Company is located at 16-C, Peoples Colony, Faisalabad. 2. BASIS OF PRESENTATION AND ACCOUNTING POLICIES 2.1 These financial statements have been prepared in accordance with the approved accounting standards as applicable in Pakistan and the requirements of the Companies Ordinance, 1984 (the Ordinance). Approved accounting standards comprise of such International Accounting Standards (IASs) as notified under the provisions of the Ordinance. Wherever the requirements of the Ordinance or directives issued by the Securities and Exchange Commission of Pakistan differ with the requirements of these standards, the requirements of the Ordinance or the requirements of the said directives take precedence. The disclosures made in these financial statements have, however, been limited based on the requirements of the International accounting Standard 34, "Interim Financial Reporting". 2.2 These financial statements have been prepared using the same accounting policies as are applied in the preparation of the annual financial statements of the company for the year ended June 30, 2006. Un-audited March 31, 2007 3. OPERATING FIXED ASSETS Opening balance Add: Additions during the period Less: Depreciation for the period Closing balance 4. CONTINGENCIES AND COMMITMENTS The Company has filed a suit in the Honorable Lahore High Court, Lahore against Faysal Bank Limited for the compensation of loss suffered on acquisition of unremunerative agricultural land and disposal of the same, for not providing timely cash finance facilities despite written commitments and for charging illegal profits against the principles of Islamic banking and in contravention of the objective clause of its Articles and Memorandum of Association. The amount claimed for the first two counts is Rs. 141.831 million (including claims of Central Excise Duty) and for the last count has been left for the Court to determine. As per Company's Lawyer's opinion the case is based on strong legal grounds and is likely to be decided in Company's favor, if so decided the amount of morahaba finances would decrease by the amount decided by the Court. Faysal Bank Limited has also filed a counter suit against the Company. Audited June 30, 2006
------ (Rupees '000') -----436,848 3,330 440,178 (16,543) 423,635 450,851 8,614 459,465 (22,617) 436,848
Quarter Ended March 31, 2007 5. COST OF SALES Raw material consumed- Cotton Raw material consumed- Polyester Salaries, wages and benefits Stores and spares consumed Packing material consumed Fuel and power Repairs and maintenance Insurance Depreciation Goods handling charges General expenses Inventory effect of work in process Opening Closing Cost of goods manufactured Inventory effect of finished goods Opening Closing Less: Duty draw back Cost of goods sold 5.1 RAW MATERIAL CONSUMED- COTTON Opening stock Purchases including direct expenses Closing stock 39,036 45,131 84,167 (39,542) 44,625 12,981 59,679 72,660 (29,061) 43,599 19,978 (12,262) 7,716 136,560 28,526 (10,533) 17,993 142,049 4,315 (4,168) 147 128,844 4,140 (4,387) (247) 124,056 5.1 5.2 44,625 49,502 10,709 2,695 1,998 13,081 136 360 5,523 68 128,697 March 31, 2006 43,599 46,105 9,876 2,107 1,500 14,398 16 583 5,933 106 80 124,303
Nine Months Ended March 31, 2007 133,996 157,219 29,105 6,441 5,726 44,235 476 1,080 16,326 934 445 395,983 4,128 (4,168) (40) 395,943 7,562 (12,262) (4,700) 391,243 March 31, 2006 129,822 147,519 25,021 6,726 4,600 41,882 379 1,398 17,007 106 392 374,852 3,993 (4,387) (394) 374,458 9,922 (10,533) (611) (91) 373,756
---------------------- (Rupees '000') ---------------------
46,628 126,910 173,538 (39,542) 133,996
16,466 142,417 158,883 (29,061) 129,822
Quarter Ended March 31, 2007 5.2 RAW MATERIAL CONSUMED- POLYESTER Opening stock Purchases including direct expenses Closing stock 2,291 49,022 51,313 (1,811) 49,502 6. TRANSACTIONS WITH RELATED PARTIES 1,040 49,216 50,256 (4,151) 46,105 March 31, 2006
Nine Months Ended March 31, 2007 March 31, 2006
---------------------- (Rupees '000') --------------------2,628 156,402 159,030 (1,811) 157,219 790 150,880 151,670 (4,151) 147,519
During the period Company has purchased electricity from related party (Zeeshan Energy Limited) of Rs.0.303 million (March 31, 2006: Rs.30.334 million). 7. DATE OF AUTHORIZATION These financial statements were authorized for issue on April 28, 2007 by the Board of Directors of the Company.
8. GENERAL Previous period's figures have been reclasified, wherever necessary, for the purpose of comparison. Figures have been rounded off to the nearest of thousand rupees unless otherwise stated.
(CHIEF EXECUTIVE)
(DIRECTOR)