HALF YEAR REPORT For the Period Ended December 31, 2020 ZAHIDJEE TEXTILE MILLS LIMITED Zahidjee Textile Mills Limited Half Yearly Report December 31, 2020 Contents Company Information 1 Directors' Report to the Members - English 2 Directors' Report to the Members - Urdu 3 Independent Auditors' Review Report 4 Unconsolidated Financial Statements Statement of financial position 6 Statement of profit or loss 7 Statement of Comprehensive Income 8 Statement of Changes in Equity 9 Statement of cash flows 10 Notes to the Financial Statements 12 Consolidated Financial Statements Statement of financial position 20 Statement of profit or loss 21 Statement of Comprehensive Income 22 Statement of Changes in Equity 23 Statement of cash flows 24 Notes to the Financial Statements 26 1 - Half Year Report I 2020 Company Information Board of Directors Bankers of the Company Mr. Muhammad Sharif Allied Bank Limited Chairman Askari Bank Limited Mr. Muhammad Zahid Bank Al-Falah Limited Chief Executive BankIslami Pakistan Limited Directors Faysal Bank Limited Mr. Ahmad Zahid JS Bank Limited Miss Mehreen Zahid Meezan Bank Limited Mr. Sajjad Hussain Shah National Bank of Pakistan Mr. Faisal Masood Afzal Samba Bank Limited Brig (R) Wali Muhammad The Bank of Punjab United Bank Limited Audit Committee HR & Remuneration Committee Mr. Faisal Masood Afzal Brig (R) Wali Muhammad (Chairman) (Chairman) Mr. Sajjad Hussain Shah Miss Mehreen Zahid Miss Mehreen Zahid Mr. Muhammad Sharif Mr. Muhammad Zahid Company Secretary Auditors Mr. Nasir Hameed RSM Avais Hyder Liaquat Nauman Chartered Accountants Chief Financial Officer Export Office Mr. Anwar-ul-Haq 20, Bilal Road, Civil Lines Share Registrar Faisalabad Corptec Associates (Private) Limited Tel: 041-2409223-4 503-E, Johar Town, Lahore Tel: 042-35170335-6 Fax 042-35170338 Mills E-mail: [email protected] - 28-KM, Sheikhupura Road, Faisalabad Registered Office - 32-KM, Tandlian wala Road, Faisalabad 2-H, Gulberg-II, Jail Road, Lahore - M-3 Industrial City, Tel: 042-35777291-5 Sahianwala, Faisalabad 2 - Half Year Report I 2020 DIRECTORS’ REPORT TO THE MEMBERS The Board of Directors take immense pleasure in presenting their report, along-with the operational and financial results of the Company, for the half year ended December 31, 2020. Financial Results The Summery of key Financial numbers is presented below: December 31 2020 2019 (Rupees in '000') Sales 7,668,734 7,385,452 Gross profit 913,581 993,821 Profit before taxation 678,203 672,730 Provision for taxation 91,710 44,826 Profit after taxation 586,493 627,905 Earnings per share – Basic and diluted 3.06 3.28 The Company has successfully managed to increase its sales volume, despite challenging economic factors and Covid-19 pandemic. The costs of production have increased in the current period on account of increase in cost of raw materials and general inflation factor in other costs. All these factors led to a decrease in Gross Profit to Rs. 913.581 million from Rs. 993.821 million of preceding year. However, the management left no stone unturned to mitigate the challenges and achieved sales of Rs. 7.66 billion as compared to Rs. 7.38 billion during corresponding period of last year, thus registered an increase of 3.8% in gross sales. Whereas, the company earned a net profit after tax of Rs. 586.493 million as compared to Rs. 627.905 million during last year’s corresponding period. The net profit translated into Earnings per Share (EPS) of Rs. 3.06 as against Rs. 3.28 of the corresponding period. Future Prospects The Overall, economic and business environment continued to be very challenging for all businesses in Pakistan. However, Government's initiatives and support to revive the Economy owing to the COVID-19 pandemic is showing progressive results. Despite these factors, the Company performed with great spirit and maintained its position in the domestic and foreign markets. Consolidated Financial Statements: Zahidjee Towers (Pvt) Limited is the subsidiary company of Zahidjee Textile Mills Ltd. Therefore, the Company has annexed consolidated interim financial information in addition to its unconsolidated interim financial information, in accordance with the requirements of International Financial Reporting Standards. Acknowledgments The directors appreciate sincere contribution and the hard work by staff and workers of the company.We greatful for the trust and confidence exhibited in the company by shareholders, bankers and other stake holders. For and on behalf of the Board Dated: February 25, 2021 MUHAMMAD SHARIF MUHAMMAD ZAHID Lahore Director Chief Executive Officer 3 - Half Year Report I 2020 ٔ ٹ ڈ ا � � ی ٹ� � رز ر�پورٹ ٔ ٹ خ ت خ خ ٔ � خ خ ٔ ت خ خ ٹ خ خ خ ت ٔ خ ٔ خ ث �بورڈ آف ڈا��بی�� رز 31 د� ب��ر 2020 �و ��م ہ�و�ے وا�ے ��ف سال �ے ��ے ، �پ��ی �ے �م�� اور ما�� �تتا�ج �� ق ا � و � � آ ڈ ی � � ر ز �� ��ر ثبا�� ��دہ بجا�ع ر�پورٹ پ��یش ���ے ہ�و�ے ا� ت�ہا�� �و�ی ��وس �� ہر�ے ہ�ی�ں ن ٔ ما�� �تتا�ج: ہ ت خ خ ا�م ما� یتا�� � ب��روں کا ج��ہ ذیبل �ی�ں پ��یش � یتا � یتا ہ�ے 31 د� ب��ر 2020 2019 ( پرو�ے ہ�زاروں �ی�ں) خ خ � رو� ت 7,385,452 7,668,734 خ ب���و�ی � ختا�ع 993,821 913,581 خ ت ٹ �ختا�ع � بتل از � یت�س 672,730 678,203 ٹ ت ث � ی ���ی�ن 44,826 91,710 خ ٹ �ختا�ع �بعد از � یت �س 627,905 586,493 خ ث �� � ٔ�ی�ر آمد ن 3.28 3.06 پ� یت خ خ ث ٔ � خ خ خ خ خ خ خ خ ت خ خ ٔ �ی� ب��تگ �عا�ی �وامل اور �وڈ - 19 بوبا�� ا�راض �ے ب باو�ود ، �پ��ی ا�پ�ی �رو�ت �ے �ب�م �ی�ں اضا�ہ ���ے �ی�ں کا� یتاب ہر�ی۔ ب�و�ودہ مدت � ی�ں جام مال �� � � ی � ت �ی�ں اضا�ہ اور �� خ�گا�� �ے با�ث خ خ خ پ پ ت ہ خ ت خ خ پ� یت خ خ ت پ� یتداواری ﻻ�ت �ی�ں اضا�ہ ہ�وا ہ�ے۔ ان سارے �وامل �� بو�ہ �ے ب���و�ی �ختا�ع 913.581 م � ی� ن رو پ�ے ہرہ ا ب�و �ے ��ھ�ے سال 993.821 م�ی�ن پرو�ے � ھ ا۔ تبا�م ، ا��ظا��یہ �ے � ب��وں �ے جا ��ے ٔ خ ث خ خ ث خ خ خ � خ خ �ے ��ے ا�پ�ی �پوری �و�ش �� اور 7.66 ب�ی�ن پرو�ے�� �رو�ت جاضل ��۔ ب�و �ہ �ذ��تہ سال �� ا�ی مدت �ے دوران 7.38 ب� ی�ن پرو� ے ہ�ے اور 3.8 ��یصد کا اضا�ہ ہ�وا ہ� ے ب �ب �ہ �پ��ی �ے ٹ خ خ ث � یت�س �ے �بعد جا�ص �ختا� ع 627.905 م�ی�ن پرو�ے �ما یبا ب�و�ہ �ذ��تہ سال �� ا�ی مدت �ے دوران 586.493 م�ی�ن پرو�ے ہ�ے ۔ ت خ ث خ ث ب�س �� بو�ہ �ے �ی �� � ٔ�ر آمد�� 3.06 پرو�ے ہ�و �� ہ�ے۔ ب�و�ہ �ذ��تہ سال �� ا�ی مدت �ے دوران 28. 3 پرو�ے ��ی ۔ ت ت ن ن ن ���� بتل کا � ت�طء ��ر: ٔ ت ت ث ث� ث ب خ ٔ ت ت ت خ ب���و�ی �ور �پ� پبا��تان �ی�ں �مام بکاروباروں �ے �ی�ے بکاروباری اور �عا �ی ما�ول �� ل ہرہا۔ بوبا�� ا�راض �� بو�ہ �ے ���ی�ت �و بدوبارہ � ح ا ل ���ے �ے ��ے ج�و�ت �ے اقدامات اور مدد �ے ���� پ��تد خ ٔ � خ خ ت خ خ خ ث ت �تتا�ج �ب�آمد ہ�و ہر�ے ہ�ی�ں۔ ان �وامل �ے ب باو�ود ، �پ��ی �ے �ب�ے بج بذ�ے �ے سا�ھ کار��د�� کا �ظ ہا�رہ � یتا اور مل�� اور �ی�ر مل�� �ختڈ�یوں �ی�ں ا�پ�ی �پوزی��ن �ب��رار ر��ی۔ ٹ ��ی� ٹ ن ٹ ب���و�ی ما�� ����س: ت خ ب ٔ ب ٹ ٔ � خ خ ت ٹ خ ت ت خ خ ٹ خ خ ث ت زا ہہد�ی ٹباورز (�پ�ا�ی�وٹ) ��ی�ٹتڈ ہزاہد�ی � یت��ٹتابل م�� ��ی�ٹتڈ �� ذبی�� ادارہ ہ�ے �ہذا ، اس �پ��ی �ے ب�ی�ن اﻻ�وا�ی ما� یتا�� ر�پور�تگ �ے �� یتارات �ے �قا� وں �ے �ظا�بق ،ال گ ا �� ی� رم � ت ا�سل �ع�ومات �ے سا �ھ خ ت خ ٹ خ خ ث ب خ سا�ھ ب���و�ی ا��ی�رم �تا�سل �ع�ومات ��ی ��سلک �� ہ�ی�ں۔ ن ت ا�ہار � شش��: ٔ ٹ خ ث � خ خ خ ت ہ خ خ خ ت � خ ت ٔ ث ب ت ڈا��ی ب��رز �ح�صاخ�ہ �را�ت اور �پ��ی �ے �م�ے اور کار��وں �� ���ت �و �را ہ ��ے ہ�ی�ں۔ �م ا پ��ے ��ص یبا� ت�گان ، ب��یت�وں ، ما� یتا�� اداروں کا ہ�ماری �پ� �ی �پ� ا��ماد �ے ��ے ان کا س ی���ہ ��ی ادا ���ے ہ�ی�ں۔ ٔ ٹ ن �بورڈ آف ڈا��ی ٹ��رز �� بجا�ب �ے ث ��مد ہزاہد ��مد �ری�ف ٹ خ ٔ ٹ ( پ��یف ا یب��یب��و آ��ی�ر) ر(ڈا��بی�� ) خ خ�ور�ہ: 25 �روری ، 2021 � تقام: ﻻ ہ� ور 4 - Half Year Report I 2020 5 - Half Year Report I 2020 Unconsolidated Condensed Interim Financial Statements For The Half Year Ended December 31, 2020 6 - Half Year Report I 2020 ZAHIDJEE TEXTILE MILLS LIMITED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED) AS AT DECEMBER 31, 2020 Un-audited Audited December 31, June 30, 2020 2020 Note Rupees Rupees NON - CURRENT ASSETS Property, plant and equipment 3 6,392,749,020 6,613,186,162 Intangible assets - 330,203 Investment in subsidiary 4 359,200,000 359,200,000 Long term security deposits 4,476,224 4,476,224 6,756,425,244 6,977,192,589 CURRENT ASSETS Stores, spares and loose tools 219,640,767 155,356,386 Stock in trade 3,599,293,798 2,926,873,525 Trade debts 1,477,964,270 1,729,035,469 Loans, advances and deposits 239,682,383 249,325,964 Prepayments 10,023,439 187,967 Other receivables 103,680,861 84,617,550 Short term investment 5 106,997,877 56,790,569 Tax refunds due from Government 127,356,977 177,558,960 Cash and bank balances 183,898,216 63,840,188 6,068,538,588 5,443,586,578 CURRENT LIABILITIES Trade and other payables 1,173,498,408 887,327,709 Interest / markup payable 46,953,144 59,198,537 Short term borrowings 2,584,361,814 2,980,917,815 Unclaimed dividend 1,204,621 1,204,621 Current portion of long term finance 222,269,514 210,628,546 Provision for taxation - income tax 114,180,740 195,763,444 4,142,468,241 4,335,040,672 8,682,495,591 8,085,738,495 NON - CURRENT LIABILITIES Long term finance 1,158,891,767 1,137,357,078 Deferred liability Deferred taxation 6 459,851,280 481,265,653 1,618,743,047 1,618,622,731 CONTINGENCIES AND COMMITMENTS 7 - - Net worth 7,063,752,544 6,467,115,764 Represented by SHARE CAPITAL AND RESERVES Share capital 8 1,914,210,990 1,914,210,990 Capital reserves Merger reserve 366,258,513 366,258,513 Surplus on revaluation of property, plant and equipment 1,130,731,436 1,157,269,154 Revenue reserves 9 3,652,551,605 3,029,377,107 7,063,752,544 6,467,115,764 7,063,752,544 6,467,115,764 The annexed notes 1 to 17 form an integral part of these condensed interim financial statements.