Hala Enterprises : HAEL | Hala Enterprises Limited - Transmission of Quarterly Report for the Period Ended March 31, 2023

Hala

Enterprises

Limited

3rd Quarterly

REPORT

FOR THE PERIOD ENDED MARCH 31, 2023

3rd Quarterly Report

4-5

6

10

3rd Quarterly Report

COMPANY INFORMATION

Mr. Hassan Ahmad

Malik Haroon Shahid Safder & Co.

Chartered Accountants

3rd Quarterly Report

DIRECTOR'S REVIEW REPORT

The Board of Directors of Hala Enterprises Limited hereby present the interim financial report of the company for the 3rd quarter ended 31st March, 2023; together with the interim financial information.

The Pakistani Textile Industry's performance has been declining due to multiple reasons such as a sharp rise in local cotton prices, a slump in global demand for textile products due to a recession, and other reasons such as the regionally uncompetitive rates which our manufacturers were offering due to their increased costs of production. The increase in fuel/energy rates triggered by the Ukraine-Russian war have also affected the performance of the textile sector. During the last three quarters, we also witnessed a very high increase in freight costs world over; which also had an effect on the consumption patterns of non-essential goods. At the same time, the global hospitality industry which was coming out of a Pandemic struck market was also struggling with a cashflow crunch, due to which the demand for hospitality linens was lower than usual.

Despite the prevailing economic and financial challenges, the performance of the Company remained robust during the last nine months and we witnessed a consistent trend of growth and expansion. In comparison to the corresponding period last year March 31, 2022, the revenue increased from Rs. 385 M to Rs. 480 M; indicating a growth trend of 25% per annum in revenue. Gross profit increased from Rs. 67 M to Rs. 99 M, while the Operating profit increased from Rs. 17M to Rs. 28M. The Net margins saw an increase of about 90% for the period, which is highly encouraging.

Unfortunately the company was unable to fully optimize it's growth and earning potentials due to restricted cash flows. During this period we were hopeful to import additional machinery which would have greatly helped in increasing our productivity; however, due to the uncertain political and economic domestic situation this was not possible. The high interest rates are also discouraging to any expansionist policy at the moment.

We would like to take this opportunity to thank our customers, suppliers and bankers for their continued cooperation towards the progress of the company. We hope that this support continues in the future as well.

We would also like to thank our dedicated and talented team of executives, the Board, our staff and workers for the hard work put in towards the company's improvement in performance.

For & on behalf of the Board

DIRECTOR

LAHORE: 29-04-2023

3rd Quarterly Report

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT MARCH 31, 2023 (UN-AUDITED)

CAPITAL AND LIABILITIES

Share capital and reserves

Authorized Share Capital

16,000,000 ordinary shares of Rs. 10 each

Issued, subscribed and paid up capital

Capital reserves

Surplus on revaluation of Property, Plant & equipment Fair value reserve of financial assets at FVOC

Other capital reserves

Revenue reserves

Other revenue reserves

Accumulated loss

Total Share Capotal And Reserve

Non Current Liabilities

Deferred liability

Long term borrowing

Total Non Current Liabilities

Current Liabilities

Trade and other payables Accrued mark up

Short term borrowings

Current portion of deferred Governement grant Current portion of long term borrowing

Due to related parties Provision for taxation

Total Current Liabilities

Liabilities directly associated with non-current assets classfied as held for sale

Mar 2023	Jun 2022
Un-Audited	Audited
Rupees	Rupees

160,000,000 160,000,000

129,963,040 129,963,040

225,359,117 231,780,100

5,738,881 8,067,204

2,274,287 2,274,287

233,372,285 242,121,591

7,000,000 7,000,000

(40,226,589) (61,064,404)

(33,226,589) (54,064,404)

330,108,736 318,020,227

27,741,488 29,424,667

3,726,000 6,918,795

31,467,488 36,343,462

48,622,542 55,450,486

1,033,549 929,889

112,858,000 125,850,000

• 28,247
  2,628,492 3,731,810

4,745,161	3,864,257
-		-
169,887,744		189,854,689
3,775,000	3,775,000

Contingencies and Commitments

TOTAL EQUITY AND LIABILITIES	535,238,968	547,993,378

The annexed notes form an integral part of this condensed interim financial information.

LAHORE: April 29, 2023

CHIEF EXECUTIVE	CHIEF FINANCIAL	DIRECTOR
OFFICER	OFFICER