Hala Enterprises : Transmission of Quarterly Report for the Period Ended

Hala

Enterprises

Limited

HALF YEARLY

REPORT

FOR THE PERIOD ENDED DECEMBER 31, 2022

	Half Yearly Report
Independent Auditor's Review Report	4
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Half Yearly Report

COMPANY INFORMATION

Mr. Hassan Ahmad

Malik Haroon Shahid Safder & Co.

Chartered Accountants

Half Yearly Report

DIRECTOR'S REVIEW REPORT

The Board of Directors of Hala Enterprises Limited hereby present the interim financial reports of the company for the half year ended 31st December, 2022, together with the interim financial information.

The Textile industry's performance declined during the first half of financial year 2022-23 due to the slump in global demand for textile products. The reasons for the low demand were high inventory buildups due to Covid - which needed to be offloaded by the Importers, and a general recession in the world markets due to the increased costs of living.

Costs of production went up quite abruptly due to higher energy tariffs in the country, and due to a general rate increase of all raw materials due to shortages. The textile industry in Pakistan is also facing rapid currency fluctuations and delayed Government Refunds, which has resulted in capacity under- utilization and the closure of several small to medium-sized units; while creating a liquidity crunch for almost all sectors of industry.

In spite of the above factors, the financial performance of the Company remained satisfactory during the current half year in comparison to the corresponding half year December 2021. Revenue increased from Rs. 250.59 Million to Rs. 322.97 Million i.e. 28.88 % Operating profit increased from 11.92 Million to

21.31 Million and Net profit increased from Rs. 6.15 million to Rs. 11.145 million. The bottom line was that the net margins almost doubled from the previous period! This was extremely encouraging amidst the doom and gloom of the general situation of the textile industry.

As mentioned in last year's Director Report, we had expected to see better margins in the upcoming periods and a growth of exports in the range of 30% - and these targets were not only met, but surpassed. Clearly, hard work and effort has shown results. We are hopeful that the second half of the financial year will also yield encouraging results - and that our capable team will keep up the good work.

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 they put in towards the company's continuous improvement and performance, despite all the odds.

For & on behalf of the Board

LAHORE: February 28, 2022

Half Yearly Report

INDEPENDENT AUDITOR'S REVIEW REPORT

TO THE MEMBERS OF HALA ENTERPRISES LIMITED REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS

Introduction

We have reviewed the accompanying condensed interim statement of financial position of Hala Enterprises Limited as at December 31, 2022 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, and the condensed interim statement of cash flows, and notes to the financial statements for the six-month period then ended (here-in-after referred to as the "interim financial statements"). Management is responsible for the preparation and fair presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these financial statements based on our review.

Scope of Review

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 review of interim financial statements 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.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other matter

The figures of the condensed interim statement of profit or loss, condensed interim statement of comprehensive income for the quarters ended December 31, 2022 and 2021 have not been reviewed as we are required to review only cumulative figures for the six- month period ended on that date.

The engagement partner on the review resulting in this independent auditor's review report is Malik Haroon Ahmad (FCA).

Place: Lahore

Chartered Accountants

Date: February 28, 2023

UNID: RR202210206xqQRvr81

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