Sana Industries : Transmission of Half Yearly Report for the period ended 31-12-2022

CONDENSED INTERIM FINANCIAL

ACCOUNTS

(UN-AUDITED)

For the Period Ended December 31, 2022

33-D-2, Block 6, P.E.C.H.S., Shahrah-e-Faisal,Karachi-75400

Phone: [phone] Email: [e-mail]

C O N T E N T S

Company Information	2
Directors' Report alongwith annexures	3
Interim condensed unconsolidated Balance Sheet	10
Interim condensed unconsolidated Profit and Loss account	11
Interim condensed unconsolidated Statement of Comprehensive Income	12
Interim condensed unconsolidated Statement of Changes in Equity	13
Interim condensed unconsolidated Cash flow statement	14
Unconsolidated notes to the Accounts	15
Interim condensed consolidated Balance Sheet	29
Interim condensed consolidated Profit and Loss account	30
Interim condensed consolidated Statement of Comprehensive Income	31
Interim condensed consolidated Statement of Changes in Equity	32
Interim condensed consolidated Cash flow statement	33
Consolidated notes to the Accounts	34

COMPANY INFORMATION

Board of Directors

Mr. Mohammed Younus Nawab	- Director
Hafiz Mohammed Irfan Nawab	- Chief Executive
Mr. Ibrahim Younus	- Chairman
Mr. Muhammad Faizanullah	- Director
Mr. Ismail Younus	- Director
Ms. Zainab Hanif Dhedhi	- Director
Mr. Muhammad Ashfaq	- Director
		Audit Committee
Mr. Mohammed Younus Nawab
		Registered Office
33-D-2, Block 6, P.E.C.H.S
P.O.Box No.10651,
Karachi - 75700
Phone : [phone] - 9
Fax	:	021-32570833
E-mail	:	[e-mail]

Auditors

Rahman Sarfaraz Rahim Iqbal Rafiq

Chartered Accountants

Plot No. 180,

Block-A S.M.C.H.S.

Karachi.

Phone: - 021-34549345-9

Fax : [phone]

Bankers

Habib Metropolitan Bank Limited.

Bank Al Habib Limited.

Dubai Islamic Bank Limited.

Habib Bank Limited.

H.R. & Remuneration Committee

Ms. Zainab Hanif Dhedhi	Chairperson
Mr.Syed Amjad Ahmad
Mr.Muhammad Faizanullah

C.F.O./Company Secretary

Mr.Abdul Hussain Antaria

-Company Secretary

Mills

B-186, Hub Industrial Trading Estate,

Hub Chowki, District Lasbela,

Balochistan.

Phone: [phone] - 44

Legal Advisors

Aftab Ahmed.,

Advocate.

B-10,2nd Floor Shelozon Center,

Gulshan-e-Iqbal,

Karachi.

Phone: [phone]

Share Registrars

CDC Share Registrar Services Limited

CDC House, 99-B, Block B, S.M.C.H.S.,

Karachi.

Phone: [phone]

Fax : [phone]

Website for financial data - http://www.sana-industries.com/

2

Directors' Report

The Directors take pleasure in submitting their Report together with the operational and financial results of the company reviewed by the statutory auditors, for the 2nd quarter/ half year ended December 31, 2022.

Pakistan's economy is currently going through a precarious phase due to unfavorable economic and political challenges provided impetus by global recessionary trends.

Due to rising in energy costs, exchange rate parity and flood shocks, inflation clocked at 24.5% as compared to 12.3% in the same period last year. The State Bank of Pakistan to contain the rising inflation, has raised the interest rates to 16% at the half year end, which again rose to 17% in January 2023.

On the macroeconomic front, continuous external debt servicing and deadlock in negotiation with IMF over release of tranche, the forex reserves depleted sharply to USD 5.58 billion by the end of December 2022. This exerted negative pressure on rupee dollar parity and PKR depreciated by 11% during the period under consideration, coupled with significant swings towards north and south during the same period.

During the period under review:

• The consolidated profit/ (loss) after tax during the period under review clocked at Rs. (85.82) million;
• The unconsolidated profit/ (loss) after tax during the period under review clocked at Rs. (95.4) million.

In order to facilitate our shareholders, following comparisons of operating and financial data have been annexed with this report:

• Comparison with previous quarter ‐ Annex‐A
• Comparison with corresponding quarter of last year ‐ Annex‐B
• Comparison with corresponding six months period ‐ Annex‐C
• Comparison of Balance Sheet of last two quarters ‐ Annex‐D
• Comparison of P&L Account of the last two quarters ‐ Annex‐E

Complying with the requirement of SECP, unconsolidated as well as consolidated financial statement for the period are also attached.

Dividend/ Bonus Issue/ Right Issue

No dividend has been announced during the period.

No bonus issue has been announced during the period.

No right issue has been announced during the period.

Future Prospects

As announced at the close of half yearly financials, December 31, 2020, the company raised funds to the tune of Rs. 120.312 million from right issue for expansion of textile unit and establishment of Sana Distributors (Private) Limited as a wholly owned subsidiary, previous production capacity of textile unit was based on 31,488 spindles.

The company embarked on an expansion project to the tune of Rs. 400 million which shall increase our production capacity by 25.7% to 39,588 spindles.

The project was initially undertaken on the following equity/debt structure of 25:75. The project has finally closed during the month of February 2023 and all machinery has arrived. However, due to significant devaluation of rupee during the course of retirement of LC's, the project closed on an equity/ debt structure of 27:73.

	Rs. in millions
	Projected	Actual	Change
Iterf / DM	300	390	30%
Own Sources	100	140	40%
Total	400	530	33%

Out of the 26% capacity enhancement 14% has been installed and is in production while the remaining 12% is expected to commence by April 2023.

Acknowledgment

We would like to place on record our deepest gratitude to all stakeholders (internal/external), Banks, financial institutions, relevant ministries, and regulators for their continuous support towards the growth of the company. We acknowledge the hard work, devotion and loyalty of the staff and workers without whom continued success could not have been achieved. We look forward to the same devotion and cooperation in the years to come.

Muhammad Irfan Nawab	Muhammad Faizanullah
Chief Executive Officer	Director
Karachi: February 27th, 2023