Shahtaj Textile : Transmission of Quarterly Report for the Period Ended 30-09-2022

Condensed Interim

Financial Statements

for the quarter ended

September 30 2022

CONTENT

Company Information	02
Directors' Report to the Shareholders	03
Condensed Interim Statement of Financial Position	07
Condensed Interim Statement of Profit or Loss Account	08
Condensed Interim Statement of Comprehensive Income	09
Condensed Interim Cash Flow Statement	09
Condensed Interim Statement of Changes in Equity	10
Notes to the Condensed Interim Financial Satements	11

01

BOARD OF DIRECTORS	Mr. Muneer Nawaz	Chairman
	Mr. M. Naeem	Chief Executive
	Mr. Abid Nawaz
	Mr. Aamir Amin (NIT)
	Mr. Farooq Hassan
	Mr. Syed Nadeem Ali Kazmi
	Mr. Toqueer Nawaz
	Mrs. Sadia Mohammad
	Mr. Muhammad Usman Khalid
	Lt. Col. (Retd.) R.D. Shams
COMPANY SECRETARY	Mr. Jamil Ahmad Butt, FCMA
AUDIT COMMITTEE OF THE BOARD	Mr. Aamir Amin	Chairman
	Mr. Muneer Nawaz	Member
	Mr. Toqueer Nawaz	Member
	Mr. Muhammad Usman Khalid	Member
	Mr. Jamil Ahmad Butt, FCMA	Secretary
HUMAN RESOURCE AND	Mr. Farooq Hassan	Chairman
REMUNERATION COMMITTE OF	Mr. Muneer Nawaz	Member
THE BOARD	Mr. M. Naeem	Member
	Mr. Toqueer Nawaz	Member
	Mrs. Sadia Muhammad	Member
	Mr. Jamil Ahmad Butt, FCMA	Secretary
AUDITORS	Yousuf Adil.
	Chartered Accountants.
	Cavish Court, A-35, Block 7 & 8 KCHS,
	Shahrah-e-Faisal, Karachi 75350.
BANKS	Bank Alfalah Limited
	United Bank Limited
	Meezan Bank Ltd.
	The Bank of Punjab
	MCB Bank Limited
	Faysal Bank Limited
	National Bank of Pakistan
LEGAL ADVISOR	Mr. Ras Tariq Chaudhary
	30-Mall Mansion
	The Mall
	Lahore.
HEAD OFFICE	Shahnawaz Building, 19-Dockyard Road,
	West Wharf, Karachi-74000
	Ph: 32313934-8, 32312834, 32310973
	Fax: [phone]
	Website: www.shahtaj.com
REGISTERED OFFICE	27-C Abdalian Co-oporetive
	Hosing Society, Lahore,
	Ph: [phone]-92,35301596-99
	Fax: [phone]
MARKETING OFFICE	27-C Abdalian Co-oporetive
	Hosing Society, Lahore,
	Ph: [phone]-92,35301596-99
	Fax: [phone]
FACTORY	46 K.M. Lahore/Multan Road
	Chunian Industrial Estate
	Bhai Pheru, Distt. Kasur, Punjab.
	Ph: [phone]-32, 4540133, 4540234
	Fax: [phone]
SHARE REGISTRAR	Jwaffs Registrar Services (Pvt.) Ltd.
	Suite # 407,408, 4th Floor, Al-Ameera Centre,
	Shahrah-e-Iraq, Near Passport Office,
	Saddar Karachi.
	Tel: [phone] Fax: [phone]

02

DIRECTORS' REPORT TO THE SHAREHOLDERS

Directors are pleased to present un-audited Condensed Interim Financial Statements of the Company for the First Quarter ended on September 30, 2022.

By the grace of Allah, in spite of difficult market conditions, operating results of the Company have been positive and Company has earned after tax profit of Rs. 47.940 million with an EPS of Rs 4.96 in comparison to Rs 8.97 reported during the same period last year. Net Sales revenue for the quarter is Rs. 2.317 billion compared to Rs. 1.894 billion showing increase of about 22% over the corresponding period of last year which is due to combination of price increase as well as volume increase. However, GP rate dropped significantly from 10.59% to 7.09% mainly due to drastic increase in power cost.

Administration cost for the period is higher than previous corresponding period due to inflationary effect. Finance cost for the period increased significantly mainly because of more short-term borrowing due to high inventory levels and trade receivables and massive increase in interest rates which has almost doubled as compared to same period of last year.

Other income increased significantly mainly because of exchange gain due to currency devaluation

Our customers have in stock high level of inventories and are reluctant to commit further business resulting in drop in demand and pressure on fabric prices. Economic factors such as increasing interest rates, twin digit inflation and uncertainties of exchange rate are creating serios hurdles in business planning. Apart from political instability, natural and climate disasters further challenged Pakistan's economy by destroying crops posing a serious threat of cotton shortage in coming periods. All these factors had intensive impact on the business of first quarter and expected to continue for the financial year 2022-23.

Efforts will continue as always for more improvement.

Board and its Committees

The total number of directors is ten as per the following:

a) Male: 9

b) Female: 1

Category	Names
Independent Directors	Mr. Aamir Amin (NIT)
	Mr. Farooq Hassan
	Mr. Syed Nadeem Ali Kazmi
	Mr. Muneer Nawaz
Other Non-Executive Directors	Mr. Toqueer Nawaz
Mr. Muhammad Usman Khalid
	Mr. Abid Nawaz
Female Non-Executive Director	Mrs. Sadia Muhammad
Executive Directors	Mr. Muhammad Naeem
Lt. Col(Retd.) Rashiduddin Shams

03

The Board has formed committees comprising of members as below:

a) Audit Committee

• Mr. Aamir Amin (Chairman)
• Mr. Muneer Nawaz
• Mr. Toqueer Nawaz
• Mr. Muhammad Usman Khalid
• Mr. Abid Nawaz

b) HR and Remuneration Committee

• Mr. Farooq Hassan (Chairman)
• Mr. Muneer Nawaz
• Mr. Muhammad Naeem
• Mr. Toqueer Nawaz
• Mrs. Sadia Muhammad

Appreciation

Directors acknowledge with thanks the hard work put in by all employees of the Company.

for and on behalf of the Board of Directors

Karachi	(M. Naeem)	(Aamir Amin)
October 26, 2022	Chief Executive	Director

04