Financial Statements: Nine Months Ended 31 March, 2009

FINANCIAL STATEMENTS
Nine Months Ended 31 March, 2009
TEXTILE MILLS LIMITED

A Kohinoor Maple Leaf Group Company
KOHINOOR
Company Information Directors Review Interim Condensed Balance Sheet Interim Condensed Profit and Loss Account Interim Condensed Cash Flow Statement Interim Condensed Statement of Changes in Equity Selected Notes to the Interim Condensed Financial Statements Directors' Review on Consolidated Interim Financial Statements Consolidated Interim Condensed Balance Sheet Consolidated Interim Condensed Profit and Loss Account Consolidated Interim Condensed Cash Flow Statement Consolidated Interim Condensed Statement of Changes in Equity Selected Notes to the Consolidated Interim Condensed Financial Statements
1 2 3 4 5 6 7 10 11 12 13 14 15
Kohinoor Textile Mills Limited
COMPANY INFORMATION
BOARD OF DIRECTORS MR. TARIQ SAYEED SAIGOL MR. TAUFIQUE SAYEED SAIGOL MR. SAYEED TARIQ SAIGOL MR. WALEED TARIQ SAIGOL MR. KAMIL TAUFIQUE SAIGOL MR. ZAMIRUDDIN AZAR MR. ABDUL HAI MEHMOOD BHAIMIA AUDIT COMMITTEE MR. ZAMIRUDDIN AZAR MR. SAYEED TARIQ SAIGOL MR. WALEED TARIQ SAIGOL MR. KAMIL TAUFIQUE SAIGOL CHIEF FINANCIAL OFFICER MS. BUSHRA NAZ MALIK COMPANY SECRETARY MR. MUHAMMAD ASHRAF MANAGER INTERNAL AUDIT MR. ZEESHAN AHMAD AUDITORS M/S. RIAZ AHMAD & COMPANY CHARTERED ACCOUNTANTS BANKERS AL BARAKA ISLAMIC BANK B.S.C. (E.C.) ALLIED BANK LIMITED ASKARI BANK LIMITED BANK ALFALAH LIMITED FAYSAL BANK LIMITED MCB BANK LIMITED MEEZAN BANK LIMITED NATIONAL BANK OF PAKISTAN NIB BANK LIMITED STANDARD CHARTERED BANK (PAKISTAN) LIMITED HSBC BANK MIDDLE EAST LIMITED THE BANK OF PUNJAB UNITED BANK LIMITED REGISTERED OFFICE 42-LAWRENCE ROAD, LAHORE. TEL: (92-042) 6302261-62 FAX: (92-042) 6368721 SHARE REGISTRAR VISION CONSULTING LTD 3-C, LDA FLATS, LAWRENCE ROAD, LAHORE. TEL: (92-042) 6375531-6375339 FAX: (92-042) 6374839 E-Mail: info@vcl.com.pk & vclcom@yahoo.com WEB SITE: www.vcl.com.pk MILLS PESHAWAR ROAD, RAWALPINDI. TEL: (051) 5473940-3 FAX: (051) 5471795 8th K.M., MANGA RAIWIND ROAD, DISTRICT KASUR. TEL: (042) 5394133-34 FAX: (042) 5394132 GULYANA ROAD, GUJAR KHAN, DISTRICT RAWALPINDI. TEL: (051) 3564472-74 FAX: (051) 3564337 WEB SITE: www.kmlg.com Chairman Member Member Member Chairman Chief Executive
DIRECTORS REVIEW
The Directors present un-audited accounts of the Company for the period ended March 31, 2009 in compliance with requirements of section 245 of the Companies Ordinance, 1984. OPERATING AND FINANCIAL RESULTS During the period under review, the spinning sector economics were severely affected by long periods of electric shutdowns, increase in minimum wages, rise in electric tariff, untenable interest rates and substantial decrease in yarn selling prices. However, the weaving sector performed comparatively better but by end of current quarter, profitability showed downward trend. Despite withdrawal of R & D and increase in markup rates, our strategy to reduce costs by improved efficiency through higher utilization has somewhat worked towards controlling operational losses. The global meltdown in economies all over the world, played a vital role in exacerabating the financial crisis for businesses and liquidity problems of banks has started to impact operational volumes. The Company suffered loss of Rs. 200 million on derivative transactions due to sharp decline in value of Pak rupee but all foreign currency derivative deals have been settled. Sales for the period under review amounted to Rs. 6,242.018 million (previous corresponding period Rs. 5,616.393 million) resulting in gross profit of Rs. 992.527 million against Rs. 786.609 million for the previous corresponding period. Operating profit earned before charging financial cost was Rs. 605.361 million against Rs. 428.545 million for the previous corresponding period. After adjusting financial cost of Rs. 993.620 million (previous corresponding period Rs. 509.872 million) the Company suffered a loss of Rs. 388.259 million (previous corresponding period loss Rs. 81.327 million) before tax. The loss has substantially increased owing to an almost doubling of financial charges. FUTURE PROSPECTS Despite slowdown trend in our main export markets in the USA and Europe, we have a substantial quantity of orders in hand. Our planning to increase share from major retailers has paid dividends and we hope this will lead to higher equipment utilization levels in the next quarter. We remain positive about achieving better financial results as we have an improved back log of business in hand which should yield margins mainly due to devaluation and larger run sizes. ACKNOWLEDGEMENT The Directors are thankful to the members, financial institutions and customers for their cooperation and support. Dedication and hard work of all the employees is appreciated.
For and on behalf of the Board
Lahore 23 April 2009
Taufique Sayeed Saigol Chief Executive
INTERIM CONDENSED BALANCE SHEET AS AT 31 MARCH 2009

UN-AUDITED 31 March 2009 AUDITED 30 June 2008
EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES
NOTE
...... (Rupees in thousand) ......
Authorized share capital 170,000,000 (30 June 2008 : 170,000,000) ordinary shares of Rupees 10 each 30,000,000 (30 June 2008 : 30,000,000) preference shares of Rupees 10 each Issued, subscribed and paid up share capital 145,526,216 (30 June 2008 : 145,526,216) ordinary shares of Rupees 10 each Reserves Total equity Surplus on revaluation of investment property NON-CURRENT LIABILITIES Long term financing Liabilities against assets subject to finance lease Deferred taxation CURRENT LIABILITIES Current portion of non-current liabilities Short term borrowings Trade and other payables Accrued mark-up Total liabilities CONTINGENCIES AND COMMITMENTS TOTAL EQUITY AND LIABILITIES ASSETS NON-CURRENT ASSETS Property, plant and equipment Investment property Long term investment Long term deposits CURRENT ASSETS Stores and spares Stock -in- trade Trade debts Advances Derivative financial instrument Security deposits and short term prepayments Accrued interest Other receivables Short term investments Taxation recoverable Cash and bank balances Non current assets classified as held for sale TOTAL ASSETS 6 5
1,700,000 300,000 2,000,000 1,455,262 444,660 1,899,922 1,263,592 2,150,973 133,210 135,788 2,419,971 759,545 4,890,089 605,792 211,353 6,466,779 8,886,750 12,050,264
1,700,000 300,000 2,000,000 1,455,262 2,266,768 3,722,030 1,263,592 2,451,030 134,199 466,899 3,052,128 609,654 3,994,524 636,998 236,396 5,477,572 8,529,700 13,515,322
7 8
4,045,460 1,720,835 906,919 32,308 6,705,522 343,574 1,691,157 1,083,790 551,106 20,967 328 282,843 620,969 75,297 123,542 4,793,573 551,169 5,344,742 12,050,264
3,972,540 1,720,835 2,035,902 28,824 7,758,101 290,947 1,673,062 1,340,460 370,422 206,054 9,114 115 294,257 1,016,477 52,684 75,387 5,328,979 428,242 5,757,221 13,515,322
The annexed notes form an integral part of this interim financial information.
Zamiruddin Azar Director
INTERIM CONDENSED PROFIT AND LOSS ACCOUNT

FOR THE NINE MONTHS ENDED 31 MARCH 2009 (UN-AUDITED)
QUARTER ENDED 31 March 2009 NOTE SALES COST OF SALES GROSS PROFIT SELLING AND DISTRIBUTION EXPENSES ADMINISTRATIVE EXPENSES OTHER OPERATING EXPENSES 31 March 2008
NINE MONTHS ENDED 31 March 2009 31 March 2008
2,163,945 1,963,450 6,242,018 5,616,393 1,801,518 1,704,862 5,249,491 4,829,784 362,427 258,588 992,527 786,609
123,497 48,891 367 172,755 189,672
91,191 36,327 8,170 135,688 122,900 12,698 135,598 182,555 (46,957) 19,152 (66,109)
352,141 135,666 12,475 500,282 492,245 113,116 605,361 993,620 (388,259) (121,643) (266,616)
274,986 108,787 12,501 396,274 390,335 38,210 428,545 509,872 (81,327) 49,829 (131,156)
OTHER OPERATING INCOME PROFIT FROM OPERATIONS FINANCE COST LOSS BEFORE TAXATION PROVISION FOR TAXATION LOSS AFTER TAXATION EARNINGS PER SHARE - BASIC AND DILUTED (Rs.) 11
9,219 198,891 263,096 (64,205) (12,041) (52,164)
(0.36)
(0.45)
(1.83)
(0.90)
INTERIM CONDENSED CASH FLOW STATEMENT

31 March 2009 NINE MONTHS ENDED 31 March 2008
Note CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations Finance cost paid WPPF paid Income tax paid Net decrease in long term deposits 10
844,484 (1,018,663) (190) (55,825) (3,484) (233,678)
874,328 (472,317) (3) (40,192) (1,278) 360,538
Net cash (used in)/generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditure on property, plant and equipment Payment for land classified as held for sale Purchase of shares Return on bank deposits Proceeds from sale of property, plant and equipment Proceeds from sale of investment Proceeds from sale of land classified as held for sale Dividend received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from: Long term financing - secured Short term borrowings - net Repayment of: Long term financing - secured Liabilities against assets subject to finance leases Term finance certificates Net cash from financing activities NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
(300,110) (139,737) (20,000) 1,476 4,047 6,774 25,000 9,972 (412,578)
(310,650) (293,375) (21,652) 1,324 13,647 8,676 (602,030)
200,000 895,565
109,505 851,176
(324,649) (76,505) 694,411 48,155
(547,141) (63,643) (53,438) 296,459 54,967
75,387
63,731
123,542
118,698
INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY

Revenue Reserves Sub - Total General Reserve Dividend Equalization Reserve Un-appropriated Profit / (Accumulated loss) Sub - Total Total Reserves ( Rupees in thousnad ) Reserves Share Capital Share Premium Surplus/ (Deficit) on revaluation of investment Hedging Reserve Capital Reserves Total Equity
6
Balance as at 30 June 2007 Revaluation of investment to fair value Gain arising on derivative cross currency swap Transfer to unappropriated profit Net loss for nine months ended 31 March 2008 Balance as at 31 March 2008 Revaluation of investment to fair value Gain arising on derivative cross currency swap Net profit for the period ended 30 June 2008 Balance as at 30 June 2008 Transfer to unappropriated profit Adjustment of derivative cross currency swap Revaluation of investment to fair value Net loss for the nine months ended 31 March 2009 Balance as at 31 March 2009
1,455,262 1,455,262 1,455,262 1,455,262
144,919 144,919 144,919 144,919
2,966,064 (1,129,281) 1,836,783 (1,309,423) 527,360 (1,421,557) (894,197)
3,110,983 (1,129,281) 159,268 159,268 159,268 2,140,970 (1,309,423) (25,333) (25,333) 133,935 806,214 (133,935) (133,935) (1,421,557) (749,278)
1,490,491 1,490,491 1,490,491 (40,000) 1,450,491
9,509 (9,509) -
(35,926) 9,509 (131,156) (157,573) 127,636 (29,937) 40,000 (266,616) (256,553)
1,464,074 4,575,057 6,030,319 (1,129,281) (1,129,281) 159,268 159,268 (131,156) (131,156) (131,156) 1,332,918 3,473,888 4,929,150 (1,309,423) (1,309,423) (25,333) (25,333) 127,636 127,636 127,636 1,460,554 2,266,768 3,722,030 (133,935) (133,935) (1,421,557) (1,421,557) (266,616) (266,616) (266,616) 1,193,938 444,660 1,899,922
SELECTED NOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION

1. THE COMPANY AND ITS OPERATIONS Kohinoor Textile Mills Limited is a public limited company incorporated in Pakistan under the Companies Act, 1913 (now Companies Ordinance, 1984) and is listed on the Karachi, Lahore and Islamabad Stock Exchanges. The registered office of the Company is situated at 42 Lawrence Road, Lahore. The principal activity of the Company is manufacturing of yarn and cloth, processing and stitching the cloth and trading textile products. 2. BASIS OF PREPARATION This interim financial information is unaudited and is being submitted to the shareholders as required by section 245 of the Companies Ordinance, 1984. This interim financial information has been prepared in accordance with the International Accounting Standard (IAS) 34 "Interim Financial Reporting" as applicable in Pakistan and notified by the Securities and Exchange Commission of Pakistan (SECP). This interim financial information should be read in conjunction with the annual financial statements of the Company for the year ended 30 June 2008. 3. ACCOUNTING POLICIES AND COMPUTATION METHODS The accounting policies and methods of computations adopted for the preparation of this interim financial information are the same as applied in the preparation of the preceding annual published financial statements of the Company for the year ended 30 June 2008. 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS Judgments and estimates made by the management in the preparation of this interim financial information are the same as those applied to the preceding annual published financial statements of the Company for the year ended 30 June 2008 except for the change as stated below: 4.1 Change in Accounting Estimate During the nine months ended 31 March 2009 the Company has changed the accounting estimate for valuation of unquoted available for sale investments. Fair value of unquoted, available for sale investment is now determined by using dividend stream method. Previously, valuation was carried out using net assets based valuation model. Effect of this change in estimate is recognized prospectively in accordance with the requirements of International Accounting Standard (IAS) 8 "Accounting Policies, Changes in Accounting Estimates and Errors". Had there been no change in this accounting estimate, short term investments, fair value reserve and deferred taxation would have been lower by Rupees 255.942 million, Rupees 188.757 million and Rupees 67.185 million respectively with nil effect on the loss for nine months ended 31 March 2009. 5. LONG TERM FINANCING UN-AUDITED 31 March 2009 AUDITED 30 June 2008
Secured Opening balance Add: Received during the period/year Less: Repayment during the period/year Unsecured Less: Current portion shown under current liabilities 6. CONTINGENCIES AND COMMITMENTS 6.1
2,950,260 200,000 3,150,260 324,649 2,825,611 7,477 2,833,088 682,115 2,150,973
3,223,343 1,828,256 5,051,599 2,101,339 2,950,260 7,477 2,957,737 506,707 2,451,030
There has been no significant change in contingencies since the last audited financial statements except for the guarantees issued by various commercial banks on behalf of the Company to various institutions, aggregating Rupees 319.392 million (30 June 2008 : Rupees 286.531 million). Commitments in respect of : (i) (ii) Letters of credit for capital expenditure amount to Rupees 73.915 million (30 June 2008 : Rupees 116.318 million). Letters of credit other than for capital expenditure amount to Rupees 428.883 million (30 June 2008 :Rupees 237.430 million).
6.2
UN-AUDITED 31 March 2009 7. PROPERTY, PLANT AND EQUIPMENT Owned Written down value at the start of the period/year Add : Addition during the period/year Less : Disposed off during the period/year Less : Depreciation for the period/year Written down value at the end of the period/year Leased Written down value at the start of the period/year Add : Addition during the period/year Less : Disposed/transferred during the period/year Less : Depreciation for the period/year Written down value at the end of the period/year Capital work in progress Civil works and buildings Plant and machinery 4,320 22,618 26,938 4,045,460 7.1 Detail of additions / deletions - Owned Assets 7.2 335,219 50,401 385,620 7.2 385,620 24,167 361,453 7.1 7.1 3,564,658 345,431 3,910,089 2,144 3,907,945 250,876 3,657,069 NOTE
AUDITED 30 June 2008
3,329,788 584,953 3,914,741 18,003 3,896,738 332,080 3,564,658
321,668 49,275 370,943 3,951 366,992 31,773 335,219 42,964 29,699 72,663 3,972,540
UN-AUDITED AUDITED 31 March 30 June 2009 2008 Additions Deletions Additions Deletions ...... (Rupees in thousand) ......
Buildings Plant and machinery Service and other equipment Computers Furniture and fixture Office equipment Vehicles 7.2 Detail of additions / deletions / transfers - Leased Assets Plant and machinery Vehicles 8. LONG TERM INVESTMENT
96,206 240,053 235 1,701 2,738 840 3,658 345,431
375 1,769 2,144
92,133 463,933 5,102 5,420 3,315 1,072 13,978 584,953
7,972 4,342 669 150 58 4,812 18,003
50,401 50,401
49,275 49,275
3,951 3,951
It represents 50.13% equity investment in Maple Leaf Cement Factory Limited (Subsidiary Company) and is classified as available for sale. Due to the prevailing economic conditions, the equity markets plunged significantly during the period under review. Due to these "rare circumstances", indications existed that the investment may be impaired. The management, in accordance with provisions of International Accounting Standard (IAS) 36 "Impairment of Assets" has determined the recoverable amount of its investment i.e. higher of fair value less cost to sell and value in use. Based on favourable value in use, the management concludes that the carrying amount of investment in Maple Leaf Cement Factory Limited does not exceed its recoverable amount. 9. DERIVATIVE FINANCIAL INSTRUMENT During the period under review, the Company has derecognized the derivative financial instrument pursuant to the termination of cross currency swap agreement with the financial institution. The related costs amounting to Rupees 196.057 million has been charged to finance cost.
UN-AUDITED Nine months ended 31 March 31 March 2009 2008 NOTE 10. CASH GENERATED FROM OPERATIONS Loss before taxation Adjustments for non-cash charges and other items: Depreciation Finance cost Gain on sale of property, plant and equipment Loss on remeasurement of investment Gain on sale of land classified as held for sale Loss on sale of investment Dividend income Return on bank deposits Working capital changes 10.1 10.1 Working capital changes (Increase)/ decrease in current assets: Stores and spares Stock-in-trade Trade debts Advances Security deposits and short term prepayments Other receivables Decrease in current liabilities Trade and other payables (52,627) (18,095) 256,670 (180,684) (11,853) 11,414 4,825 (31,018) (26,193) 11. 12. EARNINGS PER SHARE - BASIC AND DILUTED There is no dilutive effect on the basic earnings per share. TRANSACTIONS WITH RELATED PARTIES Related parties comprise of subsidiary company, associated undertakings, other related companies and key management personnel. The Company in the normal course of business carries out transactions with various related parties. Detail of transactions with related parties is as follows : UN-AUDITED Nine months ended 31 March 31 March 2009 2008
...... (Rupees in thousand) ...... ...... (Rupees in thousand) ......
(388,259)
(81,327)
275,045 993,620 (1,903) 6,812 (8,190) 5,213 (9,972) (1,689) (26,193) 844,484
271,344 509,872 (3,761) (8,676) (1,071) 187,947 874,328
(5,236) 210,107 23,820 (31,633) (8,930) 821 188,949 (1,002) 187,947
Subsidiary company Purchase of goods and services Sale of goods and services Other related Parties Dividend income Company's contribution to provident fund 13. AUTHORIZATION This interim financial information has been authorized for issue by the Board of Directors of the Company on 23 April 2009. 14. GENERAL 14.1 No significant reclassifications or rearrangements of corresponding figures have been made. 14.2 Figures have been rounded off to the nearest thousand Rupees. 9,598 16,471 12,469 3,658 1,375 292 -
DIRECTORS' REVIEW ON CONSOLIDATED INTERIM FINANCIAL STATEMENTS

The Company's subsidiary, Maple Leaf Cement Factory Limited recorded sales of Rs. 11,083.500 million for the nine months period ended 31.03.2009 against sales for the corresponding period last year which amounted to Rs. 4,506.659 Million. Maple Leaf Cement Factory Limited recorded a loss after tax of Rs. 685.128 million compared to Rs. 372.653 million for the corresponding period last year. Kohinoor Textile Mills Limited's shareholding in the subsidiary company presently stands at 50.13% of it paid up capital. The consolidated loss after tax of the holding company and its share in the subsidiary for the period is Rs. 629.907 million compared to Rs. 337.816 million for the corresponding period.
For and on behalf of the Board
10
CONSOLIDATED INTERIM CONDENSED BALANCE SHEET AS AT 31 MARCH 2009

UN-AUDITED 31 March 2009 AUDITED 30 June 2008
NOTE EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorized share capital 170,000,000 (30 June 2008 : 170,000,000) ordinary shares of Rupees 10 each 30,000,000 (30 June 2008 : 30,000,000) preference shares of Rupees 10 each Issued, subscribed and paid up share capital 145,526,216 (30 June 2008: 145,526,216) ordinary shares of Rupees 10 each Reserves Minority interest Total equity Surplus on revaluation of investment property NON-CURRENT LIABILITIES Long term financing Redeemable capital Liabilities against assets subject to finance lease Long term deposits Employees benefits Deferred taxation CURRENT LIABILITIES Current portion of non-current liabilities Short term borrowings Trade and other payables Accrued mark-up Total liabilities CONTINGENCIES AND COMMITMENTS TOTAL EQUITY AND LIABILITIES ASSETS NON-CURRENT ASSETS Property, plant and equipment Investment property Intangible assets Long term loans to employees Long term deposits and prepayments Deferred taxation CURRENT ASSETS Stores, spares and loose tools Stock -in- trade Trade debts Loans and advances Derivative financial instruments Due from gratuity fund trust Security deposits and short term prepayments Accrued Interest Other receivables Short term investments Taxation recoverable Cash and bank balances Non current asset classified as held for sale TOTAL ASSETS
1,700,000 300,000 2,000,000
1,700,000 300,000 2,000,000
1,455,262 2,915,866 4,371,128 3,932,271 8,303,399 1,263,592 5 2,892,512 8,000,000 1,069,477 2,639 18,831 11,983,459 1,992,499 8,911,533 2,666,123 867,204 14,437,359 26,420,818 6 35,987,809
1,455,262 4,155,623 5,610,885 4,488,988 10,099,873 1,263,592 3,727,793 8,000,000 1,091,633 2,582 16,688 621,640 13,460,336 1,877,665 7,364,262 3,133,692 430,964 12,806,583 26,266,919 37,630,384
23,569,480 1,720,835 9,283 3,810 85,515 58,666 25,447,589 2,910,811 2,421,381 1,654,435 770,065 11,404 61,729 1,301 324,083 1,354,484 186,045 293,313 9,989,051 551,169 10,540,220 35,987,809
24,053,849 1,720,835 15,082 6,121 82,838 25,878,725 3,616,691 2,107,014 2,083,826 473,667 571,802 9,768 63,646 878 352,917 1,751,336 97,591 194,281 11,323,417 428,242 11,751,659 37,630,384
The annexed notes form an integral part of this consolidated interim financial information.
11
CONSOLIDATED INTERIM CONDENSED PROFIT AND LOSS ACCOUNT

QUARTER ENDED 31 March 2009 31 March 2008 NINE MONTHS ENDED 31 March 2009 31 March 2008
SALES COST OF SALES GROSS PROFIT SELLING AND DISTRIBUTION EXPENSES ADMINISTRATIVE EXPENSES OTHER OPERATING EXPENSES
5,353,700 4,248,449 17,320,486 10,122,759 4,352,133 3,655,382 12,782,472 8,844,869 1,001,567 593,067 4,538,014 1,277,890
488,828 86,790 2,367 577,985 423,582
275,654 2,114,684 76,505 255,149 16,083 23,975 368,242 2,393,808 224,825 2,144,206 55,381 137,638
549,393 185,470 24,651 759,514 518,376 120,971 639,347
OTHER OPERATING INCOME PROFIT FROM OPERATIONS FINANCE COST LOSS BEFORE TAXATION PROVISION FOR TAXATION LOSS AFTER TAXATION MINORITY INTEREST DIVIDEND ON PREFERENCE SHARES SHARE IN LOSS FOR THE PERIOD
19,318 442,900 899,910 (457,010) (3,256) (453,754)
280,206 2,281,844
541,549 3,648,514 1,403,153 (261,343) (1,366,670) (225,431) (35,912) (414,925) (951,745) (763,806) (259,997) (503,809)
13,198 (206,862) (193,664)
13,198 8,485 21,683
39,595 (361,433) (321,838)
39,595 (205,588) (165,993)
LOSS AFTER TAXATION AND MINORITY INTEREST EARNINGS PER SHARE - BASIC AND DILUTED (RUPEES)
(260,090)
(57,595)
(629,907)
(337,816)
(1.79)
(0.40)
(4.33)
(2.32)
12
CONSOLIDATED INTERIM CONDENSED CASH FLOW STATEMENT

31 March 2009
NINE MONTHS ENDED 31 March 2008
Note CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations Finance cost paid WPPF paid Vacation benefit paid Taxes paid Net increase in long term deposits Net cash generated/ (used in) from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditure on property, plant and equipment Payment for land classified as held for sale Long term loans to employees Purchase of investment Return on bank deposits Proceeds from sale of property, plant and equipment Proceeds from sale of investment Proceeds from sale of land classified as held for sale Dividend received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from: Long term financing - secured Redeemable capital Lease finances advance Term finance certificates Short term borrowings (net) Repayment of: Long term financing - secured Liabilities against assets subject to finance lease Term finance certificates Long term deposits from stockists Dividend paid Net cash generated from financing activities NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 9
3,555,327 (3,212,274) (190) (1,218) (177,578) (2,677) 161,390
1,263,088 (1,528,752) (3) (3,350) (89,695) (12,477) (371,189)
(518,831) (139,737) 2,311 (27,000) 10,636 10,567 8,774 25,000 16,828 (611,452)
(1,440,539) (293,375) (31) 4,787 15,532 12,970 29,920 (1,670,736)
200,000 1,547,271
109,505 8,000,000 82,338 2,500,000 2,647,849
(929,773) (11,022,316) (215,872) (52,532) 549,094 99,032 194,281 293,313 (73,120) (53,438) (140) (52,695) 2,137,983 96,058 187,090 283,148
13
CONSOLIDATED INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY

( Rupees in thousnad )
Holding Companys Equity Reserves Capital Reserves Revenue Reserves
Share Capital Share Premium Sub - Total Sub-Total Surplus/(Deficit) on revaluation of investment Hedging Reserves General Reserve Dividend Equalization Reserve Unappropriated Profit Total Reserves
Total
Minority Interest
Total Equity
14
Balance as at 30 June 2007 Gain arising on derivative cross currency swap Transfer to unappropriated profit Revaluation of investment to fair value Dividend paid to minority shareholders Loss for the nine months ended 31 March 2008 Balance as at 31 March 2008 Gain arising on derivative cross currency swap Revaluation of investment to fair value Dividend paid to minority shareholders Loss for the period ended 30 June 2008 Balance as at 30 June 2008 Adjustment of derivative cross currency swap Transfer to unappropriated profit Revaluation of investment to fair value Dividend paid to minority shareholders Loss for the nine months ended 31 March 2009 Balance as at 31 March 2009
1,455,262 1,455,262 1,455,262 1,455,262
144,919 144,919 144,919 144,919
935,229 (298) 934,931 65,542 1,000,473 (292,573) 707,900
121,423 231,676 353,099 (35,822) 317,277 (317,277) -
1,201,571 231,676 (298) 1,432,949 (35,822) 65,542 1,462,669 (317,277) (292,573) 852,819
1,490,491 1,490,491 1,490,491 (40,000) 1,450,491
9,509 (9,509) -
1,562,012 9,509 (337,816) 1,233,705 (31,242) 1,202,463 40,000 (629,907) 612,556
3,062,012 (337,816) 2,724,196 (31,242) 2,692,954 (629,907) 2,063,047
4,263,583 231,676 (298) (337,816) 4,157,145 (35,822) 65,542 (31,242) 4,155,623 (317,277) (292,573) (629,907) 2,915,866
5,718,845 231,676 (298) (337,816) 5,612,407 (35,822) 65,542 (31,242) 5,610,885 (317,277) (292,573) (629,907) 4,371,128
4,804,188 72,032 (52,687) (165,993) 4,657,540 (10,429) (13,336) (44) (144,743) 4,488,988 (182,406) (52,473) (321,838) 3,932,271
10,523,033 303,708 (298) (52,687) (503,809) 10,269,947 (46,251) 52,206 (44) (175,985) 10,099,873 (499,683) (292,573) (52,473) (951,745) 8,303,399
SLECTED NOTES TO THE CONSOLIDATED INTERIM CONDENSED FINANCIAL INFORMATION

1. THE GROUP AND ITS OPERATIONS Holding Company Kohinoor Textile Mills Limited ("the Holding Company") is a public limited company incorporated in Pakistan under the Companies Act, 1913 (now Companies Ordinance, 1984) and is listed on the Karachi, Lahore and Islamabad Stock Exchanges. The registered office of the Company is situated at 42-Lawrence Road, Lahore. The Company holds 50.13% shares of the Subsidiary Company. The principal activity of the Company is manufacturing of yarn and cloth, processing and stitching the cloth and trading textile products. Subsidiary Company Maple Leaf Cement Factory Limited ("the Subsidiary") is a public limited company, incorporated in Pakistan under the Companies Act, 1913 (now Companies Ordinance, 1984) and is listed on the Karachi, Lahore and Islamabad Stock Exchanges. The registered office of the Subsidiary is situated at 42-Lawrence Road, Lahore. The principal activity of the Subsidiary is production and sale of cement. 2. BASIS OF PREPARATION This consolidated interim financial information is unaudited and is being submitted to the shareholders as required by section 245 of the Companies Ordinance, 1984. This consolidated interim financial information has been prepared in accordance with the International Accounting Standard (IAS) 34 "Interim Financial Reporting" as applicable in Pakistan and notified by the Securities and Exchange Commission of Pakistan (SECP). This consolidated interim financial information should be read in conjunction with the annual consolidated financial statements of the Group for the year ended 30 June 2008. 3. ACCOUNTING POLICIES AND COMPUTATION METHODS The accounting policies and methods of computations adopted for the preparation of this consolidated interim financial information are the same as those applied in the preparation of the preceding annual published consolidated financial statements of the Group for the year ended 30 June 2008. 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS Judgments and estimates made by the management in the preparation of this consolidated interim financial information are the same as those applied to the preceding annual published consolidated financial statements of the Group for the year ended 30 June 2008 except for the change stated below: 4.1 Change in Accounting Estimate During the nine months ended 31 March 2009, the Holding Company has changed the accounting estimate for valuation of unquoted available for sale investments. Fair value of unquoted, available for sale investment is now determined by using dividend stream method. Previously, valuation was carried out using net assets based valuation model. Effect of this change in estimate is recognized prospectively in accordance with the requirements of International Accounting Standard (IAS) 8 "Accounting Policies, Changes in Accounting Estimates and Errors". Had there been no change in this accounting estimate, short term investments, fair value reserve and deferred taxation of the holding Company would have been lower by Rupees 255.942 million, Rupees 188.757 million and Rupees 67.185 million respectively with nil effect on the loss for nine months ended 31 March 2009.
15
UN-AUDITED 31 March 2009 NOTE 5. LONG TERM FINANCING Secured Opening balance Add: Received during the period/ year Less: Repayment during the period/ year 5,307,023 200,000 789,873 4,717,150 Unsecured 7,477 4,724,627 Less: Current portion shown under current liabilities 1,832,115 2,892,512 6. CONTINGENCIES AND COMMITMENTS 6.1 CONTINGENCIES
13,842,519 4,569,795 13,105,291 5,307,023 7,477 5,314,500 1,586,707 3,727,793
6.1.1 Holding Company There has been no significant change in contingencies since the last audited financial statements except for the guarantees issued by various commercial banks on behalf of the Company to various institutions, aggregating Rupees 319.392 million (30 June 2008 : Rupees 286.531 million). 6.1.2 Subsidiary Company There has been no significant change in contingencies since the last audited financial statements except for the following: (i) Competition Commission of Pakistan has issued show-cause notice dated 28 October 2008 alleging therein that the Subsidiary has violated section 4(1) of the Competition Commission Ordinance, 2007. The Subsidiary has filed a writ petition before the Islamabad High Court, Islamabad, which is pending adjudication. The Subsidiary has filed an appeal before the Supreme Court of Pakistan against the judgment of the Division Bench of the High Court of Sindh at Karachi. The Division Bench, by judgment dated 15 September 2008, has partly accepted the appeal by declaring that the levy and collection of infrastructure cess / fee prior to 28 December 2006 was illegal and ultra vires and after 28 December 2006, it was legal and the same was collected by the Excise Department in accordance with law. The appeal has been filed against the declaration that after 28 December 2006, the Excise Department has collected the infrastructure cess / fee in accordance with law.
(ii)
(iii) Guarantees issued by various commercial banks, in respect of financial and operational obligations of the Subsidiary, to various institutions and corporate bodies aggregate Rupees 302.363 million as at 31 March 2009 (30 June 2008 : Rupees 434.370 million). 6.2 COMMITMENTS Commitments in respect of : (i) (ii) Capital expenditure other than letters of credit amount to Rupees 461.146 million (30 June 2008: Rupees 168.949 million). Letters of credit for capital expenditure amount to Rupees 1,395.458 million (30 June 2008: Rupees 1,142.482 million).
(iii) Letters of credit other than for capital expenditure amount to Rupees 428.883 million (30 June 2008: Rupees 841.370 million).
16
UN-AUDITED 31 March 2009 NOTE 7. PROPERTY, PLANT AND EQUIPMENT Owned Written down value at the start of the period/ year Add : Additions during the period/ year 22,397,564 397,055 22,794,619 Less : Disposed off during the period/ year Write off 7.1 5,483 5,483 Less : Depreciation for the period/ year Written down value at the end of the period/ year Leased Written down value at the start of the period/ year Add : Addition during the period/ year Less : Disposed off/ transferred during the period/ year Less : Depreciation for the period/ year Written down value at the end of the period/ year Capital work in progress 1,279,124 50,401 1,329,525 7.2 1,329,525 59,610 1,269,915 498,357 23,569,480 7.1 Detail of additions / deletions - Owned Assets 987,928 21,801,208
7.1
10,046,609 13,511,965 23,558,574 14,099 21 14,120 1,146,890 22,397,564
7.2
1,316,309 49,275 1,365,584 3,951 1,361,633 82,509 1,279,124 377,161 24,053,849
UN-AUDITED AUDITED 31 March 30 June 2009 2008 Additions Deletions Additions Deletions ...... (Rupees in thousand) ......
Buildings Plant and machinery Service and other equipment Computers Furniture and fixture Office equipment Vehicles Quarry equipment Share of joint assets
98,414 249,590 235 1,701 12,479 840 33,760 36 397,055
2,782,496 819 10,666,048 5,102 5,420 555 19,740 1,072 4,109 19,999 11,813 275 5,483 13,511,965
3,632 4,342 669 305 58 5,093 14,099
7.2
Detail of additions / deletions/ transfers - Leased Assets Plant and machinery Vehicles 50,401 50,401 49,275 49,275 3,951 3,951
17
8.
DERIVATIVE FINANCIAL INSTRUMENTS During the period under review, the Group has derecognized the derivative financial instrument pursuant to the termination of cross currency swap agreement with the financial institution. The related costs have been charged to finance cost. UN-AUDITED Nine months ended 31 March 31 March 2009 2008
NOTE 9. CASH GENERATED FROM OPERATIONS Loss before taxation Adjustment for non-cash charges and other items Depreciation Amortization of intangible assets Finance cost Deferred liability for vacation benefits Gain on sale of property, plant and equipment Loss on remeasurement of investment Gain on sale of land classified as held for sale Loss on sale of investment Exchange fluctuation loss on liabilites against assets subject to finance lease Dividend income Return on bank deposits Working capital changes 9.1
(1,366,670) 1,047,541 5,799 3,648,514 3,361 (4,908) 13,156 (8,190) 5,213 153,099 (16,828) (11,059) 86,299 3,555,327
(763,806) 882,524 1,403,153 4,373 (3,862) 1,888 (30,554) (5,327) (225,301) 1,263,088
9.1
Working capital changes (Increase)/ decrease in current assets Stores and spares Stock-in-trade Trade debts Loans and advances Security deposits and short term prepayments Due from gratuity fund trust Other receivables 705,880 (314,367) 429,391 (316,829) 1,917 (1,636) 34,993 539,349 Increase/ decrease in current liabilities Trade and other payables (453,050) 86,299 (307,282) 232,005 (326,918) (73,805) (29,838) (2,802) (77,407) (586,047) 360,746 (225,301)
10.
TRANSACTIONS WITH RELATED PARTIES Related parties comprise of associated undertakings, other related companies and key management personnel. The Group in the normal course of business carries out transactions with various related parties. Detail of transactions with related parties is as follows : UN-AUDITED NINE MONTHS ENDED 31 March 31 March 2009 2008 Related Parties Dividend income
9,598
18
11.
AUTHORIZATION This consolidated interim financial information has been authorized for issue by the Board of Directors of the Company on 23 April 2009.
12.
GENERAL 12.1 No significant reclassifications or rearrangements of corresponding figures have been made. 12.2 Figures have been rounded off to the nearest thousand Rupees except stated otherwise.
19
BOOK POST
PRINTED MATTER
If undelivered, please return to:
KOHINOOR TEXTILE MILLS LIMITED
42 - LAWRENCE ROAD, LAHORE.

Financial Statements: Nine Months Ended 31 March, 2009

Diunggah oleh

Informasi Dokumen

Deskripsi Asli:

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Financial Statements: Nine Months Ended 31 March, 2009

Diunggah oleh

Hak Cipta:

Format Tersedia

FINANCIAL STATEMENTS

Nine Months Ended 31 March, 2009

TEXTILE MILLS LIMITED

Kohinoor Textile Mills Limited

Kohinoor Textile Mills Limited

For and on behalf of the Board

Lahore 23 April 2009

Taufique Sayeed Saigol Chief Executive

Kohinoor Textile Mills Limited

INTERIM CONDENSED BALANCE SHEET AS AT 31 MARCH 2009

EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES

...... (Rupees in thousand) ......

Lahore 23 April 2009

Taufique Sayeed Saigol Chief Executive

Zamiruddin Azar Director

Kohinoor Textile Mills Limited

INTERIM CONDENSED PROFIT AND LOSS ACCOUNT

NINE MONTHS ENDED 31 March 2009 31 March 2008

...... (Rupees in thousand) ......

123,497 48,891 367 172,755 189,672

9,219 198,891 263,096 (64,205) (12,041) (52,164)

Lahore 23 April 2009

Taufique Sayeed Saigol Chief Executive

Zamiruddin Azar Director

Kohinoor Textile Mills Limited

INTERIM CONDENSED CASH FLOW STATEMENT

...... (Rupees in thousand) ......

844,484 (1,018,663) (190) (55,825) (3,484) (233,678)

874,328 (472,317) (3) (40,192) (1,278) 360,538

(300,110) (139,737) (20,000) 1,476 4,047 6,774 25,000 9,972 (412,578)

(310,650) (293,375) (21,652) 1,324 13,647 8,676 (602,030)

(324,649) (76,505) 694,411 48,155

(547,141) (63,643) (53,438) 296,459 54,967

Lahore 23 April 2009

Taufique Sayeed Saigol Chief Executive

Zamiruddin Azar Director

INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY

Kohinoor Textile Mills Limited

1,455,262 1,455,262 1,455,262 1,455,262

144,919 144,919 144,919 144,919

2,966,064 (1,129,281) 1,836,783 (1,309,423) 527,360 (1,421,557) (894,197)

1,490,491 1,490,491 1,490,491 (40,000) 1,450,491

(35,926) 9,509 (131,156) (157,573) 127,636 (29,937) 40,000 (266,616) (256,553)

Lahore 23 April 2009

Zamiruddin Azar Director

Kohinoor Textile Mills Limited

SELECTED NOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION

...... (Rupees in thousand) ......

2,950,260 200,000 3,150,260 324,649 2,825,611 7,477 2,833,088 682,115 2,150,973

3,223,343 1,828,256 5,051,599 2,101,339 2,950,260 7,477 2,957,737 506,707 2,451,030

Kohinoor Textile Mills Limited

AUDITED 30 June 2008

...... (Rupees in thousand) ......

3,329,788 584,953 3,914,741 18,003 3,896,738 332,080 3,564,658

96,206 240,053 235 1,701 2,738 840 3,658 345,431

375 1,769 2,144

92,133 463,933 5,102 5,420 3,315 1,072 13,978 584,953

7,972 4,342 669 150 58 4,812 18,003

Kohinoor Textile Mills Limited

271,344 509,872 (3,761) (8,676) (1,071) 187,947 874,328

(5,236) 210,107 23,820 (31,633) (8,930) 821 188,949 (1,002) 187,947

Lahore 23 April 2009