CONTENTS Highlights... · syed muhammad anwar - member mr. zafar asim mr.: muhammad hanif german...

Company Information......................................................................

Directors’ Review............................................................................

Condensed Interim Balance Sheet...................................................

Condensed Interim Profit and Loss Account ..................................

Condensed Interim Statement of Comprehensive Income...............

Condensed Interim Cash Flow Statement.......................................

Condensed Interim Statement of Changes in Equity........................

Notes to the Condensed Interim Financial Statement.....................

Condensed Interim Operating Results.............................................

Director Report in Urdu.................................................................

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CONTENTS

COMPANY INFORMATION

02 THIRD QUARTER REPORT

EXECUTIVE DIRECTOR

NON-EXECUTIVE DIRECTORS

INDEPENDENT DIRECTOR

AUDIT COMMITTEE

HUMAN RESOURCE & REMUNERATION COMMITTEE

CHIEF FINANCIAL OFFICER

COMPANY SECRETARY

AUDITORS

LEGAL ADVISORS

TAX ADVISORS

FACTORY OFFICE

HEAD OFFICE

REGISTERED OFFICE

SHARE REGISTRAR/TRANSFER AGENTS

BANKERS

DEWAN MUHAMMAD YOUSUF FAROOQUICEO & CHAIRMAN BOARD OF DIRECTORSMR. ZAFAR ASIM

MR. HAROON IQBALMR. GHAZANFAR BABER SIDDIQISYED MUHAMMAD ANWARMR. MUHAMMAD BAQAR JAFFERI

MR. AZIZ-UL-HAQUE

MR. AZIZ-UL-HAQUE - CHAIRMANMR. HAROON IQBAL - MEMBERSYED MUHAMMAD ANWAR - MEMBER

MR. HAROON IQBAL - C HAIRMANDEWAN MUHAMMAD YOUSUF FAROOQUI - MEMBERSYED MUHAMMAD ANWAR - MEMBER

MR. ZAFAR ASIM

MR. MUHAMMAD HANIF GERMAN

FARUQ ALI & CO.CHARTERED ACCOUNTANTS

FEROZE SHARIF TARIQ & CO.CHARTERED ACCOUNTANTS

KHALID ANWER & COMPANY - ADVOCATES

SHARIF & COMPANY - ADVOCATES

PLOT NO 1, DEWAN FAROOQUE INDUSTRIAL PARK,HATTAR, DISTRICT HARIPUR (K.P.K.)

FINANCE & TRADE CENTRE BLOCK-A, 7TH FLOOR,SHAHRAH-E-FAISAL, KARACHI.

PLOT NO. 6, STREET NO. 9, FAYYAZ MARKET,G-8/2, ISLAMABAD, PAKISTAN

BMF CONSULTANTS PAKISTAN (PRIVATE) LIMITEDANUM ESTATE BUILDING, ROOM NO. 310 & 311,3RD FLOOR, 49, DARUL AMAN SOCIETY,MAIN SHAHRAH-E-FAISAL, ADJACENT TO BALOCH COLONY BRIDGE,KARACHI, PAKISTAN.

AL BARAKA ISLAMIC INVESTMENT BANK LIMITEDALLIED BANK LIMITEDASKARI BANK LIMITEDBANK ALFALAH LIMITEDBANK OF KHYBER LIMITEDBANK OF PUNJAB LIMITEDFAYSAL BANK LIMITEDHABIB BANK LIMITEDHABIB METROPOLITAN BANK LIMITEDHONG KONG & SHANGHAI BANKING CORPORATION KASB BANK LIMITEDMEEZAN BANK LIMITEDSUMMIT BANK LIMITEDMCB BANK LIMITEDNATIONAL BANK OF PAKISTAN LIMITEDNIB BANK LIMITEDSTANDARD CHARTERED BANK LIMITED (PAKISTAN)SILK BANK LIMITEDUNITED BANK LIMITED

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BOARD OF DIRECTORS

By and under Authority of the Board of Directors

LO-MY LORD IS INDEED HEARER OF PRAYER (HOLY QURAN)

Chief Executive/Chairman Board of Directors

Dewan Muhammad Yousuf Farooqui

DIRECTORS’ REVIEW

IF YE GIVE THANKS, I WILL GIVE YOU MORE (HOLY QURAN)

IN THE NAME OF ALLAH; THE MOST GRACIOUS AND MERCIFUL

03THIRD QUARTER REPORT

The Board of Directors of your company present un-audited Condensed Interim Financial Statements of the rdCompany for the 3 quarter ended on March 31, 2017 in compliance with the requirements of section 245 of

the Company's Ordinance 1984 as amended through Companies ( amendment) Ordinance 2002 and Code of Corporate Governance issued by the Securities and Exchange Commission of Pakistan

OPERATING PERFORMANCEDespite of our best efforts during the period under review, we were unable to start the plants of your company due to unavailability of Working Capital. However, management of your company makes their best efforts to operate the largest unit of the country.

The Company is successfully facing litigations with lenders as elaborated in our previous audited financial statements. The Management is fully confident that the Company will have favorable decision from the concerned courts.

INDUSTRY OVERVIEW The period under review was comparatively remained stable for the polyester industry as far as the sales volume and capacity utilization was concerned. However, some little price variation of PTA and MEG was experienced which the industry passed on in their PSF price accordingly. Moreover, no significant shifting of spinning mills from PSF to other fibre was seen during the period. The spinning sector experienced some fluctuations during the quarter as the PV market slowed down due to unprecedented high temperature during the month of March which forced to early shifting of looms from PV. The increased span of load shedding during that period also affected the looms' production. FINANCIAL PERFORMANCECompany recorded net sales of Rs.Nil (2016-Rs.Nil) during the period under review suffered gross loss of Rs.387.501 million. (2016 Rs. 423.336 million) And loss after taxation amounted to Rs. 380.941 million. (2016 Rs. 463.306 million).

ACKNOWLEDGEMENTThe Board expresses the hope that it's valued shareholders, Federal and Provincial Government functionaries, banks, financial institutions and customers of Salsabil, shall continue to extend their cooperation, support and patronage as in the past.

The Board also expresses its appreciation for the valuable services, loyalty and laudable efforts continuously rendered by the executives, staff members and workers of the company and recognize that they are most valuable assets of the Company.

CONCLUSIONIn conclusion, we bow, beg and pray to Almighty Allah, Rahman-o-Raheem, in the name of our beloved prophet. Muhammad (Peace Be Upon Him), for continued showering of His blessings, Guidance, Strength, Health and Prosperity on our Nation, Country and also pray to Almighty Allah to bestow peace, harmony, brotherhood and unity in true Islamic spirit to the whole of Muslim Ummah, Aameen, Summa Aameen.

Karachi: April 26, 2017

Chief Executive/Chairman Board of DirectorsDewan Muhammad Yousuf Farooqui

DirectorHaroon Iqbal

CONDENSED INTERIM BALANCE SHEET (UN-AUDITED)AS AT MARCH 31, 2017

Re-Stated Re-StatedUN-AUDITED AUDITED

Notes MARCH. 31, 2017

JUNE 30, 2016

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized capital

630,000,000 (2013: 630,000,000) Ordinary shares of Rs. 10/- each 6,300,000 6,300,000

90,000,000 (2013: 90,000,000) Preference shares of Rs. 10/- each 900,000 900,000

7,200,000 7,200,000

Issued, subscribed and paid-up capital 3,663,211 3,663,211

Reserves (16,457,988) (16,180,724)

(12,794,777) (12,517,513)

Surplus on revaluation of property, plant and equipment 1,676,178 1,775,765

NON CURRENT LIABILITIES

Long term loans 171,823 162,734

Deferred liabilities 728,432 774,896

CURRENT LIABILITIES

Trade and other payables 529,863 526,020

Short term borrowings 14,196,096 14,196,096

Overdue portion of long term loans 3,269,874 3,266,724

Overdue portion of liability against assets subject to finance lease 54,145 54,145

Provision for taxation 160,864 160,864

18,210,842 18,203,849Contingencies and commitments -- --

7,992,498 8,399,731ASSETS

NON CURRENT ASSETS

Property, plant and equipment 5,170,706 5,529,604

Long term investments 153,543 147,327

CURRENT ASSETS

Stores and spares 867,845 867,845Trade debts 1,315,656 1,377,334

Advances - Considered good 8,437 9,385

Short term deposits and prepayments 160,553 160,553

Other receivables - Considered good 77,206 76,733

Cash and bank balances 15,552 7,950

2,445,249 2,499,800

Non current assets held for sale 223,000 223,000

7,992,498 8,399,731

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

(Rupees in '000)




CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UNAUDITED)FOR THE NINE MONTHS ENDED MARCH 31, 2017

Sales

Cost of sales (fixed costs)

Gross loss

Distribution cost

Administration expenses

Operating loss

Finance cost

(Loss) / before taxation

Taxation - Deffered

(Loss) / after taxation

Loss per share - Basic ( Rupees )

Loss per share - Diluted ( Rupees )


Mar 31, Mar 31,

Notes2017 2016

-- --

387,501 423,336

(387,501) (423,336)

1,496 1,035

25,573 26,579

27,069 27,614

(414,570) (450,950)

(12,236) (64,909)

(426,806) (515,859)

45,865 52,553

(380,941) (463,306)

(1.04) (1.26)

(0.99) (1.20)

(Rupees in '000)




CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)FOR THE NINE MONTHS ENDED MARCH 31, 2017

Net loss after taxation

Comprehensive income transferred to equity

Net change in fair value of available-for-sale financial assets

Gain realized on sale of investments now reclassified to profit or loss

Incremental depreciation transferred from surplus on revaluation of

property, plant and equipment

Related deferred tax

Total comprehensive loss transferred to equity


Mar 31, Mar 31,

2017 2016

(463,307)

(463,307)

6,215 (1,190)

143,327 159,252

(45,865) (52,553)

97,462 106,699

(277,264) (357,798)

(Rupees in '000)

(380,941)

(380,941)


(515,860)

398,068

--2,257

64,909

(50,626)74,719

24,093

(1,463)(3)

(176)

(1,642)22,451

1,391

(2,963,893)

(2,962,502)

66,846(180)(249)

8,30274,719

10,393

(2,970,019)(2,876)

(2,972,895)

(2,962,502)

CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED)'FOR THE NINE MONTHS ENDED MARCH 31, 2017



Mar 31, Mar 31,

2017 2016

Cash Flow from Operating Activities

Loss before taxation Adjustments for: Depreciation

Unwinding discount Provision for gratuity Financial charges

cash outflow before working capital changes Movement in working capital ( Note A )

Cash generated /(used)from operations Payments for: Staff gratuity Financial charges Tax

Net cash generated in operating activities Cash Flow from Investing Activities Cash Flow from Financing Activities

Net Increase/ (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning

Cash and cash equivalents at 30 September ( Note B)


(Rupees in '000)

Note - AMovement in Working Capital (Increase) / decrease in current assets

Trade Debts Advances Other receivables Increase / (decrease) in current liabilities Trade and other payables

Note - BCash and Cash Equivalents Cash and cash equivalents include: Cash and bank balances Short term finances:

-Short term running finances-Book Overdraft

(426,806)

358,897

9,0891,8533,147

(7,955)65,994

58,039

(4,092)(7)

(472)

(4,571)7,603

7,603

(2,964,945)

(2,957,343)

61,678948

(474)

3,84265,994

15,552

(2,970,019)(2,876)

(2,972,895)

(2,957,343)

-- ---- --


Issued, General Unrealized gain/ Accumulated Total

subscribed reserve (loss) due to loss

and paid-up change in fair

capital value of

investment

(Rupees in '000)

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)FOR THE NINE MONTHS ENDED MARCH 31, 2017



Balance as at July 1, 2015 3,663,211 350,000 1,212 (15,902,527) (11,888,104)

Comprehensive loss for the peroid -- -- -- (463,307) (463,307)

Net changes in fair value of available

for sale financial assets -- -- (1,190) -- (1,190)

Incremental depreciation transferred

from surplus on revaluation of

property,plant and equipment- Net of

Tax -- -- -- 106,699 106,699

Balance as at March 31, 2016 3,663,211 350,000 22 (16,259,135) (12,245,902)

Balance as at July 1, 2016 3,663,211 350,000 2,336 (16,533,060) (12,517,513)

Total Comprensive loss for the period

Comprehensive loss for the period -- -- --

Net changes in fair value of available

for sale financial assets 6,215 6,215

Incremental depreciation transferred

from surplus on revaluation of

property,plant and equipment- Net of

Tax -- 97,462 97,462

Balance as at March 31,2017 3,663,211 350,000 8,551 (16,816,539) (12,794,777)


(380,941) (380,941)


NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)FOR THE NINE MONTHS ENDED MARCH 31, 2017

1 THE COMPANY AND ITS OPERATIONSThe Company was incorporated in Pakistan on October 04, 1989 and its shares are listed on Karachi, Lahore and Islamabad Stock Exchanges. It is engaged in manufacture and sale of polyester, acrylic fibre and tow products. The registered office of the Company is situated at Dewan Centre, House No. 58, Margalla Road, F-7/2, Islamabad, Pakistan.

2 BASIS OF PREPARATION2.1 These condensed interim financial statements of the company are for the

quarter ended March 31, 2017 have been prepared in accordance with the requirements of International Accounting Standard 34 (IAS 34) "Interim Financial Reporting" and being submitted to the shareholders under section 245 of the Companies Ordinance 1984 and listing regulations of the Karachi, Lahore and Islamabad Stock Exchange.

2.2 These interim financial Statements comprises of the Balance Sheet as at March 31, 2017 and the Profit and Loss Account, Statement of Changes in Equity and the Cash Flow Statement for the quarter ended March 31, 2017.

2.3 These comparative Balance Sheet presented in these condensed interim financial statements as March 31, 2017 has been extracted from the annual audited financial statements of the company for the year ended June 30, 2016 where as the items of comparative profit and loss account, statement of changes in equity, cash flow statement and statement of comprehensive income are for the quarter ended March 31, 2016.

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES3.1 The accounting policies, significant accounting estimates and judgments

adopted and applied in the preparation of the condensed interim financial information are consistent with those followed in the preparation of the Company's annual financial statements for the year ended 30 June 2016.


4 SHORT TERM BORROWINGSThe short term borrowings has not been renewed by the bank as of balance sheet date.

5 CONTINGENCIES AND COMMITMENTSThe status of contingencies and commitments are same as reported in the annual financial statements for the year ended 30 June 2016.

6 DATE OF AUTHORIZATION FOR ISSUEThese financial statement have been authorized for issue on 26 April 2017 by the board of Directors of the company.

7 GENERALThe figure have been rounded off to the nearest thousand rupees.






CONDENSED INTERIM OPERATING RESULTS (UNAUDITED)FOR THE QUARTER ENDED MARCH 31, 2017

Mar 31, Mar 31,

Notes 2017 2016

Sales -- --

Cost of sales 131,018 139,892

Gross loss (131,018) (139,892)

Distribution cost 667 345

Administration expenses 8,190 9,243

8,857 9,588Operating loss (139,875) (149,480)

Finance cost 1,061 (8,174)Loss before taxation (138,814) (141,306)

Taxation - Deffered (2,866) (18,579)

Loss after taxation (135,948) (122,727)

Loss per share - Basic ( Rupees ) (0.37) (0.33)

Loss per share - Diluted ( Rupees ) (0.35) (0.32)


(Rupees in '000)


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