Textile Mills Limited

Textile Mills Limited
Condensed Interim Financial Information

For the Nine Months Ended March 31, 2021
Company Information
BOARD OF DIRECTORS Mohomed Bashir - Chairman
Zain Bashir - Vice Chairman/ Executive Director
Mohammed Zaki Bashir - Chief Executive Officer
Ziad Bashir - Non Executive Director
Dr. Amjad Waheed - Non Executive Director
Ehsan A. Malik - Independent Director
Zeeba Ansar - Independent Director
CHIEF FINANCIAL OFFICER Abdul Aleem
COMPANY SECRETARY Salim Ghaffar
AUDIT COMMITTEE Ehsan A. Malik - Chairman & Member

Mohomed Bashir - Member
Dr. Amjad Waheed - Member
Salim Ghaffar - Secretary
HUMAN RESOURCE AND Ehsan A. Malik - Chairman & Member

REMUNERATION Mohomed Bashir - Member
COMMITTEE Zain Bashir - Member
Salim Ghaffar - Secretary
BANKERS Allied Bank Limited

Al Baraka Bank (Pakistan) Limited
Askari Bank Limited
Bank Al Habib Limited
Bank Alfalah Limited
Bank of Khyber
Bankislami Pakistan Limited
Citi Bank N.A
Dubai Islamic Bank Pakistan Limited
Faysal Bank Limited
Habib Bank Limited
Habib Metropolitan Bank Limited
Industrial and Commercial Bank of China
JS Bank limited
MCB Bank Limited
MCB Islamic Bank Limited
Meezan Bank Limited
National Bank Of Pakistan
Samba Bank Limited
Silkbank Limited
Soneri Bank Limited
Standard Chartered Bank (Pakistan) Limited
Summit Bank limited
The Bank Of Punjab
United Bank Limited
AUDITORS Kreston Hyder Bhimji & Co.

Chartered Accountants
INTERNAL AUDITORS Grant Thornton Anjum Rahman

Chartered Accountants
LEGAL ADVISORS A.K. Brohi & Co

Advocates
REGISTERED OFFICE Plot No.82,

Main National Highway,
Landhi, Karachi-75120
SHARE REGISTRAR FAMCO Associates (Private) Limited

8-F, Next to Hotel Faran, Nursery, Block 6,
P.E.C.H.S., Shahrah-E-Faisal, Karachi.
Phone No. (+92-021) 34380101-5
Fax No. (+92-021) 34380106
MILLS Landhi Industrial Area,

Karachi-75120
E-MAIL finance@gulahmed.Com
URL www.gulahmed.com
Quarterly Report|| 1
DIRECTORS’ REVIEW REPORT TO THE SHAREHOLDERS
The Directors of your Company are pleased to present their review of the affairs of the Company
for nine months ended March 31, 2021.
ECONOMIC OVERVIEW
According to the World Bank Global monthly report, the world economic recovery is
strengthening. However, it is uneven across regions and countries. Commodity prices continue to
experience broad-based increase due to firming demand and availability of low cost global
liquidity. Adaptation to the pandemic has enabled the global economy to do well despite subdued
overall activity and mobility, leading to a stronger-than-anticipated rebound where the IMF now
projects a stronger world growth rate of 6 percent in 2021 and 4.4 percent in 2022.
Pakistan’s current account surplus for nine months of FY 2020-21 amounted to US$ 0.9 billion as
compared to a current account deficit of US$ 4.1 billion in same period last year. Trade deficit
grew by 18 percent with exports shrinking by 2 percent to US$ 18.7 billion (and imports expanding
by 9 percent to US$ 37.4 billion in nine months of FY 2020-21. Whereas, workers remittances
grew by 26 percent to US$ 21.5 billion in nine months of FY 2020-21 as compared to US$ 17
billion in the same period last year. Foreign Currency reserves grew by 24 percent to US$ 13.5
billion in nine months of FY 2020-21 as compared to US$ 10.8 billion in same period last year.
Moreover, State Bank of Pakistan (SBP) has continued to maintain the policy rate at 7 percent in
line with reduction in inflation and a relatively slow economy.
INDUSTRIAL OVERVIEW
The Large-Scale Manufacturing (LSM) sector is continuously showing healthy growth during the
current fiscal year. The LSM has surpassed its pre-COVID level of production in the month of
January 2021, witnessing 9.1 percent growth on annual basis as against (-5.7) percent in the same
period of the previous year.
The textile exports were recorded at US$ 11.35 billion in July-March (2020-21) against exports of
US$10.41 billion in July-March (2019-20), showing growth of 9.06 percent, according to latest
data of Pakistan Bureau of Statistics (PBS). The textile commodities that contributed in trade
growth mainly included knitwear exports, which increased from US$ 2.29 billion last year to US$
2.78 billion during the current year (20.92 rise). Likewise, exports of yarn (other than cotton yarn)
increased by 12.53 percent from US$ 20.937 million to US$ 23.56 million whereas, exports of bed
wear increased by 16.50 percent from US$ 1.76 billion to US$2.05 billion. Exports of towels
increased by 16.84 percent from US$ 592.37 million to US$ 692.11 million and readymade
garments by 4.53 percent from US$ 2.17 billion to US$ 2.27 billion.
FINANCIAL PERFORMANCE
Key performance numbers are presented below:
Nine months Nine months
Units ended March 31, ended March 31,
2021 2020
Export sales Rs. in billions 40.85 28.51
Local sales Rs. in billions 22.72 16.38
Total sales Rs. in billions 63.57 44.89
Gross profit Rs. in billions 12.30 8.12
Profit before tax Rs. in billions 4.47 1.07
Profit after tax Rs. in billions 3.46 0.70
Earnings per share (EPS) Rupees 8.08 1.64
Debt to equity ratio Times 1.04 0.77
Current ratio Times 1.13 1.03
Break-up-value per share Rupees 40.72 35.39
Gross Profit Margin % 19.35 18.09
Profit before tax Margin % 7.03 2.44
Profit after tax Margin % 5.44 1.56
The company has faced many challenges in this fiscal year. The one challenge was unfavorable
US$/PKR parity. The rate was Rs. 168 to US$versus, Rs 162 on December 31, 2020 and Rs. 153
approximately on March 31, 2021. This dented both the top and bottom line of the company
significantly. The second major factor to affect the company has been global cotton & yarn
increasing prices and timely availability. The company was also faced with revision in Gas Tariff
along with some supply issues in the winter months. Lastly, the retail sector has been affected
significantly due to Covid 19 globally. In Pakistan the year started off with limited operational
hours and SOP’s in place that have dented the retail revenue by approximately 20% so far. The
retail segment of our company has done extraordinarily well given the challenging circumstance’s
this year.
The management made its best efforts to counter the impact of the above with timely hedging of
exchange rates and timely buying of raw materials from multiple destinations resulting in cost
reduction and revenue optimization. The retail segment used a combination of strategies including
investing in its e-commerce platform to increase market penetration with timely promotions during
working hours to ensure optimal inventory turnover. The combined results of these efforts are
well reflected in the above table. It is pertinent to note that the Company has performed very well
in export sales despite unfavorable exchange rate. Higher sales and effective cost controls helped
to achieve higher gross margin, profit before and after tax and an improved earnings per share. It
is important to mention the following numbers: Sales have increased by 42%, Gross Profit has
increased by 51%, Net Profit before Tax has increased by 317%, and resultantly the EPS has
increased by 392%.
FUTURE OUTLOOK
Pakistan’s short-term economic prospects are subdued owing to the ongoing third wave of the
infection that could trigger more protracted and extensive lockdowns, stifling the fragile
recovery.
Delayed deployment of the COVID-19 vaccines, both domestically and globally, would further
elevate these risks. At the same time, economic activity is projected to dampen in the short-term
by fiscal consolidation measures associated with the IMF stabilization program, which is expected
to resume as the economy regains its footing. Moreover, as domestic consumption revives, trade
deficit is expected to widen as duty free imports surge in the wake of booming industrial activities.
The Company and its management will continue to focus on investment in balancing and
modernization through technologically advanced machinery, rationalize costs and further enhance
the sales and production efficiency Your management is confident to deliver good result in the
coming quarter, though the risks like further unfavorable change in US$/PKR parity, increase in
raw material prices, changes in financial costs, change in utility pricing by the Government, may
have a material impact.
As previously mentioned the company is in the process of hiving out its retail business “Ideas” to
enable it to be a 100% subsidiary within 2021 subject to all necessary approvals.
CONSOLIDATED FINANCIAL STATEMENTS

Consolidated financial statements for the Half Year ended December 31, 2020 of the Company
and its subsidiaries Gul Ahmed International Limited (FZC) – UAE, GTM (Europe) Limited –
UK, GTM USA Corp. – USA Sky Home Corporation USA, and Vantona Home Limited, UK are
attached.
ACKNOWELDGEMENT
We acknowledge and appreciate the efforts and valuable support of all stakeholders.
For and on behalf of the Board
Mohomed Bashir Mohammad Zaki

Chairman Chief Executive Officer
April 27, 2021

Karachi
Gul Ahmed Textile Mills Limited
Condensed Interim Un-consolidated
Statement of Financial Position
As at March 31, 2021
Un-Audited Audited
March June
Note 2021 2020
----------Rupees in '000----------
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorised share capital
750,000,000 ordinary shares of Rs.10 each 7,500,000 7,500,000
Issued, subscribed and paid-up capital 4,277,946 4,277,946

427,794,630 ordinary shares of Rs. 10 each
Reserves 13,143,141 9,685,254

17,421,087 13,963,200
NON-CURRENT LIABILITIES
Long term financing - Secured 4 18,190,884 13,445,600
Lease liability against right-of-use assets 5 2,838,165 2,191,703
Provision for Gas Infrastructure Development Cess 1,477,457 -
Deferred liabilities
Deferred taxation - net 210,167 35,167
Deferred income - government grant 34,212 35,220
Staff gratuity 145,034 136,760
389,413 207,147
CURRENT LIABILITIES
Trade and other payables 6 12,963,000 12,111,544
Accrued mark-up/profit 348,216 405,979
Short term borrowings 26,370,086 25,486,947
Current maturity of long term financing 4 2,160,886 420,113
Current maturity of lease liability against right-of-use asset 5 467,121 409,199
Current maturity of deferred income - government grant 97,816 48,921
Unclaimed dividend 9,460 9,739
Unpaid dividend 21,103 21,103
42,437,688 38,913,545
CONTINGENCIES AND COMMITMENTS 7
82,754,694 68,721,195
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 8 29,091,172 23,936,017
Right-of-use assets 9 2,845,258 2,314,161
Intangible assets 10 87,920 89,568
Long term investment 11 2,423,450 2,423,450
Long term loans and advances 63,343 58,720
Long term deposits 306,312 379,332
34,817,455 29,201,248
CURRENT ASSETS
Stores and spares 2,357,921 2,047,067
Stock-in-trade 27,177,778 25,829,952
Trade debts 11,038,699 5,701,537
Loans, advances and other receivables 2,731,841 1,273,805
Short term prepayments 210,878 241,765
Receivable from government 2,771,980 2,804,316
Taxation - net 891,068 1,132,621
Cash and bank balances 757,074 488,884
47,937,239 39,519,947
82,754,694 68,721,195
The annexed notes from 1 to 20 form an integral part of these condensed interim un-consolidated financial statements.
MOHOMED BASHIR MOHAMMED ZAKI BASHIR ABDUL ALEEM

Chairman Chief Executive Officer Chief Financial Officer
Statement of Profit or Loss
For the nine months ended March 31, 2021
Un-Audited
Nine months ended Quarter ended
July to January to January to
Note
July to March March March March
2021 2020 2021 2020
----------------------------Rupees in '000----------------------------
Sales - net 63,567,362 44,892,287 21,971,829 14,237,998
Cost of sales 51,267,055 36,768,518 17,255,035 12,324,644

Gross profit 12,300,307 8,123,769 4,716,794 1,913,354
Distribution costs 4,333,999 3,762,968 1,556,612 1,210,271

Administrative costs 1,998,131 2,040,706 705,916 738,464
Other operating costs 481,056 218,238 95,681 40,235
6,813,186 6,021,912 2,358,209 1,988,970
5,487,121 2,101,857 2,358,585 (75,616)
Other income 12 531,212 424,673 97,967 351,683
Operating profit 6,018,333 2,526,530 2,456,552 276,067
Finance cost 1,546,940 1,430,081 389,024 507,197
Profit before taxation 4,471,393 1,096,449 2,067,528 (231,130)
Taxation
- Current 14 838,506 480,265 359,814 183,176
- Deferred 175,000 (83,368) 16,071 (44,528)
1,013,506 396,897 375,885 138,648
Profit after taxation 3,457,887 699,552 1,691,643 (369,778)
Earning per share - basic and diluted (Rs.) 8.08 1.64 3.95 (0.86)

Statement of Comprehensive Income
Un-Audited
Nine months ended Quarter ended
July to July to January to January to
March March March March
2021 2020 2021 2020
----------------------------Rupees in '000----------------------------
Other comprehensive income - - - -
Total comprehensive income 3,457,887 699,552 1,691,643 (369,778)

Condensed Interim Un-Consolidated
Statement of Cash Flows
Un-Audited
Nine months ended
Note July to March July to March
2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES -----------Rupees in '000-----------
Profit before taxation 4,471,393 1,096,449
Adjustments for:
Depreciation on property, plant and equipment 8.3 1,993,385 1,561,282
Depreciation on right-of-use assets 9 505,972 553,546
Amortisation on intangible assets 19,351 17,051
Provision for gratuity 51,793 116,874
Finance cost 1,273,319 1,153,509
Interest on lease liability against right-of-use asset 273,621 276,572
Provision for slow moving/obsolete stores
18,874 17,179
and spares
Expected credit losses against doubtful trade debts 42,064 -
Loss on disposal of property, plant and equipment 173,649 125,315
Gain on disposal of property, plant and equipment (90,246) (30,969)
4,261,782 3,790,359
Cash flows from operating activities before adjustments of
working capital 8,733,175 4,886,808
Changes in working capital:

Increase in current assets
Stores and spares (329,728) (308,011)
Stock-in-trade (1,347,826) (2,649,856)
Trade debts (5,379,226) 255,135
Loans, advances and other receivables (1,458,036) (1,305,588)
Short term prepayments 30,887 (338,904)
Receivable from Government 32,336 (1,190,925)
(8,451,593) (5,538,149)
Increase in current liabilities
Trade and other payables 2,328,913 4,068,595
(6,122,680) (1,469,554)
Cash generated from operations before adjustment of following 2,610,495 3,417,254
Adjustments for:
Gratuity paid (43,519) (38,690)
Finance cost paid (1,331,082) (1,421,057)
Income tax paid (596,953) (488,036)
(Increase) / Decrease in long term loans and advances (4,623) 2,803
Decrease / (Increase) in long term deposits 73,020 (13,262)
(1,903,157) (1,958,242)
Net Cash generated from Operating activities 707,338 1,459,012
CASH FLOWS FROM INVESTING ACTIVITIES
Addition to property, plant and equipment (7,434,000) (6,292,481)

Addition to intangible assets (17,703) (56,528)
Proceeds from sale of property, plant and equipment 202,057 191,109
Long term investments made during the period - (1,069,886)
Net cash used in investing activities (7,249,646) (7,227,786)
Balance carried forward (6,542,308) (5,768,774)
Condensed Interim Un-Consolidated
Un-Audited
Nine months ended
Note July to March July to March
2021 2020
-----------Rupees in '000-----------
Balance brought forward (6,542,308) (5,768,774)
CASH FLOWS FROM FINANCING ACTIVITIES
Long term financing obtained 4 6,536,916 3,747,071

Long term financing repaid (2,972) (904,897)
Payments for lease liability against right of use asset (606,306) (356,487)
Dividend paid (279) (891,914)
Net cash generated from/(used in) financing activities 5,927,359 1,593,773
Net increase / (decrease) in cash and cash equivalents (614,949) (4,175,001)
Cash and cash equivalents - at the beginning of the period (24,998,063) (18,469,899)
Cash and cash equivalents - at the end of the period 13 (25,613,012) (22,644,900)
The annexed notes from 1 to 20 form an integral part of these condensed interim un-consolidated financial
statements.

Statement of Changes in Equity
Capital reserve - Unappropriated

Share Capital Total Reserves Total
Share Premium Profit
------------------------------------ Rupees '000------------------------------------
Balance as at June 30, 2019 (Audited) 3,564,955 1,405,415 10,362,843 11,768,258 15,333,213
Transaction with owners
Final dividend for the year ended June 30, 2019 - - (891,239) (891,239) (891,239)
Issuance of bonus shares 712,991 (712,991) - (712,991) -
Total comprehensive income

Profit after taxation for nine months ended March 31, 2020 - - 699,552 699,552 699,552
Other comprehensive income - - - - -
- - 699,552 699,552 699,552
Balance as at March 31, 2020 (Un-audited) 4,277,946 692,424 10,171,156 10,863,580 15,141,526
Total comprehensive loss for the

three months ended June 30, 2020
Loss after taxation - - (1,178,917) (1,178,917) (1,178,917)
Other comprehensive income - - 591 591 591
- - (1,178,326) (1,178,326) (1,178,326)
Balance as at June 30, 2020 4,277,946 692,424 8,992,830 9,685,254 13,963,200
Total comprehensive income

Profit after taxation for nine months ended March 31, 2021 - - 3,457,887 3,457,887 3,457,887
Other comprehensive income - - - - -
- - 3,457,887 3,457,887 3,457,887
Balance as at March 31, 2021 (Un-audited) 4,277,946 692,424 12,450,717 13,143,141 17,421,087

Chairman Chief Executive Officer Chief Finance Officer
Notes to the Condensed Interim Un-consolidated
Financial Statements (Un-audited)
1 LEGAL STATUS AND ITS OPERATIONS
1.1 Gul Ahmed Textile Mills Limited (The Company) was incorporated on April 01, 1953 in Pakistan as a private limited company, subsequently
converted into public limited company on January 07, 1955 and is listed in Pakistan Stock Exchange Limited. The Company is a composite textile
unit and is engaged in the manufacture and sale of textile products.
The Company’s registered office is situated at Plot No. 82, Main National Highway, Landhi, Karachi.
The Company is a subsidiary of Gul Ahmed Holdings (Private) Limited.
The Company has the following subsidiaries:
Details of Subsidiaries
Country of
Name Date of Incorporation Incorporation
%of Holding
Gul Ahmed International Limited FZC December 11, 2002 U.A.E 100%
GTM (Europe) Limited - Indirect subsidiary April 17, 2003 U.K 100%
GTM USA Corp. - Indirect subsidiary March 19, 2012 U.S.A 100%
Sky Home Corp.- Indirect Subsidiary February 28, 2017 U.S.A 100%
Vantona Home limited - Indirect Subsidiary April 22, 2013 U.K 100%
JCCO 406 limited - Indirect Subsidiary September 29, 2017 U.K 100%
Worldwide developers (Pvt) limited-Direct December 22, 2014 Pakistan 54.84%
All subsidiaries are engaged in distribution/trading of textile related products except for Worldwide Developers (Pvt) Limited which was incorporated
to carry on real estate business and currently it has rented out certain portion of its property to the Company for warehousing purpose.
1.2 Details of leasehold lands owned by the Company are as follows;
Unit Area Address

Unit 1,2 & 3 25.07 Acres Plot No. HT-4, Landhi Industrial Area, Landhi, Karachi.
Unit 4 & 5 14.9 Acres Survey No. 82, Deh Landhi, Karachi.
Unit 6,7 & 8 18.56 Acres Plot No. H-7, Landhi Industrial Area, Landhi, Karachi.
MTF Plot 44.04 acres P.U. No. 48, 49, 50, & 51, Near Machine Tool Factory.
Deh Khanto Tapo Landhi, Karachi.
Plot 2 Kanal,19 Plot No. 24-A, C-III, Gulberg, Lahore.
Marlas and
153.5 Sq. Feet
Plot 4,023.16 Sq. yards Plot No. H-19/1, Landhi Industrial Area, Landhi Township,
Karachi.
1.3 Geographical locations and addresses of all factory building on rented premises are as follows;
Address
Plot# 369, Main National Highway, Landhi, Karachi.
Plot# HT/3A,KDA Scheme 3, Landhi Industrial area, Karachi.
Plot# ST-17/1 and ST-17/3, Federal 'B' Area, Azizabad, Karachi.
Plot# HT/8,KDA Scheme 3, Landhi Industrial area, Karachi.
Plot# 12, Sector 23, Korangi Industrial area, Karachi.
1.4 As at March 31, 2021, the Company has 64 retail outlets, 30 fabric stores, 3 fair price shops, 4 whole sale shops and 6 franchises (June-2020:64
retail outlets, 29 fabric stores, 2 fair price shops, 5 whole sale shops and 6 franchises).
2 BASIS OF PREPARATION
These condensed interim unconsolidated financial statements have been prepared in accordance with the accounting and reporting standards as applicable
in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:
- International Accounting Standard (IAS) 34, "Interim Financial Reporting", issued by International Accounting Standard Board (IASB) as notified under the
Companies Act, 2017; and
- Provisions of and directives issued under the Companies Act, 2017.
Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued
under the Companies Act, 2017 have been followed.
These condensed interim un-consolidated financial statements comprise of the condensed interim un-consolidated statement of financial position as at
March 31, 2021 and the condensed interim un-consolidated statement of profit or loss, condensed interim un-consolidated statement of comprehensive
income, condensed interim un-consolidated statement of changes in equity and condensed interim un-consolidated statement of cash flows for the period
ended March 31, 2021.
The comparative statement of financial position, presented in these condensed interim un-consolidated financial statements, as at June 30, 2020 has been
extracted from the audited un-consolidated financial statements of the Company for the year ended June 30, 2020, whereas the comparative condensed
interim un-consolidated statement of profit or loss, condensed interim un-consolidated statement of comprehensive income, condensed interim un-
consolidated statement of changes in equity and condensed interim un-consolidated statement of cash flows for the period ended March 31, 2020.
These condensed interim unconsolidated financial statements do not include all the information required in annual financial statements prepared in
accordance with approved accounting standards as applicable in Pakistan, and should be read in conjunction with the un-consolidated financial statements
for the year ended June 30, 2020.
2.1 Change in accounting standards, interpretations and amendments to published approved accounting and reporting standards
(a) New standards, amendments and interpretation to published approved accounting and reporting standards which are effective during the nine
months ended March 31, 2021
There are certain amendments and an interpretation to approved accounting and reporting standards which are mandatory for the Company's annual
accounting period beginning on July 1, 2020; however, these do not have any significant impact on these unconsolidated condensed interim financial
statements.
(b) Standards, Interpretations and Amendments not yet effective

There are certain amendments and an interpretation to approved accounting and reporting standards which are mandatory for the Company's annual
accounting period beginning on January 1, 2021 and are not likely to have an material impact on the unconsolidated condensed interim financial statements.
3 ACCOUNTING ESTIMATES, JUDGEMENTS AND FINANCIAL RISK MANAGEMENT
The preparation of these condensed interim un-consolidated financial statements requires management to make estimates, assumptions and use judgments
that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgments are
continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting
estimates are recognised prospectively commencing from the period of revision. Judgments and estimates made by the management in the preparation of
these condensed interim financial statements are the same as those that were applied to financial statements as at and for the year ended June 30, 2020.
The Company's financial risk objectives and policies are consistent with those disclosed in the annual audited financial statements as at and for the year
ended June 30, 2020.
4 LONG TERM FINANCING - SECURED

Un-Audited Audited
March June
2021 2020
------------Rupees in '000------------
Opening balance 13,865,713 10,037,203
Add: Long term finance obtained during the period / year 5,243,131 4,364,980
Add: Financing for payment of salaries and wages obtain under SBP Re-finance scheme 1,293,785 546,969
Less: Fair value differential - Government grant (147,604) (85,199)
Add:Unwinding of interest 99,717 1,196
Less: Repaid during the period / year (2,972) (1,083,439)
20,351,770 13,865,713
Less: Current portion shown under current liabilities (2,160,886) (420,113)
18,190,884 13,445,600
5 LEASE LIABILITY AGAINST RIGHT-OF-USE ASSETS Un-Audited Audited

March June
2020 2020
------------Rupees in '000------------
Present value of lease payments as at July 01,2020 2,600,902 2,638,610

Less: Prepayments as at July 01, 2020 - (87,237)
2,600,902 2,551,373
Additions 1,037,069 324,079
Accretion of interest 273,621 368,205
Payments (606,306) (642,755)
As at March 31, 2021 3,305,286 2,600,902
Less: Current portion shown under current liabilities 467,121 409,199
2,838,165 2,191,703
5.1 Lease liabilities are payable as follows

Present value of
Minimum Lease payments Interest minimum lease
payments
--------------------------------Rs. 000s--------------------------------
Less than one year 845,712 378,591 467,121
Between one and 5 years 2,827,068 826,376 2,000,692
More than five years 1,071,459 233,986 837,473
4,744,239 1,438,953 3,305,286
6 TRADE AND OTHER PAYABLES
a) In the matter of charging of captive power tariff instead of Indusrty tarif rate, wherein there is no change in its status as disclosed in note 11.1.3 of the
financial statements for the year ended June 30, 2020 except that the Government has filled an appeal in the Honorable High Court and Company
has appointed a legal councel therefore.
7 CONTINGENCIES AND COMMITMENTS

Contingencies
The status of contingencies, as reported in the annual financial statements for the year ended June 30, 2020 remained unchanged during the current period
except following;
a) In the matter of Gas Infrastructure Development Cess (GIDC), there is no change in its status as disclosed in note 15.6 of the financial statements for
the year ended June 30, 2020 except that the review petition filed by the Company was dismissed. The Company alongwith several other companies
filed a suit in Honorable Sindh High Court challenging the chargeability of GIDC. The Honorable Court granted stay order and restrained Sui
Southern Gas Company (SSGC) from taking any coercive action against non-payment of installments of GIDC.
Southern Gas Company (SSGC) from taking any coercive action against non-payment of installments of GIDC.
b) In the matter of tax credit on BMR, there is no change in its status as disclosed in note 15.11 of the financial statements for the year ended June 30,
2020 except that the Company has also filed a Constitutional Petition for the tax year 2020.
Guarantees
(a) Guarantees of Rs. 1,491 million (June-2020: Rs. 1,119 million) has been issued by banks on behalf of the company which are secured by pari
passu hypothecation charge over stores and spares, stock-in-trade, trade debts and other receivables. These guarantees includes guarantees issued
by related party amounting to Rs. 1,102 million (June-2020: Rs. 938 million).
(b) Post dated cheques of Rs. 3,724 million (June-2020: Rs. 3,753 million) are issued to Custom Authorities in respect of duties on imported items
availed on the basis of consumption and export plans.
(c) Bills discounted Rs. 5,874 million (June-2020: Rs. 3,903 million).
(d) Corporate guarantee of Rs 142.6 million (June-2020: Rs. 146 million) Rs.610.7 million (June-2020: 670 million) and Rs. 138.2 million (June-2020:
152 million) have been issued to various banks in favor of subsidiary companies - GTM (Europe) Limited - UK, Gul Ahmed International FZC- UAE
and Sky Home Corporation- USA respectively.
Commitments
(a) The Company is committed for capital expenditure as at March 31, 2021 of Rs. 3,519 million (June-2020: Rs. 4,440.5million).
8 PROPERTY, PLANT AND EQUIPMENT

Un-Audited Audited
March June
2021 2021
------------Rupees in '000------------
8.1 8.2 &

Operating fixed assets 22,937,381 21,507,415
8.3
Capital work in progress (CWIP) 8.4 6,153,791 2,428,602
29,091,172 23,936,017
Un-Audited Un-Audited
Nine months ended Nine months ended
March March
2021 2020
------------Rupees in '000------------
8.1 Additions during the period
Land - 152,251
Buildings and structures on leasehold land 1,193,574 372,029
Plant and machinery 2,388,297 480,225
Furniture and fixtures 19,738 11,298
Office equipment 86,410 76,239
Vehicles 20,792 9,251
3,708,811 1,101,293
8.1.1 Additions to building and structure on leasehold land, plant and machinery, furniture and fixture and office equipment include transfers from capital
work-in-progress amounting to Rs.1,118 million, Rs. 1,400 million, Rs. 16 million and Rs. 33.1 million (March 2020: Rs. 19.6 million, Rs. 69.5 million,
Rs. Nil and Rs. Nil) respectively.
March March
2021 2020
------------Rupees in '000------------
8.2 Disposals - operating fixed assets (at net book value)
Plant and machinery 276,320 262,983

Vehicles 9,140 26,106
285,460 289,089
8.3 Depreciation charge during the period 1,993,385 1,561,283
Un-Audited
March March
2021 2020
------------Rupees in '000------------
8.4 Additions - capital work in progress (at cost)
Machinery 5,454,544 4,103,135

Building 838,712 1,372,175
6,293,256 5,475,310
Un-Audited Audited
March June
2021 2020
------------Rupees in '000------------
9 RIGHT-OF-USE ASSETS
Balance as at July 01, 2020 2,314,161 -

Recognition as at July 01, 2019 upon initial application of IFRS-16 - 2,638,610
Additions 1,037,069 324,079
Depreciation expense (505,972) (648,528)
Net book value as at March 31, 2021 2,845,258 2,314,161
Gross carrying amount as at March 31, 2021

Cost 3,999,758 2,962,689
Accumulated Depreciation (1,154,500) (648,528)
2,845,258 2,314,161
10 INTANGIBLE ASSETS
Intangible - net book value 10.1&10.2 87,920 89,568
March March
2021 2020
------------Rupees in '000------------
10.1 Additions - intangibles (at cost)
Computer Software 17,703 56,528
10.2 Amortization charge during the period 19,351 17,051
11 LONG TERM INVESTMENT

Un-Audited Audited
March June
2021 2020
------------Rupees in '000------------
Investment in Subsidiary - Gul Ahmed International Limited FZC 58,450 58,450

Investment in Subsidiary - World Wide Developers (Pvt) Limited 10.1 2,295,000 2,295,000
Investment in Term Finance Certificate 10.2 70,000 70,000
2,423,450 2,423,450
12 OTHER INCOME
This includes Rs. 240.9 million on re-measurement of contingent liability of Gas Infrastructure Development Cess.
13 CASH AND CASH EQUIVALENTS

March March
2021 2019
------------Rupees in '000------------
Cash and cash equivalents comprises of:

Cash and bank balances 757,074 962,027
Short term borrowings (26,370,086) (23,606,927)
(25,613,012) (22,644,900)
14 TAXATION
Provision for current taxation has been made on the basis of minimum tax liability and final taxation under the Income Tax Ordinance, 2001.
15 SEGMENT INFORMATION
The Company's Operations have been divided in four segments based on the nature of process and internal reporting. Following are the four reportable business segments:
a) Spinning : Production of different qualities of yarn using both natural and artificial fibers.
b) Weaving: Weaving is a method of fabric production in which two distinct sets of yarns or threads are interlaced at right angles to form a fabric.
c) Retail and On the retail front, Ideas by Gul Ahmed offers fabrics and made-ups, ranging from home accessories to clothing.
Distribution:
d) Processing, Home
Processing of greige fabrics into various types of finished fabrics for sale as well as to manufacture and sale of madeups and home textile products.
Textile and Apparel
Transactions among the business segments are recorded at cost.
15.1 Segment Profitability
Processing, Home Textile Elimination Of Inter

Spinning Weaving Retail and Distribution Total
and Apparel Segment Transactions
March-2021 March-2020 March-2021 March-2020 March-2021 March-2020 March-2021 March-2020 March-2021 March-2020 March-2021 March-2020
------------------------------------------------Rs. 000s------------------------------------------------
Sales 17,900,490 11,405,162 3,147,564 2,524,348 18,615,165 16,133,987 42,053,740 30,750,780 (18,149,597) (15,921,990) 63,567,362 44,892,287
Cost of sales 14,682,442 10,173,593 2,527,031 2,144,088 13,583,535 11,979,592 38,623,644 28,393,235 (18,149,597) (15,921,990) 51,267,055 36,768,518
Gross profit 3,218,048 1,231,569 620,533 380,260 5,031,630 4,154,395 3,430,096 2,357,545 - - 12,300,307 8,123,769
Distribution cost and Administrative
cost 181,877 135,495 87,925 82,377 3,754,637 3,403,410 2,307,691 2,182,392 - - 6,332,130 5,803,674
Profit before tax and before
charging following 3,036,171 1,096,074 532,608 297,883 1,276,993 750,985 1,122,405 175,153 - - 5,968,177 2,320,095
Finance Cost 1,546,940 1,430,081

Other operating cost 481,056 218,238
Other income (531,212) (424,673)
1,496,784 1,223,646
Taxation 1,013,506 396,897
Profit after taxation 3,457,887 699,552
Processing, Home Textile Elimination Of Inter

Spinning Weaving Retail and Distribution Total
and Apparel Segment Transactions
March-2021 March-2020 March-2021 March-2020 March-2021 March-2020 March-2021 March-2020 March-2021 March-2020 March-2021 March-2020
------------------------------------------------Rs. 000s------------------------------------------------
Depreciation and Amortisation
Expense 749,573 430,922 268,962 239,335 827,425 793,776 672,748 667,846 - - 2,518,708 2,131,879
15.2 Segment assets and liabilities
Processing, Home Textile

Spinning Weaving Retail and Distribution Unallocated Total
and Apparel
Un-Audited Audited Un-Audited Audited Un-Audited Audited Un-Audited Audited Un-Audited Audited Un-Audited Audited
March-2021 June - 2020 March-2021 June - 2020 March-2021 June - 2020 March-2021 June - 2020 March-2021 June - 2020 March-2021 June - 2020
------------------------------------------------Rs. 000s------------------------------------------------
Assets 22,317,879 17,967,254 5,486,931 4,270,692 14,579,907 12,284,442 36,101,974 31,107,650 4,268,003 3,091,157 82,754,694 68,721,195
Liabilities 10,959,391 8,264,759 4,462,246 2,758,394 6,500,223 4,815,246 12,864,104 14,273,075 30,547,643 24,646,521 65,333,607 54,757,995
Segment Capital & Intangible

Expenditure 1,875,884 4,664,705 1,787,077 618,138 111,379 466,436 2,967,403 1,377,839 692,257 513,958 7,434,000 7,641,076
15.3 Unallocated items represent those assets and liabilities which are common to all segments and these include investment in subsidiary, long term deposits, other receivables, deferred liabilities, certain common borrowing
and other corporate assets and liabilities.
15.4 Based on judgement made by management, Processing, Home Textile and Apparel segments have been aggregated into single operating segment as the segments have similar economic characteristics in respect of
nature of the products, nature of production process, type of customers, method of distribution and nature of regularity environment.
15.5 Information about major customer
Revenue from major customer whose revenue exceeds 10% of gross sales is Rs.9,906 million (March-2020: Rs. 7,696 million).
15.6 Information by geographical area
Revenue Non-current assets
Mar-21 Mar-20 Mar-21 Jun-20
-------------------Rupees in '000-------------------
Pakistan 29,613,097 20,499,235 34,759,005 29,142,798
Germany 12,929,046 8,256,761 - -
United States 6,376,048 4,161,732 - -
France 3,090,952 1,562,360 - -
Netherlands 2,951,850 2,355,188 - -
United Kingdom 1,726,602 1,516,604 - -
Italy 862,829 1,552,483 - -
Spain 432,588 644,565 - -
China 288,124 635,670 - -
Sweden 1,159,694 781,266 - -
United Arab Emirates 11,261 258,673 58,450 58,450
Other Countries 4,125,271 2,667,750
63,567,362 44,892,287 34,817,455 29,201,248
16 TRANSACTIONS AND BALANCES WITH RELATED PARTIES
The related parties comprise subsidiaries, associated companies, companies where directors also hold
directorship, directors of the company and key management personnel. The Company in the normal course of
business carried out transaction with various related parties.
Un-Audited
Relationship with Nature of transactions Mar-21 Mar-20
the Company Rupees in '000
Parent Company Dividend paid - 598,067

Subsidiaries and Sale of goods 1,582,646 1,628,147
indirect subsidiaries Sales through subsidiaries acting as agents 1,046,672 154,627
Commission paid 94,355 295,376
Rent paid 25,315
Utilities paid 3,626
Associated Companies Purchase of goods 3,086 145,580
and other related parties Sale of goods 5,266 8,608
Services rendered 5,672 -
Sale of fixed assets 2,202 -
Gain on disposal of fixed assets 183 -
Rent paid 23,747 61,581
Fees paid 2,250 2,500
Donation paid 8,000 6,000
Bills discounted 9,077,268 8,516,723
Markup and other bank charges 83,213 115,669
Company's contribution to provident fund 170,904 159,479
Dividend paid - 36,491
Un-Audited Audited
Relationship with Nature of outstanding balances Mar-21 Jun-20
the Company Rupees in '000
Subsidiary companies Long term investment 2,353,450 2,353,450
Corporate guarantee issued in favour
of subsidiary company 891,598 969,530
Trade and other payables 29,102 155,227
Accrued rent 3,067
Trade debts 1,304,290 1,437,347
Associated companies Deposit with banks 76,925 44,564
and others related parties Borrowings from Banks 1,155,807 564,694
Bank guarantee 1,102,612 938,326
Trade debts 8,946 3,743
Accrued mark-up 6,345 2,810
Loans to key management personnel
& executive 139,141 81,517
Payable to employee's provident fund 31,316 13,096
Prepaid Rent - 2,863
Prepaid fees 500 250
There are no transactions with directors of the Company and key management personnel other than under the
terms of employment for the period ending March 31, 2021 amounting to Rs. 1,157 million (2020: Rs.1,044
million) on account of remuneration.
17 FAIR VALUES
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
in the principal (or most advantageous) market at the measurement date under current market conditions (i.e. an
exit price) regardless of whether that price is directly observable or estimated using another valuation technique.
The Company while assessing fair values uses valuation techniques that are appropriate in the circumstances
using relevant observable data as far as possible and minimizing the use of unobservable inputs. Fair values are
categorized into following three levels based on the input used in the valuation techniques;
- Level 1 Quoted prices in active markets for identical assets or liabilities that can be assessed at
measurement.
- Level 2 Inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices).
- Level 3 Inputs are unobservable inputs for the asset or liability inputs for the asset or liability that are not
based on observable market data (that is, unobservable inputs).
Financial assets and liabilities of the Company are either short term in nature or are repriced periodically
therefore; their carrying amounts approximate their fair values.
Transfers, if any, between levels of the fair value hierarchy is recognized at the end of the reporting period during
which the transfer has occurred. The Company’s policy for determining when transfers between levels in the
hierarchy have occurred includes monitoring of changes in market and trading activity and changes in inputs used
in valuation techniques.
As at year end the fair value of all the financial assets and liabilities approximates to their carrying values. The
property plant and equipment is carried at cost less accumulated depreciation and impairment if any, except free-
hold land, lease-hold land and capital work in progress which are stated at cost. Long term investments represent
the investment in unquoted shares of subsidiary companies carried at cost and investment in Term Finance
Certificates carried at amortized cost. The Company does not expect that unobservable inputs may have
significant effect on fair values.
18 CORRESPONDING FIGURES
For more appropriate presentation and comparison, certain re-classification have been made in the corresponding
figures including following;
Reclassification from component Reclassification to component Amount

Rs '000
Administration cost Distribution cost
Utilities Utilities 166,935
Postage and telecommunication Postage and telecommunication 20,074
Vehicle up keep and maintenance Other expenses 20,041
Repairs and maintenance Other expenses 12,566
Other expenses Other expenses 1,953
19 EVENTS AFTER BALANCE SHEET DATE
Subsequent Appropriations
The Board of Directors of the Company in its meeting held on 27 April, 2021 has approved 10% interim cash
dividend and 20% bonus shares.
20 DATE OF AUTHORISATION
These financial statements were authorised for issue on 27 April, 2021 by the Board of Directors of the Company.
21 GENERAL
21.1 Allocations for the workers' profit participation fund, workers' welfare fund and taxation are provisional and final
liability including liability for deferred taxation will be determined on the basis of annual results.
21.2 Figures have been rounded off to the nearest thousand rupees.

Chairman Chief Executive Officer Chief Finance Officer
Textile Mills Limited
Consolidated Accounts
Consolidated Condensed Interim Financial Information
Condensed Interim Consolidated
Statement of Financial Position
As at March 31, 2021
Un-Audited Audited
March June
Note 2021 2020
Rupees in '000
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES

Authorised share capital
750,000,000 ordinary shares of Rs.10 each 7,500,000 7,500,000
Issued, subscribed and paid-up capital 4,277,946 4,277,946

427,794,630 ordinary shares of Rs. 10 each
Reserves 13,576,905 10,166,196

Equity attributable to the owners of the Holding Company 17,854,851 14,444,142
Non-controlling interest 1,888,240 1,883,317
Total equity 19,743,091 16,327,459
NON-CURRENT LIABILITIES
Long term financing - Secured 4 18,190,884 13,445,600
Lease liability against right of use assets 5 2,844,384 2,198,535
Provision for Gas Infrastructure Development Cess 1,477,457 -
Deferred liabilities
Deferred taxation 210,167 49,532
Deferred government grant 34,212 35,220
Staff gratuity 146,130 140,219
390,509 224,971
CURRENT LIABILITIES
Trade and other payables 0 13,159,828 12,310,931
Accrued mark-up/profit 348,216 405,979
Short term borrowings 26,818,799 25,995,109
Current maturity of long term financing 4 2,160,886 420,113
Current maturity of lease liability against right-of-use asset 5 467,713 411,526
Current maturity of deferred income - government grant 97,816 48,921
Unclaimed dividend 9,460 9,739
Unpaid dividend 21,103 21,103
Provision for taxation 7,127 3,792
43,090,948 39,627,213
CONTINGENCIES AND COMMITMENTS 7
85,737,273 71,823,778
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 8 29,108,231 23,951,846
Right of use Assets 9 2,853,204 2,323,849
Investment Property 4,599,000 4,599,000
Intangible assets 10 223,281 232,449
Long Term investment 11 70,000 70,000
Long term loans and advances 65,478 59,830
Long term deposits 311,443 388,669
Deferred taxation 3,667 3,801
37,234,304 31,629,444
CURRENT ASSETS
Stores and spares 2,357,921 2,047,067
Stock-in-trade 27,637,457 26,653,635
Trade debts 10,873,621 5,150,748
Loans, advances and other receivables 2,782,464 1,362,721
Short term prepayments 222,106 270,346
Receivable from Government 2,771,980 2,804,316
Taxation - net 891,068 1,132,621
Cash and bank balances 13 966,352 772,880
48,502,969 40,194,334
85,737,273 71,823,778
The annexed notes from 1 to 20 form an integral part of these condensed interim consolidated financial statements.

Statement of Profit or Loss
Un-Audited
Nine Months Ended Quarter Ended
Note July to July to January to January to
2021 2020 2021 2020
----------------Rupees in '000---------------------
Sales - net 65,047,288 46,553,226 22,413,214 14,722,054
Cost of sales 52,378,913 38,055,113 17,593,202 12,768,863

Gross profit 12,668,375 8,498,113 4,820,012 1,953,191
Distribution cost 4,360,355 3,568,201 1,572,622 1,147,640

Administrative cost 2,266,884 2,711,686 802,378 858,651
Other operating cost 481,056 218,238 95,681 40,235
7,108,295 6,498,125 2,470,681 2,046,526
5,560,080 1,999,988 2,349,331 (93,335)
Other income 12 576,450 453,892 100,835 334,092
Operating profit 6,136,530 2,453,880 2,450,166 240,757
Finance cost 1,520,684 1,439,313 360,988 509,706
Profit before taxation 4,615,846 1,014,567 2,089,178 (268,949)
Taxation
- Current 14 843,720 481,285 361,968 183,731
- Deferred 175,000 (83,368) 16,071 -
1,018,720 397,917 378,039 183,731
Attributable to:
Equity holders of Parent Company 3,592,203 - 1,711,101 -
Non-controlling interest holders 4,923 - 38 -
3,597,126 - 1,711,139 -
Earning per share - basic and diluted (Rs.) 8.41 1.44 4.00 (1.06)
Re-stated Re-stated

Statement of Comprehensive Income
Un-Audited
Nine Months Ended Quarter Ended
July to July to January to January to
2021 2020 2021 2020
----------------Rupees in '000-------------------------
Other comprehensive income for the period
Items that will be reclassified to profit and loss account subsequently - -
Exchange difference on translation of foreign subsidiaries (181,494) 17,700 (45,071) 34,641
Total comprehensive income 3,415,632 634,350 1,666,068 (418,039)
Attributable to:
Equity holders of Parent Company 3,410,709 - 1,666,030 -
Non-controlling interest holders 4,923 - 38 -
3,415,632 - 1,666,068 -

Statement of Changes in Equity
Reserves
Revenue reserve
Total equity
Capital Exchange Statutory
attributable to Non-
Share capital reserve - difference on reserve Total
General Unappropriated the owners of Controlling
Share translation of created by
Reserve profit Holding Interest
Premium foreign foreign
Company
subsidiaries subsidiary
-------------------------------------------------------------------------------------------------Rupees '000-----------------------------------------------------------------------------
Balance as at June 30, 2019 (Audited) 3,564,955 1,405,415 - 285,542 19,827 10,607,627 12,318,411 15,883,366
Transfer to unappropriated profit - - - - - - - -
Transaction with owners

Final dividend for the year ended June 30, 2019 - - - - - (891,239) (891,239) - (891,239)
Issuance of bonus shares 712,991 (712,991) (712,991) - -
Total comprehensive income for nine months

ended March 31, 2020 (un-audited)
Profit after taxation - - - - - 616,650 616,650 616,650

Other comprehensive loss - - - 17,700 - - 17,700 17,700
- - - 17,700 - 616,650 634,350 634,350
Balance as at December 31, 2019 (Un-Audited) 4,277,946 692,424 - 303,242 19,827 10,333,038 11,348,531 - 15,626,477
Non-Controlling Interest on business combination - - - - - - - 1,883,317 1,883,317
Total comprehensive (loss) / income

Profit after taxation - - - - - (1,242,412) (1,242,412) (1,242,412)
Other comprehensive income - - - 59,486 - 591 60,077 60,077
- - - 59,486 - (1,241,821) (1,182,335) (1,182,335)

Balance as at June 30, 2020 4,277,946 692,424 - 362,728 19,827 9,091,217 10,166,196 1,883,317 16,327,459
Transactions with owners
Total comprehensive income for nine months

ended March 31, 2021 (un-audited)
- -
Profit after taxation - - - - - 3,592,203 3,592,203 4,923 3,597,126

Other comprehensive Income - - - (181,494) - - (181,494) - (181,494)
- - - (181,494) - 3,592,203 3,410,709 3,415,632

Balance as at March 31, 2021 (Un-Audited) 4,277,946 692,424 - 181,234 19,827 12,683,420 13,576,905 1,888,240 19,743,091

Chairman Chief Executive Chief Financial Officer
Un-Audited
Nine Months Ended
July to July to
Note March March
2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES -----------Rupees in '000-----------
Adjustments for:
Depreciation on property, plant and equipment 1,995,283 1,563,088
Depreciation on right-of-use assets 507,714 553,546
Amortisation 26,872 23,896
Provision for gratuity 51,793 116,874
Finance cost 1,242,108 1,162,741
Interest on lease liability against right-of-use asset 278,576 276,572
Provision for slow moving/obsolete stores
spares and loose tools 18,874 17,179
Expected credit losses against doubtful trade debts 71,452 -
Gain on disposal of property, plant and equipment (90,246) (30,969)
Loss on disposal of property, plant and equipment 173,649 125,315
Property, plant and equipment scrapped / written off - -
4,276,075 3,808,242
Cash flows from operating activities before adjustments of

working capital 8,891,921 4,822,809
Changes in working capital:

Increase/(decrease) in current assets
Stores and spares (329,728) (308,011)
Stock-in-trade (983,822) (2,560,106)
Trade debts (5,794,325) 21,913
Loans, advances and other receivables (1,419,743) (1,210,726)
Short term prepayments 48,240 (340,578)
Refunds due from Government 32,336 (1,190,925)
(8,447,042) (5,588,433)
Increase in current liabilities
Trade and other payables 2,326,354 4,177,943
(6,120,688) (1,410,490)
Cash generated from operations before adjustment of following 2,771,233 3,412,319
Adjustment for:
Gratuity paid (45,882) (41,985)
Finance cost paid (1,299,871) (1,430,289)
Income tax paid or deducted (613,063) (512,907)
(Increase)/Decrease in long term loans and advances (5,648) 2,644
Decrease/(Increase) in long term deposits 77,226 (13,318)
(1,887,238) (1,995,855)
Net Cash generated from Operating activities 883,995 1,416,464
CASH FLOWS FROM INVESTING ACTIVITIES
Addition to property, plant and equipment (7,437,128) (6,295,243)

Addition to intangible assets (17,703) (63,611)
Proceeds from sale of property, plant and equipment 202,056 191,105
Long term investments made during the period - (1,069,886)
Net cash used in investing activities (7,252,775) (7,237,635)
Balance carried forward (6,368,780) (5,821,171)
Un-Audited
Nine Months Ended
July to July to
Note March March
2021 2020
-----------Rupees in '000-----------
Balance brought forward (6,368,780) (5,821,171)
CASH FLOWS FROM FINANCING ACTIVITIES
Long term financing obtained 6,536,916 3,747,071

Long term financing repaid (2,972) (904,897)
Payments against lease liability against right of use asset (613,609) (356,488)
Dividend paid (279) (891,914)
Net cash generated from/(used in) financing activities 5,920,056 1,593,772

Exchange difference on translation of foreign subsidiaries (181,494) 17,700
Net decrease in cash and cash equivalents (630,218) (4,209,699)
Cash and cash equivalents - at the beginning of the period (25,222,229) (18,440,586)
Cash and cash equivalents - at the end of the period 13 (25,852,447) (22,650,285)
The annexed notes from 1 to 20 form an integral part of these condensed interim consolidated financial
statements.

Notes to the Condensed Interim Consolidated
Financial Statements (Un-audited)
1 LEGAL STATUS AND ITS OPERATIONS
1.1 Gul Ahmed Group ( "the Group") comprises the following:
- Gul Ahmed Textile Mills Limited

- Gul Ahmed International Limited (FZC) - UAE
- GTM (Europe) Limited - UK
- GTM USA Corp. - USA
- Sky Home Corp.- USA
- Vantona Home Limited
- JCCO 406 Limited
- Worldwide Developers (Pvt) Limited
Gul Ahmed Textile Mills Limited (The Holding Company) was incorporated on 1st April 1953 in Pakistan as a private limited company, converted into public limited
company on 7th January 1955 and was listed on Karachi and Lahore Stock Exchanges in 1970 and 1971 respectively. The Holding Company is a composite
textile mill and is engaged in the manufacture and sale of textile products.
The Holding Company's registered office is situated at Plot No. 82, Main National Highway, Landhi, Karachi.
Gul Ahmed International Limited (FZC) -UAE is a wholly owned subsidiary of Gul Ahmed Textile Mills Limited, GTM (Europe) Limited is a wholly owned subsidiary
of Gul Ahmed International Limited (FZC) - UAE and GTM USA Corp., Sky Home Corp., Vantona Home Ltd. and JCCO 406 Ltd. are wholly owned subsidiaries of
GTM (Europe) Limited.
The Group is a subsidiary of Gul Ahmed Holdings (Private) Limited and owns 66.78% shares of the Group.
1.2 Basis of consolidation
The financial information include the financial information of the Group.
Subsidiary companies are consolidated from the date on which more than 50% voting rights are transferred to the Holding Company or power to govern the
financial and operating policies over the subsidiary and is excluded from consolidation from the date of disposal or cessation of control.
The financial statements of the subsidiaries are prepared for the same reporting period as the Holding Company, using consistent accounting policies.
The assets and liabilities of the subsidiary company have been consolidated on a line-by-line basis and the carrying value of investment held by the Company is
eliminated against the subsidiary's share capital. All intra-group balances and transactions are eliminated.
Details of Subsidiaries
Country of %of
Name Date of Incorporation
Incorporation Holding
Gul Ahmed International Limited FZC December 11, 2002 U.A.E 100%
GTM (Europe) Limited - Indirect subsidiary April 17, 2003 U.K 100%
GTM USA - Indirect subsidiary March 19, 2012 U.S.A 100%
Sky Home- Indirect Subsidiary February 28, 2017 U.S.A 100%
Vantona Home Limited-Indirect Subsidiary April 22, 2013 U.K 100%
JCCO 406 Limited-Indirect Subsidiary September 29, 2017 U.K 100%
Worldwide Developers (Pvt) Limited-Direct Pakistan 54.84%
December 22, 2014
subsidiary
All subsidiaries are engaged in distribution/trading of textile related products except for Worldwide Developers (Pvt) Limited which was incorporated to carry on
real estate business and currently it has rented out certain portion of its property to the Company for warehousing purpose.
1.3 Addresses of all lands owned by the Group are as follows;
Unit Area Address

Unit 1,2 & 3 25.07 Acres Plot No. HT-4, Landhi Industrial Area, Landhi Karachi
Unit 4 & 5 14.9 Acres Survey No.82, Deh Landhi ,Karachi
Unit 6,7 & 8 18.56 Acres Plot No. H-7, Landhi Industrial Area, Landhi, Karachi
MTF Plot 44.04 acres P.U. No. 48, 49, 50, & 51, Near Machine Tool Factory
Deh Khanto Tapo Landhi, Karachi
Plot 2 Kanal,19 Plot No. 24-A, C-III, Gulberg Lahore
Marlas and
153.5 Sq. Feet
Plot 4,023.16 Sq. yards Plot No. H-19/1, Landhi Industrial Area, Landhi Township, Karachi
1.4 Geographical locations and addresses of all factory building on rented premises are as follows;
Address
Plot# 369, Main National Highway, Landhi, Karachi
Plot# HT/3A,KDA Scheme 3, Landhi Industrial area, Karachi
Plot# ST-17/1 and ST-17/3, Federal 'B' Area, Azizabad, Karachi
Plot# HT/8,KDA Scheme 3, Landhi Industrial area, Karachi
Plot# 12, Sector 23, Korangi Industrial area, Karachi
295 5th ave, suit 702, NewYork - NY - 10016
Grane Road Mill, Grane Road, Haslingden, BB4 5ES
1.5 As at March 31, 2021, the Group has 64 retail outlets, 30 fabric stores, 3 fair price shops, 4 whole sale shops and 6 franchises (June-2020:64 retail outlets, 29
fabric stores, 2 fair price shops, 5 whole sale shops and 6 franchises).
2 BASIS OF PREPARATION
The condensed interim consolidated financial information comprise the consolidated statement of Financial Position of Gul Ahmed Textile Mills Limited, its direct
subsidiary Worldwide Developers (Pvt.) Limited and its wholly owned subsidiary company Gul Ahmed International Limited (FZC), GTM (Europe) Limited which is
the wholly owned subsidiary of Gul Ahmed International Limited (FZC), GTM USA Corporation which is the wholly owned subsidiary of GTM (Europe) Limited, Sky
Home Corporation which is the wholly owned subsidiary of GTM (Europe) Limited, Vantona Home Limited which is the wholly owned subsidiary of GTM (Europe)
Limited and JCCO 406 Limited which is the wholly owned subsidiary of GTM (Europe) Limited as at March 31, 2021 and the related consolidated statement of
profit or loss, consolidated statement of cash flows and consolidated statement of changes in equity together with the notes forming part thereof for the period
then ended. The financial statements of the subsidiary companies have been consolidated on a line by line basis.
These condensed interim consolidated financial statements of the Group have been prepared in accordance with the accounting and reporting standards as
applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:
- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by International Accounting Standard Board (IASB) as notified under the
Companies Act, 2017; and
- Provisions of and directives issued under the Companies Act, 2017.
Where provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under
the Companies Act, 2017 have been followed.
These condensed interim consolidated financial statements comprise of the condensed interim consolidated statement of Financial Position as at March 31, 2021
and the condensed interim consolidated statement of profit or loss, condensed interim consolidated statement of comprehensive income, condensed interim
consolidated statement of cash flows and condensed interim consolidated statement of changes in equity for the nine months ended March 31, 2021.
The comparatives statement of Financial Position, presented in these condensed interim consolidated financial statements, as at June 30, 2020 has been
extracted from the audited financial statements of the Group for the year ended June 30, 2020 whereas the comparative condensed interim consolidated
statement of profit or loss, condensed interim consolidated statement of comprehensive income, condensed interim consolidated statement of cash flows and
condensed interim consolidated statement of changes in equity for the nine months ended March 31, 2021 have been extracted from the condensed interim
consolidated financial statements of the Group for the nine months ended March 31, 2020.
These condensed interim consolidated financial statements do not include all the information required in annual financial statements prepared in accordance with
approved accounting standards as applicable in Pakistan, and should be read in conjunction with the consolidated financial statements for the year ended June
30, 2020.
2.1 Change in accounting standards, interpretations and amendments to published approved accounting and reporting standards
(a) New standards, amendments and interpretation to published approved accounting and reporting standards which are effective during the nine
months ended March 31, 2021
There are certain amendments and an interpretation to approved accounting and reporting standards which are mandatory for the Group's annual accounting
period beginning on July 1, 2020; however, these do not have any significant impact on these consolidated condensed interim financial statements hence not
detailed.
(b) Standards, Interpretations and Amendments not yet effective

There are certain amendments and an interpretation to approved accounting and reporting standards which are mandatory for the Holding Company's annual
accounting period beginning on January 1, 2021 and are not likely to have an material impact on the consolidated condensed interim financial statements.
3 ACCOUNTING ESTIMATES, JUDGEMENTS AND FINANCIAL RISK MANAGEMENT
The preparation of this condensed interim consolidated financial statements requires management to make estimates, assumptions and use judgments that affect
the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgments are continually
evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting estimates are
recognised prospectively commencing from the period of revision. Judgments and estimates made by the management in the preparation of this condensed
interim financial statements are the same as those that were applied to financial statements as at and for the year ended June 30, 2020.
The Group's financial risk objectives and policies are consistent with those disclosed in the annual audited financial statements as at and for the year ended June
30, 2020.
Un-Audited Audited
March June
2021 2020
4 LONG TERM FINANCING - SECURED ----------------Rupees in '000----------------
Opening balance 13,865,713 10,037,203

Add: Obtained during the period / year 5,243,131 4,364,980
Add: Financing for payment of salaries and wages under SBP Re-finance scheme 1,293,785 546,969
Less: Fair value differential - Government grant (147,604)
Add:Unwinding of interest 99,717
Less: Repaid during the period / year (2,972) (1,083,439)
20,351,770 13,865,713
Less: Current portion shown under current liabilities (2,160,886) (262,370)

18,190,884 13,445,600
5 LEASE LIABILITY AGAINST RIGHT OF USE ASSETS

Un-Audited Audited
March June
2021 2020
----------------Rupees in '000----------------
Present value of lease payments as at July 01,2020 2,610,061 2,650,039

Less: Prepayments as at July 01, 2020 529 (87,954)
2,610,590 2,562,085
Additions 1,037,069 324,079
Accretion of interest 273,844 368,465
Payments (609,406) (644,568)
As at March 31, 2021 3,312,097 2,610,061
Less: Current portion shown under current liabilities 467,713 411,526
2,844,384 2,198,535
5.1 Lease liabilities are payable as follows
Present value of
Minimum Lease
Interest minimum lease
payments
payments
--------------------------------Rs. 000s--------------------------------
Less than one year 848,104 378,822 469,282
Between one and 5 years 2,831,949 826,607 2,005,342
More than five years 1,071,459 233,986 837,473
4,751,512 1,439,415 3,312,097
6 TRADE AND OTHER PAYABLES
a) In the matter of charging of captive power tariff instead of Indusrty tarif rate, wherein there is no change in its status as disclosed in note 11.1.3 of the
consolidated financial statements for the year ended June 30, 2020 except that the Government has filled an appeal in the Honorable High Court
and Holding Company has appointed a legal councel therefore.
7 CONTINGENCIES AND COMMITMENTS
Contingencies
The status of contingencies, as reported in the annual financial statements for the year ended June 30, 2020 remained unchanged during the current period
except following;
a) In the matter of Gas Infrastructure Development Cess (GIDC), there is no change in its status as disclosed in note 15.6 of the consolidated financial
statements for the year ended June 30, 2020 except that the review petition filed by the Holding Company was dismissed. The Holding Company
alongwith several other companies filed a suit in Honorable Sindh High Court challenging the chargeability of GIDC. The Honorable Court granted
stay order and restrained Sui Southern Gas Company (SSGC) from taking any coercive action against non-payment of installments of GIDC.
b) In the matter of tax credit on BMR, there is no change in its status as disclosed in note 15.11 of the consolidated financial statements for the year
ended June 30, 2020 except that the Holding Company has also filed a Constitutional Petition for the tax year 2020.
Gurarantees
(a) Guarantees of Rs. 1,491 million (June-2020: Rs. 1,119 million) has been issued by banks on behalf of the company which are secured by pari
passu hypothecation charge over stores and spares, stock-in-trade, trade debts and other receivables. These guarantees includes guarantees
issued by related party amounting to Rs. 1,102 million (June-2020: Rs. 938 million).
(b) Post dated cheques of Rs. 3,724 million (June-2020: Rs. 3,753 million) are issued to Custom Authorities in respect of duties on imported items
availed on the basis of consumption and export plans.
(c) Bills discounted Rs. 5,874 million (June-2020: Rs. 3,903 million).
(d) Corporate guarantee of Rs 142.6 million (June-2020: Rs. 146 million) Rs.610.7 million (June-2020: 670 million) and Rs. 138.2 million (June-2020:
152 million) have been issued to various banks in favor of subsidiary companies - GTM (Europe) Limited - UK, Gul Ahmed Internation FZC- UAE and
Sky Home Corporation- USA respectively.
Commitments
(a) The Group is committed for capital expenditure as at March 31, 2021 of Rs. 3,519 million (June-2020: Rs. 4,440.5million).
Note Un-Audited Audited

March June
2021 2020
Rupees in '000
8 PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets 8.1 & 8.2 22,954,440 21,523,244

Capital work in progress (CWIP) 8.4 6,153,791 2,428,602
29,108,231 23,951,846
Note Un-Audited
Nine Months ended Nine Months ended
March March
2021 2020
Rupees in '000
8.1 Additions during the period
Land - 152,251
Buildings and structures on leasehold land 1,193,574 183,110
Plant and machinery 2,388,297 331,844
Furniture and fixtures 19,738 4,819
Office equipment 86,410 46,763
Vehicles 20,792 3,325
3,708,811 722,112
8.1.1 Additions to building and structure on leasehold land, plant and machinery, furniture and fixture and office equipment include transfers from capital
work-in-progress amounting to Rs.1,118 million, Rs. 1,400 million, Rs. 16 million and Rs. 33.1 million (March 2020: Rs. 19.6 million, Rs. 69.5 million,
Rs. Nil and Rs. Nil) respectively.
Un-Audited
March March
2021 2020
Rupees in '000
8.2 Disposals - operating fixed assets (at net book value)
Plant and machinery 276,320 126,717

Vehicles 9,140 22,072
285,460 148,789
8.2.1 Disposals include assets scrapped/written off at Net book value during the period of Rs. 24.3 million (2019: Rs. Nil).
Note Un-Audited
March March
2021 2020
Rupees in '000
8.3 Depreciation charge during the period 1,995,283 1,563,088
8.4 Additions - capital work in progress (at cost)
Machinery 5,454,544 2,191,346

Building 838,712 736,801
6,293,256 2,928,147
Un-Audited Audited
March June
2021 2020
Rupees in '000
9 RIGHT OF USE ASSETS
Recognition as at July 01,2020 2,323,849 2,650,039
Additions 1,037,069 324,079

Depreciation expense (507,714) (650,814)
Foreign currency retranslation diffrence - 545
Net book value as at March 31, 2021 2,853,204 2,323,849
Gross carrying amount as at March 31, 2021

Cost 4,009,446 2,974,118
Accumulated Depreciation (1,156,242) (650,814)
Foreign currency retranslation diffrence - 545
2,853,204 2,323,849
10 INTANGIBLE ASSETS
Intangible - net book value 10.1 & 10.2 223,281 232,449

223,281 232,449
Un-Audited
March March
2021 2020
Rupees in '000
10.1 Additions - intangibles (at cost)
Computer Software 17,703 63,611
10.2 Amortisation charge during the period 26,872 23,896
11 LONG TERM INVESTMENT

Un-Audited Audited
March June
2021 2021
Rupees in '000
Investment in Term Finance Certificate 0.0 70,000 70,000

70,000 70,000
12 OTHER INCOME
This includes Rs. 240.9 million on re-measurement of contingent liability of Gas Infrastructure Development Cess.
Un-Audited
March March
2021 2020
13 CASH AND CASH EQUIVALENTS Rupees in '000
Cash and cash equivalents comprises of:
Cash and bank balances 966,352 1,084,241

Short term borrowings (26,818,799) (23,734,526)
(25,852,447) (22,650,285)
14 TAXATION
Provision for current taxation has been made on the basis of normal tax liability, final taxation, tax credit and separate block income under the Income Tax
Ordinance, 2001.
15 SEGMENT INFORMATION
The Group's Operations have been divided in four segments based on the nature of process and internal reporting. Following are the four reportable business segments:
a) Spinning : Production of different qualities of yarn using both natural and artificial fibers.
b) Weaving: Weaving is a method of fabric production in which two distinct sets of yarns or threads are interlaced at right angles to form a fabric.
c) Retail and Distribution: On the retail front, Ideas by Gul Ahmed offers fabrics and made-ups, ranging from home accessories to clothing.
d) Processing, Home Textile and Apparel; Processing of greige fabric into various types of finished fabrics for sale as well as to manufacture and sale of made-ups and home textile products.
e) Subsidiary Companies.: All subsidiaries are engaged in distribution/trading of textile related products except for worldwide Developers (Pvt) Limited which was incorporated to carry on real estate business and currently it has rented out certain portion of its property to the Company for warehousing purpose.
Transactions among the business segments are recorded at cost.
15.1 Segment profitability
Processing, Home Textile Gul Ahmed International Worldwide Developers Elimination Of Inter
Spinning Weaving Retail and Distribution GTM (Europe) Limited - UK JCCO 406 Ltd. Vantona Home Ltd. GTM USA Corp. SKY Home Corporation Total
and Apparel Limited (FZC)-UAE (Private) Limited Segment Transactions
Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020
-------------------------------------------------------------------------------------------------Rupees '000-----------------------------------------------------------------------------
Sales 17,900,490 11,405,162 3,147,564 2,524,348 18,615,165 16,133,987 42,053,740 30,750,780 336,431 344,658 1,633,741 1,650,653 - - 190,698 127,318 - 9,288 899,427 1,157,169 - - (19,539,270) (17,422,819) 65,047,288 46,553,226
Cost of sales 14,682,442 10,173,593 2,527,031 2,144,088 13,583,535 11,979,592 38,623,644 28,393,235 313,518 287,906 1,514,996 1,540,783 - - 147,941 106,170 - 8,360 857,013 969,948 - - (19,723,266) (17,442,392) 52,378,913 38,055,113
Gross profit 3,218,048 1,231,569 620,533 380,260 5,031,630 4,154,395 3,430,096 2,357,545 22,913 56,752 118,745 109,870 - - 42,757 21,148 - 928 42,414 187,221 - 183,996 19,573 12,668,375 8,498,113
Distribution costs and administrative costs 181,877 135,495 87,925 82,377 3,754,637 3,403,410 2,307,691 2,182,392 49,949 57,422 97,227 107,577 - - 39,969 61,447 1,933 255 119,781 249,512 11,522 - (25,272) 61,447 6,627,239 6,279,887
Profit/(loss) before tax and before

charging the following 3,036,171 1,096,074 532,608 297,883 1,276,993 750,985 1,122,405 175,153 (27,036) (670) 21,518 2,293 - - 2,788 (40,299) (1,933) 673 (77,367) (62,291) (11,522) - 209,268 (41,874) 6,041,136 2,218,226
Other operating costs 481,056 218,238

Other income (576,450) (453,892)
Finance costs 1,520,684 1,439,313
1,425,290 1,203,659
Taxation 1,018,720 397,917
Profit after taxation 3,597,126 616,650
Processing, Home Textile Gul Ahmed International Worldwide Developers Elimination Of Inter
Spinning Weaving Retail and Distribution GTM (Europe) Limited - UK JCCO 406 Ltd. Vantona Home Ltd. GTM USA Corp. SKY Home Corporation Total
and Apparel Limited (FZC)-UAE (Private) Limited Segment Transactions
Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020 Mar-2021 Mar-2020
-------------------------------------------------------------------------------------------------Rupees '000-----------------------------------------------------------------------------
Depreciation and Amortisation 749,573 430,922 268,962 239,335 827,425 793,776 672,748 667,846 4,744 3,138 378 272 - - 5,002 4,601 - - 1,037 640 - - - - 2,529,869 2,140,530
Expense
15.2 Segment assets and liabilities
Processing, Home Textile Gul Ahmed International Worldwide Developers

Spinning Weaving Retail and Distribution GTM (Europe) Limited - UK JCCO 406 Ltd. Vantona Home Ltd. GTM USA Corp. SKY Home Corporation Unallocated Total Group
and Apparel Limited (FZC)-UAE (Private) Limited
Un-Audited Audited Un-Audited Audited Un-Audited Audited Un-Audited Audited Un-Audited Audited Un-Audited Audited Un-Audited Audited Un-Audited Audited Un-Audited Audited Un-Audited Audited Un-Audited Audited Un-Audited Audited
Mar-2021 June - 2020 Mar-2021 June - 2020 Mar-2021 June - 2020 Mar-2021 June - 2020 Mar-2021 June - 2020 Mar-2021 June - 2020 Mar-2021 June - 2020 Mar-2021 June - 2020 Mar-2021 June - 2020 Mar-2021 June - 2020 Mar-2021 June - 2020 Mar-2021 June - 2020 Mar-2021 June - 2020
-------------------------------------------------------------------------------------------------Rupees '000-----------------------------------------------------------------------------
Assets 22,317,879 17,967,254 5,486,931 4,270,692 14,579,907 12,284,442 36,101,974 31,107,650 518,626 409,767 910,240 738,578 73,584 72,467 447,972 463,763 8,072 15,029 234,142 708,504 4,442,627 4,430,537 4,084,356 3,091,900 89,206,309 75,560,583
Elimination of intragroup balances (3,469,036) (3,736,805)
85,737,273 71,823,778
Liabilities 10,959,391 8,264,759 4,462,246 2,758,394 6,500,223 4,815,246 12,864,104 14,273,075 59,312 47,290 1,065,158 1,327,259 - - 186,419 109,668 1,383 13,333 148,398 428,544 454,943 453,754 30,547,642 24,660,886 67,249,220 57,152,208
Elimination of intragroup balances (1,255,038) (1,655,889)
65,994,182 55,496,319
Segment Capital Expenditure 1,875,884 4,664,705 1,787,077 618,138 111,379 466,436 2,967,403 1,377,839 3,128 2,046 - 1,078 - - - - - - - 6,802 - - 709,960 513,958 7,454,831 7,651,002
15.3 Unallocated items represent those assets and liabilities which are common to all segments and these include long term deposits, other receivables, deferred liabilities, certain common borrowing and other corporate assets and liabilities.
15.4 Based on judgement made by management, Processing, Home Textile and Apparel segments have been aggregated into single operating segment as the segments have similar economic characteristics in respect of nature of the products, nature of production process, type of customers, method of distribution and nature of regularity environment.
15.5 Information about major customer

Revenue from major customer whose revenue exceeds 10% of gross sales is Rs.9,906 million (March-2020: Rs. 7,696 million).
15.6 Information by geographical area
Revenue Non-current assets

For the nine months ended
Un-Audited Audited
(Un-audited)
Mar - 2021 Mar - 2020 Mar - 2021 Jun - 2020
--------------------Rupees in '000---------------------
Pakistan 29,613,097 20,499,235 37,081,914 31,447,050

Germany 12,929,046 8,256,761 - -
United States 7,132,220 5,229,828 5,089 9,988
Netherlands 2,951,850 2,355,188 - -
Italy 862,829 1,552,483 - -
United Kingdom 2,145,883 1,808,351 119,283 125,408
Spain 432,588 644,565 - -
France 3,090,952 1,562,360 - -
Sweden 1,159,694 781,266 - -
China 288,124 635,670 - -
United Arab Emirates 315,734 559,769 28,018 46,998
Other Countries 4,125,271 2,667,750 - -
Total 65,047,288 46,553,226 37,234,304 31,629,444
16 TRANSACTIONS AND BALANCES WITH RELATED PARTIES
The related parties comprise subsidiaries, associated companies, companies where directors also hold directorship,
directors of the Group and key management personnel. The Group in the normal course of business carried out
transaction with various related parties.
Un-Audited
Mar - 2021 Mar - 2020
Relationship with Nature of transactions Rupees in '000
the Group
Associated Companies Purchase of goods 3,086 145,580

and other related parties Sale of goods 5,266 8,608
Sale of services rendered 5,672 -
Sale of fixed assets 2,202 -
Gain on disposal of fixed assets 183 -
Rent paid 23,747 61,581

Fees paid 2,250 2,500
Donation paid 8,000 6,000
Bills discounted 9,077,268 8,516,723
Markup and other bank charges 83,213 115,669
Holding Company's contribution to
provident fund 170,904 159,479
Dividend paid - 36,491
Relationship with Nature of outstanding balances Un-Audited Audited

the Group Mar - 2021 Jun - 2020
Rupees in '000
Associated companies Deposit with banks 76,925 44,564

and others related parties Borrowings from Banks 1,155,807 564,694
Bank guarantee 1,102,612 938,326
Trade debts 8,946 3,743
Accrued mark-up 6,345 2,810
Loans to key management personnel
& executive 139,141 81,517
Payable to Holding Company's
employee's provident fund 31,316 13,096
Prepaid Rent - 2,863
Prepaid fees 500 250
There are no transactions with directors of the Holding Company and key management personnel other than under
the terms of employment for the period ending March 31, 2021 amounting to Rs.1,213 million (March 31, 2020:
Rs.1,254 million) on account of remuneration.
17 FAIR VALUES
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in
the principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit
price) regardless of whether that price is directly observable or estimated using another valuation technique.
The Holding Company while assessing fair values uses valuation techniques that are appropriate in the
circumstances using relevant observable data as far as possible and minimizing the use of unobservable inputs. Fair
values are categorized into following three levels based on the input used in the valuation techniques;
- Level 1 Quoted prices in active markets for identical assets or liabilities that can be assessed at
measurement.
- Level 2 Inputs other than quoted prices included within level 1 that are observable for the asset or
liability, either directly (that is, as prices) or indirectly (that is, derived from prices).
- Level 3 Inputs are unobservable inputs for the asset or liability inputs for the asset or liability that are
not based on observable market data (that is, unobservable inputs).
Financial assets and liabilities of the Holding Company are either short term in nature or are repriced periodically
therefore; their carrying amounts approximate their fair values.
Transfers, if any, between levels of the fair value hierarchy is recognized at the end of the reporting period during
which the transfer has occurred. The Holding Company’s policy for determining when transfers between levels in the
hierarchy have occurred includes monitoring of changes in market and trading activity and changes in inputs used in
valuation techniques.
As at year end the fair value of all the financial assets and liabilities approximates to their carrying values. The
property plant and equipment is carried at cost less accumulated depreciation and impairment if any, except free-
hold land, lease-hold land and capital work in progress which are stated at cost. Long term investments in
subsidiaries represent the investment in unquoted shares of companies carried at cost. The Holding Company does
not expect that unobservable inputs may have significant effect on fair values.
18 CORRESPONDING FIGURES
For better presentation and due to revisions in the Companies Act 2017, certain re-classification have been made in
the corresponding figures including following;
Reclassification from component Reclassification to component Amount

Rs '000
Administration cost Distribution cost

Utilities Utilities 166,935
Postage and telecommunication Postage and telecommunication 20,074
Vehicle up keep and maintenance Other expenses 20,041
Repairs and maintenance Other expenses 12,566
Other expenses Other expenses 1,953
19 EVENTS AFTER BALANCE SHEET DATE
Subsequent Appropriations
The Board of Directors of the Company in its meeting held on 27 April, 2021 has approved 10% interim cash
dividend and 20% bonus shares.
20 DATE OF AUTHORISATION
These financial statements were authorised for issue on 27 March, 2021 by the Board of Directors of the Group.
21 GENERAL
21.1 Allocations for the workers' profit participation fund, workers' welfare fund and taxation are provisional and final
liability including liability for deferred taxation will be determined on the basis of annual results.
21.2 Figures have been rounded off to the nearest thousand rupees.


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Textile Mills Limited

Condensed Interim Financial Information

CHIEF FINANCIAL OFFICER Abdul Aleem

COMPANY SECRETARY Salim Ghaffar

AUDIT COMMITTEE Ehsan A. Malik - Chairman & Member

HUMAN RESOURCE AND Ehsan A. Malik - Chairman & Member

BANKERS Allied Bank Limited

AUDITORS Kreston Hyder Bhimji & Co.

INTERNAL AUDITORS Grant Thornton Anjum Rahman

LEGAL ADVISORS A.K. Brohi & Co

REGISTERED OFFICE Plot No.82,

SHARE REGISTRAR FAMCO Associates (Private) Limited

MILLS Landhi Industrial Area,

CONSOLIDATED FINANCIAL STATEMENTS

Mohomed Bashir Mohammad Zaki

April 27, 2021

Issued, subscribed and paid-up capital 4,277,946 4,277,946

Reserves 13,143,141 9,685,254

CONTINGENCIES AND COMMITMENTS 7

MOHOMED BASHIR MOHAMMED ZAKI BASHIR ABDUL ALEEM

Sales - net 63,567,362 44,892,287 21,971,829 14,237,998

Cost of sales 51,267,055 36,768,518 17,255,035 12,324,644

Distribution costs 4,333,999 3,762,968 1,556,612 1,210,271

Other income 12 531,212 424,673 97,967 351,683

Operating profit 6,018,333 2,526,530 2,456,552 276,067

Finance cost 1,546,940 1,430,081 389,024 507,197

Profit before taxation 4,471,393 1,096,449 2,067,528 (231,130)

MOHOMED BASHIR MOHAMMED ZAKI BASHIR ABDUL ALEEM

Profit after taxation 3,457,887 699,552 1,691,643 (369,778)

Other comprehensive income - - - -

Total comprehensive income 3,457,887 699,552 1,691,643 (369,778)

MOHOMED BASHIR MOHAMMED ZAKI BASHIR ABDUL ALEEM

Profit before taxation 4,471,393 1,096,449

Changes in working capital:

CASH FLOWS FROM INVESTING ACTIVITIES

Addition to property, plant and equipment (7,434,000) (6,292,481)

Balance carried forward (6,542,308) (5,768,774)

Balance brought forward (6,542,308) (5,768,774)

CASH FLOWS FROM FINANCING ACTIVITIES

Long term financing obtained 4 6,536,916 3,747,071

Net cash generated from/(used in) financing activities 5,927,359 1,593,773

Net increase / (decrease) in cash and cash equivalents (614,949) (4,175,001)

MOHOMED BASHIR MOHAMMED ZAKI BASHIR ABDUL ALEEM

Capital reserve - Unappropriated

Transaction with owners

Issuance of bonus shares 712,991 (712,991) - (712,991) -

Total comprehensive income

Total comprehensive loss for the

Balance as at June 30, 2020 4,277,946 692,424 8,992,830 9,685,254 13,963,200

Total comprehensive income

MOHOMED BASHIR MOHAMMED ZAKI BASHIR ABDUL ALEEM

1 LEGAL STATUS AND ITS OPERATIONS

The Company is a subsidiary of Gul Ahmed Holdings (Private) Limited.

The Company has the following subsidiaries:

1.2 Details of leasehold lands owned by the Company are as follows;

Unit Area Address

(b) Standards, Interpretations and Amendments not yet effective

3 ACCOUNTING ESTIMATES, JUDGEMENTS AND FINANCIAL RISK MANAGEMENT

4 LONG TERM FINANCING - SECURED