1st Quarter September 30, 2011

1st Quarter September 30, 2011

Contents

Company Information Directors Report to the Shareholders Balance Sheet Profit & Loss Account Statement of Comprehensive Income Cash Flow Statement Statement of Changes in Equity Notes to the Financial Statements

3 4 5 6 7 8 9 10

1st Quarter September 30, 2011

1st Quarter September 30, 2011

for and on behalf of the Board. (Muhammad Anwar) Chairman & Chief Executive

1st Quarter September 30, 2011

Condensed Interim Balance Sheet as at September 30, 2011 EQUITY AND LIABILITIES Share capital and reserves
Authorized share capital 100 000 000 (June 30, 2011: 100 000 000) ordinary shares of Rupees 10 each Issued, subscribed and paid up share capital Reserves

Note

Un-Audited Audited September 30, June 30, 2011 2011 ( Rupees in thousand )

1,000,000 492,099 1,814,741 2,306,840

1,000,000 492,099 2,020,786 2,512,885

Total equity
Surplus on revaluation of operating fixed assetsnet of deferred tax

1,640,385

1,640,388

LIABILITIES Non-current liabilities

Long term financing Liabilities against assets subject to finance lease
5 553,111 57,599 610,710 1,349,855 123,788 5,523,333 311,856 177,474 7,486,306 8,097,016 6 12,044,241 12,616,421 512,086 54,621 566,707 1,318,565 140,717 5,935,690 350,401 151,068 7,896,441 8,463,148

Current liabilities
Trade and other payables Accrued mark-up Short term borrowings Current portion of non-current liabilities Provision for taxation

Total liabilities
Contingencies and commitments

TOTAL EQUITY AND LIABILITIES ASSETS Non-current assets

Property, plant and equipment Investment in an associate Long term investments Long term loans and advances Long term deposits and prepayments Deferred income tax - asset
7 8 9

3,998,285 411,103 2,226,993 2,372 2,646 63,354 6,704,753

4,034,955 451,550 2,255,434 2,727 2,520 42,351 6,789,537

Current assets
Stores, spares and loose tools Stock in trade Trade debts Loans and advances Short term deposits and prepayments Accrued interest Other receivables Short term investments Cash and bank balances
190,808 1,232,463 3,267,698 346,485 23,185 3,253 234,723 33,940 6,933 5,339,488 160,147 1,658,003 3,391,911 309,062 67,104 2,806 181,876 37,444 18,531 5,826,884 12,616,421

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

12,044,241

(Muhammad Anwar) Chairman & Chief Executive

(Khalid Bashir) Director

1st Quarter September 30, 2011

Condensed Interim Profit and Loss Account (Un-Audited) for the 1st Quarter Ended September 30, 2011

Note

September 30, September 30, 2011 2010 (Rupees in thousand)

2,546,764 2,331,722 215,042 3,279,118 2,879,410 399,708

Sales Cost of sales Gross profit Distribution cost Administrative expenses Other operating expenses

10

148,987 49,700 10,772 209,459 5,583 47,634 53,217

122,490 43,195 31,088 196,773 202,935 45,063 247,998

Other operating income Profit from operations

Finance cost Share of loss of associate (Loss) / profit before taxation Provision for taxation (Loss) / profit after taxation (Loss) / earning per share basic and diluted (Rupees)

188,488 (40,447) (175,718) 5,403 (181,121) (3.68)

119,416 (34,493) 94,089 30,059 64,030 1.30

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

(Muhammad Anwar) Chairman & Chief Executive

(Khalid Bashir) Director

1st Quarter September 30, 2011

Condensed Interim Statement of Comprehensive Income (Un-Audited) for the 1st Quarter Ended September 30, 2011

September 30, September 30, 2011 2010 (Rupees in thousand)

(Loss) / profit after taxation Other comprehensive income (Deficit) /surplus arising on remeasurement of available for sale investments to fair value Total comprehensive (loss) / income for the period
(24,927) (206,048) 2,076 66,106 (181,121) 64,030

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

(Muhammad Anwar) Chairman & Chief Executive

(Khalid Bashir) Director

1st Quarter September 30, 2011

Condensed Interim Cash Flow Statement (Un-Audited) for the 1st Quarter Ended September 30, 2011

September 30, September 30, 2011 2010 (Rupees in thousand)

Cash flows from operating activities Cash generated from / (utilized) in operations Finance cost paid Income tax paid Dividend paid Increase in long term deposits and prepayments Net cash generated from / (utilized) in operating activities Cash flows from investing activities Capital expenditure on property, plant and equipment Proceeds from sale of property, plant and equipment Decrease in long term loans and advances Net cash used in investing activities Cash flows from financing activities Repayment of long term financing Proceeds from long term financing Proceeds from finance lease Short term borrowings - net Net cash from financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period
(24,687) 694 355 (23,638) (163,314) 6,500 138 (156,676)

11

646,378 (205,417) (21,895) (2) (125)

(196,554) (108,600) (32,012) (9) -

418,939

(337,175)

(150,216) 150,000 5,674 (412,357) (406,899) (11,598) 18,531 6,933

(79,390) 147,085 433,791 501,486 7,635 16,419 24,054

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

(Muhammad Anwar) Chairman & Chief Executive

(Khalid Bashir) Director

1st Quarter September 30, 2011

Condensed Interim Statement of Changes in Equity (Un-Audited) for the 1st Quarter Ended September 30, 2011

Share capital

Reserves Revenue Reserves Total Unappropriated Sub total Equity Dividend General Equalization Profit / Fair Value (accumulated loss) Capital Reserve (Rupees in thousand)

Balance as at July 01, 2010 Transfer from surplus on revaluation of operating fixed assets on account of incremental depreciation Total comprehensive income for the quarter ended September 30, 2010 Balance as at September 30, 2010 Final dividend for the year ended June 30, 2010 at the rate of Rupees 1.50 per share Transfer from surplus on revaluation of operating fixed assets on account of incremental depreciation - net of deferred tax Share of associate's items directly credited in equity Total comprehensive loss for the period from October 1, 2010 to June 30, 2011 Balance as at July 01, 2011 Transfer from surplus on revaluation of operating fixed assets on account of incremental depreciation Total comprehensive loss for the quarter ended September 30, 2011 Balance as at September 30, 2011

492,099

75,789

1,773,643

30,000

300,908 2,180,340 2,672,439

492,099

2,076 77,865

1,773,643

30,000

64,030

66,106

66,106

364,941 2,246,449 2,738,548

(73,815) 19 4,761

(73,815) 19 4,761

(73,815) 19 4,761

492,099

26,047 103,912

1,773,643

30,000

(182,675) (156,628)

(156,628)

113,231 2,020,786 2,512,885

492,099

(24,927) 78,985

1,773,643

30,000

3 (206,048)

(181,121) (206,048)

(67,887) 1,814,741 2,306,840

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

(Muhammad Anwar) Chairman & Chief Executive

(Khalid Bashir) Director

1st Quarter September 30, 2011

Selected Notes to the Condensed Interim Financial Information (Un-Audited) for the 1st Quarter Ended September 30, 2011 1. The company and its activities
The Crescent Textile Mills Limited (the Company) is a public limited company incorporated in Pakistan under the Companies Ordinance, 1984. The registered office of the Company is located at 40-A, Off: Zafar Ali Road, Gulberg-V, Lahore. Its shares are quoted on all the Stock Exchanges in Pakistan. The Company is engaged in business of textile manufacturing comprising of spinning, combing, weaving, dyeing, bleaching, printing, stitching, buying, selling and otherwise dealing in yarn, cloth and other goods and fabrics made from raw cotton, synthetic fiber(s) and to generate, accumulate, distribute, supply and sale of electricity. The Company also operates a cold storage unit.

2.

Basis of preparation
This condensed interim financial information is un-audited and is being submitted to shareholders, as required by section 245 of the Companies Ordinance, 1984. This condensed interim financial information of the Company for the 1st quarter ended September 30, 2011 has been prepared in accordance with the requirements of the International Accounting Standard (IAS) 34 "Interim Financial Reporting" and provisions of and directives issued under the Companies Ordinance, 1984 as applicable in Pakistan and notified by the Securities and Exchange Commission of Pakistan (SECP). In case where requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed. This condensed interim financial information should be read in conjunction with the audited annual published financial statements for the year ended June 30, 2011.

3.

Accounting policies and computation methods

The accounting policies and methods of computations adopted for the preparation of this condensed interim financial information are the same as applied in the preparation of the preceding audited annual published financial statements of the Company for the year ended June 30, 2011.

4.

Critical accounting estimates and judgments

The preparation of this condensed interim financial information in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. During preparation of this condensed interim financial information, the significant judgments made by the management in applying the Companys accounting policies and the key sources of estimation and uncertainty were the same as those that applied in the preceding audited annual published financial statements of the Company for the year ended June 30, 2011.

Un-Audited

Audited

September 30, June 30, 2011 2011 ( Rupees in thousand )

5.

Long term financing Financing from banking companies

Opening balance Add: Obtained during the period / year Less: Repaid during the period / year Less: Current portion shown under current liabilities
853,428 150,000 (150,216) 853,212 (300,101) 553,111 1,108,019 147,085 (401,676) 853,428 (341,342) 512,086

10

1st Quarter September 30, 2011

6.

Contingencies and commitments Contingencies

Letters of guarantee of Rupees 129.018 million (June 30, 2011: Rupees 115.918 million) are given by the banks of the Company to Sui Northern Gas Pipeline Limited against gas connection and collector of Customs against import of raw material and supplies. Post dated cheques of Rupees 11.648 million (June 30, 2011: Rupees 9.412 million) are issued to custom authorities in respect of duties on imported material availed on the basis of consumption and export plans. If documents of exports are not provided on due dates, cheques issued as security shall be encashable. The Company is contingently liable to the extent of Rupees 130.616 million (June 30, 2011: Rupees 130.616 million) as its share of contingent liabilities of its associate.

Commitments
Contracts for capital expenditure amounting to Rupees Nil (June 30, 2011: Rupees 82.872 million). Letters of credit other than for capital expenditure amounting to Rupees 23.949 million (June 30, 2011: Rupees 98.839 million).

Un-Audited

Audited

September 30, June 30, 2011 2011 ( Rupees in thousand )

7.

Property, plant and equipment

Operating fixed asset (Note 7.1) Capital work in progress (Note 7.2)
7.1
3,977,437 20,848 3,998,285 3,998,049 36,906 4,034,955

Operating fixed asset

Opening book value Add: Additions during the period/year (Note 7.1.1) Less: Deletions/write off during the period/year (Note 7.1.2) Less: Depreciation charged for the period/year Book value at the end of the period/year
7.1.1 Additions during the period / year
3,998,049 40,745 4,038,794 87 4,038,707 61,270 3,977,437 3,948,372 313,073 4,261,445 10,123 4,251,322 253,273 3,998,049

Building on freehold land Plant and machinery Owned Plant and machinery Lease hold Factory tools and equipment Gas and electric installations Vehicles Office equipment Software

3,799 30,343 740 60 101 5,702 40,745

20,237 262,583 2,917 7,886 15,632 3,818 313,073

7.1.2 Book value of deletions/write off during the period / year

Plant and machinery Factory tools and equipment Gas and electric installations Vehicles Furniture and fixtures Office equipment
87 87 5,783 715 647 2,793 94 91 10,123

1st Quarter September 30, 2011

11

Un-Audited

Audited

September 30, June 30, 2011 2011 ( Rupees in thousand )

7.2 Capital work in progress
Building Plant and machinery Advances for vehicles

60 9,490 11,298 20,848

34,406 2,500 36,906

8.

Investment in an associate
Unquoted Cost Share of post acquisition profit At the beginning of the period/year Share of loss (Note 8.1) Share of associate's item directly credited in equity Elimination of inter company adjustment

269,264 182,286 (40,447) 141,839 411,103

269,264 348,606 (150,712) 5,290 (20,898) 182,286 451,550

8.1
9.

Share of loss of associate has been taken on the basis of un-audited accounts of the associate for the quarter ended September 30, 2011 (June 30, 2011: Audited accounts for the year ended June 30, 2011).
130,408 1,976,500 2,616 41,998 2,151,522 (3,514) 78,985 2,226,993 133,041 1,976,500 2,708 41,998 2,154,247 (2,725) 103,912 2,255,434

Long term investments- available for sale

Quoted - Related parties Unquoted - Related parties Quoted - Others Unquoted - Others Impairment loss charged to profit and loss account Fair value adjustment

Un-Audited Quarter ended September 30, September 30, 2011 2010 (Rupees in thousand)
709,921 123,886 143,708 62,022 84,793 138,188 242,243 17,492 4,710 57,263 5,027 1,589,253 133,539 (129,564) 3,975 1,593,228 1,167,910 (852,757) 315,153 423,341 2,331,722 956,705 232,466 153,617 96,746 102,570 175,281 243,203 10,773 3,975 56,278 2,077 2,033,691 84,732 (132,817) (48,085) 1,985,606 783,746 (822,868) (39,122) 932,926 2,879,410

10.

Cost of sales
Raw material consumed Cloth and yarn purchased Stores, spare parts and loose tools Packing materials Processing and weaving charges Salaries, wages and other benefits Fuel and power Repair and maintenance Insurance Depreciation Other factory overheads Work-in-process: Opening stock Closing stock Cost of goods manufactured Finished goods: Opening stock Closing stock Cost of sales - purchased for resale

12

1st Quarter September 30, 2011

Un-Audited Quarter ended September 30, September 30, 2011 2010 (Rupees in thousand)

11.

Cash generated from operations

(Loss) / profit before taxation Adjustments for non-cash charges and other items: Depreciation Gain on disposal of operating fixed assets Impairment loss on investments Provision for workers welfare fund Provision for workers profit participation fund Share of loss of associate Income from loans and advances Finance cost Working capital changes (Note 11.1)
(175,718) 61,270 (607) 7,018 40,447 188,488 525,480 646,378 94,089 59,718 (1,748) 10,794 2,384 6,923 34,493 (29,710) 129,246 (502,743) (196,554)

11.1 Working capital changes

(Increase) / decrease in current assets: Stores, spare parts and loose tools Stock-in-trade Trade debts Loans and advances Short term deposits and prepayments Interest accrued Other receivables Increase in current liabilities: Trade and other payables
(30,661) 425,540 124,213 (15,528) 43,919 (447) (52,847) 494,189 31,291 525,480 (16,993) (218,400) (420,968) (36,098) (2,500) (3,228) (34,705) (732,892) 230,149 (502,743)

1st Quarter September 30, 2011

13

12.

Segment information 12.1

Spinning (Un-Audited) Quarter ended September 30, 2011 September 30, 2010

Weaving (Un-Audited) Quarter ended September 30, 2011 September 30, 2010

Processing & Home Textile (Un-Audited) Quarter ended September 30, 2011 September 30, 2010

Sales Cost of sales Gross profit Distribution cost Administrative expenses

1,021,331 1,036,885 (15,554) 11,569 19,266 30,835

1,501,903 1,280,151 221,752 11,588 17,264 28,852

1,136,688 1,107,552 29,136 22,319 3,782 26,101

1,560,109 1,460,272 99,837 19,188 3,389 22,577

1,797,707 1,569,509 228,198 114,747 23,678 138,425

1,817,231 1,785,567 31,664 91,376 19,855 111,231

(Loss) / profit before taxation and unallocated income and expenses Unallocated income and expenses Other operating expenses Other operating income Finance cost Share of loss of associate Provision for taxation (Loss)/ profit after taxation

(46,389)

192,900

3,035

77,260

89,773

(79,567)

12.2 Reconciliation of reportable segment assets and liabilities:

Spinning (Un-Audited) September 30, 2011 (Audited) June 30, 2011 Weaving (Un-Audited) September 30, 2011 (Audited) June 30, 2011 Processing & Home Textile (Un-Audited) September 30, 2011 (Audited) June 30, 2011

Total assets for reportable segments

1,366,511

1,481,436

1,478,333

1,692,019

1,377,740

1,778,359

Unallocated assets All segment assets are allocated to reportable segments other than those directly relating to corporate and tax assets. Total liabilities for reportable segments Unallocated liabilities All segment liabilities are allocated to reportable segments other than trade and other payables, corporate

858,125

1,371,572

1,051,463

1,003,310

783,871

798,694

14

1st Quarter September 30, 2011

Trading (Un-Audited) Quarter ended

September 30, 2011 September 30, 2010

Power Generation (Un-Audited) Quarter ended

September 30, 2011 September 30, 2010

Cold Storage (Un-Audited) Quarter ended

September 30, 2011 September 30, 2010

Elimination of Inter-segment transactions (Un-Audited) Quarter ended

September 30, 2011 September 30, 2010

Total - Company (Un-Audited) Quarter ended

September 30, 2011 September 30, 2010

Rupees in thousand

403,127 423,573 (20,446) -

946,378 933,342 13,036 -

209,825 218,014 (8,189) 352 2,817 3,169

250,583 218,028 32,555 338 2,525 2,863

5,004 3,107 1,897 157 157

4,008 3,144 864 162 162

2,026,918 2,026,918 -

2,801,094 2,801,094 -

2,546,764 2,331,722 215,042 148,987 49,700 198,687

3,279,118 2,879,410 399,708 122,490 43,195 165,685

(20,446)

13,036

(11,358)

29,692

1,740

702

16,355

234,023

(10,772) 47,634 (188,488) (40,447) (5,403) (181,121)

(31,088) 45,063 (119,416) (34,493) (30,059) 64,030

Trading
(Un-Audited) September 30, 2011 (Audited) June 30, 2011

Power Generation
(Un-Audited) September 30, 2011 (Audited) June 30, 2011

Cold Storage
(Un-Audited) September 30, 2011 (Audited) June 30, 2011

Total - Company
(Un-Audited) September 30, 2011 (Audited) June 30, 2011

Rupees in thousand

1,949,681

1,796,283

450,794

444,015

13,668

11,832

6,636,727

7,203,944

5,407,514 12,044,241

5,412,477 12,616,421

247,422

277,585

95

827

2,940,976 5,156,040 8,097,016

3,451,988 5,011,160 8,463,148

borrowings and current and deferred tax liabilities.

1st Quarter September 30, 2011

15

12.

Transaction with related parties

The related parties comprise associated undertakings, other related companies, staff retirement funds and key management personnel. Significant transactions with related parties are as under:

Un-Audited Quarter ended September 30, September 30, 2011 2010 (Rupees in thousand)
Company Type Associated Companies Nature of Transaction Purchases Sales Processing income Insurance charges Interest income Dividend income Amount contributed
34,323 38,243 379 6,129 9,516 34,015 3,818 21,994 20,625 133,589 403 7,619 32,938 6,210 4,007 21,873

Employees Provident Fund Trust

Remuneration paid to chief executive, director and executives

14.

Date of authorization
This condensed interim financial information was approved by the Board of Directors and authorized for issue on October 27, 2011.

15.

Corresponding Figures
Comparative figures have been rearranged / reclassified, wherever necessary, f the purpose of comparison. or However, no significant rearrangements / reclassifications have been made except. Net gain on fair value of derivative financial instruments is adjusted against finance cost instead of showing separately in other operating income. Exchange loss on foreign currency loans is merged in finance cost instead of showing separately in other operating expenses.

16.

General
Figures have been rounded off to the nearest thousand rupees.

(Muhammad Anwar) Chairman & Chief Executive

(Khalid Bashir) Director

16

1st Quarter September 30, 2011