Karachi: Dewan Khalid Textile Mills Limited has released its financial results for the fiscal year ending June 30, 2023, revealing a significant decline in both revenue and profitability. According to the report, the company experienced a net loss after taxation of 54.52 million rupees, compared to a loss of 56.57 million rupees in the previous year.

The company’s board of directors, which held four meetings during the fiscal year, reported satisfactory overall performance. The board, composed of one independent director, five non-executive directors, and one executive director, plays a pivotal role in formulating significant policies and strategies for the company. All board members received agendas and supporting materials in advance of meetings, ensuring active participation in decision-making processes.

The audit committee, established to assist the board in corporate governance, financial reporting, and corporate control, also convened four times during the year. Its three members, including the chairman, are primarily non-executive directors, and all attended the meetings consistently. Similarly, the Human Resource and Remuneration Committee, responsible for overseeing human resource policies and key management evaluations, held one meeting, with full attendance by its three members.

Financially, Dewan Khalid Textile Mills reported no net sales for the year, a stark contrast to 2022, where sales reached 65.28 million rupees. The cost of sales decreased to 49.15 million rupees from 107.87 million rupees in the previous fiscal year. The company’s gross loss stood at 49.15 million rupees, compared to a loss of 42.59 million rupees in the prior year.

Operating expenses, comprising administrative and general expenses, increased slightly to 13.98 million rupees from 11.47 million rupees. However, the company recorded a reversal of provision against doubtful debts amounting to 4.03 million rupees, which partially offset the operating loss, resulting in an operating loss of 59.10 million rupees, up from 54.18 million rupees in the previous year.

Finance costs significantly decreased to 6,321 rupees from 11.04 million rupees. The loss before taxation was recorded at 59.11 million rupees, improving from 65.22 million rupees in the previous year. Deferred taxation provided a relief of 4.59 million rupees, contributing to the net loss after taxation of 54.52 million rupees.

According to information available from the Pakistan Stock Exchange (PSX), Dewan Khalid Textile Mills’ shareholders’ equity improved to 40.66 million rupees from 95.19 million rupees, while current liabilities increased to 691.74 million rupees. The company’s current ratio decreased to 0.02 times.

The company’s loss per share stood at 5.67 rupees, a slight improvement from 5.89 rupees in the previous year. Despite the challenging financial landscape, the board of directors remains committed to steering the company towards achieving its strategic objectives.