Annual Report 2007

Annual Report 2007Nishat Mills Limited

N I S H A T

Nishat Mills Limited

Annual Report 2007


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Annual Report 2007


contentsCompany Information Mission Statement Vision Statement Notice of Annual General Meeting Directors Report Financial Highlights Pattern of Holding of the Shares Statement of Compliance With The Code of Corporate Governance Statement of Compliance With The Best Practices on Transfer Pricing Review Report to the Members on Statement of Compliance With Best Practices of Code of Corporate Governance Auditors Report To The Members Balance Sheet Profit and Loss Account Cash Flow Statement Statement of Changes in Equity Notes To The Financial Statements Form of Proxy 4 5 6 7-0 -8 9 20-2 24-25 25

26 27 28-29 30 -2 4-7

Annual Report 2007


company informationBoard of directors: Mrs. Naz Mansha Chief Executive/Chairperson Mian Raza Mansha Mian Hassan Mansha Mr. Muhammad Nawaz Tishna (NIT) Mr. Khalid Qadeer Qureshi Chief Financial Officer Mr. Muhammad Azam Rana Muhammad Mushtaq Ms. Nabiha Shahnawaz Cheema Mian Hassan Mansha Mr. Muhammad Azam Ms. Nabiha Shahnawaz Cheema Mr. Khalid Mahmood Chohan Riaz Ahmad & Company Chartered Accountants Member Member Chairperson/Member

audit committee:

company secretary: auditors: LegaL advisor:

Mr. M. Aurangzeb Khan, Advocate, Chamber No. 6, District Court, Faisalabad. KASB Bank Limited Meezan Bank Limited National Bank of Pakistan NIB Bank Limited PICIC Commercial Bank Limited Standard Chartered Bank (Pakistan) Limited The Hong Kong & Shangai Banking Corporation Limited United Bank Limited (Spinning and Stitching units & Power Plant) (Weaving units & Power Plant) (Stitching unit)

Bankers to the company: ABN Amro Bank Albaraka Islamic Bank B.S.C (E.C) Allied Bank of Pakistan Limited Askari Commercial Bank Limited Bank Alfalah Limited Citibank N.A. Crescent Commercial Bank Limited Deutsche Bank Faysal Bank Limited Habib Bank Limited Habib Metropolitan Bank Limited miLLs: Nishatabad, Faisalabad 2 K.M. Faisalabad Road, Sheikhupura. 21 K.M. Ferozepur Road, Lahore.

5 K.M. Nishat Avenue (Weaving, Dyeing & Finishing unit, Off 22 K.M. Ferozepur Road, Lahore. Processing unit and Power Plant) 20 K.M. Sheikhupura Faisalabad Road, Feroze Watwan registered office & shares department (Spinning unit)

Nishat House, 53 - A, Lawrence Road, Lahore. Tel: 042-66782-6, 042- Fax: 042-66744 7, Main Gulberg, Lahore. Tel: 042-5765-9, 042- 2 200 Fax: 042-57649-50 E-mail: [email protected] Website: www.nishatmills.com Ist Floor, Karachi Chambers, Hasrat Mohani Road, Karachi. Tel: 02-24472-2 Fax: 02-24296

head office:

Liaison office:

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Annual Report 2007


Mission StatementTo provide quality products to customers and explore new markets to promote/ expand sales of the Company through good governance and foster a sound and dynamic team, so as to achieve optimum prices of products of the Company for sustainable and equitable growth and prosperity of the Company.

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Vision StatementTo transform the Company into a modern and dynamic yarn, cloth and processed cloth and finished product manufacturing Company with highly professionals and fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan. To transform the Company into a modern and dynamic power generating Company with highly professionals and fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan.

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Annual Report 2007


notice of annuaL generaL meetingnotice is hereby given that Annual General Meeting of the members of Nishat Mills Limited ( the Company ) will be held on October 01, 2007 ( Monday ) at 11 :00 a.m. at Nishat House, 53 A, Lawrence Road, Lahore, to transact the following business:1. 2. . 4. To confirm minutes of the last Meeting. To receive and adopt the Audited Accounts of the Company for the year ended June 0, 2007 together with Directors and Auditors reports thereon. To approve Final Cash Dividend @ 25% (i.e. Rs. 2.50 per share) as recommended by the Board of Directors. To approve re-appointment of M/s Riaz Ahmad & Company, Chartered Accountants, as external auditors of the Company for the year 2007-2008 and fix their remuneration, as recommended by the Audit Committee and Board of Directors. speciaL Business: To approve the following Special Resolution pursuant to Section 208 of the Companies Ordinance 1984, with or without modification:resoLved unanimousLy: A. that pursuant to requirements of Section 208 of the Companies Ordinance 984, the Company be and is hereby authorized to make investment up to 5,000,000 Ordinary Shares of Adamjee Insurance Company Limited (AICL) through open stock market at the prevailing market rate. B. that the Chief Executive of the Company be and is hereby empowered and authorized to make the said investment in the shares of AICL from any of the recognized registered stock exchange member, as and when deemed appropriate in the best interest of the Company and its shareholders and empowered and authorized to sale out subsequently any or all of the shares purchased by the Company. C. that each of Mrs. Naz Mansha, Chief Executive and Mr. Khalid Mahmood Chohan, Company Secretary be and is hereby singly authorized and empowered to act on behalf of the Company in doing and performing all acts, matters, things and deeds to implement and or give effect to the above resolutions. 6. Any other matter with the permission of the chair. By order of the Board Lahore august 20, 2007 (khaLid mahmood chohan) Company Secretary

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notes: . Book cLosure notice for entitLement of finaL 25% cash dividend for the year ended June 30, 2007:The Share Transfer Books of the Company will remain closed for entitlement of Cash Dividend @ Rupees 2.50 per share i.e. ( 25% ), from 24-09-2007 to 0-0 -2007 ( both days inclusive ). Physical transfers / CDS transactions / IDs. received in order at Nishat House, 53-A, Lawrence Road, Lahore upto 1:00 p.m. on 22-09-2007, will be considered in time for the entitlement of said dividend and attending of meeting. 2. A member eligible to attend and vote at this meeting may appoint another member as his/ her proxy to attend and vote instead of him/her. Proxies in order to be effective must reach the Companys Registered Office not later than 48 hours before the time for holding the meeting. Proxies of the Members through CDS shall be accompanied with attested copies of their CNIC. The shareholders through CDC are requested to bring original CNIC, Account Number and Participant Account Number to produce at the time of attending the meeting. Shareholders are requested to immediately notify the change of address, if any. Members who have not yet submitted photocopies of their Computerized National Identification Cards to the Company are requested to send them at the earliest.

. 4.

statement under section 160(1)(b) of the companies ordinance, 1984This statement sets out the material facts pertaining to the special business to be transacted at the forthcoming Annual General Meeting of the Company to be held on October 0, 2007. Adamjee Insurance Company Limited (AICL) was incorporated as a public limited company on September 28, 1960 and is listed on Karachi and Lahore Stock Exchanges of the Country. AICL is involved in general insurance business, enjoying a competitive edge in the insurance industry due to its strong assets base, paid up capital, huge reserves, balance portfolio mix, steady growth in gross premium and one of the blue chip at the stock market. The Board of Directors of Nishat Mills Limited at their meeting held on August 20, 2007 have recommended and approved the special resolution as set out in the notice of AGM. The Company already has shareholding of 30,031 ordinary shares in the share capital of AICL. The Memorandum and Articles of Association of AICL has been kept at registered office of the Company which can be inspected at any time during working hours up to September 29, 2007. Other information as required under notification NO. SRO 865(1)/2000 dated December 06, 2000 issued by Securities and Exchange Commission of Pakistan is given hereunder: i) ii) Name of investee Company or Associated undertakings: Nature, amount and extent of investment : : Adamjee Insurance Company Ltd, an associated Company. Not over 5,000,000 Ordinary shares, through Stock Market. Annual Report 2007

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iii) Average market price of the shares Intended to be purchased during preceding six months in case of listed companies iv) Break-up value of shares intended to be purchased on the basis of last published financial statements v) Price at which shares will be purchased vi) Earning per share of investee company in last three years vii) Source of funds from where shares will be purchased viii) Period for which investment will be made ix) Purpose of investment

:

Rs.246/-

:

Rs.7.05 (-2-2006) Audited Accounts

: :

At the prevailing market rate. year rs. 2006 5.42 2005 .8 2004 .96

: : :

Surplus funds / reserves of the Company Long Term Investment The Company expects dividend income, which would further augment the cash flow. Price appreciation of Companies share and better profit distribution to the valued shareholders of the Company. Two Directors are common in both companies and they have no special interest except to the extent of their shareholding.

x) Benefits likely to accrue to the Company and the shareholders from the proposed investment; and xi) Interest of Directors and their relatives in the investee Company

:

:

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paid up capitaL of investee company, numBer of present sharehoLders and capitaL heLd (%age Wise), (Based on Latest annuaL audited accounts, 31-12-2006Paid up Capital: No of shareholders: categories of members Directors /Chief Executive and their spouses Associated Companies, Undertakings & related Parties NIT and ICP Banks, DFLs and NBFLs Insurance Companies Modaraba and Mutual Funds General Public: Local (Individuals) Foreign Companies / organization/individuals (on repatriable basis) Others totaL: 6 470 740 102 235 160 0.28 .76 100.000 28 783 367 28.153 02 25 60 Ordinary shares of Rs.0 each 5 2 shares held 2 56 875 39 829 669 5 848 5 867 337 7 09 896 4 55 092 percentage 2.509 38.959 0.06 5.739 6.866 4.454

financial projections of investee company for the next three years. future three years financial projection (rs. in million) 2007 Gross Premium Net Premium Underwriting Results Investment Income Profit before Tax Profit after Tax 9 2 6 548 897 858 2 637 74 2008 0 485 7 525 1 099 7 2 332 56 2009 2 052 8 647 1 341 44 2 621 704

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directors reportYour directors are pleased to present you the 59th annual report and audited accounts for the year ended June 0, 2007. Operating financial resultshighlights 2007 000 rs. 7 80 92 2 844 938 2 066 910 1 819 170 1 674 170 0.48 2006 000 rs. 6 659 607 2 957 981 1 986 526 1 758 866 1 632 866 0.22 variance % .2 (3.82) 4.05 3.43 2.53 2.54

Million resulting from profit of Rs. 155.943 Million on sale of shares of Adamjee Insurance Company Limited.

Sales Gross Profit Operating Profit Profit Before Tax Profit After Tax EPS

Our company has earned an after tax profit of Rs ,674.70 Million in this year thus showing an increase of 2.5 % as compared to Rs. ,62.866 Million for the previous period. However, gross profit has decreased by 3.82% in spite of increase in sales. This decrease in gross profit is due to increase in local cotton rate by 6.8% (2007: Rs. 2,485/maund, 2006: Rs. 2,6/maund), increase in imported cotton rate by 7.24% (2007: Rs. ,450/maund, 2006: Rs. ,27/maund), increase in gas rates by .69% (2007: Rs. 8/HM, 2006: Rs. 744/ HM) and increase in minimum wage rate by 25 %. Despite of decrease in gross profit and increase in finance cost by 8.50 % (Rs. 64.213 Million), net profit has increased due to increase in dividend income by Rs. 6.778 Million and gain on sale of investment by Rs. 07.9

The Board of Directors of the company has recommended 25 % cash dividend (2006: 5 % cash dividend and 0 % bonus share) and recommends transferring Rs. ,244 Million (2006: Rs. ,269 Million) to general reserve.

Annual Report 2007


marketing strategy & future prospects spinning section The financial year 2007 ended with stability for spinning section. Cotton prices kept swinging and spackled between Rs.2,400/mound to Rs.2,850/mound. The year started with rumors of not achieving target cotton crop thus resulting in raise in price. This raise gained continuity as spinners kept buying on demanded price to fulfill their export orders. By the end of fourth quarter, cotton prices remain perched to record levels for the season 2007.

of demand and prices of carded & combed both yarns. Far East remained our main selling market of cotton yarn. Development was made in Malaysian market in terms of orders & prices. Although achievements were not remarkable, we also tried to develop some new products of organic cotton & compact yarn in Far East market specially. Demand from Europe and USA kept reducing during this year.

Weaving section The year 2007 was a difficult year for weaving section. This was mainly triggered by the bullish cotton market. Profit margins in weaving were difficult to sustain as increase in cotton yarn price was not absorbed by the customers end and there remained a price pressure and competition in our key markets. Moreover, extreme shortage of Lycra and Spandex fibers resulted in an increase of 20% in stretch yarn prices. Requirements of reduction in lead time by our European customers, collapse of Far Annual Report 2007

At Nishat, the demand of 00% grey cotton yarn remained steady and we tried to uphold the prices along with market and to keep the spinning section in profits. However, swell in cotton prices and unwillingness of buyers to pay good prices for the cotton yarn was the big restrain during this year. However, by the end of the year, Far East market showed good response in terms

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East grey fabric market, limited shipment options and sharp decline in volume and prices in wider width and home textiles greige fabrics were the major constraints during the year. Despite all challenges and difficulties, weaving section of Nishat ended the year 2007 on a high note as far as profits were concerned. There has been an increase in the volume of industrial plus technical fabrics mainly to Germany, U.K, Netherlands and Belgium. An increase in customer base and volume was observed in Italy, France, Spain, Denmark and Mexico. There was also an increase in high end fashion business. This was because of a wide range of customers, diversified product mix and addition of few customers in the EU. There were new developments in special fabrics for sports wear (thermolite, coolmax, cotton linen Lycra, polyamide, cotton Lycra, bamboo and cotton wool) and specialized industrial use fabrics (Bekinox, Resistate Anti-Static, Carbon Black and Cotton Filaments).

As far as marketing strategy is concerned, we stressed product diversification with new fashion items, customer diversification, participation in the textile fairs and Exhibitions (Texworld & PV Paris for Fashion). We keep our customer by committing longer validity of prices, quick deliveries and keeping stocks of specialized fibers which have to be imported from USA, Belgium, South Africa and UK for better lead time for customer and giving all grey customers an option of pfd. We expect further increase of greige business for sports wear, industrial and technical fabrics in the European markets. Future prospects are mainly dependent on the cotton outlook for the coming season which seems bullish for the time being and due to this Far East market doesnt sound good in the future. Therefore, we need to explore new markets and customers.

Annual Report 2007


processing and stitching section The year 2007 can be said as the most challenging year for companies operating in Home Textiles Industry. There was an increase in cost of inputs that is cotton, power, utilities and labour. The power shortage was an alarming aspect that has effected directly and indirectly by halting production thus resulting in delays of final product. At international front, the competitor countries are enjoying the duty free access for big markets like US and EU, GSP qualifications, lowest interest rates offered by their governments, abundance of skilled labour pool at cheap price and subsidies for different cost inputs. The imposition of anti dumping on Pakistan products are making them uncompetitive and resulting in shift of customer base to competitors. Further the recent collapse of housing market at US has also made a hit on the home textile sales.

For this year we have entered into the business of slip covers which has a huge growth prospect in the market. Besides this, the filled items business, bed in a bag, decorative pillows were also added by using market facilities. Company has further introduced new finishes like fragrance, easy care, cool max and nano care for which we got ourselves registered with Nanotex. The more emphasis was given to value addition, therefore for the first time double side printing was done which is a new kind of experience that company has done successfully. Company has further introduced new fiber based fabrics by using Bamboo and Organic Cotton, which is a new trend and is gaining more popularity among the US and European consumers.

Despite of all these adverse factors, Nishat Home Textile Section succeeded in obtaining good results. The customer base was enhanced and the new products were added successfully. Further to enhance the output and to cut the operations time and costs in sewing, the automation policy was opted in cutting department by adding new automatic Gerber Cutting equipment. Moreover, foreign experts were hired to have transfer of knowledge to achieve the maximum output.

The Expansion and modernization phase has been completed as well as processing facilities of the division have been completely shifted from Faisalabad to the new set up at Lahore. This has brought all processing operations under one roof that will improve lead times, minimize excessive handling of fabric and shall result into lower costs Annual Report 2007

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and hence adding into the bottom line.

In pre quota period, the business was predominantly done through importers / distributors for US and European Market. Due to recent change in business model, company has focused towards direct retailers to gain more share of business and it has also helped in utilizing the capacities in optimum manner and attaining the economies of scale. Further, we opted for two pronged strategies: one for commodity items to gain production efficiencies and the other to work for branded products to fetch maximum profits. Company has further made its presence in different international textile fairs to keep informed of the market and to maintain a continuous contact with its customers. Further the customer specific visits are always undertaken to service the customers after sales. Future plans are to open own offices at major markets of US and Europe to establish direct contact with customers. Company has recently completed expansion plans of its processing by enhancing capacities in Bleaching, Dyeing and Printing by installing brand new Bleaching, Dyeing and Printing Range. Considering the market growth in the next year, company has the plans to enhance its capacities where required. Further, the plans are to have in house product manufacturing, quilting and wadding plant for complete bed in a bag product. nishat dyeing & finishing (ndf) Year 2007 proved to be the most successful year Annual Report 2007

since the inception of this plant. The year showed a record sale figures. Total plant capacity which was increased to 4 Million meters per month last year, was also quickly and consistently filled up this year. During the year, special emphasis was laid on product development. A new R&D department was set up during this time. The target was innovation in terms of weave as well as finishing range. As a result, a total of 360 new qualities, in terms of weave, were added to the existing product range. Further, new finishing techniques were added and perfected in the finishing capabilities including blotch printing as well as knife coating. Market response to these innovations has been quite positive.

Although the performance of the plant remained very good, market situation changed to worse during this year. Most retailers and chain stores in US and Europe have recently restructured their sourcing models due to increased competition. New emerging shape of the market revolves around fast speed and reduced lead times for production. This poses a considerable challenge to our plant in terms of drastically reduced lead times from customers.

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As a response to these fresh challenges, Nishat Dyeing & Finishing has responded successfully. Our customer base was increased this year. New business has been established with many new retailers and renowned labels as part of the marketing strategy of NDF. New fiscal year has started with our plant packed to the capacities in terms of production. On the outlet, prospects of next year look quite promising. power generation During the Year 2007, most modern dual fuel fired generators were installed based on cogeneration and tri-generation principles i.e. beside power, waste heat is utilized to produce steam and conditioning the air. Nishat was the first private concern to introduce such modern and economical gas fired generator in the country. power plants diesel / furnace oil engines 4 7 2 gas gas engines turbines

Faisalabad Bhikki Lahore Ferozewatwan

4 4 2 4

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On shifting of processing unit, steam generated from waste heat was rendered surplus. To utilize this surplus steam, .2 MW steam turbine is being purchased and is expected to arrive in October 2007. information technology During the year 2007, our in-house developed system was improved by laying maximum emphasis on inter linking of related modules for having better internal control and using human resources more effectively. Moreover, most modern equipments were installed and developments carried out for better efficiency and data security. earning per share The earning per share of the company stood at Rs 0.48 (2006: Rs 0.22). 6 Annual Report 2007


related parties The transactions between the related parties were carried out at arms length prices determined in accordance with the comparable uncontrolled prices method. The Company has fully complied with the best practices on Transfer Pricing as contained in the Listing Regulations of Stock Exchanges in Pakistan. The Statement of Compliance with the best practice on Transfer Pricing is annexed. corporate governance The Statement of Compliance with the best practices of Code of Corporate Governance is annexed. corporate and financial frame Work In compliance of the Code of Corporate Governance, we give below statements on Corporate and Financial Reporting frame work: 1. The financial statements, prepared by the management of the Company, present fairly its state of affairs, the result of its operations, cash flows and changes in equity. 2. Proper books of account of the Company have been maintained. . Appropriate accounting policies have been consistently applied in preparation of financial statements except for the change stated in note 4.5.2 to the financial statements that has been duly approved and adjusted in current year. Accounting estimates are based on reasonable and prudent judgment. 4. International Accounting Standards, as applicable in Pakistan, have been followed in preparation of financial statements and any departure there from has been adequately disclosed. 5. The system of internal control is sound in design and has been effectively implemented and monitored. Annual Report 2007

6. There are no significant doubts upon the Companys ability to continue as a going concern. 7. There has been no material departure from the best practices of corporate governance, as detailed in the listing regulations. 8. Value of investments in respect of retirement benefits fund: Provident Fund: 30th June, 2007: Rs. 237.301 Million Un-audited (2006: Rs. 29.79 Million-Audited) 9. During the year under review, Six Meetings were held, attendance position was as under:sr. no. 2 4 5 6 7 8 9 name of director no. of meetings attended 2 4 4 5 5 6 2

Mrs. Naz Mansha (Chief Executive / Chairperson) Mian Raza Mansha Mian Hassan Mansha Mr. Muhammad Nawaz Tishna (Nominee NIT) Mr. Faisal Ehsan Ellahi (Resigned) Mr. Khalid Qadeer Qureshi Mr. Muhammad Azam Rana Muhammad Mushtaq Ms. Nabiha Shahnawaz Cheema (Appointed in place of Mr. Faisal Ehsan Ellahi)

audit committee The board of directors in compliance with the Code of Corporate Governance has established an Audit committee. The names of its members are given in the company profile. change in Board of directors and audit committee Mr. Faisal Ehsan Ellahi has resigned from the Board of Directors and Audit Committee and Ms. Nabiha Shahnawaz Cheema has been appointed in his place to fill the casual vacancy.

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auditors The present auditors M/s Riaz Ahmad & Company, Chartered Accountants, retire and being eligible, offer themselves for reappointment. pattern of share holding and information under clause XiX (i) and (j) of the code of corporate governance The information under this head as on June 0, 2007 is annexed. Key operating and financial data The key operating and financial data for the last six years is annexed. acknowledgement The Board is pleased for continued dedication and loyalty of the employees of the company. for and on behalf of Board of directors

Lahore: (mrs. naZ mansha) August 20, 2007 chief executive/chairperson

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Annual Report 2007


financiaL highLights

2002

2003

2004

2005

2006

2007

(rupees in thousands) Profit and loss Net sales Gross Profit Profit before tax Profit after tax Cash outflows Taxes paid Financial Charges Paid Fixed capital expenditures Balance sheet Current assets Current liabilities Operating fixed assets Total assets Long term loans and finances Shareholders Equity ratios Current ratio Gearing ratio Gross profit % Net profit % (before tax) Earning per share Proposed dividend % Bonus % production machines No. of Spindles No. of Sulzar Looms No. of Airjet Looms No. of Thermosole Dyeing machines No. of Rotary Printing machines 72 82 284 252 8 84 202 362 82 568 114 472 8 46 108 482 4 8 576 108 484 4 89 960 108 532 5 .04: 0.47: 16.97 2.79 .65 0 .0: 0.8: 14.29 4.12 .5 5 .22: 0.27: 13.00 6.09 5.7 20 .40: 0.22: 18.77 17.88 2.86 25 .8: 0.: 17.76 10.56 0.22 5 0 .74: 0.06: 16.56 10.59 0.48 25 5 006 405 5 804 85 8 074 4 6 060 99 6 58 5 7 456 60 6 327 546 6 911 233 7 631 620 2 795 822 5 454 628 9 58 627 2 467 484 4 255 227 2 753 389 6 8 24 2 622 873 9 502 44 7 746 47 6 25 7 926 838 2 97 602 2 858 155 2 806 4 9 74 720 7 05 5 8 398 310 0 66 26 3 015 384 20 594 409 09 087 7 649 7 10 309 611 9 80 67 1 773 820 29 957 424 7 569 096 59 064 749 24 98 687 72 247 4 4 850 44 665 70 27 6 675 5 094 74 55 96 772 692 267 2 59 46 75 88 759 076 49 947 78 209 299 4 875 877 2 027 947 1 887 991 1 933 924 333 530 544 135 905 502 201 511 410 579 751 060 74 60 2 134 899 2 033 354 1 867 354 6 659 607 2 957 981 1 758 866 1 632 866 7 80 92 2 844 938 1 819 170 1 674 170

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Nishat Mills Limited pattern of hoLding of the shares heLd By the sharehoLders of nishat miLLs Limited as at 30/06/2007numBer of sharehoLders 4 509 4 04 088 04 222 72 4 2 8 7 4 5 7 0 5 2 4 6 5 4 4 2 2 2 2 4 2 2 2 sharehoLding from 0 50 00 500 000 500 2000 2500 000 500 4000 4500 5000 5500 6000 6500 7000 7500 8000 8500 9000 9500 0000 0500 000 500 2000 2500 4000 4500 5000 5500 6500 7000 7500 8000 8500 9500 22500 2000 24500 26500 27000 28500 0000 0500 000 2500 4500 5000 5500 to 00 500 000 5000 0000 5000 20000 25000 0000 5000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000 95000 00000 05000 0000 5000 20000 25000 0000 45000 50000 55000 60000 70000 75000 80000 85000 90000 200000 20000 25000 250000 270000 275000 290000 05000 0000 5000 0000 50000 55000 60000 totaL shares heLd 59 058 050 477 776 72 2 27 45 64 294 896 806 724 949 5 84 5 22 555 44 4 05 70 80 72 045 892 97 570 078 4 062 5 00 294 420 80 000 249 895 26 00 560 595 496 662 02 800 25 6 552 20 000 496 264 87 945 429 80 589 68 05 099 0 50 67 905 47 000 76 900 82 400 77 400 800 000 228 00 22 000 245 800 266 800 275 000 575 224 00 00 65 800 70 657 0 46 480 52 500 58 50

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Annual Report 2007


numBer of sharehoLders 2 2 2 2 2

sharehoLding from 6500 7500 8000 9500 4500 42000 42500 4000 44500 45000 48000 49500 5500 54000 56500 57000 57500 58500 59000 59500 64000 64500 65500 69500 75000 77500 78000 79000 79500 82000 86000 86500 92500 99500 02000 08000 09500 4000 9500 20500 2500 5500 65000 78500 208000 26500 264000 272500 29500 49500 457500 097500 to 70000 80000 85000 400000 420000 425000 40000 45000 450000 455000 485000 500000 520000 545000 570000 575000 580000 590000 595000 600000 645000 650000 660000 700000 755000 780000 785000 795000 800000 825000 865000 870000 90000 000000 025000 085000 00000 45000 200000 20000 220000 540000 655000 790000 2085000 2640000 2645000 270000 00000 4200000 4580000 0980000

totaL shares heLd 74 09 78 00 8 400 400 000 48 650 84 880 85 600 4 500 50 000 450 400 484 500 500 000 59 60 542 000 566 200 570 00 56 00 588 400 594 070 600 000 64 20 944 700 657 00 97 470 75 700 779 202 782 500 792 7 800 000 824 58 862 400 868 05 926 800 000 000 020 80 080 890 00 000 44 500 95 500 206 00 25 500 55 700 650 200 786 2 2 082 400 2 68 69 2 64 8 2 728 525 00 000 4 99 929 4 579 740 0 975 02

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numBer of sharehoLders 11 512 categories of members Individuals Investment Companies Insurance Companies Joint Stock Companies Financial Institutions Modaraba Companies Foreign Investors Miscellaneous Grand Total

sharehoLding from 289500 484500 59000 205500 to 2900000 4850000 595000 2060000 totaL number 24 9 55 60 69 26 26 52 shares held 74 60 9 94 458 7 8 48 26 85 497 4 0 497 9 6 78 96 96 5 29 27 59 785 77

totaL shares heLd 2 895 49 4 848 04 5 92 08 20 57 9 159 785 717 percentage 46.69 0.25 4.89 6.79 8.8 2.27 7.0 .27 00.00

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Annual Report 2007

Nishat Mills Limited information under cLause XiX ( i ) of the code of corporate governance as on June 30, 2007shares heLd (a) associated companies, undertakings and reLated parties 1. D. G. KHAN CEMENT CO. LTD. 2 ADAMJEE INSURANCE COMPANY LTD ( B ) nit and icp 1. NATIONAL BANK OF PAKISTAN - TRUSTEE DEPTT. 2. INVESTMENT CORPORATION OF PAKISTAN ( c ) directors, ceo, their spouse and minor chiLdren 1. 2. 3. 4. MRS. NAZ MANSHA MIAN RAZA MANSHA MRS. AMMIL RAZA MANSHA MIAN HASSAN MANSHA CHIEF EXECUTIVE / CHAIRPERSON DIRECTOR (SPOUSE MIAN RAZA MANSHA) DIRECTOR 10 975 032 4 848 04 3 300 000 2 895 49 NIL 26 84 205 6.87 9.29 2.07 8.07 6.79 5 514 225 NIL 3.45 20 157 391 868 035 12.62 0.54 percentage

( d ) eXecutives ( e ) puBLic sector companies and corporations Joint stock companies (f) Banks, deveLopment finance institutions, non-Banking finance institutions, insurance companies, modaraBas and mutuaL funds . 2. 3. 4. INVESTMENT COMPANIES INSURANCE COMPANIES FINANCIAL INSTITUTIONS MODARABAS, MUTUAL FUNDS & LEASING COMPANIES, ETC.,

94 458 7 813 438 14 110 497 19 611 783

0.25 4.89 8.83 12.27

( g ) sharehoLders hoLding ten percent or more voting interest in the Listed company D. G. KHAN CEMENT CO. LTD. 20 157 391 12.62

information under cLause XiX ( j ) of the code of corporate governance name of ceo/director/cfo/company secretary and their spouse and minor chiLdren nil no. of shares purchased nil date rate (rs.) -

Annual Report 2007

2

Nishat Mills Limited statement of compLiance With the code of corporate governanceYear Ended : June 30, 2007 This statement is being presented to comply with the Code of Corporate Governance contained in Regulation No. 37, 43 & 36 of listing regulations of Karachi, Lahore & Islamabad Stock Exchanges respectively for the purpose of establishing a framework of good governance, whereby a listed company is managed in compliance with the best practices of corporate governance. The Company has applied the principles contained in the Code in the following manner: . The Company encourages representation of independent non-executive directors and directors representing minority interests on its Board of Directors. At present the Board includes independent non-executive directors. The directors have confirmed that none of them is serving as a director in more than ten listed companies, including this Company. All the resident directors of the Company are registered as taxpayers and none of them has defaulted in payment of any loan to a banking company, a DFI or an NBFI or, being a member of a stock exchange, has been declared as a defaulter by that stock exchange. A casual vacancy occurred in the Board on March 27, 2007 was filled up same day by the directors. The Company has prepared a Statement of Ethics and Business Practices, which has been signed by all the directors and employees of the Company. The Board has developed a vision/mission statement, overall corporate strategy and significant policies of the Company. A complete record of particulars of significant policies along with the dates on which they were approved or amended has been maintained. All the powers of the Board have been duly exercised and decisions on material transactions, including appointment and determination of remuneration and terms and conditions of employment of the CEO and other executive directors, have been taken by the Board. The meetings of the Board were presided over by the Chairperson and, in her absence, by one of the directors present elected by the Board for this purpose and the Board met at least once in every quarter. Written notices of the Board meetings, along with agenda and working papers, were circulated at least seven days before the meetings. The minutes of the meetings were appropriately recorded and circulated. No new orientation course has been arranged during the year. The appointment of CFO, Company Secretary and Head of Internal Audit, including their remuneration and terms and conditions of employment have been duly approved by the Board. The Directors Report for this year has been prepared in compliance with the requirements of the Code and fully describes the salient matters required to be disclosed.

2. .

4. 5. 6.

7.

8.

9. 0.

.

24

Annual Report 2007


12. . 14. 5. 6.

The financial statements of the Company were duly endorsed by CEO and CFO before approval of the Board. The directors, CEO and executives do not hold any interest in the shares of the Company other than that disclosed in the pattern of shareholding. The Company has complied with all the corporate and financial reporting requirements of the Code. The audit committee is continued and it comprises members, of whom, two are nonexecutive directors including the Chairperson of the committee. The meetings of the audit committee were held at least once every quarter prior to approval of interim and final results of the Company and as required by the Code. The terms of reference of the committee have been formed and advised to the committee for compliance. The Board has set-up an effective internal audit function who are considered suitably qualified and experienced for the purpose and are conversant with the policies and procedures of the Company and they are involved in the internal audit function on a full time basis. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the Quality Control Review programme of the Institute of Chartered Accountants of Pakistan, that they or any of the partners of the firm, their spouses and minor children do not hold shares of the Company and that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by Institute of Chartered Accountants of Pakistan. The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard. We confirm that all other material principles contained in the Code have been substantially complied with. ( mrs. naZ mansha ) CHIEF EXECUTIVE / CHAIRPERSON NIC Number : 5202-285-6

17.

18.

9.

20.

Lahore: august 20, 2007

statement of compLiance With the Best practices on transfer pricing for the year ended June 30, 2007 The Company has fully complied with the best practices on Transfer Pricing as contained in the related Listing Regulations of the Karachi, Lahore and Islamabad Stock Exchanges. Lahore: august 20, 2007 ( mrs. naZ mansha ) CHIEF EXECUTIVE / CHAIRPERSON NIC Number : 5202-285-6

Annual Report 2007

25

Nishat Mills LimitedrevieW report to the memBers on statement of compLiance With Best practices of code of corporate governanceWe have reviewed the Statement of Compliance with the best practices contained in the Code of Corporate Governance prepared by the Board of Directors of Nishat Mills Limited to comply with the Listing Regulations of the respective stock exchanges, where the Company is listed. The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the Company. Our responsibility is to review, to the extent where such compliance can be objectively verified, whether the Statement of Compliance reflects the status of the Companys compliance with the provisions of the Code of Corporate Governance and report if it does not. A review is limited primarily to inquiries of the Company personnel and review of various documents prepared by the Company to comply with the Code. As part of our audit of financial statements, we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. We have not carried out any special review of the internal control system to enable us to express an opinion as to whether the Boards statement on internal control covers all controls and the effectiveness of such internal controls. Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Companys compliance, in all material respects, with the best practices contained in the Code of Corporate Governance.

faisalabad: august 20, 2007

riaz ahmad and company chartered accountants

26

Annual Report 2007

Nishat Mills Limited auditors report to the memBers

We have audited the annexed balance sheet of nishat miLLs Limited as at 0 June 2007 and the related profit and loss account, cash flow statement and statement of changes in equity, together with the notes forming part thereof, for the year then ended and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit. It is the responsibility of the companys management to establish and maintain a system of internal control, and prepare and present the above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance, 984. Our responsibility is to express an opinion on these statements based on our audit. We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the above said statements. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the above said statements. We believe that our audit provides a reasonable basis for our opinion and, after due verification, we report that: a) b) i) in our opinion, proper books of account have been kept by the company as required by the Companies Ordinance, 984; in our opinion: the balance sheet and profit and loss account, together with the notes thereon, have been drawn up in conformity with the Companies Ordinance, 984, and are in agreement with the books of account and are further in accordance with accounting policies consistently applied except for the change stated in Note 4.5.2 to the financial statements with which we concur; the expenditure incurred during the year was for the purpose of the companys business; and the business conducted, investments made and the expenditure incurred during the year were in accordance with the objects of the company; in our opinion and to the best of our information and according to the explanations given to us, the balance sheet, profit and loss account, cash flow statement and statement of changes in equity, together with the notes forming part thereof, conform with approved accounting standards as applicable in Pakistan, and, give the information required by the Companies Ordinance, 984, in the manner so required and respectively give a true and fair view of the state of the companys affairs as at 30 June 2007 and of the profit, its cash flows and changes in equity for the year then ended; and in our opinion, Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 980), was deducted by the company and deposited in the Central Zakat Fund established under section 7 of that Ordinance. riaZ ahmad and company chartered accountants 27

ii) iii) c)

d)

faisalabad: august 20, 2007

Annual Report 2007

Nishat Mills Limited BaLance sheet as at 30 June 2007

note equity and LiaBiLities share capitaL and reserves Authorized share capital 78 470 000 (2006: 78 470 000) ordinary shares of Rupees 0 each Issued, subscribed and paid up share capital 59 785 77 (2006: 45 259 74) ordinary shares of Rupees 0 each Reserves total equity non-current LiaBiLities Long term financing Liabilities against assets subject to finance lease current LiaBiLities Trade and other payables Accrued markup Short term finances Current portion of long term liabilities Provision for taxation 9 0 11 2 7 8

(rupees in thousand) 2007 2006 (Restated)

1 784 700

784 700

5 6

1 597 857 28 359 567 29 957 424

452 597 9 4 82 20 594 409

1 773 820 1 773 820 926 593 131 744 5 018 664 1 341 565 230 807 7 649 373

2 982 5 0 05 84 960 46 5 26 4 5 708 42 77 28 82 7 05 5 0 066 97

total Liabilities contingencies and commitments totaL equity and LiaBiLities

9 423 193

39 380 617

0 66 26

The annexed notes form an integral part of these financial statements.

chief eXecutive officer

28

Annual Report 2007


note assets non-current assets Property, plant and equipment Long term investments Long term loans Long term deposits, prepayments and deferred cost 4 15 16 17

(rupees in thousand) 2007 2006 (Restated)

10 586 159 15 466 506 9 523 9 342 26 071 530

0 6 5 0 289 746 6 77 0 0 20 97 606

current assets Stores, spare parts and loose tools Stock-in-trade Trade debts Short term investments Loans and advances Short term deposits and prepayments Other receivables Cash and bank balances 8 9 20 2 22 2 24 25 422 428 3 106 436 831 653 8 118 459 411 270 26 395 322 839 69 607 13 309 087 47 520 00 74 026 884 4 5 426 48 794 0 525 407 47 50 250 9 74 720

totaL assets

39 380 617

0 66 26

director

Annual Report 2007

29

Nishat Mills Limited profit and Loss accountfor the year ended 30 June 2007

note saLes cost of saLes gross profit distriBution and seLLing cost administrative and generaL eXpenses other operating eXpenses 28 29 0 26 27

(rupees in thousand) 2007 2006 17 180 192 14 335 254 2 844 938 928 778 320 202 91 758 1 340 738 6 659 607 70 626 2 957 98 905 920 264 807 78 689 249 46 708 565 277 96 986 526 755 054 2 472 527 94 758 866 26 000 62 866

other operating income operating profit finance cost

1 504 200 562 710 2 066 910

2

819 267 1 247 643

share of profit in associated companies profit Before taXation provision for taXation profit after taXation earnings per share- Basic and diLuted (rupees)

571 527 1 819 170 145 000 1 674 170

4

10.48

0.22



director

0

Annual Report 2007

Nishat Mills Limited cash fLoW statement

for the year ended 30 June 2007

(rupees in thousand) 2007 2006 cash fLoWs from operating activities Profit before taxation adjustments for non-cash charges and other items Depreciation Gain on disposal of operating fixed assets Gain on sale of investment Share of profit in associated companies Amortization of deferred cost Finance cost cash fLoWs from operating activities Before Working capitaL changes cash fLoWs from 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 Other receivables increase/(decrease) in current liabilities Trade and other payables Short term finances net cash fLoWs from / (used in) Working capitaL changes cash generated from operating activities Finance cost paid Income tax paid net cash generated from operating activities 982 768 (21 081) (155 943) (571 527) 630 819 267 2 873 284 797 88 (9 458) (48 824) (527 94) 065 755 054 2 727 90 1 819 170 758 866

49 092 (103 262) 195 231 (40 837) 1 897 84 308 (32 961) 702 956 856 424 3 729 708 (838 759) (146 751) 2 744 198

(46 69) (05 782) (49 526) 2 90 8 784 (8 549) 4 876 0 89 (4 067) 2 59 2 (692 267) (96 772) 704 084

Annual Report 2007


(rupees in thousand) 2007 2006 cash fLoWs from investing activities Long term loans Long term deposits, prepayments and deferred cost Proceeds from disposal of operating fixed assets Proceeds from sale of investment Proceeds from redemption of preference shares Dividend from associated companies Investment made Fixed capital expenditure net cash used in investing activities cash fLoWs from financing activities Long term financing Repayment of long term financing Repayment of finance lease liabilities Dividend paid net cash (used in)/ fLoWs from financing activities net increase/ (decrease) in cash and cash equivaLents cash and cash equivaLents at the Beginning of the year cash and cash equivaLents at the end of the year (note 25) The annexed notes form an integral part of these financial statements. (1 214 158) (28 612) (218 772) (1 461 542) 19 357 50 250 69 607 650 000 (89 64) (4 52) (58 805) 40 0 (470 749) 520 999 50 250 (3 610) 2 391 140 000 231 712 131 594 108 565 (797 458) (1 076 493) (1 263 299) ( 2) 698 82 89 67 59 86 852 (508 4) (2 59) (2 604 864)


director

2

Annual Report 2007

statement of changes in equityfor the year ended 30 June 2007(rupees in thousand) Share capital Premium on issue of right shares 57 886 (490 264) 027 622 45 260 (45 260) 9 649 20 9 82 27 88 0 24 6 5 2 269 000 7 404 2 027 622 027 622 8 7 948 85 46 0 94 89 ( 625) 6 805 8 2 842 897 25 909 (40 640) 4 8 67 (9 649) 6 48 4 99 2 42 000 596 57 (6 49) ( 42 000) ( 07) (20 9) 1 632 866 70 888 (27 890) (45 260) ( 269 000) (00 257) 1 674 170 64 65 278 57 (24 664) (9 649) 6 48 4 99 2 596 57 Fair value reserve Reserve for issue of bonus shares Hedging reserve Capital redemption reserve fund General reserve Unappropriated Shareholders profit equity

Annual Report 2007 452 597 452 597 452 597 45 260 597 857 2 806 4 (24 664) (490 264) 2 29 86 (6 49) (40 640) 4 8 67 ( 07) 2 96 546 1 632 866 20 594 409 (27 890) ( 625) 6 805 8 042 1 674 170 29 957 424

Balance as on 0 June 2005 Effect of change in accounting policy (Note 4.5.2) Effect of error regarding investment in associates (Note 5.2)

Balance as on 0 June 2005- restated Dividend @ Rupees 2.5 per share Transfer to general reserve Fair value gain adjusted on sale of investment Fair value gain for the year Reserves adjusted against sale of investment in associated companies Share of increase in reserves of associated companies under equity method Net profit for the year

Balance as on 0 June 2006 Dividend @ Rupees .5 per share Transfer to reserve for issue of bonus shares Bonus shares issued during the year Transfer to general reserve Fair value gain adjusted on sale of investment Fair value gain for the year Share of increase in reserves of associated companies under equity method Net profit for the year

Balance as on 0 June 2007




director

Nishat Mills Limited notes to the financiaL statementsfor the year ended 30 June 2007

1.

the company and its operations Nishat Mills Limited is a public company incorporated in Pakistan under the Companies Act, 9 (Now Companies Ordinance, 984) and listed on Stock Exchanges in Pakistan. Its registered office is situated at 53-A Lawrence Road, Lahore. The company is engaged in the business of textile manufacturing and of spinning, combing, weaving, bleaching, dyeing, printing, stitching, buying, selling and otherwise dealing in yarn, linen, cloth and other goods and fabrics made from raw cotton, synthetic fibre and cloth, and to generate, accumulate, distribute and supply electricity.

2.

statement of compLiance 2.1 These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan and the requirements of The Companies Ordinance 984. Approved accounting standards comprise of such International Accounting Standards (IASs) as notified under the provisions of the Companies Ordinance, 984. Wherever, the requirements of the Companies Ordinance, 984 or directives issued by the Securities and Exchange Commission of Pakistan (SECP) differ with the requirements of these standards, the requirements of The Companies Ordinance, 984 or the requirements of the said directives take precedence. standards, interpretations and amendments to published approved accounting standards that are not yet effective The following standards, amendments and interpretations of approved accounting standards effective for annual periods beginning on or after 0 July 2007 are either not relevant to the Companys operations or are not expected to have significant impact on the Companys financial statements other than certain increased disclosures in certain cases:l

2.2

IFRS 7 Financial Instruments: Disclosures (effective for annual periods beginning on or after 0 January 2007) IAS Presentation of Financial Statements Amendments relating to Capital Disclosures (effective for annual periods beginning on or after 0 January 2007) IAS 2 Borrowing Costs (effective in case of borrowing costs relating to qualifying asset for which the commencement date for capitalization is on or after 0 January 2009) IFRIC 0 Interim Financial Reporting and Impairment (effective for annual periods beginning on or after 0 November 2006) IFRIC IFRS 2: Group and Treasury Share Transactions (effective for annual periods beginning on or after 0 March 2007) IFRIC 2 Service Concession Arrangements (effective for annual periods beginning on or after 0 January 2008)

l

l

l

l

l

4

Annual Report 2007


l

IFRIC 13 Customer Loyalty Programme (effective for annual periods beginning on or after 0 July 2008) IFRIC 14 IAS 19 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction (effective for annual periods beginning on or after 0 January 2008)

l

3.

Basis of preparation 3.1 These financial statements have been prepared under the historical cost convention except for the investments in associates stated under equity method and certain financial instruments carried at fair value as stated in note 4.5, 4.10 and 4.13 to the financial statements. critical accounting estimates and judgments The preparation of financial statements 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 Companys accounting policies. Estimates and judgments are continually evaluated and are based on historical experience, including expectation of future events that are believed to be reasonable under the circumstances. The areas where various assumptions and estimates are significant to the Companys financial statements or where judgments were exercised in application of accounting policies are as follow: Property, plant and equipment useful lives and residual value (Note 4); Provision for doubtful loans and advances (Note 22); Taxation (Note ).

3.2

4.

summary of significant accounting poLicies 4.1 Staff retirement benefits The company operates an approved funded provident fund scheme covering all permanent employees. Equal monthly contributions are made both by the company and employees at the rate of 9.5 percent of the basic salary to the fund. 4.2 taxation current The company falls in the ambit of presumptive tax regime under section 69 of the Income Tax Ordinance, 200. Provision for income tax is made in the accounts accordingly. However, provision for tax on other income is based on taxable income at the current rates after considering the rebates and tax credits available, if any. deferred Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences arising from differences between the carrying amount of the assets and liabilities in the financial statements and the corresponding tax base.

Annual Report 2007

5


Deferred tax liabilities are recognized for all taxable temporary differences. The company recognizes deferred tax assets on all deductible temporary differences to the extent that it is probable that future taxable profits will be available against which these deductible temporary differences, unused tax losses and tax credits can be utilized. Deferred tax is calculated at the rates that are expected to apply to the period when the differences reverse, based on tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is charged or credited in the profit and loss account, except where deferred tax arises on the items credited or charged directly to the equity, in which case it is included in equity. 4.3 foreign currencies These financial statements are presented in Pak Rupees, which is the Companys functional currency. All monetary assets and liabilities denominated in foreign currencies are translated into Pak Rupees at the rates of exchange prevailing at the balance sheet date or at the contracted rates, while the transactions in foreign currency during the year are initially recorded in functional currency at the rates of exchange prevailing at the transaction date or at the contracted rates. Exchange risk fee is charged to profit and loss account. The company charges all the exchange differences to profit and loss account. 4.4 property, plant, equipment and depreciation owned Property, plant and equipment except freehold land and capital work-in-progress are stated at cost less accumulated depreciation and accumulated impairment losses (if any). Cost in relation to certain property, plant and equipment signifies historical cost, applicable exchange differences on foreign currency loans (upto 0 September 2004) and directly attributable cost of bringing the assets to working condition. Borrowing cost pertaining to the construction / erection period is also capitalized as part of historical cost. Freehold land and capital work in progress are stated at cost. Subsequent costs are included in the assets carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefit associated with the item will flow to the company and the cost of the item can be measured reliably. All other repair and maintenance costs are charged to profit and loss account during the year in which they are incurred. Subject to finance lease These are stated at lower of present value of minimum lease payments under the lease agreements and the fair value of the assets acquired on lease. Aggregate amount of obligation relating to assets subject to finance lease is accounted for at net present value of liabilities. Assets so acquired are depreciated over their expected useful life at the rates mentioned in Note 4.2.

6

Annual Report 2007


depreciation Depreciation on property, plant and equipment is charged to profit and loss account applying the reducing balance method so as to write off the cost / depreciable amount of the assets over their estimated useful lives at the rates given in Note 4.. The company charges the depreciation on additions from the date when the asset is available for use and on deletions upto the date when the asset is de-recognized. The residual values and useful lives are reviewed by the management, at each financial year-end and adjusted if impact on depreciation is significant. de-recognition An item of property, plant and equipment is de-recognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset is included in the profit and loss account in the year the asset is de-recognized. 4.5 investments

4.5.1 investments in associates Associates are the entities over which the Company has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in these associates are accounted for using the equity method of accounting and are initially recognized at cost. The Companys investment in associate includes goodwill identified on acquisition, net of any accumulated impairment loss. The Companys share of its associates post-acquisition profits or losses is recognized in the income statement, and its share of post-acquisition movements in reserves is recognized in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. Distributions received from an associate reduce the carrying amount of the investment. 4.5.2 other investments Classification of an investment is made on the basis of intended purpose for holding such investment. Management determines the appropriate classification of its investments at the time of purchase. Investments other than stated in Note 4.5. are initially measured at fair value plus transaction costs directly attributable to acquisition, except for Investment at fair value through profit or loss which is measured initially at fair value. Investment at fair value through profit or loss Investment classified as held-for-trading and those designated as such are included in this category. Investments are classified as held-for-trading if these are acquired for the purpose of selling in the short term. Gains or losses on investments held-for-trading are recognized in profit and loss account.

Annual Report 2007

7


held-to-maturity investments Investments with fixed or determinable payments and fixed maturity are classified as held-to-maturity when the Company has the positive intention and ability to hold to maturity. Investments intended to be held for an undefined period are not included in this classification. Other long-term investments that are intended to be held to maturity are subsequently measured at amortized cost. This cost is computed as the amount initially recognized minus principal repayments, plus or minus the cumulative amortization, using the effective interest method, of any difference between the initially recognized amount and the maturity amount. For investments carried at amortized cost, gains and losses are recognized in profit and loss account when the investments are de-recognized or impaired, as well as through the amortization process. available-for-sale Investments intended to be held for an indefinite period of time, which may be sold in response to need for liquidity, or changes to interest rates or equity prices are classified as available-for-sale. These are sub-categorized as under: Quoted After initial recognition, investments which are classified as available-for-sale are measured at fair value. Gains or losses on available-for-sale investments are recognized directly in equity until the investment is sold, de-recognized or is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is included in profit and loss account. For investments that are actively traded in organized financial markets, fair value is determined by reference to stock exchange quoted market bids at the close of business on the balance sheet date. Un-Quoted From the current year the company has changed its accounting policy regarding the measurement of unquoted equity instruments. Now investments in equity instruments that do not have a quoted market price in an active market and whose fair value can not be reliably measured are carried at cost. Previously, these investments were measured at their break-up value considering it to be the fair value of such investments. After the recent changes in International Accounting Standard (IAS) 9 Financial Instruments: Recognition and Measurement, the management does not feel the break-up value to be reliable measure of the fair value. This change in accounting policy has been applied retrospectively and the comparative information has been restated in accordance with treatment specified in International Accounting Standard (IAS) 8 Accounting Policies, Change in Accounting Estimates and Errors. Had there been no change in this accounting policy, the carrying values of long term investments and short term investments would have been higher by Rupees 6.822 million and Rupees 24.44 million respectively and shareholders equity would have been higher by Rupees 4.26 million.

8

Annual Report 2007


4.6

inventories Inventories, except for stock in transit and waste stock/rags are stated at lower of cost and net realizable value. Cost is determined as follows: stores, spare parts and loose tools Useable stores, spare parts and loose tools are valued principally at moving average cost, while items considered obsolete are carried at Nil value. Items in transit are valued at cost comprising invoice value plus other charges paid thereon. stock-in-trade Cost of raw material, work-in-process and finished goods is determined as follows: i ) For raw materials ii) For work-in-process and finished goods Annual average basis. Average manufacturing cost including a portion of production overheads.

Materials in transit are valued at cost comprising invoice value plus other charges paid thereon. Waste stock/rags are valued at net realizable value. Net realizable value signifies the estimated selling price in the ordinary course of business less costs necessarily to be incurred in order to make a sale. 4.7 deferred costs Deferred costs already recognized are being amortized over a period of five years from the year of occurrence. From the year 2005, the company has not deferred any cost to comply with Circular No. of 2005 dated 9 January 2005 issued by SECP. 4.8 Borrowing cost Interest, mark-up and other charges on long-term liabilities are capitalized up to the date of commissioning of respective fixed assets acquired out of the proceeds of such long-term liabilities. All other interest, mark-up and other charges are recognized in profit and loss account. 4.9 revenue recognition Revenue from different sources is recognized as under: Revenue from sales is recognized on delivery of goods to customers. The Companys share of profits or losses of the associated companies after tax is included in the profit and loss account to recognize the post acquisition changes in the share of net assets of the investees. Dividend from associated companies is recognized as reduction in cost of investments as prescribed by International Accounting Standard (IAS) 28.

Annual Report 2007

9


-

Dividend on other investments is recognized when right to receive the dividend is established. Profit on deposits with banks is recognized on time proportion basis taking into account the amounts outstanding and rates applicable thereon.

4.10 financial instruments Financial instruments carried on the balance sheet include investments, long-term and short-term deposits, trade debts, loans and advances, other receivables, cash and bank balances, long-term financing, liabilities against assets subject to finance lease, shortterm finances, accrued mark-up and trade and other payables etc. Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of instrument. Initial recognition is made at fair value plus transaction costs directly attributable to acquisition, except for financial instrument at fair value through profit or loss which is measured initially at fair value. Financial assets are de-recognized when the Company loses control of the contractual rights that comprise the financial asset. The Company loses such control if it realizes the rights to benefits specified in contract, the rights expire or the Company surrenders those rights. Financial liabilities are de-recognized when the obligation specified in the contract is discharged, cancelled or expired. Any gain or loss on subsequent measurement (except available for sale investments) and de-recognition is charged to the profit and loss account currently. The particular measurement methods adopted are disclosed in the following individual policy statements associated with each item and in the accounting policy stated in note 4.5.2. trade and other receivables Trade debts and other receivables are carried at original invoice value less an estimate made for doubtful debts based on a review of all outstanding amounts at the year end. Bad debts are written off when identified. Borrowings Borrowings are recognized initially at fair value and are subsequently stated at amortized cost. Any difference between the proceeds and the redemption value is recognized in the profit and loss account over the period of the borrowings using the effective interest method. trade and other payables Liabilities for trade and other amounts payable are initially recognized at fair value, which is normally the transaction cost. 4.11 provisions Provisions are recognized when the company has a legal or constructive obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and a reliable estimate of the amount can be made. 40 Annual Report 2007


4.12 impairment The carrying amounts of the Companys assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount of such asset is estimated. An impairment loss is recognized wherever the carrying amount of the asset exceeds its recoverable amount. Impairment losses are recognized in profit and loss account. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the assets recoverable amount since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in profit and loss account. 4.13 Derivative financial instruments Derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and subsequently re-measured at fair value. All derivative financial instruments are carried as assets when fair value is positive and liabilities when fair value is negative. Any change in the fair value of the derivative financial instruments is taken to the profit and loss account. 4.14 off setting Financial assets and financial liabilities are set off and the net amount is reported in the financial statements when there is a legally enforceable right to set off and the company intends either to settle on a net basis, or to realize the assets and to settle the liabilities simultaneously. 4.15 cash and cash equivalents Cash and cash equivalents comprise of cash and bank balances. 4.16 related party transactions and transfer pricing Transactions and contracts with the related parties are carried out at an arms length price determined in accordance with comparable uncontrolled price method. 4.17 dividend and transfer of reserve. Dividend and transfers among reserves are treated as post balance sheet nonadjusting events hence do not qualify for provision in the financial statements as per the requirements of IAS-10 Events after the balance sheet date. These transfers are, therefore, recorded in the next years financial statements.

Annual Report 2007

4


(rupees in thousand) 2007 2006 5. issued, suBscriBed and paid up share capitaL 67 762 264 (2006: 67 762 264) ordinary shares of Rupees 0 each fully paid up in cash 7 252 280 (2006: 7 252 280) fully paid ordinary shares of Rupees 0 each issued for consideration other than cash 54 77 7 (2006: 40 245 99) ordinary shares of Rupees 0 each issued as fully paid bonus shares 677 623 677 62

372 522

72 522

547 712 1 597 857

402 452 452 597

5.1

Ordinary shares of the company held by associated undertakings are as follows: (numBer of shares) 2007 2006 D.G. Khan Cement Company Limited Adamjee Insurance Company Limited 20 157 391 868 035 21 025 426 8 24 90 8 24 90

(rupees in thousand) 2007 2006 (Restated) 6. reserves Composition of reserves is as follows: capital Premium on issue of right shares Capital redemption reserve fund Fair value reserve revenue General Un appropriated profit 1 027 622 110 214 18 173 948 19 311 784 7 404 132 1 643 651 9 047 783 28 359 567 027 622 82 0 94 89 04 792 6 5 2 70 888 7 87 020 9 4 82

42

Annual Report 2007


(rupees in thousand) 2007 2006 7. Long term financing-secured Long term financing utilized under markup arrangements are as under: National Bank of Pakistan United Bank Limited (Note 7.1) Habib Bank Limited Habib Bank Limited (Note 7.2) Saudi Pak Industrial and Agricultural Investment Company (Private) Limited (Note 7.3) Term Finance Certificates (Note 7.4) Citibank N.A. (Note 7.5) Standard Chartered Bank (Pakistan) Limited (Note 7.6) ABN Amro Bank (Note 7.7) United Bank Limited (Note 7.8) Allied Bank Limited (Note 7.9) Allied Bank Limited (Note 7.10) Habib Bank Limited (Note 7.11) Hongkong Shangai Banking Corporation (Note 7.2) Less: Current Portion (Note 12) 75 000 11 875 8 334 599 400 312 500 133 333 129 412 187 500 100 000 525 000 800 000 200 000 3 082 354 1 308 534 1 773 820 7.1 45 000 50 000 75 000 59 75 4 667 999 000 47 500 200 000 76 470 262 500 200 000 600 000 800 000 250 000 4 296 52 4 59 2 982 5

This is secured against first pari passu charge on all present and future fixed assets of the company, including land, building and machinery and personal guarantee of the chief executive officer. It carries markup @ 6 percent, payable quarterly. The finance is repayable in eight equal semi annual installments commenced from December 2004. This is secured against first exclusive charge on fixed assets of the company. It carries markup @ 50 bps above six months KIBOR, payable on quarterly basis. The finance is repayable in sixteen equal quarterly installments commenced from 0 November 200. This is secured against ranking hypothecation charge on plant and machinery and personal guarantee of chief executive officer. It carries mark up equal to State Bank of Pakistan discount rate with 7.50 percent floor, payable on quarterly basis. The finance is repayable in twelve equal quarterly installments commenced from 25 December 2004. These are issued to a consortium of banks and secured against first pari passu hypothecation charge on fixed assets of the company excluding land and building with 25 % margin. It carries profit @ 1.70 percent above weighted average market

7.2

7.3

7.4

Annual Report 2007

4


yield of the last three auctions of 6 months Treasury Bills, payable semi annually. The finance is redeemable in ten semi annual installments commenced from 16 March 2004. The first five installments are of Rupees 0.200 million each and the remaining five installments are of Rupees 199.800 million each. 7.5 This is secured against first ranking pari passu charge on all present and future fixed assets, excluding land and building, with 25 % margin on facility amount. It carries markup @ 6 percent, payable on semi annual basis. The finance is repayable in eight equal semi annual installments commenced from 25 March 2006. This is secured against first exclusive hypothecation charge on plant, machinery and equipments installed at Sheikhupura (Bhikki). It carries markup @ 6 percent, payable on quarterly basis. The finance is repayable in six equal semi annual installments commenced from 0 September 2006. This is secured against first pari passu charge on the present and future fixed assets of the company excluding land and building. It carries markup @ 7 percent, payable on quarterly basis. The finance is repayable in seventeen equal quarterly installments commenced from 5 February 2006. This is secured against mortgage charge or charge on the immovable property and machinery of the company. It carries markup @ 7 percent, payable at quarterly basis. The finance is repayable in eight equal semi annual installments commenced from 0 June 2006. This is secured against first exclusive charge on unencumbered specific machinery for Rupees 267 million. It carries markup @75 bps above six months KIBOR, payable on quarterly basis. The finance is repayable in four semi annual equal installments commenced from 24 November 2006.

7.6

7.7

7.8

7.9

7.10 This is secured against first Joint pari passu hypothecation charge on plant and machinery of the company for an amount of Rupees 800 million. Facility will be available against registered ranking charge on fixed assets of the company. It carries markup @ 7 percent, payable on quarterly basis. The finance is repayable in sixteen quarterly installments commenced from 24 January 2007. 7.11 This is secured against first pari passu hypothecation charge of Rupees 1,067 million on plant and machinery of the company excluding specific and exclusive charges . It carries markup @ 7 percent, payable on quarterly basis. The finance is repayable in eight equal semi annual installments commencing from 07 July 2007. 7.12 This is secured against registered ranking charge on plant and machinery of the company. It carries markup @ 7 percent, payable on semi annual basis. The finance is repayable in ten equal semi annual installments commenced from 0 December 2006.

44

Annual Report 2007


8.

LiaBiLities against assets suBJect to finance Lease The rate of interest used as the discounting factor, implicit in leases is .75 percent per annum (2006: 8.50 to .75 percent per annum). The amount of future payments and periods during which they fall due are: (rupees in thousand) 2007 2006 year ended on 30 June 2007 2008 Less: Un-amortized finance charges Less: Current portion (Note 12) 35 217 35 217 2 186 33 031 33 031 8.1 4 46 5 27 69 56 7 920 6 64 28 62 0

Rentals are paid in monthly/quarterly equal installments. Taxes, repairs and insurance costs are to be borne by the company. The company shall have no right to terminate the lease agreements and if the lease agreements are terminated, the company shall pay entire amount of rentals for un-expired period of lease agreements. Lease agreements are renewable at the option of lessors on such terms as may be agreed upon. Liabilities are secured against personal guarantee of directors and demand promissory notes. Reconciliation of minimum lease payments and their present value is given below: 2007 minimum present value lease of minimum payments lease payments (rupees in thousand) 2006 Minimum Present value lease of minimum Payments lease Payments 4 46 5 27 69 56 28 62 0 6 64

8.2

Due within one year Due after one year but not later than five years

35 217 35 217

33 031 33 031

Annual Report 2007

45


(rupees in thousand) 2007 2006 9. trade and other payaBLes Creditors (Note 9.) Advances from customers Securities from contractors Interest free, repayable on completion of contracts Income tax deducted at source Workers welfare fund Other accrued liabilities Dividend payable Workers participation fund (Note 9.2) 386 481 36 028 9 659 3 547 25 462 382 207 18 591 64 618 926 593 9.1 9.2 485 9 0 802 6 204 689 49 5 9 47 67 006 960 46

Creditors include an amount of Rupees 4.79 million (2006: Rupees 9.520 million) payable to the related parties. Workers participation fund Balance as at 0 July Interest accrued thereon (Note 2) Add: Profit allocated for the year (Note 30) Less: Payments made to trust Payments made to Government 67 006 2 003 64 618 133 627 69 006 3 69 009 64 618 65 675 620 67 006 6 0 67 0 2 85 69 295 67 006

9.2.1 The company retains workers participation fund for its business operations till the date of allocation to workers. Interest is paid at prescribed rate under the Companies Profit (Workers Participation Act, 1968) on funds utilized by the company till the date of allocation to workers. 9.2.2 Provision for workers participation fund against share of profit in associated companies has been made to the extent of dividend received from these associated companies. 10. accrued mark-up Mark-up accrued on long term financing Markup accrued on short term finances 79 456 52 288 131 744 8 07 70 6 5 26

46

Annual Report 2007


(rupees in thousand) 2007 2006 11. short term finances from banking companies Secured (Note .) Temporary bank overdraft (Note .2) 4 852 084 166 580 5 018 664 4 206 525 09 8 4 5 708

11.1 These are secured against joint pari passu hypothecation charge on all present and future current assets, all marketable securities, instruments, personal guarantees of directors and a second charge on fixed assets of the company. These form part of total credit facility of Rupees 4 285 million (2006: Rupees 4 25 million). Mark-up is charged at the rate of Paisas 5.59 to 6.74 per Rupees 000 per day (2006: 8.4 to 26.47 per Rupees 1 000 per day) and mark-up/profit on export refinance at the rate of 6.90 to 7 percent (2006: 7.90 to 8 percent) per annum. 11.2 This represents the unsecured overdrawn bank balances from banking companies and carries mark-up at the rate of paisas 26.2 to 6.74 per Rupees 000 per day (2006: Paisas 2.86 to .4 per Rupees 000 per day). 12. current portion of Long term LiaBiLities Long term financing (Note 7) Liabilities against assets subject to finance lease (Note 8) 1 308 534 33 031 1 341 565 13. contingencies and commitments contingencies i) The company is contingently liable for Rupees 6.89 million (2006: Rupees 6.89 million) on account of central excise duty not acknowledged as debt as the cases are pending before Court. Guarantees of Rupees 669.944 million (2006: Rupees .9 million) have been given by the banks of the Company to Sui Northern Gas Pipelines Company Limited against gas connections, Shell Pakistan Limited against purchase of furnace oil, Wartsila Finland for power project and collector of customs. Companys share in contingencies of associated companies is Rupees 249.40 million (2006: Rupees 24.942 million). 4 59 28 62 42 77

ii)

iii)

commitments i) ii) Contracts for capital expenditure are approximately amounting to Rupees 7.882 million (2006: Rupees 77.967 million). Letters of credit other than for capital expenditure are amounting to Rupees 458.158 million (2006: Rupees 84.84 million). 47

Annual Report 2007


(rupees in thousand) 2007 2006 14. property, pLant and equipment Operating fixed assets (Note 14.1) Assets subject to finance lease (Note 14.2) Capital work in progress (Note 4.) 10 309 611 71 019 205 529 10 586 159 14.1 operating fiXed assets(rupees in thousand) freehold Buildings on plant and electric factory furniture, Land freehold machinery installations equipment fixtures Land and Office equipment cost As at 0 July 2005 Additions Deletions As at 0 June 2006 Additions Deletions As at 0 June 2007 accumulated depreciation As at 0 July 2005 Charge for the year Adjustments As at 0 June 2006 Charge for the year Adjustments As at 0 June 2007 net Book value At 0 June 2007 At 0 June 2006 Depreciation rate (%age) 70 784 62 24 672 25 49 046 0 7 584 876 6 5 00 0 29 88 245 425 0 7 749 52 02 0 59 507 9 759 0 56 622 4 804 20 0 09 6 8 98 0 980 802 20 892 0 694 44 284 (2 62) 24 66 888 67 60 2 (8 26) 4 08 074 752 288 (242 5) 4 87 8 29 546 25 902 (87) 245 06 29 4 (647) 27 827 5 98 4 906 () 56 884 6 785 (85) 6 284 99 478 94 () 2 67 5 79 (24) 28 8 84 009 2 09 (4 04) 90 944 26 602 (0 4) 87 42 5 2 98 787 056 (95 7) 5 95 28 975 6 (276 6) 6 64 28 209 728 52 55 62 24 8 54 70 784 2 058 88 0 044 62 9 922 844 007 - (245 544) 2 250 740 0 64 084 667 997 (2 886) 2 0 92 (44 00) 455 48 5 58 (580) 490 486 75 96 (784) 565 665 9 955 4 988 (6) 08 907 28 587 (46) 7 0 220 42 2 020 (2) 252 40 5 697 (282) 287 845 67 804 60 874 (22 90) 205 748 84 675 (46 69) 244 054 250 82 909 (269 092) 4 68 005 8 (95 082) 6 92 99 vehicles total

8 98 0 78 624 2 4 49 0 6 5

2 95 85 2 402 707

14.1.1 Depreciation charge for the year has been allocated as follows: (rupees in thousand) 2007 2006 Cost of sales (Note 27.2) Distribution and selling cost (Note 28) Administrative and general expenses (Note 29) 932 770 2 943 39 450 975 163 48 752 822 2 542 692 787 056

Annual Report 2007


14.1.2

disposaL of operating fiXed assetsqty. nos. cost accumulated depreciation Book sale value proceeds mode of disposal

(rupees in thousand) particulars of purchaser

description

Building Building Material plant and machinery Ring frames Cards Ring frames Shearing and cropping machine Ramisch calender machine Rolling machines Zimmer rotary machine 4 2 10 1 2 1 8 296 65 20 451 7 5 15 844 2 721 48 751 5 832 28 14 694 5 984 10 199 2 401 39 140 2 464 45 5 757 67 5 645 320 9 611 2 600 450 6 500 525 7 252 320 7 350 Negotiation Negotiation Negotiation Negotiation Negotiation Negotiation Negotiation Colony Textile Mills Ltd, Bhakkar. Arshaq Trading Corporation, Basement Shadab Plaza, Chiniot Bazar, Faisalabad. Manzoor Textile Mills Limited, Manzoor Hytes, 6-Street, Merry Park, Gulberg-III, Lahore. Arshaq Trading Corporation, Basement Shadab Plaza, Chiniot Bazar, Faisalabad. Liberty Mills Limited, A/51-A, SITE Karachi. Universal Textiles, Karachi. Millinnium Textile (Pvt) Limited, 5 K.M Off, Ferozpur Road, Near Kahna Kacha, Railway Station, Lahore. Husnain Textile House # 006, Block-D, Ghulam Muhammad Abad, Faisalabad. Gul Ahmed Textile Mills Limited, Plot #3/A, Landhi Industrial Area, Karachi. Chem Tech International, 9-Chenab Market, Susan Road, Madina Town, Faisalabad. Surya Chakra Power Corporation Limited, Plot # 1115, Road # 54, Jubilee Hills, Hyderabad, India. Usha Daya Energy & Project Consultants (Pvt) Ltd, 3-5-944/ A,G-5, Kubera Towers, Hyderabad500029, India. Gulf Nishat Apparel Limited, 7.K.M. Nishat Avenue Off 22.K.M. Ferozepur Road, Lahore. Mr. Sanaullah, Ferozwala, Sheikhupura. Hira Terry Mills Limited, 44-E/1, Gulberg III, Lahore. Mr. Mohammad Amjad, Factory Area, Faisalabad. Lot 2 886 2 362 524 550 Negotiation Mr. Muhammad Din Contractor S/O Aashiq Hussain, Faisalabad.

Benninger bleaching plant Mercerizing plant Lab equipments Mak engine Mak engine

1 Lot 1

9 688 21 461 1 655 4 545 57 702

2 498 17 839 1 258 74 904 34 917

7 90 3 622 397 9 64 22 785

6 00 5 880 1 600 62 06 7 367

Negotiation Negotiation Negotiation Negotiation Negotiation

Boiler Knotting machine Furnace oil tank electric installation Cables factory equipment Cloth trolleys vehicles Suzuki Baleno FDX-7820 Toyota Corolla LRB-2078

1 1

3 812 724 472

1 586 540 220

2 226 84 252

2 500 450 275

Negotiation Negotiation Negotiation

5 065 (Meters)

450

86

64

64

Negotiation

46

85

76

76

Negotiation

Mr. Farrukh Altaf, Bismillah Market, Samundri Road, Faisalabad.

1

709 1 150

505 742

204 408

40 639

Negotiation Negotiation

Mr. Zahid Rashid,House # P -287, Street # 9, Naseerabad Nishtaabad, Faisalabad. Argon Enterprises, House # 7-B III, Gulberg III, Lahore.

Annual Report 2007

49


(rupees in thousand) description qty. nos. Suzuki Baleno LXW-5607 Suzuki Baleno FDX-877 Toyota Hi Ace Van LXP-7679 Suzuki Alto LRA-9635 1 1 1 709 704 1 867 479 506 50 1 333 312 203 20 534 167 421 90 890 315 Negotiation Negotiation Negotiation Negotiation Mr. Gul Perviz Tarrad,Kohlo Tarrad, Tehsil & Distt Hafizabad. Mr. Nauman Anwar Khan, House # 6-C,Shami Road, Civil Lines, Sheikhupura. Mr. Mohammad Qasim, House # 104, New Officer Colony, Sadar Bazar, Lahore. Mr. Mohammad Naeem, House 280-A, Street # , Near Munshi Quarter, Metropolitan Road, Lahore. Mr. Mohammad Imran Khan, House # 4-D, Satelite Town, Gujranwala. Mr. Azhar Munawar Khan, House # 6, Block # 4, Karim Park, Ravi Road, Lahore. Mr. Adil Butt,House # 385, Wapda Town, Block-C-2, Gujranwala. Mr. Khalid Javaid, House # P-2065, Mansoor Abad, Faisalabad. Mr. Sheraz Hussain, House # 19, Army Housing Scheme, Defence, Lahore. Mian Mohammad Hanif, House # 549-E, Punjab Housing Society, Lahore. Syed Shahid Raza Zaidi,House # 174, Mohallah Lahori Gate, Chiniot. Mr. Naeem Siddiqui, House # /H, Siddiqui Canal Road Link Society, New Campus, Lahore. Gulf Nishat Apparel Limited, 7.K.M. Nishat Avenue Off 22.K.M. Ferozepur Road, Lahore. Mr. Maqsood Ahmed, House # 44/, Satelite Town, Block ZChiniot, Distt. Jhang. Syed Shehzada Khurram, House # 4 G -, Block B, Rehman Garden, Lahore. Mr. Zahid Ali Khan, House # 34, Main Road, Samanabad, Lahore. Mr. Khalid Chohan, House # 667, Street # , Mughal Pura, Haji Abad, Faisalabad. Mr. Mohammad Afzal, House # 472-A Mohallah Mehr Fiaz Mughal Pura Fateh Gar Lahore. Mr. Kamran Shafiq Hashmi, House # LDA-48, Begum Pura, Lahore. Mr. Khurram Farooq,House # 112, Ravi Park, Ravi Road, Lahore. Mr. Junaid Ihsan, House # , CBlock, Gulshane-E-Ravi, Lahore. Argosy Enterprises,House # 18 K, Gulberg, Lahore. Mr. Mushtaq Ahmed,House # 32-B, Punjab Housing Society, Lahore. Mr. Sharif Hussain, Coat Lahmal, Post Office Farook, Tehsil Sahiwal, Distt. Sargodha. cost accumulated depreciation Book sale value proceeds mode of disposal particulars of purchaser

Suzuki Bolan Van

Annual Report 2007

Documents

nabiha shahnawaz

ace van lxp

basement shadab

faisal ehsan

nishat mills

muhammad nawaz

pari passu

chief executive