Annual Report 2010

VISION STATEMENT
To be recognized internationally and locally as dynamic, quality conscious and ever progressive Textile Product manufacturer in the Textile Industry of Pakistan

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Mahmood Textile Mills Ltd.

MISSION
Mahmood Group is committed to: Be ethical in its practices. Excel through continuous improvement by adopting most modernized technology in production. Operate through professional Team work. Retain our position as leading and innovative in the Textile Industry. Achieve Excellence in the quality of our product. Be a part of country's economic development and social Prosperity.

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Annual Report 2010

CONTENTS
Company Information Notice of Meeting Directors' Report Key Operating/Financial Highlights Statement of Compliance of Corporate Governance Auditors' Review Report on Statement of Compliance of Corporate Governance Auditors' Report Balance Sheet Profit & Loss Account Cash Flow Statement Statement of Changes in Equity Notes to the Accounts Pattern of Share Holding Form of Proxy 04 05 11 17 18 20 21 22 23 24 25 26 61 63

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Mahmood Textile Mills Ltd.

COMPANY INFORMATION
Board of Directors:
Khawaja Muhammad Masood Khawaja Muhammad Iqbal Khawaja Muhammad Ilyas Khawaja Muhammad Younus Jalal-ud-Din Roomi Mrs. Mehr Fatima Muhammad Muzafar Iqbal Chairman Chief Executive Officer Director Director Director Director Director

Bankers
MCB Bank Ltd. United Bank Limited Habib Bank Limited Allied Bank Limited Bank Al-Habib Limited Meezan Bank Ltd.

Mills
Mahmoodabad, Multan Road, Muzaffargarh. Masoodabad, D.G. Khan Road, Muzaffargarh.

Chief Financial Officer
Muhammad Amin Pal F.C.A.

Company Secretary
Ghulam Mohayuddin

Registered Office
Mehr Manzil, Lohari Gate, Multan. Tel.: 061-111-181-181 Fax: 061-4511262 E-mail: info@mahmoodgroup.com

Auditors
Hameed Chaudhri & Co Chartered Accountants H M House, 7-Bank Square, Lahore.

Share Registrar
Hameed Majeed Associates (Pvt.) Ltd. H M House, 7-Bank Square, Lahore.

Audit Committee
Khawaja Muhammad Ilyas Khawaja Muhammad Younus Muhammad Muzafar Iqbal Chairman Member Member

www.mahmoodgroup.com

Stock Exchange Listing
The Mahmood Textile Mills Limited is a listed Company and its shares are traded on Karachi Stock Exchanges in Pakistan.

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Annual Report 2010

NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that 40 Annual General Meeting of the Company will be held on Saturday, 30 October, 2010,at 11.00 A.M., at its Registered Office, Mehr Manzil, O/s Lohari Gate, Multan to transact the following business: ORDINARY BUSINESS 1. 2. 3. 4. To confirm the Minutes of Annual General Meeting held on 31 October, 2009. To receive consider and adopt the Audited Accounts for the year ended 30 June, 2010 together with Director's and Auditor's Reports thereon. To approve payment of Cash Dividend @ 60% (Rs.6.00 per ordinary Share of Rs. 10/- each) for the year ended 30 June, 2010 as recommended by the Board of Directors. To appoint Auditors for the year 2010-2011 and to fix their remuneration. The present Auditors M/s. Hameed Chaudhri & Company, Chartered Accountants, Lahore being eligible have offered themselves for re-appointment. To transact any other business with the permission of the Chair.
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SPECIAL BUSINESS 6. To consider and if thought fit to pass with or without modifications the following resolution:

"Resolved that consent and approval of the Company be and is hereby accorded under Section 208 of the Companies Ordinance, 1984 for provision of short term loan/advances aggregated amount of Rs. 100.000(M) each to Associated Companies @ one month KIBOR Plus 1.5 % markup. It is further resolved that the Chief Executive of the Company be and is hereby authorized to negotiate and take any action on behalf of the Company as may be deemed necessary In this regard". by order of the board of directors Sd/Ghulam Mohayuddin Company Secretary Multan. Date: 06 October, 2010.
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Notes:i) The Share Transfer Books of the Company will remain Closed from 20 October to 30 October, 2010 (Both days inclusive). ii) A Member entitled to attend and vote at the meeting may appoint another Member of the Company as a proxy to attend and vote instead of him/her. Proxy Form duly completed should reach the Registered Office of the Company at least 48 hours before the time of Meeting. iii) Any individual beneficial owner of CDC entitled to attend and vote at this Meeting must bring his/her CNIC or Passport. Representative of Corporate Member should bring the usual documents required for such purpose. iv) Members are requested to notify immediately any Change in their addresses.
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STATEMENT UNDER SECTION 160(1)(b) OF THE COMPANIES ORDINANCE.81 (RFL) 19. It is temporary transaction.) Ltd.02 (REL (Pvt. Last year average Loan amount of Rs. 3) Roomi Fabrics Ltd.Mahmood Textile Mills Ltd. 45.1984: 1) Name of Investee Company together with the amount and purpose of loan or advance in case any loan had already been provided or loan has been written off to the said Investee company. Temporary short term loan/advance adjustable within one year on revolving basis. 2) A brief about the financial position of the Investee Company on the basis of last published financial Statements: 3) Rate of mark up to be charged: 4) Particulars of collateral security to be obtained from borrower and. 4) Roomi Enterprises(Pvt) Ltd.000(M) was given to Roomi Enterprises(Pvt) Limited.70 (MFL) 7. the complete detail of said loan: 1) Masood Fabrics Ltd. which will be adjusted within short period. To facilitate and expedite commercial transaction of the Company amongst the Associated Companies.50 (MSM) and Rs. 6 . 8. The Company profitability will increase by providing surplus and idle funds to the Associated Companies At about 13-15% interest rate instead of investing this fund temporarily at 6. 2) Masood Spinning Mills Ltd. which has been fully recovered along with interest during the year. Earning per share is there Rs. 52. justification thereof: 5) Source of funds from where loan or advance will be given: 6) Repayment Schedule: From surplus reserve/funds of the Company. No needed.8% with Commercial Banks.5% markup. Accounts have not been published as investee Companies are not listed on any Stock Exchange. as per latest account. @ one month KIBOR Plus 1. if not needed. 7) Purpose of loans and advances: 8) Benefits likely to accrue to the Company and the Shareholders from loans and advances.

THE MOST BENEFICENT.092 38. 6. Later on cotton prices increased tremendously and the prices of the yarn & fabrics also increased.375 2.147.199 Million against Rs.981 Unappropriation profit B/F 1. The management made good efforts and used all resources to procure quality cotton from local & international markets at competitive prices.86 45 40 35 30 25 20 15 10 5 0 Earning Per Share 38.685.86 earned in previous year.304) 2.619.843 Million earned last year. 38.516.000. This situation helped to obtain good prices of the yarn & fabrics in the international market.486. Further economies of Europe and America are improving and are gradually overcoming the previous recession & crunch. OPERATING PERFORMANCE With the blessing and grace of ALMIGHTY ALLAH the Company during the year earned appreciable profit of Rs.199.092.021 1.182. 6 per share (2009@ 4 per share) Proposed stock dividend (2009 52.Annual Report 2010 DIRECTORS' REPORT TO THE SHAREHOLDERS IN THE NAME OF ALLAH. 11.03 11.463.843.811 1.939.685.000) (39. The scenario overall moved towards achieving better operating results of the Company.356 Proposed cash dividend @ Rs.604.376.960) JD 800 600 400 200 0 -200 2006 2007 Profit Before Tax 2008 2009 2010 Profit After Tax - (52.55 in the current year from Rs. 578.86 2009 2010 2006 2007 2008 11 .619.55 6.790 102.527. Earning per share increased to Rs. The operating results alongwith appropriations are summarized as under:2010 2009 Rupees Rupees Profit after taxation 578. 102.55 The main factor which contributed to achieve encouraging results was due to timely purchase of cotton at good average price for the whole year. THE MOST MERCIFUL Your Directors cordially welcome you to the 40 Annual General Meeting and place before you Annual Report alongwith audited accounts of the Company for the year ended June 30.225%) Balance retained earning Earning per share (90. 2010 which reflects the affairs of the Company.71 2.811 1.71 6.

The State Bank has recently enhanced discount rate contrary to the aspirations of business community. 7500 per maund at the start of the cotton season 2010-2011. Uncertainty is prevailing to a great extent and no direction is available at the moment. Survival of our Textile industry which is contributing overwhelmingly towards economic activities of the country will remain at stake unless we produce good quality of cotton in abundance. whereas prices of cotton are also un-stable in the international market. weaving & value added industry should be in place at the start of the cotton season and subsequently no change should be made during the year in any manner. Exporters were disturbed regarding fulfillment of export commitment. This harsh decision in all respect was against all norms of business ethics. The Textile industry is operating round the clock throughout the year and even Net Turnover 2010 2009 2008 2007 2006 0 1000 2000 3000 3839 4000 5000 6000 7000 8000 9000 5073 4583 6811 8136 Source of Revenue 2010 Local Sales Export Sales Other Income 12 . during the mid of reporting year by fixing quota and levying 15% duty on yarn export. the industry will be unable to produce favourable results. We suggest that permanent export policies for spinning.Mahmood Textile Mills Ltd. Threats & challenges to the Industry The availability of good quality cotton play basic and vital role in the entire vertical and horizontal herarcy of the textile products right from ginning/spinning to value added goods. The Textile Sector is observing serious financial threat due to continuous increase in mark up rates. This internal and external scenario is creating choas in the cotton market and prices of cotton in local market have reached to alarming high level of Rs. The recent flood disaster in the country was so severe that all the economic activities of the country have been paralyzed. large area of cotton belt in southern Punjab and Sind has come under the grip of this flood and cotton crops have been damaged. All of a sudden many containers were stuck up at Karachi Port due to quota imposition. Textile industry has to obtain long term & short term financing for their capital investment and cotton procurement for the whole year. But unfortunately we are still unable to produce cotton to such an extent to meet demand of our industry comfortably. If debt servicing are not rationalized. It is worth mentioning that unethical & illogic attitude was adopted by the Govt. The Government should take every measure on war footing to improve production of cotton in the country. Another burning issue for the whole community is load shedding of electricity & sui gas.

BMR and expansion is made to cater the need of our valued customers and to get quality production in economical way. This situation will open the door of corruption and harassment to genuine sales tax payer. This is the first most efficient IPP in Pakistan running on natural gas. 1. Utilization of Revenue 2010 119 269 190 340 68 6. This investment has been made out of surplus earning of the Company and will be expected to yield more than 20% return. if zero rating facility available to this industry is withdrawn billion of rupees will be stuck up in the refund and it will promote flying invoices culture resulting in excess refund than actual receipt of sales tax by the department.Annual Report 2010 one hour load shedding is causing million of rupees loss to the sector. 11/.per share(including Rs. Subsequently Company has further acquired 9.300 million in Plant & Machinery to upgrade existing set up.00 premium Per share) of Orient Power Company (Pvt) Ltd.000 million shares at Rs. Orient Power Company has installed & operating 225 MW gas based Power Plant near Lahore. CAPITAL INVESTMENT It is a part of Company's strategic policy to review technical aspects regularly. Thus Zero rated regime must continue for Textile industry. Finance Cost Distribution Exp Taxation Dividends 60 50 40 30 20 10 0 2006 0 2007 Cash Dividend 0 2008 15 0 2009 40 40 52. we emphasize to run our plant with most modern techniques.500 Million to purchase 27. The Govt.2257 40 60 0 2010 Stock Dividend 13 . Existing Sales Tax Regime is being replaced by the Reformed General Sales Tax. DIVIDEND PAY OUT According to Dividend pay out strategy the management wish to pay good return to the share holders of the Company keeping in view profitability for the year.628 Cost of Sales Other Operating Administrative Exp.. 208. 302. should redress this issue on priority basis and resolve load shedding problem in order to keep on running wheel of the industry smoothly. resultantly cost of production is becoming uncompetitive in the international market. so that we can stand at better edge in the stream of severe competition at local and international market.500 million shares @ Rs 11/. Inflation rate is constantly rising in the country and it is having severe impact on all input cost alongwith overheads and administrative expenses. This year Company has made investment of Rs. The Company during the year has also made investment of Rs. commercial operation has been started and it is now operating at full capacity.per share.

Board has recommended to pay cash dividend @ Rs. Chartered Accountants retire and being eligible offer themselves for reappointment. relevant for the year ended 30 June 2010 have been duly complied with. International Accounting Standards. FUTURE OUTLOOK Keeping in view above mentioned submission it is difficult to predict any definite conclusion about the performance of the Company in future. JD Assets 2010 1. as applicable in Pakistan have been followed in preparation of financial statements. A statement to this effect is annexed with the report. PATTERN Pattern of share holding is annexed and detail have been submitted according to the requirement of Code of Corporate Governance and Section 236 of the Companies Ordinance 1984.672 7 Current Assets Long Term Investments & Deposits for Shares 562 Long Term Deposits Fixed Assets CORPORATE GOVERNANCE The various information and statements as required by the Code are given below: a) b) Proper books of accounts have been maintained by the Company.00 per share this year which will be put up in the Annual General Meeting for final approval. the results of its operations. The 1956 2250 Equity & Liabilities 2010 c) 120 689 Long Term Liabilities Equity Current Liabilities Deferred Liabilities d) 14 . In these circumstances Government should evolve business friendly policies for smooth running of the industry. cash flow and changes in equity. AUDITORS The present Auditors M/S Hameed Chaudhri & Co. COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE The requirements of the Code of Corporate Governance set out by the Karachi Stock Exchange in its listing Rules. Financial statement prepared by the management of the Company present fairly its state of affairs. Appropriate accounting policies have consistently been applied in preparation of financial statement. 6.Mahmood Textile Mills Ltd.774 2.

charges except for those discussed in the financial statements. There are no outstanding statutory payments due on account of taxes. duties. During the year. e) f) The company is confident to continue as a progressive concern. Audit Committee has been established and is working satisfactorily. 1711 1624 2006 2007 2008 2009 2010 2250 Equity 1552 g) h) 1694 i) j) ACKNOWLEDGMENT Your Directors would like to thank the workers. 2010 15 .Annual Report 2010 system of internal control is sound in design and has been effectively implemented and monitored. There has been no material departure from the best practices of corporate governance as detailed in the listing regulations. CEO. staff and officers of your Company for their efficient work and dedicated efforts to achieve such marvelous results of the reporting year and hope their wholehearted support will continue in future with the same spirit and zeal. there is no trade reported in the shares of the company. CFO. carried out by Directors. For and on behalf of the Board (Khawaja Muhammad Masood) Chairman Multan Dated: 5th October. The process of review will continue and any weaknesses in control will be overcome. Key financial data for last six years is annexed. Company Secretary and their spouses and minor children.

5. Name 1. 7. 2010 Sr. 2. Khawaja Muhammad Masood Khawaja Muhammad Iqbal Khawaja Muhammad Ilyas Khawaja Muhammad Younus Jalal-ud-Din Roomi Muhammad Muzaffar Iqbal Mrs. 4. Mehr Fatima Designation Chairman CEO Director Director Director Director Director Meeting Held 4 4 4 4 4 4 4 Meeting Attended 4 4 4 4 4 4 4 16 . DIRECTORS ATTENDANCE AT BOARD MEETINGS From July 1st 2009 to June 30.Mahmood Textile Mills Ltd. 6. No. 3.

056 3.666 1.924 4.418 1.956 5.182 562 7 2.621 FINANCED BY: EQUITY LONG TERM LIABILITIES DEFFERED LIABILITIES CURRENT LIABILITIES TOTAL FUNDS INVESTED 2.552 550 33 1.Annual Report 2010 KEY OPERATING/FINANCIAL HIGHLIGHTS Rupees in million 2010 BALANCE SHEET ASSETS : FIXED ASSETS LONG TERM INVESTMENTS AND DEPOSITS FOR SHARES LONG TERM DEPOSITS CURRENT ASSETS TOTAL ASSETS 2009 2008 2007 2006 2005 (Nine months) 1.249 17 .517 4.743 134 4 1.418 273 4 2.015 1.604 5.750 3.093 6.261 2.736 1.624 656 93 1.972 4.774 1.587 3.136 933 646 578 60% 2.264 4.756 1.743 1.621 PROFIT AND LOSS: SALES .384 3.297 253 4 1.694 602 63 1.839 280 178 110 40% 1.NET OPERATING PROFIT PROFIT BEFORE TAXATION PROFIT AFTER TAXATION CASH DIVIDENDS PROFIT C/F 8.878 245 210 174 40% 1.583 411 247 177 40% 1.445 2.632 1.441 4.387 3.015 338 7 2.073 254 50 (5) 15% 1.348 366 19 888 2.711 595 140 1.191 1.811 523 190 103 40% 1.672 5.250 689 120 1.297 1.191 174 4 1.

were circulated at least seven days before the meetings. have been taken by the Board. The Company has applied the principles contained in the Code in the following manner: 1. 10. 37 of the Karachi Stock Exchange for the purpose of establishing a framework of good governance. 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. The financial statement of the Company were duly endorsed by the CEO and the CFO before approval by the Board. 2. overall corporate strategy and significant policies of the Company. Written notices of the Board meetings. 8 9. 7. 11. No casual vacancies were occurred in the Board during the year. The Company encourages representation of independent non-executive directors. The board has developed a vision/mission statement. 5. 6. The directors have confirmed that none of them is serving as a director in more than ten listed Companies including this Company. whereby a listed Company is managed in compliance with the best practices of corporate governance. All the powers of the Board have been duly exercised and decision on material transactions. All the resident directors of the Company are registered as tax payers and none of them has defaulted in payment of any loan to a banking company. The meeting of the Board were presided over by the Chairman and the Board met at least once in every quarter. including appointment and determination of remuneration and terms and conditions of employment of the CEO and other executive directors. a DF1 or an NBF1.Mahmood Textile Mills Ltd. along with agenda. There were no new appointments of CFO. STATEMENT OF COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE This statement is being presented to comply with the Code of Corporate Governance Contained in Listing Regulation No. Company Secretary or head of internal Audit Department during the year. A complete record of particulars of significant policies along with the dates on which they were approved or amended has been maintained. At present there is no independent non executive director in the Board. 4. 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 minutes of the meetings were appropriately recorded and circulated. 3. 18 .

14. 16. CEO and executives do not hold any interest in the shares of the Company other than that disclosed in the pattern of share-holding. 18. 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 (ICAP). 2010 Sd/ CHAIRMAN 19 . 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 a adopted by ICAP. The statutory auditors or the persons associated with them have not been appointed to provide other service. For and on behalf ofthe Board of Directors. The Board has set-up an effective internal audit function. The Company has complied with all the corporate and financial reporting requirements of the Code. that they or any of the partners of the firm. The directors. except in accordance with the Listing Regulations and the auditors have confirmed that they have observed (IFA) guidelines in this regard. The meetings of the Audit Committee were held at least once every quarter prior to approval of interim and final results of the Company as required by the Code. The terms of reference of the Committee have been formulated and advised to the Committee for compliance. 15. which comprises of 3 members. The Board has formed an Audit Committee. Multan: Dated: 5th October. We confirm that all other material principles contained in the Code have been complied. 13.Annual Report 2010 12. 19. 17.

The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the Company. or to form an opinion on the effectiveness of such internal controls.. Chartered Accountants.Mahmood Textile Mills Ltd. to the extent where such compliance can be objectively verified. whether the Statement of Compliance reflects the status of the Company's compliance with the provisions of the Code of Corporate Governance and report if it does not. 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. Engagement Partner Abdul Hameed Chaudhri Lahore: Dated: 5th October. Further. REVIEW REPORT TO THE MEMBERS ON STATEMENT OF COMPLIANCE WITH BEST PRACTICES OF CODE OF CORPORATE GOVERNANCE We have reviewed the Statement of Compliance with the best practices contained in the Code of Corporate Governance prepared by the Board of Directors of Mahmood Textile Mills Limited ("the Company") to comply with the Listing Regulations of the Karachi Stock Exchange. Based on our review. We are not required to consider whether the Board's statement on internal control covers all risks and controls. Further. in all material respects. 2010 20 . nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Company's compliance. We are only required and have ensured compliance of requirement to the extent of approval of related party transactions by the board of directors and placement of such transactions before the audit committee. 2010. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm's length price or not. the Company's corporate governance procedures and risks. Sub-Regulation (xiii) of Listing Regulations 35 notified by the Karachi Stock Exchange (Guarantee) Limited vide circular KSE/N-269 dated 19 January 2009 requires the Company to place before the board of directors for their consideration and approval related party transactions distinguishing between transactions carried out on terms equivalent to those that prevail in arm's length transactions and transactions which are not executed at arm's length price recording proper justification for using such alternate pricing mechanism. with the best practices contained in the Code of Corporate Governance as applicable to the Company for the year ended 30 June. 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. Hameed Chaudhri & Co. where the Company is listed. Our responsibility is to review. all such transactions are also required to be separately placed before the audit committee.

for the year then ended and we state that we have obtained all the information and explanations which. It is the responsibility of the Company's 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. and. (ii) the expenditure incurred during the year was for the purpose of the Company's business. Zakat deductible at source under the Zakat and Ushr Ordinance. profit and loss account. Our responsibility is to express an opinion on these statements based on our audit. 2009 were audited by M. to the best of our knowledge and belief. give the information required by the Companies Ordinance. (c) (d) The financial statements of the Company for the year ended 30 June. who have expressed an unqualified opinion thereon.. 1984. proper books of account have been kept by the Company as required by the Companies Ordinance. 1984. 2010 and the related profit and loss account. in our opinion and to the best of our information and according to the explanations given to us. except for the changes as described in note 5. its cash flows and changes in equity for the year then ended. cash flow statement and statement of changes in equity together with the notes forming part thereof. in the manner so required and respectively give a true and fair view of the state of the Company's affairs as at 30 June. and (iii) the business conducted. We believe that our audit provides a reasonable basis for our opinion and.1 to the financial statements with which we concur. Chartered Accountants. we report that: (a) (b) in our opinion. 1984. evaluating the overall presentation of the above said statements. and are in agreement with the books of account and are further in accordance with accounting policies consistently applied. 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. after due verification..Annual Report 2010 AUDITORS' REPORT TO THE MEMBERS OF MAHMOOD TEXTILE MILLS LIMITED We have audited the annexed balance sheet of MAHMOOD TEXTILE MILLS LIMITED (the Company) as at 30 June. An audit also includes assessing the accounting policies and significant estimates made by management. We conducted our audit in accordance with the auditing standards as applicable in Pakistan. 2010 21 . investments made and the expenditure incurred during the year were in accordance with the objects of the Company. Yousaf Adil Saleem & Co. An audit includes examining. Hameed Chaudhri & Co. 2010 and of the profit. the balance sheet. as well as. evidence supporting the amounts and disclosures in the above said statements. on a test basis. in our opinion: (i) the balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the Companies Ordinance. were necessary for the purposes of our audit. 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. Chartered Accountants. 1984. and in our opinion. 1980 (XVIII of 1980) was deducted by the Company and deposited in the Central Zakat Fund established under Section 7 of that Ordinance. Engagement Partner Abdul Hameed Chaudhri Lahore: Dated: 5th October.

632.299 1.418.103.002.561.216 87.190 53.157.426.418.932 734.567 9.358.875.039 62.076 61.020 5.000.092. BALANCE SHEET AS AT 30 JUNE.120.443.557.030.302 1.717.014.444 100.010 344.492.368.021 1.120.604.234 387.658.036 22 23 24 20 25 Kh.119 0 1.477 595.293 1.948 92.000 7.579.000 ordinary shares of Rs.573.890 7.000 99.900 0 6.401 2.036 300.096 4.305 2.368.192 139.717.158.486.147 106.478.933 256.299.511.100.297.261 262.341.806.000.757 269. 10 each Issued.767.226.706. 2010 2010 Rupees 1.613 15.993 35.500.585. plant and equipment Long term investments Deposit for shares Long term deposits Loans to employees 7 8 9 10 2009 Rupees 1.955.921 338.922.000 6.711.245.408 33.122 2.911.049.170.754.387.000.979 90.559.Mahmood Textile Mills Ltd.940 116.439 2.249.600 1.209.407. 26 19 11 12 13 14 15 16 17 18 111.000 809.000 150.000.119 2.478.001.000 2.537.441.477 Note ASSETS Non-current assets Property. Muhammad Iqbal Chief Executive Officer Kh.000 1.292.723.972.010 120.014.568 420.511 20 21 688. spares and loose tools Stock-in trade Trade debts Short term investments Loans and advances Other receivables Tax refunds due from the Government Cash and bank balances Total Assets EQUITY AND LIABILITIES Capital and reserves Authorized capital 30. Muhammad Masood Chairman 22 Kh.589 1.353.525 4.716.977.672.182 1.124 253.456.831.794.597.000.457 Current assets Stores.745 2.774.765.915.241 85.345 300.499.030.549 164.691. subscribed and paid-up capital Capital reserve Unappropriated profit Liabilities Non-current liabilities Long term financing Deferred taxation Current liabilities Trade and other payables Accrued mark-up Short term borrowings Current maturity of long term financing Taxation Total liabilities Total equity and liabilities Contingencies and commitments The annexed notes form an integral part of these financial statements.595.600 2.642.849. Muhammad Younus Director Muhammad Amin Pal Chief Financial Officer .280.132 5.405 302.950.

910.406 340.380.831 5.128.507.190 646.204.300 102.583 141.851 (19.990.887 592.084.825 522.Annual Report 2010 PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE.129.150. 2010 Note Sales .423.699.000.551.662.845 227.135.811. Muhammad Iqbal Chief Executive Officer Kh.445 80.381 6. Muhammad Masood Chairman Kh.839.981 0 102.727.249.936.205 1.681.950.294) 573.628.093 223.277 (23.198 87.843.605.919 39.466.267.843.981 6.55 The annexed notes form an integral part of these financial statements.844 190.790 0 578.141.321 (4.86 Profit after Taxation Other Comprehensive Income Total Comprehensive Income Earnings Per Share 34 578.377.843 276.000 1.770 2009 Rupees 6.039.024.129.199.242.293.360. Muhammad Younus Director Muhammad Amin Pal Chief Financial Officer 23 .811 190.519 Share of Profit of Associates Profit before Taxation Taxation Current Prior year Deferred 8 53.790 38.986 1.020 381.437 48.176 269.Net Cost of Sales Gross Profit Distribution Cost Administrative Expenses Other Operating Expenses Other Operating Income 29 30 31 32 27 28 2010 Rupees 8.998.281 Profit from Operations Finance Cost 33 933.543.740) 561.932 118. Kh.199.009 47.472.709 25 25 21 85.972.187.932) 67.

825 (65.373 5.361 0 0 0 (62.668) 2009 Rupees 141.437.419.168 10.net Loans and advances Other receivables Tax refunds due from the Government Increase in trade and other payables 592.226. 1. Muhammad Younus Director Muhammad Amin Pal Chief Financial Officer .305 615.874.611.674.470 61.736.517) 8.089.972. 2010 2010 Rupees CASH FLOWS FROM OPERATING ACTIVITIES Profit for the year .At end of the year The annexed notes form an integral part of these financial statements.435 0 (302.525.760 (114.000 0 140.889) (192.400.505 (69.128.334) (32.501.818.362 (565.893 6.727 49.300) (198.402) (277.974.306.456 (315.355 6.500.612.745.555) 13.249.710 5.000) 0 69.188.675.437 180.063 77.358.453 2.net Dividend paid Short term borrowings .833. Muhammad Iqbal Chief Executive Officer Kh.Before working capital changes Decrease/(increase) in current assets Stores.631 9.158 (609.719.321.587) (331.122.614.895) (370.768.915 (275.557 (2.Mahmood Textile Mills Ltd.159.365 (42.753.647 45.132.243.248.135) 0 (2.918.583 891.157) 8.026) 6.371.293.076) 62.061.971.466.866 9.158) 340.830.670.344. spares and loose tools Stock-in-trade Trade debts Short term investments .375) 1.945.329.990.808 7.847) 62.767.186.068 (50.206.458) (57.645.387.320.540) 572.226. plant and equipment Sale proceeds of plant and machinery Long term investments Deposit for shares Long term deposits Income on bank deposits NET CASH OUTFLOW FROM INVESTING ACTIVITIES CASH FLOW FROM FINANCING ACTIVITIES Long term financing .930 83.642) (88.778.583) (492.767.net Finance cost paid NET CASH OUTFLOW FROM FINANCING ACTIVITIES NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS .152.887 1.651 (39.After taxation CASH FLOW FROM INVESTING ACTIVITIES Purchase of property.747) (14.461.476.519 167.249 15.067.893) (445.000 (16.131.439 Kh.336 (242.694 (66.238) 1.before taxation and share of profit of Associates Adjustments for non-cash charges and other items: Depreciation (Gain)/loss on sales of plant and machinery Impairment loss on long term investments Loss on sale of shares Loss on re-measurement of short term investments at fair value Obsolete/slow moving stores and spares written-off Provision against doubtful sales tax refunds Uncollectible receivable balances written-off Income on bank deposits Finance cost CASH INFLOW FROM OPERATING ACTIVITIES .948. CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE.205) 6.774 (78. Muhammad Masood Chairman 24 Kh.Before taxation Income tax paid NET CASH INFLOW FROM OPERATING ACTIVITIES .958.337.439 15.907.564) 157.774) 381.662.964.809.362) CASH INFLOW FROM OPERATING ACTIVITIES .496) 1.At beginning of the year CASH AND CASH EQUIVALENTS .870.473 2.681.730 145.

150.956) 50. 2008 @ Rs. 2008 Final cash dividend for the year ended 30 June. Muhammad Younus Director Muhammad Amin Pal Chief Financial Officer 25 .015.939. Muhammad Iqbal Chief Executive Officer Kh.150.619.335) 0 99. 2010 Share capital Capital reserve Unappropriated profit Total ------------------------.199.335) (14.865 0 0 (14.092. 10 each issued as fully paid bonus shares Profit after taxation for the year ended 30 June.516.011 ordinary shares of Rs.849.600 1.939. Kh.890 7.956) (39.120.600 102.511 0 0 (39.790 2.623.843.604.345 The annexed notes form an integral part of these financial statements.120.790 2.977.Rupees -------------------Balance as at 30 June.981 1.021 102. 2010 Balance as at 30 June.110 0 (50.589.199. 4 per share 5.745 578.456.110) 0 0 150.981 1.375 1. 2009 Balance as at30 June.50 per share Profit after taxation for the year ended 30 June.249.716. 2009 Final cash dividend for the year ended 30 June.000 0 7.890 0 7.600 578. 1.595. 2010 99.486.977.Annual Report 2010 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE.000.849. 2009 @ Rs.711. Muhammad Masood Chairman Kh.120.843.

26 . the provisions or directives of the Companies Ordinance.measurement of long term investments under equity method. Punjab. It also requires management to exercise its judgment in the process of applying the Company s accounting policies. Dera Ghazi Khan Division. 2.Mahmood Textile Mills Ltd. 1984 shall prevail. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance.2 Functional and presentation currency These financial statements are presented in Pakistan Rupees. provisions of and directives issued under the Companies Ordinance. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS The preparation of financial statements in conformity with approved accounting standards requires the use of certain critical accounting estimates. The estimates. grey cloth and generation & sale of electricity. STATEMENT OF COMPLIANCE These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. 1970 as a Public Company and its shares are quoted on Karachi Stock Exchange. CORPORATE INFORMATION Mahmood Textile Mills Limited (the Company) was incorporated in Pakistan on 25 February. including expectations of future events that are believed to be reasonable under the circumstances. and d) provision for current and deferred taxation. which is the Company s functional and presentation currency.modification of foreign currency translation adjustments. b) provision against slow moving inventory. judgments and assumptions that have significant effect on the financial statements are as follows: a) useful life of depreciable assets.1 Accounting Convention These financial statements have been prepared under the historical cost convention except for the following: . if the revision affects only that period. The estimates/judgments and associated assumptions used in the preparation of financial statements are based on historical experience and other factors.measurement of short term investments at fair value 3. In case requirements differ. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE. c) provision for doubtful receivables. Revision to the accounting estimates are recognised in the period in which the estimate is revised. or in the period of revision and future periods if the revision affects both current and future periods. The Company is principally engaged in manufacture and sale of yarn. The estimates/judgments and associated assumptions are reviewed on an ongoing basis. The registered office of the Company is situated at Multan whereas the mills are located at District Muzaffargarh. 1984. 2010 1. . and . 1984. BASIC OF MEASUREMENT 3. 4. 3.

profit and loss account). which have been effective and adopted by the Company (a) IAS 1 (revised) . there is no impact on earnings per share. the amendment requires enhanced disclosures regarding fair value measurement and liquidity risk. construction or production of a qualifying asset as part of the cost of that asset. therefore are not detailed in these financial statements. (d) IFRS 8 Operating Segments introduces the management approach to segment reporting. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES 5.Presentation of Financial Statements . which are mandatory for accounting periods beginning on or after 01 July. 5. 2010). IAS 17 (Amendments) Leases (effective for annual periods beginning on or after 01 January. As the change only results in additional disclosures. interpretations and amendments to existing standards. amendments and interpretations.e.2 Standards.3 Standards. 2009 are considered not to be relevant nor have any significant effect on the Company s operations. 27 . amendments to published standards and interpretations that are effective for the annual periods beginning on or after 01 July. IAS 7 (Amendments) Statement of Cash Flows (effective for annual periods beginning on or after 01 January. (c) IFRS 7 (Amendment) Financial Instruments: Disclosures .1 Accounting standards. there is no impact of such revised standard on these financial statements. The Company has applied IAS 1 (revised) from 01 July. However. 2009 but not relevant to the Company s financial statements Other new standards. however. since there are no non-owner changes in equity. 2009 and has elected to present one performance statement (i. therefore. There is no impact of the new standard on the Company s financial statements. (b) Revised IAS 23 Borrowing Costs (amendment) removes the option to expense borrowing costs and requires that an entity capitalise borrowing costs directly attributable to the acquisition. there is no effect of this change on the Company s financial statements. interpretations and amendments to published approved accounting standards and interpretations not yet effective and have not been early adopted by the Company The following standards. 5. The Company s current accounting policy is in compliance with this amendment and. IFRS 8 requires a change in the presentation and disclosure of segment information based on the internal reports regularly reviewed by the Company s decision makers in order to assess each segment s performance and to allocate resources to them. amendments and interpretations of International Financial Reporting Standards will be effective for accounting periods beginning on or after the dates specified below: IAS 1 (Amendments) Presentation of Financial Statements (effective for annual periods beginning on or after 01 January. The revised standard requires an entity to opt for presenting such transactions either in a single statement of comprehensive income or in an income statement and a separate statement of comprehensive income. 2010).Annual Report 2010 5. 2010). certain disclosures as required under IFRS 8 have been included in these financial statements. requires presentation of transactions with owners in Statement of Changes in Equity and with non-owners in the Statement of Comprehensive Income.

2011).The Limit on a Defined Benefit Assets. - IAS 24 (Revised) Related Party Disclosures (effective for annual periods beginning on or after 01 February. are retired. Depreciation is charged on additions from the month the assets is available for use and on disposals upto the month of disposal. which are stated at cost. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these financial statements are set-out below. IFRS 5 (Amendments) Non-current Assets Held for Sale and Discontinued Operations (effective for annual periods beginning on or after 01 January.1 Property. IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments (effective for annual periods beginning on or after 01 July. plant and equipment. Gains or losses on disposal or retirement of property. Depreciation is charged to income applying reducing balance method to write-off the historical cost and capitalised exchange fluctuations over estimated remaining useful life of the assets. 2010) IFRS 8 (Amendments) Operating Segments (effective for annual periods beginning on or after 01 January. These policies have been consistently applied to all the years presented. 2010).1. other than those kept as stand-by. IAS 32 (Amendments) Financial Instruments: Presentation Classification of Rights Issues (effective for annual periods beginning on or after 01 January. 2010). Minimum Funding Requirements and their Interaction (effective for annual periods beginning on or after 01 January. IFRIC 14 (Amendments) . 2010) IFRS 2 (Amendment) Share-based Payments . The useful life and depreciation method are reviewed periodically to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from items of property. The effective dates for these amendments vary by standard and most will be applicable to the Company s 2011 financial statements. 6. Rates of depreciation are stated in note 7. plant and equipment These are stated at cost less accumulated depreciation and impairment in value. 2010). 2010) - The International Accounting Standards Board made certain amendments to the exiting standards as part of its second annual improvements project.Mahmood Textile Mills Ltd. if any. except freehold & leasehold land and capital work-in-progress. 6. plant and equipment are determined as the difference between the sale proceeds and the carrying amount of asset and are included in the profit and loss account. 2010) IAS 36 (Amendments) Impairment of Assets (effective for annual periods beginning on or after 01 January. if any. Major renewals and replacements are capitalised and the assets so replaced. Normal repairs and maintenance are taken to profit and loss account as and when incurred. 28 . unless otherwise stated.Group Cash-Settled Share-based Payment Transactions (effective for annual periods beginning on or after 01 January.

These are initially measured at fair value and changes on re-measurement are taken to profit and loss account. 6. Balances considered bad and irrecoverable are written-off when identified.Annual Report 2010 Capital work-in-progress is stated at cost less accumulated impairment losses. spares and loose tools Stores.At manufacturing cost.5 Trade debts and other receivables Trade debts and other receivables are carried at original invoice amount less an estimate made for doubtful receivables based on review of outstanding amounts at the year-end. plant and equipment when available for intended use. Cost in relation to work-inprocess and finished goods represents the annual average manufacturing cost. Net realisable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated cost necessary to make the sale. and is transferred to the respective item of property. which consists or prime cost and appropriate manufacturing overheads. 6. if any.At lower of annual average cost of both local and imported stocks and net realisable value . 6.At net realisable value. 6. spares and loose tools are stated at the lower of cost and net realisable value. Gain/loss on sale of investment is included in income.At cost accumulated to the balance sheet date. . A trade date is the date that an enterprise commits to purchase or sell an asset. 29 .4 Stock-in-trade Basis of valuation are as follows: Particulars Raw materials: . b) Bonus shares are accounted for by increase in number of shares without any change in value. Regular way pruchase or sale of held for trading investments is recognised using trade date accounting. Items in transit are stated at cost accumulated to the balance sheet date. at inception. are designated at fair value through profit or loss.At lower of cost and net realisable value .6 Short term investments Short term investments. 6. The cost of inventory is based on moving average cost.In transit Work-in-process Finished goods Waste Mode of Valuation .2 Long term investments a) Investments in associated companies are accounted for using equity method of accounting under which these investments are initially recognised at cost and are subsequently restated to reflect the Company s share in the net assets of associated companies. .3 Stores.At mills . All investments are de-recognised when the right to receive cash flows from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership.

are added to the cost of those assets.9 Borrowings and borrowing costs All borrowings are recorded at the proceeds received.8 Impairment loss The carrying amounts of the Company s assets are reviewed at each balance sheet date to identify circumstances indicating occurrence of impairment loss or reversal of provisions for impairment losses. 30 . 6. Borrowing costs directly attributable to the acquisition. cash and cash equivalent consist of cash-in-hand and balances with banks. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.27 issued by the Institute of Chartered Accountants of Pakistan. which are assets that necessarily take a substantial period of time to get ready for their intended use of sale. For the purpose of cash flow statement. 6. construction or production of qualifying assets. the effects on deferred taxation of the portion of income subject to final tax regime is also considered in accordance with the requirements of Technical Release . if any.10 Trade and other payables Liabilities for trade and other payables are carried at cost. Deferred tax asset is recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary differences. In this regard.7 Cash and cash equivalents Cash and cash equivalents are carried in the balance sheet at cost. Deferred tax liability is generally recognised for all taxable temporary differences. Reversal of impairment loss is restricted to the original cost of the asset. 6. 6. All other borrowing cost are recognised in profit or loss in the period of incurrence. 6.Mahmood Textile Mills Ltd. until such time as the assets are substantially ready for their intended use of sale.11 Provisions Provisions are recognised when the Company has a present 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 obligation and a reliable estimate of the obligation can be made. 6. the recoverable amounts of such assets are estimated and impairment losses or reversals of impairment losses are recognised in the profit and loss account. and taxes paid under the final tax regime. whether or not billed to the Company. Deferred Deferred taxation is provided using the liability method for all temporary differences at the balance sheet date between tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. which is the fair value of consideration to be paid in future for goods and services received. unused tax losses and tax credits can be utilised. If any indications exist.12 Taxation Current Charge for current taxation is based on taxable income at the current rates of taxation after taking into account tax credits and rebates available.

6. Such transactions are translated at contracted rates. 6. Export sales are booked on despatch of goods. Any gain or loss on derecognition of financial assets and financial liabilities are included in the profit and loss for the year. Government grants are deducted in reporting the related expenses. In order to hedge its exposure to foreign exchange risks.14 Dividend Distribution Dividend distribution to the Company s shareholders is recognised as a liability in the financial statements in the period in which the dividends are approved by the Company s shareholders. as the case may be. amortised cost or cost. Direct local sales are accounted for when goods are delivered to customers and invoices raised. cancelled or expired. the Company enters into forward exchange contracts. if any.15 Government Grants Government grant that compensates the Company for expenses incurred is recognised in the profit and loss account on a systematic basis in the same period in which the expenses are recognised.18 Revenue Recognition Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business. Local sales through agents are booked on intimation from agents. which is the fair value of the consideration given and received respectively. 6.17 Off-setting of Financial Instruments Financial assets and liabilities are off-set and the net amount reported in the balance sheet when there is a legally enforceable right to set-off the recognised amounts and there is an intention to settle on a net basis. or realise the asset and settle the liability simultaneously.16 Financial Assets and Liabilities Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument and derecognised when the Company loses control of contractual rights that comprise the financial assets and in the case of financial liabilities when the obligation specified in the contract is discharged. All financial assets and financial liabilities are initially measured at cost. 6. based on tax rated that have been enacted or substantively enacted at the balance sheet date. are taken to profit and loss account. Monetary assets and liabilities denominated in foreign currencies are retranslated into Pak Rupees at the exchange rates prevailing on the balance sheet date.Annual Report 2010 Deferred tax assets and liabilities are measured at the tax rate that are expected to apply to the period when the asset is realised or the liability is settled. 31 . Exchange differences. These financial asset and liabilities are subsequently measured at fair value.13 Foreign Currency Translations Transactions in foreign currencies are initially recorded at the rates of exchange prevailing on the dates of transactions. 6. 6. Export rebate is accounted for on accrual basis.

019 143. PROPERTY.073.292.933 2009 Rupees 1.Mahmood Textile Mills Ltd.5 2010 Rupees 1.080 92.921 32 .632.902 1.030.1 7.632.853 1. 7. Interest/mark-up is accounted for on accrual basis .957.774.681. PLANT AND EQUIPMENT Note Operating fixed assets Capital work-in-progress 7. - Dividend income is recognised when the right to receive dividend is established.149.

193.149.654.130.156 6.720.367) 39.886.023 7.958 6.653 4.650.631.023 7.152.725 144.431.709 1.277 0 0 5.877) 14.458.075 163.134 11.632.854 3.138.555 10 5 10 2.914.913.259.556.197.329.429.103 (45.905.534 1.643 1.242.635 3.420 0 0 80.592) 41.148 49.225 (23.419.867 0 0 0 0 0 303.642.855 Annual depreciation rate (%) 0 33 .243 328.674 24.122.858 39.654.031 20.919 2.124 0 0 113.880 0 0 273.868.372 3.624.529. 2010 7.115.538.725 342.508 1.725 144.224 4.019 1.234.603.664.118 0 0 1.732 17.437 5. 2009 Additions 2.725 147.302 2.855 1.092.112.149 0 42.923 1.465 0 0 1.302 2.595 0 0 1.144 0 198.725.855.387. 2009 7.058 0 0 109.457.427.473 975.888.355 3.402 51.246.469.723.265 2.292 0 0 108.434.019 1.792.426.Rupees --------------------------------------------------------------------------------------------------------------Total 4.371 15.379 1.503.756.861.198.714.746 0 222.196.514 Particulars Leasehold land Annual Report 2010 As at 30 June.075.901.430 0 10 10 10 10 20 3.725 133.758.070 5.471.048 26.725.439 5.699.654.909 0 0 4. 2008 2.725.849.199.430 17.260 0 (2.551 7.473 30 975.034.334.801 7.878 148.232.111.357 4.198.011.473 Book value as at 30 June.049 87.855 Year ended 30 June.299 7. 2010 Additions 0 3.044.188 5.654.022 17.772 0 0 188.020.355.725.767 44.725.948 3.860.6000 10.923.251 1.855 As at 30 June.461.660 3.990.654.775.160.186 1.345.289.681.412.397 1.334.948 3.484 7.204 16.364 0 0 1.116.742 2.282 48.846.720.078.654.778.022 17.877) 14.771 21.654.700 520.646.083.049 92.023 7.354.147 1.801 2.188 5.706.750.169.836 Disposals: Cost Depreciation Depreciation charge 0 0 0 0 0 15.996.204 13.729 0 213.801 2.354 24.371 15.475 1.710.957 0 0 5.026 1.619.919 2.206 1.046 3.635 3.206 Disposals: Cost Depreciation Depreciation charge 0 0 0 0 0 14.019 Year ended 30 June.855 0 7.133.118 1.149.800.205 831.678.776.354 24.508 1.049 83.637.660 1.444 3.747.237 19.786 1.514 3.080 As at 30 June.324.736.786 1.237.302 2.885.173. 2009 Cost Accumulated depreciation 17.650.234.207.731.859 21.645.120.204 14.073.925.324.234.007 2.104 4.923.191 48.011 1.450.500.861 1.908.533.901 33.747.538.888.7.310.944 2.509 2.487 30.256.823 24.162 2.725 346.206.699.092.181.725 133.138.819 1.859 21.888.654.683.861.996 80.276 1.719 0 0 315.115. 2010 Cost Accumulated depreciation 17.723.872 3.725.650.386 (47.282 48.591.080 10 Book value 17.098.650.855 0 7.878 180.557 Book value as at 30 June.861 1.980.714.334.720.481 983.725 330.049 2.277.051 1.799 2.632.tangible Owned Buildings on Plant and Furniture Tools and Computer Weighing Gas Office Protective Electric Freehold Buildings on Vehicles and and bridge installations installations equipment dam equipment machinery freehold land leasehold land accessories fittings land --------------------------------------------------------------------------------------------------------------.668.901.019 Book Value 17.948 3.419.191 48.471.234 24.631.242 1.923 1.092.863 8.026 1.941.461.062 0 0 1.781.855 983.083.875.908.555 1.214.664.458.207.802 41.849.642.004 167.681.225) 0 1.036 2.278 0 0 0 0 0 76.851.068.240.884.966.249 0 0 209.574.441 2.631.714.664.016 9.411 0 208.352.739 1.355.070 10 10 5.729 1.458.246 621.591 5.460 1.872 3.092.761 138.713.800.932 0 0 0 1.343.584 0 0 3.243.193.324.792.301.471.000 12.799 2.484.732 2.560 0 182.810 0 0 0 5.779.500 73.1 Operating fixed assets .440 2.533.666 3.073.511.655 Cost Accumulated depreciation 17.266.438 0 0 121.302.133.489 7.368 (23.731.327.475 1.277.855 0 Book Value 17.805.346 52.351.261 2.

160.3 Plant and machinery: . Multan.490 7.847 47.225 654.000 3. Industrial Estate.720 16.278. Osama Jilani.560 Anwar Sharif Motors.000 620.435 220.525 1.035.190.414.2 Auto Cone Murata 7-II 18.542 569.652.267 8. 7. Depreciation for the year has been apportioned as under: Cost of sales Administrative expenses 160.067 167.181. 43. Multan for a period of 99 years.305.5 Capital work-in-progress Plant and machinery .085 949.196 2.000 92.000 8.158 1.Mahmood Textile Mills Ltd.447 2009 Rupees 172. Disposal of operating fixed assets Particulars Cost Sale Accumulated Book Value proceeds depreciation Gain/ (loss) Sold through negotiations to: 7.438 Premium Textile Mills Ltd.212.030.853 88.592 41.243 2.277.4.290.413 5.1 Honda Civic 867.173.367 39.723 .018 2.557 7.215 7.2 Leasehold land and buildings on leasehold land represent the leased assets allotted by the board of Management.024.761.000 400.2 Auto Cone Murata 7-II 17.063.761 Vehicles .902 34 .556.380 14.992.645.700 2..258 180.cost and expenses Advances to suppliers against: .221.184 .713.1Toyota Corolla .854 45.720.3900.440 356.147.488.Auto Cone Savio Espro 9.435 1.997 1.411. Multan 50.982 6.426.804 Allahwasaya Textile Mills Ltd.406 1.122.civil works .473 0 143.413) MKM Sons. Faisalabad 2.519.902 0 143. Karachi (243.588 .476.125.829 6.520.004 2010 Rupees 7.435 1. Multan 1.767.957.vehicles 3.450.458 Mr..000 8.603.606 213.361.

298 17.167 9.34% Post acquisition profit brought forward Share of profit for the year Less: impairment loss Less: investments classified as short term 8.074.10 each .098 103.685 0 135.000 87.976.165 fully paid ordinary shares of Rs.799.894.550.375.117 40.116.560 1.140 35 .734.251 2.174.509 225.298 31.150.387.000.117 27.000.900 8.734.783 2.956.405 103.2 2010 Rupees 2009 Rupees 40.Cost Equity held: 13.648.072.658.199 3.293 26.336. is as follows: Masood Spinning Mills Limited Total assets Total liabilities Revenue for the year Profit after tax for the year 2.635.174 152.339.000.058.18% Post acquisition profit brought forward Share of profit for the year Quoted Askari Leasing Limited 4.929 70.33% Post acquisition profit brought forward Shares of profit for the year Roomi Fabrics Limited 4.810.000. 10 each .810.298 13. 2010.117 76.000 fully paid ordinary shares of Rs.cost Equity held: 9.098 127.232) 0 256.133 40.115.396.000 fully paid ordinary shares of Rs.956.827.089 0 135. 10 each .000 60.1 Summarised financial information of Masood Spinning Mills Limited and Roomi Fabrics Limited.757.000 36.074.950 76.272 40.000.000.116.453) 72.Cost Equity held: 18.293 100.842.685 338.805 127.106.246.207.389.067.387 0 (62.689.990.834.106.207.901.167 66.200 1.098 25.Annual Report 2010 Note 8 LONG TERM INVESTMENTS Associated Companies Un-quoted Masood Spinning Mills Limited 4.074.000 26. based on the un-audited financial statements for the year ended 30 June.016 103.232 (72.207.

000.357 1. with and into Askari Bank Ltd.589 69. the required impairment loss has been recognised during the year. 3.911. 11. DEPOSIT FOR SHARES The Company.182 36 . Punjab. Nil) Spares Loose tools 68.320 111. 10. accordingly.balance at year end Less: current portion grouped under current assets 10.242 145.412 2009 Rupees 2. 10.000 0 0 0 0 This interest free loan to an executive has been advanced for construction of house and is receivable in 36 equal monthly instalments. STORES. SPARE PARTS AND LOOSE TOOLS Stores including in-transit inventory valuing Rs.245. has granted approval for the merger of Askar Leasing Ltd.100. 9.540. These investments. are not being accounted for under the requirements of IAS 28 (Investments in Associates).028 1.135.117. No.000) 2.000 0 0 0 10. vide its letter Ref.205.371 42.005 4.1 Movement in the account of loan to an executive is as follows: Opening balance Loan advanced during the year Less: deductions made during the year Closing balance 0 3. LOANS TO EMPLOYEES .000 shares of OPCL as a price of Rs.491.) Ltd.000 (2009: Rs. These shares have been allotted to the Company during July.958. 2009.461.929. SC/NBFCI/D/ALL/2010/21 dated 19 January. 2010.000 600.966. in terms of Rule 7(2)(c) of the NBFC Rules 2003.181 (2009: Rs.893.447 189.Unsecured Loan to an executive . with effect from 31 December.889.746 2. Note Roomi Fabrics Limited Total assets Total liabilities Revenue for the year Profit after tax for the year 8.700.000. 3.000 (300.500.000 2.2 The maximum aggregate amount of loan due from the executive at the end of any month during the year was Rs.799.1 2. on 22 June.426.481. (OPCL) whereby the Company has agreed to purchase 27.951 The Securities and Exchange Commission of Pakistan.898 198.2 2010 Rupees 2.196.Mahmood Textile Mills Ltd. Nil).934. 2010.561 46. District Kasur.178.847. OPCL is presently developing and constructing an approximately 225 MW electric generation project located near Balloki. 11 per share. 2010 has entered into a shares subscription agreement with Orient Power Company (Pvt.700.621 0 116.344.

516 15.806.745.544.306.considered doubtful 149.350 714.444.own manufactured .234 13.911 252.952 714.602 135.062.166.085.880. 11.667.698. STOCK-IN-TRADE Raw materials including in-transit inventory valuing Rs.146. Nil).369 Less: provision for doubtful debts 0 149.540 60.537.261 37 .377.702.911 387.173. TRADE DEBTS Unsecured .425 254.568 340.443.698.trading 1.388 420.212 1.993.993.739 1.816 1. 2010 Rupees 2009 Rupees Note 12.export bills 134.559.579.602 134.1 Stores and spares include items which may result in fixed capital expenditure but are not distinguishable.350 16.739 0 340.369 Secured .642.667.considered good .880.392.963 270.300 497.771 481.594.106.993. Work-in-process Finished goods .369 0 149.724 40.757 0 252.local .Annual Report 2010 11.685 (2009: Rs.

10 each) Nishat Mills Ltd. LOAN AND ADVANCES Advances to: .250 (2009: Nil shares) fully paid ordinary shares of Rs. 10 each) Zephyr Textile Limited Nil shares (2009: 3.463. 10 each) Allied Bank Limited Nil shares (2009: 254.731 31.considered good Letters of credit 2. 15.407.915.200 fully paid ordinary shares of Rs.607.486.500.employees .757.213 76.984.suppliers and contractors .784.485 0 14.000) fully paid ordinary shares of Rs. 10 each) Bank Islami (Pakistan) Limited Nil shares (2009: 25.Mahmood Textile Mills Ltd. 10 each 2010 Rupees 2009 Rupees 118.500 fully paid ordinary shares of Rs.400.070 31.500 fully paid ordinary shares of Rs.557. as security for short term borrowing facilities.311 (2009: 5.845 14.000 0 1.920 0 160. Note 14.930.147 38 .523.987 1.794. SHORT TERM INVESTMENTS .841.considered good .1 These shares are pledged with Bank Islami (Pakistani) Ltd.610 19.Quoted (at fair value through profit or loss) Askari Bank Limited 7.979 2.500 fully paid ordinary shares of Rs. 10 each Pakistan International Airlines Corporation Nil shares (2009: 529.467 53.190.993 0 262.000 0 6.323.280.466.261 35.000.940 0 9.477. 3. 10 each) Maqbool Textile Mills Limited Nil shares (2009: 500 fully paid ordinary shares of Rs.1 150.094.780 269.190 14.

which could not be encashed on their due dates.470 83. the aforementioned two cheques were also included in that agreement with new payment date. 2008. c) TSHM had also failed to make payment of mark-up on delayed payments as per terms of the agreement i. 83. 2008 whereas another transfer on one million shares to the same director of TSHM was made on 02 June.912 9.1 16.) Ltd.50 per share vide agreement dated 11 September.284.056 1. d) The Company. the Company had transferred one million shares to a director of TSHM on 29 May.002.332 3. 17. TAX REFUNDS DUE FROM THE GOVERNMENT Income tax refundable. through its legal counsel.130.732 83.546.922.751 400. OTHER RECEIVABLES Export rebate receivable Cotton claim receivable Receivable against sale of shares Due from an Associated Company [Roomi Enterprises (Pvt.840 106.537 943.198.216 2009 Rupees 5.Annual Report 2010 Annual Report 2009 Note 16. 19.964.567 39 .772 400. TSHM was liable to pay mark-up at the rate of 3-months KIBOR plus 2% per annum for the delayed period. the Company received two post dated cheques.647 90.756.) Ltd.028.546. the Company entered into an agreement for sale of all the shares of DCCL including the balance left with it and its Associated Companies.562. Multan for recovery of the outstanding amounts along with mark-up at the rate of 3-months KIBOR +2% per annum to be calculated on daily product basis from date of the cheques till the final realisation of the amount due. The proceedings of the Court are in process. 2008 respectively. at the request of TSHM.727 17. has issued legal notices to TSHM for recovery of outstanding amounts and mark-up thereon on 31 March. [TSHM] against sale of 4. (DCCL) sold at the rate of Rs.585.747.e.076 16.189 61. b) Initially.189 0 23.] Customs duty refundable Containers' deposits Others 2010 Rupees 518.457 shres of Dandot Cement Company Ltd.378 23.165.613 38. TSHM failed to make payments even in response to the legal notices issued by the Company.198.313.912 0 55. Against both the transfers.373 10. which were due on 18 August. The Company had handed-over to TSHM CDC transfer orders and against them TSHM issued post dated cheques. the Company has filed a suit in the Court of District Judge.259 6.190.701.886 87. 2009.1 a) This represents amount receivable from Three Star Hosiery Mills (Pvt.332 6. 2008.999 943.511.546 million. 2009 and 20 May. Later on. advance tax and tax deducted at souce Sales tax refundable Less: provision for doubtful refunds 77. 2008 and 16 September. Consequently. These shares have been sold against post dated cheques of Rs.

913.1 Movement in share capital during the year 9.000 11.786.000 9.989 9.601.1 The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at general meetings of the Company.272 3.32%) per annum.800 6.000 110.984.685.000 150.890 0 99.3 27 (2009: 55) ordinary shares are held by Roomi Enterprises (Pvt.110 150.636.271 9. 19.10% to 5.168 4.2 The Company has one class of ordinary shares.700. 10 each issued as fully paid bonus shares 62.890 19.989 99. 2009). 19.000 99. b) These carry profit at the rates ranging from 5.984. (an Associated Company). upto merger Ordinary shares of Rs.305 13.02% to 5.379 12.saving accounts 2010 Rupees 1.888.) Ltd.288.226.200 15.989 87.Mahmood Textile Mills Ltd.000 110.756.1 a) These include foreign currency balance of US $ Nil (2009: US $ 39.926 15.011 0 Ordinary shares of Rs.849.890 50. 10 each issued as fully paid against shares of Mahmood Power Generation Ltd.849. which was translated into Pak Rupees at the exchange rate prevailing on 30 June.700.849.984.000 36. CASH AND BANK BALANCES Cash-in-hand Cash at banks on: .849.150.621 1.000. 10 each issued as fully paid bonus shares 15.000.890 19.189 9.1 18.000 8.800 2010 Rupees Ordinary shares of Rs. ISSUED.4 The Company has no reserved shares for issuance under options and sale contracts. 40 . Note 18.000. 10 each fully paid in cash Ordinary shares of Rs.26% (2009: 5.999 8.120.851.000 3. All shares rank equally with regard to the Company's residual assets. which carry no right to fixed income.888. 19.288.015.439 18.current accounts .655.989 Balance at beginning 5.000 11.000 2009 Rupees 62.000.305 2009 Rupees 526. 19.984.002.890 99. of shares 6.358. SUBSCRIBED AND PAID-UP CAPITAL 2010 2009 No.

000 40.640.524.030.Finance No.901.192 41 20.889.241 688. LONG TERM FINANCING .Finance No.7 .472 29.967 402.000 40.8 .667 7.4 20.697.000 34.020.589 51.1 20.15 20.578 65.800 6.Finance No.164.150 9.II Export Oriented Projects .16 20.21 20.10 .9 .334 34.334 6.Finance No.000.935.901.000 36.19 20.Finance No.1 .375 100.13 .254.251 Less: current portion grouped under current liabilities: .423.4 .033 53.696.088.000.600 47.830.324.597.Secured From banking companies United Bank Limited (UBL) Demand Finance -NIDF-III Demand Finance -NIDF-V Demand Finance -NIDF-VI Demand Finance -NIDF-VII Stante Bank of Pakistan Export Oriented Projects .845.000.468.499.968 46.10 20.11 .400 21.7 20.20 20.732 10.1 .051 91.904.551.096.627.325 69.3 .697.311 0 0 0 0 0 185.13 20.000 509.170.20 20.188 9.Annual Report 2010 Note 20.842 402.056.5 20.918.663 164.654.428 11.001.UBL .010 .000 39.125.6 Balance carried forward Balance brought forward .000 26.500 8.21 132.880 67.333 40.366.472 301.674.Finance No.004.038 78.408 595.289 185.505 1.000 253.18 20.2 2010 Rupees 2009 Rupees 20.HBL 98.000 19.000 43.936 87.934.2 20.478 70.12 20.Finance No.Finance No.241.248.12 .14 20.5 .630.Finance No.2 .583 4.609.11 20.Finance No.327.Finance No.644.200 853.245.5 20.468.520 0 0 20.311 695.297.926 301.423.967 26.140.Finance No.000.3 20.000 599.Finance No.546.14 Habib Bank Limited (HBL) Demand Finance Term Loan Finance Against Fixed Assets .281 18.5 20.087.732 10.005 1.830.971.000 4.033.6 20.148.I State Bank of Pakistan .000 6.183.364.000.Finance No.8 80.Finance No.9 20.Finance No.066 20.

149. during the year ranged between 13. These finances are repayable in 12 half-yearly instalments of Rs.2 The Company. during the year 2006. during the year 2006. 1. 67.Mahmood Textile Mills Ltd.3 is repayable in 12 half-yearly instalments of Rs. 85 million carrying mark-up at the rate of 6-months KIBOR + 175bps.5 The Company. 2009. has charged mark-up at the rate of 7% (2009: 7%) per annum payable on half-yearly basis. during the year. 20. 2007.04% (2009: 15.736 million from the sanctioned limit carrying mark-up at the rate of 6-months KIBOR + 150bps. during the current financial year.908 million each commenced from February. had obtained demand finance facility of Rs. during the current financial year. 20.18%) per annum payable on quarterly basis. during the year 2006. during the year.251 million each commenced from December.3 The Company.917 million each commenced from November. has obtained demand fiance facility of Rs.693 million each commenced from November. 2.09% per annum.1 is repayable in 12 half-yearly instalments of Rs. UBL. has charged mark-up at the rate of 7% (2009: 7%) per annum payable on quarterly basis. which was subsequently converted into three long term finance facilities i.7 These finances were obtained during the year 2006 against the sanctioned limit of Rs. 32 million carrying mark-up at2% per annum over the rate of refinance as worked-out by SBP.18%) per annum. had obtained demand finance facility of Rs.91% to 14. during the year. Finance No. These finances are repayable in 12 half-yearly instalments of Rs. 2012.03% per annum.061 million each commenced from June. UBL. 20. during the year.63% to 17.320 million carrying mark-up at 2% per annum over the rate of refinance as worked-out by SBP. 2012. 8.4 The Company. These finances are repayable in 12 half-yearly instalments of Rs.6 These finances. 29. had obtained long term finance facility from the sanctioned limit of Rs. during the year. UBL.63% to 17.128 million each commenced from December. 2008.04% (2009: 15. 2007. has charged mark-up at the rate of 7% (2009: 7%) per annum payable on quarterly basis. 20. 12. 0.654 million from the sanctioned limit of Rs. 20. Finance No. UBL. 2009. 6.2 is repayable in 12 half-yearly instalments of Rs. during the year.088 million from the sanctioned limit of Rs.914 million. Finance No. These finances are repayable in 10 half-yearly instalments of Rs. 56.8 These finances were obtained during the year 2006 against the sanctioned limit of Rs. 2 and 3.9 These finances were obtained during the year 2006 against the sanctioned limit of Rs. 2. 1.115 million each commenced from November. UBL. These 42 . 2008. during the year. 75 million carrying mark-up at the rate of 6-months KIBOR + 175bps.e. 2007. 20. 1.353 million each commencing May. These finances are repayable in 10 half-yearly instalments of Rs. has obtained demand finance facility of Rs. has charged mark-up at the rate of 14. during the year 2008. 20.91% to 14. 4. has charged mark-up at the rate of 7% (2009: 7%) per annum payable on quarterly basis. 20. These finances are repayable in 16 half-yearly instalments of Rs.1 The Company. 69. 2007 and Finance No. has charged markup at the rate of 7% (2009: 7%) per annum payable on half-yearly basis. UBL.709 million each commencing November. the effective mark-up rate charged by UBL. These finances are repayable in 12 half-yearly instalments of Rs. These finances carry mark-up at 2% per annum over the rate of refinance as worked-out by State Bank of Pakistan (SBP). were converted from demand finances carrying mark-up at 2% per annum over the rate of refinance as worked-out by SBP.048 million from the available limit carrying mark-up at the rate of 6-months KIBOR + 150bps. 10. has charged mark-up at the rate of 14. 20. 23 million carrying mark-up at 2% per annum over the rate of refinance as worked-out by SBP. 4. UBL. the effective mark-up rate charged by UBL during the year ranged between 13.771 million each commenced from July.

These finances are repayable in 12 half-yearly instalments of Rs.01% (2009: 11. These finances are repayabe in 12 half-yearly instalments of Rs.10 These finances were obtained during the year 2006 against the sanctioned limit of Rs. during the year.670 million each commenced from December. 34 million carrying mark-up at 2% per annum over the rate of refinance as worked-out by SBP. 20. during the year.604 million each commenced from January. UBL. 20. 2009.845 million carrying mark-up at 2% per annum over the rate of refinance as worked-out by SBP. UBL. 0. 3. during he year. UBL. 43.18 These finances were obtained against the sanctioned limit of Rs. 2010.248 million carrying mark-up at 2% per annum over the rate of refinance as worked-out by SBP. 372 million for import of plant and machinery. 2010.818 million each commenced from December. 20.14 These finances were obtained during the year 2008 against the sanctioned limit of Rs. which was payable on quarterly basis. These finances are repayable in 12 half-yearly instalments of Rs.320 million each commenced from April. during the current year. during the year.Annual Report 2010 finances are repayable in 12 half-yearly instalments of Rs. are secured against first charge of Rs. has charged mark-up at the rate of 7% (2009: 7%) per annum payable on quarterly basis.16. the effective mark-up rate is 6-months KIBOR + 1. 3. With effect from 01 January. 2.45%. 39.16 These finances were obtained during the year 2008 against the sanction limit of Rs. during the year.904 million carrying mark-up at 2% per annum over the rate of refinance as worked-out by SBP. during the year.1 to 20.088 billion over all the present and future fixed assets including land and buildings of Units 4 and 5 of the Company. 4.17 The finance facilities. has charged mark-up at the rate of 7% (2009: 7%) per annum payable on quarterly basis. 2. has charged mark-up at the rates ranging from 13. 20. UBL. 20.13 These finance were obtained during the year 2008 against the sanctioned limit of Rs. 2010.833 million each commencing September. These finances are repayable in 12 half-yearly instalments of Rs. 20. has charged mark-up at the rate of 7% (2009: 7%) per annum payable on quarterly basis. HBL.76%) per annum. as detailed in notes 20.364 million carrying mark-up at 2% per annum over the rate of refinance as worked-out by SBP. These finances are repayable in 12 half-yearly instalments of Rs. 2008.820 million carrying mark-up at 2% per annum over the rate of refinance as worked-out by SBP.364 million each commenced from March. 9. 40 million carrying mark-up at 2% per annum over the rate of refinance as worked-out by SBP. These finances are repayable in 12 half-yearly instalments of Rs. 20. These finances are repayable in 12 half-yearly instalments of Rs. 0. 20.11 These finances were obtained during the year 2008 against the sanctioned limit of Rs. 1.333 million each commencing September. has charged mark-up at the rate of 7% (2009: 7%) per annum payable on quarterly basis.12 These finances were obtained during the year 2008 against the sanctioned limit of Rs. 3.27% to 14.15 These finances were obtained during the year 2008 against the sanctioned limit of Rs. UBL. 2008. 0.0%. has charged mark-up at the rate of 7% (2009: 7%) per annum payable on quarterly basis.659 million each commenced from June. UBL. The year-end balance is repayable in 5 43 . 20. has charged mark-up at the rate of 7% (2009: 7%) per annum payable on quarterly basis.43% to 14. 2010. has charged mark-up at the rate of 7% (2009: 7%) per annum payable on quarterly basis.months KIBOR + 0. For the first three years mark-up was charged at the rate of 6 . during the year. 2010. 2008. UBL. 7.

2010 2009 Note Rupees Rupees 22. HBL has converted 50% of this loan facility into Long Term Finance Facility for Plant & Machinery carrying mark-up at the rate of 10. As per the State Bank of Pakistan's Circular No.402 Due to associated undertaking 22.195 Workers' welfare fund 12. during the year. 21.923 13.544.139 3. This loan is repayable in 10 equal half-yearly instalments commencing December.042. 2011 and is secured against exclusive charge of Rs. has obtained term loan facility of Rs.20 The Company.082 49.196. 90 million over machinery imported through HBL.870 Bill payable 0 10. has obtained term loan facility of Rs. 2009. during the year.466 Advances from customers 10. during the current financial year.40% flat.095.875 Unclaimed dividend 275.21 The Company.37% per annum.25% flat.314 10. 12. DEFERRED TAXATION The Company's income for the current year is chargeable to tax under presumptive tax regime of the Income Tax Ordinance. All other terms and conditions including repayment and tenor remain the same.829. has obtained term loan facility of Rs.681.547 million from the sanctioned limit of Rs.299 Accrued expenses 104.954 2.296 million each commencing May.936 million from the sanctioned limit of Rs.23% per annum. TRADE AND OTHER PAYABLES Creditors 57.733.months KIBOR + 200bps.875.2 31.491.182 206. 29 million over machinery imported through HBL.026 Others 1. This loan is repayable in 12 half-yearly instalments of Rs.569 Workers' (profit) participation fund 22.940.768. HBL.561. This loan is repayable in 12 equal half-yearly instalments commencing February.115 Retention money 0 112. 2001.948 . 2009. These finances are secured against first pari passu charge on entire fixed assets of the Company and personal guarantees of all the directors of the Company. during the current financial year. As per the State Bank of Pakistan's Circular No.202 91. has charged mark-up at the rate of 14.631. 13 million over machinery imported through HBL.90 million carrying mark-up at the rate of 6-months KIBOR + 200bps.29% per annum. 20.1 126. 2010 and is secured against exclusive charge of Rs. 20. equal half-yearly instalments by October 2012.254. has charged mark-up at the rate of 14. during the current financial year. HBL has converted 50% of this loan facility into LOng Term Finance Facility for Plant & Machinery carrying mark-up at the rate of 10. HBL. 20. 8 dated 21 April. during the year.504 233. 29 million carrying mark-up at the rate of 6. 13 million carrying mark-up at the rate of 6-months KIBOR + 200bps. 20. however.19 The company. HBL.961. All other terms and conditions including repayment and tenor remain the same.310 344.Mahmood Textile Mills Ltd.821 Tax deducted at source 282. 8 dated 21 April. 2011 and is secured against exclusive charge of Rs. deferred taxation is recognised as management is not certain whether income for the subsequent years will be chargeable to tax under presumptive tax regime or normal tax regime. has charged mark-up at the rate of 14.440.715.847 million from the sanctioned limit of Rs.739 70. 7. 87.039 44 253.

507. lien over export bills.229.198 746.837 1.088 10.79% to 14.444 Un-secured .254. charge on fixed assets. These finance facilities.319 62. These facilities are expiring on various dates by 31 May.231.976.254. during the year.837.298.514 1.026.136 253.049 10.314 33.822 Closing balance 23.774.712 612.230.283 3.360 3.328.023.353.2 Workers' (profit) participation fund (the Fund) Opening balance Add: .Amount paid to the fund .492.018 880.829.393.557.941 43.627 31.578.722. 2010 Rupees 2009 Rupees Note 22.039 1.50%) per annum.236 76.469.338 3.550 billion (2009: Rs.1 24.049.108 billion) remained unutilised at the year-end.1 This represents amounts payable to M/s Khawaja Muzaffar Mahmood Muhammad Masood on account of normal trading transactions.short term borrowings 31.195 Less: .750 2.314 13.195 3. ACCRUED MARK-UP Mark-up accrued on: .Interest on funds utilized in the Company's business . carried mark-up at the rates ranging from 12.462 11.254. SHORT TERM BORROWINGS Secured . 4. pledge of shares and stock-in-trade.Annual Report 2010 22.482.063 92.299 24.829.719.79% (2009: 12.485.426 1. 2.444 24.long term financing .244 13.049. 1.315.252 billion (2009: Rs.060.Short term running finances 24.Allocation for the year 10.974 48.87% to 17.103.549 0 1.299.1 Short term fiance facilities available from various commercial banks under mark-up arrangements aggregate Rs.195 10.492. 2011. The aggregate finance facilities are secured against first hypothecation charge on the Company's current assets.600 billion) of which facilities aggregating Rs. banks' lien over letters of credit and personal guarantees of sponsor directors of the Company. 3.293 16.Amount deposited in the Government Treasury 11.Short term borrowings .Temporary bank overdrafts 24.3 872.1 551. 45 .

capital expenditure .578 million).4 Commitments for irrevocable letters of credit: .current year . 1. the return for the said year has not been taken-up for audit till 30 June.153 85. 2010 aggregated Rs.876 53. TAXATION . 2010 2009 (Rupees in million) 26.Net Opening balance Add: provision made during the year for: .390. 708.560 billion) of which the amounts aggregating Rs. 1.217.1 Income tax assessments of the Company have been completed upto the Tax Year 2009. 2011.000 34. 25.394 30.401 billion (2009: Rs.009 40.3 These have arisen due to issuance of cheques for amounts in excess of the balance in the bank accounts.000 1.Mahmood Textile Mills Ltd.732 22.1 Guarantees given by various commercial banks. 159. 78.3 Local bills discounted outstanding as at 30 June. to various institutions and corporate bodies aggregated Rs.710 million).682.270 46 .851 120.138 39.011 million as at 30 June.093 223. 26.990.2 Foreign bills discounted outstanding as at 30 June.302 25.302 85. 2010 (2009: Rs. These facilities are expiring on various dates by 31 May. CONTINGENCIES AND COMMITMENTS 26. 139.102 68. Nil). 24. 2010.851 86. These facilities are secured against lien over import documents and charge on current assets of the Company. 25. 24.153 Less: payments/adjustments against completed assessments Closing balance 2009 Rupees 28.109 million (2009: Rs. 2010 aggregated Rs.990.others 134.000. 26.2 No numeric tax rate reconciliation has been presented in these financial statements as provision for the current and preceding years mainly represents tax due under section 154 of the Income Tax Ordinance.950. in respect of financial and operational obligations of the Company.000.prior year 33.173.691. 419. 1.157 394.698. 2010 Rupees 25. 1.560 billion (2009: Rs.682.575 260.567 million (2009: Rs.938 33.2 Facilities available for opening letters of credit and guarantee from various commercial bank aggegate Rs.367 billion) remained unutilised at the year-end.691.240 35. 2001.

Net LOCAL Own produced .909.540.168.waste Purchased products: .704.811.cloth .551.Annual Report 2010 Note 27.769.573.388.989).781.778.996.896.waste -doubling/sizing income 2010 Rupees 2009 Rupees 537.247.427 125.833.847 0 3.186 27. 82.830 15.079 Purchased products: .299.306.yarn .266.866.waste 231.768 8.511 5.315 90.030 5.600.007.1 1.055.272.cotton .255.009.277.285.310.344.886 1.296 531.945 7.480 3. 47 .591 3.650 1.318. SALES .659 104.551.267.yarn .847 6.yarn 4.273.525.276.135.746 115.121.381 2.1 Local sales have been shown after deduction of sales tax aggregating Rs.611 50.300.357.247.613 105.yarn .831 27.095 0 578.203.472 6. 67.825.763 (2009: Rs.318 4.091 346.cloth .electricity sales to Multan Electric Power Company Ltd.948.370 74.012.164 408.538.470 1.427 2.534.642 117.357. (MEPCO) .179.525.905 3.547.128.909 518.984 EXPORT Own produced: .

667 5.957.516) (141.959.523.387.254 290.450.3 1.454 5.085.414 million.340 943.974.136.293.854 82.771) (5.187.956.745.963 340.019 6.024.485 28. wages and benefits Power and fuel Repair and maintenance Depreciation Insurance 28.707.900.712 (1.392.Annual Report 2007 Mahmood Textile Mills Ltd.535.983 (40.444.463.1 2010 Rupees 4.727.062 1.724) 3.001 154.917.367.986 1.425 137.996.850 4.365.280.437 3.702.828.897.813 843.665 81.404.062.215 32.125.771 9.319 (15. 48 .300) 799.724 2.Purchased products Opening stock Purchases Closing stock 5.229 3.106.960.402 336. Note 28.602.275.Own manufactured Cost of goods sold .365.582.212) (19.549.394.142. received during the year against loss of raw materials due to fire.885.365.739 (481.001 28.153 (340.096 160.4 Adjustment of work-in-process Opening Closing 40.327.075 0 590.361.850.031.423.441) 35.745.182.819 662.897.711.143 2.367.711.590.777) Cost of goods sold .490 34.498.989.499.800 586.931.324. have been adjusted against raw materials consumption for the current year.977 5.239.451.392.967 Less: closing stock Cotton cess 5.628.058.774.969.667.632.763.717.111 3.549.427.034.739) (139.905 4.485.525.497.988 2.425 Cost of goods manufactured Adjustment of finished goods Opening stock Closing stock 5.697 201.893.404 2009 Rupees 3.617.875 5.986 172.894.569 4.205 28.667.560.306. 53.292.771 (60.1 Raw material consumed Opening stock Purchases and purchase expenses Transfer from Ginning Section 28.586) 5.151 2.691 (1.540) 4.2 Insurance claims aggregating Rs.062. COST OF SALES Raw materials consumed Stores consumed Packing materials consumed Salaries.788) 5.391.186 0 815.

291 269.205.632.692 7.100.381.139.3 Production cost of Ginning Section .496.544 24.892 100.gratuity amounting Rs. after adjustment of sale of cotton seed to outsiders.862.365.4 Expenses for the year includes staff retirement benefit .970.409 516.205 227.445 49 .298 600.327 1.814.282 465.972.375 103.808 9.077.529.884.259 296.424.129 362.461 8.635.990 101.731 7.048.000 24.Net Raw materials consumed including local taxes aggregating Rs.400. wages and benefits Traveling and conveyance Repair and maintenance Stores consumption Utilities Entertainment Stationery Communication Insurance Bank charges Others 2009 Rupees 1.229 Less: sale of cotton seed Transferred to Spinning Section 493.706.983 (2009: Rs. their total cost of production.990 608.602.900 943. 29.242.163 18.402 million).305. DISTRIBUTION COST Advertisement Export expenses Commission Export development surcharge Freight and other expenses 129.460.090 122. has been transferred to Spinning Section as raw materials cost.892 115.544 2.780 1.948 1.710.897 17.910.801.439 million (2009: Rs.391.568. 18.905 The Company has acquired three Cotton Ginning Factories on operating lease.248 945.296 1.507.014 4.915) Lease charges Salaries.979 732.657 1.932 114.721 263.415.256.422.389 803.000 21. 3. 3.853 1.256. 28.667 6.Annual Report 2010 2010 Rupees 28.368 33.719.425 7. 14.627 122.076.540.502.048 1.380.

975 5.321.139 5.495 3.2 2010 Rupees 27.258 2.916.453.226.140 2.885 80. rates and taxes Entertainment Electricity Communication Printing and stationery Insurance Repair and maintenance Vehicles running and maintenance Subscription Advisory fees for acquisition of equity investments in Orient Power Company (Pvt.314 12.505 1.000.net Loss on re-measurement of short term investments at fair value Impairment loss on long term investments Loss on sale of inventory Workers (profit) participation fund Workers welfare fund Obsolete/slow moving stores and spares written-off Provision against doubtful sales tax refunds Special excise duty Uncollectible receivable balances written-off Others 437.918.700 2.000 867.361 0 2.472.644 7.080.025.732 2.434.320.000 75. Note 30.509 118.875 0 0 0 0 0 276.149 140.134.417.277 50 .001 4.467.943.675.605. OTHER OPERATING EXPENSES Donations (without directors interest) Loss on sale of plant and machinery Exchange fluctuation loss Loss on sale of shares .1 30.067 1.615 9.506 2.206.Annual Report 2007 Mahmood Textile Mills Ltd.476.344.000 71.517 million).271 14. 30.796 8.807 4.035 9.382 0 797.990.931 109.321 688.350 10.095.485.489 190.647 45. 31.000 1.000 0 0 2.842 million (2009: Rs.half yearly review Legal and professional charges Depreciation General 30.066 7.272.190.614.111.332 7.373 874.893.893 6.843 30.028.818 7.847 3. 11.554 1.573.352.568 million (2009: Rs.034.710 62.gratuity amounting Rs.940.971.075.677.936. 1.919 3.754.943 2.000 1.466.statutory audit .397.587 7.550 439. Auditors remuneration: .509 25.2 These include directors traveling expenses amounting Rs.372.141.470 61.550 70.1 Expenses for the year includes staff retirement benefits .195 3.520.829.453 0 31. ADMINISTRATIVE EXPENSES Salaries and benefits Traveling and conveyance Rent.811 2009 Rupees 21.888 5.706 million).567 1.745. 13. 2.761.000 1.) Ltd.254.964.

199. 51 .900 180.129.466.342.685 1.843 340.000.158 1.056.336 253.294 62.000 11.249.774 6.981 2010 2009 No. SEGMENT INFORMATION A business segment is a group of assets and operations engaged in providing products that are subject to risk and returns that are different from those of other business segments.168 5.000 0 46. EARNINGS PER SHARE Profit after taxation attributable to ordinary shareholders 2010 Rupees 2009 Rupees 69. OTHER OPERATING INCOME Income from financial assets Return on bank deposits Dividend Interest from Associates Income from non-financial assets Rent Export rebate on packing materials Fines recovered from employees Reversal of excess provision for workers welfare fund Gain on sale of operating fixed assets . the Company is organised into the following three operating segments.991.597.843.000 Rupees Earning per share 38.workers (profit) participation fund Bank charges and commission 34.long term financing [net of mark-up subsidy aggregating Rs.847 4. Management has determined the operating segments based on the information that is presented to the Chief Executive Officer of the Company for allocation of resources and assessment of performance.681. which would have any effect on the earnings per share if the option to convert is exercised.Net Interest/mark-up on: .net 33.231 295. 11. 4.86 34.530.789 2.1 A diluted earnings per share has not been presented as the Company does not have any convertible instruments in issue as at 30 June.887 578.Annual Report 2010 Note 32.740 7.583 102.55 15.short term borrowings .845.207 45. Based on internal management reporting structure and products produced and sold. 35.790 59.539 0 23.025.231.858.627 37.152 60.967 381.000.570 million)] .400.000 Rupees (Restated) 6.732 242. of shares (Restated) Number of ordinary shares issued and subscribed at the end of the year 15. FINANCE COST .500 0 0 136.316.3 58.161 million (2009: Rs.049 26. 2010 and 30 June.476. 2009.

short term investments.141.204.557 (276.785.609 Segment liabilities As at 30 June.466. Unallocated assets mainly include long term investments.551.Annual Report 2007 Mahmood Textile Mills Ltd. other operating income & expenses and taxation are managed at the Company level. tax refunds due from the Government and cash & bank balances.873 1.355.039.020.070.Rupees --------------------------------Year ended 30 June.294 (340.995.754.400.377.433 4.267.797.Weaving .216.571.Spinning .989.321) 4.130 4.754 52 .265. Segment results and assets include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.064.437 714.773 1.674 470. Segment analysis Spinning Weaving Power Total --------------------------------.222. 2010 Revenue Segment results Year ended 30 June.318 344.285.976. deposits for shares.190 646.910. .119.055.030. 2010 Segment assets 2.811.359.119.427 42.150.277) 23.883 1.569 1.808 861.Power Management monitors the operating results of above mentioned segments separately for the purpose of making decisions about resources to be allocated and of assessing performance.730 331.231 1.248.141.709 2009 Rupees 775.869.411 8.557 Reconciliation of segment results with profit from operations: 2010 Rupees 1.255.141 442.961 2.606 292.023.936.797.135.587 3.144.281 Total results for reportable segments Other operating expenses Other operating income Finance cost Profit from Associates Profit from operations Information on assets and liabilities by segments is as follows: Spinning Weaving Power Total --------------------------------.407.760.Rupees --------------------------------Year ended 30 June.531.009.025.718 5.616.139 518.245.141.249.873 411.844 190.746 15.740 (381.705.253 6. long term deposits.583) 48.064.330.723 11. 2009 Revenue Segment results 6.531 408.867.681.381 1.767 416.887) 53. Finance cost.622.433 (190.831 775.794 7.649.975. 2009 Segment assets Segment liabilities 550.674.129.

845. 2009 Assets Liabilities Assets Liabilities --------------------------------.987).975.868 1.525 . management performs credit reviews taking into account the customer s financial position.706.771 944. loans & advances.616.036 2. and .113.Rupees --------------------------------Total for reportable segments 3.107.624. 2010 along with comparative is tabulated below: 53 .392. All the export sales are secured through letters of credit. 1. advance payments are obtained from certain parties.521.961 Unallocated assets/liabilities 801.171 Total as per balance sheet 5.credit risk.461. trade debts.884.228 1.014. the financial assets which are subject to credit risk aggregate Rs. The maximum exposure to credit risk as at 30 June.070. political or other conditions.132 4. other receivables and bank balances.market risk. .24%) and to customers outside Pakistan are 77.255.Annual Report 2010 Reconciliation of segments assets and liabilities with totals in the balance sheet is as follows: As at 30 June. Where considered necessary.001. 1.526 (2009: Rs.Sales to domestic customers in Pakistan are 22.1 Credit risk Credit risk represents the accounting loss that would be recognised at the reporting date if counter parties fail completely to perform as contracted and primarily arises from deposit for shares.76%) of the revenues during the year. Concentration of credit risk arises when a number of counter parties are engaged in similar business activities or have similar economic features that would cause their abilities to meet contractual obligation to be similarly effected by the changes in economic.765. To manage exposure to credit risk in respect of trade debts.liquidity risk. 2010 As at 30 June.330.The Company s customer base is diverse with no single customer accounting for more than 10% of net revenues. short term investments.911.365.739. The Board is also responsible for developing and monitoring the Company s risk management policies.742 (2009: Rs.477 2. .808 861. 36. Out of the total financial assets of Rs. past experience and other relevant factors.606.418.754 4. The management has set a maximum credit period of 60 to 90 days to reduce the credit risk. 774.055).215. The Company s Board of Directors has overall responsibility for the establishment and oversight of the Company s risk management framework.717.580. Geographical Segments All segments of the Company are managed on nation-wide basis and opereate manufacturing facilities and sale offices in Pakistan.609 1.025. 1.44% (2009: 48.785. 36. FINANCIAL INSTRUMENTS The Company has exposures to the following risks from its use of financial instruments: . long term deposits.368.56% (2009: 51. The Company believes that it is not exposed to major concentration of credit risk.

159 289.277 133.299.579.611.548 756.579.537.119 387.346.611.407.963 420.757 269.934.261 Based on past experience.293 62.426 1.880.000 6.399.252 2. Financial liabilities in accordance with their contractual maturities are presented below: Carrying amount Contractual cash flows 2010 Less than 1 Year Between 1 to 5 years 5 years and above Long term financing Short term borrowings Trade and other payables Accrued mark-up --------------------------------.987 134.864 756.119 420.757 368.742 240.002.003.504.624.585.941.277 133.537.159 0 0 62.794 254.253.096.280.293 62.076 8.353.190 2.606.129.698.423 2.742 2009 Rupees 0 6.700.993 4.549 1.191.Rupees --------------------------------853. the Company s management believes that no impairment loss allowance is necessary in respect of trade debts as debts aggregating Rs.232 1.Mahmood Textile Mills Ltd.159.756.015 8.481.934.152.579.070 106.487.926 1.271 774.984.648.251 1.537.757 The majority of export debts of the Company are situated in Asia.992.741.587 have been realised subsequent to the year-end and for other trade debts there are reasonable grounds to believe that the amounts will be realised in short course of time.547. The ageing of trade debts at the year-end was as follows: Not past due Less than 3 months 3 to 6 months over 6 months 417.346.107.2 Liquidity risk Liquidity risk is the risk that an entity will encounter difficulties in meeting obligations associated with financial liabilities.353. 36.416 387.601 54 .159 289.407 7.399.911 387.731 90.261 Trade debts exposure by geographic region is as follows: Domestic Export 166.478. Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities.646 420.548. 351.478.934.353.601 1.809 0 3.103. Deposit for shares Long term deposits Trade debts Short term investments Loans and advances Other receivables Bank balances 2010 Rupees 302.350 252.261 262.216 13.377.232 0 0 289.500.818.302 52.048.828.293 0 0 2.048. The Company s treasury department maintains flexibility in funding by maintaining availability under committed credit lines.881.

4/85.385. 36.292.468 66.451.299 92.814 1.678 1.318.779 635.402 (244.193 (191.82 0.492.468 66.715.8475 55 U.989.906) 4.7796 Balance sheet date rate 2010 2009 85. interest rates and equity prices will effect the Company s income or the value of its holdings of financial instruments.680.578.041 0 0 225.444 1.410.757) US$ (2.85 0.796.050 Yens 0 0 0 26.697.906) 250.488 0 0 92.780 14.094.270.678 The contractual cash flows relating to the above financial liabilities have been determined on the basis of mark-up rates effective at the respective year-ends.733 (2.505.3 Market risk Market risk is the risk that changes in market price.646.S.587 161.490.050 169.299 92.30 104.616.327.925 159.512.441) 10.731.463) 394.094) Yens 0 0 14. a) Currency risk The Company is exposed to currency risk on import of plant & machinery.911) (2.6 81.451. stores & spares and export of goods mainly denominated in U. $ to Rupee EURO to Rupee Yen to Rupee .58 106. Dollar.45 78.488 225.777.371.734.500 (233.58 114.698.000 Trade debts Bank balances Bills payable Gross balance sheet exposure Outstanding letters of credit Net exposure Rupees (252.490.983.816 46. Euro and Japanese Yen.831 2.S.616.996.933. raw materials.509.124 US$ (2.085.9662 0.079) (39.596 The following significant exchange rates have been applied: Average rate 2010 2009 85.566) 72.578. The Company s exposure to foreign currency risk for U.780 31.233.000 (2.9700 0.488 225.753 2.655) 0 (2.989.299 0 0 2.607 635.963) 21.105.001) Euros (79.560.557.318. such as foreign exchange rates.957.S.36 104.Annual Report 2010 Carrying amount Contractual cash flows 2009 Less than 1 Year Between 1 to 5 years 5 years and above Long term financing Short term borrowings Trade and other payables Accrued mark-up --------------------------------.041 1.509.908 2009 Euros 0 0 0 169.000 26.566) 0 0 (79.557.049.733.Rupees --------------------------------695.377. The rates of mark-up have been disclosed in the respective notes to these financial statements. Euro and Japanese Yen is as follows: 2010 Trade debts Short term borrowings Gross balance sheet exposure Outstanding letters of credit Net exposure Rupees (254. Dollar.061.472 (7.557.734) 219.600 862.950) 53.451.

447 913.02% to 5.79% 12.18% 853.10% to 5. 2010 Rupees Effect on profit for the year: U.600 1.5% Fair value sensitivity analysis for fixed rate instruments The Company does not account for any fixed rate financial assets and liabilities at fair value through profit and loss. 56 . the profit and mark-up rate profile of the Company s significant financial assets and liabilities is as follows: 2010 2009 Effective mark-up rate % % 2010 2009 Carrying amount -------.363. Cash flow sensitivity analysis for variable rate instruments A change of 100 basis points (bp) in mark-up rates at the balance sheet date would have (decreased)/increased profit for the year by the amounts shown below.712 695. Dollar.786. Euro and Yen would have had an equal but opposite impact on the profit after taxation.235. b) Interest rate risk At the reporting date.87% to 17.444 12.327.37% 7% to 17.(Rupees) -------- Fixed rate instruments Financial assets Bank balances at saving accounts 5.492.26% 5. Therefore.79% to 14. The analysis is performed on the same basis for the year 2009.577 1.S. Dollar.308. Sensitivity analysis At the reporting date. The sensitivity analysis prepared is not necessarily indicative of the effects on profit for the year and assets/liabilities of the Company.S. Euro and Yen.552 The weakening of Rupee against U.636.305 3.32% Variable rate instruments Financial liabilities Long term financing Short term borrowings 1.096.547 0 0 2009 Rupees 24. $ to Rupee EURO to Rupee Yen to Rupee 23.230. if Rupee had strengthened by 10% against U.298. profit after taxation for the year would have been higher by the amount shown below mainly as a result of net foreign exchange gain on translation of foreign currency financial assets and liabilities.049.999 7% to 14.S.Mahmood Textile Mills Ltd. a change in mark-up/profit rates at the reporting date would not affect profit and loss account. with all other variables held constant.251 1.

270 (21.940.513.770) 21.228. In order to maintain or adjust the capital structure.019 26.940.873. the management diversifies the investments portfolio and continuously monitors developments in equity market. c) Other price risk Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk). 57 . benefits for other stakeholders and to maintain a strong capital base to support the sustained development of its business. In addition. CAPITAL RISK MANAGEMENT The Company s prime objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns for shareholders.228.019 Effect on profit Effect on investments The sensitivity analysis prepared is not necessarily indicative of the effects on profit and investments of the Company. A 10% increase/decrease in share prices of listed companies at the balance sheet date would have decreased/increased the Company s profit in case of investments through profit or loss as follows. the Company s management actively monitors the key factors that affect stock price movement. 37. Other price risk arises from the Company s investment in ordinary shares of listed companies.Variable rate financial liabilities As at 30 June 2009 Cash flow sensitivity-variable rate financial liabilities Increase Rupees (21.513. 36.770 The sensitivity analysis prepared is not necessarily indicative of the effects on profit for the year and liabilities of the Company.Annual Report 2010 Decrease Rupees As at 30 June 2010 Cash flow sensitivity . 2010 Rupees 26. To manage its price risk arising from aforesaid investments. Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable willing parties in an arm s length transaction.4 Fair value of financial instruments Carrying values of the financial assets and financial liabilities approximate their fair values. the Company may adjust the amount of dividend paid to shareholders and/or issue new shares.873. There was no change to the Company s approach to capital management during the year and the Company is not subject to externally imposed capital requirements except for the maintenance of debt to equity ratio under the financing agreements.799 26.270) 21. The Company manages its capital structure by monitoring return on net assets and makes adjustments to it in the light of changes in economic conditions.799 2009 Rupees 26.

831 .003.Mahmood Textile Mills Ltd.310 .759 464.076 31.111 4.856.sale of waste/comber noil 0 45.sale of goods 1.680. 418.845 356.250 5.676 .1 Some of the executives have been provided with the Company maintained cars.687.445 4 Number of persons 13 39. CAPACITY AND PRODUCTION Yarn Number of spindles installed Number of spindles-shift worked Production capacity at 20 s count 1.941.708 .901.567 84. its directors and key management personnel.purchase of shares 0 44.620.000 838.601 100 97.273.094 shifts (2009: 1.257 . 19.doubling revenue 13.586 31.000 893. 173.206.912 90.1 Maximum aggregate balance due from Associated Companies.382 million).rent accrued 36.802.867 11.571.719.gratuity Other perquisites and benefits 9. mtrs.480 .093 shifts) Actual production converted into 20 s count Cloth Number of looms installed Number of looms-shifts worked Installed capacity at 60 picks 1. 38.201.doubling charges 2.957 17. Other significant transactions with Associated Companies during the year were as follows: 2010 2009 Rupees Rupees .132 .725.093 shifts (2009: 1. at any month-end during the year was Rs.341.040.616.2 The Company has related party relationship with its Associated Companies. on account of normal trading transactions.100 3.667 327.739 million (2009: Rs.184 19.608 88 96.551. mtrs.000 0 39.266 838.856 Kgs. 30. There were no transactions with key management personnel other than under the terms of employment.893 30.198 18.sizing charges 0 624.469 . 40.sale of shares 6.211 .912 91.904 Sq.093 shifts) Actual production converted into 60 picks 58 84. Amounts due to related parties are shown under payables and remuneration of key management personnel is disclosed in note 39.629.149.907 834. Transactions with related parties are carried-out on arm s length basis. 38. Sq.111.092. TRANSACTIONS WITH RELATED PARTIES 38.667 306.295. Kgs. REMUNERATION OF EXECUTIVE Managerial remuneration Bonus Retirement benefits .purchase of waste/comber noil 0 235.133 3.purchase of goods 415.496.000 306.327.825 .

It also varies according to the pattern of production adopted in a particular year. 2010 by the board of directors of the Company 42. DATE OF AUTHORISATION OF FINANCIAL STATEMENT These financial statements were authorised for issue on 5th October. twist. MUHAMMAD YOUNUS) CHIEF EXECUTIVE OFFICER CHAIRMAN DIRECTOR sd/(MUHAMMAD AMIN PAL) CHIEF FINANCIAL OFFICER 59 . significant classification made during the year is as follows: . sd/sd/sd/(KH. the width and construction of fabric woven. MUHAMMAD MASOOD) (KH.094 18 13 9 1. GENERAL . spindles speed. which was grouped under the head of loan & advances in the preceding year s balance sheet.Corresponding year s figures have been reclassified for the purpose of better presentation and comparison. has been grouped under the head of tax refunds due from the Government (note 17). .Annual Report 2010 Power House Number of generators installed Number of shifts worked Generation capacity in Mega Watts Actual generation in Mega Watts 9 1.Figures in the financial statements have been rounded-off to the nearest Rupee. etc. except stated otherwise. MUHAMMAD IQBAL) (KH. 41.093 19 12 It is difficult to describe precisely the production capacity in spinning/weaving mills since it fluctuates widely depending on various factors such as count of yarn spun.advance income tax.

60 .Mahmood Textile Mills Ltd.

026.000 Shares 35.000.000 Shares 1.209.788 415.000 Shares 540.000 Shares 420.165 30.001 30.000 Shares 1.322 831.000 Shares 15.000 Shares 175.005.001 245.001 1.000 Shares 795.000 Shares 285.000 PERCENTAGE 44.31 0.000 Shares 870.001 170.001 865.000 Shares 20.186 190.000 Shares 250.045 45.921 8.000 Shares 50.400 45.Annual Report 2010 Annual Report 2007 FORM-34 PATTERN OF SHAREHOLDING AS AT 30TH JUNE.000 Shares 745.865 291.155.000.000 Shares TOTAL SHARES HELD 756 15.B:.001 415.156.282 46.01 54.633 538. Foreign: Others: NUMBER 12 2 1 189 204 SHARE HELD 6.267 1.471 95. Undertakings & related parties: NIT & ICP: Banks.001 290.000 Shares 220.001 1.008 15.186 805.000 Shares 1.782 678.001 1.662 1.648 15.96 0.72 100 N.000 Shares 5.001 215.492 743.743.000 Shares 325.483 Share through Central Depository Company of Pakistan Limited.060 1.000 Shares 100.001 105.671 1.189 323.000 Shares 680.001 740.001 160.523 866.000 Shares 295.438 792.791 16.000 Shares 810.083.000 Shares 10.009.000 Shares 1. Non-Banking Financial Institutions: Joint Stock Companies: Insurance Companies: Modarabas & Mutual Funds: Shareholders Holding 10%: General Public: a.The above two statements include (153) shareholders Holding 1.001 10.160. 61 . 2010 NUMBER OF SHAREHOLDERS 18 65 23 49 6 4 1 1 1 1 4 2 6 1 3 1 3 1 2 1 1 1 1 1 1 1 1 1 1 1 1 204 CATEGORIES OF SHAREHOLDERS Directors.000 Shares 165.000 Shares 110.001 15. Development Financial Institutions.001 190.020.491 15.059 246.001 95.001 805.483 1.001 5.083.001 830.025.435 431.035 649.001 535.001 100 Shares 500 Shares 1.001 1.001 45.144 851.000 Shares 835.000 SHAREHOLDING FROM TO 1 101 501 1.085.001 320.088 1.001 280.001 790.010.474 88.466 645.080.000 Shares 195.774 47.022. Chief Executive Officer. Local: b. & their spouse & Minor Children: Associated Companies.001 675.

Name fo Director.156.220 4 Khawaja Muhammad Younus Mst.492 95. Khadija Qureshi (Spouse) 678.435 773.400 62 .782 743. Humera Jalaluddin (Spouse) 1. Muhammad Muzaffar Iqbal Mrs.009.031 586. Mehr Fatima (Spouse) Khawaja Muhammad Masood Already given above.322 TOTAL SHARES 1.653 5 Khawaja Muhammad Jalaluddin Roomi Mrs. Grand Total: 6. ALONGWITH SPOUSE AND MINORS Sr.035 1.Mahmood Textile Mills Ltd.664 7 Mst.526 6 Mr.491 190.438 1.633 171.130 939. of shares Held 1.346. Already given above.088 805.743. 1 Khawaja Muhammad Masood Mst. SHAREHOLDINGS OF DIRECTORS. Attiya Fatima (Spouse) 415.410 2 Khawaja Muhammad Iqbal Mst. Bilquees Akhtar (Spouse) 538. RubinaYounus (Spouse) 831. Mehr Fatima (Spouse) No.282.523 108.814.927 3 Khawaja Muhammad Ilyas Mst. No.

Signed by the siad Affix Revenue Stamp IMPORTANT This form of proxy. must be deposited at the Company's Registered Office at Mehr Manzil. hereby appoint__________________________________ ____________________________________________________________________________________ of__________________________________________________________________________________ as my proxy in my absence to attend and vote for me and on my behalf at the (Ordinary or/ and extraordinary as the case may be) General Meeting of the Company to be held on the ____________________________________________________________________________________ and at any adjournment thereof___________________________________________________________ Day of_____________________________ 2010. 63 . Multan not less than 48 hours before the time for holding the meeting.. Lohari Gate.___________________________________________________________________________________ of__________________________________________________________________________________ being a member of Mahmood Textile Mills Ltd.Annual Report 2010 FORM OF PROXY I. duly completed.

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