2019 ANNUAL REPORT NTN Masood Textile Mills Limited naa one "iNTAMASOOD TEXTILE MILLS LIMITED m I rl CONTENTS Page COMPANY INFORMATION 4 NOTICE OF ANNUAL GENERAL MEETING 56 OIRECTORS' REPORT TO THE MEMBERS 79 ‘SIX YEAR FINANCIAL RESULTS wo VISION / MISSION STATEMENT ny STATEMENT OF COMPLIANCE WITH THE CORPORATE GOVERNANCE: 12-13 REVIEW REPORT TO THE MEMBERS 4 AUDITORS’ REPORT TO THE MEMBERS: 15 BALANCE SHEET 1617 PROFIT AND LOSS ACCOUNT 18 ‘STATEMENT OF COMPREHENSIVE INCOME wy CASH FLOW STATEMENT 20 STATEMENT OF CHANGES IN EQUITY 21] NOTES TO THE FINANCIAL STATEMENTS 22-50 PATTERN OF SHAREHOLDING 51-52 NAMEWISE CATEGORIES OF SHAREHOLDERS 5o54 FORM OF PROXY i)MASOOD TEXTILE MILLS LIMITED Nate COMPANY INFORMATION CHAIRMAN CHIEF EXECUTIVE OFFICER DIRECTORS COMPANY SECRETARY CHIEF FINANCIAL OFFICER AUDIT COMMITTEE HR & REMUNERATION COMMITTEE AUDITORS. SHARE REGISTRAR REGISTERED OFFICE MILLS MR. NASER AHMAD SHAH MR. SHAHID NAZIR AHMAD MR. MUHAMMAD ARSHAD MR, MATLOOB HUSSAIN MR. FAZAL AHMAD MR. SHOAIB AHMAD KHAN (Nominee-NIT) MISS CHEN YAN (Nominee-Shanghai Challenge Textile Co. Ltd) MIAN ABDUL BARI MR, MUHAMMAD SHAHID NAVEED MR. FAZAL AHMAD (Chairman) MR. MATLOOB HUSSAIN MR. MUHAMMAD ARSHAD MA. MUHAMMAD ARSHAD (Chairman) MR. NASEER AHMAD SHAH MR. MATLOOB HUSSAIN M/S. RIAZ AHMAD & COMPANY CHARTERED ACCOUNTANTS ‘ORIENT SOFTWARE & MANAGEMENT ‘SERVICES (PVT) LIMITED ‘95-2, AMEER PLAZA, OPP: MUJAHID HOSPITAL, ‘(COMMERCIAL CENTRE, MADINA TOWN, FAISALABAD. PHONE: 041-8711930-8715759 FAX: 041-8711930 UNIVERSAL HOUSE, 17/1, NEW CIVIL LINES, BILAL ROAD, FAISALABAD. PHONE: 041-2600176-276 FAX: 041-2600976 32-K.M., SHEIKHUPURA ROAD, FAISALABAD,MASOOD TEXTILE MILLS LIMITED. fit NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that the 31 Annual General Meeting of the members, holding Ordinary Shares. ‘of Masood Textile Mils Limited, will be held at its Registered Ottice, Universal House, 17/1, New Civil Lines, Bilal Fioad, Faisalabad on Saturday, 31% October, 2015 at 11:00 A.M. to transact the following business: : 1. To confirm the minutes of the last Annual General Meeting held on 31" October, 2014. 2. To recsive and adopt the Audited Accounts of the Company for the financial year ended 30th June, 2015. 3. To approve the payment of cash dividend @ 43.50% (Rs. 4,35 per ordinary share), as recommended by the Board of Directors. 4, To.appoint Auditors and to fix their remuneration for the financial year ending 30th June, 2016. M/s Riaz Ahmad & Company, Chartered Accountants, retire and being eligible offer themselves for their re-appointment. ‘To consider any other business that may be placed before the meeting with the permission of the chair. FOR AND ON BEHALF OF THE BOARD Falsalabad: 06 October, 2015 (COMPANY SECRETARY) NOTES: 1. Share Transfer Books for Ordinary Shares of the Company will ramain closed fram 29th October to Osth November, 2015 (both days inclusive) for the determination of entitlement of cash dividend on ‘Ordinary Shares, Physical transfers / CDS Transactions IDs. received in order at Registered Otfice of the Company or our Share Registrar, by the close of business on 28th October, 2015 will be treated in time, 2, Share Transfer Books for Preference Shares of the Company will remain closed from 23th October to 05th Noveriver, 2015 (both days inclusive) for determining the entitlement of Preferred Dividend calculated at average six months KIBOR+200 bps p.a. (Rs.1.19 per share). Physical transfers / CDS Transactions IDs, received in order at Registered Office of the Company or our Share Registrar, by the close of business on 28th October, 2015 will be treated in time. 3. A shareholder entitled to attend and vote at this mesting may appoint another shareholder as hisMher proxy to attend and vote on his/her behalf. The instrument appointing a Proxy and Power of ‘Attomey or other authority under which it is signed or notarially certified copy of the Power of ‘Atlomey must be received at the Registered Office of the Company, duly stamped, signed and witnessed not later than 48 hours before the meeting. An instrument of Proxy applicable for meeting is attached herewith. However, Preference Shareholders are not entitled to attend the meeting, since Preference Shares carry no voting rights.MASOOD TEXTILE MILLS LIMITED i I ml 4, Share holders whose shares are deposited with Central Depository System (CDS) are requested to bring their Computerized National Identity Card (CNIC) along with their Account Number in CDS for verification. In case of corporate entity, the Board of Directors’ Resolution/Power of Attomey with specimen signatures of the nominee shall be produced (unless provided earlier) at the time of the ‘meeting. ‘Share holders are requested to notify any change in their addresses immediately. The share holders claiming exemption from Zakat are required to file their Declaration with our Share Registrar. Moreover, the share holders who have not yet submitted their Computerized National Identity Cards to the Company are requested once again to send them at their earliest, in compliance to the instructions of Securities & Exchange Commission of Pakistan for printing CNIC # on Dividend Warrants,MASOOD TEXTILE MILLS LIMITED, i I ml DIRECTORS’ REPORT TO THE MEMBERS We have the honor to present our Stst Ahnual Report, comprising of Annual Accounts of the Company tot the financial year ended 30th June, 2016 along with Auditors’ Report thereon and other required information prescribed under the Code of Corporate Govemance. The financial results of the Company for the year under discussion reflect an increase of 10,66 % in sales which was increased from Rupees 24,371.128 Million to Rupees 26,967,899 Million during the year under review. The Net profit for the year before taxation was reduced {rom Fupees 1,174.144 Millon to Rupees 1,032,150 Million, thus reflecting net decrease of 0.59% of sale. The declared financial resuts was reduced due to increase in cost of production on stecount ot general inflationary trend of cost components including increase in minimum wages coupled with depreciation of US Dolar compared to Pak Rupees for export realization compared to previous year. Despite all, the management employed its agatessive efforts to enhance efciency and value added productivity to achieve improved financial results by reducing the rlegative impact at above factors. The comparative financial resuits of the Company are reproduced, hereunder: 2018 2014 (RUPEES IN THOUSAND) SALES 28,967,899, 24,371,128 COST OF SALES (22,988,317) (20,435,916) GROSS PROFIT 9,979,582 399512 DISTRIBUTION CosT (1,472,973) (1,189,311) ADMINISTRATIVE EXPENSES (477,492) (443,202) OTHER EXPENSES (54,490) (61,398) (2,008,863) (1,864,539) 1974619 227.273 OTHER INCOME . : 60,424 45,927 PROFIT FROM OPERATION 2,035,043 2,316,600 FINANCE COST (1,002,888) (142,456) PROFIT BEFORE TAXATION 1092,160 1.174144 ‘TAXATION (278.037) (235,845) PROFIT AFTER TAXATION 936,209 EARNINGS PER SHARE-BASIC (RUPEES) 11.88 3495 -DILUTED (RUPEES) 1194 1417MASOOD TEXTILE MILLS LIMITED fi T ml Pursuant to availing fruits of GSP-plus status granted by European Union to Pakistan, effective since First ‘January, 2014 we have increased our export volume with European customers without reducing the volume of our exports to America and Canada, during the year under review. However, we continued our efforts to find out new customers to increase our margins. Accordingly, a moderate expansion was made under BMR to enhance efficiency and value added productivity to meet the requirements of our European along with existing customers. This was required to accelerate our efforts to attract new customers to capture further Business opportunities. In view of above, we are confident enough to achieve better financial results in future due to encouraging business ‘environment and marketing strategy to enhance export volume with existing customers. Keeping in view the continuous payout history of the Company, your Directors have recommended 43.60 % cash dividend (Rupees 4.35 per share} for holders of Ordinary Shares forthe financial year, under review. In addition to Ordinary Shares, the Company had originally issued 60.000 milion Preference Shares of the value ‘of Rupees 600.000 milion to the financial institutions to meet its funds requirements, After expiry of their maturity, the process of their redemption continued at the option of the Company. During the financial year under review, sixth redemption of 500,000 Preference Shares was affected, as per our obligation. Under the agreed terms and conditions, Preferred Dividend of Rupees 1.19 per share has been computed against balance 34,833,394 Preference Shares on the basis of average six months KIBOR+200 bps p.a. During the financial year under review. 2 material information was conveyed to the Stock Exchanges as to acquisition of 14.621 274 shares (equal to 24.36 % of the Company’s Ordinary Shareholding) by a Chinese Company, namely " Shanghai Challenge Textile Co, Ltd. through a privately negotiated deal. it nominated Miss Chen Yan on the Board of Directors. She was appointed as Director on the Board, in place of, the outgoing Director, Mr. Shahid Iqbal. The Board has expressed its joy and pleasure over the inclusion of Chinese Director. ‘Subsequent to the close of the financial year, another Chinese Company, namely Zhejiang Xinao Industry Co, Lid, acquired 7 636 550 shares (equal to 12.73 % of the Company's Ordinary Shareholding) through a privately negotiated deal, We welcome the Chinese investment in the textile sector of cur motherland, It is hoped that the business of our Company wil further flourish due to transfer of technical knowhow and marketing/production synergies available due to Chinese investors as our partners. Keeping in view the relevant provisions of Corporate Governance-2012, the Directors are pleased to state that financial statements, prepared by the management of the Company, present its state of affairs fairy, the result of its operations, cash flows and changes in equity. Proper books of accounts have been maintained. Appropriate accounting policies have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment. International Financial Reporting Standards, as applicable in Pakistan, have been followed in preparation of financial statements and any departures there from have been adequately disclosed and explained. The Directors further state that the system of internal control is sound in design and has been effectively implemented and monitored. There are no significant doubts upon the ‘Company's ability to continue as a going concern,MASOOD TEXTILE MILLS LIMITED Mi fl Five meetings of the Board of Directors were held during the financial year, with the following attendance: S.No Name fo Directors No. of Meetings ‘Attended Mr. Naseer Ahmad Shah Mr. Shahid Nazir Abrmad. Mr. Muhammad Arshad Mr, Matloob Hussain Mr. Shad Iqbal Mr. Fazal Ahmad Mr. Shoaib Ahmad Khan (Nominee-NIT) a Miss Chen Yan o (Nominee-Shanghai Challenge Tex.Co.L1¢.) Likewise, five meetings ofthe Audit Committee were held during the financial year, withthe following attendance: S.No Name fo Directors No. of Meetings Attended 1. Mr. Fazal Ahmad 5 2 Mt, Matloob Hussain 5 3. Mr. Shahid tabal 3 4. Mr, Muhammad Arshad 2 M's Riaz Ahmed & Company, Chartered Accountants, retire and being eligible, offer themselves for their re-appointment. As advised by the Audit Committee, the Board of Directors has recommended their re-appointment as auditors of the Company for the next financial year ending 30th June, 2016. The Statement of Compliance with the Code of Corporate Govemance is enclosed. Annexed to the Directors’ Report, we are enclosing our comparative financial data for the last six years. We are also enclosing Form-34 containing the pattem of share holding along with prescribed additional information, as on 30th June, 2015. Inthe last, we express our satisfaction for maintaining discipline and healthy atmosphero by the workers at their work places. We also extend our appreciation to our executives for employing their hard working in achieving their targets successfully. Thanks to our customers, suppliers, bankers, advisers and shareholders for their continued support and guidance. We are confident enough to continue our joumey with the co-operation and collaboration of our Chinese partners. FOR AND ON BEHALF OF THE BOARD Faisalabad: 06 October, 2015 (SHAHID NAZIR AHMAD) Chief Executive OfficerMASOOD TEXTILE MILLS LIMITED fi T ml SIX YEARS FINANCIAL RESULTS (RUPEES I THOUSAND} 2015 2014 mats m2 aot 2010 ‘SMES 25967889 24571,128 22744589 10274703 18524990 14,720,830 ‘cost OF SALES (2298817) (en435.918) (1ReIRTG) (16.052.482) _(15582,168) (12085511) (GROSS PRORT Sarge — aeREet2 390577 Szmzat sr 518 ‘YSTRIBUTION COST Gare97a) | Gassarn] | a2roasal | 104ea| err 30409] ADMINISTRATIVE EXPENSES cer7ssa) | (asza2) )oassia) | ioszs)| | aeasseil} —ara0s0) OTHER EXPENSES 64499) |__61s06) |_ a. (sse4s) | 153016) _@435t) (2.008968) (1864509) (L715.877) (4,286,606) (1,165.70) (1.149.859) Tamets 227127 2189796 «1.908708 «1907972 1.485.450 OTHER INCOME eas 57 SAR RBE] 14.2 ‘PROFIT FROM OPERATIONS 2gs5oss 2915600 Azasz82 0856 pence! 1498702 FFNANCE COST (002698) (1142486) (1.105926) (e808) ees.o7e) (685274) ‘SHARE OF LOSS FROM ASSOCIATE : : (160) : PROFIT BEFORE TAXATION a2 150 741M 1108198 ga9200 4d aNT LABMASOOD TEXTILE MILLS LIMITED Ki l fl VISION STATEMENT producer of textile products by providing the highest quality of products and services, 10 its customers, * To strive excellence through commitment, integrity, honesty and team work. + Highly ethical company and be respected corporate citizen to continue playing due role in the social and environmental sectors of the company. + To develop and extremely motivated and professional trained work force, which would drive growth through innovation and renovation. * Sustained growth in earning in real terms, MISSION STATEMENT Our mission is to be a dynamic, profitable and growth oriented company by providing good return on investment to its shareholders. and investors, quality products to its customers, a secured and friendly environment place of work to its employees and to project Pakistan's image in the intemational market.MASOOD TEXTILE MILLS LIMITED ii I fl | STATEMENT OF COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE FOR THE FINANCIAL YEAR ENDED 30 JUNE, 2015 This statement is being presciived to comply with the Code of Corporate Governance contained in Listing Regulations of Karachi, Lahore and Islamabad Stock Exchanges, for the purpose of establishing a framework of good governance, whereby a listed company is managed in compliance with the best practices of comorate govemance. The Company has applied the principles contained in the code in the following manner: 1, The Company encourages representation of independent non-executive directors representing minerity interests on its Board of Directors. Al present the Board includes, Category Names Independent Director Mr, Shoaib Ahmad Khan Executive Director : Mr. Shahid Nazir Ahmad Non-Executive Directors Mr. Naseer Ahmad Shah, Mr. Muhammad Arshad Mr. Fazal Ahmad, Mr. Matloob Hussain, Miss Chen Yan 2. The directors have confirmed that none of them is serving as a director in more than seven listed companies, including this Company. 3. All the resident directors of the Company are registered as tax payers and none of thom has defaulted in payment of any loan to a banking company, a OFI or an NBFI or. being a member of a stock exchange, has been declared as a defaulter by that stock exchange. 4, A-casual vacancy was occurred on the Board during the financial year due to resignation of Mr. Shahi labal. Miss Chen Yan was appointed in place of the outgoing Director, for the remainder period. She represented “Shanghai Challenge Textile Co. Ltd., China’, on the Board. Other Directors continued to conduct the business of the company, as before, 5. The Company has prepared a ‘Code of Conduct’ to ensure that appropriate steps have been taken to disseminate it throughout the Company along with its supporting policies and procedures. 6. The Board has developed a Visior/Mission Statement, overall corporate strategy and significant policies of the Company. & complate record of particulars of significant policies along with the dates on which they were ‘approved or amended has been maintained. 7. All the powers of the Board have been duly exercised and decisions on material transactions, including appointment and determination of remuneration and terme and conditions of employment of the CEO and other executive and non-executive directors, were taken by the Board. 8 The meetings of the Board were presided over by the Chairman and in his absence by a director elected by the Board and the Board met atleast once in every quarter. Written Notices of the Board Meetings, along with agonda and working papers, were circulated at least seven days before the meetings. The minutes of the meetings were appropriately recorded and circulated. 9. The Board managed to arrange the prescribed training programme for its Directors. During the financial year, Mr. Muhammad Arshad caried out Orientation Course, from the Institute of Chartered accountants of Pakistan to acquaint him with the code, applicable laws, his duties and responsibilities to enable him to effectively manage the affairs of the Company.MASOOD TEXTILE MILLS LIMITED. ik nl 10. The Board has ‘already approved appointments of Chief Financial Orficer, Company Secretary and Head of Internal Audit, including their remuneration and terms and conditions of employment. 11, The Directors’ Report for this year has been prepared in compliance with the requirements of the CCG and fully describes the salient matters required to be disclosed, 12, The financial statements of the Company were duly endorsed by CEO and CFO before approval of the Board. 18. The Directors, CEO and Executives do not hold any interest in the shares of the Company other than that disclosed in the pattem of shareholding. 14, The Company has complied with all the corporate and financial reporting requirements of the CCG. 15, The Board has formed an Audit Committee. It comprises of three non-executive directors including the Chairman of the Commitee. 16. The meotings 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 CCG. The terms of reference of the committee have been formed and advised to the committee for compliance. 17, The Board has formed an HR and Remuneration Committee. tt comprises of three non-executive directors including the Chairman of the Committee. 18, The Board has set up an effective intemal audit function, 19. The statutory auditors of the Company have confirmed that they have been given a satistactory rating under the quality control review programme of the Institute of Chartered Accountants of Pakistan, that they or any of the partners of the firm, their spouses and minor children do not hold shares of the Company and thatthe firm ‘and all its partners aro in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by Institute of Chartered Accountants of Pakistan, 20. The statutory auditors or the persons associated with them have not been appointed to provide other services ‘except in accordance with the listing regulations and the auditors have confirmed that they have ebserved IFAC guidelines in this regard, 21, The ‘closed period’, prior to the announcement of interimifinal resus, and business decisions, which may ‘materially affect the market price of company’ securities, was determined and intimated to the directors, ‘employees and stock exchanges. 22. Matorial/price sensitive information has been disseminated among all market participants at once through stock exchanges, 23, We confi that all other material principles enshrined in the COG have been cored with, excopt those towards which reasonable progress is being made by the company to seek compliance by the end of next accounting year. For Masood Textile Mills Limited Falsalabad: (SHAHID NAZIR AHMAD) 06 October, 2015 Ghiet Executive OfficerMASOOD TEXTILE MILLS LIMITED MK Tl | REVIEW REPORT TO THE MEMBERS ON THE STATEMENT OF COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE We have reviewed the enclosed Statement of Compliance with the best practices contained in the Code of Corporate Governance (the Code) prepared by the Board of Director MASOOD TEXTILE MILLS LIMITED (the Company’) for the year ended 30 June 2015 to comply with the requirements of Listing Regulations of the respective Stock Exchanges where the Company is iste. ‘The responsibilty for compliance with the Code is that of the Board of Directors of the Company. Our responsibilty is to review, to the extent where such compliance can be objectively verified, whether the statement of compliance reflects the status of the Companys compliance with the provisions of the Code and report it it does not and to highlight any non-compliance witht the requirements of the Code. A review is limited primarily to inquiries of the Company's personnel and review of various documents prepared by the ‘Company to comply with the Code, As a part of our audit of financial statements we are required fo obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. We are not required to consider whether the Board of Directors’ statement on intemal control covers all risks and controls or to form an opinion on the effectiveness of such internal controls, the Company's corporate governance procedures and risks. ‘The Code requires the Company to place before the Audit Committee, and upon recommendation of the Audit Commitee, place before the Board of Directors for their review and approval its 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 and recording proper justification for using such alternate pricing mechanism. We are only require and have insured compliance of this requirement to the extent of the approval of the related party transactions by the Board of Directors upon recommendation of the Audit Committee. We have not carried out any procedures to determine whether the related party transactions wore undertaken at arm's length price or net. Based on our review, nothing has come to our attention, which causes us to believe that the Statement of Compliance does not appropriately reflect the Company's compliance, in all material respects, with the best practices contained in the Code as applicable to the Company for the year ended 30 June 2015. RIAZ AHMAD & COMPANY Chartered Accountants ‘Name of Engagement Partner: ‘Mubashar Mehmood Dato: 06 October, 2015 FAISALABADMASOOD TEXTILE MILLS LIMITED + AUDITORS’ REPORT TO THE MEMBERS ‘Wo have auedted the annexed balance shoot of MASOOD TEXTILE MILLS LIMITED (the Company’) as at 30 June 2015 and the related profit and loss account, statement of comprehensive income, cash flow statement and statement of changes, In equity together with the notes forming part thereo!, for the year then ended and we state that we have obtained all the Information and explanations which, to the best of our knowledge and belief, wore necessary for the purposes of our aud. {tis the responsibilty of te company’s management to establish and maintain a system of intemal control, and prepare and present the above said slatoments in conformity with the approved accounting standards and the requicements of the Companies Ordinance, 1984. Our responsibilty iso express an opinion on these statements based on our audit. We conducted our auait in accordance with the auditing standards as applicable in Pakistan. These standards require that wo plan and perform the audit to obtain reasonable assurance about whether the above sald statements are free of any ‘material misstatement, An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the above said statements. An auct also includes assessing the accounting policies and significant estimates made by ‘management, as well as, evaluating te overall presentation of the above said statements. We believe that our aut provides a reasonable basis for our opinion and, after due verification, we report that (@) in our opinion, proper books of account have been kept by the Company as requited by the Companies Ordinance, 1984; ©) in curopinion: |) the balance sheet and proft and oss account together with the notes thereon have been drawn up in confonity with the Companies Ordinance, 1984, and are in agreement with the books of account and are further in ‘accordance with accounting polices consistently appied: 4) the expenditure incured curing ne year was forthe purpose of the Company's business: and li) the business conducted, investments made and the expenditure incurred during the year were in accordance withthe objects of he Company; (©) In our opinion and to the best of our information and according to the explanations given to us, the balance sheet, profit and loss account, statement of comprehensive Income, cash flow statement and statement of changes in equity together withthe notes forming part thereot conform with approved accounting standards as applicable in Pakistan, ‘and, give the information required by the Companies Ordinance, 1984, in the manner s0 required and respectively ‘9 a true and fair iow of the state of tho Company's afars as at 30 June 2015 and of the prof its comprehensive lncome, its cash flows and changes in equity for the year then ended: and (4) in our opinion, Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVI of 1980), was deducted by the Company and deposited in the Central Zakat Fund established under Section 7 ofthat Ordinance, RIAZ AHMAD & COMPANY é Chartered Accountants Name of Engagement Partner: ‘Mubasher Mehmood Date: 06 October, 2015 FAISALABADMASOOD TEXTILE MILLS LIMITED NOTE EQUITY AND LIABILTES SHARE CAPITAL AND RESERVES ‘Authorized share capital 1125 000 000 (2014 : 125 000 000 ) ordinary shares ‘of Rupees 10 each £0 000 000 (2014 : 60 900 000 ) preference shares: of Rupess 10 each Jagued, subscribed and paid up share capital 3 Reserves 4 Total equity ‘Surplus on revaluation of freehold land 5 NON-CURRENT LIABILITIES Long tern financing Liabilities against assets subject to finance lease 7 Deferred liability for gratuity (CURRENT LIABILITIES ‘Trade and other payables: 9 ‘Acerued mart-up 10 ‘Short term borrowings 1 Current portion of nomcurent tabilties 12 Provision for taxation ‘TOTAL LIABILITIES: CONTINGENCIES AND COMMITMENTS. 13 ‘TOTAL EQUITY AND LIABILITIES. ‘The annexed notes form an integral part of these financial statements. ‘CHIEF EXECUTIVE OFFICER nA BALANCE SHEET AS 2015 2014 (RUPEES IN THOUSAND) 1,250,000 1,250,000 {600,000 1,850,000, 948,933, 953,933, 5,507,259 865,452. 6,455,592 5,818,785 606,233 606,233 949,443 1,523,918 93,849 97,931 431,923 426,889 1,475,215 2,088, 138 2,205,160 2,445,831 155,647 224,442 11,044,480 9,993,466 750,675 810,797 278,037 | 235,845, 14,433,949 13,650,381 15,909,164 15,688,519 113,587,MASOOD TEXTILE MILLS LIMITED. AT 30 JUNE 2015 ASSETS NON-CURRENT ASSETS Property, plant and equipment Long term advances Long term security deposits ‘CURRENT ASSETS ‘Stores, spare parts and loose tools, Stock in trade Trade debts Loans and advances ‘Short term deposits and prepayments Other receivables Cash and bank balances TOTAL ASSETS NOTE “ 15 16 7 18 19 Nite 215 2014 (RUPEES (N THOUSAND) 6,582,729 5,772,898 73 3.819 50,183 30,707 6,633,625 5,827,424 1,010,124 1,187,030 5275563 7.215,963 6,911,990 5,415,608 315,190 574,559 550,694 497,242 1,106,224 1,000,862 1,167,579 444,849 16,337,384 16,286,113 22,970,389 DIRECTORMASOOD TEXTILE MILLS LIMITED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE 2015, SALES COST OF SALES GROSS PROFIT DISTRIBUTION COST ADMINISTRATIVE EXPENSES OTHER EXPENSES OTHER INCOME PROFIT FROM OPERATIONS FINANCE COST PROFIT BEFORE TAXATION TAXATION PROFIT AFTER TAXATION EARNINGS PER SHARE-BASIC (RUPEES) = DILUTED (RUPEES) NOTE 24 25 26 28 30 a1 31 NTefl 2015 2014 (RUPEES IN THOUSAND) 26,967,899 24,971,128 (22,988,317) (20,435,316) 9,979,582 3,995,612 (2,004,963) 1,974,619 60,424 2,095,043, (1,002,898) 1,082,150 (278,037) 754,113, 11.88 11.94 ‘The annexed notes form an integral part of these financial statements. ‘CHIEF EXECUTIVE OFFICER (1,159,911)| (443,282)| (61,996)| (1,664,539) 2,271,273 45,927 2,316,600 (1,142,456) 1,174,144, (235,845) 938,299 DIRECTOR:MASOOD TEXTILE MILLS LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015 PROFIT AFTER TAXATION OTHER COMPREHENSIVE INCOME lems that will not be reclassified subsequently to profit or loss: Experience adjustment on defined benefit plan Items that may be reclassified subsequently o profit or loss ‘TOTAL COMPREHENSIVE INCOME FOR THE YEAR ‘The annexed notes form an integral part of these financial statements. ‘CHIEF EXECUTIVE OFFICER 2015 2014 (RUPEES IN THOUSAND) 754,113 938,299 19,014 332 19,014 332 DIRECTORMASOOD TEXTILE MILLS LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2015 NOTE CASH FLOWS FROM OPERATING ACTIVITIES Cash generated trom operations: 32 Finance cost paid Income tax paid Dividend paid to ordinary shareholders, Dividend paid to preference shareholders Gratuity paid Net decrease irtong term advances, [Net decrease! (increase) in ong term security deposits Net cash from / (used in) operating activities ‘CASH FLOWS FROM INVESTING ACTIVITIES Proceeds trom sale of property, plant and equipment Capita expenditure on property, plant and equipment Proceeds from sale of avestmontin ansociate Net cash used in Investing activitios CASH FLOWS FROM FINANCING ACTIVITIES Procosds from long tem financing Repayment of long ter financing Repayment of preference sheres Ropayment of ables against assets subject to finance lease Shor torm borrowings - net Net eash trom financing activities, NET INCREASE! (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE. BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR {NOTE 22) ‘The annexed notes form an integral part of these financial statements, ® ‘CHIEF EXECUTIVE OFFICER 2015 NTefl 2018 (RUPEES IN THOUSAND) 3,160,193 601,455 (1,071,688) (1,102,319) (293,218) (916,532) (69,618) (104,606) (41,320) (60.431) (158,547) (82,078) 3,106 2235 524 15,603) 1,509,372 (1,087,879) 40,763, 15,567 (1,247,480) (693.823) : 160 (1,206,867) (678,096) 132,000 87.597 (754,095) (688,520) (6,000) (41,887) (63,304) (65,557) 1,110,964 2,343,349 420,025 1,885,192 722,730 (80,783) 444,849 525,632 ‘DIRECTORMASOOD TEXTILE MILLS LIMITED. Balance as a1 30 June 2013 Proteranceehaes reais ‘Tearsened torn capil redemption reserve fund Transfered to capt redemption reserve fund Dhondt at the ral of Ropees 1.75 ar share (Oniaty share) Diidond at the rte of Rupees 1.27 ‘ber share (Preterence shares) Proft forte year ‘tor comprehensive income forthe year Total comprehensive cane oc he year Belance es at 30 June 2014 Preroce shares reeld Translened tom capital rederpton reserve tune Dividend at the rte of pees 1.50, per share (Onirary shares) Dividend at the rt of Rupees 1.18 per share (Prelerence shares) Prot forte year ‘ter comprehensive name forthe eat Toil compressive eae or he year Balance ax at 30 June 2015, STATEMENT OF.CHANGES IN EQUITY Nii ‘The annexed notes form an integral prt hese fen stamens ‘CHIEF EXECUTIVE OFFICER FOR THE YEAR ENDED 30 JUNE 2015, TEER : suane serie ree ora, Shaw | Revers Uz cura gion |SuTol| Genea| pine | SiTan | TOTAL | FO Pre] Fant Prt sarees w rusanny esto ange) Twa SBI Tuto RemLS asteaTY Aozora ey (wise ven Wrest eam ee Sonne gen aes : = + 10500) 850056) (85.00 eee eee 040) tans) att) 4) : eam] az|| ceze|[ nemo ete fe iL. | so] selfs] se : a CaaS NISSAN SIN 7IAGOD AEITOWE AHN aeESAEe STE gaa ee eee eC = 0% = 00) 009m : = =e) sa00H 000) om09 = 9 aay ee TT] mare] re] | ean = IL | seta “toe |“taone : mane rae ai Tar TERR _TRR_SARS THE AO G_TRE _sewramn bee DIRECTORMASOOD TEXTILE MILLS LIMITED nl NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 1 24 a) ») ° ‘THE COMPANY AND ITS OPERATIONS Masood Textile Mills Limited is a public limited company incorporated under the companies Act, 1913 (Now Companies Ordinance, 1984) and listed on the stock exchanges in Pakistan. Its registered olfice is situated at Universal House, 17/1, New Civil Lines, Bital Road, Faisalabad. The main objects of the company aro ‘manufacturing and sale of cottor/synthetic fiber yam, knitted/dyed fabrics and garments, ‘SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. ‘The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, uniess otherwise stated: Basis of Preparation Statement of Compliance These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise cf such Intemational Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, provisions of and directives issued under the Companies Ordinance, 1984. (n case requirements difer, the provisions or directives of the Companies Ordinance, 1964 shall prevail ‘Accounting Convention ‘These financial statements have been prepared under the historical cost convention except for the following: + Deterred ‘ably forthe staff retiement benefits which is recagnized on the basis of actuarial valuation (ote 8). + Land grouped in operating fixed assets which is cartied at revalued amount (Note 14.1). Critical accounting estimates and judgments ‘The preparation of financial statements in conformity wth the approved accounting standards requires the se of certain entical accounting estimates. It also requites the management to exercise its judgment in the process of appiying the company’s accounting policies. Estimates and judements are continually evaluated and are based on historical experience and other factors, including expeciation of future events that are believed to be reasonable under the circumstances. The areas where various assumptions and estimates are significant to the companys financial statements or where judgments were exercised in application of ‘accounting policies are as follows: Deterred liability tor stat retirement benefit ‘The cost of the defined benefit plan is determined using actuarial valuation, The actuarial valuation involves making assumptions about discount rates, expected rales of return on assets, future salary increases and. monthly rates. Changes in these assumptions in future years may affect the liability /asset under these Plans in those years, Taxation In meking the estmates fr income tax currently payable by the Company, the management takes into sccount te current income axl andthe decisions of eppedate autores on certain issues the past.MASOOD TEXTILE MILLS LIMITED ii fl Useful lives, patterns of economic benef and impairments Estimates with respect to residual values and useful fives and pattern of flow of economic benefits are based on the analysis of the management of the Company. Further, the Company reviews the value of assets for possible impairment on an annual basis. Any change in the estimates in the future might affect the carrying amount of respective item of property, plant and equipment, with a corresponding effect on the depreciation charge and impairment. Inventories Net realizable value of inventories is determined with reference to currently prevaling selling prices less estimated expenditure to make sales. Provision for doubtful debts / receivables ‘The Company reviews its receivable balances against any provision required for any doubtful balances on ‘an ongoing basis. The provision is made while taking into consideration expected recoveries, If any. d) Amendments to published approved standards that are effective In current year and are relevant to the Company ‘The following amendments to published approved standards and interpretation are mandatory for the ‘Companys accounting periods beginning on or after 01 July 2014: IAS 19 (Amendments) ‘Employees Benefits’ (efective for annual periods beginning on or after 01 January 2014). This amendments applies to conttibution from employees or third parties to defined benefit plans. The objective of amendment is to simplity the accounting for contribution that are independent of the umber of the year of employees service, for example, employee contributions that are calculated acco to.a fixed percentage of salary IAS 32 (Amendments) ‘Financia Instruments: Presentation’ (effective for anaual periods beginning on or after 01 January 2014): Amendments have been made to clarify certain aspects because of diversity in ‘application of the requirements on offsetting, focused on four main areas: the meaning of ‘currently has a legally enforceable right of set-of' the application of simultaneous realzation and settlement; the offsetting of collateral amounts and the unit of account for applying the offsetting requirements. 1AS 96 (Amendments) ‘Impairment of Assets’ effective for annual periods beginning on or ater 01 January 2014). Amendments hove been made in IAS 36 to reduce the circumstances in which the recoverable ‘amount of assets or cash-generating units is required to be disclosed, clarify the disclosures required and to introduce an explicit requirement to disclose the discount rato used in determining Impairment (or reversals) where recoverable amount (based on fair value less costs of disposal) is determined using a present value technique. IFRIC 21 ‘Levies! (effective for annual periods beginning on or after 01 January 2014). The interpretation provides guidance on when to recognize a liability for a levy imposed by a government, both for levies that ‘ate accounted for in accordance with IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and those where the timing and amount of the levy is certain. The Interpretation identities the obligating event for the recognition of a labilty as the activity that triggers the payment of the levy in accordance with the relevant legislation. (On 12 December 2013, IASB issued Annual Improvements to IFRSs: 2010-2012 Cycle, incorperating ‘amendments to seven IFRSs more specifically in IFAS 8 ‘Operating Segments’ and IAS 24 ‘Related Party Disclosures’, which are considered relevant to the Company's financial statements. These amendments areMASOOD TEXTILE MILLS LIMITED fit ml a effective for annual periods beginning on or after 01 July 2014. The amendments to IFAS 8 require an entity to disclose the judgments made by the management in applying the aggregation criteria to operating segments, including-a description of the operating segments aggregated and the economic indicators assessed in deterrvining whether the operating segments have ‘similar economic characteristics’. Further, the amendment to IFRS 8 clarifies that a reconciliation ofthe total of the reportable segments’ assets to the centity’s assets should only be provided if the segment assets are regulerly provided to tho chief operating decision-maker. The amendments to IAS 24 clarify that a management entity providing key management personnel services to a reporting entity is a retated party of the reporting entity. Consequently, the reporting ‘entity must disclose as related pany transactions the amounts incurred for the Service pald or payable to the management entity for the provision of key management personnel services. However, disclosure of the ‘components of such compensation is not required. : The application of the above amendments and interpretation does not result in any impact on profit or loss, ‘other comprehensive income / (loss) and tatal comprehensive income / (oss). ‘Amendments to published standards that are effective in current year but not relevant to the Company ‘There are other amendments to published standards that are mandatory for accounting periods beginning (on or after 01 July 2014 but are considered not to be relevant or do not have any significant impact on the ‘Companys financial statements and are therefore not detailed in these financial statements, Standards and amendments to published standards that are not yet effective but relevant to the ‘Company Following standards and amendments to existing standards have been published and are mandatory for the Companys accounting periods beginning on or after 1 July 2015 or later periods IFRS 9 ‘Financial Instruments’ (effective for annual periods beginning on or after 01 January 2016). A finaized version of IFAS 9 which contains accounting requirements for financial instruments, replacing IAS 39 ‘Financial Instruments: Recognition and Measurement’. Financial assets are classified by reference to the business model within which they are held and their contractual cash flow characteristics. The 2014 version of IFRS 9 introduces a Yair value through other comprehensive income’ category for certain debt instruments, Financial fabilties are ciassiied in a similar manner to under 1AS 39, however there are ditferences in the requirements applying to the measurement of an entity's own credit risk. The 2014 version of IFRS 9 introduces an ‘expected credit loss’ model for the measurement of the impaitment of financial assets, 30 it is no longer necessary for a credit event to have occurred before 2 credit loss is, recognized. It introduces a new hedge accounting model that is designed to be more closely aligned with how entities undertake risk management activities when hedging financial and non-financial risk exposures. ‘The requirements for the derecognition of financiat assets and liabilties are cartied forward from IAS 39. ‘The management of the Company isin the process of evaluating the impacts of the aforesaid standard on the Company's tinanciat statements, IFRS 13 ‘Fair Value Measurement (effective for annual periods beginning on or after O1 January 2015). This standard aims to improve consistency and reduce complexity by providing @ precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSS. ‘The requirements, which are largely aligned between IFASs and US GAAP, do not extend the use of fair value accounting but provide guidance on tow it should be applied where its use is already required or permitted by other standards within IFRSs or US GAAP. This standaid is not expected to have a material impact on the Company's financial statements, e :MASOOD TEXTILE MILLS LIMITED fii I fl IFRS 15 ‘Revenue from Contracts with Customers’ (ottective for annual periods beginning on or alter 01 January 2017). IFRS 15 provides a single, principles based five-step model to be applied to all contracts with customers, The five steps in the model are: identity the contract with the customer; identity the petformance obiigations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contracts; and recognise revenue when (or as) the entity satisfies a performance obligation. Guidance is provided on topics such as the point in which revenue is recognised, ‘accounting for variable consideration, costs of fullling and obtaining a contract and various related matters. New disclosures about revenue aro also introduced. The management of the Company is in the process of evaluating the impacts of the aforesaid standard on the Companys financial staternents. AS 1 (Amendments) ‘Presentation of Financial Statements! (efective for annual periods beginning on or after 01 January 2016). Amendments have been made to addeess perceives impediments to preparers exercising their judgement in presenting ther financial reports by making the folowing changes: claication that information should not be obscured by agaregaling or by providing immaterial information, materiality consideration apply to the all parts of the financial statements, and even when a standard requires a specie disclosure, materiality consideration do apply; clericaion that the ist of tho line ems to be presented in these statements can be disaggregated and aggregated as relevant and additonal guidance on subtotals in these statements and clarification that an entily’s share of other comprehensive income of equity-accounted associates and joint ventures should be presented in aggregete as single ine items based on whether or not it will subsequent be reclassified to profi or loss; and actdtionat examples of possible ways of ordering the notes to clarify that understandablity and comparabiliy should be considered when otermining the order of the notes and to demonstrate thatthe notes need not be presented inthe order so far listed in AS 1, Homever, the amendments are not expected to have @ material pact on the Company's financial stetements {AS 16 (Amenaments) Property, Pant and Equipment (etfectve for annual periods beginning on or alter O1 Janvary 2016). The arnendments catty that a depreciation method that is based on revenue that Is gonerated by an activiy that inckides tho use of an asset is not appropriate for propery, plant” and equipment: and add guidance that expected future reductions in the seling price of an tem that was produced using an asset could incicate the éxpectation of technological or commercial obsolescence of the aseet, which, in turn, might reflect a reduction of the future economic benefits embodied in the asset However, the amendments ere not expected to have a material impact on the Company's financial statements, 9) Standard and amendments to published standards that are not yet effective ané not considered, relevant to the Company There are other standards and amendments to published standards that are mandatory for accounting Periods beginning on or after 01 July 2015 but are considered not to be relevant or do not have any significant impact on the Companys financial statements and are therefore not detailed in these financial statements, 2.2 Stall retirement benefit The company operates unfunded gratuity scheme for its employees. Provision is made in tne books of ‘account on the basis of actuarial computation subject to a maximum of 8.33 percent of salary of the ‘employees. Latest actuarial valuation has been made as at 30 June 2015 by the consulting actuaries using Projected Unit Credit Actuarial Cost Method. ®MASOOD TEXTILE MILLS LIMITED i rl 2.3 Foreign currency These financial statements are presented in Pak Rupees, which is the Company's functional currency. All ‘monetary assets and Fabilities denominated in foreign currencies are translated into Pak Rupees at the rates of exchange prevailing at the balance sheet date or at the contracted rates, while the transactions in foreign currency during the year are initially recorded in functional currency at the rates of exchange prevailing at the transaction date. All non monetary items are translated into Pak Rupees at exchange rates prevailing on the date of transaction or on the date when fair values are determined, The Company charges all the exchange differences to profit and loss account. 24 Taxation Current ‘The company falls in the ambit of presumptive tax regime under section 169 of the Income Tax Ordinance, £2001; Provision for income tax is made in the financial statements accordingly. However, provision for tax ‘on other income is based on taxable income at the cutrent rates after considering the rebates and tax credits available, it any, Deferred Deferred tax is accounted for using the balance sheet lability method in respect of all temporary differences arising from difference between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of the taxable profit. Deferred tax labilties are generally recognized for all taxable temporary differences and deferred tax assets to,the extent that itis Probable that taxable profits will be available against which the deductible temporary differences, unused ‘tax losses and tax credits can be utilized, Doferred tax is calculated at the rates that are expected to apply to the period when the differences reverse ‘based on tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is charged or credited in the profit and loss account, except to the extent that it relates 10 items recognized in other comprehensive income or directly in equity. In this case the tax is also recognized in other comprehensive income or directly in equity, respectively. 2.5 Property, plant, equipment and depreciation 2) Owned Property, plant and equipment are stated at cost less’ accumulated depreciation and any identitied impairment loss except freehold land which Is stated at cosVappreciated value less any identified impairment loss. Capital work-in-progress is stated at cost less any identified impairment loss. Cost of property, plant and equipment signifies historical cost, applicable exchange ditferences (upto 30 September 2004), appreciata¢ value, borrowing cost pertaining to erection / construction period as referred in Note 2.7, and directly attributable cost of bringing the assets to working condition ‘Subsoquent costs aro included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefit associated with the item will flow to the ‘Company and the cost of the item can be measured rellably. Maintenance and normal repairs are charged, to profit and loss account es and when incurred. Major renewals and improvements are capitalized. ®MASOOD TEXTILE MILLS LIMITED MT fl 'b) Leased - Finance Lease Leases where the Company has substantially all the risk and rewards of ownership are classitied as finance lease. Assets subject to finance lease are capitalized at the commencement of the lease torm at the lower of present value of minimum lease payments under the lease agreements and the fair value of the leased ‘assets, each determined at the inception of the lease. a ‘The related rental obligation net of finance cost, is included in fabilties against assets subject to finance lease. The liabilities are classified as current and long term depending upon tha timing of payments. Each lease payment is allocated between the liability and finance cost so as to achieve @ constant rate on the balance outstanding, The finance cost is charged to proft and loss account over the lease term. Gain on sale and lease back of operating fixed assots is deferred and amortized over the lease term and loss on sale and lease back of operating fixed assets is recognized in profit and lass account. Assets so acquired are depreciated over their expected useful ©) Leased ~ Operating lease Leases, where a significant portion of the risks and rewards of ownership are retained by the lessor are Classified as operating leases. Payments made under operating leases are charged to profit and loss account on a straight line basis over the lease term. 4) Depreciation Depreciation on property. plant and equipment is charged to income on reducing balance method at the fates given in Note 14.1 to write off the cost over their expected useful life. The company charges depreciation on aditions from the date when the asset is aveilable for use and on deletions up to the date when asset is derecognized. The residual values and useful ves are reviewed by the management, at each financial year end and adjusted i impact on depreciation is significant. ) De-recognition An item of property, plant and equipment is de-recognized upon disposal or when no future economic ‘benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset is included in the profit anc: toss account in the year the asset is de-recognized. 2.6 Inventories Inventories, except for stock in transit and waste stock/rags are stated at lower of cost and net realizable value. Cost is determined as follows: Stores, spare parts and foose tools Useable stores and’ spare parts are valued principally at moving average cost, wtile items considered ‘obsolete are carried at Nil value. Items in transit are valued at cost comprising invoice value plus other ‘charges paid thereon, Stock In trade Cost of raw material, work -in-process and finished goods is determined as follows: 1) For raw materials + Annual average basis. il) Forworkimprocess -_—_Average manufacturing cost including a portion ‘and tinished goods of production over neads. @27 28 210 an 242 MASOOD TEXTILE MILLS LIMITED iii ifl ‘Materials in transit are valued at cost comprising invoice value plus other charges paid thereon, waste ‘stock /rags are valued at net ealizable value. [Net realizable value signifies the estimated selling price in the ordinary course of business less costs Necessarily to be incurred in order to make a sale. Borrowing cost Interest, mark-up and other charges on long term labiliies are capitalized upto the date of commissioning of respective fixed assets acquired out of the proceeds of such long term liabites. All other interest, marke up and other charges are charged to profit and loss account. Provisions Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events and its probable that an outflow of resources embodying economic henefits will be required to settio the obigation and a reliable estimate of the obligation can be made. However, provisions are reviewed at each balance sheet date and adjusted to reflect curent best estimate. Impairment ‘The carying amounts of the Company's assets are reviewed at each balance sheet date to determine whether there is any indication of impairmert. If such indication exists, the recoverable amount of such asset is estimated. An impairment loss is rocognized wherever the caring amount ofthe asset exceeds its recoverable amount. Impainment losses are recognized in profit and loss account except for the property, plant and equipment stated under revaluation model in which case it is adjusted against the revaluation surplus. A previously recognized impairment loss is reversed only it there has been a change in the estimates used to dotermine the asset's recoverable amount since the last impairment loss was recogrized. IW that is the case, the carrying amount of the asset is increased to its recoverable amount. That inereased ‘amount cannot exceed the caring amount that would have been determined, net of depreciation, had no impairment loss been recognized forthe asset in prior years. Such reversal is recognized in proftt and loss account except for the property, plant and equipment stated under revaluation model in which case it is adjusted against the revaluation surplus. Revenue recognition Revenue trom diferent sources is recognized as under: = Revenue from sales is recognized on delivery of goods to customers. = Profit on deposits with banks is recognized on time proportion basis taking into account the ‘amounts outstanding and rates applicable thereon. ‘Share capital Ordinary and preference shares are classified as equity Financial Instruments. Financial instruments carried on the balance sheet include deposits, trade debts, loans and advances, other receivables, cash and bank balances, long-term financing, abilties against assets subject to finance lease, short-term borrowings, accrued mark-up and trade and other payables etc. Financial assets and liabilities ‘are recognized when the Company becomes a party to the contractual provisions of instrument. initia) recognition is made at fair value plus transaction costs directly attributable to acquisition, except for “financial instrument at fair value through profit or loss” which are measured intally at far value, ®MASOOD TEXTILE MILLS LIMITED iT il 213 214 215 2.16 2a7 218 219 Financial assets are derecognized when the Company loses control of the contractual rights that. comprise the financial asset, The Company loses such control i it realizes the rights to benefits specified in contract, ‘the rights expire or the Company surrenders those rights. Financial liabiities are de-tecognized when the obligation specified in the contract Is discharged, cancelled or expired. Any gain or loss on subsequent measurement and de-recognition is charged to the profit and loss account currently. The. particular measurement methods adopted are disclosed in the following individual policy statements associated with ‘each iter. Trade and other receivables. ‘Trade debts and other receivables are carried at original invoice value less an estimate made for doubtful debts based on a review of all outstanding amounts at the year end. Bad debts identified. Borrowings Borrowings are recognized initially at tair value and are subsequently stated at amortized cost. Any difference between the proceeds and the redemption value is recognized in the profit and loss account over ‘the period of the borrowings using the effective interest method, ‘Trade and other payables Liabilties for trade and other amounts payable are i transaction cost. Offsetting Financial assets and financial Vabilties are set off and the net amounts roported in the financial statements. ‘when there is a logally enforceable right to set off and the company intends either to settle on a net basis, oF 10 realize the assots and to sottle the liabilties simultaneously. ally recognized at fair value, which is normally the Cash and cash equivalents ‘Cash and cash equivalents comprise cash in hand, cash at banks on current, saving and deposit accounts and other short term highly liquid instruments that are readily convertible into known amounts of cash and Which ara subject to insignificant risk of changes in values. Dividend and transter of reserves Dividend and transfers among reserves are treated as post balance shoot non-adjusting events. Hence, do ‘not quality for provision in the financial statements in accordance with the requirements of LAS-10 ‘Events after the reporting period. These transfers ae, therefore, recorded inthe next year's financial statements, ‘Segment reporting Operating segments are reported in a manner consistent with the internal reporting structure. Management ‘monitors the operating resutts of its segments separately for the purpose of making decisions regarding resource allocation and perfomance assessment. ‘Segment results that are reported to management include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Those income, expenses, assets, lablities and other balances which can not be allocated to a particular segment on a reasonable basis are reported as ‘unallocated,MASOOD TEXTILE MILLS LIMITED st nit ‘The Company has three reportable operating seyments: i) Spinning (Producing different qualitis of yarn), {i) Knitting (Producing knitted fabric trom yam), i) Pracassing and Garments (Processing of greige fabric for production of dyed and white fabric and manufacturing of variety of garments from processed fabric). ‘Transaction among the operating segments are recorded at arm's length prices using admissible valuation methods. Inter segment sales and purchases are eliminated ffor the total. ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL, 2015 2014 2015 2016 (NUMBER OF SHARES) (RUPEES IN THOUSAND) 60000000 60000000 Ordinary shates of Fupoes 10 ‘each fully pai in cash 600,000 600,000 34633594 -95333;534 Cumulative preference shares, (non-voting) of Rupees 10 each fully paid in cash (Note 3.1.3.2) 348,549 959,998 Bresso |= 95 508.394 ERS 959,099 Movement during the year 95933304 39500000 Asat O1 uly 353,333 395,000 500000 «166668 Cumulative preference shares (monevoting) of Rupees 10 each repaid during the yoar 5,000 41,667 34959984 95,353.94 953,599 The Company issued cumulative preference shares as at 30 June 2005, whictr are listed on Lahore ‘Stock Exchange, to finance the working capital requirements and fixed capital expenditure. ‘Terms of redemption 2) Conversion option Prelerence shareholders have the option to serve a notice fo the company to convert one third of the preference shares slong with accumulated dividend into ordinary shares of the company afer the expiry of ‘out years trom the date of issuance in any conversion year at a ciscount of 15 percent to immediately preceding 33 calendar days’ average market value, Upon receiving the conversion notice, she company wil have the option to repay the preference shares along with the accumulated dividend for which conversion rotica has been issued within one month of receiving thereof or issue ordinary shares to preference shareholders. b) Call option ‘The company has the option to redeem the preference shares after four years of the Issuance in part in ‘mukipies of 10 percent upto 100 percent from the preference shareholders. The call price would be Rupees 10 por share plus the entire accumulated preference share dividend, if ary. ®MASOOD TEXTILE MILLS LIMITED fi T il 33 4a ©) Rate of dividend ‘The preference dividend is payable at the average rate of six months KIBOR plus 2 percent par annum on cumulative basis. According tothe terms of issuance, dvidend to ordinary shareholders could only be paid after the paymert of proference dividend to preference shareholders. 4) Sinking fund reserve ‘The Company has created a sinking fund reserve (capital redemption reserve fund) from the profits of the ‘Company to make payments against any call option. The Company has bull-up this sinking fund reserve to ‘ensure thal atthe end of the fourth year from the issuance date, the reserve is equal to one third of the total amount of preference shares. This reserve account will subsequently be replenished to ensure that one. third of the outstanding preference shares amount is available in the reserve account. 14 621 274 ordinary shares (2014: Nil) of the Company are held by Shanghai Challenge Textile Company Limited - associated company. 2015 2014 (RUPEES IN THOUSAND) RESERVES Composition of reserves is as follows: Capital Share premium (Note 4.1) 408,000 400,000 Capita redemption reserve fund (Note 4.2) 128,333 193,393 528,338 653,333 Revenue General 714500 714,500 Unpproprated profit 4,264,426 3.617.619 4.978926 4,382,119, 5.507.258 865.452, ‘This reserve can be utiized by the Company only for the purposes spéciied in section 83(2) of the Companies Ordinance, 1984, ‘The Company has created this reserve from its profits to make payments against any call option of preference shares. : ‘SURPLUS ON REVALUATION OF FREEHOLD LAND pening balance 606,233, 606,262 Less : Surplus realized on sale of freehold land. : 29 606,253 606,233. LONG TERM FINANCING - SECURED Long term loans (Note 6.1) 1,655,697 2,277,732 Less: Current portion shown under curcentlibiltias (Note 12) 706,254 753,814 949,443 1,523,918MASOOD TEXTILE MILLS LIMITED zg trae rare oF Sue weer a zee || renesr || MBSR | EP OF rea ‘secunrTY Pema a, Tare {44 bana Fane Lng Ter Fee rape ene Prot ees id SOD + 3M Sagat FT AQUZH16 avy Pakage on pectiasna and amet +" aus Sagara TAR Lae Gey Fic eage on econ ere i ao cm Semagaray Sgr ony cum maser * ede 2s Tk Toman gate SFI Cty Fed on pecker ede ed cr TR emylugary shuts Gat) Prtcheerapce race, ated od 2hs SOP fou Teena gary 1SDeoeweczt9 Garmty Matar on pate machen (ed Lt Sa S58 tak Tenrtar gam DOSNT Garey Mak ayeon eter tet He (oS Tommy garety OMI Que Fteon pee necey Ue Bike 11 fORR Towle garedy Siaeacet} Gay teen perma Bek Ure ts are wmpqaney a2! Gane atone on gate any re ee £85 Ala? sm Troon unt 2 Ostet Gumey oc pesca Ud ek re ou S216 Taman Satumgetay” BCS Ghat Flot n pecker (mt ‘em Rel) 2som Ste garury IOSSRMENZID. Ghote Fiche onsetenate ot en es NES Mee ea Som ny "Ora Ghat Fl cane m pre ay {ae Bk nad 2lise sz HaTK Seam gary uanny 2014 Gham Fete ongete mace ‘te kien Ts M39 R Seem gato CRAREZELEGhaaty Ptctagt on ee ey a ek i 22m 752K Toetem pany ORB) Ganty Fat cage onset ee Bentinies tam me wk Toro ry Faia 11 ay Ft aeen spend eee bios Sos SB WK Trane uray ANION Goey oto nape rey a rks esc ATM nasty Toemyan sty 2680/202 Gust tcp meney te Bakes ma S87 1050 Taw nga LUN? Caney Fat age emake ai i Bonrtee ato 18027 080K Tomy gah GAZE? Oatty argent rea) a ek te Hams AE SQ5OR_— Teoma Sigman ai2 Gaeta craps rat Ha Bekins SP 1311 Scum Twn. gay Zs? Caney Fitegecrapte ce ee Bettas aoe 8a Hams Twosyomaunaty AMARA Gute oie ens mac ‘Suction Sek Patni) «S95 TEAR QUO pt tynmySDLanar Zoi? Quay Fini apc achney ‘Sunday Bek Pi) 7300 2B TSE Lokam SRN NI2 Chatty lege pce rate) Poconartmecmetcararyte «SRE TM S1zTK Toma (52012 Data Fate engeote rary PotcarKnaninesmet CoP sk AM SOAK TEAK EMy AN ZHIO anoying ney sn2es Tiny ery GS sigtnge 20 ane Fly npc acy eam Tyerquuny 2 Sqimee a0 Onley Feet en eee Maan 250% Spwengnraty 130mm 12 Ouery Faker nape nasi, Years em, ure Cama 2012 Oauery Figen ete) 250% ahem garehy AZO Ontey cage necro mare sw guarry OHI 214 anlage ca 19M Soum.qatey 27 oyete 4 Oanty Fl hye on zeke ecb 122s Temyiry ary TN 10 Oaely Fs ao pet een 122% Theyomqntery SAEZ Otay Fi ong on peer, 550% Taryn, gutey—BaV212 Gosh Roa pM {0sr% yim grey) BeARACt2 Ouray Feces OMK Tayi gary BORON Ae Cute) Ace pene oun Seomuny HOBIE Gatnty Ftcage rapt nac Wisk Sew qaraey deus 20 Garmty Ft har tera aa Taegan CSNY 01ers. onset) Notts Sen gary OLS 23 Carey A By he any Rr redResen sassMASOOD TEXTILE MILLS LIMITED ii Tl TA 12 2015 2016 (RUPEES IN THOUSAND) LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE, Future rentals and year during which they fall due are as und. 2015 : 68,252 2016 40,627 2017 92,765 2018 20,344 2019 3714 2020 : Less: Financial charges E Present value of minimum loase rental payments Less: Current portion shown under current labilties (Note 12) ‘The value of minimum lease payments has beon discounted using implicit interest rate of 8.52% to 19.99% per annum (2014: 11.67 percent to 12.67 percent per annum). Balance rentals are payable ia ‘monthly / quarterly & semi-annual installments. In case of default in any payment, an additional charge at the rate of 0.1 percent per day shall be paid. Taxes, repairs and insurance costs are to be bored ty the Company. In case of termination of the agreement, the Company shall pay entire amount of rentals for unexpired period of lease agreement. Lease agreoment is renewable at the option of the lessor on such terms as may be agteed upon. Liabilities are secured against deposits of Rupees 16.082 milion (2014: Fupees 16.542 million) included in long term security deposits and Rupees 2.352 milion (2014: Rupees 5.862 million) included in short term deposits and prepayments. ‘Minimum lease paymonts and their present values are regrouped as under: DE 2014 Within | Morethan | Within | More than ‘one year | one year | One year | one year butteet but ese then ve than tho yor, pny 1 SRUPEES IN THOUSAND Toll of minimum lease payments 54ge4 109.816 68.252 97.450 Less: Financial charges 2963 9.067 11280 10,19 Present value of minimum lease payments Tiger —sa819 56999 97201 2015 2014 (RUPEES IN THOUSAND) DEFERRED LIABILITY FOR GRATUITY poring balance 426,009 4474 ‘Ad: Provision forthe yeas (Note 8.1) 106.655 i7i9s7 Experience adjustment recognized in other comprehensive income (19.014) (332) 39550 ae Loss: Payments made during the year THRE Tea Increase in current liabilty - net Coo] (6.732) —ti82607) 28810) a3r828 426.605 ©MASOOD TEXTILE MILLS LIMITED at as Provision for the year: Gurrent service cost Interest cost Past service cost nT Reconciliation of present value of detined benefit obligations as at 30 June is given below: Present value of defined benefit obligations as at 01 July Current service cost Interest cost Past service cost Benofits paid during the year Increase in current liability - net Experience adjustment Present value of defined bonefit obligations as at 30 June Principal actuarial assumptions: Discount fate Expected rate of increase in salary in future years Average expected remaining life ime of employees The present value of defined benefit ciigation is as folows: Present value of defined benefit obligations Experience adjustment arising on plan liabilities ‘TRADE AND OTHER PAYABLES Creditors ‘Advances from customers Accrued liabilities Income tax deducted at source Sales tax deducted at source Workers’ profit participation fund (Note 9.1) Unclaimed dividend 2015 2014 (RUPEES IN THOUSAND) 199,921 7.282 47,394 40,160 : 44515 186,655 171,957 426,889 944,074 139,321 87,282 47,334 40,180 : 44515 (158,547) (82,078) (4,060) 6.792) __ (19,014) 1992) 726,888 10.50% 18.50% er annum er annum 9.50% 12.50% per annum er annum 12years 12 years (201s [201s T2013 “zor2 [2017] {RUPEES iN THOUSAND) 431,928 $26,889 944,074 268,127 233,150 (19.014) (392) 18659 1,790,248 2015 2014 (RUPEES IN THOUSAND) 9,489,271 1,677,669 24,349 23,762 601,955 641,346 17,549 18615 14,993 13,680 54,498 61,996 9.145 8,763 2,205,160,MASOOD TEXTILE MILLS LIMITED iii I fl 2018 2018 (RUPEES IN THOUSAND) 9.1 Workers’ Profit Participation Fund Balance as at 01 July 61,996 59,619 ‘Add: Provision tor the year ( Note 27 } 54,498 61,996 Interest for the year ( Note 23 ) 318 3774 179.812 125,383, ‘Less: Payments during the year 63,387 Balance as at 30 June 61.996. 9.4.1 The Company retains workers’ profit participation fund for its business operations til the date of allocation to workers. Interest ts paid al prescribed rate under the Companies Profit (Workers' Participation) Act, 1968 on funds utilized by the Company tit the date of allocation to workers. 10. ACCRUED MARK-UP ‘Long term financing 21,276 97,144 abilities against assets subject to finance lease 1,102 75 ‘Shon terra borrowings 133,269 196,573 155.647 224,442 11 SHORT TERM BORROWINGS - SECURED ‘These represent the finances obtained from banking comparias which are secured by way of first, second {and third equitable morigage on fixed assets of the Company, 1st joint pari pasu charge over current assets of the Company, pledge and porsonal quarantee of directors. Mark-up is paid at the rate o 3.22% (er annum to 12.18% per annum (2014: 2.66% per annum to 11.34% per annum). Fhe sanctioned credit facilities are Pupees 12,675 milion (2014: Rupees 11,760 milion) 12, CURRENT PORTION OF NON-CURRENT LIABILITIES Long tenm financing (Note 6) 706,254 753,814 Liabilties against assets subject to finance lease (Note 7) 44421 56,283 750,675. B10,797 18. CONTINGENCIES AND COMMITMENTS 4) Contingencies Guarantees of Rupees 74,521 milion (2014: Rupees 68.029 milion) have been given by thé banks of the Company to Sui Northen Gas Pipelines Limited (SNGPL) against gas connections and Collector of Customs, Lahore for import licence fee. b) Commitments 1) Contracts for capital expenditure are amounting to Rupees 13,600 milion (2014: Rupees 24,608 milion) and otter than capital expenditure are Rupees 165.434 milion (2014: Rupees 244,317 milion). i) ljarah (operating ease) commitments - Company as lessee ‘The Company obtained vehicles under ijareh (operating lease) agreement, The lease terms are three 0 five years. The Company has given undertaking to purchase the leased vehicles on agreed purchase price at ‘maturity. The future aggregate minimum lease payments under jjarah (operating lease) are as follows: ‘Not later than one year 38,232 27,592 Later than one year and not later than five years 79.445 17,677, 14, PROPERTY, PLANT AND EQUIPMENT Operating fixed assets Owned (Note 14.1) 6,242,057 Leased (Note 14.1) 170,034 Capital work-in-progress (Note 14.2) 170,638 582,709MASOOD TEXTILE MILLS LIMITED NT \wsnoRT Hanae siapsy caxisomuvuseo VrMASOOD TEXTILE MILLS LIMITED “V413 Detal of operating fixed esses, exceadng the book value of Rupees 50,000 sposed of during he yer In a fotows: ‘Accumulated Sele] Mode ot Desert c% satel Particular ot. 7 = ee = "RUPEES IN THOUSAND —— Plant and machinery ‘tering macnines 3500 2489 011 8.500 Negotiation Chatenge Apparels ited ‘svocted company Vehicles Toyota Cota, FOAIC-1724 on 77 T4808 Company Pay Kiweja Metco Els {Companys employe) Honda Cue, FONOT.2219 ro 404 S718 Negotiation Menara Srwne, Mana ‘Blk Tapa Tok Singh. Toyota Corte, FoK0.2456 ws n 77 ——648—_Negoiaton MrMuharmad Ast, Sector E, : dard, ‘Sex Cuts, DAA S241 28 WS 18341 Company Polley MrShani Mussa Za {Companys employes) 10m, uS-577 6000 - 6000 6000 Sale anlease MoczanBankLimied ‘back Lane cracee, MB-O78 15200 = ¥8500 15500 Sale andiease Moezan Bank Lined vere, F8ML1276 300 19712444 Company Poly Haft Manarrad Rashi (Companys employee) Toyota Core, FDAIO-1501 95, 78 ———S18_——*1.888. Company Poy Noor Mina Mahal (Comparys enpsoyee) “Toyota Coote, FOAIONS 553 57486861. Company Polley Mr:Ztar bal Compar/s sme) Toye Conta, FOA101192 0s, 53 S828 Company Paty MeAenan hat Parace (Companys oneloyee) “Toyota Coa, DAo0.2863 ssi7 985 53111042 Nagetiton Mr jaz Ahad alam Nager, Branehagor Toyeta Coot, O-10326, es 1906731008 Nogption Me Nut Achar, Type ‘Clon Faalbad ‘Sundd Cuts,FOA TOES ws 3128454 Company Pokey Mi. Gap Guzar(Campanys —) Hone Cy, FOA10-1269, co 2 as {840 Company Posey Me Saced Hathmat ‘Companys employes) ere, FOA10-1609, 286 31285587. Company Paicy M- Han Ab Companys serene) Toyota Coa, FOATONIDE 00 103465538 Company Poicy Mr. Uszan Lat Mists (eras emeloyee). Toyota Cove, L078 269 27 198400 —Negutiten Cralenge Apri: atscnusedcorgany Toyots Comte, FSA-T6 86 20200 _Nagetiten Chalenge Aspens Lio steceted eompaay “Toyota Corte, FSE-176 370 2201450 Negstiation Chatonge Acparl unto: “eyota Corte, PS-S7B 1.388 ser ast 700 Negetaion — Cnatange Apparent steccaied company Hondelcy, FOO st 62485950 Cammpany Poly Me Wass Asta (Companys ‘mpg ‘Toyota Cota, F676 co 318 NO——_782, Company Polley Mr. Motmood A Company's ‘enploee) Sun Cuts, FOR OI624 om 47297584 Company Polley Mr musing Kran Nast (Companys onplyes) Honda Recor, WDE 2300 988432432 —_Nogtinton MM Farog Sad, Bheshy “The book vai of cher sets posed of durig the year wasess han Rupees 50,00, Pevetum, FolioMASOOD TEXTILE MILLS LIMITED 2 143 16. 15 4514 162 153 v6 ”. aA 172 m3 174 2015 2014 (RUPEES IN THOUSAND) CAPITAL WORKAN-PROGRESS. Buikinge on rho fan 12089 1466 Plant and mactinery 76.165 91427 Advances agains! purchese of and 25.608 15,698 ‘Advances agains! purchase of machinery 56.696 3579 aro" eA Borrowing cost of Rupees 0.675 million (2014 : Rupees 2.188 millon) was capitalized during the year using the capitalization rate of 8.80% por annwm (2014 : 10.90% per annum). LONG TERM ADVANCES Considered good - secured ‘Advances to employees, Executives (Note 15.1) 4078 ‘Owner employoos ‘296 ars Less : Current portion shown under current assets (Note 19) 656 3819) Reconciliation of advances 2 to executives is given below: Balance as at 01 July 4,079 9.673 ‘Add: Disbursement 240 : 3.19 a7 Less: Recovered during the year 419 5594 Balance as at 30 June 1200 4,078 ‘Maximum balance due from executives at tbe end of any month during the year was Rupees 4.770 milion (2074: Fuupeos 9.673 mion), “These Include the interest free advances fo company’s employees recoverable in equal monthly installments anc ‘secured against the gratuity payable of these employees. ‘The fair value adjustnvent in accordance with the requirements of 1AS 39 “Financial Instruments: Recognition and ‘Measurement arising in respect of advances to omnployees is not considered material and hence not recognized, STORES, SPARE PARTS AND LOOSE TOOLS ‘Soros (Note 16.1) 744737 991,596 Spare parts 264,015 204,460 ‘Loose tools 1372 984 aR a7. 030- “These include stores in transit of Rupees 61.108 milion (2014; Rupees $3,333 milion), STOCK IN TRADE Flaw materisle (Note 17.1 ) 1,849,836 41,731,300 Workcin-process ( Note 17.2 ) 1,489,086 2312,186 Finished goods ( Note 17.3) 2,136,641 3,172,477 275.565 7215.65 “These includes stock of Rupees 69.510 million (2014: Rupees 161.009 milion} sent to third parties for conversion. ‘These include stock of Rupees 46:246 milion ( 2014 : Rupees 20.675 milion) sent to third parties for processing “These Inckides siock of Rupees 9.278 milion (2014: Rupees Nil) sent ta third partes for processing. ‘Stock in tae includes stocks amounting to Rupess 118.878 milion (2014: Fupees 122.198 miion) valued at net realizable value.MASOOD TEXTILE MILLS LIMITED 16, TRADE DEBTS Considered good: Secured (agains eters of erect) Unsecured ( Note 18.1 ) ‘Considered doubtful: ‘Others - unsecured Less: Provision for doubitu debts 2015 Nati 2014 (RUPEES IN THOUSAND) 950,085 961,905, 24,992 24.532 1,591,898 3,823,710 24.892 aga 18.1. {t includes an amount of Rupees 217,919 milion (2014: Rupees Ni) due from a related party, Cnallenge Apparels United. ts related croat rick is given in Note 39, 1, LOANS AND ADVANCES Considered good Employees -Itorest ree Agains\ expenses Against salary Current portion of long term advances (Note 15) ‘Advances to suppliors 20, SHORT TERM DEPOSITS AND PREPAYMENTS: Letters of croat Propayments Margin against laters of credit / guarantees ‘Security deposits Income tax 21, OTHER RECEIVABLES Considered good: Seles tax Export rebates Omners 22, CASH AND BANK BALANCES (Cash in hand With erika = ‘On current accourts ‘Term deposit receipt ( Note 22.1 ) (On saving accounts including USS 14,781 (2014 ; USS 24,622) (Noto 22.2) 485, 752 271.953 582 19,164 4,882 15,807 515,901 97 19,14 4,882 10,713 452,906 497.202 683,868 604.672 312618 248.967 129.738 “49,220 se “e002 1848 4765 ez 26S 40,000 653,107 169.531 165,951 740,086 107.579 244,549 22.1 TWs represents Term deposit receipt hanving maturity period of ono manth and carried profit at the rate of 7.25% por annum (2014 : Ni). 22.2 Rate of profit on saving accounts ranges ftom 4.5% to 9% { 2014 : 6% to 9% ) per arcum. ®MASOOD TEXTILE MILLS LIMITED 23, SALES Local Export {Note 28.4) Waste Kaiting / dyeing income Less: Sales tax 2015 2014 {RUPEES IN THOUSAND) 3.508,656 2,200,413 22,766.437 21,691,801 394,277 488,019 377,892 407,460 27,088,174 BEAST 658, 100.275 96,565, 26,967.889) PAST I28. 23.1 Exchange gain due to currency rate fluctuation relating to export sales amounting to Rupees 265,164 milion (2014: Rupees 62769 milion) has been included in export sales. 24, COSTOF SALES ‘Raw material consumed ‘Salaries, wages and other benefits ‘Stat retroment benefits Fuel and power yes and chemicals ‘Stores and spare parts Packing materials and other chargos ‘Outside kniting, dyeing and CMT charges opair 2nd maintenance Insurance Other factory overnoads (Note 24.1 ) Depreciation - owned assots (Note 14.1.2) Depreciation - leased assets (Note 14.1.2) Work-in-process: pening stock losing stock Cost of goods manufactured Finished goods: ‘Opening stock Giosing stock 8918,140 10524,140, 3,838,220 3,160,210 159,287 145.491 1,758,502 41,502,891 1,426,016 11076,158, 426,285 541,781 2,250,893, 1,910,644 1111,.758 1,094,685 489,372 597.310 76,145 58,430 769242 687,744 395,790 387,547 9761 13,596 21,129,987 Br610.607- 2a12166 7754040 (1,489,086) 2.312.186) 823,100, (658.146) 27,952,481 SaTeAIT 2555 302 (2,136,641) (a172479| 7,035,606 (617.345) Res 35.516 24,1. This ipckides iarah (operating ease) rentals amounting to Rupeas 34.198 milion( 2014: vehicles 25, DISTRIBUTION COST Salaries and other bonetits ‘Staff retirement benofts Commission to seing agonts Insurance Traveling and conveyance Vehicles’ running Printing and stationery ‘Communication (Outward treight and distribution Depreciation - owned assets (Note 14.1.2) Depreciation - leased assets (Note 14.1.2) 52.441 6.106 699,503, 4298 35,484 5,006 1,087 15,080 619,164 580, 4208 irs pees 24.028 milion) of 88.991 6,900 594.447 3,458 24,150 5758 780 16,209 473,370 580 427 TeesMASOOD TEXTILE MILLS LIMITED 2018 zoe (RUPEES IN THOUSAND) ADMINISTRATIVE EXPENSES Salaries and other bonoits 200,649 263,770 Stat retromont benefits 21202 19,566 nt, rates and taxes (Note 25.1) 16.029 12.595 Traveling and conveyance 14.143 1.140 Entertainment 10875 378 Repair and maintenance 4,104 2200 Vehices' runing 15791 15.907 Printing and staonory enue 3.484 Commurication 17.882 13,182 Legal eid professional 1928 4940 Newspapers anc periodicals : 85 73 Eloctity and Sul gas 9,100 11.288 ‘Auditors’ romuneration (Noto 2.2) 1818 1823, Subscription and feo 5854 5.181 Advertisement B38 Insurance 6.954 Miscolanoous 1,730 Depreciation - owned assets (Note 14.1.2) 48,079 Depreciation - leased assets (Note 14.1.2) 10.725, a7 ase 26.1 This includes Yarah (operating lease) rentals amounting to Fupees 4.085 milion{ 2014: Rupees 3.219 raillon) of vehicles 2.2 Audttors' remuneration Annel aut fe 11380 Halt yearly review fo ‘325 CCorporata governance compliance review fee 50 Feeimbursablo oxpenses, 93 7318 OTHER EXPENSES. ‘Workers’ profit participation fund (Note 9.1) 28. OTHER INCOME Income trom financial assets Profit on deposits with banks 31,166 20.271 Gain on sale of investment In associate a 160 ‘w168 > 80431 income from non-financial assets ‘Sale of stores and serap ‘3264 Gain on sale of property. plant and equipment 6.632 74,096 45,327. 29, FINANCE COST Markeup on: Long tem financing ‘Short term borrowings abies against assets subject to finance lease Interest on workers’ profit participation fund (Nete 9.1) ‘Bank charges and commissionMASOOD TEXTILE MILLS LIMITED NTA 20s 2014 30. TAXATION (RUPEES IN THOUSAND) Current (Note 30.1) 277,948 235,688 Price year adjustment 96 187 278,057 2s ‘The company falls in the ambit of final tax regime under section 169 of the Income Tax Ordinance, 2001. Provision for income tax is made accordingly. However, provision for tax on other income is made at cur tax tates after considering the rebates and tak credits, if any, and accumulated tax losses. This amount includes one time super tax of Rupees 24.824 millon imposed for rehabilitation of temporarily displaced Persons under section 48 of the Income Tax ordinance, 2001 as introduced through Finance Act, 2015. No Provision for deterred taxation is required due to final tax on exports, Reconciliation of tax expense and product ‘of accounting profit multiplied by the applicable tax rate is not required in view of final tax on export. Under Section SA of the Income Tax Ordinance, 2001 , introduced through the Finance Act, 2018, the ‘Company is required to pay tax atthe rate of 10% of so much of its undistributed profits as exceed 100% of Its paid up capita unless it cistrbutes profts equal to 40% ofits after tax profits of 50% of its paid up capital, \whichaver is less, by due date for fing of income tax retum for the tax year 2015. The requisite cash dividend has been proposad by the Board of Directors. of the Company in their meeting held on 06 October, 2015 and willbe dietrbuted within the prescribed time limit: Therefore, the recognition of any income tax liability in this respect is not considered necessary. EARNINGS PER SHARE Basic earnings per share Profit after taxation (Rupees in thousand) 754.118 938,299 [Dividend on preference shares (Rupees in thousena} (41.920) 396,578 Weighted average number of ‘ordinary shares (Numbers) 60,000 000, [Eamings per share - Basic (Pupees) 14.95 Diluted earnings per share Profit after taxation (Rupees in thousand) 938,298 ‘Dividend on preference shares ‘(Rupees in thousand) (41,300) 896,979 ‘Weighted average number of shares (Numbers) 63 320.403, Earnings per share -Ditsted (Rupees) 18.47 (CASH GENERATED FROM OPERATIONS Profit betore taxation 1,092,150 1,174,144 ‘Adjustments for non-cash charges and other items: Depreciation 465,056 Provision for gratuity 171,987 Gain on sale of propery, plant and equipment (6,822) Gain on sale ol investment in associate (160) Finance cost 1,142,458 ‘Woxking capital changes (Noto 32.1) (2.348.366), Zi 601.455 @MASOOD TEXTILE MILLS LIMITED 32 33. 342 35. 201s 2014 (RUPEES IN THOUSAND) ‘Working capital changes Decrease /{increane) in eurrent ausets Stores, spare parts and loose tools 126,906 uae] ‘Stock in trade 1,940,400 (714.443) Trade come (1,486,382) (1,589,990)} Loan ang advances 288,369, 146,676 ‘Short term deposits and prepayments 3921 (18,489)] Other receivables (105,362) (129,428) 728,862 2.505.435) (Decrease) Increase in current liabilities ‘Trade and other payables 245.119) 180,069 483,738 (2.945,966) EVENTS AFTER THE REPORTING PERIOD Boars of Directors of the Company have proposed a cash dividend forthe orcinary shareholders of the Company for ‘the yeas endad 90 June 2015 amounting 'o Rupees 4.35 (2014: Rupees 1.50) per share and preference ‘dividend tor the proterence shareholders of the Company amounting %© Rupees 1.19 (2014: Rupees 1.16) Por share at their meeting held 06 October, 2015. However, these events have beer! considered as non-adjusting ‘events under IAS-10 and have rot been recognized in these financial staternents. REMUNERATION OF CHIEF EXECUTIVE OFFICER, OIRECTORS AND EXECUTIVES ‘Aggregate amount charged in the financial statements forthe year for remuneration including al benefits tothe chiet ‘executive oticer, directors and executives of the company aro as follows: DESCRIPTION 2s achat a mat TY iene | Execaves | Chet | Breciere] Erevan execute executive oer nicer _| FUPEES I FHOUSANE———— Menagral remuneration ozo am niooe oad are THAN Haine ot tao 9 aggre tag mh 28 Oar owances wo ej 005 oe 7781 3500___Sses_— HS oe aco S18 Number of persons ee oor a The chiot executive officer, some of the Directors and some of the Executives are provided trgo use of Company's ‘maintained vehicles. Mecting fee amounting to Rupees 0.115 millon (2014: Rupees 0.100 milion) has been paid to non-executive rectors. TRANSACTIONS WITH RELATED PARTIES. ‘The related panies comprise of associated company, other related parties and key management personnel, The Company ia tye normal course of business carries out transactions with various related parties. Detail of transactions with related patties, other than those which have beeh disclosed elseutere in these financial statoments, are ae follows: 205 2014 (RUPEES IN THOUSAND) ‘Associated company Purchase of goods and services 81,897 : Sale of operating fed assets 5.450 - Sale of goods and services 258,753 : Other related parties Divers pal 2,282 2663MASOOD TEXTILE MILLS LIMITED 36. NUMBER OF EMPLOYEES ‘Number of Employees as on 30 June ‘Average number of emplayees during the year 37, PLANT CAPACITY AND ACTUAL PRODUCTION ‘SPINNING Production at normal capacity converted to 20s count based on three shits per day. ‘Actual production converted fo 20s count based on thrae shifts per day, KNITTING: Production at normal capacity based on three shits por day. Actual production based on thre shits per dy, DYEING / FINISHING Production at normal capacity on reactive dysing basis at three shifts per day. Actual production converted on reactive dyeing basis at three shifts pr day. GARMENTS Production at normal capacity of rarmat / basic garments capacity bésod on single shit por day. ‘Actual production of normal / basic garments capacity basis on single shit per day, 37.1. REASONS FOR LOW PRODUCTION (Kes) (Kgs) Kgs.) (Kgs .) Kos.) (Kos) (Om) (Om) TiAl 2018 2014 (Number of Persons) 12,004 18320 16415 16950 2015 2014 (FIGURES IN THOUSAND) A762 4762 4392 4382 216 36 280 19.308 19675 Moso 34.080 19144 19128 5903 5926 4016 4009 [Under utiizetion of avaiable capacity is due to normal maintenance and gas electric supply shutdown. Kritting ‘machines are available for different types of fabric for which orders are based ont seasonal basis resuiting undor Uilization of actual knitting capacity alongwith trial run effect of additional machines installed during the year under roforence,MASOOD TEXTILE MILLS LIMITED. 38 SeGueNT MFOWATION Selelng tig ‘Toth Company zs Taw [es] me re auras eer rsusee] zo] sce] zs] acienas] cose] ‘aso me] aan bsogren rsrs0| vse] aoe | amrse| visi srastcon| posne 7 27RM —esHD ANIM souks AATaTe AGRO fasIReAy MONON OTN TET Conese 2 e209 A770 GLENN '9HOLO VOsIED 9:00 _goseRs et Prt wes sary aes) eye senses 3 ems asset Dern cont or cars] :s9399] pamriatve octses ers) esas] esee9] aera] ase) 5] wre) was22) (58m) GBI) ewes (aN Th7ze) IH Tiaras) es) lit fr tro nd laudesbe ome asdereness ORISSA aR 21820 possi 2am rakes eons end ene remem (sta 8) perce ed otennt oes) anes Tain mcan esse) Potten ma oo 44, econlieon repre een sues od alien eats [entre] Frcenog Goren [ To ay me [me | me | ae | ms [mu | ms [me —raress nous} Segment Aas soregor _{000sTT 3934350 _imome _sasean teat seemed IMR aac ss gees rats aoe _eis Segre ube iss eM Alyn eon zztee team aT sono eat Latin sayigaos_teoseazo 19036418518 342. Geog iteration 2421 Te canpar/s mee ton tora cater yop can Sed oe ‘ i am (RUPEES THOUSAND) esac Caace wise 2sias4 za a8 sea, se ous ze a eater ima 608 Pray 3022 Neoncare sed Canpry es op tt wn ew eprteg Pi 303, evnea tom mae cutee avons tun nr casa Corey's Gores SME APRS ges 1481 min (204 ‘at eae yma ere 180 ir. mor gna Canary otMASOOD TEXTILE MILLS LIMITED Ki til 39, 394 ° FINANCIAL RISK MANAGEMENT Financial risk factors, ‘The Companys activities expose it to a variety of financial risks: market risk (including currency risk and interest sate risk), credit risk and liquidity tisk. The Company's overall risk management programme focuses on the unpredictability of financial markets and socks to minimize potential adverse effects on the Company's financial performance. Fisk, management is carried out by the Company's finance department under pobcies approved by the Board of Directors. Tae Boar provides principles for overall isk management, as wel as polities covering specific areas ‘Ch as currency risk, cher price risk, intrest rate risk, erect rik, bauity rk, investment of excess lquity and se of nondetvative inncia instruments, Markt risk () Currency risk Currency risk i the risk thatthe fir value of future cash flows of a financial instrument wil Rucivate because of changes in forsign exchange rates. Curency risk arises mainly fom futute commercial transactions or receivables and payables tht exist due fo transactions in foreign currencies. “The Gompany fs exposed to currency risk arising rom various curency exposures, pimariy with respect to the United States Dotlar (USO), Curent, the Company foreign exchange rsk exposure is resticted to bark balances, and the amounts receivable / payable from / to the foreign entities. The Company's ‘exposure to curency isk was as follows: 2015 zo Cast at barks - USD 14,781 26,622 ‘Trade debts - USD 59,397,008 44,607,297 Trade and other payable - USO (1,181,798) (62,022) Net exposure - USD 58,220,901 44,549,697 Following exchange rates were applied during the year: Rupees per Us Dollar ‘Average rate 101.00 102.56 Reporting date rate 101.50 9858 Sensitivity analysis {ttre functional curtency, at reporting date, had weakened / sveangthened by 5% against the USD wih at! ‘other variables held constant, the impact on profit after taxation for the year weit ave been Rupees 280.741 milion (2014: Rupees 208.544 mon ) higher / dower, mainly as a result of exchange gains / losses on translation of foreign exchange denominated fancial instruments. Curency risk senstvty 10 foreign exchange movements has been calculated on a symmetric basis. In management’ opinion, the sensitvty analysis is unrepresentatve of iterent currency isk as the year end exposure does not reflect the exposure during the year. (Other price risk. ‘Othor price risk represents the risk thatthe far value or future cash flows of a financial instrument wil ‘tuctuate because of changes in market prices (other than those arising from intetest rate isk or currency ik), whether those changes are caused by factors spectic 10 the individual financial insbument or its ‘issuer, or factors atectng al sila financial instrument traded in the market. The Company is not exposed to commodity pice risk.MASOOD TEXTILE MILLS LIMITED (li) Interest rate risk This represents the risk that the fair value or future cash flows of a financial instrument wil actuate because of changes in market intrest rates. “Tho Company's interest rate risk arises from long term financing, labios against assets subject to finance lease, short term borrowings, term deposit receipt and bank balances in saving accounts, Financial instruments at variable rates expose the Company to cash flow intrest rate risk. Financial instruments fixed rate expose the Company to fair value interest rate risk. At the balance sheet date the intorest rata profie of the Company/s interest bearing financial instruments was: 2015 2014 (RUPEES IN THOUSAND) Fixed rate instruments Financial liabilities ‘Long term financing 597,030 876.487 Floating rate Instruments Financial assets ‘Term depost receipt 40,000 : Bark balances - saving accounts 663,107 163,531 Financial titties Long term financing 1,058,667 1,401,288 Labiitios against assets subject to finance tease 198,270 144,914 Short term borrowings 11,044,490 9,993,466 Fair value sensitivity analysis for fixed rate instruments “The Company does not account for any fixed rate financial assets and labities at fair value through profit (Floss. Therefore, a change in interest rate at the balance shoot date would not affect profit or loss of the Company. CCash flow sensitivity analysis for variable rate instruments ftinterest rates, at the yoar end date, fluctuates by 1% highor lowor wih al other variables held constant, prof iter taxation for the year would have been Rupees 109.613 milion (2014: Rupees 107.497 million) lower / higher, mainly a5 a result of higher / lower interest expense on floating rate borrowings. This analysis is prepared assuming that emounts of lablites autstanding at balance sheet dates were ‘oustanding forthe whole year. (b) Credit risk Credit risk represents the risk that one patty toa financial instrument will cause a financial foss for the othor party by {ailing to discharge an obligation. The carrying amount of financial assets represents the maximum credit exposure, “The maximum exposure to credit risk atthe reporting date was as folows: Trade debts 6,911,980 5,415,608 Loans and edvances 31,507 37,528 Deposits 41,749 43,848 Other receivables 129,798 149,203 ‘Bank balances 440,084 6,086,209 The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to ‘extarnal credit ratings (it available) or to historical information about counterparty default rate, The extemal credit rating of Company's bankers ven below. NTAMASOOD TEXTILE MILLS LIMITED fi I nl Rating 2015 2016] short Term]|tong term]] Agency || (Rupees in thousand) | Banks National Bank of Pakistan At AAA JCRVIS 15,939 4,965 Allied Bank Limited at Ake PACRA 2.614 15,943 ‘Askari Bank Limited Aas AA JORIS 10,295 4,000 Bank Alfalah Limited Ae AA PACRA 20,913 2,049 First Women Bank Limited? a2 Be: = PACRA 122 17 Habib Bank Limited Att AAA JCRAVIS 61,442 43,088 ‘Habib Metropolitan Bank Limited At AAS PACRA 926,992 147,256 Bank Al-Habib Limited Ate Aas PACRA 2,492 2,051 MCB Bank Limited Ate AAA PACRA 35,507 24,561 NIB Bank Limited Att rv PACRA 22,136 26,328 The Bank of Punjab Att AA PACRA 108,604 20,869 Dubai Islamic Bank (Pakistan) Limited At Ae JCRVIS 10,144 1,464 Standard Chartered Bank (Pakistan) Limited t+ AAA PACRA 42858 6.649, United Bank Limited Ate AA JORIS 78,199 38,529 Burj Bank Limited Ae au JORIS 40,010 22 ‘Summit Bank Limited At A JCRVIS 273.551 95,348 ‘Soneri Bank Limited Ate AA PACRA 15,504 a ‘Samba Bank Limited a A JORIS 25,233 : Industrialand Commercial BankofChinaLtd, P-1 ry) Moody's 96 5 ‘Meezan Bank Limited Att aN JORMIS 73,380 204 1,165,931 440,084, ‘As at 30 June 2015, trade debts of Rupeas 987.520 milion ( 2014 : Rupees §38.479 milion ) were past due but not Impaired. These relate to a number of independent customers from wtiom there is no recent history of default. The ageing analysis of these trade debts Is as follows: 2015 2014 (RUPEES IN THOUSAND) Dus from related party Upto 1 month 114,803 ~ 1 to 6 months 539 122,042 : Others. Upto 4 month 234,105 399,727 1 t06 months 563,657 136,327 More than 6 months. S7.At6 47,425 885,178 583,479 987,520 583,479 Due to the Company's fong standing business relatonships with these counterparties and efter giving due ‘consideration to thelr strong financial standing, managoment does not sxpect non-pettormance by these counter partes on their obligations tothe Company. Accordingly the credit risk is minimal ®MASOOD TEXTILE MILLS LIMITED Nite (0). Liquidity risk Liquidity risk Is the risk that an entity will encounter ditfcully in meeting obligations associated with financi Fabitties, The Company manages liquidty risk by maintaining sufficient cash and the availabilty of funding through an adequate amount of committed credi facies. At 30 June 205, the Company had Rupees 1.630.570 millon (2014: Rupees 1,827 milion) available borrowing limits from financial institutions and Rupees 1,167.579 milion (2014: Rupees 444.849 milion) cash and bank balances. Management believes the liquidity risk to be low. Following are the contractual maturities of financial iabilties, imcluding interest payments. The amount disclosed in the table are Undiscounted cash flows. ‘The following are the contractual matures of financial labiftes as at 30 June 2015: Non-derivative financial liabilies: Long term financing Liabilties against assets subject to finance lease Short term borrowings Trade and other payables Accrued mark-up Following are the contractual matures of financial abilities as at 30 June 2014: Non-derivative financial liablities Long term financing Liabilities against assets subject to finance lease ‘Short term borrowings Trade and other payables Accrued mark-up Carying |] Contractual |[6 months or Wore than2 ‘amourt || casnatons |] tess |] S12monhs |] 2¥ews ff vaaey (RUPEES IM THOUSAND 11055007 1679.153 440,557 205,149 (758,905 (284,682 198270 188200 29,687 24607 46.909 $6,807 11/044,490 11,177,700 6,468,999 4708701 : : 209371 2,098.77 1,997,120 56551 : : 185,007 15087845 Ccarying || Contractual || 6 months o| oe Wore than 2 fees | Caan tone || eee || St2montns |) 12 Yeas (RUPEES IN THOUSAND ). 2277792 2791007 512.465 472,570 849.957 886.614 144314 165,702 57,760 3o4s2 40,627 £6,823 9,933,466 10,120,099 4,843,379 5,276,660, : : 2907,778 2807.77 2115842 11,836, : - 2o4as2 204,440 224,442 : : : 14,907,732 15,568,968 —7,799869 5,901,658 609,084 969,497 ‘Shor term borrowing and trade and other payables are financial labilties of revolving nature which will get renewed 4s part of working capital management. ®MASOOD TEXTILE MILLS LIMITED. fi fl (@) Capital risk management ‘The objective of the company when managing capital isto safeguard its ability to continue as 2 going concem so that it can continue to provide rotums for shareholders and benefits fr other stakefeléers; and to maintain a strong capital base to support the sustained development ot its business, ‘Tho company manages is capita! structure by moritacing retuin on nel assets and makes adjustments to it in the light of changes in aconomic conditions. n order to maintain or adjust the capital structure, he company may adust {the emount of dvidond paid to the sharonolders or issue new shares. 99.2 Fair values of financial assets and libilitles ‘Tho carrying values of all financial assots and liabiities reflected in these financia! statements approximate their far ‘values. Fai Value is doterminod on the basis of objective evidence at each reporting date, 39.3 Financial Instruments by categories : Loans and receivables 2015 2018 (RUPEES IN THOUSAND) ‘As at 30 June, ‘Assets as per balance sheet Trade debts 691,990 5,415,608 Loans and advances 31.507 37,528 Deposits 41,749 43,848 Other receivables 128,798 149203 Cash and bank balances 444,849 6,097,056 Financial Wabiliies at amortized cost 2015 2014 (RUPEES IN THOUSAND) Liabilities as per balance sheet Long term financing 1,855,697 2277732 Liabilities against assots subject to finance lease 138,270 144316 Short term borrowings 11,004,430 9,933,486 ‘Trade and other payables 2,098,771 Accrued mark-up 155,647 15,007,815 39.4 Offsetting financial assets and financial liabilities ‘As on balance sheet date, recognized financial instruments are not subject to offsetting as thore are no tentorecoable mastor netting arangements and similar agreements. 40, DATE OF AUTHORIZATION ‘These financial statements have been approved and authorized for Issue by the Board of Direciors of the company ‘on 06 October , 2015. 41, CORRESPONDING FIGURES Corresponding figures have been re-arranged, wherever necessary for the purpose of comparison. However, no significant re-arrangements have been made. 42, GENERAL Figures have been rounded off to the nearest thousand of Flupees unless otherwise stated. CHIEF EXECUTIVE OFFICER DIRECTOR oMASOOD TEXTILE MILLS LIMITED i FORM 34 PATTERN OF SHAREHOLDING AS ON 30 JUNE, 2015 1. Incorporation Number 0012223 2, Same ofthe Company MASOOD TEXTILE MILLS LIMITED 8, Pattom of hoking of the shares held by the shareholders as st 30.06.2015 OBDINARY SHARES: ‘Shareholaing rom 100 Shores ‘WTAS7] ‘Sharoholang ror Tor © 600 Shares 12.264 ‘Shareholding ror ‘5O1_to 1000 Shares 62,736) ‘Shareholding tom 70011 5000. Shares 250,513) Shareheling tom ‘500% te 10000" Shares 93,704) Shareholding trom 10001 _t@ 16000. Shares 54,000] ‘Sharenekdng'rom —_15001_to 20000 Shares 37,060) Shareheksng rom _2U0Gt_to 25000 Shares 42,100) ‘Shareholding rom 25001 30000, Stare 117,000] ‘Shereholdingtrom S000 1 95000. Shares 35,000; ‘Shareholding Wom 85001 10 40000. Shares 7,500) ‘Shareholding rom 40001 _t 45000. Shares 44,000 ‘Shareholding tom 45001 _t 50000. Shares 49,202, ‘Shareholding tom 85007 to 60000. Shares 38,500) Shareholding tom 65001_to 70000 Shares 132,300, Sharenol@ng rom _76001_te 80000 Shares 77,000, ‘Shareholding fem 80001 10 95000 Shares "92,605 ‘Shareholsing rom 168001 to 170000. Shares) 167,000 ‘Shareholding trom 270001 _t0 215000 Shares: 211,000) ‘Shareholding from 370001 to_$75000 Shares: ‘373,000 ‘Shareholding rom 886001 10 390000 Shares '369,000' ‘Shareholiing om 890007_to 395000 Shares 392,750) ‘Shareholding trom 540001 to _$45000 Shares 541,000, Sharenoidng from 670001 to $7500 Shares 571,700) ‘Srarehokdng rom 590001 to 695000 Shares 590,100) ‘Sherehokiing from 640001 10 646000 Shaves 641,500) ‘Shareholding rom 765001 to 770000 Shares 766,000 ‘Shareholsing trom 915001 te 920000 Shares 916,050] ‘Shereholang tom 1980001 te 1385000 Shares 1,383,750) ‘Sharehoxang tom 1970001 10 1915000 Shares 1,312,400) ‘Shareholding rom 2625001 wo 2030000 Shares 2,025,626) ‘Shareholding from 2455001 to 2460000 Shaves 2,457,078 ‘Shareholding rem 8895001 to 3900000 Shares 3,900,000) ‘Sharoholding rom 4170001 to 4115000 Shares 4,114,000) ‘Shareholding tom 454000116 4545000 Shares 4,543,682 ‘Shareholding tram 14620001 16 14626000 Shares 14,621,274 ‘Shareholding rom 16096001 10 76100000 Shares 18,100,000] Tota '60,000,000]MASOOD TEXTILE MILLS LIMITED NT PRERERENCE SHARES: 1 [ Sreroroking vom 2495001 to 2500000 Shares 2,500,000) 3 ‘Sharehokdngtem 4995001 to $000000 Shares 16,000,000 1 Sharehokingitem 7300001 to 7535000 Shares 7,899,334 1 Shareholding fom 8995001 te 14900000 Shares "10,000,000 6 Total 34,893,394) ORDINARY SHARES: 15.1 Directors, Chil Executive Oficer, et. 7,497,500 249 52 Associated Companies, undertakings and rated aia ae ae 621, ; $23 NIT and ICP 2,026 678 | 3.38 ‘54 Barks, Development Financial Insttusons, Non Barking Financia Insuions, 519,181 853 155 Insurance Companies "400,444 087 536 Modarabes and Mutual Funds iz 5,100 a7 5.7 Share holders holaing 10% 718,100,000 30.17 58 General Public & Local 4514178 752 hh Fevign : : 5.9 Omers - Joint Stock CompanieyCo-peratve Sei 19,721,648 Total Orcinary Shares ‘60,000,000, PREFERENCE SHARES: 53 Barks, Development Fiencial Instiutons, Non r Banking Financia inttutons. 94,833,334 bested 6. Signature of Crist Executve/ Secetary 7. Name of Signatory MIAN ABDUL BARI 8. Designation ‘CONPANY SECRETARY 8. CNC Number EEOC RPrEnEr) Day Month Year 10. Date Le] 118] 2Toltis @MASOOD TEXTILE MILLS LIMITED fii T fl NAMEWISE CATEGORIES OF SHAREHOLDERS AS ON 30-06-2015 [Name Share Held | Total Shares | Percentage] ‘ORDIN, Directors: MA. SHAHID NAZIR AHMAD Chit Executive Ottcer [1,883,760 MR.NASEER AHMAD SHAH Chairman 37500 MR. MUAMMAD ARSHAD Dicector 18,750 MR, FAZAL AHMAD Director 30,000 MR. MATLOOB HUSSAIN Director 21,500 MR, SHOAIB AHMAD KHAN, Director 4 (NIT Nominee) MISS CHEN YAN Director : (Shanghai Chatlenge- Nominee) 1,491,500 2.49 ‘Sharahalders Holding 10% or More: MRS. NAZIA NAZIR 18,100,000] 18,100,000 30.17 ings: ‘SHANGHAI CHALLENGE TEXTILE CO.,LTD, w4eri274) 14p2iz74 = 24.36 tn es: INVESTMENT CORPORATION OF PAKISTAN 50 eso 0.00 A Institutions: Banks: HABIB METROPOLITAN BANK LIMITED 871,700 IpaP (\OP UNIT) 3,250 NATIONAL BANK OF PAKISTAN 4544231 | 5,119,181 ess ‘ Insurance Companies ‘AGRO GENERAL INSURANCE COMPANY LIMITED 7,594 DELTA INSURANCE COMPANY LIMITED 100 STATE LIFE INSURANCE CORPORATION OF PAKISTAN 30,750 | 400,444 087 Modarabes THIRD PRUDENTIAL MODARABA 2,900 UNICAP MODARABA 200 5,100 0.01 Mutua! Fund (CDG - TRUSTEE NATIONAL INVESTMENT (UNIT) TRUST 2,025,828] 2,025,828 3.38MASOOD TEXTILE MILLS LIMITED iT [Name Shares Held | Total Shares | Percentage] Joint Stock Companies And OU BEACON IMPEX (PVT) LIMITED 2,301,400 FORTRESS TEXTILE (PVT) LIMITED 3,223,078 HM INVESTMENTS (PVT) LIMITED 4,900 ISMAIL ABDUL SHAKOOR SECURITIES (PVT) LIMITED 50 KOHISTAN CORPORATION (PVT) LIMITED 3,900,000 MAPLE LEAF CAPITAL LIMITED 1 NH SECURITIES (PVT) LIMITED 5 PASHA SECURITIES (PVT) LIMITED 100 PRUDENTIAL CAPITAL MANAGEMENT LIMITED 1,600 PAKISTAN KUWAIT INVESTMENT (PVT) LIMITED 2,600 SSAVAR! (PVT) LIMITED 900 ‘SOFTWARE CREATIONS (PVT) LIMITED 4,194,000 ‘TRUSTEE NBP EMP BENEVOLENT FUND TRUST 3,249 ‘TRUSTEE NBP EMPLOYEES PENSION FUND 92,605 Y.8. SECURITIES & SERVICES (PVT) LIMITED 160 ‘ZAFAR SECURITIES (PVT) LIMITED 77,900| 13,724,648 = (22.87 General Public: 4,514,175 7.82 ‘TOTAL ORIDINANRY SHARES 60,000,000 _100.00 PREFERENCE SHARES: Banks: [ASKARI BANK LIMITED 2,500,000 HABIB BANK LIMITED. 10,000,000 MCB BANK LIMITED 5,000,000 NATIONAL BANK OF PAKISTAN : 5,000,000 UNITED BANK LIMITED - 7,333,334 29,833,334 85.65 Invest PAKISTAN KUWAIT INVESTMENT COMPANY (PVT) LIMITED : 5,000,000 14.35 TOTAL PREFERENCE SHARES 34,833,334___100.00 QeMASOOD TEXTILE MILLS LIMITED mi I mn FORM OF PROXY No. of Ordinary Shares Held. Folio No. CDC Alc No.. We, of being a member of MASOOD TEXTILE MILLS LIMITED hereby appoint (NAME) of (being a member of the Company) as my/our proxy to vote for me/us and on my/our behalf at the 31" Annual General Meeting of the Company to be held at its Registered Office at Universal House, 17/1, New Civil Lines, Bilal Road, Faisalabad on Saturday, the 31" day of October, 2015, at 11,00 AM. or any adjournment thereof. ‘As witnessed my hands this, day of 2015 Signed by me in the presence of witness: ® (Signature of witness) (Member's Signature)® Chee cNIc.. Note: Proxies, in order to be effective, must be received at the Company's Registered Office not later than forty-eight hours before the time for holding the meeting and must be duly stamped, signed and witnessed.