48th ANNUAL REPORT 2017 QUETTA QUETTA TEXTILE MILLS LIMITED& aqverta textive mitts uted Annual Report 2017 For The Year Emded June 2017 CONTENTS [Company Information 2 Vision & Mission Statements 3 INotice of Annual General Meeting 4 IDirector’s Report to the Members (English/Urdu) 5 key Operating & Financial Data 15 Pattern of Shareholding 16 [Statement of Compliance with the Code of Corporate Governance 18 [Review Report to the Members on Statement of Compliance with the Code of Corporate Gover- 24 jnance ~ [Auditor’s Report to the Members 22 Balance Sheet 24 Profit and Loss Accounts 56 [Statement of Comprehensive Income 26 [Cash Flow Statement 27 [statement of Changes in Equity 28 INotes to the Financial Statements 31 [Form of Proxy 61 [Form of Proxy (Urdu) 62& avert rextite mitts uMiTED COMPANY INFORMATION BOARD OF DIRECTORS Mr. Taugir Tariq Mr. Tariq tabal Mr, Asim Khalid Mr. Omer Kralid Mrs, Saima Asim Mrs. Tabbasum Tari Mrs. Sadaf Khalid Mr. Major Rtd. Muhammad Saeed AUDIT COMMITTEE Chairman Member Member HUMAN RESOURCE & REMUNERATION ‘COMMITTEE Chairman Member Member (CHIEF FINANCIAL OFFICER ‘COMPANY SECRETARY AUDITORS BANKERS, REGISTERED OFFICE mus, WEB SITE ADDRESS, Chairman Chief Executive Director Director Director Director Director Independent Director Mr. Major Rtd. Muhammad Saeed Mrs, Tabbasum Tariq ‘Mes. Sadat Khalid Mrs, Tabbasum Tariq Mrs, Saima Asim Mrs. Sadaf Khalid Mr. Omer Khalid ‘Mr. Muhammad Sohrab Ghani Mushtag and Company Chartered Accountants Allied Bank Limited Al-Baraka Bank (Pakistan) Limited Bank Alfalah Limited ‘Bank Islami (Pakistan) Limited Dubai islamic Bank (Pakistan) Limited Faysal Bank Limited HBL Bank Limited Habib Metro Bank Limited ‘Meezan Bank Limited National Bank of Pakistan Soneri Bank Limited Silk Bank Limited Standard Chartered Bank (Pakistan) Limited Summit Bank Limited United Bank Limited Nadir House (Ground Floor) ILA. Chundrigar Road, Karachi P/3 8.8/4, STE, Kotr. 49 KM, Lahore, Multan Road, Bhai Pheru wurw.quettagroup com 2)& cuersa textive mits umiteo CORPORATE VISION & MISSION STATEMENTS VISION Quetta Textile Mills Limited is one of the leading manufactures & exporters of yarns & fabrics in Pakistan. The Company aims to become a market leader by producing high quality products with the help of latest technologies. The Company strives to explore new markets worldwide and at the same time tries to integrate its supply chain and diversify its customers portfolio. The Compa- ny aims to be fittest in a changing market scenario through effective balancing, Modernization & Replacement of existing machinery. MISSION Our aim is to make Quetta Textile Mills Limited a secure & rewarding investment for its sharehold- ers & investors, a reliable source of high quality yarns & fabrics at affordable prices to its custom- ers all over the world, a secure place of work to its employees & an ethical partner to its business association, @)& Quetta TEXTILE MILLS LIMITED NOTICE OF MEETING Notice is hereby given that the SSth Annual General Meeting of the Shareholders of Quetta Textile Mills Limited will be held on Tuesday, October 31, 2017 at 09.00 A.M. at the registered office of the Company at Nadir House (Ground Floor), 11. Chundrigar Road, Karachi to transact the following business: Ordinary Business: 1. To confirm the minutes of the S4th General Meeting held on January 27, 2017. 2. To receive, consider and approve the report of the Directors, Auditors and Audited Accounts of the Company for the year ended June 30, 2017 3. To appoint Auditors for the year 2017-2018 and fix their remuneration. The Board has recommended, as suggested by Audit committee, the appointment of M/s Mushtaq & Co, Chartered Accountant, the retiring auditors and being eligible to offer themselves for re-appointment. 4. Totransact any other ordinary business or business with the permission of the Chairman. By order of the Board of Directors MUHAMMAD SOHRAB GHANI Karachi: Company Secretary Dated: October 09, 2017 Notes: 1. Amember entitled to attend the Annual General Meeting is entitled to appoint a proxy to attend and vote instead of him/her. Proxies in order to be valid must be received at the registered office of the Company 48 Hours before meeting commences For the purpose of entitlement of dividend, the Register of the members of the Company will remain closed at registered office from October 25,2017 to October 31,2017 (both days inclusive) and if dividend approved will be paid to such members whose name appear in the Company’ register of member at the close of business on October 24, 2017, 3. Guidelines for CDC Account Holders for personal attendance: i) Incase of individuals, the account holders or sub-account holders and / or the person whose securities are in group account and their registration details are uploaded as per Regulations, shall authenticate his, //ner identity by showing his/her original CNIC at the time of attending the meeting, it In case of corporate entity, the Board of Directors’ resolution / power of attorney with specimen signature of the nominee shall be produced (unless it has been provided earlier) at the time of meeting. 4, Shareholders are required to promptly notify at registered office of the Company of any change in their address, . 5. According to SECP letter # SMD/CIW/Misc/14/2009 dated October 11, 2011, All shareholders are requested to please contact / coordinate with Company's Share Registrar for collection of unclaimed Dividend 6 According Section 242 of Company Act 2017 and SECP’s circular no 18 dated August 1, 2017. All shareholders are requested to provide IBAN, Bank name and Branch name with address to Shares Registrar, CDC and sub account holder update with their brokers. 4)& cuerta textite mitis umiteo QUETTA TEXTILE MILLS LIMITED Nadie House, chundrgat Rox Karachi~ 74000 Patston Tel92 (21) 324143306 Fax 992 (21) 324.9593, Mal: sales@QuenaGroupcom Web: wow, QuettaGroup som DIRECTORS’ REPORT TO THE MEMBERS ear Shareholders, ‘The Directors of Quetta Teatile Mills Limited feel pleasure in presenting audited accounts and annual report ‘of the Company for the year ended June 30, 2017 along with Auditor's Report thereon | 2017 2016 {Rupees in 000) Pretax (oss) for the year THA35350) ass Taxation 3.200 9.380 (Loss) after taxation (1,430,150) (2.715.435) (Other Comprehensive Loss (4.043) (27.278) ‘Accumulated Prof Brought Forward (875.203) 1,285,250, Tess: Dividend Paid Nil Ni TBO SST ESTAR Taster HORT SUT Ga REvaIUaTION GF POPE PrantE Equipment OF CCOTMUTRT ES TOSS BONE CHPTET FOTW LTSEESTT 0, ‘The above results of the company for the year ended June 30, 2017. Turnover forthe years the same as last Year at Rs. §,280.635 million. On a turnover of Rs. §,280.635 million, your company made a loss before :3¢ of Rs, 1,433.350 milion as compared to Rs. 1,724.815 milion last year, Pre-tax loss has rather reduced by Re, 281.465 million, a reduction of 16.90%. ‘we draw attention to note 2.4 in the financial statements which indicates that the company incucre a net loss of Rupees 1,430.150 million during the year ended June 30, 2017 and, as of that date, the comeany’s current lablities exceeds its current assets by Rupees 2,666.177 million, These conditions, along with ather matters a8 explained in note 2.4.1 to 2.4.4 indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern. These financia. statements, however, have been prepared on the going concern basis on the assumptions as detailed in aforesaid note Textile Outlook: Pakistan’ textile industry is stl going through one of the toughest periods: External Threats: Slowdown in demand for cotton yarns and fabrics in the iiternational markets, patitulaly China; Sales of fabrics have been high value articles for Europe. Oue to low demands fram Europe, QTMIL fabric export sales have been very slow. This has also hampered the inflows in weaving: + There isan influx of foreign textile goods being imported and sold in the domestic market. India has emerged as a major player inthe textile sector. There is availabilty of cheap yarns from India, Indian yarns are around 10%-12% cheaper to import in Pakistan from India. I will nt be place to ‘mention that Indian yarns are being ‘dumped! in Pakistan, Rival countries are supporting their textile industry with subsidies and incentives. This has rendered the Pakistani textile industry as Ln-competitive in the international market; + Ourneighboring countries have devalued their currencies between 39-10%, thereby making it dificult for Pakistan textile industry to compete with them, @)& querta textite MILs LIMITED QUETTA TEXTILE MILLS LIMITED Nadir House, ||. Chundriga Road, Karachi~ 74000, Pakistan Tel +92 (21) 3241-43546. Fax: 492 (21) 3241-9593 Mail: sales@auetaGroup.com Web: ww. GusttaGroun com DIRECTORS’ REPORT TO THE MEMBERS Local Threats: Imposition of GIDC by the federal government; Increase in minimum wages/salaries of labour. Increase in cost of doing business; No export incentives to dawn-stream industry (spinning & weaving), as compared to incentives given to the Indian and Vietnam textile industry; ‘© Increase in energy costs due to increase in gas/electrc tariff rates. Electricity tarifis the highest in Pakistan as compared to India, Bangladesh, China and Vietnam; # Higher cotton prices vis-a-vis yarn prices; More than 25% Working Capital has been stuck-up in the refund regime creating severe cash flow: crunch; © Closure of valued-added chain; Cost of doing business is amplifying; ‘© Pakistan's general political instability & dispute causing economic isolation and worsening law & order situation, Way Forward: The textile industry is the backbone of the country providing valuable foreign exchange and employment ‘opportunities. It is the largest manufacturing sector which contributes 60% on foreign exchange earnings. ‘The severe conditions in Pakistan’s spinning and weaving sectors are expected to contr'iue well Into the next financial year, unless the government steps forward with corrective measures with regards to its policies for the industry. The government must realize the situation and provide relief through “educed power tariff, export refinance on yarns and fabrics, removal of GIDC and timely Income Tax/Sales Tae refunds. The bail-out package has not benefitted the textile industry which was supposed to jump-start’ this industry. Old refunds have been rolled-back which are aggravating the situation even further. Financial Management Cash flow Management The Company has an effective Cash Flow Management system in Place whereby cash inflaws and out flows is, projected on regular basis. Working Capital requirements are planned to be financed tt rough internal cash eneration and short term borrowings from external resources where necessary. Risk Mitigation The Inherent risks and uncertainties in running a business directly affect the success of business. The ‘management of Quetta Textile Mills Limited has identified its exposure to the potential risks. As a part of our policy to produced forward looking statement we are outlining the risks which may effect our business. This ‘exercise also helps the management focus on a strategy to mitigate risk factors. Credit Risk Al financial assets of the company except cash in hand are subject to credit risk, The company believes that it is not expased to major cancentration of credit risk. Exposure is managed through application of credit, limits to its customers secured by and on the base of past experience, sales volume, consideration of financial position, past track records and recoveries, economic conditions of particularly the textile sector and generally the industry. The company believes that itis prudent to provide Provision of doubt full debts. ©)& querta textite mits umiteo QUETTA TEXTILE MILLS LIMITED Ndi House, 1 Chundige Road Karachi ~ 78000, Paistan Teh 99220) 3281-4338~5 Fox #92 21)3241.9593, Mal: sales@QuetsGroupcom Web: www GuetaGioup.com DIRECTORS’ REPORT TO THE MEMBERS Liquidity Risk Prudent liquidity risk management ensures availabilty of the sufficient funds for meeting contractual Commitments, The Company's fund management strategy aims at managing ligucty tsk through internal cash generation and committed eredit lines with financial institutions. Interest Rate Risk Majority of the interest rate exposure arises from short and long term borrowing from banks. Therefore, 3 change in interest rates at the reporting date would not effect the profit and loss accounts Foreign Exchange Risk Foreign currency risk arises mainly where receivables and payables exist due to transaction in foreign currencies. The company is mainly exposed to short term USD/ PKR parity onits imports of raw material and Plant and Machinery. Performance of our production facilities was excellent with unprecedented levels of output. Our team Continued to improve efficiencies through harmonized efforts, eliminating wastage and avoidance of shutdowns on numerous occasions. The Company is determined ta continue its focus on maximum capacity utlization for sustained profitability and to maintain its position as the leading Textile Manufacturer of the Country, Dividend ‘The Board of Directors have recommended Nil Dividend for year ended June 30, 2017, due to losses Auditors The Present Auditors M/s. Mushtaq and Company, Chartered Accountants retired and being elisibie offer themselves for re-appointment, Safety, Health and Environment We maintain our commitment to higher standard of Safety, Health and Environment. All our e-nployees undergo continuous training on all aspects of safety especially with regards to the safe production, delivery, storage and handling of the materials. In addition, we have initiated a rotation exercise atthe mill wnereby our aim is to ensure that all supervisors are also safety managers and are fully cognizant of all a:gects of safety training, Due these controls and with the blessing of Al-Mighty Allah na major accidents or vcidents ‘00k place at the mil, Environmental Protection Measures ‘Your company always ensures environment preservation and adopts all the possible means for environment protection. We have been taking various steps to ensure minimal dust and emission from our plant and our production lines are installed with pollutant trapping and suppression systems to control dust particles and other emissions. Corporate Social Responsibility Your Company is fully aware ofits corporate social responsiblity and has been working positively to raise the educational, health and environmental standards of the Country in general and local communities in particular. Your Company is extensively supporting various educational and health projects a)& vera Texte MILs UMITED QUETTA TEXTILE MILLS LIMITED Tek +92 (21) 3241-43365 Fax +92(21) 3241-9599 MotsaleasidustaGeaup.om Web: wus QuetaGroup com DIRECTORS’ REPORT TO THE MEMBERS Human Resource and Remuneration Committee Human Resource planning and management is one of the essential matters and is at the spotlight at the Senior management evel. The Company has. a Human Resource and Remuneration Committe that guides in the section evaluation, compensation and succession planning of key management personnel. Is responsiblity entails recommending improvement in the company's human resource policies and procedures and their periodic review. The Committee keeps abreast with industries "Best Practices” and ensures to dls-cuss and implement ths as and when the situation arses. Pattern of Share Holding ‘The pattern of shareholding a5 on une 30,2017 is annexed to tis report, Summary of Financial Data Financial data fr lat six years in summarize form is annexed. Board of Directors Meetings ‘total often meetings of the Board of Directors were held during 12 months’ peri from July 01, 2036 to Sune 30, 2017. Attendance at the Board Meetings by each Director isa follows: [Name of Directors Number of Meetings Attended Mr. Targ bal 2 Mr. Asim Khalid n Mr. Omer Khalid 2 Me. Taugir Tariq 10 Mes, Saima Asim 05 Mrs, Fabbasum Tarig 06 Mrs. Sadat Khalid 06 Mt. Major Rte Muhammad Saeed ot Leave of absence was granted tothe directors who could not attend some ofthe meetings. During the period under review there was no trading ofthe Company's share bythe Chef Executive, Che Financial Officer, and ‘Company Secretary, their spouses and minor children. Board Audit Committee ‘The Board of Directors in compliance with the Code of Corporate Governance has established an Aueit Commitee. The name ofits members i given in the company profile, ‘The Committee meets at least once every quarter and assists the Board if fuliling its oversight responsibilities. A total of four Board Audit Committee meetings were held during 12 months’ period from July 02, 2016 to June 30, 2017, Attendance at the Board Audit Committee Meetings by each Director / members is 3 follow: Name of Directors Number of Meetings tended Mrs. Tabbasum Tat ot Mrs. Sadat Khalid og Mr. Major Rtd. Muhammad Saeed ot 8)& owerra texte wntis umired QUETTA TEXTILE MILLS LIMITED Nadir House, || Chundrigar Road, Karachi - 74000, Pakistan Tel: 492 (21) 3201-4334~6 Fax: #92 (21) 3241-9593 Mail sales@QuettaGroup.com Web: wwv.QuettaGroup.com DIRECTORS’ REPORT TO THE MEMBERS ‘The term of reference of the Audit Committee based on the scope as defined by the Securities and Exchange Commission of Pakistan (SECP) and the guidelines given by the board of directors from time to time to improve the system and pressures. Within the frame work of term of reference determined by board of directors, the Audit Committee, among other things, will recommend appointment of external auditors and review of periodical statements. Corporate Governance The Board of Directors hereby declares that for the year ended June 30, 2017: a) The Financial statements, prepared by the management of the Company, present its state of affairs fairly, the results of its operations, cash flows and change in equity. b) Proper books of accounts of the Company have been maintained. ©) Appropriate accounting policies as stated in the notes to the financial statements have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment. d) The International Financial Reporting Standards (IFRS), as applicable in Pakistan, have heen followed in preparation of financial statements and any departure there from has been adequately disclosed and explained. €) There is no significant doubt upon the Company's ability to continue as a going concer f) The system of internal control is sound in design and has been effectively implemented and monitored fg). Key operating and financial data for the last six years in summarized from is annexee h) Outstanding duties, statutory charges and taxes if any, have been adequately cisclosed in the annexed audited financial statements. Conclusion In the end, | would like to thank all the financial institutions for their continued support and condence they have shown towards the company. To the workers, staff and officers, | extend my gratitude for their dedication and honesty. For and on behalf of the Board TARIQ IQBAL Chief Executive Karachi: Dated: October 09, 2017 8)ed pe fiend gs eq itndlot weir E2011 R30 AIL Me wef sstleneih PeS AL DASE of wt eibienL A Gili ilalbo 2016 ao fon» (724.815 (1.433.350) Ged Eko) 9380 3200 FngF (0,715,435) (0.430.150) Fai) (27278) (6.043) 1.285.250 (375.202) iL im (257.463) (2,805,395) 55.983 34,708 HeirSevinetgoney (075202) (1.758.691) Behe eG Sed cuptsamesd Werte L207 er% be Poni le BAIL Were wie vot warns en, Ht s280632%) KIS e we as6910 Select 1 a AFUE Le sac 724.815 RIO FAW BL FL MESA NSE LLU SAS 2h IIS Le ME SS 2.656.177 UbinstrL be inn SHES ale narss Ke src 1,430.1902,2017 WPL FA Ee pW Ae Garni gut pba RASS HE ea Pe thd He k Gabe S sete sl Sil, (10)& quetta textive mitts ured Aen eu Fe nl within ti fia SL Soll’ bre Sb Ley tos ete Lone rsode 0 Sek OMe Ede ect Pi tenet 0 SrtA Wis Ltn lug Suerent Bag Sass, L Se Sint Sp aloo fhiger 0 i Fei ey dE Sip ster be nb ed” jaro leneuipniSirke fh arte nd suse Joh Such Hele Sire Ne itidion mB GLA 0 ete webbed SF PS se owee SASe-F bts nebo Sifike Ais aifit boy Sutlevy Sheesatce nS ASur od Sods snPrearibie bie detuie SE SiencotnSG “Minko tor Aibnriomeiny Fo (Cash Flow) Ih SB Su? erp Aue nie obi ods abot nd ve senefisaw Liar Pas est Le dio bed hy iSiBle. ae AEP ce eye VEE hentia JE te oe fon Sur ic. PSS Sor nh ter tek APL h ic. uden (ty& versa TEXTILE MILLS LIMITED oberon tS Ede San in 260 oes Wor Mate ahd IAS SEI BF Sule bree Soar lire Pe SES feeb babes ALIL Swine YAP Seb he we FLA diye die sie i tee obi rlllta EWI LSB Sip bnhe SS 9S Sut isi Sei MIE SB tg Fp BLIGE SBE CSP SIN Apa LESS SA. fe buibise dren Aue, My Sek pe Sle. eH 6 geben Si BZ. pie hans heen LEW BoIh PEALE MLS = EERO Sot we WlahVe AHL LL IML Bin gb ERI Bros prin BEL ove Ol Hot SB Aa tate felis a no de weed. eeleny CP LANE LAM PL ALEL PLE un is WOME bur LE father SL Ins e Feu R sews Fewuilly ephrep Bek SPs Rr Urb eS By iade Sedative Ut Biehl Pz Sah aSrsaattigatiase: apt ien Suet ha Meter AL Lintiaider SNe Bap ei? webu TinpemieS USD/PRR ed LAL tals sig BG La Sapna CFA E Sate 8 So Se Stag LEM St Pode See we EIIV Cigna Se hE Lah Foe 8 etree Ee PG a SSALIEL WE p wiv Re Pa rip His Ss, Aponte VA WM Pie SE LIONS IAD ST ned SE Pungo (12)& aquerta textite Miuis uimited Posty BLAM Tine nd Abe Sumas MEF Fig Hie bE sete. = mre hie fie bate Ag fpeicti AG See tes VEL Bee Saber oF 20179230 GW SEAb) se! cree 04 Dob os ‘ ae ea te a eB MSi tertile me BSE Ce eb S Ste A. Vsctattrne RS Soil bust es As sisiesauenenvet! — Ce o Yonsstrny Ai ly Hanh We AL url Pe ui Seles cunt SBS Sein BGA wt orn. (14)& uertatextite mits umireo ‘OPERATING DATA, Sales ost of Goods Sala Gross raft Profit / L038) Before Taxation Profit / (Loss) After Taxation FINANCIAL DATA Equity Balance Property, Plant & Equipment CoreentAcsets CurcentLiabites PROFITABILITY RATIOS Gross Profit Margin Operating roft Margin Net Prot Margin Lwquiorry Rarios, Curent Ratio (ick Ratio ACTIVITY / TURNOVER RATIOS Daysin Receivables Accounts Receivables Turnover Inventory Turnover Total Assets Turnover Return on Tota Assets Return on Equity LEVERAGE RATIOS Long Term Debisto Equity Tota! Debts to Eauty Long Term Debts to Total Assets Total Debts to Total Assets Equity to Tota Assets Interest Coverage Ratio orers Earning (Los) Per Share Breakup Value of Share w/o Revaluation Surplus Breakup Value of Share with Revaluation Surplus cash Dividend fs fs fe oT ‘00 ‘0! ‘00 fan ‘ooo ‘00" ‘0 Times ays b Times Times Times Times Times Rs Re KEY OPERATING AND FINANCIAL DATA 20172016 2015 2014 2013 2012 5.280635 5,280,182 10,175,475 12,301,405 12,967,979 11,161,096, 6.202,168 6,439,717 9,562,202 11,064,701 11528589 9.670029, (0.011527) (459565) 613574 1,236,708 1,439,430 1,471,067 (2.433.350) (3.724815) (923527) magia 267.282 157,549, (430,150) (1,715,435) (392,018) 70699 15927236439, (637215) 524548 2,182,001 2,488,036 7424.932 2,238,689 5.503.697 5,763,224 6,038,988 5,008,146 5,055,754 5,081,501, 11986598 3425592 5,068,859 5,128,633 402,188 4,426,786 465,74 5,058,190 5,853,385 5,532,758 4.702.127 4.855.283 (ay (2136) eas eee io) raz) eras} 32.73) (32) 170 2.00 137 (2705) (2257) 318 175 206 1a 04s 068 oar 093 094 oat 010 009 on 01s oe 04a 62 aa 9s aan. aes 2825328798221 343 (16) (265) 320 320 361 082 052 0.96 125 136 116 (018) 0.15) (003), 002 03 002 200,087) (as) 0.09 on oor 815) 425, o78 on ass os? 50) 1394 304 2.60 242 27 029 a2 oas. 017 02 023 079 06s oss ost a62 068 (0.09) 0.068 020 02 028 023 (4) 4a)” (082) 036 037 ow (1001) (13136) (3045) saa 122s 290 (363) 4873 asrgs 938 ages, a72.21 Sagi 157878322, aasl 24087 * 227.90 mt mL it cr 15 or (15)& avert TEXTILe MILLS LIMITED DETAIL OF PATTERN OF SHAREHOLDING AS PER REQUIREMENT OF CODE OF CORPORATE GOVERNANCE [AS AT 30TH JUNE 2017 Name of sharehol Noot ne | Shareholders| share ett [Pecentage 1 Directors, CEO thelr Spouse and Minor Chldern ° Wr Trig fabal Torecor BOT wast] Mi. Alm Khali (Director) haseass 988 ‘Omer Kat (orectr) taza 9 hits Sima Asim (Brector) 870007 Ms. Sedat kal (Drector) ao7ase 306 Mis. TabbasumTarg (oredr) suas 58 wr. Taugeer Trig (Director) sora Mr. Muhammad Saeed (ovector) S100 Ws. Tabmina Taugeee {w/o Me. Taugee Tava) | sssz05 527 2. Associates Companies undertatings and Related Parties 3 cP 1 250 0.00 | 4° Executive Nil | 5 Pubic Secor Companies & Corporations a Bank Development Finance Inston, 3 Non-Sanking Finance ston, Insurance Companies, Modarabas & Mutual Fund ‘atonal raasios Co-apete Finance Goraton a a8 National Bank OF Pakistan essr___a07| 7 others , naar 8 di a ayaa sss Tat [eT eno] 0008 ShareholdersHoding 08% or More Tan Trg sooss0 66 uknsana Kal 1293887 995 Taig ba 3870596 Mi st Kal 13823598 vv. Omer Khalid 1279303388 (Mrs, TabbasumTariq, “694,353 5.34 Mr. Taugee Tavig mins 687 brs Tanina Taunecr as205 527 (16)& oversa textite mits umiteo Pattern of holding of the shares he PATTERN OF SHAREHOLDING ( FORM - A) by the shafeholders as at 30-06-2017 is given below (17)& vert textive mits Limited QUETTA TEXTILE MILLS LIMITED “eh o82 (21 aabeasaeeg fo 190 (20) 9281 9593 Moisle@dustsGroupcom Web wi QaeMaGrou.com STATEMENT OF COMPLIANCE WITH THE BEST PRACTICES OF THE CODE OF CORPORATE GOVERNANCE FOR THE YEAR ENDED JUNE 30, 2017 ‘This statement is being presented to comply with the Code of Corporate Governance ("Code") contained in Regulation 5.19.24 of the Listing Regulation ofthe Pakistan Stock Exchange Limited for purpose of establishing 3 framework of good corporate governance, whereby a listed company és managed in compliance with best practices of corporate governance. The company has applied the principles contained in the CCG in the following manner The company encourages representation of independent non-executive directors and directors representing minority interest an Its board of directors. At present the board includes: Category Names Independent Director(*) Mr. Major Rtd, Muhammad Saeed Executive Director Mr. Tariq iabal ‘Me. Asm Khalid Mr. Omer Khali Non-Executive Director Mir. Taught Tarig Mrs. Saima Asim Mrs. Tabbasum Tariq ars, Sadat Khalid “The independent diector meets the criteria of independent under clause 5.19.1. (b) of the CCS. ‘The directors have canfrmed that none ofthe directors ofthe company are serving ss a director in move than seven listed companies, including this company. All the resident directors ofthe campany are repstered as taxpayers and none ofthe has defauited in payments of any loan toa banking company, a OF oF an NE declared as a detaulter by that stock exchange. or, being a member of stack exchange, has been "No casual vacancy has occurred an the Board during the year under review The Company has prepared a "Code of Conduct” and has ensured that approprist” stops are taken to disseminate it throughout the Company along with its supporting policies and procad The Board has developed a vision/mission statement, overall corporate strategy ane significant policies of the Campany. A camplete record of particulars of significant policies along with the dates on which they were approved oF amended has been maintained. All the powers of the Board have been duly exercised and the Board has taken dec ons on material transactions, including appointment and determination of remuneration and terms and conditions of femployment of the Chief Execute (CEO) and other executive directors” have been taken by the Board/shareholders. 5 The meetings of the Board were presided over by the Chairman ane, nhs absence, by a dector elected by the Board for this purpose and the Beard met once in every quarter. During the year four meetings of Board of Directors was held and as required by CCG. Written natices of the Board meetings, along with agenda and ‘working papers, were circulated at least seven days before the meetings. The minutes of the meeting were appropriately recorded and circulated (18)10, 4, 22, 13, 14, 15. 16. 17, 18, 49, 20. a 2 QUETTA TEXTILE MILLS LIMITED QUETTA TEXTILE MILLS LIMITED Nadir House, || Chunrigae Read, Xarachi~ 74000, Pakistan Tol +92 (21) 3261-4334-6 Faw +92 (21) 3241-9592 Mall: sales@QueraGroup.com Webs wow QuettaGroup com In accordance with the criteria specified on clause 5.19.7 of CCG, certain Directors of the Company are exempted from the requirement of directors’ training program as prescribed by the Code of Corporate Governance and the rest of the Directors are trained. All the Directors are fully conversant with their duties and responsibilities; they were further apprised through orientation courses during the year. The Board has approved the appointment of Chief Financial Officer (CFO), Company Secretary and Head of Internal Audit earlier, including their remuneration and terms and conditions of employment. However, no new appointment has been made during the year. ‘The Director's Report for this year has been prepared in compliance with the requirements of the CCG and fully described the salient matters required to be disclosed, The CEO and CFO duly endorsed the financial statements of the company before approval of the board. The directors, CEO and executives do not hold any interest in the shares of the company other than that disclosed in the pattern of shareholding, The Company has complied with all the corporate and financial reporting requirements of the CCG, The Board has formed an Audit Committee. It comprises of three members, all of them non-executive directors and the chairman of the committee is an independent director. The meetings of the Audit Committee were held once every quarter prior to approval of interim and final results of the Company and as required by the CCG. The terms of reference of the committee hav> zen formed and advised to the committee for compliance. ‘The board has formed a Human Resource and Remuneration Committee. It comprises tres members, of whom two are non-executive directors and the chairman of the committee is an executive airector The Board has set-up an effective internal audit function, The statutory auditors of the company have confirmed that they have been given : «31 factory rating under the quality control review programmer of the Institute of Chartered Accountants of Pakistan, taat they are ‘not aware of any instances where shares of the company are held by any of the partners of tre firm, their spouses and minor children and that the firm and all its partners are compliant with International -ederation of accountants (IFAC) guidelines on Code of ethics as adopted by the Institute of Chartered Accountan’ of Pakistan (ICAP), The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the listing regulations and the auditors have confirmed that they have ‘observed IFAC guidelines in this regard ‘The “Closed Period”, prior to the announcement of interim and final results, and business decisions, which may materially affect the market price of company's securities, was determined and intimated to directors, employees and stock exchanges. Material/price sensitive information has been disseminated among all market participants at once through Stock Exchange, (19)& averta TEXTILE MILLS LIMITED QUETTA TEXTILE MILLS LIMITED "Nadir House, |. Chundrgar Road, Kerachi~ 74000, Pakistan “el: #92 (21) 3241-49346 Fax: 492 (21) 3241-9593 Mail: sales@QuettaGroup.com Web m 23, The company has complied with the requirements relating to maintenance of register of persons having access to inside information by designated senior management officer in timely manner and maintained proper record including basis for inclusion or exclusion of names of persons form the said list. 24, We confirm that all other material principles contained in the CCG have been complied with For and on behalf of the Board Bow TARIQ.IQBAL Chief Executive Karachi Dated: October 09, 2017 (20)& uersa textite mitis umiteo REVIEW REPORT TO THE MEMBERS. On the Statement of Compliance with Best Practices of the Code of Corporate Governance We have reviewed the enclosed statement of compliance with the best practices contained in the Code of Corporate Governance prepared by the Board of Directors of Quetta Textile Mills Limited for the year ended June 30, 2017 to comply with the Code contained in regulation No. 5.19 of the Rule book of Pakistan Stock Exchange Limited The responsibility for compliance with the Code of Corporate Govemance is that of the Board of Directors of the Company. Our responsibility is to review, to the extent where such compliance can be objectively verified, ‘whether the statement of compliance reflects the status of the Company's compliance with the provisions of the Code of Corporate Governance and report if it does not and to highlight any non-compliance with the requirement 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 part of our audit of financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. We are not required to consider whether the Board’s statement on internal control covers all the risks and control or to form an opinion on the effectiveness of such internal controls, the Company’ corporate governance procedures and risks. The Code requires the Company to place before the Audit Committee and upon recommendation of audit committee, places 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 arms length price and recording proper justification for using such alternate pricing mechanism. We are only required and have ensured compliance of requirement to the extent of approval of 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 were undertaken at arm’s length price or not, 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 status of 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 June 30, 2017. MUSHTAQ & COMPANY KARACHI: Chartered Accountants Date: october os, 2017 Engagement Partner: Mushtaq Ahmed Vohra : FCA (21)& Quetta TEXTILE MILLS LIMITED AUDITORS’ REPORT TO THE MEMBERS We have audited the annexed Balance Sheet of Quetta Textile Mills Limited as at June 30, 2017 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 thereof, for the year then ended and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit. It is the responsibility of the company's management to establish and maintain a system of internal control, and prepare and present the above said statements in conformity with the approved accounting standards and the requirements of the companies Ordinance, 1984. Our responsibility is to express an opinion on these statements based on our audit. We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the above said statements. An audit also includes assessing the accounting policies and significant estimates made by the management, as well as, evaluating the overall presentation of the above said statements, We believe that our audit provides a reasonable basis for our opinion and, after due verifications, we report that; a) inour opinion, proper books of accounts have been kept by the company as required by the Companies Ordinance, 1984; b) —_ inour opinion; (i) the Balance Sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the Companies Ordinance, 1984, and are in agreement with the books of accounts and are further in accordance with accounting policies consistently applied; (ii) the expenditure incurred during the year was for the purpose of the company’s business; and (ii) the business conducted, investments made and the expenditure incurred during the year were in accordance with the objects of the company; (©) inour opinion and to the best of our information and according to the explanations given to us, the Balance Shect, profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in equity together with the notes forming part thereof conform with approved accounting standards as applicable in Pakistan, and, give the information required by the Companies Ordinance, 1984, in the manner so required and respectively give a true and fair view of the state of the company’s affairs as at June 30, 2017 and of the loss, comprehensive loss, its cash flows and changes in ‘equity for the year then ended and (@)— inour opinion, no Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980). (22)& querta textite mits umiteo NOTES TO AND FORMING PART OF THE THE FINANCIAL STATEMENTS For tho yearendea une 20,2017 (© Without qualifying our opinion, we draw attention to note 24 in the financial statements which indicates that the company incurred a net loss of Rupees 1,430.150 million during the year ended June 30, 2017 and, as of that date, the company’s current liabilities exceeds its current assets by Rupees 2,666.17 million. These conditions, along with other matters as explained in note 2.4.1 to 2.44 indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern. These financial statements, however, have been prepared on the going concern basis on the assumptions as detailed in aforesaid note MUSHTAQ & COMPANY KARACHE Chartered Accountants, Date: october, 2037 Engagement Partner: Mushtaq Ahmed Vohra (23)& auerra TextiLe MILLS LIMITED Sr QUETTA TEXTILE MILLS LIMITED BALANCE SHEET ASATIUNE 30,2017 20" une, 2017 30" une, 2016 Note Rupees Rupees sone NON CURRENT ASSETS 1-5” propecty plant and equipment 6 | ssoRéeser | 576922620 ong term deporte 7 79,460,718 67437881 ss7464393—5.30,662,001 Stores, spae and loose tools a serorrsas | 426,412.01 Stockin trade 9 1at7749453 2518 ,850,400, Tease debts a0 168.082,069 | 120,156,85, (ther francs ase n 139553 113051 Loaneandaovances 2 4618.63 65390375, Trade deposits ana shert term prepayments a ase 734 25545,997 Income tow anal tax eundele my tes67952 181017346 Cath and bank balances as 5996240, 61099,261, 9s6so7.770 3425592416 isan apse 20a quiry AND UAsiUTes SHARE CAPITAL AND RESERVES Autnoriaed capital 20,000,000 Une 20, 2016: 20,000,00) ordinary shares of Rs 10 ach 200,000,000 200,000,000 15,000 90 Vane 20, 2026: 15,00,000) reference shares of RS. 10 each 180,000,000 150,000,000 "spoe.500- so. 500 000. sued, subscribed and pae-up ca Reserves x7 (az7an47s2) 391 sesae Sa sansa Surplus on evaluation of property, pant and equipment 18 __saoygerets 1461795244 TOR BT6ES2 1983.33.28 [NON CURRENT UABILITES Longterm finances » sssaioar? 9140425 Redeemable opal - Sukuk 20 19067673 343,367,585 loan from director and others -subocdnsted a 360,726470, Labioes agaist asets subject Noance ease 2 10,731,902 15836285 Detered abate 2 79;300350 ——793,387531, siaeesa1252224720,96 ‘CURRENT URBIITIES Trade and otner payables Py usooge¢ | 1223,013200 ‘cerud narest/ mark-up 2 559.23248) _356329.661 ‘hor term borrowings 26 —-27isae36a7. 3018907324 loan from svete and ethers ” rssi6sa8 31416168, Long term frances re pussagsat | 120,146,483, Redeemable capita -Sukok 20 anissea20 | 319970058 Tinites agent eee subject france lease 2 15012839 9507497 14954,363,580 —5058,180.391 CONTINGENCIES ANO COMMITMENTS Py : rare eT ‘The annexed notes from 1082 form an integra part ofthese nani statements. Wa ania ‘OMER KHALID Chet Executive Director aaeh ctor 09,2017 (24)& quetta textite mitts uimiteo QUETTA TEXTILE MILLS LIMITED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2017 30" June, 2017-30" June, 2016 Note Rupees Rupees Sales 29 5,280,635,128 —_§,280,152,958 Cost of sales 30 (6,292,162,522)__(6,439,717,661) Gross (loss) ~~(1,011,527,394) ~ (1,159,564,703) Distribution cost 31 (40,028,542) (100,163,113) Administrative expenses 32 (59,893,766) (55,992,850) Other operating expenses 33 : (701,114) Finance cost 34 (322,250,990) (411,559,765) (422,173,299) (568,416,841) (Loss) from operations ~~ (1433,700,693) —_(1,727,981,544) Other income 35 350,206 3,166,261 (Loss) before taxation ~~ (1,433,350,487) —(1,724,815,283) Taxation 36 3,200,086 9,380,163 (Loss) after taxation —_(2,430,150,400) —_ (3,715,435,120) (Loss) per share - basic and diluted 37 (110.01) (131.96) The annexed notes from 1 to 52 form an integral part of these financial statements. Aims Wad TARIQ IQBAL OMER KHALID Chief Executive Director Karachi: Dated: October 09, 2017 (25)& avert textite MILs LiMiTED ‘STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED JUNE 30, 2017 Note (Loss) after taxation Other comprehensive income Items that may not be reclassified subsequently to profit and loss: Loss on remeasurement of staff retirement benefits Impact of deferred tax Other comprehensive loss for the year Total comprehensive(loss)/income for the year 30" June, 2017 Rupees (1,430,150,400) (4,927,792) 884,785 (4,043,007) The annexed notes from 1 to $2 form an integral part of these financial statements. Bom TARIQIQBAL Chief Executive Karachi: Dated: October 09, 2017 (26) Wo OMER KHALID Director 30 June, 2016 Rupees (2,715,435,120) (30,397,739) 3,119,538 (27,278,201) (4,434,193,407)& cuersa textive miuis umireo CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2017 CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations Long term loans and deposits Interest paid Gratuity paid Workers’ profit participation fund paid Taxes paid Cash flows from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment Other financial assets Proceeds from disposal of property, plant and equipment Dividend received Cash (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Long term finances Redeemable capital - Sukuk Liabilities against assets subject to finance lease Short term borrowings Loans from directors & others Dividend paid Net increase/(decrease) in cash and cash equivalents Cash and cash equivalent at the beginning of the year Cash and cash equivalent at the end of the year Note 38 15 30" june, 2017 Rupees 213,895,761 (3,029,834) (31573707) (31,121,549) (2,550) (27,112,204) (118,764,308) 95,131,453 (23,018,657) 7,352 (23,011,305) 148074626 1,403,059 (273,623,637) 14,400,420 (83,821,069) (1,700,921) 61,097,161 59,396,240 The annexed notes from 1 to 52 form an integral part of these financial statements. Bros raniaiaeat Chief Executive Karachi Dated: October 09, 2017 (7) La OMER KHALID Director 30" June, 2016 Rupees 764,588,314 (36,057,457) (243,200,812) (34,168,836) (176,516) (21,185,807) (334,789,428) 429,798,887 (16,675,081) 1,867,802 6,900,000 11,027 (7,896,252) 873,593,268 (34,180,645) (4,031,184) (1,279,922,539), 2,927,566 (417,828), (442,031,362) (20,128,727) 81,225,888(82) & aquerta textite MILs umited STATEMENT OF CHANGES IN EQUITY FORTHE VEARENDEDIUNE0, 2017, | Reserves J ‘Unappropriated ‘Shore Capita |[ Total MA | share premium || capital reserve Sub total Prof ame i ] {atance as at July 02,2035 130,000,000 651,750,000 1.200 766,751,200 1,285,249,681—2,182,000,852 ‘Transfer from surplus on revaluation of : : 55,937,517 35,937,517 Property, plant and equipment {incremental depreciation} net of deferre tae ‘Total comprehensive income forthe ‘year ended June 30, 2016 Prof fer taxation forthe year - - "| “Giaasaas 20) 715 435,120) ‘ther comprehensive lss fr the year - : (27278201) (27278201) : a asa73z) (372,713,321) Balance as at June 30,2016 730,000,000" "651,750,000 200 175,000,000 Tee 7o4300 75 30,616] SIT SRS Solance as at July 03,2016 130000,000 651,750,000 41200 185,000,000 766751200 (375202616) 521,548,584 ‘Transfer from surplus on revaluation of : : 54,703,601, 4,703,601, Dropeny, plant and equipment (incremental depreciation) «net of deferred tax ‘Total comprehensive loss forthe ‘year ended June 30,2017 Transfer (note 17.3) 160,726,470 160,726,470 160,726,070 Loss after taxation forthe year a 7 (2.436,150,400) (430,150,400) ‘Other comprehensive loss forthe year ae - (4,043,007), (4,043,007) = (4434193,407) _4.434193,407) otance a5 at une 30,2017 FIO, BL The annene notes rom 1052 fom an intra part of these financial statements. wad atvaasaL Chet Eecuve Dated: october 09,2017, Tw imap eT BIAS — TAT ATT Tike COMER RAUD Ea& auerta texte mitts ured [NOTES 10 AND FORMING PART OFTHE THE FINANCIAL STATEMENTS, “THE COMPANY AND TS OPERATIONS. “The Company wat incorporated in Palistan as 2 pbc led Company in anury 29, 1970 under the Compares Act, 1913 (Now the Companies O'ennce, 988 The sares ofthe Company ae iste on Pakistan Stor Exchange. The repre fe of he company ante ‘st round Noo Madr House | Cundegar ros Kara “The camsny i rincpaly engaged in manutactring andales of yr ad fabric. The production faites related at oti the rownce of ‘Sra and 4914 Multan Road Bha , OnE Kasr te roves Puna, 21 statement of complnce “Then fnancl staterets have been aepaediaacordance wth he eguirements of The Camganes Oran, 1984 the Orns) and the approved acountingstandt6s 3s applicable i Faistan, Approved accounting sondrds compre of sch Inenational Financal Reporting Stands (FRS) sue bythe Inenstional Accounting Stencade Board at are notified under The Companies ‘orinance, 184, rovons of and directs iued under The Companies Ordnance, 1984, Wherever the requrements oF The Companies Oeiance, 184 rdectas sued by Secttes and xchange Commision of asta iter wth he requrement of 15, tho requrements of The Comparis Ordnance, 884 andthe requirements ofthe sé eter hal pei ‘The ancl statements have ben prepared under the Miso cot convention except fr mesurerent of cet far sets snd ranca ables aa value and recognition of employee bens at present ale 23. Fumeional a ‘These Hoancal statement ae pretend in Pakston Rupees whi ae the Conan’ fnetonal currency Al rani information froventedn Pakistan Rupes ha en rounced oto the nearest pee 24 Going concern assumption: presentation cuteney Dating the yar, he Company incre oo arcurig ts, 1490150 millon he 30, 206: Re 2.725485 mio) and has reported cumulated lovee aunng Re 1.754 692 mon oe 30,2036 As. 37.20 millon] the yt end: Acovaingy, este to ‘epmveequty of 697.235 milion in caver yat une 30,2026: goste equity Rs. 51.58 millon). nation the Company's ‘ent bis exe ts cent aeets by Rs. 2,68 176 milion (ane 30, 2016 Rs. 1.532598 rill) athe yea end. The main reason of loss was due To operational brea down because of short of warking cA which dropped the Brodin operstonat (fen ana vests the entend GO of eshable capacity. The GTM. ae sere lis due to slowdown demand fr ctor ‘hove Finns atemets avs been prepared by the manseement ongoing concern bation the gourds tat the Company Wl bet active stator lvls of aromth nthe ature aed onthe pln aw up bythe management fr hs utp 2LAA The management ofthe compony 5 regnhting an amicable sleet of further Baancing for warting capt wt the Ranking Compares and franca inte. Seis of mang the rors Move 30 Been Held ane the Mater is Bang pesuaded aresehy withthe bon rd ancien: Managements confine gt positive response and wile bleto gaat on ovorabe terms wt he barking companies and franca tutions inert release Roace for woking Capt requemers fn operation scotty 2242. The managemcot fos prepare fie years fre pin showing postive growth i operation and busines fhe company. Management tiers that, company wl be ale to Series sation etl f prota he fate Base on the plas own up by the anagem fortis puro 1243 econ ant pnts f the company, have invested ts, 14.400 ion ding the period and they commit that hey wee ao centivesich support in fture and 2.4 The ranseement ha ao undetsen decuate steps turds the reduction offre cost and expenas which are a various tages of Implementason. uch eps nce, tut ot ite origin ofthe men power, resource cnserention cose maritring of ther fal cost ot, The management in certain to generate ufclet Savings as consequences of adapting al such measures ‘The managemant anticipates tat above tes wil ot ony big the Company out of he essing nancial eri but ao cntbute sca towards the provement the comssny Sac poison inthe reset te [ACCOUNTING ESTIMATES, JUDGMENTS AND FINANCIAL RISK MANAGEMENT ‘The estates / uments ana toca assumptions used nthe preparation ofthe andl statements are bose on storia experience thd other factors, ncuding expectations of future vers that ar Blaved tobe resonable under the creumsances. The Company mates {mates and assumptone concerning theft. The euting accouring etimates wil by dafnitorsldom equal the elated atu! eu ‘he estimates ana sssompton tha havea sipncnt ik of causing 2 materi agent othe caring amounts of eset ard abies “artis ent rane yep are 3 fll: (29)& cuerta textite mits umiteo [NOTES 10 ANO FORMING PART OF THE THE FINANCIAL STATEMENTS forthe year onde ine 30,2017 Property, plant and equpment ‘he Company reviews the rates of deprecation, seul ves, residual values ana value fats for pose imps on an anal basis Any ‘change inthe estimates in fture yrs might affect the carrying amounts ofthe respective es of propery, pant and equipment with 3 ‘comespondng elec on the depreciation charge an imsarment Stock in trade and stores, spares ad loose tools “The Company reviews the net reatzable value a tockintrae and Mores, pars and aot tools to aes any iminutin inthe respective carrying vals. Any change in the esimstes in future years mht ate the caring amount of stocks trae and sors, spares and ose tools with 2coresanding effect on the amorsaton charge and iaiment Ne realiable value determined with respect to estimates Selig prc lass estiated expense to make these, Stat retement benefits Certain actuarial sumptions have been adopted as sclosed in note 24.4 to these fancalstatements or valation of present value of éetnee| ‘nett obligations ae fr valu o plan aes. Changes in nese attmptons in future years nay alec the ality wider these schemes ose yeas In making the estimates fr income tates curry payable by the Company, the management looks atthe caret income tn fws andthe ecsions of apgelate autores on cea uesin the past, Investment stated afi value “Management has determined fk value of certain ivesments by ug quotation rom aetwe market coniions and information about the fiancal instruments. These estimates are subjective nature and iol some uncertainties and mattrs of dgemant eg. value, interest rate, et} and therefore, canna be determined with precison, Trade debe and other receivables The Company's management reviews i wade debtors ona contavous bal to Menty receivables where collection of an aroun is no foger robbie. These estimates re based on historical experience and are subject changer ncondons atte ime of actual recovery. STANDARDS, INTERPRETATIONS ANO AMENOMENTS 10 PUBLISHED APPROVED ACCOUNTING STANDARDS 4.1 standards, amendments to approved accounting standards and interpretations that ae atfective in the curent yar and have not ben coy adopted by the company 1FRS 3 ‘nancial instruments (effective for periods bepnning on rater January 03, 2018) 1SBhoe pubis te complet version oF FR5 9, ‘racial instruments which eloces th guidonein IAS 39. This fal version ncudes requirments onthe asain and measurement of franca asets and habits; as neues an expects cross model ht reslaes the incurred les impsrment model wed tod. The ‘Company ha et oases the igact ofthese changes ons nde statements, TERS 15, ‘Revenve from contracts with customers is applicable to secourting periods beginning on or after January 1, 2018, The IAS hss sued 3 new standard forthe recognition of revenve. This wl race AS 18 which cavers cantacs for goods and series an iAS 11 which ‘covers construction contracts. The new standards bases on the princple that revenue recognized when contol ofa good or sence transfers to customer ~ so the notion of contol replaces the exrtng notion of rks and rewards. The standard permits» modied retrospective approach forthe adoptin. Under this approach encty wl recognze tansionl ajustmerts in retin earnings on the date of ntl pleat, wthout estate comparative period. They wll ony need to aly te ne ules to contrat that are not completed a of ‘the date oil appa, The Company has yet asses the ipa o his standard ons Franc ttements “Amendments to IRS 1, ‘resentation of fancial statements on the diclouure nittve ae applicable to annua petiods beginning on o afer Janay 1, 2016, the amendments ace made inthe context ofthe ASE: DeloeueIniatve, which explores how fran statement dslesutes ‘an be improved. The smendments provide claReatons on 3 numberof iss, Including: Materty- an ent shold not eeregte oF dssggregote information in 2 manner tat obscures uselul infornation Where items ae material suliert nfrmation must be provided to emian the impscton the nancial poston or perfrmance. Notes cnfemation tht the notes do not need tobe presented in parler ‘-ar, Other comprebensiveincome( OC} ansing om investments acount for under the equity mathod =the share of OC asin rom equity ‘accounted investments i grouped based on whether the items wil wil not subsequent be recasified to proto loss, According to the "tanstional provisions, the escosures in AS 8 regarding the adoption of new standards acountng pels ae not required for these smendments. Those amendments ikely oon affects the lore inthe Company’ franc ttemens. ‘Amendments to AS 38 Intangible Assets and AS 16 Property, plant and equipment efective for periods begining on orate January 0, 2016) introduce severe ressicions on the use of revenue tated amorteation for ingle asets and ently state that everue bes ‘methods of depreciation cannot be used for property, slant and equpmert. The rebutable presumption thatthe ure of revenue based amortization methods for intangible aes snappropeae canbe overcome ony when revere and he consumption ofthe economic benef ofthe ntarghble assets are high correlated, or when he intangible Sets expressed asa mesure of revenve, The amendments are not key te have an impact on Company's ancl statements. ‘Armendrents oS 12, "come taxes’ are applicable for annual periods begining on or after January 1, 2047, Te amendment arty that the extence of dedictble temporary ference depends sly ona cmparon of the carrying amount ofan siet and ts tox tov a he end ofthe reporting period, an snot aected by possible future changes in the carrying aroun or expected manner of recovery ofthe “The amensrents arent ihe to have a material Inpect onthe Company's nan tems (30)& overta textiue mis mired [NOTES TO AND FORMING PART OFTHE THE RNANCIAL STATEMENTS, For the year ended tne 30,2017 ‘Amendments to 1S 7, ‘Statement of cash lows are applicable fr annial periods bling oo after January 1, 2017. The amerdrene reais dclsies tat eable users of fnancal satments to evant Changes abies argo Wenig ets, ung Sth {nearing am cashflow ad ror-csh changes. The anenderes are nt ely ta Rave x mater impact onthe Company’ nse Thee ar 9 rber of other minor artnents and nterpetatios to the approved accounting standards hat re not yt tec aa sot leant othe company and therefore have not ben preted here SUMMARY OF SIGNIFICANT ACCOUNTING POLES ‘The siiieart accounting polices apt in the preparation of these Hina talents ae set out below. These pols have been ‘eset apple al the years resented nen omer sate S51 somowines Maric bern borroming are recgnzed inl 2 cost ler tebvtabie transection cost Subsequent ol econ, markup bearing orowings ae stated at arcrzed cst wth ny difference between cont nd redemption value beng reagnsesin theese statement over he pred ofthe oromings onan tele interst bass 52 Employee bens 521. Compensated absences ‘The Company srovides for compensate absences of ts empajees cn uaa balance leaves inthe pei in which he ese ae seamed Post rettement enatts 522 Defined bene plane ‘The company operates an unfunded pratuy scheme er ts permanant employees a er terms of erloyment who have completes rininum cuaig period of ene dene under the shee he Company's oblgnion te determined trough acuaal valutons cared out under the Projected Unt Cede Method! emeasuerents whch compte actuarial gins ard loses andthe rtum oh pln suet fxg interest) ae recogned Immaatey in athe comorehensve come. Any change pst sevice cots mvmedatey ecopatedn proto lat coun, ‘The Company determines the net interest enpers come) on the net defied ban Kabltyase) forte pred by appv the iscount ate used to measure the dined Benet bigston 28 the begining ofthe anol period tothe then-et deed Sena lity (setting int account any changes nth pt eines ene ably (set dung the period as ret of contnbson nd benefit paymertsnet intrest expense and curent sere costs ate reaped in ot an los account. Te atest aural ‘lusion was conducted at the lance sheet date by qualified roessandl fm of curs, 53 Texation Income tx expense compris current a and deferred tx ncome ak epee rcopied im pro ls ncegt tthe extent nat Caen toes the amount of tax payable on trae income for he year, ing tax rats enacted or substantively enacted by the ‘reporting date, and any aistnent othe tx payee rerpect of previous years Provison fr cen at bere on hp the ‘arbi nome a caret rates of aation in akstan afer taking nto account ares, eames and exertions wala, oF ison ofturmover. However, fr income covered unde hal tex, tanttn is besed on alae ox ater ander sch ep ‘he amount of ung incre tax in respect of the cent or peor periods ecagzed 2 Waly. Ay exces pot ovr wht nrespet ofthe crrent or ara prog recognized san ee, Deferred tax acount for ising the bance sheet labity method proving for termporary ferences between the eating ‘mounts oft ant abies or fancl report purpose and he amounts used or ax purposes thi regard the efron eer taxation of he portion of income that sujet ona tax rege abo canicred in acorénce with he aqaramnt of "Tectncl Release 27 of the ntte of Chartted Accountant of ast, Deferred tox measure ot ats tha are epee ob ‘ple tothe temporary difeences when they reverse based aus tat have been erated or sibstatvely enacted by the reporting date deferred tos Tabity I ecogie for al tale temporary ferences, A deferred tax exes recgne for seduce temporary ferences to teen hat fate taxable profs wil be aoknleagist which temporary erences ene ted. Deere ton asets ae reviened at each epring date an ae reduces to the ntent that sno fn roa ta he ‘ete taboret wil be resize, Deere tat snot ecognze or tmngaeernces hat ae no xB to reverse and forthe temporary derece ing om the lial recgnton of goodwl ani recognton of sets and ables ina ansaton hts ota bess combination a thats the tine of ransocton affects nether the acento the abl prot, 54 Provisions ‘provision recognized te balance shet when he campany has eg or contrive obgaton as 2 est of pst vents an itis probable thst a cutfow of economic tenes wil be regured to ete the stgaton and elie esimate can be mae of te oun ofthe oblston. 1)& auerta textite mits united Forte yea onde le 30,2017 56 59 sea 592 593 “rade a her payables Lables fr trade and other amounts payable are recognized and cried at cost, which the far ale ofthe consideration tobe paid inthe fuxure for goods and services received, whether oF nt bile othe company. Dividend Dividends recognized 3 2 ably in the period in which ts approved by shareholders. Property plant and equipment and deprecation ured assets Property, Plant and Equlpment are stated a cost revalued amount less aecumulated depreciation. Cost comprises of acquston cost and ther directly attributable cost. Land, building and plant and machinery are stated at cost/revalved amount being the far value atthe date of revaluation, less any subsequent accumulated deprecation and impaiment losses. Revaluation ae pedormed with suiisentreglrty so thatthe fr valve and earying vale don’ iler mately at the en of reporting pied. ‘Te cost of replacing part ofan item of propety, pnt and equipments recognised inthe carving amount of the tem if is probable thatthe future economic benefits embodied withia the part wl ow to the company ands cast can be measured reliably. The costs of ‘the day 10-day servicing of property, lant and equpment are recognized in prot or loss since Depreciation is charge to income on reducing balance method over its estimated urful Me tthe rates specified in propery lant and eauipment rote. Depreciation on ations o propery, lant and equipment is charged from the manth in which an item's acquired or canitaled wile no depreciation is charged forthe monthin whch the tems dispose of “Te assets! residual values and uel ives are reviewed at each ranciayear end and adjusted impact on depreciation i sigifcat, ‘The gain o loss on posal of en aset represented by the diference Between the sle proceeds and the arying amount ofthe ase recognized a an income or expense here the caring mount of aset exceeds is estimated recoverable amaunt (is writen down inmelatly to ite recoverable estes in terms of which the company assumes substantally al the sks ad rewards of ownership ate classified as finance ease, Asset acqited by way of fiance lease is tated at an amount equ othe lower of ts fair vale andthe preset valve of minimum lease payments a the inception af the ease less accumulated depreciation an impoirment losses, any. Depreciation i charged onthe same base a use for owned asses Financial charges are allocated to accounting eva in a manne 0 ast provide a constant rate of charge on outstanding ability. Copia workin process apial work in progress and stores hed for capital expenlture are stated a cost and represents expenditure incurred on propel, Plant and equipment dung construction and instalation. Cost includes borrowing cost as referred in accountng soley of borrowing ‘cost Transfers are made to relevant property, plant and equiment category as and when assts are avaiable fr intended use Investments Investments in asocate Equity Method Investment in attociates is accounted or utng the equity method, These are ents in which the company has signficant influence whichis neither a subsidiary nor a jon venture ofthe company Derivative financial Instruments ‘The Company uses dervative Financial instruments such 2 forward exchange contacts and intrest ate swaps to hedge ts sks sesocited with foreign currency Borrowings and effects on cath fow of any fuctuatons In interest rates. Such dervatve financial Inetuments are sated at fair valu, Finca assets at far value through profit or loss : Financial assets clasiied as held for wading and those designed a5 such ae incuded inthe category ‘nancial assets at fi valve ‘through proft or ls. nancial assets ae dasifed as held for ring f they are acquired or the purpose of eligi the nea em. Gains orlosses.on such investment ate recognzein pean loss account eld to maturity investments Non-dauative Francia assets with fed or determinable payments and fed matuty ate dasied as helt to-maturty when the ‘Company has the postive intention and abit to hod to matutiy. Investments intended tobe held for an undefined period are not Incuded in this lasation. : ‘Te fi value of vestments that are actively raed In organized financial markets determined by reference to quoted market bis prices atthe cose of business on the balance sheet date, For investments were there sno ave markt, sr value i determines Using valuations techniques. (92)a & ouersa textie ius umited [NOTES 10 AND FORMING PART OF THE THE FINANCIAL STATEMENTS yer ende une 30,2017 sa sae sae ‘Avatars ‘ner venient not everes In ay of the above etegois ncang vestry sce which he Company Ma 0 flecae nfnce ae cased a Belg otale forsale essed 9a va, nth ry rena fino ss Bg recon “rect in egy. ais oases on vote forsale vestert af eccpnsed erty in eu ua the meters as © ‘sored oor unl the investments are determines to be pared 2 that te clave yo 1s revous reported he ‘uty ince cient years poi nis account ‘The Company wes erate francilinstruent such etre te wpe andres crecy saps thee ak sce wth Inees ate Ryans. Such deat fran stument re ely cogs tn walae an he date on when 3 anes Conn setee eto ad ae susequrty ensured at ave Dervatves are aida abies when heave pout 3 2 alies when he aval i negate. Ary gas ose ts Wom chen fi ale of erates thet donot ay or hao accounting ate taken rect pref andes acount [At the Hani sets and ancl Ebites ae reaped atthe tine when the Company bears 3 pay tothe contac proviso theinurumert. ny ger sso derecogiton ofthe franca ard ancien peo ans ‘count errr. Farell ass are sated at ter raminal valve 95 reduced ty he appropiate tewances fr etna ‘rcaverable amu Mak up bearing ran Hales ae rented ate ees rockets ecehed, Other franc! kale a6 Stores an nes ar salued tower of ata et elnblvale. Cot teed on a wel avrg bas, er ‘a vatued3tcos compen nice vale pus ote charges thereon Stokintrae Stokoe is tat tthe ower of cos and net reaiable value excep mate whi i value a et reaiable valu. Coste ow mater ewlghied average cot or epcement cot which eer oer orn popes ‘nr aerage manuacungcost Finshes goose _rsveage manuscuring ot ot ela wh eer oer Raw matrln vans stated atime reps athe ares pd theron the btnce het dt, verge manus ast relent werk grees an shed good cosat of dct materl and proportion of manu (reread nad on normal apse, Netreaiebevaue the ested ling pie inthe onary cute of bunts le cont of comgleson nd lng expats. “Trae debs arated by the Company are recog ander 3 onal ince amount lesa lowancs foray uncllecie amounts. an essed proviso for doubt debe Is made when clon of he ut amount sna loner pote a det are Casnand cosh eqalents evens recognition even rom alesis ecogze when gnats nd rewards of unripe wanted the bye. ‘hie income vecogised when the rh te recive idend i established the book sie date ofthe vate company ecg the disor orowine cots orowig css eure anon em faces recy tual forte cnsrcton cqusiton of aang aes ar caalued ‘oto the dt, the reapetve ttt ae ave or the nterded we A ther mau, ntti ether etd args oe an tothe prot anon scout eure. ngniment ‘companys asets are resent a the end af cach reporting period to deterne wheter here aes een of mpseren VF any su ngeaton wes, the ae ecverable sraunt esate. mpaement loser se Tacened i the prot ad ls tecnuntereny, Foregn curencytapslaon feregn curency tne re ranted iat Pak Rupes a encange ae previ on the te of anacton, Moneta assets slabs infra cures ace ean into Pak pees a he aes of xchange evans the lice sheet dt, xchange eterences, anya tken 0 prof ands cout. (33)& aversa texte Mitts umired NOTES 10 AND FORMING PART OF THE THE FINANCIAL STATEMENTS For he esr ended ne 30,2017 ‘5.20. Ofretting of nancial asets and financial abies nancial asses and financial ibis are set off and only the net amount reported in the balance sheet when there is 2 legaly tnforeable ight to set ofthe recogniaed amount and te company intends to either Sette on 2 net bass, orto reali the asset and sete healt simultaneous, 521, Segment porting Seement reporting ks based on the operating busines} segments of the company. An operating segment is a component of the company that engages ina business aces from which it may ear revenues and incur expenses, including revenues and expenses that relates to ansactons wth any of he company’s other components. An operating seument’s operating resus are reviewed bythe £0 to make decison about resources to be allocated to the Segment and assess ts performance and for which escrete financial information i avaiable 5:22 Financil instruments 5.22. Financ assets Classeation ‘he Company lasses its nancial assets inthe following categories: at fl value through profit oss, loans and recevabes, held to ratrity and avaiable-frsale. The clascation depends on the purpose for which the financial asets were acquires. Management Getermnes the elastieation af financial sets tial ecognison. 2) Financial assets at fr value trough profit or loss Franca assets a far value through profit or loss ae finan assets hed for trading A Financial asst is dase in this category i seated princpally for the purpose of selng inthe shoct-term. Osrvabves are ao categorized as held for trading uness thy are ‘designated as hedges. Asets inthis category ate classed as cure asset, Loans and ecevabes loons and receivables ae non dernatve finan assets with ued or determinable payments that are not quoted in an active markt “Tey ate includ in curent assets, except for matures greater than 12 months after the end ofthe reporting period. These are laud as non-curren ass 6) Held to maturity Handa assets “hese ae secures with fred or determinable payments and fed maturity in respect of which the Company nas the postive intent nd ality to ald to maturity. There were ho hela to maturty investments a at balance sheet date 4) Avaliable forsale Branca assets [Aailole forsale nancial aces are non-dervatives that are ether designated in this category or not cased in any ofthe other Categories, They ae included in non-cuirent assets unless the lovesment matures or management intends to dlspose of within 12 ‘months ofthe end ofthe poring date 5.222 Recognition Regular purchases nd also ian ase ate recognized on te trade date ~the date on which the Company commits to purchase or sel the asset Al nancial assets are inal eecogrize at fi value pls transaction costs excep or those traci assets which are designated as ‘rancalases at fat value trough profit or lose Finanal assets cared at far value thvaugh roht o los ae iniialy recognised at fair value and transacton costs ae charged tothe proft and loss account. inane assets ate derecorizeé when the rit to receive cash lows from such assets has expired or have been transfered and the Company has transferred substantially al risks sl ewards incidental to the oeetsip of such Financial assets, Dividend income from “inancil ase afar value though proft or os’ and ‘avalable-forsle financial asses is recognized in the rohan lors account when the Compan’ ght to receive paymentsis established, Equty instruments that do not nave a quoted market price in an active market and whose far values cannot be elisbly measured or determined ate stated ats. 5.223 Measurement . "hvalable forsale nancial assets’ and financial aeets at fait value trough prot ols ate subsequently measured at fi value whereas held to matuy ance assets’ and loans and reeiabes’ are subsequently measured at amorted cost using te effective interest metho Gains or loses arising fom changes inthe flr valu of the “nancial assets a fa value through proto los" ae recogrized inthe rohit ang loss accountin the pero ia which ey ate. ‘Changes in the fir value of ‘avaiabie-for-sale nancial assets ate cecognzd in other comprehensive income. When franca assets ‘asied as avalae-frsale ar sold or impaired, the aecumulatve fa value adjustments recognized in othe: comprehensive come tithe time of posal orimgarrent are charged tothe prof and loss acount. (34)& querta rextive mits uimitep [NOTES TO ANO FORMING PART OF THE THE FINANCIAL STATEMENTS Forte year ended une 30, 20:7, 5.224 Impalement ‘The Company assesses atthe end ofeach reporting period whether thre i objective evidence that a financial asset or group of Financial assets Is impaired, & financial asset ora group of financial assets is impaired there is objective evidence of impairment as result of ‘one or more events that occurred after the intial recognition ofthe asset (‘loss event) and that loss event (or events) hasan impact ‘on the estimated future cash lows of the Financial asset or group of nancial assets that can be roibly estimated. If such evidence ‘dentied to exist, the said financial asset or group of financial assets are Impaired and animpaitment loss i recognized inthe profit and Joss account for the amount by which the assets’ carrying amount exceed their recoverable amount, Impairment loses of equity Instruments, once recognized, are not reverse through the raft and loss account 5.2255 Offsetting of nancial assets and liabilities Financial assets and abilities are offset andthe net amounts reported inthe balance sheet when ther ka legelly enforceable right to set the cecgnized amounts and ther isan intention to settle either on a net bass, or to realze the ast and settle the bility simultaneously, 5.22.6 Derivative nancial instruments The Company designates derivative nancial instrument as either fai value hedge or cash low hedge, 2) Cash flow Hedges ‘cash ow hedge represents hedges of 2 highly probable fovecast transaction, The effective portion of changes inthe fir value of derivatives that are designated and qualify as cash low hedges ae racagnzedin other comprehensive income. The gan or los eating to the netfective portion Is recognize immediately inthe profit and loss account. Amounts accumulited in equity are reclassified tothe profit and oss account in the periods in which the hedged itern wl affect the profit and loss account ») Fair value hedge and other non-trading derivatives Fal value hedge represents hedges ofthe fi value of recognized assets or lilies ra frm commitment. Changesin the flr value of derivate that are designated and quality as far value hedges are cecorded in the profit and lose account, together with any changes in the fair value of the hedged asset or lability that ae attributable to the hedged risk. The carrying value ofthe hedged item is adjusted accord gly. When a derivative financial instrument isnot designated in a qualifying hedge relationship it is accountes for as held for twang and accordnay i categorized as fancil asset a ar value through profit or lose 5.22.7 Financial ables ‘These are initily recognized at cost, which isthe fair value ofthe consideration expected to be paid. All irancal lables are recognized a the time when the Company becomes a party tothe contractual arovisions of the obliging instrument/ contract. ‘financial ibility i derecognized when the obligation under thelial is discharged, cancelled or expired. Where an exiting financial labilty s replaced by another from the same lender on substantially ferent terms, ofthe tems of an exstng ably are substantially modified, such an exchange or modification is treated as a derecognitng of the eriginal ablty and the recognition of 2 new habit, and the difference in respectve carving amounts i recognized in the prof and loss account Earnings per share basic and diluted ‘The Company presents basic and dlisted earnings per share (EPS) for its ordinary shares, Basic EPS is calculated by diving the profit or oss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year Dilated EPS is determined by adjusting he proto: loss attributable to ordinary shareholders of the Company and the weighted average numberof ordinary shares outstanding forthe effects of ll diutve potential ordinary shares 5.22.9 Related party transactions {AN transactions with related partis are carried out by the Company at arms’ length price using the method presrived under the Companies Ordnance 1988 [Nature of the related party relationship as well as information about the transactions and outstanding balances are disclosed in the relevant notes to the financial statements 30" June, 201730" June, 2016 Note Rupees Rupees {6 PROPERTY, PLANT AND EQUIPMENT. Operating fixed assets 61 501,197,768 5,760,725,20 Capital work in progress at cost 62 2.498 10 2,498,910 [see STRAT (35)Ge QUETTA TEXTE NitLLS LiMiTED& queria textite mits ured ea 7 sae =o 7 “a ohm Gamat nana Jah Sse met be a)& Quetta TEXTILE MILLS LIMITED {6.41.1 Depreciation for the year hasbeen allocated asunder: 30" June, 2017 30" June, 2016 Note Rupees Rupees Cost of sales - spinning 30 169,745,866 179,719,066 Cost of sales weaving 30 57.926,247 60,811,302 RISA HOO Cost of sales power plant a3. yengas3 41 588,433, ‘Administrative expenses 2 5.157.843 581,935 es emo 6.1.2 Had there been no revaluation the related fiques of land, building and plant and machinery as at June 30,2017 would have been as follows 30" June, 2017 30" une, 2016, Note Rupees Rupees Freehold Land 7575201 75,782248 Leasehold 44152,099 452,099, Bling on fechold land BuLai7o1s 327,491,596 Baling on leasehold tnd 91260737 96,063,934 Bulcing on feehold land [Grid 35473241 37,287,822 Labour colony on freehold land 26271008 27,683,889 sour colony on leasehold land 23402829 24,634,557 Prant and machinery 2874396068 3.016,493,076, Plant and machinery [Gai 103,667,991 109,124096 Ee (38)& auetta TEXtiLe Mitts LIMITED [NOTES To ANO FORMING PART OF THE THE FINANCIAL STATEMENTS. Forte yar ended une 30,2017 62 Captatworkin progress at cost Computer sofware “The movement in Copitl workin proses 3 follows: falance a the besnning ofthe year Adon during the yea: Pant and machinery Offce equipment “Transfer to operating ued asset: Pant and machinery offer equipment Furntur a ature Balance a the endothe year 7 LONG TERM oePosiTs Lesnetapanies n STORES, SPaRes AND LOOSE TOOLS Sploning Spares an accessories Olan tres No temo stores, spares andloose ool ix pledged as secury a 3 reporting Ste 9 STOCK IN TRADE Splning Raw mateal-inhand Finished gods Weaving aw material Vioreprocess Finished goods (39) 30° une, 2017 2888910 2498910 9500 229038 agnais ssis00 950.657 soaisne 70208516, aarar6992 syszoais are 20 one, 2037 455,208217 157073456 33,510.20 297287393 486,393,537 Ts 234910 tara 283939 ae 1999390 6520475 aaa 1.04567 ae 98365.358 1,680.402335 aa 102 582 1896173 ss7asian,& querra TeXTILe MILLS LIMITED 2 as ‘The aying vale of Pledge stock sR 110,614.24 /- une 30, 2016: 907 50,50)), Local debts unsere Held for trong Inte companies na 10085 soosts Revaluation reserve for investment 3,006 12505 Details areas under | tareave Name of secures Nocofshares || cont - |_ adjustments Dewan Salman ire Unies 10000 35,200 54H Total-2005.2016 es Taste oie rupees Rupees {LOANS AND ADVANCES [Advances - considered good ropa executes 1.265955 997473 surpiers, 2268051 15,322,945. Collector of Customs for nar and Export 110486 su10.86 Margin with Banks agaist Guarantees $747,030 s747030 Aevanea for Reservation Cotrat m2 semasn ae 26n "TRADE DEPOSITS AND SHORT TERM PREPAYMENT Lete of cede 1.687.736 0% une, 201730" June, 2016 INCOME TAX AND SALES TAX REFUNDABLE Income toxretundable a 40207355 65195508 Stes tox rehunbie sagarz217 135497. Income tax refundable Opening sssi9sce | 44500797 szesuni2——s0,51989 Provion fr taxation cent year (s2anaasr) are.) ‘ASH AND BANK BALANCES. Wah banks on currents secounts 665.54 5.905.649 “tert depos acount (108) asa saaniea | | soa2.se7 ‘ving secourt a2 s0285, wan soossa7s 60,216,648 oshin hand 231768 eos Sas ae (40)& versa texte mis uimiteo NOTES TO AND FORMING PART OF THE THE FINANCIAL STATEMENTS Forthe yearended ine 30,2017 35.1 ffecove rates of profit on TO, during he yer, ranging rom 3.75% 10.115. % (ue 30,2016: 375% to 4) pr annum. The ratty perio ofthe TDR inane yar ram he date of gal sue, Ths depots under bar's ena ecuy of bank guarantee sues on behalf ofthe Company 152 _efecve rates of pot on depos acount, during the yur, ranging rom 3.53 Yto 3.365% [une 30, 2016 4 06 per 16 SSUED, SUBSCRIBED ANO PAID UP CAPITAL ne, 2017 30 ne, 2016 Number otsharer 1.200000 4.200000 Ordinary shares of fs. 10 exch alloted for onsideration padin cas 19875000 9875000. rdinaryshaes of Rs. 10 each alloted as eh nares 1525000 _1925,000. Ordinary shares of. 10 68h used a Bonus share ie, LE 30" une, 2017 Rupees 12,000.00 98,750,000, 13,250.00 mone 30" une, 2036 Rupees 12.000 .000 $8,780.000 18250000 eer 16: The company ha sive 9875000 Ordinary hares nth at of 216 sate for every 00 ordinary Shares a exe pie of Re 75/= pe share having premium of 66/= per share. optaltexrve one term ean rom directors anothers wa Revere Unaoaraneated prot Rupees “1200 115,000,000 160,726.70 upecs 118,000,000 765751,200 (275402516) iy eas 37 Owing the yeu, compony has revised terms and condtons of long term loan agreement wth decors and athers. According leans payable on duction of company. compliance with TR2 Oates an 25,2016 aed by neste of Chartered Accountant of akan (C22, long ter lan fom drectrs and thesis now become the par of ey, 18 SURPLUS OW REVALUATION OF PROPERTY, PLANT AND EQUIPMENT Balance a t uly, ‘8: Supls on ealuabon oan ulng and plant & machinery Less: Transferred rom surplus on revaluation of Property Plant Exuipment on account ofncrementl depection Lose beter ax Bafonce sat, Recognition af deferred ta nity due tothe transfer of incremental ‘epreisbon to equty fom surplus on rvaton losing baance evaluation surplus of Rs. 1.273.133577/. 2000.676933 (54,703600) 1.931,528931 ppaseaon mira zonasrse7 (5937517 (26321537 21009676533, (26323557) isa ‘oily 0, 2084 and August 08, 2014, futher revauation was made ofthe Land, Building, Labour Colony, Grid tation and Plant & + “nschinary, by M/s Joseph Lobo (Pvt) i, rgietered Values and Surveyor, onthe Bas of make vale which resuted met (On March 31, 2009, further revaluation was made ofthe Land, uling nd Labour Clon, by Af Asacntes Pt Le regiered surveyors and valuation constants, on the basis ofmarket value which ested in nt evluaton cups Re, 622,057 82) 183 On November 13,2006 and December 28,2006, further revaluation was made ofthe Land, Bling and Plant and Machinery, by ‘sf Associates (Pt) Lt, regstered surveyors and valuation constants, onthe basis of market value an realzable values wien restedin et cevluaon surplus of. 154291,391/ (41)G& overt textive minis umiTed » ss2 93 asa (on May 27,2008 an un 2,200, Lan was cevalved by MK Assoc (Pt) registered surveyors and vluaton consults, onthe bss of markt vale and relaable vs which reuted in net evaluation surplus amounting eR, 339,798,763/ (nly 1, 2003, revaluation was made ofthe ld, buding and machinery, by MYR Associates (it) i, rested ureyars snd vation corauants on the bas of markt valve which resutein ne easton surplus of Rs, 20750 76 20" upe,2017 30" une, 2016 Note Rupees Rupees Loan from banking companies-scured ‘ark Bak Pakston ited asa 8900 99,40 asa ar ited UF] 2 771500 160,715,000 Habib Bank uted] 193 asees208 257900678 Accrued interest HBLATF] 183 wes79 ati Back united [CF sa e125.77 azo Meezon Ban inte (a Mui ws saoosses 58605663, Nation! Bank of akan (LTA Froron Markup 196 eissooo | — National Bank of ats TF] 197 Saracen 63,438,000 Navona! Bako Paktan ATF) 138 164,907,100 ecru teret NBP-TF asa 1.696065 Ser an Limite (CF 339 4aigero00 «81967000 Les: Curent mat shown under een ables ss20 fesisepsen) 120,206.48) aT _ autable Mortgage of 388M) ovr propery a Plot No. 7.4/4, Sardar bs Road, Of far Ab Road, GulberV, Lahore, Focbty snout was Re 5 (i ot 8 prot rate OF GM © 28%, Loan i payable 6 quarterly instalments commencing From sayene. Fist pan posau hypohecaton charge overstock and receialas for PKR 130 Millon, fst palais charge over plant and hatha he company fr PKR 331330 Maio nartage charge ove nd and bulking for PAR 75 Mion fit amount was Teze43 ton a a mart rate of 3 months Kibr pl OO per anrum oan payable within $year cuding 3 year race perod.Quatry instalment commencing rom lune OL, 2017. Lost yor company had estuctunng agreement wth bank to restrcture outstanding princi of Rs, 27.99 millon of iferent te of Apr 10,2016. The fais pyable in 29 instalments starting fom Apr 22,2016. The faity secures -spsinst Fst par pass Equitable Morenge an hypotnecton ea) car for PRR 20 Mllon, on present nd future fed ase facies uote Don dated cheques and persona guarantees of dretrs ofthe com ny. The markup rate a 3 month ibr pe ann. Arve Intcet ite payable in caval quae installments stating from Sep 12023. froven matkp for CF and FIM FeltyAcrved rm fn 16 to 22 Api 2016 to be cubed in trouen mark goybl In 4 eqs tuartry statment commen om 1 sept 202. Ranking charge of. 96 Mon plant & machinery ofthe company, Fae amount was RS. 72 (A) arf rate of yea! Go? Trak Sut ate Lon repayable in 6 month inaliments commending rom 3/1/34 Dotng the peso comsony has entered int retructtng agreement with Bank or conversion of fron ark of RF, TF, cash ‘inane and FM tates Yo fre 30, 2036 nt Ter Loan Fait The facityspyabein 8 equal quarter instalments of 2.78 milion eae stating tom Sep 30, 2022 on 39, 2028. The fact secured as menone in note 197 ‘etal acy amount une LIF facity wos Rs. 63.46 milion payable in 20 quarterly instalment fom Sep 20, 2015 to un 20, 2010. During the period, cOMpany entered Ino restructuring agreement wth Bank slong with mendan in note 198, and terrace over aut Ro 12 688 ion with serty mentonedin 198. Markuprate is SBPH3% burng the period, company has enterad ino restuciring agreement with Bank for conversion of Cede), FIM and Overdue oto June 20, 206 no Term Loan Fact, The faitypavele im 24 quater nsalimnts start from Sep 30, 2016, The tarhup rte 3 marth lor 1% ad wl be payable in 8 quater intlient starting from Sep 30,2022. The facts secured psi Fa Pant as charge on Land, lat and Machinery oR. 310 millon pat FR. 628 millon charg aleady eld by bank Fis pan poss hypthecaton charge ove curent aset for PRR 3.34 Milo, ranking charg ovr Fd Aes of he company for PAR 64 Mion. Facity amount was 483,967 Mion at markup ate of 3 months Kbor per anumosn spate win 6 yearsinclding 1 year grace period, arte insalicents commencing fom Api OM, 017, Curent maturity inelues Re, 89.203 raillon in respect of verde. (42)& versa Texte MILs LIMITED For the ear ended ne 302017 20 20a 202 a na 2 2a 22 23 na 2s 30" June, 2017 30" June, 2016 Note Rupees Rupees REDEEMABLE CAPITAL- SUKUK Diminishing musharaka Sukuk certificate 653,337,683 663,337,643, Less: Current portion shown under current liabilities 203 (472,658,820) (319,970,058) 30679823 343,367,585 ‘The company has restructured the entire facility maturing on March 20, 2020. The company had issued privately placed Sukuk Cerstieates of Rs, 1,385,000,000 divided into 277,000 certificates of Rs. 5,000 each. The significant terms and conditions and security of the Sukuk / certificates areas follows: Tenure ‘years yt Date of ist installment Maren 31,2010 * March 31,2010 Date of ast instalment Morch20,2020 Maré) 20,2020, Rate of return per annum GMKIBOR + 275% GM KIBOR 1.75% Convertble/non convertible NNonCanveribie Non Conese Redeemable/perpetual Fedosrble Redeemable security First Pari Passu charge of Rs. 1.646 blion (lune 30, 2026: Rs 1.846 bilin) on al xed assets ofthe company. Current maturity includes Rs, 319.831 milion in respect of overdue, LOAN FROM DIRECTORS AND OTHERS - SUBORDINATED Unsecured-Opening Due to directors 109,378,610 109,378,610 Due to others aa 51,347,860 51,347,860 —aTae ATO TOT ATO ess: Transfer to Equity wa __ (160,726,470) Closing = ECONELRICF During the year, the terms and conditions of loan agreement has been revised and mentioned in note 17.1. Further, the loan upto Rs, 148,47,000/- (une 30, 2016: Rs. 148,457,000/-}\s subordinated to bank loans 30" june,2017 30" June, 2016 Note Rupees Rupees LUABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE Payable within one year 18,569,118, 12,395,598 Payable attr ane year but not more than five years 43382,959 10.187,745, 22912077 22,583,343 Less: deferred finance cost (3,365,061) (3,372,138), sas a0 ‘Ags: security deposit 7 6,797,725 6,530,475 ess: Current potion shown under current liabilities (15,012,838) (8,507,497) Present value of minimum lease payments 0731 902, 15 834,18 ‘The Company has entered into lease agreement/liarah for Plant & Machinery and Vehicles with various leasing companies and financial institutions on monthly, quarterly and half yeatly payment bass. The lease contains bargain purchase option ‘The leat i secured by personal guarantees of two directors and security deposit equivalent to 0.1% to 10% of the facility amount Implicit rate of return on lease varies ranging from 8.40 %to 10.25. % (June 30, 2016: 8.75% to 11.81%) pa. “Taxes, ceplts and maintenance, insurance and other cost relating tothe lease assets are borne by the Company, Current maturity includes Rs, 7035 milion in respect of overdue. (43)& versa rextite MILs LiMiTED NOTES To ANO FORMING PART OFTHE THE FINANCIAL STATEMENTS 23 2a 233 234 235 DEFERRED ABILITIES Deferred taxation Staff retirement benefits -gratuty Deferred taxation Deferred tax credits / (debits) arising in respect of: ‘Taxable/{Deductible) temporary differences (deferred tax liabilities) Deferred Tax Revaluation surplus Deferred debit arising in respect of provisions, tax losses and refunds Deferred debit ar ingin respect of provisions, tax losses and refunds pening valance Closing balance of deferred tax ability reversal of difered tax ability Staff retirement benefits - gratuity ‘Movement in the net liability recognized inthe Balance sheet Opening net lability {Expense for the year in profit and loss account Remeasurement recognized in other comprehensive income Benefits paid during the year Closing net lability Expense forthe year in profit and loss account current service cost Interest cost Historical information 2017 2016 Present value of defined benefit obligation 107,462,067 _ 105,040,220 General description Note aaa 233 232 ee 30° june, 2017 Rupees 621,838,083 107,462,067 30070 314,600,825 524,437,288 (217,200,030) arse 678,347,311 (621,838,083) na 105,040,220 28,615,608 4,927,792 ese (31,121,549) 7 22,583,850 6,031,754 30" June, 2016 Rupees 678,347,311, 105,040,220 as 130,465,622 547,883,689 10,773,648 rar 654,294,707 (678,347,311) Taos soe 80,021,986 28,789,371 30,397,739 739,209,056 (34,168,836), saa 22,437,675, 5,351,596 “The scheme provides for terminal benefits forall ofits permanent employees who attain the minimum qualifying period. Annual charges is made using the actuarial technique of Projected Unit Credit Method. (44)& Vera TEXTILE MILLS LIMITED NOTES TO AND FORMING PART OF THE THE FINANCIAL STATEMENTS For the yearended ne 30,2017 30" june, 201730" June, 2016 Note Rupees Rupees 23.7 Principal actuarial assumption Following ae afew important actuarial assumption used in the valuation. * % Discount rate 785 333 Expected rate of increase in salary 7.00 700 23.8 Expected gratuity expenses for the year ending June 30,2027 works out Rs. 30,380,078/: 24 TRADE AND OTHER PAVABLES Trade Creators 642,579.501 978,549,405 Accrued lables, 188,165,859 240,819,536 ‘Workers’ profit participation fund 2a 2.550 Unclaimed dividend 36467 36.467 Others 4,090,157 3,605,241 rasa 303 20 24.1 Workers’ profit participation fund Balance atthe beginning ofthe year 2.550 373066 Allocation for the year lee Interest on fund utilized in the Companys business raza _ Te 8 Less: Payments during the year (2,350) (175516) Balance at the end of the year ammeee Ty, 24.2.1. Interest on workers profit participation fund has been provided @ Nil June 30, 2016: Nit) per annum. 25 ACCRUED INTEREST / MARK-UP Acerued interest / mark-up on secured “long term finances 43,765,788 15,599,007 - redeemable capital Sukuk 112,628,432 60,118.79 short term borrowings 402,838,260 280,612,274 ae Seas 26 SHORT TERM BORROWINGS Secured - Banking companies Finances under mark-up arrangement 26.1 2707,715613 2.981,349,984 Unsecured Book overdraft 262 37,468,078 37,457,340 2,745,183,687 __3,018,807,324 26.1 Aggregate facilites amounting to Rs, 2.740 billion (June 30, 2016: Rs. 3.192 billion) were available to the Company from banking companies. These are secured against hypothecation charge and pledge of stock in trade, book debts, plant & machinery, export bill under collection, These loans carry mark up atthe rate ranging from 6 36% to 9.61% Lune 30, 2016: 6.74% to 9.9%) per annum payable quarterly and on the maturity dates. The above facilities are expiring on various dates and renewablé annually. 26.2 This represents cheques issued in excess of bank balance. Since there was no banking fait, this has been grouped under Book overdrat 27, LOAN FROM DIRECTORS AND OTHERS Unsecured Due ta directors 20,103,546 5,691,972 ue to others 5,713,082 5,724,396 ass a ae 27.4 These are non mark up beating and unsecured, These are renewable and due on various dates within one year (45)& uerta rextite Mitts umired For the earended ne 30,2017 Fy 281 m2 283 284 25 286 ‘CONTINGENCIES AND COMMITMENTS. Contingencies Guarantees issued by banks on behalf of the Company 259,690,796 __157,255,285 Company has fled a suit No. 202 of 2013 against Enshaa NLC Development (Pvt) Limited before the Honourable Sindh High Covrt, Sindh seeking declarations, possession, permanent injunction and/or recession and damage in respect of the reservation contract followed by an agreement executed between parties whereby the defendants are liable to construct the project. The mater is pending for hearing and opinion of the legal advisor of the company is favourable and there is no tkethood of unfavourable ‘outcome or any potential loss 5 The Company has filed petition under W.P.No. 2420 of 2011 against the recovery of Electricity Duty on self generation of electricity and obtained stay order from Honourable Lahore High Court and opinion of the legal advisor of the company is favourable and there is no likelihood of unfavourable outcome or any potential loss. ‘The Company has filed petition under Sult No. 1718 of 2015 against Gas infrastructure Development Cess (GIDC) Act. 2015 on Gas Bill has been challenged and fled suit in Honourable Karach' High Court and opinion of the legal advisor of the company is favourable and there is no likelihood of unfavourable outcame or any potential os. ‘The Company has filed petition under W.P.No. 4665 of 2016 against Gas Trait Difference recovery on OGRA decision on Gas Bills has been challenged and obtained stay order from Honourable Lahore High Court and opinion ofthe legal advisor ofthe company is favourable and there is no likelihood of unfavourable outcome or any potential los. Commitments civil work e Confirmed leter of credit in respect of: raw material Stores and spares 7,201,908 7,203,508 (48)& auerta textite Mis umiteo [NOTES TO AND FORMING PART OFTHE THE FINANCIAL STATEMENTS For the year ene une 30,2017 29 sates Waste Raw Cotton & mater Processing Salestax 30 cosTOr sales aw materi coneumed | asso3sst 592250755 3.7ag66180 — 2.466,100387| aenoa7ae4 9573221 751686680 — Loaa.240569, ° é saz77as ——26588,626 7563607 —_75009,002 eee es 27asi2aso__182.022.773 woosssu —TSTTTTaBTE —AssosoL Tex — 5a01971455 . (99,592,470) ee Te Taare es Salaries, wages and benefits 302 Fuel, ower and water ent, rates ad ates Repals and maintenance 203 Entertainment expenses Communication expenses other expenses Depreciation expenses Workin process ‘Opening stock losing stock ena ost of goods manufactured Costof Raw cotton & materi Cost of other mate sold Fished goods ‘Opening belance ‘Goods purenase: Other materia purchase vam Purchase Clesing stock (a7) Soiszacane 203376700 sharnise — 2esan626 "sae? ——_7B0n002 araainass aan. sama Saeaea7 - (ons02470 EEE aT +30" June, 2017-30" June, 2016 pees pees asieoioss — Ts saan a Freight 1an2e 459.574 aaszan|| 15.0022 saas.7s6|] 24,119,686, g Commision 263893 279431 10327086] 1608381 sa290959|] aea27a12 = Clearing and forwarding agerao0||___s1a6326||_uszezi2||__ 698,018, 5 10591612 |__ 1386048 | niagsee | 17ana708 1575747294309 27092596 ———_—60.755485| Ontoca sles Freight i Sasa | asses ‘Tyas || ens erase || aos Commision L 4,640 526]|__ 008272 255460 ||_s4s6.672 4396790||_19.266983, 3600299 24336055 7354 15071222 ass _39.400,277 Temes _ aes masse ses moms ae(gs) & quer textive Mitts uMiteD [NOTES 70 ANO FORMING PART OFTHE THE FINANCIAL STATEMENTS For the yar ended ne 30,2017 45 ADMINISTRATIVE EXPENSES. Director's remuneration Salaries and benefits Printing and stationery Traveling and conveyance Lega and professional charges ‘ushers emuneration Entertainment Electric, g8s and water charges Foes and subscription Repairs and maintenance Depreciation Spinning weaving ____ bower Generation company 30 une, 2017 «30Phe, 2016 —=30™ une, 2017 30 une, 2016 20 jne, 2017 30" ne 2016-30 une 2017 30 une 2016 fupees Rupees fupees Rupees rupees rupees Rupees rupees 6,198,179 341.26 Larose 2073481, 1670838 5484807 . 221835 RTSaIS 5.255226 779003 marisa 20,444 938, ‘09,682 1.802.083 492377 11035,323 11002,059 2897365 1,756,682 1291816 17/380 8597 274,082 2.237,793 53156,273, 200053 41225,107 2552888 6,381,380, 6782.91 623,790 10.28 143.210 ‘3301 ‘72000 11483,600, 1,436,196 2,105,488, ania eri9s1 : 177430 17430 “sas 34 130.812, 105,784 69,680 7 ‘56218 2300492 132,096 ‘997,186 316500 606,295 158,596, 11603,782 1.422,084 4,551,239 337890 942,879 1.759.964 2498118, 2122.07 2.366095 504250 1,438,166 21626557 3808,261, 102,530 92913 190578 56474 993,208 149,387 4.167.622 2869,777 930.210 1.73289 187.83 581,936 BETS sass TT Tse riser sae eae eso)& Quetta TEXTILe MILLS LIMITED [NOTES YO AND FORMING PART OF THETHE FINANCIAL STATEMENTS . o forthe year ended ne 20,2017 20" june, 201730" June, 2016, ote Rupees Rupees {46 TRANSACTIONS WITH RELATED PARTIES ‘The related parties comprises diectors and Key management personnel, Amounts due to related pares are shown inthe relevant notes tothe financial statements. Transacbons with relate paris ae dslosed below: Nature of transaction Relationship Loan receive/pai) -net Key management persone! 14400420 2.927.565 Salaries and other benefits Key management personnel 73970838 saseso7 The company continues 1 have a policy whereby all transactions with related parts are entered at arm's length price using admissible valuation method and expenses are charged on stu bas 447. PLANT CAPACITY AND PRODUCTION : spinning “ota no of srindesinstalies 73488 ras8 Total n of rotors installed 1108 1108 Average no of spindles worked 67302 ese9 ‘Average no of rotors worked 505 97 Numbers of shift worked per day 3 a Caacity of industrial unit ater conversion into 20/s count - GS. 29,436,125 29,438,125 ‘Actual production after conversion into 20/s count KGS 19,751,558 v7 345,288 itis dificult vo describe the production capacity in texte industry since ft Auctuates widely depending upon vrious factors suchas count of he yarn Spun spindles speed twist per inch ana ow materi used te Weaving fated capaceyconveredinto 60 picks Square meters 0763418 ro763418 ‘Actua procution converted to 60 picks Square meters 42,196 992 42922,51 Total qumbers af looms worked 234 234 Number of shite worked per cay 3 3 itis citcut to ceseribe the production capacity in tex industry since it fucuates widely depending upon various factors such as production of fabri speed of foams pcs per inch and rw material used ec ower Pant Installed capacity mw 362 362 Installed capacity per nour per day wt aman avn Prime apacty aw 20 20 Stand by Maw 362 162 Instaliedpeme capac per hour per day wn 1752 1752 ‘etual generated per nour per day ais ae ne Reason fr shor Fallif Any ‘he installed capaci lcluses the standby generation which sony used ase of emergency shutdown of the prime engines, due to Unavaabty of ‘48 SUBSEQUENT EVENTS, “There sn subsequent event aftr balance sheet date 49 CORRESPONDING FIGURES corresponding figures have been rearranged and reciassied, wherever necessary, fo the purpose of better presentation and comparison, the eects of wien ae not materia, 50 NUMBER OF EMPLOYEES a0 june, 201730" June, 2016 ‘otal numberof employees sat 2828 aare -average number of employees worked during the year 2910 3216 Si GENERAL ‘The tures have been ound oto the eae Rupee 52. ATE OF AUTHORIZATION FOR SSUE These anc steers were authored fr su byte Boat of rectors othe Company on October 02.2012 pine wo ‘YaRIQ ORAL ‘OMER KHALID Keach hier execute rector Dated: October 09,2017 (59)& guetta Textive mis uimiteD Form of Proxy Wwe _ being a ‘Member of Tata Textile Mills Limited, holder of ‘Ordinary Share(s) as per Register Folio No. hereby Appoint Mc , having CNIC No. _— ‘as my/our proxy in my/our absence to attend and vote for me/us, and on my/our behalf at the Annual General Meeting of the company to be held on October 31, 2017 and at any adjournment thereof. Signed this __ day of Signature across Rs.5 Revenue Stamp Witness 1 witness 2 Signature Signature - Name Name cui nice - Notes: 11 This instrument appointing a proxy shall bein writing under the hand of the appointer or his attorney duly authorizes In witing o ifthe appointer isa corporation either under the common sea or under the hand ofan official or attorney 0 authorized, No person shall be appointed a5 proxy who isnot member of the company qualified to vote except that a corporation being a member may appoint a person who s not a member. 2, Theinstrument appointing a proxy and the power of attorney or ether authority if any, under which tis signed or @ notarally certified copy ofthat power of authority, shall be deposited a the ofie ofthe Company not les than 48 (fort eight) hours before the time for holding the meeting at which the person named in the instrument proposes to vote, and in defalt the instrument ofa proxy shall not be teeated a val 3, COC Shareholders or thee Proxies should bring ther orginal CNICS or Passport along with the Participant's 1D Number and thei Account Number to faclitate thei identification. Detail procedure is gven in Notes to the Notice of AGM.& quer TEXTILE MILLs LIMITED Cue) ound Ke cone EB ha €£9:00642017 7731.3." . elle ev Gta GIS AL LGPL LIBEL Loe ZL Phun ti Sun APS eH alii btm Be sale 2h 201T on b ste wie ebehiy pirate LLL Af. VES fe ih ubye FE Pre vilg, (und rgunkyercenSig -2 besa MtS bret BLES A pe ber ILE oe OL te rem EP ISLET) MIAN ASIST LP) eet eae WP saPe srr Mehl cht MSSS -3 verte iL cocm 71K poured lee (62)& uerta Texte Milis UMITED (64)etta Textile Mills Limited Head Office: Nadi House, paves Good ie 1 Chuncion Road, Kare Karachi-74000, Pakistan e+ nl I sales@@quetagroup.com Web: www. )ettogroup.co