es QUETTA QUETTA TEXTILE MILLS LIMITED 47th ANNUAL REPORT 2016& guerra texte mitis uimiteo Annual Report 2016 For The Year Ended June 30,2016 CONTENTS ‘Company Information Di Vision & Mission Statements 3 Notice of Annual General Meeting 4 Chairman’s Review 7 5 Director’s Report to the Members: 8 Key Operating & Financial Data 13 Pattern of Shareholding 14 ‘Statement of Compliance with the Code of Corporate Governance : 16) Review Report to the Members on Statement of Compliance with the Code of Corporate 19 Governance ‘Auditor's Report to the Members i 20 Balance Sheet 21 Profit and Loss Accounts 22 Statement of Comprehensive Income 23 Statement of Changes in Equity 24 Cash Flow Statement 25 Notes to the Financial Statements 32 Form of Proxy 61 Form of Proxy (Urdu) 62& aquerta textive Mis uMiTeD COMPANY INFORMATION ‘BOARD OF DIRECTORS Me. Tari labal (Chief Executive) Me. Asim Khalid Mr. Omer Khalig Mr. Tauir Tariq Mrs. Saima Asim Mes. Tabbasuen Tar Mrz Sadat Khalid Mi, Major Rt. Muhammed Saeed ‘AUDIT COMMITTEE Cchaleman Mr. Major Rtd. Muhammad Saced Member Mrs. Tabbasum Tariq Member Mrs. Sadaf Khalid HUMAN RESOURCE & REMUNERATION ‘COMMITTEE Chairman Mr. Asim Kh Member ‘Mes. Tabbasum Tariq Member Mes. Sadaf Khalid (CHIEF FINANCIAL OFFICER. ‘Mr. Omer Khalid COMPANY SECRETARY ‘Mr. Muhammad Sohrab Ghani ‘uprrors ‘Mushtag and Company Chartered Accountants BANKERS Allied Bank Limited ‘AL Baraka Bank (Paklstan) Limited ‘Bank Alfalah Limited ‘Bur) Bank Umited Bank Islami (Pakistan) Limited Dubal Islamic Bank (Pakistan) Limited Faysal Bank Limited HBL Bank Limited Habib Metro Bank Limited ‘Meezan Bank Limited National Bank of Pakistan Soneri Bank Linvted ‘Sik Bank Limited ‘Standard Chartered Bank (Pakistan) Limited Summit Bank Limited United Bank Limited REGISTERED OFFICE ‘Nadir House (Ground Floor) [LL Chundrigar Road, Karachi ius P/38.B/4, SATE, Kote, 49 KLM, Lahore, Multan Road, Bhai Pheru WEB SITE ADDRESS ‘wwew.quettagroup.com, @& Querra Textile MILs UMITED 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 @ 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 Company 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 shareholders & investors, a reliable source of high quality yarns & fabrics at affordable prices to its customers all over the world, a secure place of work to its employees & an ethical partner to its business association. 3)& ouetta texte Mis uimited NOTICE OF MEETING Notice Is hereby given that the 53rd Annua! General Meeting of the Shareholders of Quetta Textile Malls LUmited wil be held on Monday, October 31, 2016 at 09.00 A.M. at the registered office of the Company at Nadir House (Ground Floor, I. Chundrigar Road, Karachi to transact the folowing business: Ordinary Business: 1. Toeonfirm the minutes of the 52nd General Mecting held on October33, 2015. 2. Toreceive, consider anc approve the reportof the Directors, Auditors and Audited Accounts of ‘the Company forthe year ended June 30,2016. 3. To appoint Aucltors for the year 2016-2017 and fix their remuneration. The Board has recommended, as suggested by Audi committee, the appointment of M/s Mushtaq & Co, Chartered Accountant, the retiring auditors and being eligble to offer themselves for re- ‘appointment, special Busines : 4. To consider, and if thought fit, to pass the folowing resolution as an Ordinary Resolution “RESOLVED that placing of the Companys Quartely Account on ks website instead of transmitting the same to Its shareholders by post, be and is hereby approved.” 5. Totransectary other ordinary business or bustiess withthe permission ofthe Chairmen. By order ofthe Board of Directors MUHAMMAD SOHRAS. GHANI Karachi ‘Company secretary Dated: October 09, 2016 Notes: 1: A member entitled to attend the Annual General Meating Ic entitiad to appoint 3 prony to attend and vote Instead of him her. Proxies inorder to be valid must be received at the rezistered ofie of the Company 448 Hours before meeting commences. 2, For the purpose of entitlement of dividend, the Register of the’ members of the Company will remain closed at registered office from October 25,2016 to October 31,2016 (both days inclusive) and dividend approved wil be paid to such members wnose name appear in the Company's register of memiber at the close of business on October 24, 2016. 43, Guidelines fer COC Account Holders for personal atendance: 3) Incase offndividvals, the account holders or sub account holders and / or the person whose securities ‘ae In group account and their registration details are uploaded as per Regulations, shall authenticate his /her identity by showing his/her original NIC st the time of attending the meetng, i) In ease of corporate entity, the Board of Directors’ resolution / power of a:torney with specimen signature of the nominee shall be produced (urless k has been provided earier) atthe Ue! of meeting 4. Shareholders are required to promptly notify at registored office of the Company of any charge in their address & ‘Statement Under Section 160 of the Companies Ordinance, 1984 (Item 04 of the Agenda) ‘The Securites and Exchange Commission of Pakisten vide its circular No 19 dated April 14, 2024 has allowed listed Companies to place ther quarterly accounts on their website instead of sending the same to e2ch shareholder by pos, subject to fulfilment of afew conditions including seeking of consent of the members. ‘This will bea convenient and cost effective way forthe company to transmit its quarterly accounts and ensure ‘quick ané eazy atceas for the members to such acecunts ofthe Company. : @& eta rextite Mitts Limited QUETTA TEXTILE MILLS LIMITED CHIEF EXECUTIVE'S REVIEW Dear Shareholders: It is 2 pleasure to present the results of the company for the year onded June 30, 2016. Your company made a loss before taxof Rs, 1,724.815 bilion as compared to Rs. 323.527 milion last yer. Textile Outlook: Pakistan's textile industry is still going through one of the toughest periods in decades, This ersis has bean. experienced before also, But not to this scale and tenor, The global reduction in demand of yarns and fabrics has hit the global textile industry really hard. The country's exports have declined by around 18% in June '2026, a compared ta lune ‘2015. Around 25% of the textile industry in Punjab has already closed ‘down, with an average of one textile mill closing down daily. Hundreds of jobs have bean laid off due to fall In industrial production. This is not the only causé of concern. Serious external, intemal and local issues sill continue to plazue the spinning & weaving industry: Raw Cotton: ‘© There has been a significant decrease in sowing and cultivating areas of cotton which has created a shortfall of 2-4 milion bales. The consumption of cotton is more than production requirement, which has made cotton prices high vis-3-vie yarn prices. This has resulted in cotton being procured at import prices. The government has imposed duties on imported cotton, thus making cotton more expensive; Slowdown in demand for cotton yarns and fabrics in the international markets, particularly China; Consumption of imported cotton is causing QTML cash losses, Due to this, the company has incurred a pre-tax loss and a reduction in turnover that has created liquidity constraints for the company and jeopardized its ability to pay off its financial obligations on time; + There is an influx of foreign textile goods being imported and sald in the domestic market. India is stil a major player in the textile sector. There is availablity of cheap yarns from India. Indian yarns are around 109%~12% cheaper to import in Pakistan from Incla. Rival countries are supporting their textile industry with subsidies and ineantives. This has rendered the Pakistani textile industry as un- competite in the international mark’ Local Threats: ‘© Sudcen and sherp appreciation of PKR Vs. US$ by around 10%. Our neighboring countries have devalued their currencies between 3%~10% within '2013—'2015, thereby making it dificult for Pakistani textile industry to compate with them; Imposition of GIDC by the federal government; Increase in minimum wages/salaries of labour. Cost of labour is highest in Pakistan, as compares to India, Bangladesh, China and Vietnam, This has increased cost of doing business: ‘= No export incentives to downstream industry (spinning & weaving), 25 compared to incentives {given to the Indian and Vietnam textile Industry; = ‘Increase in energy costs due to increase in gas/electric tari rates. Increase in gas & electric load, shedding Electricity tariff is tho highast in Pakietan 2¢ compared to Incia, Bangladesh, China and Vietnam; ‘+ More than 25% Working Capital has been stuck-up in the refund regime creating severe cash flow ‘crunch. 8 Way Forward: ©)QUETTA TEXTILE MILLS LIMITED of QML. To replenish working capital, we proposed to banks for release of cotton from pledge by converting the existing Cash Finance Fecilty Into Term Loan (long-term). Progress and tetms of re- structuring and re-arrangement with below-mentioned banks are as under: Faysal Bank Limited (Re-structured): Faysal Bank Limited has re-structured the Cash Finance (Pledge) Facility of Rs.200 (M] on below.mentioned lines: Soneri Bonk Limited (Re-structured) FOL released the pledged stocks valuing Rs. 200 (M); ‘QTM committed upfront payment of 10% under Cash Finance [Pledze) Faclity: BL granted 1-year Grace Perit FBL termed out balance 80% in 4-yeare with equal quertery installments; Frozen mark-up and accumulated merk-up will be paid curing 6 year in 4 quartery instalments at taikend; FBL reduced mark-up rates from K 4 2.5% to K + 0.5% on Term Loan and Running Finance (ypothecation) Facilites, ‘Soneti Bank Limited re-structured the Cash Finance (Pledge) Facility of -400(M) on below-mentioned lines: Soneri Bank Limited reloased the pledged stocks valuing Rs. 400 (Mt); TNL committed payment of two quarter mark-upsin arrears; Sonerl Bank Limited granted 1-year Grace Period; Soneri Bank Limited termed out the faclity in S-years equal quarterly installments: Frozen mark-up will be paid during 6th year in 4 quarterly installments at talend, Soneri Bank Limited reduced mark-up rates from K +2.5% to k+0% on Term Loan Facility. ‘Habib Bank Limited (Re-structured): Habib Bank Limited re-tructured the Cash Finance (Pledge) Faclity of s.300 (M) on below-mentioned lines: vaeye HOL releesed the pledged stocks valuing Rs 300 (M); QTL committed upfront 10% of Cash Finance (Plede Faclity; HBL granted 1-year Grace Period; HBL termed out balance 90% in 4:yeare equal quarterly installments; Frozen mark-up and accumulated mark-up wil be paid during 6" year in 4 quarterly installments at talend; HBL reduced maricup rates from K+ 25% to K + 0% on Term Loan and Running Finance (Hypothecation) Facies Allied Bank limited (Under Process of Re-structuring): ‘llled Bank Limited and QTMIL are working on dally basis on re-structuring, and we expect that AGL. will take farther 25-30 days for the finalization and implementation of re-structuring of Cash Finance (Pledge) Facility of Rs.250 (M), We expect that the same will also be re-structured on below-mentioned lines: ABL wil release pledged Stocks valuing of Rs. 250 (WM): - QTM will commit for up-front payment at 0% of Cach Finance (Pledge) Facility, ABL will grant 1-yeor Grace Period ‘ABL will term out balance $0%5 in 5-years equal quarterly installment Frozen mark-up and accumulated mark-up will be paid during 7th and 8th year in 8 quarterly installments at tall-end; ABL will also reduce the mark up rates from K + 2.596to K +026 0n Term Loan and Running Finance (Hypothecation) Factity. (@)& overra texte nats ured National Bank of Pakistan (Under Process of Re-structuring): National Bank of Pakistan and QTML are working on daily basis on re-structuring, and we expect that NBP will take further 20-15 days for the finalization end implementation of re-structuring of Cash Finance (Pledge] Facility of Rs.170 (M). We expect that’the same will also be re-structured on below-mentioned lines: NBP will release pledged stocks valuing Rs.170 (M); QML will commit for up-front payment at 10% of Cash Finance (Pledge) Facility; NBP will grant 1-year Grace Period: NBP will term out balance 90% into a 5-years equal quarterly installments; Frozen markup and accumulated mark-up will be paid during 7th and 8" year in & quarterly installments at tail-end; NBP will also reduce mark-up rates from K + 2.5% to K + 0% on Term Loan and Running Finance (Hypothecation) Facility. vaune During our various meetings and correspondences with the above-mentioned banks, QTML’s management has discussed in detail various available options. It is the consensus that QTML’s management must Operate the project at 90% plus production capacity to generate adequate cash flows to run the company and to be in a position at a later date to fulfil all our financial obligations. Hence, we approached barks and submitted our request for re-structuring and re-arrangement of our Cash Finance (pledge) facility and reduction of markup rates, twill not be out of place to mantion that all banks facilitated QTML during this time of erisis by conversion of Cash Finance (Pledge) Facilities into a Term Loan and by reducing the mark up rates on various facilities From gradually release of cotton and yarns from banks to replenish working capital, QTML's operations have now started to take- off. From 40% production efficiency, the company has now achieved 80% Production efficiency and production by utilizing the idle capacity. The management is determined to achieve the efficiency at 90% plus by utilizing the existing available capacity, QTML will then focus on re-structuring of its Sukuk debt of around Rs. 680 (M) with new terms to further ninimize cash outflows of the company. QTML will approach all the Sukuk holding banks/DFis to re- structure its Sukuk debts on new terms The textile industry is the backbona of the country providing valuable foreign exchange and employment opportunities. Its the largest manufacturing sector which contributes 60% on foreign exchange earnings. The severe conditions in Pakistan's spinning and weaving sectors are expected to continue well into the next financial year, unless the govemment steas forward with corrective measures with regards to, its policies for the industry, The government must realize the situation and provide relief through reduced power tariff, export refinance on yarns and fabrics, removal of GIDC and timely Income Tax/Sales Tax refunds. In the end, | would like to thank all the financial institutions for their continued support and confidence they have shown towerds the company. To the workers, staff and officers, | extend my gratitude for their dedication and honesty. % ”)& aquerta textive watts ured DIRECTORS’ REPORT TO THE MEMBERS Dear Shareholders, “The Directors of Quetta Textile Mills Limited feo! pleasure In presenting audited eccounts end annual report of the Company for the year ended June 30, 2026 along with Auditor's Report thereon |: Financtal Results During the yeas, the Company suffered net lozs of Re. 1.724.815 millon after charging costs, experses and provisions for te year as compared to previous year’s net loss of Rs. 323.527 Financial Results 2016 | 2015 {Rupees in 000) Pretax (lass) forthe year (724815) G2 sia aration 9,380 (68.887) (loss) after taxation (715.035) jas2.o13) ‘Other Comprehensive Loss (e727) 15.438) ‘Accumplated Profit Brought Forward 7,285,250. 759.285, Less: Dividend Paid Nil il (457.463) 7190833, Transfer rom Surplus on Revaluation of Property 82.261, 94.017 Plant & Equipment ‘Accumulated (oss)/profit Carried Forward (375202) 1.785.250 The Company has suffered huge losses due to import of raw materials, ané the rates of stocks (raw cotton, vam and grey fabric) considerably reduced by 35%, hence faced inventory losses on stocks that caused liquidity constraints during financial year 2015-15. The Company also faced operational breakdowns due to short of working eapital which dropped the production operational efficiency and restricted to the extent 440% of avallable capacities. The QTMIL also suffered losses due to slowdown in demand for cotton yarns ‘and fatrcs in the international markets, sudden and sharp decline of PKR Vs. US$ by around 10%, more than 25% Working Capital has been stuck-up in the refund regime creating severe cash flow crunch. ‘ATMs exports shrank to USS 15.11 (NM), a5 compared to USS $4. (M) inthe ast year, and the basic reason fox tis decline i the reduetin in demand of yarns an fabrics, which has intensified competition and has creoted a price war emong spinners ané weavers the prices of imported cotton dropped abruptly in this financial yeer. QIN has had purciase imported cotton at much higher prices due tosh price contracts There iso Costs. Revenue mismatch that hos resuted in ogeratinal sues and losses, Consumption of imported cottonis causing QTM cash losses. The severe conditions In Palistans sping ard weaving sectors are expected to continue well nto the next financial year, unless the government steps forward with corrective measures with regards to is polices forthe industry. The government must realize the stuaton and provide rele through reduced power tari, export refinance on yams and fabs, removal of GIDC and timely Income Fax/Sales Tax refunds. In order to llth gap of working coptal, the management approached tothe banks for Restuturing and Rearrangement of Saning Facities and banks supported the QIML dung this tme of need and cris, and inmedotal converted Short Term - Cath Finance (Pledg) Fait Into Term Loan with repayments 6 to years and reduced the sprea from 2.505 to Omsere, (6)& wea textile Mis umiteo Reservation in Review Report to the Members The review report to the members for the year carries the qualification opinion on the matter specified belo quote the composition of company’s Board of Directors were not in accordance with the requirement of Cade of Corporate Governance, Unquote Election of the directors to be held on January 2017 in which the matter above referred will be discussed and it is decided that the restructuring of Board of Directors with Five Non- Executive Directors and three Executive Directors is to be approved in upcoming election of directors. ‘Quote the company did not disseminste the information as regards to the restructuring of loan and default in repayment of loan to SECP and Stock Exchange Unquote ‘Subsequently the management sent information along with facility offer letters to Stock Exchange under cz to SECP. Some clauses of offered facility letters remained under negotiations hence prolonged the signing that why the information delayed. Financial Management Cath flow Management ‘The Company has en effective Cash Flow Management system in Place whereby cash inflows and out flows is projected on regular basis. Working Capital requirements are planned to be financed through internal cash generation 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 managament focus on a strategy to mitigate risk factors. Credit Risk All financial assets of the company except cash in hand are subject to crecit risk. The company believes that it is not exposed to major concentration of credit risk. Exposure is managed through application of credit limits to its customers secured by and on the bace of past experiance, 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 thatit is prudent to provide Provision of doubt full debts. 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 liquidity risk through internal ‘cash generation and committed credit ines with financial insttutions.. Interest Rate Risk ‘Majority of the interest rate exposure arises from short and long term borrowing from banks. Therefore, 3 change in interest ratas at the reporting date would not effect the profit and loss accounts. ©& Quetta reeie MILs LIMITED 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 on its imports of raw material and Plant and Machinery. ¢ Production Facilities Performance of our production facilities was excellent with unprecedented levels of cutput. Our team continued to Improve efficiencias through harmonized efforts, eliminating wastage and avoidance of shutdowns on numerous occasions. The Company is determined to continue its focus on maximum capacity Utilization for sustained proftability 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, 2015, due to slowdown in demand for cotton yarn particularly in China, sudden and sharp appreciation of PKR against USS by around 10% and persistence energy crises in Punjab and Sindh. Auditors The Present Auditors M/s. Mushtaq and Company, Chartered Accountants retired and being eligiole offer themselves far ra-appointment. Safety, Health and Environment We meintain our commitment to higher standard of Safety, Health and Environment. All our employees 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 at the mill whereby ‘our aim is to ensure that all supervizors are algo safety managers and are fully cognizant of all aspects of safety training. Due these controls and with the blessing of ALMighty Allah no major accidents or incidents took place at the mill, 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 fre our plant and our procuction lines are installed with pollutant trapping and suppression systems to control dust particles and other emissions. Corporate Social Responsibility Your Company ie fully aware of its corporate social responsibility and has been working pdsitivaly to raise the educational, health and environmental standards of the Country in general end local communities in particular, Your Company is extensively supporting various educational and health projects. Human Resource and Remuneration Committee Human Resource planning and management is one of the essential matters and is at the spotight at the senior management level. The Company has a Human Resource and Remuneration Committee that guides In the section evaluation, compensation and succession planning of key management personnel. ts responsibility entails recommending improvement in the company's human resource policies and procedures and their periodic roview. The’ Committee keeps abreast with industrias *Best Practices" and tensures to dis-cuss and implement this as and when the Situation arises. (10)& aquerta textite mits umiren Pattern of Share Holding. The pattern of shareholding as on June 30, 2016is annexed to this report. Summary of Financial Data Financial data for last six years in summarized form is annexed. Board of Directors Meetings A total of ten meetings of the Board of Directors were held during 12 months’ period from July 01, 2015 to June 30, 2016. Attendance at the Board Meetings by each Director is as follows: Name of Directors Number of Meetings Attended Mr. Tariq Iqbal pnteao Mr. Asim Khalid 08. Mc. Omer Khalid 08, Mr. Tauair Tariq 08, Mrs. Saima Asim o7 Mrs. Tabbasum Tariq 08 Mrs. Sadaf Khalid 06 Mr. Farhan Saleem 08 Leave of absence was granted to the directors who could not attend some of the meetings. During the period under review there was no trading of the Company's share by the Chief Executive, Chiaf 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 Audit Committee. The name of its members is given in the company profile. The Committee meets at least once every quarter and assists the Board if fulfling its oversight responsibilities. A total of four Board Aucit Committee meetings were held during 12 months’ period from July 01, 205 to June 30, 2016, Attendance at the Board Audit Committee Meetings by each Director / membersis as fellow: Name of Directors Number of Meetings Attended Mrs. Tabbasum Tariq 04 Mrs. Sadaf Khalid os Mr. Farhan Saleem oF 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 ‘ume to Improve the system and pressures. Within the frame work of term of reference determined by board of directors, the Aucit Committee, among other things, will recommend appointment of external auditors and review of periodical statements. a)& Quetta TEXTILE MILLS UMITED Corporate Governance “The Board of Directors hereby declares that for the year endad June 30, 2016: 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. 4) The International Financial Reporting Standards (IFRS), as applicable in Pakistan, have been followed in preparation of financial statements and any departure there from has been adequately disclosed and explained. fe) There is no significant doubt upon the Company's ability to continue as 2 going concern. f) The system of internal control is sound in design and has been effectively implemented and monitored. ) Key operating and financial data for the last six years in summarized from is annexed fh) Gutstanding duties, statutory charges and taxes if any, have been adequately disclosed in the annexed audited financial statements. Conclusion ‘The Directors place on record their appreciation to the officers, members of the staff and workers for their efforts and hard work. By order of the Board of Directors TARIQIQBAL Chief Executive Dated: October 07, 2016 (12)& aquertatextite Mies umireo ‘OPERATING DATA Sitec pe. 00 Coste Goods Sola 00 Gross Pott Bs. "00" Proft/(Loss) BeforeTaxation fe, "00" Proft/(Loss) AferTaxztion Rs, 00" FINANCIAL DATA Equity Balance v0 Property, Plant& Equipment Rs. UOT CorentAssers 000" CurrentUabiites "000 PROFTABLTY RATIOS Gross Prott margin * ‘Operating Profit Margin % Net Profithergin % uquiomyranos Current Ratio Tae Quick ran0 Tires ACTITY /TURNOVER RATIOS Deysin Receivables avs ‘Accounts RecelvablesTumover Times lnvestory Turover Times Tocal assess tumover simes Return on Total Assets % Return on equity % Levenacenarios: LongTarmDebts to Equity Times Total bts te equity Times LongTermDebisto Total Assets Times Total Debts to Total Assets Times Equity to Total Assets Times Intarest Coverage Ratio Times Eaming/ (Loss) Per Share Rs Breakup Value of snare w/o fs Revaluation Surplus Breakup Value of shave with fs Revaluation Surplus cath Dividend * KEY OPERATING AND FINANCIAL DATA mis ms zm mu 5200152 10.175,76 s2201,05 12,967979 1,142005, 429,717 9562202 1106471 14528549 967003 (1159555) sIus7 1236708 185,40 LaTLOR7 (a7zgais) (323527) gs. 6728215758 (175.85) (m0) me e773 S258 ZION 2A8ROIS _2OK9R 2756 STORE GOSS Sonus SUSE7M s.caxsor e582 Sos SURES 4aogIs 4.025705, 5058190 SAS3355 SSSL78 47oRIaT 4.85528 (19) 68S (i ee re (2s 205 Lat oss 087 oss ome om ost an os ee as ma Be MS RAL we) es) 3D amt 02 0s ss 15 (01) cy oom Om 0s) of on am 45 oman ast sr BS 3082 um om 08 07 om on os 02st 0m = oma Gs) @2) 05 a (aus) (as) sat as 200 ess 19391855) 178 mma maT 27.90 nt ne ne Fe Nit (43) asos8 01998 283590 773858 S755, 5.133307 43.901 assis 1599 53s 09 ax& aquersa textile Mitts umited PATTERN OF SHAREHOLDING ( FORM - 4) Patter of holding ofthe shares hold by the shareholders as at 20-16-2016 Is glven below Noo Teal Sherehl oe ‘Share Held 108 From Tee 700 Shares 217 65 From wt To 500 Shares 38073 2a From sol To 1000 Shares gaa 31 From oot To 5000 Shaves ayai2 10 From 5001 To 19.00 shares 75,085 2 From 10001 To 3500 Shares 25454 2 From 1s00l To 2000 Shares, 36000 2 From 20001 To 25000 Shares 4672 2 From 25001 To 34.000 Shares, sage 2 From aoa. To 35000 Shares 61.078 3 From aqot To 45,000 Shares 125,820 2 From soot To ‘55,000 shares 104,082 1 From ws To 110.000 Shares 106,000 1 From 25001 To 130000 Shares 130,000 1 From 190001 To 195000 shares 150,358 1 From moo To 215,000 Shares, 214653 1 From 25001 To 250,00 Shares 285,350 1 From woo To 235,000 Shares 252,002 1 From s1001 To 315,000 Shares 313,157 1 From m501 To. 330,000 Shares, 327,683 1 From oe) 335,000 Shares so4272 1 From 350001 To 355,00 Shares 352,000 1 From 365001 To 370,000 Shares 359,000 i From 435001 To 440,000 Shares 997,208 1 From 445001,, To 450,000 shares, 9,205 2 From 48001 To 490,000 Shares, 195,358 1 From se001 To $65,000 Shares $60,013 1 From S601 To 570,00 shares 565,059 1 From sot To 610,00 Shares 607,308 1 From eqo01 To £35,000 Shares eases 1 From 615001 To 950,000 Shares 649,759 1 From 00 To 655,000 Shares 553,728 1 From 675001 To 2,000 shares 575.486 1 From ‘ego To 635,000 shares 698,353 1 From 785,001 To 730,000 Shares 785,615 1 From 44020,001 To 1.025,000 Shares 1923717, 1 From 1250001___To 14,255,000 __ shares 1,252,937, 25 Total 73,000,000 Calagortes of Shareholders Woof Share Parentage Sharehoders Held individuals 2et_-12918,715 a3 Investment Corpération of Patistan 1 750 200 Insurance Companies 1 52,082 00 JointStock Companies 5 15,83 an Financial Institutions 3 ao3it oe Others = 3 1,798 - oor Tot 275 13,000.00 700.00 (14)& aquerta textite mitts ured DETAIL OF PATTERN OF SHAREHOLDING AS PER REQUIREMENT OF CODE OF CORPORATE GOVERNANCE AAS AT 30TH JUNE 2010 Tor Name of shareholders sree] share held. [percentage 1 AssociaTes companies ma 2 wratcr Investment Corporation of Pakistan 1 250 0.00 3. Directors CEO thelr Spouse and Minor Childarn ° ‘Mr. Tariq iqbal ( Director & CEO) ‘Mr. Asim Khalid (Director) ‘Mr. Omer Khalid (Director) Mas. Siena Asin (Director) 8.700 oo ies, Sadat Khali (oirecor) 3,000 owe Mas, TabbasumTarig (Director) 04353 534 te. Taugeer Tang (director) 21983 96 Me. Muhammad Saeed (Director) S21 o.c0 ws. Tahmina Taugeer ( w/o Me. Taugeer Tara) 465,205 388 4 Executve rm 5 Public Sector Companies & Corporations: . Nil 6 Bank Development Finance Instution 4 Non-Banking Finance Institution, Insurance Companlos, Modarabas & Mutual Fund State Life Insurance Corporation of Pakistan 52,062, 0.40, Natenal Industes Co-perte Finance Corpation Ltd 4 0.00 National Bank of Pakistan 3037 07 7 Sharoholdereocing 10% or More nm 8 Individuals (253 8,655,111 66.58 9 ters 8 Tee us [ Teal 776_[ _taevo.c00] 109.00 (15)& queria Textie MILs LiMiTED . All the directors STATEMENT OF COMPLIANCE WITH THE BEST PRACTICES OF THE CODE OF CORPORATE GOVERNANCE FOR THE YEAR ENDED JUNE 30, 2016 This statement is being presented to comply with the Code of Corporate Governance (""Code”) contained in Regulation 35 of the Listing Regulation of the Pakistan Stock Exchange Limited for purpose of estabishing a framework of gcod corporate governance, whereby a listed company Is managed in compliance with best practices of corporate governance. ‘The company has applied the principles contained in the Code in the following manner: ‘The company encourages representation of independent non-executive directors and directors representing ‘minority interest on its board of directors. At present the board includes: Category Names Independent Director ‘Mr. Major Rtd: Muhammad Saeed Executive Director = Me. Tarigiebal Mr._Asim Khalid ‘Me._Omer Khalid Mr. Taugi Tariq rs. Salm Asim ‘Non-Executive Director (Mrs. Tabbasum Tariq (Mes. Sadaf Khalid The independent director meets the criteria of independent under clause 5.19.1. b) of the CCG. ‘The directors have confirmed that nane of the cirector: of the company are serving at a diractor in more than seven listed companies, including this company. the company are registered as taxpayers and none of them has defaulted in payments of ‘any loan to a banking company, 2 DFl or an NBFlor, being a member of stock exchange, has been declared as 3 defaulter by that stock exchange. No casual vacancy has occurred on the Board during the year under review, The Company has prepared 2 “Code of Conduct” and has ensured that appropriate steps are taken to disseminate It throughout the Company along with ts supporting policies and procedures. The Board has developed 2 vision/mission statement, overall corporate strategy and significant policies of the Compary prepared by the Management. A complete record of particulars of significant policies along with the dates on which they were approved oramended nas been maintained. All the powers of the Board have been duly exercised and the Board has taken decisions on material transactions, Including appointment and determination of remuneration and terms and conditions of employment of the Chief Executive (CEO) and other executive directors have been taken by the Board/shareholders. : s The meetings of the Board were presided over by the Chairman and, in his absence, bya director lected by the Board for this purpose and the Board met once In every quarter. During the year four meetings of Board of Directors was held. Written notices of the Board meetings, along with agenda and working papers, were circulated at least seven days before the meetings. The minutes of the meeting were appropriately recorded and cireuleted. (16)& aquerta textite mitts umired 1. In accordance with the criteria specified on clause 5.19.7 of CCG, certain Directars of the Company are exempted from the requirement of directore' waining program at prescribed by the Code of Corporate: Govemance and the rest ofthe Directors are trained. All the Directors are fully conversant wth thelr duties ard ‘responsibilities, they were further apprised through orientation courses during the yea. 2, The Board has approved the appointment of Chief Financial Officer (CFO), Company Sccrotary and Head of Internal Audit eariey, inclicing their remuneration and terme and conditions of employment. However, Ao new appointment has boon made during the year. 3. The Director's Report for ths year has been prepared in compliance with the requirements of the CCG ard fully described the salient matters required ta be disclosed. 4, The CEO and CFO duly endorsed the financial statements of the company before approval of the board. 5. The directors, CEO and executives do not hold any interest in the shares of the company other than that isclosed in the pattern of shareholding. 5. 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, al of them non-executive directors {and the chairman of the committee! 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 a required by the CCS. The terms of relerence of the committee have been {formed and advised to the committee for compliane, 9. The board has formed a Human Resource and Remuneration Committee. it comprizes three members, of whom twoare non-executive directors and the chairmar-ef the committee is an executive director, 10, The Board nas set-up an effective intemal audt function within the Company. 11. The statutory auditors of the company have confirmed that they have been given a satisfactory rating under the quality control review programmes of the Institute of Chartered Accountants of Pakstan, that they ate not _sware of any instances where sheres of the company are held by any ofthe partners of the firm, their spouses ‘and minor ehiléren and that the firm and all its partners are compliant with International Federation of accountants (IFAC) guidelines on Code of ethics as adonted by the Institute of Chartered Accountants of Pakistan (ICAP). 12. The statutory auditors or the persons associated with them have not been appointed to provide cther services ‘exceptin accordance with the lsting regulations and the auditors have confirmed that they have observed IFAC Buidelines in tis regard, 13. The “Closed Period", prior tothe announcement of interim and firal results, and business cecsions, which may ‘materially affect the market price of company’s securities, was determined and intimated to directors, ‘employees and stock exchanges. 14. Materialiprice sensitive information has beon disseminated among all market perticipants at ance through Stock Exchange. 7)& uetta rextite Mitts Limited 1. 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. 2. We confirm that all other material principles contained in the CCG have been complied with. By order of the Board of Directors da TARIQ IQBAL Chief Executive Karad Dated: October 07, 2016 (18)& guerra Texrive mitts Limited 3 MUSHTAQ & CO. =A CHARTERED ACCOUNTANTS leading edge alliance 407, Commerce Centre, Hasrat Mohani Road, Karachi. Tel: 32538521-4 Fay: 32636843 MOEN 2 SONY » Goatees Boneh of: O18 ty Toners Nan Bold abr. Ts STARTS Pe SESS Eat Ase: mustan torastotral com 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, 2016 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 Governance is that of the Board of Directors of the Company. Our responsibility is to review, to the extent where such compliance can be objectively verified, whether the statement of compliance reflects the status of the Company's compliance with the provisions of the Cede 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 varicus documents prepared by the Company to comply with the Cade. As part of our audit of financial statements we are required to obtain an understanding of the accounting end 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's 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 provail in arm's length transactions and trensactions which are not executed at arm’s 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, except for the note No. 1 & 22 of non-compliances, nothing has come to our attention which causes us to believe that the statement of compliance dots 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, 2036. Further, we highlight below instance(s) of non-compliances with the requiremant(s) of the Code ae reflected in the note/peragraph reference where itis steted in the statement of Compliance: ‘+ As disclosed in point No. 1 of the statement, the composition of company’s Board of Directors were not in accordance with the requirement of Code of Corporate Governance. ‘+ As disclosed in point No. 22 of the statement, the company did not disseminate the information as regards to the restructuring of loan and default in repayment of loan to SECP and Stock Exchange: MUSHTAQ & COMPANY KARACHI: . Chartered Accountants Date: October 07,2016 ‘ Engagement Partner: Mushtaq Ahmed Vohra FCA, (19)& qversa texte mits ured MUSHTAQ & CO. l nt Sir comer cove han ofan Te sear om leading edge alliance anche oy tones og ne. a: 707 Fo 7 ferme ey eee sal Adress: mushtag_vohrapheuralicon AUDITORS REPORT TO THE MEMBERS We have audited the annexed Balance Sheet of Quetta Textile Mills Limited as at June 30, 2016 and the related profit and loss account, statement of comprehensive income, cash flow statomont, and statement of changes in ‘equity together with the notes forming part thereof, forthe 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. Its the responsibilty of the company’s manegement to establish and maintain 2 system of internal control, and prepare and present the abeve sal statements in conformity with the approved accounting standards and the requirements ofthe companies Ordinance, 1984. Our responsi isto express an opinion on these statements taredon 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 2 test bais, 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; (2) nour opinion, proper books of accounts have been kept by the company as required by the Companies Ordinance, 1984; (8) inour pinion; (the Balance sheet and profit ahd 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 ara further in accordance with accounting policies consistently applied; (il) the expenditure incurred during the year was forthe purpose of the company's business; and (it) the business conducted, investments made and the expenditure incurred during the year were in accordance with the objects of the company; (2) in our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet. profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in equity together with the notes forming part thereof conform with approved accounting standards as applicable in Pakistan, and, give the information requlrec 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 lune 30, 2016 and of the loss, comprehensive loss, its cash flows and charges in equity forthe year then ended and . : (4) nour opinion, no Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980). MUSHTAQ & COMPANY KARACH! . Chartered Accountants Date: October 07,2016 : Engagement Partner: Mushtaq Anmed Vohra FCA (20)& ouerva textie mits united BALANCE SHEET ASAT JUNE30, 2016 30 hine,2036 308 June, 205 NON CURRENT ASSETS ‘rope lant nd enloment . 5 [Sram cmmera] {ong erm ep 7 | “easiest || sna Smiosez00t _eom37—072 connor assets ‘Stores, ad ote tos 2 [meaaier | —onarame Stock inte 2 | asisrsoe|| asco Trace dates, 10 | “kosceass | 334oenes7 the franca asets a ‘asost|| aaveces team and aroneee | esasoais|) syewae “ase depots and short tam prepayments a | asssoe|| “Sane other rcchtcs % = || suse incor tar dale txreindale as | anoris|) aneere7 Caan araaneolinces as |_“‘cxeoraer||_“exzss ee] Sarssoness _ seegaza ana EE ee quer ano uasines SHARE CAPITAL AND RESERVES Authoded capital 22000000 (ine 30, 2025: 20.00.00) orinary shares of RD each so¢ooom — :20000000 18.000.000 lune 3, 2015: 15000010 eeforce share a 13 exch Ho;m9p09 _1s900,000 Lume come sean edt and plu capta a [~aag0p0|| Booman eserves a |_aasiesss||_2cszoon Susiasss 2.200052 Sepa on tution propeny plantandequoment 19 ASL 95264 ese Te NOW cuRReNTUABUmES . tong tem frances 20 [sine] senna Feaeeraie cpt = Suk 2 | 348357505|| aseaz ae Leantrom recs and ches -sberated x | inean|| ores LUsbises spun ests ject france lense 2 | “ssmasss|| “reese! Detere ables mw |_ musa ||_mereas 221470196 e489. 54 comment unsumes Trade and ter pyaies 2s [Ramona oe] | Lonaa Accrued inerest/ mareup 26 | 356,329,561 || "s87570,708| Sentersorowigs a | spansorsz|| a2sarzs.aee| Lcanfrom dec ad thers za | “auaisaee|| aasnere Caent potion ong tem rans 20 | iresesea|] — easisav0| Redeemable cial Sek x1 | aypress|| amoetace| Liste agsine ase jet toranceleate x |_“esenn||_ “rons Soss,soio1- sas3ssae ‘CONTINGENCIES AND COMMENTS » RT TT The anesed nts frm 1853 fom a Iesralpar ef tet franci steer ‘ua a0A ONER HALO cht execute Director ober 07,2016, (21)& Quetta TEXTILE MILs LimiTED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2016 30" June, 2016 30" June, 2015 Note Rupees Rupees Sales 30 5,280,152,958 10,175,475,651 Cost of sales 31 (6,439,717,661) _(9,562,201,718) Gross (loss) / profit (159,564,703) «613,273,933 Distribution cost, 32 (100,163,113)}} (295,175,078) Administrative expenses 33 (55,992,850]} | (52,071,027) Other operating expenses 3a (701,114}| | (834,025) Finance cost 3s |__(a11,559,765)| | __ (613,521,108) (568,416,841) (961,601,238) (Loss) from operations (727,981,544) (348,327,305). Other income 36 3,166,261 24,800,052 (Loss) before taxation . ~(0,724,815,283) (323,527,253) Taxation 37 9,380,163 (68,486,914) (Loss) after taxation ~(0,715,435,120) ___ (392,014,167) (Loss) per share - basic and diluted 38 (231.96) (30.15) The annexed notes from 1 to 53 form an integral part of these financial statements. hie en TARIQ IQBAL rs OMER KHALID Chief Executive Director’ Karachi Dated: October 07, 2016 (22)& aquerta Textie mits uimiteo ‘STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED JUNE 30, 2016 30" June, 2016 30 June, 2015 Note Rupees (Loss) after taxation (1,715,435,120) ‘Other comprehensive income Items that may not be reclassified subsequently to profit and loss: Loss on remeasurement of staff retirement benefits (30,397,739) (9,523,908) Impact of deferred tax 3,119,538 1,091,746 ‘Other comprehensive loss for the year (27,278,201) (8,438,163) Total comprehensive(loss)/income for the year (3,742,733,321) (400,452,330) Tne annexed notes frem 4 to 53 form an integral part of these financial statements. TARIQ IQBAL . OMER KHALID Chief Executive Director Karachi: Dated: October 07, 2016 (23) Rupees (392,014,167)(v2) & Quetta Texte MILs LIMITED. ‘STATEMENT OF CHANGES It EQUITY FOR THE YEAR ENDED JUNE 30, 2016 [ ncaa 7 |Share Capital Ynapacehrtsted Total equity, |Share premium | |Capital reserve) |General reserve|| Sub total Profit [Ez Rupees 5 Balance as at July 02, 2014 130,000.00 651,750,000 1200 115,000,000 756,751,200 1,581,284,606 2,488,036,006 Transfer from surplus on revaluation of : Es zs saamrars 94,417,475, property, plant and equipment (incremental depreciation) - net of deferred tax Total comprehensive income for the |_ year ended sune 30, 2015 Profit after taxation forthe year - - * > =f Gs2piaenl| (92,014.67) Other comprehensive loss for the year _ eal 3 ~ ||“ (eaae,163)|_— (@438.163) - = ae 5 = (490,452,330) (400,452:330) Balance asat June 30,2015 139,000,000, 653,750,000 7200. 195,060,000" 766 751,200, _1,285240,551, 2,382, 000851 Balance asat July 02, 2015 139,009,000 651,750,000 4,209 115,000,600 766,751,200 1,285,240,6512,182,000.851 Transfer from surphs on, reveluntion of = : : 82,261,055 82,261,055, propery, plant and equipment (incremental deprecation) - not of daferrd tax Total comprehensive loss for the |. year ended June 30,2016 toss after taxation forthe year - | = = = — [arisass, 120] (715495120) ‘Other comprehensive loss for the year L e = es 5 (27,278,201) (27,278,201) * 3 £ 3 (1,742,743,321)(1,742,713,821) falanee a8 at June 30,2016 0,000,000, 651,750)000 Tato. —135/000,000_ 765,751,200 (375,202,615) 521,548,505 ‘The annexed notes from 1 to 53 foun an Integral pat of these financial statements. TARIQIOBAL Chief Executive Karachi Dated: October 07,2016 ya omeR KHAUD Director& versa textite mitts umited ‘CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2016 30 June, 2016 30" June, 2015 Note Rupees Rupees ‘CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations 39 764,588,314 871,773,914 Long term loans and deposits (36,057,457)] (175,375) Interest paid (243,200,812)|| (584,968,057) Gratuity paid (34,168,836)|| (56,376,820) Workers! profit participation fund paid |” (a76,516)|| (12,087,940) Taxes paid (21,185,807)|| (91,796,787) (334,789,428) (745,374,979) Cash flows from operating activities 429,798,887 126,398,935 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment [ (16,675,081)]| (54,267,286) Other financial assets 41,867,802 1,219,713 Proceeds from disposal of property, plant and equipment 6,900,000 || 22,166,704 Dividend received 11,027 257,802 Cash (used in) investing activities (7,896,252) (30,623,067) ‘CASH FLOWS FROM FINANCING ACTIVITIES Long term finances 373,553,268 | [ (29,217,844) Redeemable capital - Sukuk Q (24,180,645)| | (161,330,039) Liabilities against assets subject to finance lease (4.031,184)| | (14,684,762) Short term borrowings (1,278,922,540)] | 143,606,091 Loans from directors & others 2,927,566 1,019,672 Dividend paid (417,828)| (85,896)| (442,031,362) (60,686,038) Net increase/{decrease) in cash and cash equivalents (20,128,727) 35,089,830 Cash and cash equivalent at the beginning of the year 81,225,888 46,136,058 Cash and cash equivalent at the end of the year 16 61,097,161 81,225,888 The annexed notes from 1 to 53 form an integral part of these financial statements a aa TARIQ IQBAL (OMER KHALID Chief Executive Director Karachi: Dated: October 07, 2016 (25)& versa Textite Miuis umiTeD NOTES To AND FORMING PART OF THE THE RNANCIAL STATEMENTS forthe year ended kine 30,2016 {LA The compinywasiecoperated in Pakistan aa publiclinted Company in lansary 2, 870 under the Companies Ac 913 (Now the Companies Orhance. 188 The share ofthe Cirpary ae sted on Paistan tok Exchange. The egsteres oc ofthe coma inate dt groind foot NdirHoss Chanda ras Karach 1L2 The conpuny'siircplly engage manuacurng anc s8es0f yar nd labic Me production facitesare ected Kot fn the prone of Sich and «9K Multan Load hal, DStncRasT In he prowace of Pun. 21. statement empllance ‘Thnsefirandal sttemantchave heen pezaed in accordance withthe requrefnetsof The ComariesOrinance 58 [the Ovinaye) and the spproved seountng standares at splible te Pkittan, Approved accountng antics ompnse of such inertial Financial Reporing under (FS) saved bythe Intemasonal Accounting Sanda Board asare need under The Corpanes Ornate, 184 provslens of ane drecivs sued under The Companies Ordinance, 198, Wherever the requrerents of The Companies O-inarce, 14 or srectes lsd by Secures as [xchange Cemmision of Pakistan afer withthe requrenentsof FS, the reculrements of The Conganies Ornance, ‘ok andthereguamerteof the taid recive hl pal ‘het iandalstterentshave been presured underthe Nstrcl ost convention excep for measurement oteewan final sets and farsa liabite a far salue 2nd recogsion of employee benettsatpesert value. 23. Function andpresentaion ren ‘hese financial statements ate aerated In Fakita Fupees whirls as the Company's funcional cereny. All Sinandalinfrmaton resented in Pakisacl Rupees has beer reunde of tothe nearstrupee 3. ACCOUNTING ESTINATES JUDGMENTS ANDFINANGAAL 3K MANAGEMENT. The estimates / ements and szccnas szunptons used Inthe prepuaton of the fancal statements are based on Netorial experience another fare. incuding exes ef fture evens tht are believed tobe reasonable ure the ‘eumatanes, he Comoany rakes erates nd surumetonsconcaming th uti The rcuting eens estimates wil by éetttvon, seldom equal the ated etl enh. The exinatesandaszumptonsthethave asin diol using? ‘teil adjustment te he crying amour of ets ad labiteswibinthenextfirandal eer ae flows: Fropery,sattandeaspment The Company reviewstne atesot deprecision, etal ves, res! values anc values of aes fr pone Impairment on an Znnual basis Ary chin he estate In ie yaa righ Test Be cating amounts of he respective ema ef per, fart and equipment with aconessancing ete on ne Seprecon urge andimpalime ‘adn ade ad tore tpre and nose ts ‘he Company reviews the nt resizable value of stcksnarase an store, spares and lose tel teases any dininson in thelr rxpectve caning ales Any change in he esorates mn futre yers gh affet the cayngamouics of edie Indore, spares ne loose tolswith s eorespenang tec ote mera care are impurmes. Nel eaiade ave “isdeterined wthrespect estimated sling press estimated expenalturetomake tes, ‘a rtiantbanate Cersinacuatelauunptons hive been acopte ss asain noze 24.4 these Nnancalstaeren fr vlzatonofpresert salu of cetines benefit obligations ane far alu cf panties. Canges Ie these asunons i fue eas may ae tbe Tiablity under these over inthose years Inmoking the exsinates fr inca tx cuenty sable by the Company the maragement looks the cent ncome tx Inwsand the dedslonsof agelateautortesonceaisiivesiathe fas. Macagrment has determines far valve of cain invedinens by using quotations for acowe market conatvons arc Information about the frases nstunert. These einates are subjecive In nature ard Inve soe ererainses and rater oifulgement(e. vlan, interest ate etc]and therefor arnatbe determined withpreiion “wade dts andotherrecebablee ‘he Campany/' management ceviews It trade debtors on a connucus bass to identlyreavables where cllasion of an mount snolonge”pobable, het estimates are Sate don hse experience an aresujects changes incondiors atthe (26)& oueratexmice mitts ured [NOTES To AND FORMING PART OF THE THE FINANCIAL STATEMENTS. For the year ended lune 30,2016 4 STANDARDS, NTIRRETATONE AND AMNOMOTS TO FUBUSH€D APPROVED ACCOUNTING STANOAROS ‘<3 Stans nterpretationsand amendments to publahed approved accounting tandadthit ae efecive [athe caren year: The oowingstandindy, amendments nd ineretatons of approved scouting anda wl be eee for he scan eto beiningon ster Sly 21Sard ompary det net expect ahve any marl ighark ges esa lly eer fordictonme, wherein 198510 Consldsted Fnac Steers ~[eecve lors erode bepirnirgon rater Janay 205) relaes he pact ‘11S 2 Conslisste dane Separate Facil SatementIFRSI0' not ely ts have ary input on the nal emer ot ‘me company. {E5518 ont Arngeransltaceve for aes pavods Leiningen or er {Jey 2082) replaces (AS 31 Tete ‘eine Ventre. FR Mts not Uhly to have any mon cx he Prancal temerisehe Compeny, 19 12 ‘Duconr of nerestinOter Enter (Tec for seus peed bepnrng on or aftr tansy 2015). The atoeon lofts sandars snc ie to haveanimpac.on Company ranca saeerts, WES 13 Flr Vat Measorementefecive for snl evade bepnning en ser 3 Jenny 2015) dens far wale, exatibes a ramewod for memuing ft valve and sts aut oars reqlcment fort vlue neaurerert WS 3 pling how to mentum flr vaie whanit it rqured by othe Fa dors ot node ne fave estore men Der oesitlininate the preety eceptansio fa valuermesarenette it caren ens netain standards, The adoption ofthis standard doesnot hvemateral mgacionConpanysfancal statements exceptfor sore disdosires. ‘The eter new sandarts, amendments 1 aperoved accountng stand and Interpreten hit ae mandstary forthe franca year beiatng on Hy 215 are corideed not tbe reinvent ott have any dignftant ef one Conpeny frandalesoring and eperations 462 stnaarsarcndmenta to apronedaiounting andartand erections tha rot yet etetv and have not been ety mopiedbytne company F855, Fnanal nstunens(efecve fr grids bepenng coor ar January OL, 28) 18 has published the ects version of RS, Fitanainsrmants which eiees te gldance nS 32 Ti fal veioninctude requirements onthe ssiteaton and mensuenet of far ase and ables tals ines an expected cect loses rela repices the incur ossimpalent model sed eda. TheComoanyhas yt tere the Ingato hes changes en hs anced F953, Revere rom sorta ith atomery is ppc wo aounong period beghning on orate ans, 2018 he ASB has Inved anew stndad forthe rcogiton of revenue. Tus wil role iS 1B Wich eves cana or fads ne sevens and whl covers construction conte. The sew Sundar sbase¢ on the nape atte heepset hen conta ef « good or sivicevasfers ta eatoner rote ntion of cantl replaces the ealstngnodse of rakes rewards The sandr permit a mtifed reospetvesppcarn ‘orth acopon. Unde tis apprsch ent wil engi {eanitonal adustments in retained earings onthe cite of inca apleaton, Le witout reiting te eomantve sete, Ther wilonly reed to gph te new esto cnzacs tat arhet competed afte dite of hitltaplction Thecsopsy hevyet teen be Inpactof nis stundurconitatnaneat ater Amercimers to IAS 1 Presentation of finns statement” ca the diese inlfative are applale to anus! peisés bevinwing on or ater Janary 1 2016, he avendmencs are made inthe contest ofthe IAS Diese vate, ch ‘explzes how fnasil statement lens can be imroved. Phe semans provide ciestors on amorberot oven lnuing Nateriaty-an ety shoud tot anette orctazrersts inion Ins mare! ht shure vote oomaton Where Hees are matesal sffientinfomaton must be provded tensa the Impacon the Aran potion oe Derlomance: Notes: cosmation tat the rates do tot needto be presented In» partur eder. Other ompehontve Incara{€C) arsine fom investments accounted for under the ensty shod -tha sara of OO ale om eauny ossoted Investments grouped tased on whether th items wil owl sot subeoquenty te mefed wo prot oto Accra the transtional proven, the scones in SB rearing the nlopton of maw rand tearing ples nc not regaled orthese enn. Thee amendments aly on aPacs the cdasures nthe Company sfoandal seem ‘rendment to AS 38 tangle Avets ad AS 1 rope plant nd eulpment[efecive fer pereds beximingen cr ker ‘enue 0 208) hurduce severe restnctons ote ase ot reverve-aied anorsiation for nuangble aes xd spy Date tht reverb meth of deprecacon cannot be uted for propery, plant and equpment. The rate ‘resumpson tat be ue of rererue-based anorzzton metocs fr intangible ats isinapproprioc ean be ovens xy ‘when tevense ané the corsunpton ofthe econonic evel ofthe intargileasets are hghyconelte, ot when te inungble sets exesiegasameaiue cf reenue. To amendments ae nat ey ts hive anime on Company sReancal [rndrttS 12, rane ne rape fr wel pro bp orate ary, 2017, Teena cay” batts exten oa dedetbi leper iemee Specs soe aampein ef We cing anou o ah ase dB ae base t Be on of te pr ev, a irc tec pss Tare ange fe Cn ama eipend maes ot ‘ecevey eth mae. The penne art ht thee a macelimpet on the Cogan’ nana are, Amaccners to US 7, “Sata of cash flows are acca fr wun pels began ono afer Jay 4, 2317. The srendnert raqires diksues tat ute es of fecal staterets f evuate une tities anu fom Ream sts, dug bth changes arsing rom cash fow nd neeash cares, Te anerdrens we got ty to have a ana pictonthe Companys franc tatenests. z Thee se rambo f ther mine anevavents nd terrraion te apd Acting Hands Da are ot etttcie (27)& uertatextite minis umiteD NOTES TO ANO FORMING PART OF THE THE FINANGIAL STATEMENTS. For the year ended June 30, 2015, '5 summany oFsientcanr accournne oust ‘he signitcant acount soles adopted Inthe prepantcn of these franca atements ae set out Below. These ples have comity nied athe yeas presented unesscterwie state, sa orowings Moeap teaing borowings ae ecoeized intl cst, less atrbuable rantactcn cox. Subequent 19 tat recognition, mut being berewine ae sated a amored cos wth any diference between cst and reeves ‘hie biog ecusted inthe income taerertoverthe period cf the bonwing onan efecveiterestbass. employee benetts compentited absences ‘he Camgay rovises fr erpersated abscess ployee en wnvaladbalans of eave Inthe period in whith thelesves ate eames Postetiementbenests Detinedbenentpins The cempanyazertes an enfnded gritty cher for fs pemanent employees as pe tems of employment who have complete minimum quathngsevod ofsenice w deredunderthe scene ‘ne carpany’s obligation Is determined thou actual vauntons anled ov under the Projected Unt Credit Mathed: Remessuereets whch comprise acuta! pans and less andthe retum on la att (ercodng intrest) wierecomardimmeainalyinotaer onotehersive Icarc. Any serge in pst servic ont iaimmediraly ecognind Ingroterlasssccunt ‘he Compary determines the retnterest expense (cme) onthe nel define bens biigasatl forthe parody pnivingthe dicount rate exa te mesure he Gefned Gene Obligation athe begining af he armen peid to he thernet defined bene lay (as, tating Ins accoutt any changes the net doe beret aii (ert) fring the petiodas a esut ot conimbution ane Benet payrentset eres expense and set seve crs ae ecopeed In prott an less court. The lites sctaralalvation was Cnduced atthe balance sheet date by 8 ‘uilfedprofeisina Fm of atures. Income tt expense compres erent tx and deemed ts, Income tat expense srecogae in prott een excepto the enent att latest tems recgntes recy negaly,nwild ce ttesognersneauty ‘Current tas the amount aftr payable ontanable income forthe year using to rates eracted or wutstantvely enacted ty the reporting date and any autre tote tox payable In esac fpevous vers. Provision freuen ats aking in count tx ces, rebates andexemptions ava, #2) hotunts tiedonoppasc tal ecsundersch opie The suet of urpad ince ar inrespect ofthe TEE oF pice peace ecopuued es sabi, Any ener pad over whit vn rmtpact of the erento Dredd Is Delores efered tat is acount or sing the bance hee ably method providing fr temporary sierencesbetmeenhe Camying amounts of weet and inbises fe franca reporting pupotesand the amounts tes fr tx purposes. inthis ey tefecs on deferred txaono the gordon ofnene tat ssutje toa axrepme ilo considera ‘Teordaoe wth the requrenent of Techn Relene- 7” ofthe Intute of Chartered Acrountants of Paczan Defend tacsmeasiradaatesthit ae expected abe apple tothe temporary diferences when fey reverse, Dase¢ fnlans hat have beerenacte o artantely exacted the reporting date A deferens i recoynizetor Sitacstletenoeran cffererces A ceferedtax aie! ls recopized fr deduce temporary ferences to e exten. thot are table oft wil be aslsble aint wich tempor ciferences canbe ued, Deferred a setae viewed each reporing dite and are reduced tothe extent tht itl no longer probable tht hereatd tax beret wilt eae. Deterrd tis ntrecopiced fring iterences tht arent chptted to revermand for a temper terencat posog om the ial rtcagntin ef ponowl ad ial ecagion aes and lsilifesin a ansacion thats rot busines combination sd nat atthe Beat iraeacion secs neler he accusing nr the tale prof _sprovfonisecogrzed nthe tlancesneetwnentnecompary his aeyalorcortuctve obigtion a entof pst ‘ana anes probable thar an outiow of ecanamiebenets wil be aged 10 vette the oMigation anda ibe ‘estimate can be made ofthe amcuncoftheobliaten. “rdeand oberpmables : Laie ec cace and eter emmets pyle arched and cared con wih the fe ae ee canecientabepalstame acs fe ros nd sancntrcned mtr netbileatatNeeono=n. @)& Quetta TextiLe MILs UMITED NOTES TO AND FORMING PART OF THE THE FINANCIAL STATEMENTS forthe year ended lune 30,2016 vider recognizes acy ne perodin whine approee by starenoler 57 _rovery plant nd equipment and descedaion Frozen, at and Equipe are sted a cat revaloed amount os aeumulited direction. Cort comes of alsson cost endotberdrecty anette et. land, tuling and pink and machinery ae stated at co/reviued amour leg the fae vue st te cate of ‘luni, less ary subequert scumulstes deprecaon and ipsirent loses, Revluaton ae performed wih suficientes thatthe arvana caryog aun donvlfer metal athe endolrpersg pero ‘Thecos orepaig part ef an itemot propery, lant ndequgment recog nthe carving out othe tei lesprebale thatthe ute ecxnomicbenettsemsecied within the pat willow othe corrany sna zast can be inesurdrelby. Thecoas ce day to-ayservion of propery pantand egulsmentarereopted in ot oross Depreceton|s hged Icons onrecucng balance method orrit sine uf feat he rates ype in rover, oak end erent hte Ceredation on editor to propery pant ord eaupree chert om te tno n chien en i vod a cptalard whe ne dpredaton ls thrged fo te nenthin wich teem ‘he ait refute and wad ver ae reviewed a each fiaril yearend and aused if ipact oo ‘exprecitonbsgntest. “he sano os on dial ofan at resresented bythe aiflerence between these proceeds a he eanying srreunolthe ati mcoqntnd ssanincome orespente. here the cxryn amount af suet eceade is etimated rcovrale smut it swan down toed et teases nr of which he cemsany assures substan al the rts and rewards of oaneip ae cases 2 financa lease Asset aquired by way f Brace lease sated atm aroun ea tothe lowe ols fare ae oe resent velue ofrinimar lease payments 2 the Inception of te leate ss acunuteddeprecion and mpsiment Inte, any Depresaton is chaesontte te ta arsed tr ownedaiet. 58 Coptalwokin process Conta werkin grogres nd store hed for canta expendiir ar at a cet and epecant pant neared esuntng als ofeorowing care Tancerere made telesant ronty, plat sodecuipment sings a and when SS. investments Instat tty Methad Investment I tsocates is scnured for wing te equt) meod. Tse are enies in which the cempany has + Haieantinfuenea ahehieneners nectar nara jet venture ofthe compa, 582 eratvefinanda ements ‘ne conpanyutes cenwatve franca nsranents ton a forward exnange contacts palates te mos tones is aus asiates with frelgnsmency toring aa tec or ext How fay fsbo in nesta Suh 58. Finan met ural trouth pttrioet Anant asets dase us Pll fr tanga tos sgn ash areincuded ne caegEy ancl asst farvaue teu rotor fur Francais re cates mu hear tading Oey se agar fribe pup ot salingn ta tew tam Gunsorlosesonsuc nvesinens ar recopized ih prot ardless scout S84 Heldtomatuttyimesimens 7 Non-drviive franc ste with fed oF deteminbie piers and Aked maturity ae dated ws hel ‘maturity wine te Company haste pony nensan ana ily Moidtomauny, Imeem inverse a bees foram underedpeioc ar ot ieaaea ins essen The fl value of Ivesrants tat ae acely traded In ermized Rrancal makes it deternined by referece to ‘uote market id prices atthe core of buness on the blancs sheet dite Foresters wheretere so ce imate fal indetermiediningalastonttewn gat (29)& quersa textive mitts umireo [NOTES TO AND FORMING PART OF THE THE FINANCIAL STATEMENTS For the year ended June 20,2036 sao sus sa therinvesimentsnotcoverein any fhe abave categorising investnensinssiocates in which the Cmeany uso gies infuene ave dated a ing avalible forsale are sated a fa ae, th any estan gin tov bln recognized ey ety, iso lsat on arb or ao investments ae reseed Sen uty ntl the investments oe fll Ssosed of, oul the ivestnents re determines tobe ipa, at that time comultive gin ors previously reporedia the equity isirlaedincuent yes’ roan iss coun erative ana astern ‘TreCompany uses ern ancl insruants suc abner ate saps ands recy maps toad sik ‘Tscutee wh ners ate fastuaions, Soc deriatvefnanca nsvuments re inal ecguzed at fa value on ‘he date om which» derwabve contacts emer ita and ae subvequerly measured a a valu. Desvaies oe ‘ived as sets when the five is poste and antes when the fv is eg. Any gis oes Siang cm change naive of terwstues ht donot cualy fot hedge accounting ae taken recy to roft sad Fnac instramets [A the Sian sists ar ronal labile ae veanned the ee when the Company Bec apart tthe Gnoct pron o he stament Ary gorau on aarecagton of te Rrancal ases nd franc aes [etter to prot end es count euentiy, Fancal sets ove sated at their nominal valve a resuced by he Ghoromate allowances for stnating recoverable amount. Mark up bering Arana lables are recreate ‘ros proteeds reeves. Other Manca ables re statdat the anna vale. Store andspares Store and pars ace valued at ower of cost and net elle value Costs determined ona weaned avarage bass remain vst valved tot omarting vice value us the charges incre thereon Stockin tae stated the lomerfcortandnet eleable value exept wate which salud at net lable value aw mae sc welohed average cnt ortpacementost whichever lowe rein prowess scaverage manatctuingeost Fisted goes ‘At average manafacsingcostor neste value which ever is iower waste Netseakabe value aw mateal in tnstsstatedat neice pce plsctherchres palthereon pt the anc sheet date ‘average ranfecturngcotin tion te won process nds gods, consist of rec material and soporton of truntucrng overeat based o normal ps6. etree vale the estate selling pce inthe onan cure of business eso of ompleen ard saing capes “rade des ograted ty the Company re ecorist 26 cared tga ivcen amount ass an awe fo 7 imatecble amount Anestinatedprovson or dubl debt sate when allacon ofthe full ampurtis Rae” probable ud dete are writen of since can cath equates cain anda eaulslenseompse cshalanes, hn tana nba wth bank othe purpose of ah om revenue ecopsiion even rom isi econo when sigan sk ard reward of onershipaetrarsfertedte the bye Invert come isrecognies onthe sso constant paidirate of return, Dividend income Is recogiad when te nat to reeive vend is established I. the book closure cate ofthe Invest compar éciing the dnd. erring cons inured on long erm frances dey butler the eanstructon / aon of quay se Ire coptees up tthe dt, esse ante ae aaa fer he intent, A oer mar, interest end ther lated cages ae ake othe prot oss account enti mpament| [company's assets ae reviewed tthe andafesch reporting period to detrmine whether theres objective eves Gt moment. any such indaton ens, he assets recoverable arcunt estimates Inpmert osts ae ‘ecopnleedin the prftandotsazountcurenty Forsgn creneyvasiton Force caren wanscions ae ante eto Pak Rupes at exchange ates preva onthe dite of wanseon Monetary ose ad abies in foeign cence are retarted nto Pak Rupees athe rates of exchange preva the blancs sheet, (30)& querta textite mits umireo NOTES TO AND FORMING PART OF THE THE FINANCIAL STATEMENTS Forthe year ended June 30,2036 $520 Ofsting of ancl atts nd franc ies Financia asats and nancies are set of and onthe net amounts reported inthe balance sheet hon theres lat enforceabe ight to eof the recogriued amount and the company intandstether sete ems neta oto ‘reali thease ond sete te iabitysimutaneousy, S21 Segertreporting Segment reortrals based on he operating (busines) segment ofthe company. An operating segments & component ofthe company tha engage na business acts rm which i may eam revenues and Incr eupense Ineng revenues and expentes tat relates to tansations with any of the company’s other components, An operating Seaments operating resus ae reviewed by the CEO ta make decion about resource ob aocted tthe sopment ‘tod assess ts pertermance and for which ite Finn inermaion salable 522 nani isruments 5224 Finacial set Cssiteaton ‘The Company cases Is franc ases In the following categories at fir value though proto los, ouns and ‘eccrables, hel to matunty and aalabie-or-ae, Th daaaton depends onthe purpose for whch te Wal sses wate equted Management determine the afeation ofits anil ass a tal sacoyaon 1) Finan ase at aval though profit olass ‘rancil asets afar value through proto loss re ane asses held fortran. A nana aie cstied inthis {ategorif acres nal fr the purpose of selingin th shorter Detivaves ave sho categorie’ a el tor ating unis he te designated as hedges heetin the catgor ar csse as covet vet, 1) Loan andrecevables {ans and recvables ae non-deivative anil asses wth xed or determinable poymentthtare not quoted nan 2etve marke. They ae inuded in curent aes, except formats greacer than 12 monte ale the en ofthe "eporina period, these ace atid at non curent sets Held comarunty Hoan asset ‘These are secures with xe or determinable paynents a ied matty in tespec of which te omaany has the Dose intent and aby fo olétomatuty. There wore no hel tomatuyitestmcrs ss baane shoes dae, 1 lable frst ancl atts 4 ‘Ava for sae ancl sets ae non-rxabves that either designated inthis category ott lsd in any ot ‘spose of within 12 month ofthe and of he report 5222 Recomntion ‘eguar purchases and sles of anil assets are recognise onthe tade-dte~ the date cn which te Company orn to purchase or sll the aeet. Al financial assets are inalyrecogniced a fa valve sus tanacton eve "ceptor tose rani assets which are designated as nancial anit at far value ough proft erst sana assets cared at five though profit ols" are italy recone a five ad anacion cote we hanged {he oft and os account. Financial assets ae derecognced when the ight to receive cashews frm such wet has ‘wpred or have buen transferred and the Company has vansferted substantially al ks and read, reldrtetthe cwrarthipofsuch financial sets Dividend income fom ‘nan assets afi value Hvough profit orl and “avaablefer cle Franc sees oid inthe prot ardiosaezeunt when th Comoany ght to veceve payments esablichee, uit isruments that do not have «quotes market pre nan ative market and hoe faves comnt be velsly messed determines ae sated acest. 5.223 Weasuremant 7 “Asible forsale franc sets" and ancl asset at ar value trough pot orl! re subsequently nesufed t far vale whereas ‘held to maturity fandlaest’ and loans and receivables ace subsequently mewn ot stad costing the effectveinterest method. tin or losis esa fam changes nthe fa value ofthe rani asets at sr value through proto lou are ‘ecogrzedin the profit andes ccuntin the period nhc they aie Changes inthe fair vlue of “avalateforsale nani azt’ ae racogrized inthe comprehensive in ome. Vihen ean! assets cle a avlabie-forsale we old or pied the aeurwlative fal aes djstneta ecopred incthereomprehensive income il the me of poral or mpuirment are credo the pratt andlasrorconnt (G1)& queria Textite Mitts UMITED NOTES TO AND FORMING PART OF THE THE FINANGAL STATEMENTS, Forthe year ended lune 39, 2016 ‘The Company asezses a the ené ofeach reporting period whether there I objective evidence that afiracialaset or aroun of francis acate le impaired, A nate asset of 2 group of manda assets Is impaved there Is objective Evidence of mpairmentas a rosle of ane or more avants that eceurred afte theinital recognon ofthe asst (aos {vert and thetlow event (orevent haze impact on te eztimted futurecash flows ofthe franca assetor group of finaetel assets that canbe relably estimated, I sich evidences identified to exit the said ransa azsetor group of ‘eaellasets areimpaved and an impaimentioss recogni inthe prof andlossacaurt fr the amount by which the asset camying amaunt exceed thelr recoverable amount, Inpalment loses of equity Instuments, once recounite, ate not reversed through the proftancloss account. 5225 Or-setang of franca asietsandiabines Financ assets and fables ae cffent and the net amount i reported nthe balance sheet when there sa leally enforceable sight 10 offen the recagnized amount ndtherait an intention tosette etheren anet ads, ortoveaize the sietendseitle the labilty simultaneous 5.226 Derivative financial Instruments “The Company deslgnates derivative rancal nseuments aster fr value hedge orcas Now hed. 9} Cashflow ledges Cashflow hedge representshedes ofa highy probable foreasttranscion.The effective portion of changes inthe alr \ilue of derivative that are designated and qualify ae ash low Neéaes are recognized in ether cornpreensive income. The gainer fas rating tothe Iefectiva portion ie ecogn2ed Invmedlataly inthe groft an lss account. Amounts _ccurdatein eauty are rela othe profit and las account in tho poodsin which hehedeiter wil afect b Falrvalue hedge and other non-tadingderiatives Fairvalue Nedge represents nedgesof te far alee a recognized assets olives ora frm commitment. Changes in the fairvale of derivate tht sre designated and ualfyasfar value hedges are recorded in the prot ards account, together with any changes inthe fai valve af the hedged asset orally that ave atibutable tothe hedge risk THe carn value of the hedged tem is aduitd accord ogy, When a desvstiva franca Instruments rotdesignatad ina fualtying hedge olatonehp, itis accounted for held for wading and accorginly is categorized as financial asset at fsievalue through profit oro 5:27 Finan lables ‘nese are ivy recoglued ot cest, whch the fl slur of the consideration expected to Se paid All rari labile are reognlzedatthe tne when the Company betories pany tote contrecial provisions of heobligng ‘Afirandisliblityi deecogsized when the obligation undrthe liable alichorgd, canceled or oepeed Whe fxistngfinonll Laity is eplesed ky another forthe sare lender on abstantlydiferort tm, orthe terme of ‘n existing Habit ae substantially media, such an exchange or mediation Is weated asa devecnlzing of the ‘rginalisbiltyand the eengnition ofa naw icity ard te dference in respecive cringamouns is recognised 5:8 Eamingsporshore- basi and dleted ‘The Company preients basi and dileted earnings per share (EP) for Is ordinary shares. Basic EFS is calelated by viding th profit or loz attibutale to ordinary sareholcers of the Company by the weighted average runber of ‘vdinary shares outstanding during the yoo, Dilted FBS ie determined by adjusting the profit or loss atinbutable to ordinary shareholder ofthe Company and the weighted average number of ordinary shares outstanding forihe efets 5229 Related party trasacions Al trarsatons with related partes are arred out by the Company at arms length pice using the method prescribed under the Companies Ordirance 1584, Faure ofthe fluted party seletiansip as wall as Information about the tanesctons and outstanding balncos ae scosedin hereevantnctes te the tnancal saterents. : 08 une, 2016 30" une, 2015 Note Rupees Rupees 16 PROPERTY, PLANT ANDEQUIPRENT Dperatng fed assets 6a S760,75 210 606,€99338 Capital work in prowess at cost 62 dasgato 2.98910 im ama (32)(ee) & vera texte wits ured NOTES TO AND FORMING PART OF THE THE FINANCIAL STATEMENTS: Forthe year ended une 30, 016 nesses {Shoreland nd ar ans ace fee se Facer eaupet Ores caren ‘aoa eaupnert| lenstasias aaa an Taxed — Beta pac MMe peetan ie ferent NE aurea jen eet) ie SEHEMIY ER, eon ssatmne3, ne, oe Bemce acu Ema amie sau semaw — austonn Dye ans spessaeoe 5 suse nuan —ansia mass mene x eons 3 homes tase sess iain esata Se ‘7s 2 P"oeost “Mona “tenn eee Sinan x 5 Bogner 2s Danas SSsiea SR senaas 01s 2 aatsesr amaein —eazesa f qostate mason user ams aeaaiaet Baan? 2 Mites “Sno fines Rae ones “ana Duncans Se paar 7d aan ar30.aT7 eum : meme aes 18s eu Boaso ase Seas D Necne deans ss SaLsi —6nsay suas aries abate D Romer aeons ss weve) mah Biseeay ea aRae —2eROSLIH—onse Raa aT nen + sem mame saa + mee as Sarma, : ‘aaass sings LT Dogon Temeew ase arcet cz D Bikes “Sher ost : unas —(Biehsoo ‘pines aaa fini Ran eae g rawass rar vases) eo caper Maan aoe dome agents eam mas “Ssn0es Done iota seman woisssune diana aasstsee wmpgrs asia Sk z 2S Sioa. "Sonus Rises ganas acest i x Fauna stags “aaa Seagt = iwese 8 ie : ss “on 10 : ae you Taio — eT TSS Sima — aS 7 aaa aa Teas iar [ans asa aa ssa aa(pe) & aquerta texte mis imiteo NOTES TO AND FORMING PART OF THE THE FINANGAL STATEMENTS Forte year ended June 30, 2015 nse Easing tn (eed kr nti ‘hag eens {tne eta cin evant ‘ncn eg oti reine aig rin (Ghoesleyan elated ‘ural are Fn lenedasets asd acne vote Ee anny tants OHA aes arg nes Geprcaten |) me Mead ame alton) tan) I ict) fea) se 9, rien tsa ‘Riot Heme eames onsen toni Oise) sores Rives Ros Suse aammes oom | amms tuna * tassoy Stacouss sao anne eating esime “est Sreasn “aiamstthaace ‘one ae tans tena amas deme) eaes turin vetoes ase emus insane prions (esson iain “ian tas tansy BEI when manne so + wana “Soe maar) Sinse ‘to iis Boom wa Swag daa BR Sass omen Seay ators amas ans aeaay BR STRAT BES RET — oR — EAT Tae Ta AT ‘anes 2 gmpam- “htaan "Sean nse vars nan Be aon < Saxton femmes onan. waaeo ames saMinait suai sOisaior ashes soon teas ciensn — mnocne ie maaan “ae "gaairn “tara “tanta “saan mn Ghettt Sain nan "Sumas ome tae kin Maas Be Rano Revon “twas “Sat Stine Nstone ano Sted kin te iieon Many ine sihtin rior Naina etn tanin snus ne Taos RT SE — Sioa — Tag — ae an aT agin nan wan aa sane ae 2 tie Sasa Mme 2 Dit Bent amin (beh) asa pees | damm samt acon ‘bina Simchas ax : “tan sans) anime E si at fue wae xm om mma mame a aanine Soom aaa “saa fran "Sa Sa a ae a eo Casini any ERT — Tama? — Tao — Tia” ——-— aa va bis maa& versa texte mitts unarred NOTES TO AND FORMING PART OF THE THE INANCIAL STATEMENTS. Forthe year ended lure 30, 2016 {6:1 Depreciation forthe year hasbeen allocated asunder: ent estes sping a smmopce — sapioye2 ‘ Cont of aes - wenn a wouje — 6,aa57 ane Tee Cost of aes power plant aoa auganass——ayg20p01 tweens: a aongse 9085203 Loar es 6:12 Disposal property, pnt ard equip con Ip Meeemaated |[ Water dow [Sa praceeas a Wodeot Hesrieaars at borer Peraars deprecation || vaue Mepcorents Pere cape» ener os 5at6,n8 saz958 503,160 6 2000K0 1.2660 Negotavon MM Us Kanch & Tae mes Son,g0 e000 1,000 aarsae mas 250,000 3586 Negation Me Asta abo, : 673520, 25962 403,08 350000, 153888) Negatition MM Mani arch ohms __enagn aos gear __ gonna 2onnas —7.open ass aa ane OR 989 6.13 Had thre been no revalutien therelited figures of lard, bulding and plant and machinery a hune3 2026 woul have been asfolows FreetldLand Leasehold ind Bulg on eel and Buldng on leave land Buin ot feral nnd (a {abou coon on eed and {atoureslony on eateha land Pantand machinery (id) 30 ane, 2016 upees assnae asap 317,01596 sé.063904 7287522 m74653589 301600309 309,240906 ae 30 ne, 2013, 7582417 413209 aus279% 101,119939 391250328 to,toaass 2531113 3.89,938055 ae& vert Textive MILs LiMiTED NOTES TO AND FORMING PART OF THE THE FINANCIALSTATEMENTS For tho year ended une 20,2016 Note 62 Capital work in progress at cost Computer software The moverment in Capital work In progress Is as follows: Balance at the beginning of the year ‘Addition during the year Plant and machinery Plant and machinery (Grid Electic installation Office equipment Computer Software Furniture and fxture ‘Transfer to operating fixed assets: Bulling [Civil Work] Plant and machinery Plant and machinery [Grid] Electric installation Office equigment Furniture and fixture Balance at the end of the year 7. LONG TERM DEPOSITS Security deposits: WAPOA ssact. Leasingswaninies Fz} Others 8 STORES, SPARES AND LOOSE TOOLS Spinning : Stores Spares ard accesseries Loose tools Weaving : Stores: Power plant il and stares 1 No item of stores, spares and loose tools is pledged af security as at reporting date, (36) 30" June, 2016 Rupees 2,498,910 2,498,510. 2,498,910 14,274,822 244,220 283,939 14,802,581 14,274,422 244,220 23,038 14,202,581, 2,498,510, 7,893,190 51,125,048 630,475, 1,789,168 G7 ABT BBL 65,108,716 377,671,201 8,489,794 251,269,711 42,707,823 132434,567 “A612, 101 30! June, 2015 Rupees 2,498,910 2,498,310, 12,337,643 50,257,976 180,000 1.0109¢0 175,000 2,498,310 144500 536,257,286 12,337,643 50,257,976 180,000 4010 300 175000 148,500 64,106 019 2,498.10. 7,893,190 13,066,676 3,811,390, 3,609,168, Lama 68,212,515 199,706,012 9,431,313, 27,488,810 95,335,195 145,591,201 379,576 236& ouerta rextite MILs LiviteD [NOTES TO AND FORMING PART OF THE THE FINANGAL STATEMENTS, Fer the year ended lune 30,2016 9a » aa so june, 2018 30" June, 2013 ote Rupees stock TRADE Spinning: : Paw rated ~in hard a71.366845 Wiodein racess 99,369.55 Fran goods sonasca7s waste s08,609262 11585,402335, Weaving: Raw material 323,102582 Woteinrocess SLg54373 Fished goods 97451311 852,488,065, TEE The eaming value of Pedzed sock sB5.507-5ON,500/- Une 30, 2015: 85.2.103.880.278/. TRADE DEBTS, Considered good Local debts unseerred 320,186,185, Tins Held for tracing In tisted companies aa 100545 Revaluation reserve for investment 12308 33051 Detals areas under: ‘ supe 2216747311 408,100 238 an1900350 2799248.200 336,846,951, 116,456,100, Geaate.ni0 sau7r24t6 Tierra 334,088,557 eT 96e,207 (94038) aes are fears aot] on || ee, | rarwave falas eked re Deven sn Fre Ud sooo aso tn76) aso Total- 30.06.2015 30.06.2035 209 June Note Rupees LOANS AND ADVANCES ‘Advances considered g00 Enilefeam executives S377 Suppliers 35,322385 Colectorof Custom ‘eanoes Margin with Banks . s7370%0 other: msi aE ‘TRADE DEPOSITS AND SHORT TERM PREPAYMENTS. Letter of eet 1687.736 sso (37) 1013555 2307,739 aba aasiais aisa7art RT 7a20 Sor& auetta rextie mits Limited NOTES TO AND FORMING PART OF THE THE FINANGAL STATEMENTS. Fer the year ended tune 30, 2015 14 18 16.1 162 Note OTHER RECEIVABLES Receivable against sale of fixed assets Insurance claim receivable INCOME AND SALES TAX REFUNDABLE Income tax refundable Ba Sales tax refundable Income tax refundable Income tax refundable ‘Advance income tox Provision for taxation - currant yoar (CASH AND BANK BALANCES. ‘With banks on: ~ currents accounts 7 term deposit account (TDA) 161 = saving accounts 162 Cashin hand June, 2016 30 June, 2015 Rupees 65,519,508 115,497,638 381.017 186 44,689,797 35,502,152 20,193,949, (24672.443) 55519503, co216618 880513 51,097,161 Rupees 12,387,350 396,404 12 583,754, 61,606,904 181,060,733 202,667,537 69,258,875 90,825,352 160,084,228 (98,477,324) 51,606,908 36,427,361, 42,845,687 1,226,164 30.509,212 716,575 83,225,388, Effective rates of profit on TDA, during the year, ranging from 3.75% to 4.5% (June 30, 2015: 4.9% to 7.2%) per annum. The raturity period of the TDAin one year from the date of original issue. This deposit is under bank's lien as security of bank guarantee issued on behalf of the Company. Effective rates of profit on deposit accounts, during the year, ranging from 4% to 6% (June 30, 2015: 6% to 8%) per annum, (38)& querta texte mits umired NOTES TO AND FORMING PART OF THE THE RINANCIAL STATEMENTS, forthe year erded tune 30,2016 17 ISSUED, SUBSCRIBED AND PAID UP CAPITAL so June, 2016 30 1ure, 2015, 30 June, 2016 30! une, 2015 Number of shares rupees Rupees 1,200,000 1.200000 Ordinary shares of Rs. 10 each llotted for 12,000,000 12,000,000 ‘consideration paid in cash 9,875,000 875000 Ordinary shares of Rs. 10 each alloted as rght 98,750,000 $8,750,000 shares 4,925,000 1,925,000 Ordinary shares of Rs, 10 each Issued as bonus 19,250,000 19,250,000 __ cing al shares Se 3.060.000, _13,000000 73307960,600, 130,900,000. 37 The company had Issued $875,000 Ordinary Shares in the ratio ef 316 shares for every 100 orcnary Stares at exercise price of Rs. 76/= per share having gremium of Rs. 66/= per share 30" June, 2016 30! june, 2015 Note Rupees Fupees 18 RESERVES Reserves: ‘Share premium, 651,750,000 651,750,000 Capital reserve 4.200 1,200 General esenee 415,000,000 115,600,000 766,751,200 766,751,200 Revenue: Unappropriated prof (375,202,615) 1285,243,651 Bas 585 _2052,000.853_ 19 SURPLUS ON REVALUATION OF PROPERTY, PLANT AND EQUIPMENT Balance 2s 2t July 0, ‘ 2065,514,450 856,684,552 ‘Add: Surplus on revaluation of land, building and slant & mectinery + 1273,33577 Less: Transferred from surplus on revaluation of Property Plant Equismere en account of Ireremertal deprecation charged in the curentyear- retof defemed tox (55,937,517) (64,203,679) 2.008,675,933 2085,614,450 Les: Releted to ceferredtar effect: Balance as 3t July 03, 565,761,604 167,355,002 Recognition of deferied tax liability due to the tarsfer of incremental depreciation to equity from surlus en revaluation (27,900,005) 393,42¢.602 547,881,689 $65,781,598 ‘Gosing balance ASGL795204 _1A99,832 756 18.1 On uly 10, 2014 and August Os, 2014, further revaluation wae made ef te Land, Building, Labour ColonyGrid station and Plant & machinery , by M/s. Joseph Lobo (Prt) Ltd, registered Valve's and Surveyors, cn the bass of market value whién resulted in net revaluation surplus of RS. 1,273,133577/-. 382 On March 31, 2009, further revaluation was made of the Land, Building and Labour Colony, by Asif Associates (Pvt) Lid, registered surveyors ard valuation consutants, on the basis of market value which resulted in net revaluation surplus of Rs, 622057,842/- 493. On November 13, 2006 and December 24, 2006, futher revalustn was made of the Land, Bulding and Plant and (Machinery, by Asi Associates (Pit) Ltd, registered surveyers and valuation consultants, on the bass of market value and. realitable values which resulted In net revaluation surlus of Rs. 154,291,394) (39)& quer texte mitts umited [NOTES TOANO FORMING PART OF THE THE FINANCIAL STATEMENTS Forth year ended une 39,1018, 184 on Muy 27, 2005 and Jun 24, 2005, Land was revalued by MVE Ausoclate (AA) Lt, registered surveyors ard valaton orsutans, onthe bast of market value nd realicatle valves which resulted in net revaluation suplusameunting ORE 119,796,783) 495 On lly 16,2008, revaluation was made of the land, busing and machinery, by MYC Associates (Pt) td, registered Surveyors and valuation consultant, on the bass of market value which ected inet revaluation urls of 30 June, 2035 30" dune, 2015 Note Rupees upees 20 LONGTERN FINANCES Loans from banking companies -secured [Alsarka Bank(Pobitan) United 203 sagen 2605.37 Faysal Sank Limited (LF 202 100,715,000, Habib BankLinted- (UF 203 2ersons7s ——-2233,000 Habib BankLinted- (UTR, 204 ans Meezan Bank Linited = [Bi Mul] 205 see0ses3 61341493 National Bankof Palistan 206 - 2351776 National Banko Pallean LTE] 203 eaaayon 63,434,000, Sik Bank Umited- (C77 203 : 308734 si Bank urited- (274 208 - 8/00 Sever Sank Led (LTA 4exs67000 24,995,000, alps ss 37857 Lets: Curent maturty shawn under cure abies an (220,148,483) (63524339) Tomouas _era3301 20. cqitable Mortgage of Rs 94. (M ove oper at Pct Na. 7.8/4, lustce Serdar Inbal Road, OF Zafar Al ond, Cuber V, above. Faclty amount was Bs. 5 (M) at 3 ort ate cf EMK + 15% Loan & repayable In 6 quartety istallments cconmarlng rom 30/9/14 292. Fiot por pass hypothecaton charge overstock and receivables forPHR 130 Millon, Fist af paesu charge ower plant ard machinery ofthe company for PIR 321.330 Millon mertgage charge overland ar bulding for PAR 75 Millon Facity amount was 162.683 Millon 3t a martup ate of 3 ments Kitor pls 0.50% per annumloan Is payable win 5 yee, including 1 year grace ped, Quartet installments commencing from June 0}, 2016. 1203" Fit pod postu Caultable Mongege and hypothceaton (eseh) charge for PER £20 Millon, on presert and futur fixed asses ofthe company faciltyamoust was 287809 Milion ata markup ate of 3 menths bor plus GOK per anmemloan {is payatle win 5 years Inclucing 1 yea or repayment of mark up under the faittyconmercing frm Jay 0%, 2026, 1204 Frozen mathup for CF and EM Fclity Accrued from lan 16 to 22 Apel 2015 to be clubbed in frasen markup payable In equ! quarery installnents cornering from O-rept 2021. 205 Ranking Charge of Rs. 96 (€M) on plant & machinery of the compary. Faclty mur was Rs. 72 (M] 3t2 prot rate Of \yetr GoP larch Sukakate. Lan ie repayablein 0 mently installments commencing from 34/1/34 206 Fint Par Passu Charge offs. 200 (M) on Fed Assets ofthe company. Faclty amount was Ro. 120 (1), cu of which en ‘amount of Re, 63.434 was converted Into TF loan trom 20/6/13. The renaiing aout of Rs, SESE (Mis at 3 rap rate of K+ 3.5% Leanis repayable in 9 quarter installments commercirg om 2/6/33. 20.7 secutyisthe same a mentioned in 20. Facity avoust under LT is Rs.63434 (M) ata marcup ate of SEPrate + 3%, Loanis repayable in 20 quarety installments commencing trem 20/6/13. 298 Fiat Prt assy Charge of. 61.33 (Mover Fixed Assets of the cmnay,Faclity amount under LFF wa RS 5 (M) ata markup rate of SP rate + 2K Loan payable in 24 quae installments commencing from 18/9/07. 209 Ranking Charge of Rs, 80 (Ud) over Fixed Assets ofthe conpany. Fciltyamount under LTFF was Fs. 1306 (N) st ma-up fate of SBP pte + 25%, Lean wae repayable in 20 quarter inetallmerts commencing fom 20/3/03. However, lean has been settle in fl. Fist a pastu hypothecaton charge over curent asets for PIR 33.334 nilon, ranking charge over Fixed Assets ofthe comeany for PKR. 615 Milicn.Faclity amourt was 481.367 Millon ata markup rate of 3 montis KIbor per anndmloan is payaslewithin year Including 1 year grace period. Quarry nctallmerts commencing rm Aoi 0. 2017. 2b 21.11 Current atu Includes As. 48.587 millon in resect of overdve. The Company has agilied to all lending Banks for restructuring of oustanding leant 3 (40)& quertatextice MILs uMITED NOTES TO ANO FORMING PART OF THE THE FINANCIAL STATEMENTS Forthe year erded June 30,2016 B 2 BEE au tune,2018 30° une, 2015 Note Rupees Rupees REDEEMABLE CAPITAL -SUKUK Diminishing musharaa Suku cerfeate 553357.613 697518,288 ‘Less: Current portion shown under current lables a3 (319,970,058) (202,068,366) Tinos Tee ‘The company has resuuctired the entre fcity maturing 02 March 20, 2529. The company had isiued privately placed Sukuk Certificates of Rs. 1385,000,000 divided into 277,000 cerfcates of RS. 5,000 each, The sgnifcan tems ad condtiens and securty ofthe Suk / erates area follows: Tenure 7ye% Pres ite of int installment Mure 34,2010 Narh3, 2010 ite oflast installment Mart 202020 Nawe202020 Rateofretum per anna Smnpote17N sMOEORS LISS Cemartblefron cowertble NonConertble Non Careriie Redsortie/parpans! Seleraile— elamuble Security FrstPan Pass charge f Rs, 1246 bilion (une 39, 2035: . 1.846 bilien) an all fxed asses ofthe company. ‘Current maturity includes Fs. 157.142 milion in respect of overdue. The Company has applied to all ending Bans for restructuring of outstanding loan ibis. ‘LOAN FROM ORECTORS ANO OTHERS -SUBORONATED Unsecured oe to directors aooa7a610_109372.510 Dee to others 51347960 51347,860 Rime Tar ‘These are non markup bearg loan and ate ursecwied, Its repayable ater more han one year. The fan usta 148457, 000/- (lune 3, 2015: 85. 128,457,00/) Is subordinated tobank loans. 309 June, 2016 30" une, 2015 ¥ Note Rupees Rupees LUABILITIES AGAINST ASSETS SUBIECTTO FINANCE LEASE Poyaslewethin ena your race] ana Poyasle aercne yr but rot mare then five years posezs} [1.205220] 24583383 25,634,851 Less cefered trance cst (ara) (6073979) HTT AS SeLATE ‘Aéd:secutty deposit 7 6530.05 E1390 Less: Curent pation shown uedercurent abies Bs (8507497) (707,738) Present value of minimum lease payments sas, Tees ‘The Company has entered nt lease azreemenisah for Pant & Machinery and Vehicles with varios leasire conearies and franca nttations on month, quartet and half yay paymert baie. The lence cenain args prehate opton “The lease is secured by rarkng charge o A. NIL (lne 20, 20158. NIL millon) overimmevatle assets ef the Corp, personal uaratees cf wocirecion and security deposit equvalert to 01% to 10% of the faciity arount. Implrate ef tun on ease varies ranging trom8.75¥ to 1.81% (xs 30,2035: 10738610 14.67%) fa. “Text, pais and maintenance, insurance andother cost lating tthe lease assets are bore bythe Coan Current maturity icles, 85. 1364 milion in respect of overdue. The Company has applied 19 all ending Banks tor restructuring of oustandnglcan lables. (41)& aquerta textite mitts Limited NOTES TO AND FORMING PART OF THE THE FINANCIAL STATEMENTS Forthe year ended Je 30, 2016 2 24a 242 23 a 235 285 247 30" lune, 2016 30" June, 2015 Note Rupees Rupees DEFERRED LIABILITIES Defemed taxation zea 187,002,657 214,174,739 Deferred taxon surplus on revaluation of preperty, plant and equipment 491,344,654 535,568,198, Staff retirement benefits -aratuity 243 105,040,220 80,021.946 TTS _ wT Deferred taxation Defared tax credits J (datits) arising in aspoct ol: Taxable temporary differences (defered tax abilties) Accoloatod tax depreciation allowancer 175223009 223,242,113, Deferred debit arising in respect of provisions, taxlosses and refunds s7968 (9.167314) m2 187002657 __218,174799" Deferred debit arising in respect of provisions, taxlosses and refunds Opaning balance 219174759 245,256955, Closing balance of defered taxliabilty reversal of eiffered tax liability (187,c02657) (218,174,789) DATEL 31,082 156 Staff ceirement benefits gratuity Movement inthe net latilty recognized in the Balance sheet (Opening net lablity 80,021.94 103,497015 Expense for the year in profit and less accaunt 2a7eg3nt 23,371,842 Remeastrement recognized in other comprehensive inceme 30307739 9.529.909 ~~ 139,209056 135,338,766 Benefits paid during the year (35,108,836) (55,376820) Closing mat liability . 105,080220, 00,021,946, Expense for the yearn profit and loss account Curent service cost 22437675 15,882,133 Interest cost 6.351.606 7,489,709 Bayes. 2337182 Historical information 2016 2015 2018 2013 roe Present value of defired benefit ebligation 4105,010220, _90.021,946 __ 103,497,015 __ 94,110,471 _ 77,734,605, General description ‘The scheme provides for terminal benefits for all of its permanent employees who attaln the minimum qualifying petied, ‘Ancual charges is made using tho actual technique of Projectad Unit Credit Method. 30" June, 206 30" June, 2015 Note Rupees Rupees Principal actuarial assumption Following ae a few important actuarial assumption used inthe valuatin, % * Discountrate 833 8.75 Expected rate of increase in salary 0 + 10.00 Expected gratuity expenses for the year ending June 30, 2017 works cut Rs, 30,694,004). (42)& quer texte mites united NOTES TO AND FORMING PART OF THE THE FINANCIAL STATEMENTS For the year ended line 30, 2016, 324 2% 2 m1 30" une, 2018 30" June, 2015, Note Pupees Rupees ‘TRADE AND OTHER PAVAALES Trade Cresters o7asésa0e —702,161521 Accrveibiities 2493815536 290,250264 Werkorproft participatn fund asa 23550 173065 Werker! wellare fund - 2,600782 Unclaimed avicend 36487 454295 Others 3052 azigase TRON 105775072 ‘Workers! profit participation fund Balance atthe beginning ofthe year we 11777087 ‘location forthe yeat Ba = a Interest on fund utlzed inthe Comoany/s business 3521 2 459919 - 459.919 179066 12,237,006 Less: Payments dung the year (376516) (12,087,940) ‘Balance at the end of the year 2 379066 Interest on workers’ profit partipation fund has een provides @ Nil (une 30,2025: 200%) per anrum. ACCRUED INTEREST / MARK-UP ‘Accrued interest / mask on secured “lore term finances accents ETS ~receemable eaptal- Suhuk e0118379 _26435,138 shoct tem borowings 290612278 158290,115 Tessar aersro 708 ‘SHORT TERM BORROWINGS ‘Secured - tanking companies Finances urder maricup arrangement ma 281,319,984 4,298,729,064 Unsecured Bock oversant m2 Boraso7 370 Aegrezate facies amounting to Re. 3102 bilien (Lune 0, 2015: Rs. 4.737 Blin) were avaliable to the Company from Lanking companies. Theze are secured agsirst nypothecation charge and pledge of stock in trade, book debts, lark & machinery, export bill urderenlecton. These loans cary markup at the rate ranging from 74% to 9.90% (line 30,2015: 9.33% to 13.57%) per annum payable quartety and cn the maturity dates. The above faclles ae expiring on varius dates andrenewable annually, ‘This represents cheques [ssue¢ in excess of bank balance. Since there was no barking facliy, this has been souped unde Book overdraft. LOAN FROM DIRECTORS AND OTHERS Unsecured Due todirecion 5691872 5,749,006 Due toothers 5724196 2.738536 Ta 1e8 GASH EOE These are non mark up boaring nd unsecured, Those are renewable and duc on vavicus dates within one yea, (43)& Quetta TEXTILE MILLS LIMITED NOTES TO AND FORMING PART OF THE THE FINANCIAL STATEMENTS. For the yearended ine 20,2016 29 CONTINGENCIES AND COMMITMENTS 29.1 Contingencies Guarantees issued by banis on behalf of the Company 257,255,285 __281,755, 292. Companyhas filed a sult No. 202 of 2011 against Enshaa NLC Development (Prt) Limited before the Honourable Sindh Cour, Sindh seeking declarations, pozsezsion, permanent injunction and/or recession and damage in respect o reservation contract followed by an agreement executed between parties whereby the defendants are liable to cons the project. The matter is pending for hearing and opinion ofthe legal advisor ofthe company is favourable and there likelinood of unfavourable outcome or any potential loss. 293 The Company has filed petition under W.P.No. 2420 of 2011 against the recavery of Electricity Duty on self generat ‘electricity and obtained stay order from Honourable Lahore High Court and opinion of the legal advisor ofthe corrpa favourable and there is no likelihood of unfavourable cutcome or any potential loss. 294 The Company has filed petition under Suit No. 1718 of 2015 against Gas infrastructure Development Cess (GIDC) Act. fon Gas Bill has been challenged and filed suit in Honourable Karachi High Court and opirion of the legal advisor ¢ companys favourable and there is nolikelthood of unfavourable outcome or any potential less. 295 The Company has filed petition under W.P.No, 4665 of 2016 against Gas Traiff Difference recovery on OGRA deci Ges Bills has been challenged and obtained stay order from Honourable Lahore High Court and opinion of the lagal ac of the company is favourable and there Is nolikelincod of unfavourable outcome or any potential loss, 236 Commitments Cll work Confirmed letter of crecit in respect of: = Raw material 7 32,530 Stores and spares ‘ 7,201,504 4,451 7201504 36,382 (44)TLE MILLS LIMITED NOTES TO AND FORMING PART OF THE THE FINANGAAL STATEMENTS For the year ended une 39,2016 C soead Sales (seatsees 2015 30 SALES Yarn 592250753 Fabee 985/523,222 Waste - Rew Coston & material A omer Processing Las Sales tax : iss 3.100.966.135. 2.381,988,707 SSIS Ta 2.466100,387 3347,205987 3952,351,0 _6,449,200,103 1otez40,s69 1,220,6134832,039,763750 3,602<02150 26598,626 44.027,178 25598625. 44,027,178, 791008,082 24553 73,009082_175.924553 : 4.938965, : 533965 amon among BOLSTLAS 473.0326 5,379,705,428 0 375S52Se {(993592,470) (10107258) __(99,592470) (101,077,258) SAS, SESS 376) SIS TOMAS 30.1. Exchange loss ce to curency ate fluctuations relating to export rales araunts to Re. NiY- (June 30, 2015: Rs. Niexchenge gain) ha bean included in export sles. a1 costor saucs aw material consumed Salaries, wages and banefite Stores and spares consumed Fuel, power and water Rent rates and taxes Insurance expenses esas and maintenance Vehicle runing ané raintenance Entertainment expenses Communication expenses Otterexpenses, Processing charges Depreciation exrerses Workin process ‘Opening stock Closing stoct ost of goods manufactured Cost of Raw cotton & material (Cost of other materal sold Friched goods ‘Opening balance Goods purchase: (Other materiel purchase Yam Purchase Closing stock 30" June, 2016 30" June, 2015 Mote Rupees Rupees aus 46610198 6,446,337,085 32 752219498 360,472,758 254229282 415,091,998 33 978,010,169 1,191,308.588 3.220015, 967,38 2ean1113 26322402 sata 14240554 sorssz 15911360 i 3.613.883, S237,887 139488 41982,002 456.211 21835,150 eu 249,630,368 6364875541 9,267,462,898 224556388 25,751,758 (151053,528) _ (224556,328) 73492860 _1.195,370 58836601 9,258 65568 95462,818 a497—.681 (433,268) S330 20 958697590 956,407,283 1,032081,036 : 4,938,965 35067,382 22930;980 35907382 27863.985 (.09561a,18q) _[es607203) TET TOT (45)& ers Textite MILs LIMITED [NOTES TO AND FORMING PART OF THE THE FINANGAL STATEMENTS, Fee the year ended lure 30, 2016 31.1 Raw materialconsumed . Opening balance Purchases Less: Cost of Row cotton & materi Closing stock 30" June, 2016 Note Rupees, 2,706,007,035, 2,735,254685 Seen 27708 (98.4928:9), (2,299,168.689), ‘_apes.610 188 30" June, 2035 Rupees 2276,770,825 7080,551,316 ‘935722781 (208,978,681) (2705001015) ES 1.2 ‘Salaries, wages and benafits include Rs, 54,532,935/- (hune 30, 2015: Rs. 30881,384/-)inrespect of staff retirement benefits. 313 Fuel, power and water leetnety purchase from out side lecucty produced by self Water charges as charees 31.3 Electecty produced by self, Salaias and wazes Fuel and store consumed Repair and mairtenance Other expenses Deoreciation aossagess maa 559,046,866 3374650 708 3132 18,754,872 434,343 526 "724,200 3,935,835 one 1,588,433 Temas 508,870,176 667 382.139) 3,987,563 30,508,710 FESEDEST 21,190,266, 597028866 2,162,500 3543.26 33920581 Tans 131.32 Salares, wages and benefits include Rs, 1.389,381/- (une 30, 2015: Rs. €46036/.) in eapectof staf ratromant benefits 32. DISTRIBUTION cost On exoort sales Export davelopment suscharges Freight Commission Clearing and forwarding ontocal sles Frelght Commission (48) 3,922,293, 24119686 13,886,038, 60755435 roato34 19,265,583, 39,307.77 liens 13,384,375 92322.443 77320101 35,316,373 238,153,502 29,640,105 36381,381 57021576 Sa& cuera texte mis umireo [NOTES To AND FORMING PART OF THE THE FINANCIAL STATEMENTS Forthe year ended tune 30,2016 3 wat 6 Note ADMINISTRATIVE EXPENSES Directors remaneraon Sales and benefits : aaa Printing and statonscy Comrmuricatin Traveling andcorveyarce Legal and professional charges Auditor’ remuneration a2 Rent rates and txee Elesticty, gas ard water charges Fees and subscription Aepais andmaircenance Chany anddonaton m3 Depreciation ou 30 tune, 2016 rupees 540,207 2044938 2897,366 2237793 e7szoe 11460,c00 2300.02 4.505,781 2494.18 3804251 1493337 4581536 Sr 30 June, 2015 Rupees 5.297588 n367716 2.508730 1210964 5.6275, £05,000 amas Leas ‘34609 2.05759 Lsr263t 254375, 200000 5085283 Sa Salaries, wages and benefits include Rs 3,258584/- (lone 3, 2015: Re, 1174,260/,inrespect of tal eierert benefit ‘Auditors remuneration Half yay view foe Code of comonte govemance review fee ‘Out of pocket expences Directors and ther spouse have no interestin the donee. OTHER OPERATINGEXPENSES Diuriten in the fal-value of investment loss onsale of shares lossonsslerofvetice Interest / markup on Short em frances eng term cans sleate worker! prof parelpaton fond Bank crorges, commision and thers charges +n saving counts & TOA OTHER INCOME Dividend income From other than fnandalasets Capital gain onsale of shaves Prof en sale of Vehicle 622 Profe onsale of property 632 Rema incore ‘Aaprecaton inthe flr vale of investment (a7) 1537300 185,150 30,000 25,000 as.e02 peers Towa 379,388019 7a8g785 2455.23 10070853 4508701 2549026, Tee aiow rs0248 125580 ‘azasat 806.605 32a 1.387300 185,39 30000 25000 T7783 sr4pas Tes zr ‘aags 5,514,702 s17.219903, 3,738,195 257,02 ao7.16 12302 19673445 3eau7e2 ar& Quetta TeXTIve MILs UMITED NOTES TO ANO FORMING PART OF THE THE FINANCIAL STATEMENTS For the year ended Sune 30,2016 c, oy 430" june, 2016 30" June, 2035 Note Rupees Rupees 37 TAXATION cumrent ferthe year 4 sasias $8,477,324 Defered (24,052,608) (29,990,410) 380.363) 0a. t86 18 38 (LOSS)/EARNUNGS PER SHARES (Loss| / profit atertaation 735,435,120) __ (392,014,267) Number of shares Weighted average numberof ornary stares 33,000,000, __13,009,000 Rupees) (Less\/earaings par charo -bssie and listed 131.96) 3035) 38,1. Thare iene due elect on basic eamings per share 39. CASH GENERATED FROM OPERATIONS (toss) betere taxation (a.724,15,283)—(323527.253) Adjustment for items Involving non movement of fund Depreciation 236,800,737 238,339,263 Fiancalcharget 411559,765 613,521,108 toss /(gaie) en sale of Vehicle 153312 (12,302) {Gain} onsale of property (265.840) (19.6735) Dividend income (33,027) (257,502) Frosison for eratulty 28783 23,371,802 Provision fr aii nf (apprecisten} in the value of investment (205,605) rspan,71s 913,308,604 Profit before werking capital changes . (ea7ansro) —_s80781,01 (tnereass)/decrease In current assets Stocks, stores ard spares 1404084380 (76,444,370) Trade debts 213922472 76777,262 toans and ackarces, prepayments sales tat and (aecoese) 9394321 other recelvaties 12503,754 (12,583,754) exs2sses1 «71524870 Inceasencurent Iblies ‘redo, ecred and other tes wasn aro se are 40 REMUNERATION OF CHIE EXECUTIVE, DIRECTOR AND EXECUTIVES ‘The aggregate amount charged Inthe finarcal statements for emaneratien Including al bereits to Chief Exceutive, Drestors ord Executives ofthe Company is as fellows: Chiat Exeatve | Dieaors Brozuivae mais__[ 2015 |[__zoe [aos pos zms Remuneration ams 1601344257852 437450 ——«30:842,847 44,382,827 Tamas ye STE 415750. _—=BOSDNAT A382 TT Number of persons 3 # 404 chef execute, feur tects and certain executives ofthe Company are provided with free maintained veiele (48)& guerra textive mitts umireo NOTES TO AND FORMING PART OF THE THE FINANCIAL STATEMENTS Forthe year ended lune 30,2016 41 RNANCIAL INSTRUMENTS ‘The Cempary has exposures to the following sks trom ts use of nancial instrament 424 -Credt sk 412 -Lioudity risk 413 _Maretrick The Comoany’s floard of Directors has overall responsiblity for the establishment ard oversight of the Company's risk ‘maragemant framework The Board is sls resporsle for developing and monitorng the Company's nsk management policies 411 Ceci risk 4111 Exposure to credit sk Crest sk isthe risk of Rnancillozs to the company Ifa customer o coumteramy toa fnzndal instrument fils to met its centrtutl obligations, end arses princpally from the long term imestments, Jong term deposits, trade debts, loons and ‘2evanees, trade deposits and prepayments, other recelvabes, other nancial agsets ard cash and bent balances. Out of otal Financial assets of Fis. 341.798 milion (une 30, 2015: Rs. 521.226 millon), nancial assets which are subject to credit sk ¢6r9g3t6 {0 RS. 340.918 millon une 30, 2015: Rs. 520.509 rullor. The caryirg amount of francial assets represent the ‘msximem credit exposure, The maximum exposure to cre skatthe resorting date is 38 follows: ao" June, 2038 30" June, 2015 Note Rupees fupees Long tom daposite e7s37881 31,380,426 Trade debts 12016685 234088,557 Other Fiareta assets M3081 1.174249 Loans and advances 65350375 su.g4241 “Trade deposits and short term prepayments 2585997 9.138.077 Other receivables : 12583,754 (Cath ana bank balances exov7as1 —_81225,888 33070683 523775793. 431,12 The maximum exposure to credit ris for trade debts atthe reperting date by geosraphieal region Ie 26 followe Domestic 120,186,185 334,088,657 Spot 3 oie — HaoeST duct is a3folows: tam es7aiser 28483,462 Fabre Sasa Tae 41.13 The maximum exposure to credit rick for debte at the reporting date by type of 20186165 shanae.cs7, 42.14 The aging of wade debts ot the reporting date as olows: Not past due 57,646,438 153,589,215, Fast ue 0- 30 days 32003,166 95,557,675, Past due 31 -90daya 25908288 72,019,583 Past cue 91-1 year : 462326 2an2es More than one year 5 EE 412 guiiy rik aul tk the sk that an eri wil encounter dfs in meeting ebignneatcoited with Sania abies, Prater audty tk managerent implies maintaining sufdent cash ar the avalably of funding oun an adequte srwount of commited cred facts. The Company's treasury cesarent malas Ret in funding by nalntaing siay under commited eres tines (49)& querva texrite wits ured [NOTES TO AND FORNING PART OF THE THE FINANCIAL STATEMENTS Fo the year ended June 30,2016 441.21 Financalablltesin accordance with thelr contractual maturlles ae presented below: (SSS ie eee eee ‘Garrving |) Contractual | coq yaar |[eetweena tos] s yearsanc oer aeaie SSS Le = Tupeer Lang term finances 11031,550908 917,810.11 104519156 613,320,545 Redeemable capital - Suku ceam762 BL 1Naee 422,16 760 450,268,588 2 losnirom recor ara cows sutoninnet 160,727 160,726,470 ~ 160,726.70 Frnance lease DBO «2413818 1,395,598 16,818,220 : Trade and cther payables 41223,013200 1223013200 3,223013,200 : ‘Accrued interest / markup 355229661 386,329,661 356,329,661 : : Shot ter borrowing aprmon7am 3.269.972.0901 3.269.972.094 2 : SL SRT aaa ASOT [Riera ales Z OST Girne |p Gontartaal || soa ex |[betweendto3]|Syearsand amount, ash flow we teey rs above ee ans ene] tong te ges asvssrewo aaesasen —ai2647a 19531736 feces copa - Sek eo7siezes 4815200275 240,622.17 3004054248 9.966001 Leanfendreen atdaen itonintet 160726470 160,726870 = aeu726870 : Finance lease wasr2ee = aiezs. 7427921 7,008 320 Trae an othe payables sos7s7sor .osrarson 1007875072 5 ‘Accrued Itrest fray as7sva7ca ‘187970708 187370,708 Sr term Bove zsa7a9aeh 4963797905 496,797,995 141.22 The contractual cashflow relatirg to the above finanlal lables nave been determines onthe basis of arkup / Interest rates effective atthe respe:tve year-end Tha rates of markup / interest have been disclosed Inthe respective notes to these Ananda statements. 413. Market risk Market ssh the 2k that changes in market pice, euch a forsign exchange rate, Interest rates and equty pies wl ffoct the Company's income or te valve of is holrg ef maneal instruments. ALBA Currency rick The commany i exposed to cumercy risk on rade debts, brewing and impor of raw matedal and stoves that ae dencrinated ina currency other than the respective funcional curency of the comeary. primarily In US Dollar and Eur. The curences in hich thasetranesetions primary are denominated ie US Dollar ar Eur. The cama expose foreign currency isk sas US Dear Eero Others Rupees Trade debts 2016 = = ‘Trade debts 2015 ar The fllowing signifcant exchange rates applied dung the yea ‘Average rates Reporting date ratse 2016 2015 2016 2015 UsDallr to Rupee 304.00 700.50 30470 ToL 41.32 Senstivity analysts 5% strrgthoning of Fak Rupeo against the fllawing curences at June 30, would have increased / (decreased) equity and fit ard loss bythe amount shown below. The analysis assumes that all cher variables, n purteuar interest rates, remain constant 5% weakening of Pak Fugce against the above curencies at pricds erds would have tad the equal but coposites effet onthe sbeve curencias tothe amount shown below, onthe bat thot all athor valor remain constant. (50)& aquerva rextite itis uimited NOTES TO AND FORMING PART OF THE THE FINANCIAL STATEMENTS Fer th year ended lure 30,2016, seh une) 2018 30 Ane, 2013 note Rupees Rupes usbolar : = ‘The sensitivity analysis prepared is not necessarily idjcatve ofthe e'fets on prof forthe year and lablities of the company. 413.3 Interet rate rick Interest rate isk's the risk that the farvalu o future cashflows af 2 nancial inerimant wil uctuae because of charges In marke terest rates. Majoty ofthe interest rate expecuratarees from short and long tera borrowings from bank ar term deposits and deposits in PLS saving accounts with banis. At reporting date the terest rte profile of the company’s iterest bearing financial instruments a5 follows: sit June, 2015 ao June, 205 Rupees upets xed rate instruments Frnancial assets 7 Lis a Financial liabilities isoieness, 55475508 ‘Variable rate Instruments Francia assets Sasa cal z Financial liabilities ‘L339 005, "4327102730 414 Falrvalue sensitity analysis for fued rate Instrumente ‘The Company doesnot accountfor any Axed rate financial astets and liabities at alr value thrcugh profit & loss. Therefor, = charge in markup / interest rates at the reporting date would nt affect sect loc aceount. b 4415. Cash flow sensitivity analysis for variable rate instruments A change of 100 basis points Inincerest rates at reporting date wosld have increased / (decreased) ecuity and prof e ess by ‘the amounts shown below. This analysis assumes thet all other valle n paricular foreign currency rates comain constant “The analysis peformed an the same bass for une 20,2016 Profitand loss Equity 100bos s00bes 109 bps sDobpe Increase decrease = ineresze decrease rupees CCashflowsensitvty-varableateinstruments 2016 __ 30431490 _(39.<31.400 : - Cashflow sensitivity: varable rate irstrumerts 2015 _43271,02730 __(33.271027) 416 Fair valuecof financial ascets and lailiiar ‘The carving value of all financial instruments reflected inthe financial statements apercnimate to ther fair values. Fair value ie 2 - sous TERS OE SOT TOTNES HOTA E Saas —ToaTRssL Inter seers RANKED 9t8,.03255 + Sania eras mEETLAD 157896508 Stet argo) (5564859) Gas (3551240) psssze70) —_ woxor28) Total tes TATE —TSIGHS6S ODS SSERB IN SHGH A TALI GIEAAIGAST— NNSIATLNS coined iates” 4c (aentassom) gan1a7719) Ro@E20) (G3KeAzT876) _GS994856) _fes7BLAT) _(7aAIHNA60) (14338 267.202) Gross prott Tawa) — Santos Gear — anaes < Gass) REBT stdin cst +s eRe aaa] Esme] GTO [aaa] eaaaa] remmisraoveeene: as |_(s8szsze3)| _ussn7za0]|_(aiaersea]|_anassr7] : 2 | Nssomso)|_“szomeen (9697608) (203262609) (3.179499) 168. 912-05) : = (625590) pe726.05) peraeng nests TabaIaIa) — pimas@ _GmaeeG — aT Tame secre 122 Segment assets 5656856177 7aILASGATs 22005718 265792 TSSAIDSIL —THADISE — aSSESzeNT 10740433,707 423 Unatocated sets sogeosto —_aasan4273 rE 124 Segment tabs ssccanace —7aztgans —askoRgS—ONSHIOS —oLTOLaNOBgTA7eL LION LOsTATS ETE 125 Unaocated lbs cotganrane 6365319281 amps, 125 Deprecaton memes ATR SAD «BAN IST —asAS Gams __ RE GO 122 tner segment peng “arsatns ang the buses segments ae corded a as length pes wig seriste anton Nees 128 Tha wor moje castemer carey ichfomed 10 prcentor nor the compan’ revere& aquerta Texte MILs uimiteD NOTES To AND FORMING PART OF THETHE FINANCIAL STATEMENTS forthe year endeé lune 30,2016 43 BL 432 433, RECONCILIATIONS OF REPORTABLE SEGMENTS SALES, COST. OF SALES, ASSETS AND LIABILITIES Sales Toil sales forreportable segment Elimination of inter segment Total sales Cost of sales Total cost of sales forrepertable segment Elimination of inter segment Total cast of sales Ascots Total asets for reportable segments tong term deposits Other financial assets Loans and advances ‘Trade deposits ard short term prepayments Others receivables Income tax and sales tax refundable Cash and bank balances Unallocatedassets LUabuities Total labilites for reportable segments Long term finances Redeemable capital - Sukuk Loan from directors and others Llabilties against assets subject to finance lease Deferred liabilities Accrued Interest / mark-up. Short term borrowings Loan from directors and others Unallocated liabilities (54) Note aa aa 422 a 2 3 14 16 423, 424 20 a 2 23 24 26 27 28 2s 30" June, 2036 Rupees 6,064,828 457 “(794,671,499) 30" June, 2015 Rupees 11,751,421,245 (1,575,345,494), 5,280,152,958_ _10,175,475,651 7,224,389,360 (784,571,499) 430,717,661, 8,855,552,807 67,437,881 | 133,051 65,390,375 25,545,097 181,017,346 61,097,161 400,501,610 9256 255,407 1,223,013 200 41,031,550,908 663,337,643 160,725,470 24,341,682 783,387,531 386,323,661 3,018,907,324 11,426,168 6089,897,388 11,838,147,212 (2,575,945,494), 9,562,201 718, 10,749,433,787 31,380,424 1,174,249, 51,634,204 9,138,077, 12,583,754 202,667,637 81,225,888 389,808,273 33, 239,238,060 | | I 7272, 930,587 157,957,640 697,518,288 160,726,470 28,372,866 823,764,943 187,970,708 4,298,729,264 8,483,602 369,529,381 TAST 408 453(ss) & qwerra rextive mitts unwed [NOTES TO AND FORWING PART OF THE THE FINANGAL STATEMENTS. For the year ended lune 30,2016, Note 4 cost oF sates Rew iatefalcorsumned #4 Stores and spares consumes Processing Charges Soares, woges and benefits Fusl power and water: Intersegment Otters Repsie and maintenance Insurance expenses Rent, rates and taxes Veh raring ancimaycerance Enterainment expenses {Cemmuniction expenses (Otrer expenses Depreciation expenses Work In process Opening stock Closing stock ‘cost of gooes manufactured Cost of Raw cotton & mater oct of ether material colt Fined goods Opening balance Fisted ecods prcnase: Purchase Yam purchase Closing stock pening Werwg Power Generation Comgany ‘hve, 20630" ene 205-50 lune, 20153 ane, 21S Jure, 2036 Avene, DHS Wine 206 HP Hune 2015 Rupees Rupees Rupees Rupees upees Rupees: rupees « Rupees 3109,5565%6 |[_ 490,806 396 || aara.r7e 303 | 2asnoi008 7 = |[ amiseai || 7asaco 00 154,t03,707 |] 235,599,053 |] 991345,534|| “17s.492001 |] 494,803,526]] s97.028,66]| 749,172.767|| 012,135,960 : : 21,838,880|| _36,329503, 3 2183550 |] 36329,503 598,255,906 ]] 075,393,855] 153,963,512|| 185,138,903 |] 18,754872]| 2280.66] r70.974,370|] —eanosa.i26 a02.046274 |] 531,659393 | asoasqa7s|| 26,102,106 ssu276s50] 72,130 207.410800 || 27450486 |] s49,352821|| 248,962,402 5 7a] s2aace49 asesaea |] 9909,821|| 725470] 42na33, 724200) 2,102,500 6035018 || 6.403.058 379979%2 |] ag.aoa2i |} 6aosazzi|] 639,382 : 2eaorias|] —26322,408, 3.230035 97,836 : : : : 3220015 ‘967,834 zoa7'|} 13,886,734] 2,0623585|] 4014626 : : so75732|] 15911,360, 2sn2967|| —40r8,189| x070876|| 3,209,308 e 390303 5257467 anoass|} 1.610.387 783.589 ‘s1616 S : 1384.88 11982,008, 3.667316 |) 2.749.663, sasasé |] a130sa3|] ayasass|| asaaae arsosas |) 19832,672 s79.1g0es ||__193.089,782||__eo11302||___63303357||__ax'sus.a||__ag20081|| 292210801 || _290212,020, 4791051978" 6854,410,642 838,508,200 3,323,125,607 589,846,866 667,802,139 7,149547,090 10,843400,208 4300288 | i025 580 |[—_tieaseaeo [as ate 08 Te4ss6 308 || aaa 7a 8 (29,269355)]|__(108,100,280]|__(51894,179||_ (116,456,100 : (251003,2e]| _ (224326 20 930933 3.725362 561927 (52990) 73,892,860 4.195,370 37HRIIOT GAS 106,001 1 NS,TNGAAT —3320595,e1 SSSR REE CET RRLIIG 7,250 FOO ION O03, 158 5492810 204,978,481 : 95402,819 204970,¢01 f (938.968) : (4928,965) SRSSATS 705 7,05E 205,72 “ASUS ANGI SUSIE AIS SHOBAERRG” GGT RARLGD THESIS 1,ce46a.a74 BULS0R858—355,750300 6asaIR3eS C72. 200,606, 5 se5t07283 1032081,036 z aes =] % 453865 ssoo73m||__2290980||_ 35007382||__22930,200 35.067382 27,809,985 : 39007,;82 27,869,945, (60s.166875) (328,088,888) (aHeSLAM) —_(ea4re.285) (ae0seu8,184) (906 407,203) 4604,365 093 7,121,877,197 200,077.20 FIAKATT ATE 959,545 806 _ 667.802,539 __7,024,300,160 _ 11,136047,212(9s) & vera textite Mis LIMITED [NOTES TO AND FORMING PART OF THE THE FINANCIAL STATEMENTS. Fer the year ended June 30, 2016 Spiening Note Rupoer 44.1 Raw material consumed pening balance 2.349,160.054 1.887.615.6584 355,846,961 Purchases: Pape 389,155,171 compan iP une, 206 30PHune, 2015 Rupees Rupees 2276770825, letersegment ter 08 105 35 10,200,281 ost of Raw cotton & material Closing stock 2.418.303 596 (356,846,961) ASOT 45 pisrm@urion cost On export sles zs,g00, 169,285,950,voneradea (67) ‘5250240 AALLVULSININGY 9 so0dn sed sede soosry soodey sd scr seairy ston Stoe"eune got SUOL"aunryoe_—_—STOR"AUTY ge _STOR"AUNY oF _STHR"BUNT DE __STOR"BUN JOE STRUM CE OR >UNE OE Tamaioes RETRO TARO Tame Tae 9102 0g 2unrpapue eat a 03 “SINAWaLViS TWONVNIA3HL 3HL40 LV ONIAOS ANY 01 S2LON GLIA STH SILA VLAN& auerta textite mitts Limited [NOTES TO AND FORMING PART OF THE THE FIVANGIAL STATEMENTS Fer the year ended June 30,2016, a 30" June, 2015 30" June, 2013 Note Rupees Rupees TRANSACTIONS VII RELATED PARTIES The related parties comprises dirstors and key management personnel. Amounts dus to related parties are shown in th elevant ‘otes tothe financial statements. Transactions with related partes ae disclosed below: Hatere oftranation Relatonehip oan recelve/(paid)- et {ey ranagement personae 2927565 1019672 Silaies andotherbeneits ‘ey management personnel spor 5,297,584 “The company contiues to have @ policy whereby all transactions with related partes are entered at arms length grice using admissible valation method and expenses are charged on actual basis, PLANT CAPACITY AND PRODUCTION Spinning “otal no of spindles installed 73,438 73488 Tota no of rotor inetallod not 08 [Average no of spingies worked 65299 70x19 ‘average no of rotors worked 2s7 aor Numbers of shift worked pr day 3 . Capacty of industal unit after conversion into 20/5 chunt - KGS. 2943815 -23,88125 Aetual prediction after conversion nto 20/5 count KGS 47345148 20,609,788 Itislificul to descibe the preducton capacity In texte Indsty since It fluctuates widely deperding upon varius factors such as court of the vam spun spindles speed twist pr inch and raw material used te, Weaving ated capacty converted into 69 picks “Square meters yo7eaaia 70,763,018 ‘Actual productln converted 10 60 peks» Square meters a2s2z4si 6,131,267 “otal numbers of looms worked 24 234 Nurber of shits worked per day 3 3 [eis cificult to describe the production capacity Ia texte Indust slace Ie uctuates widely depending upon vaseus factors such 98 production of fabric speedo looms ricks perinch ané ew material usedett, Power Plant Installed capacity , Mw 362 362 Installed capacity per hour per day wnt aura na Prime capacty Mw 20 20 stand ty nw 162 362 Installed prime eapalty per hour per day rt 1752 752 ‘Actual zenerated per hourper day art 7138 ma Reason for Short Fall it Any ‘The instaled capacity Includes the stard by generation which is only wed ease of emergency shutdown ofthe prime engines, dueto Unavaratiity of Gas. NON ADJUSTING EVENT AFTER BALANCE SHEET ‘The Beard of Directors have proposed 2 final cash dviderd forthe year ended June 30,2016 of Rs. NIL/- une 20, 2015: Rs. NIL) per ‘oxdinay hare amounting to RE. NIL /- (ira 30, 2015: Re. Hl at thelr sein hald on October 07,2016 for eprroxal ofthe menbers ‘atthe Annual General mecting tobe hele on October 31, 2016. These Rrarcil statomants don't reflect this Impact (58)& overatextite Miuis umited [NOTES TO AND FORMING PART OF THE THEFINANOAL STATEMENTS Forthe year ered June 32, 2015, 50 CORRESPONDING FIGURES CConesponding figures have been rearranged and reclassified, wherever necessary, for the purpose of better presentation and comparison, the effects of which are not materia st NUMBEROF EMPLOVEES 30" June, 201530" une, 2015, ‘otal numberof employees as at 3a sant ‘Avemge ounber of employees worked ding the year 321s 3439 St GENERAL “The figures have been rounded of to the nearest Rupee. ‘53 DATE OF AUTHORIZATION FOR ISSUE statements were authoxzed for 'ssue by the Bourd of Directors ofthe Company en October O7, 2036. Taig iaBat_ Omer KHALID Chief Executive Director These fina (59)& quertatextite MILts LIMITED Form of Proxy Ie ot being a ‘Member of its Textle Mills Limited, holder of. ‘Ordinary Share(s) as per Register Folio No. hereby Appoint Mr. 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 heid on October 31, 2016 and se: am at any adjournment there Signed this, day of, 2016. Signature across Rs.5 Revenue Stamp Witness 1 witness 2, ‘Signature Signature Name Name nic cnc NOTES: 1. _ This instrument appointing 2 proxy shall be in writing under the hand of the appointer or his attorney duly authorized in wting a ifthe appointer sa corporation either under the corrmon seal or under the hand of an offical or attorney 30 authorized. No person shall be appointed es proxy who's not member ofthe company qualified Io vote extept that a corporation being a member may appoint a person who is not a member. 2. The Instrument agpointing a proxy and the power of atoxney or other authority (ifany), under whichitis signed or @ notarialy certified copy of that power of autherity shall be deposited atthe office ofthe Company not less than (forty eight) hours before the time for holding the mecting at which the person named inthe instrument proposes to vote, and in defautt the instrument ofa proxy shall not be treated 8 vali 3. COC Shareholders or thelr Proxies should bring thei oviginalCNICs or Passport alone withthe Participant’sID Number ‘and thelr Account Number to facitate their identification, Deal procedure Is given in Notes to the Notice of AGM. (61)QUETTA TEXTILE MILLS LIMITED Cumpiu fle duit beheld Fp Pbk spite let WL FL ne -al Sux Taegu etree! rte Bre ale ef INC ene temo LT wolf ee key | obit eA Po ww) we PULepele. Bg kind Pistons fEEMP yao LL LL AF: PES PA A Li. (oe dienal ight hee lB PS ole INSEL Ua L Ene hare eS se hihepl Rgeied, nbs PievCS PRS BEL AoIS', 2 hep MG Lis SEW SOSP PBL PEL AOL tren BPE PELD Sead 58 ai SM Pret aca WRAL STAIR igL wot ALIS -3 we Vn LIL AGM Ae AE Eo