Statement of Financial Position 2011 to 2015

As of June 30, Note 2015 2014 2013 2012

Assets       Rupees              Rupees               Rupees               Rupees       
Non Current Assets
Property, plant and equipment 4 1,445,092,333 1,061,122,531 804,362,373 677,824,849
Advances against capital expenditure 0 8,186,383 0 0
Intangible Assets 5 70,912,490 80,460,197 81,792,827 196,568
Long term deposits 138,286,621 122,021,733 59,314,888 46,024,907
Due from associated undertaking 6 61,848,166 58,852,166 59,466,610 63,442,757

Current Assets
Stock in trade 7 2,181,058,756 1,711,121,566 1,422,453,811 1,255,671,951
Short term investments 60,000,000 27,548,833 0 0
Trade Debts 8 6,719,502 9,554,623 7,945,454 46,907,845
Advances-Considered good 9 720,111,345 648,820,968 268,706,085 210,496,079
Balances with statutory authorities 10 168,235,292 95,584,834 70,434,805 94,803,752
Mark up receivables 11 103,457 1,524,612 1,584,633 5,746,895
Prepayments and other receivables 12 277,587,265 235,340,678 146,481,957 95,514,481
Cash and bank balances 13 330,798,354 249,580,130 179,495,321 135,018,596
3,744,613,971 2,979,076,244 2,097,102,066 1,844,159,599
5,460,753,581 4,309,719,254 3,102,038,764 2,631,648,680
Share Capital and Reserves
Share Capital 14 685,500,000 685,500,000 442,500,000 442,500,000
Unappropriated Profit 1,436,009,912 1,539,972,085 1,355,288,104 1,079,338,843
Total Equity 2,121,509,912 2,225,472,085 1,797,788,104 1,521,838,843

Non Current Liabilities

Long term loan -unsecured 15 15,621,585 10,621,585 70,621,584 1,169,306
Deferred Taxation 16 117,918,401 92,088,059 0 0
Long term Deposits 106,566,256 105,440,041 81,251,484 66,312,484
Deferred gain 17 251,838 191,490 701,776 1,857,497
Liabilities against assets
subject to finance lease 18 68,268,247 45,751,047 29,349,337 33,909,272

Current Liabilities
Short term borrowings 19 1,990,424,532 906,304,720 457,166,619 315,865,772
Current portion of lease liabilities 18 57,959,995 45,222,320 31,868,750 25,692,901
Trade and other payables 20 948,418,187 862,989,325 623,677,806 660,969,125
Mark up Payable on short
term bank borrowings 33,814,628 15,638,582 9,613,304 4,033,480

3,030,617,342 1,830,154,947 1,122,326,479 1,006,561,278

Contingencies and Commitments 21 0 0 0 0
5,460,753,581 4,309,719,254 3,102,038,764 2,631,648,680
 2011 2015 2014 2013 2012 2011
       Rupees       

521,286,079 26.46% 24.62% 25.93% 25.76% 27.02%

0 0.00% 0.19% 0.00% 0.00% 0.00%
187,000 1.30% 1.87% 2.64% 0.01% 0.01%
25,791,766 2.53% 2.83% 1.91% 1.75% 1.34%
79,664,527 1.13% 1.37% 1.92% 2.41% 4.13%

970,170,380 39.94% 39.70% 45.86% 47.71% 50.30%

0 1.10% 0.64% 0.00% 0.00% 0.00%
6,869,067 0.12% 0.22% 0.26% 1.78% 0.36%
153,367,822 13.19% 15.05% 8.66% 8.00% 7.95%
35,860,004 3.08% 2.22% 2.27% 3.60% 1.86%
10,203,572 0.00% 0.04% 0.05% 0.22% 0.53%
37,740,403 5.08% 5.46% 4.72% 3.63% 1.96%
87,799,693 6.06% 5.79% 5.79% 5.13% 4.55%
1,302,010,941 68.57% 69.12% 67.60% 70.08% 67.50%
1,928,940,313 100.00% 100.00% 100.00% 100.00% 100.00%

315,490,000 12.55% 15.91% 14.26% 16.81% 16.36%

860,167,522 26.30% 35.73% 43.69% 41.01% 44.59%
1,175,657,522 38.85% 51.64% 57.96% 57.83% 60.95%

0 0.29% 0.25% 2.28% 0.04% 0.00%

0 2.16% 2.14% 0.00% 0.00% 0.00%
58,480,484 1.95% 2.45% 2.62% 2.52% 3.03%
2,853,285 0.00% 0.00% 0.02% 0.07% 0.15%
13,453,195 1.25% 1.06% 0.95% 1.29% 0.70%

248,312,526 36.45% 21.03% 14.74% 12.00% 12.87%

8,864,368 1.06% 1.05% 1.03% 0.98% 0.46%
418,751,396 17.37% 20.02% 20.11% 25.12% 21.71%
2,567,537 0.62% 0.36% 0.31% 0.15% 0.13%
678,495,827 55.50% 42.47% 36.18% 38.25% 35.17%
0 0.00% 0.00% 0.00% 0.00% 0.00%
1,928,940,313 100.00% 100.00% 100.00% 100.00% 100.00%
 Income Statement Data 2011 to 2015
For the year ended June 30 2015 2014 2013 2012
Note         Rupees                  Rupees                  Rupees                  Rupees         

Sales 22 9,072,607,917 8,279,805,417 6,924,176,005 5,656,151,022

Cost of sales 23 (5,877,235,408) (5,419,919,126) (4,561,994,853) (3,854,194,909)
Gross profit 3,195,372,509 2,859,886,291 2,362,181,152 1,801,956,113

Operating Expenses
Distribution Cost 24 2,356,626,710 1,792,770,971 1,442,320,017 1,088,330,243
Administrative and General 25 709,658,151 617,115,861 523,269,597 404,099,891
3,066,284,861 2,409,886,832 1,965,589,614 1,492,430,134
Operating Profit 129,087,648 449,999,459 396,591,538 309,525,979

Other operating charges 26 643,076 29,846,220 27,476,527 21,772,347

Finance Cost 27 136,981,993 54,260,175 45,038,707 15,704,065
137,625,069 84,106,395 72,515,234 37,476,412
(8,537,421) 365,893,064 324,076,304 272,049,567
Other operating income 28 20,755,864 39,944,649 61,567,678 33,449,166
Profit before taxation 12,218,444 405,837,713 385,643,982 305,498,733
Taxation 29 116,180,617 221,153,732 109,694,721 86,327,412
Profit after taxation (103,962,173) 184,683,981 275,949,261 219,171,321

Earnings per share 30 (1.52) 2.69 6.53 6.72

 2011 2015 2014 2013 2012 2011
        Rupees         

4,412,147,134 100.00% 100.00% 100.00% 100.00% 100.00%

(3,046,748,118) -64.78% -65.46% -65.89% -68.14% -69.05%
1,365,399,016 35.22% 34.54% 34.11% 31.86% 30.95%

734,404,110 25.98% 21.65% 20.83% 19.24% 16.65%

276,933,966 7.82% 7.45% 7.56% 7.14% 6.28%
1,011,338,076 33.80% 29.11% 28.39% 26.39% 22.92%
354,060,940 1.42% 5.43% 5.73% 5.47% 8.02%

24,729,463 0.01% 0.36% 0.40% 0.38% 0.56%

22,534,671 1.51% 0.66% 0.65% 0.28% 0.51%
47,264,134 1.52% 1.02% 1.05% 0.66% 1.07%
306,796,806 -0.09% 4.42% 4.68% 4.81% 6.95%
34,448,581 0.23% 0.48% 0.89% 0.59% 0.78%
341,245,387 0.13% 4.90% 5.57% 5.40% 7.73%
111,572,481 1.28% 2.67% 1.58% 1.53% 2.53%
229,672,906 -1.15% 2.23% 3.99% 3.87% 5.21% Profit Margin

8.82
 2015 2014 2013 2012 2011
Profit Margin -1.15% 2.23% 3.99% 3.87% 5.21%
Profitability
Return on Assets -1.90% 4.29% 8.90% 8.33% 11.91%
Ratios
Return on Equity -4.90% 8.30% 15.35% 14.40% 19.54%
Current Ratio 1.24 1.63 1.87 1.83 1.92
Liquidity Quick Ratio 42.43% 56.42% 47.06% 48.98% 43.35%
Ratios Average Days Receivable 11 10 8 7 4
Average Days Inventory 109 91
Asset Asset Turnover 166.14% 192.12% 223.21% 214.93% 228.73%
Management Fixed Asset Turnover 528.66% 622.24% 689.02% 718.25% 703.77%
Debt/Equity Ratio 157.40% 93.65% 72.55% 72.93% 64.07%
Long-Term Leverage 257.40% 193.65% 172.55% 172.93% 164.07%
Solvency Ratio Long Term Debt/Equity 14.55% 11.42% 10.12% 6.78% 6.36%
Times Interest Earned 24.11% 440.37% 712.69% 1495.63% 1119.20%

Profi t Margin Return on Assets Return on E

6.00%
14.00% 25.00%
5.21% 11.91%
12.00%
5.00% 20.00%
3.99% 3.87% 10.00% 8.90% 8.33% 15.35
4.00% 15.00%
8.00%
3.00% 10.00% 8.30%
2.23% 6.00% 4.29%
2.00% 4.00% 5.00%
1.00% 2.00%
0.00%
0.00% 0.00% 2015
-4.90% 2014 2013
2015
-1.15% 2014 2013 2012 2011 -1.90%
2015 2014 2013 2012 2011 -5.00%
-1.00% -2.00%
-2.00% -4.00% -10.00%

Current Rati o Quick Rati o

2.50 60.00% 56.42%
1.92 47.06% 48.98%
2.00 1.87 1.83 50.00% 42.43% 43.35%
1.63
40.00%
1.50 1.24
30.00%
1.00
20.00%
0.50 10.00%
0.00 0.00%
2015 2014 2013 2012 2011 2015 2014 2013 2012 2011

Asset Turnover Fixed A s s e t Turnove r

800.00%
250.00% 223.21% 214.93%
228.73% 689.02% 718.25% 703.77%
192.12%
700.00% 622.24%
200.00% 600.00% 528.66%
166.14%
150.00%
500.00%
400.00%
100.00% 300.00%
200.00%
50.00%
100.00%
0.00% 0.00%
2015 2014 2013 2012 2011 2015 2014 2013 2012 2011

De bt/Equity R ati o Leverage L o n g Ter m Deb t /

16.00% 14.55%
180.00% 300.00%
157.40% 14.00%
160.00% 257.40%
250.00% 12.00% 11.42%
140.00% 10.12%
 De bt/Equity R ati o Leverage L o n g Ter m Deb t /
16.00% 14.55%
180.00% 300.00%
157.40% 14.00%
160.00% 257.40%
250.00% 12.00% 11.42%
140.00% 10.12%
120.00% 193.65%
200.00% 172.55% 172.93% 10.00%
100.00% 93.65% 164.07%
8.00%
80.00% 72.55% 72.93% 150.00%
64.07% 6.00%
60.00% 100.00%
4.00%
40.00%
50.00% 2.00%
20.00%
0.00% 0.00% 0.00%
2015 2014 2013 2012 2011 2015 2014 2013 2012 2011 2015 2014 2013

L o n g Ter m Deb t /Eq u it y

16.00% 14.55%
14.00%
12.00% 11.42%
10.12%
10.00%
8.00% 6.78% 6.36%
6.00%
4.00%
2.00%
0.00%
2015 2014 2013 2012 2011
 Short Formulas
PF = Income / Sales (I.S)
ROA = Income / Assets (I.S / B.S)
ROE = Income / Equity (I.S / B.S)
CR = Assets / Lib (B.S)
QR = Quick Asset (asset-inventory)/ Lib (B.S)
ADR = ACR/Sales*365 (B.S+B.S/I.S)
ADI = Closing Stock / COGS * 365 (Inventory / COS)
AT= Sales / Assets
FAT = Sales / Non-Current Assets
D/E R = Lib / Equity
Leverage = Assets / Equity
Long Term D/E = non current Lib / equity
TIE = EBITDA / Interest Exp

Return on Equity
25.00%
19.54%
20.00%
15.35% 14.40%
15.00%
10.00% 8.30%

5.00%
0.00%
2015
-4.90% 2014 2013 2012 2011
-5.00%
-10.00%

L o n g Ter m Deb t /Eq u it y

16.00% 14.55%
14.00%
12.00% 11.42%
10.12%
 L o n g Ter m Deb t /Eq u it y
16.00% 14.55%
14.00%
12.00% 11.42%
10.12%
10.00%
8.00% 6.78% 6.36%
6.00%
4.00%
2.00%
0.00%
2015 2014 2013 2012 2011
 Statement of Changes in Equity 2011 to 2015
For the year ended June 30

Share Unappropriated
Capital Profit

Balance as at July 01, 2010 255,400,000 645,818,616

Total comprehensive income for the year 229,672,906
Issue of share capital 60,090,000
Interim dividend @6% (15,324,000)
Balance as at June 30, 2011 315,490,000 860,167,522
Total comprehensive income for the year 219,171,321
Issue of share capital 127,010,000
Balance as at June 30, 2012 442,500,000 1,079,338,843
Total comprehensive income for the year 275,949,261
Balance as at June 30, 2013 442,500,000 1,355,288,104
Total comprehensive income for the year 184,683,981
Issue of share capital 243,000,000
Balance as at June 30, 2014 685,500,000 1,539,972,085
Total comprehensive loss for the year (103,962,173)
Balance as at June 30, 2015 685,500,000 1,436,009,912
Total

901,218,616
229,672,906
60,090,000
(15,324,000)
1,175,657,522
219,171,321
127,010,000
1,521,838,843

1,521,838,843
184,683,981
243,000,000
2,225,472,085
(103,962,173)
2,121,509,912
 Statement of Cash Flows 2011 to 2015
For the year ended June 30 2015 2014 2013
Note Rupees  Rupees  Rupees 
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 12,218,444 405,837,713 385,643,982
Adjustment for non cash charges / non operating items:
Depreciation on property, plant and equipment 4.1.1 134,000,532 104,944,460 87,853,314
Amortization on intangible assets 17,078,723 20,021,141 13,729,350
Gain on sale of operating fixed assets (1,537,364) (10,920,198) (1,582,184)
Deferred gain (198,090) (510,286) (1,352,073)
Deferred loss - - 264,664
Loss on sale and lease back of fixed assets 1,732,500 - -
Other operating charges 643,076 29,846,220 27,476,527
Finance cost 136,981,993 54,260,175 45,038,707
288,701,370 197,641,512 171,428,305
Operating profit before working capital changes 300,919,814 603,479,225 557,072,287

Cash flows from working capital changes

Decrease/(Increase) in current assets
Stock in trade (469,937,190) (288,667,755) (166,781,860)
Trade debts 2,835,121 (1,609,169) 16,307,441
Advances-Considered good (71,290,377) (380,114,883) (58,210,006)
Prepayments, mark up and other receivables (40,825,432) (88,798,700) (24,150,264)
Balances with statutory authorities - sales tax (20,081,165) (21,945,017) (7,406,062)
Increase/(Decrease) in current liabilities
Trade and other payables 114,506,546 236,941,827 (42,995,502)
Net cash used in working capital (484,792,497) (544,193,697) (283,236,253)
Cash generated from operations (183,872,683) 59,285,528 273,836,034
Less:
Taxes paid (142,919,568) (139,091,187) (83,328,505)
Dividends paid - - -
Other operating charges paid (29,720,759) (20,656,025) (16,363,554)
Finance cost paid (118,805,947) (48,234,897) (39,458,883)
(291,446,274) (207,982,109) (139,150,942)
Net cash generated from operating activities (475,318,957) (148,696,581) 134,685,092

2015 2014 2013

For The Year Ended June 30 Rupees  Rupees  Rupees 
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed capital expenditure (including capital work in progress) (462,766,591) (305,751,817) (199,501,474)
Advance against capital expenditures 8,186,383 (8,186,383) -
Short term investments (32,451,167) (27,548,833) -
Increase in intangible assets (7,531,016) (18,688,511) (95,325,609)
Increase in long term deposits (16,264,888) (62,706,845) (13,289,981)
Receipt of loan due from associated undertaking (2,996,000) 614,444 3,976,147
Proceeds from sale and lease back 12,363,500 - 17,856,500
Proceeds from sale of fixed assets 10,233,579 32,825,494 5,221,577
Net cash used in investing activities (491,226,200) (389,442,451) (281,062,840)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long term loan 4,999,999 (60,000,000) 69,452,278
Issuance of share capital - 243,000,000 -
Proceeds from long term deposits 1,126,215 24,188,557 14,939,000
Repayment of lease liability (42,482,645) (48,102,817) (34,837,652)
Proceeds from short term borrowings 994,924,213 243,851,840 141,300,847
Net Cash generated from financing activities 958,567,782 402,937,580 190,854,473
Net(decrease) /increase in cash and cash equivalents (7,977,375) (135,201,452) 44,476,725
Cash and cash equivalents at beginning of the year (139,355,694) (4,154,242) 135,018,596
Cash and cash equivalents at end of the year 34 (147,333,069) (139,355,694) 179,495,321
 2012 2011
Rupees  Rupees 

305,498,733 341,245,387

54,257,006 40,876,375
26,702 26,400
(1,042,742) (659,938)
(1,254,538) (1,252,454)
- -
- -
21,772,347 24,729,463
15,704,065 22,534,671
89,462,840 86,254,517
394,961,573 427,499,904

(285,501,571) (300,812,102)
(40,038,778) (1,015,321)
(57,128,257) (3,492,600)
(53,317,401) (13,176,924)
3,724,729 -

245,174,846 178,536,965
(187,086,432) (139,959,982)
207,875,141 287,539,922

(155,426,609) (147,202,002)
- (15,324,000)
(18,298,743) (19,663,417)
(14,238,122) (23,132,326)
(187,963,474) (205,321,745)
19,911,667 82,218,177

2012 2011
Rupees  Rupees 

(171,840,082) (71,534,966)
- -
- -
(36,270) -
(20,233,141) (5,472,110)
16,221,770 43,162,433
17,000,000 29,259,000
5,303,097 1,343,500
(153,584,626) (3,242,143)

1,169,306 -
127,010,000 60,090,000
7,832,000 17,320,351
(22,672,690) (13,516,916)
67,553,246 (117,931,872)
180,891,862 (54,038,437)
47,218,903 24,937,597
87,799,693 62,862,096
135,018,596 87,799,693
Notes to the financial statements
Excerptsix from 2015 Financial Statements
1. The Company and Its Operations
Sefam (Private) limited (The company) was incorporated in Pakistan in January 1989 as a private limited company under the C
Ordinance, 1984. by taking over the net assets of a registered firm. The registered office of the Company is situated at 21-Waris
Company is principally engaged in the manufacturing and retailing of embroidered cloth and plain cloth through its outlets.
2. Statement of compliance
These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan and
of the Companies Ordinance, 1984. Approved accounting standards comprise of such International Financial Reporting Stand
issued by the International Accounting Standards Board as are notified under the provisions of the Companies Ordinance
the requirements of the Companies Ordinance 1984 or directives Issued by the Securities and Exchange Commission of Pakista
with the requirements of these standards, the requirements of the Companies Ordinance 1984 or the requirements of the said dir
precedence.
As per SRO 929(1)/ 2015 issued by the (SECP), a non-listed company which has paid up capital of Rs. 200 million or more or
billion or more shall be categorized as a Large Sized Company (LSC). Every LSC is required to follow International Financial
Standards (IFRS) issued by the International Accounting Standards Board as adopted by the Institute of Chartered Accountants
preparation of annual financial statements for the periods beginning on or after January 01, 2015. The company is already
International Financial Reporting Standards (IFRS) since previous years as an Economically Significant Entity.
3. SIGNIFICANT ACCOUNTING POLICIES
3.1 Basis of preparation
These financial statements have been prepared under the historical cost convention modified by adjustment of exchange d
3.5 Stock in trade
These are valued at lower of cost and net realizable value. Cost determination basis are as under:

Raw material
Work-in process

Finished Goods
3.15 Taxation
Current
Provision for the current taxation is the higher of the amount computed on the taxable income at the current tax rate after taking
credits/rebates, if any, and the minimum tax computed at the prescribed rate on the turnover.
Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences arising from differ
carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation o
profit. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are re
extent that it is probable that taxable profits will be available against
which the deductible temporary differences, unused tax losses and tax credits can.be utilized.

Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences arising from differ
carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of
Deferred tax liabilities are generally recognized for all taxable differences and deferred tax assets are recognized to the extent t
that taxable profits will be available against which the deductible temporary differences, unused tax losses and tax credits can b
4. Property, Plant and Equipment
4.1 Operating Fixed Assets
rporated in Pakistan in January 1989 as a private limited company under the Companies
a registered firm. The registered office of the Company is situated at 21-Waris road Lahore. The
uring and retailing of embroidered cloth and plain cloth through its outlets.

accordance with approved accounting standards as applicable in Pakistan and the requirements
ccounting standards comprise of such International Financial Reporting Standards (lFRS)
rds Board as are notified under the provisions of the Companies Ordinance 1984. Wherever
84 or directives Issued by the Securities and Exchange Commission of Pakistan (SECP) differ
uirements of the Companies Ordinance 1984 or the requirements of the said directives take

a non-listed company which has paid up capital of Rs. 200 million or more or turnover of Rs.1
zed Company (LSC). Every LSC is required to follow International Financial Reporting
ounting Standards Board as adopted by the Institute of Chartered Accountants of Pakistan for the
periods beginning on or after January 01, 2015. The company is already following
FRS) since previous years as an Economically Significant Entity.

under the historical cost convention modified by adjustment of exchange difference

le value. Cost determination basis are as under:

Moving average
Average manufacturing cost (including appropriate portion
of manufacturing overheads)

Average manufacturing cost

 the amount computed on the taxable income at the current tax rate after taking into account tax
puted at the prescribed rate on the turnover.
heet liability method in respect of all temporary differences arising from differences between the
ancial statements and the corresponding tax bases used in the computation of the taxable
cognized for all taxable temporary differences and deferred tax assets are recognized to the
be available against
ed tax losses and tax credits can.be utilized.

heet liability method in respect of all temporary differences arising from differences between the
ancial statements and the corresponding tax bases used in the computation of the taxable profit.
or all taxable differences and deferred tax assets are recognized to the extent that it is probable
h the deductible temporary differences, unused tax losses and tax credits can be utilized.
 Note 2015 2014
Operating Fixed Assets 4.1 1,431,562,313 1,049,431,535
Capital Work In Progress 4.2 13,530,020 11,690,996
1,445,092,333 1,061,122,531

Own 2015 2014

Land-Freehold 241,660,991 229,749,128

Building on Freehold Land 190,353,357 166,842,647
Plant & Machinery 42,016,466 34,918,828
Computers 90,393,413 83,172,070
Furniture & Fixtures 323,968,831 171,904,903
Office Equipment 175,781,616 121,260,485
Electric Equipment & Installations 146,300,863 82,545,553
Vehicles 60,666,579 32,878,637
Weapons & Fire Fighting Equipment 29,550 32,833
Library Books 47,812 53,125

Assets Subject to Finance Lease

Vehicles 106,265,247 110,138,393

Generator 54,077,588 15,934,933
1,431,562,313 1,049,431,535
4.2 Capital Work in Progress

2015 2014
Opening balance 11,690,996 4,088,176
Add: additions during the year
Civil Work-building 2,161,725 21,100,275
Plant & Machinery 840,000 2,096,240
Advance against intangible 6,942,205
3,001,725 30,138,720
14,692,721 34,226,896
Less: transferred during the year (1,162,701) (22,535,900)
13,530,020 11,690,996

2015 2014

Raw material in hand 311,706,768 231,794,306

Work in process 114,588,629 121,715,566
Finished good 1,754,763,359 1,357,611,694

2,181,058,756 1,711,121,566
2015

Advances to employees against salary 9.1 60,017,900

Due from associated undertaking - Current portion 9.2 27,500,000
Accrued income 138,767
Advances to Suppliers - Unsecured 569,535,383
Letter of credit 62,919,295
720,111,345

(9.1) These are unsecured but considered good by the management of the company

(9.2) DUE FROM ASSOCIATED UNDERTAKING

Due from associated undertaking 7.1 89,348,166
Less: Current portion 27,500,000
61,848,166

(6.1) This is unsecured but considered good by the management of the company
2014

44,031,265
27,500,000
150,000
535,030,094
42,109,609
648,820,968

86,352,166
27,500,000
58,852,166
 2015 2014
Authorized Rupees Rupees
200,000,000 (2014: 200,000,000) ordinary
shares of Rs. 10/- each 2,000,000,000 2,000,000,000
Issued, subscribed and paid-up
68,492,075 (2014: 68,492,075) ordinary
shares of Rs. 10/- each fully paid in cash 684,920,750 684,920,750
57,925 (2014: 57,925) ordinary shares of Rs. 10/-
each issued for consideration other than cash 579,250 579,250

685,500,000 685,500,000
15. Long Term Loan -Unsecured
2015 2014
Long term Loan - unsecured
- From directors 15,621,585 10,621,584
- From associate of the directors - -
15,621,585 10,621,584

2015 2014
Credit balances arising in respect of:
- Accelerated tax depreciation allowance 105,015,038 78,977,883
- Assets held under finance lease 52,230,556 42,286,254
Debit balances arising in respect of:
- Assets held under finance lease (41,117,966) (30,513,377)
- Intangible assets 1,790,773 1,337,299
117,918,401 92,088,059
The rate of interest used as dicounting factor ranges from .57% to 1.29% (2014: 1.17% to 1.47%)
per month. The amount of future payments and period during which they fall due are:

2015
Within one year 68,165,708
Within two to five years 74,645,689
142,811,397
Less: Future financial charges 16,583,155
Net lease obligation 18.1 126,228,242
Less: current portion taken as current liability 57,959,995
68,268,247

18.1 Break-up of net lease obligation

Within one year 57,959,995
Within two to five years 68,268,247
126,228,242

The rentals are payable in monthly and quarterly equal installments. In case of default
of any payment an additional charge at the rate ranging from 0.1% per day to 2% per month
on overdue payments shall be paid. The Company intends to exercise the option to
purchase the assets at the expiry of lease term.
o 1.47%)

2014
53,930,077
50,782,789
104,712,866
13,739,499
90,973,367
45,222,320
45,751,047

45,222,320
45,751,047
90,973,367

nth
 2015 2014

Running finance 19.1 1,378,123,815 330,551,621

Morabaha finance 19.2 134,169,294 186,817,275
Bank over drawn 19.3 478,131,423 388,935,824
1,990,424,532 906,304,720

19.1 This facility has been obtained from various banks against aggregate sanctioned limit
of Rs. 1,982 million (2014: Rs. 730 million). It carries mark up ranging from 1 months
KIBOR plus 1.5% to 3 months KIBOR plus 1.75% and LIBOR plus 2%. (2014: 1 month KIBOR plus
1.5% to 3 months KIBOR plus 1.75% and LIBOR plus 2%). The principal portion
of these facilities is payable on demand and mark up on quarterly basis. These running
finance facilities are secured by first pari passu charged over the current assets of
Rs. 1,433 million, equitable mortgage over the land and building and shops in the name
of the company, charge on the stocks, personal guarantees of the directors of the company
and cross corporate guarantee of an associated undertaking - Sarena Indusrtries and
Embroidery Mills (Private) Limited.

19.2 This facility has been obtained from various banks against aggregate sanctioned limit of
Rs. 450 million (2014: Rs. 230 million). It carries mark up ranging from 3 months KIBOR plus
1.25% to 1.75% (2014: 3 months KIBOR plus 1.5% to 1.75%) per annum. This facility is
secured by first pari pasu charged over the current assets of Rs. 468 million with
25% margin, title of imported goods amounting to Rs. 30 million and personal guarantees
of the directors of the company

19.3 This overdrawn balance is due to issuance of cheques near the balance sheet date. However
bank statements show favourable balances of Rs. 8,125,040 (2014: 59,335,066).
20. Trade and Other Payables

2015 2014
Creditors 544,668,232 573,580,615
Accrued Expenses 120,820,921 106,013,694
Advances from customers 64,408,090 64,271,363
Advance from sale of building 100,000,000
Income tax deducted at source 22,289,170 20,537,598
Sales tax 80,035,737 38,837,110
Workers' profit participation fund 643,076 21,784,197
Workers' welfare fund 125,461 8,062,023
Provident fund payable 15,427,500 29,902,725
948,418,187 862,989,325
21. Contingencies and Commitments Contingencies
Counter corporate guarantee given to the associated undertaking Sarena Industries and Embroidery Mills (Private) Limited to d
against the working capital finance limit.
Commitments
Commitments against irrevocable letter of credit amounting to Rs. 287.880 million (2014: Rs. 166.501 million)
IBOR plus

me
mpany

of
R plus

tees

owever
dery Mills (Private) Limited to different banks

166.501 million)
 2015
Cost of Sales
Raw and packing material consumed 3,692,833,717
Salaries, wages and benefits 1,081,374,415
Embroidery charges 700,497,982
Dyeing charges 261,503,346
Printing and sticker charges 203,819,398
Tailoring and stitching charges 86,397,101
Knitting and weaving charges -
Labour Commission 18,009,152
Electricity, gas and water 31,074,249
Vehicle running and maintenance 8,522,577
Repair and maintenance 37,233,638
Laundry and sample 3,988,921
Insurance 11,966,298
Carriage and freight 3,222,723
Rent, rates and taxes 70,288,516
Depreciation 53,600,213
Others 3,273,062
6,267,605,308
Less: Duty Draw back 345,172
6,267,260,136
Inventory effect of work in process
Opening stock 121,715,566
Closing stock (114,588,629)
7,126,937
Inventory effect of finished goods
Opening stock 1,357,611,694
Closing stock (1,754,763,359)
(397,151,665)
5,877,235,408
 2014

3,587,536,304
854,834,214
638,361,948
207,628,601
126,895,307
17,910,708
456,892
12,000,978
30,933,403
6,770,774
34,878,869
4,526,897
9,913,433
2,969,202
37,379,780
41,977,784
1,580,520
5,616,555,614
587,395
5,615,968,219

158,644,355
(121,715,566)
36,928,789

1,124,633,812
(1,357,611,694)
(232,977,882)
5,419,919,126
 2015
Distribution Cost
Salaries and benefits 409,450,643
Rent, rates and taxes 629,864,430
Electricity, gas and water 81,640,081
Telephone, postage and courier 25,503,661
Printing and stationery 3,359,564
Traveling and conveyance 19,881,369
Entertainment 490,088
Repair and maintenance 99,106,164
Generator fuel and maintenance 39,998,206
Vehicle running and maintenance 1,926,330
Advertisement 456,022,184
Carriage outward 2,954,522
Clearing outward 3,677,733
Credit card charges 32,278,379
Packing material 32,726,252
Commission 420,358,777
Insurance 12,242,529
Fee and subscription 8,817,148
Security services 15,969,568
Amortization of intangible assets 16,508,819
Depreciation 40,200,160
Others 3,650,103
2,356,626,710
 2014

303,483,538
333,117,658
61,298,174
11,719,690
2,282,775
13,954,025
301,461
103,585,311
30,439,968
1,055,147
324,914,644
3,870,870
2,980,961
24,324,081
38,599,337
452,351,814
8,372,787
11,767,084
10,446,979
19,692,014
31,483,338
2,729,315
1,792,770,971
 2015
Administrative and General
Directors' remuneration 79,200,000
Salaries and benefits 368,154,451
Fuel and power 46,496,868
Telephone and postage 22,420,790
Traveling and conveyance 29,435,306
Printing and stationery 16,061,777
Fee and Subscription 5,875,666
Rent, rates and taxes 4,306,594
Insurance 8,715,240
Legal and professional 6,606,689
Auditors' remueration 1,100,000
Newspapers and subscriptions 648,936
Entertainment 569,535
Repairs and maintenance 25,900,116
Vehicle running and maintenance 22,314,061
Donations 29,371,076
Amortization on intangible assets 569,904
Depreciation 40,200,160
Others 1,710,982
709,658,151
26. Other operating charges
2015
Other operating charges
Workers' profit participation fund 643,076
Workers' welfare fund -
643,076
2015
Finance Cost
Mark up on short term borrowings 119,055,940
Lease finance charges 11,506,658
Mark up on loan from directors 1,683,288
Bank charges 4,736,107
136,981,993
2014

60,000,000
298,111,439
46,097,423
23,175,316
26,592,677
15,656,992
12,451,331
5,226,768
5,762,764
7,169,714
1,000,000
269,301
1,036,751
31,220,092
24,632,886
26,056,114
329,127
31,483,338
843,828
617,115,861

2014

21,784,197
8,062,023
29,846,220
2014

41,643,502
8,929,189
-
3,687,484
54,260,175
 2015
28 Other operating income
Gain on sale of fixed assets 1,537,364
Profit on PLS account 846,933
Interest on due from associated undertaking 1,650,114
Rental income 131,298
Exchange Gain/(loss) 2,207,874
Deferred gain 198,090
Loss on sale and lease back of fixed assets (1,732,500)
Loss on insurance claim (374,186)
Agency income 13,830,000
Capital gain 474,174
Others 1,986,703
20,755,864
29. Taxation
30. Earnings per share

2015
29 Taxation
For the year 89,435,275
Prior year 915,000
 Deferred 25,830,342
116,180,617

2015
29.1 Relationship between tax expense and accounting profit
Profit before taxation 12,218,444
Tax at the applicable rate of 33% (2014: 34%) 4,032,087
Net tax effect of items taxed at different rate (2,999,604)
Impact of change in tax rate 90,451,360
Impact of tax credits (1,133,568)
Others including deferred tax 25,830,342
116,180,617
2015 2014
Earnings per share
Profit for the year (103,962,173) 184,683,981

Number of shares
Weighted average numbers of ordinary shares
outstanding during the year 68,550,000 68,550,000

Earning per share (in rupees) (1.52) 2.69

 2014

10,920,198
799,589
5,947,420
150,000
(1,612,499)
510,286
-
(468,298)
19,265,000
2,549,178
1,883,775
39,944,649

2014

125,473,713
3,591,960
 92,088,059
221,153,732

2014

405,837,713
137,984,822
(2,999,604)
4,058,377
(9,977,922)
92,088,059
221,153,732
2014

184,683,981

68,550,000

2.69
 2015
30 Cash and Cash Equivalents
Cash and bank balances 13 330,798,354
Overdrawn 19.3 (478,131,423)
(147,333,069)
 2014

249,580,130
(388,935,824)
(139,355,694)