of Companies

39th Annual Report 2018

UMER GROUP OF COMPANIES

BHANERO TEXTILE MILLS LIMITED

¥ision
A Premier Qua1ity Comµany, Providing Qua1ity Products
 And Maintaining An Exce11ent 1eve1 OJ Etkica1
And ProJessiona1 Standards.

Mission Statement
Yo become a 1eading manuJacturer oJ texti1e µroducts in tke
Internationa1 & 1oca1 markets and to exµ1ore new era to
Ackieve tke kigkest 1eve1 oJ success.

Index
CONTENTS PAGE
Corporate Information                                                                                                                               Notice
of the Annual General Meeting                                                                                                    Chairman's
Review Report                                                                                                                      Directors' Report
                                                                                                                                        Statement of Compliance
with the Best Practice                                                                                  Review Report to the Members
                                                                                                              Auditors' Report to the Members
                                                                                                           Statement of Financial Position
                                                                                                              Statement of Profit or Loss
                                                                                                                      Statement of Comprehensive
Income                                                                                                    Statement of Changes in Equity
                                                                                                            Statement of Cash Flows
                                                                                                                        Notes to the Financial Statements
                                                                                                         Categories of Shareholders
                                                                                                                    List of Shareholders
                                                                                                                                  Pattern of Shareholding
                                                                                                                          Year wise Operating Data
                                                                                                                        Directors' Report (Urdu)
                                                                                                                         Proxy Form
                                                                                                                                               
Proxy Form (Urdu)                                                                                                                                    
ucts
s in tke
ra to

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 CORPORATE INFORMATION
Board of Directors Mr. Khurrum Salim Chief Executive / Director
Mr. Bilal Sharif Non Executive Director
Mr. Mohammad Amin Non Executive Director
Mr. Adil Shakeel Non Executive Director
Mr. Mohammad Salim Executive Director

Mr.
Mohamma
d Sharif
Mr. Iqbal Mehboob Mr.
Independent Director
Chief Financial Officer Mohamma
Asim Mirza, ACMA, CPA(Aust), MBA
d Shaheen
Company Secretary Mr. Mohammad Ahmed (M.Econ)Mr. Hamza
Audit Committee Mr. Iqbal Mehboob Shakeel Chairman
Mr. Member
Hamza Member
Shakeel
Human Resource and Mr. Iqbal Mehboob Chairman
Mr. Bilal
Remuneration Committee Mr. Mohammad Amin Member
Sharif
Mr. Hamza Shakeel Member
Auditors M/s Mushatq and Company
Chartered Accountants 407, Commerce Centre, Hasrat Mohani Road, Karachi
Legal Advisor Mr. Shahid Pervaiz Jami

Bankers Bank Alfalah Limited

Dubai Islamic Bank Faysal Bank Ltd. Habib Bank Limited MCB Bank Limited Meezan
Bank Limited
United Bank Limited

Share Registrar Hameed Majeed Associated (Private) Limited

5th Floor Karachi Chamber, Karachi
Registered Office Umer House, 23/1, Sector 23, S. M. Farooq Road, Korangi Industrial Area,

Unit II and Unit III are situated at:

Feroz Watwan, Sheikhupura, Punjab. Tel: 056 3731723

NOTICE OF THE ANNUAL GENERAL MEETING

NOTICE is hereby given that the 39th Annual General Meeting of the members of Bhanero Textile Mills Limited will be held on Thursday 25
3:30 PM., at the registered office of the company i.e. Umer House, 23/I, Sector 23, S. M. Farooq Road, Korangi Industrial Area, Karachi, to tra
business:
FORMATION
Chief Executive / Director
Director
Director
Director
ctor

Non Executive Director

Non Executive Director / Chairman Non Executive
Director
irector
Aust), MBA
M.Econ)
Chairman
Member
Member
Chairman
Member
Member
y
Road, Karachi

Faysal Bank Ltd. Habib Bank Limited MCB Bank Limited Meezan Bank Limited Samba

eed Majeed Associated (Private) Limited

hamber, Karachi
1, Sector 23, S. M. Farooq Road, Korangi Industrial Area, Karachi, PakistanTel : 021 35115177 - 80 ; Fax: 021 -35063002-3Email: khioff@umergroup.co

Unit II and Unit III are situated at:

Feroz Watwan, Sheikhupura, Punjab. Tel: 056 3731723

hanero Textile Mills Limited will be held on Thursday 25th October 2018 at
S. M. Farooq Road, Korangi Industrial Area, Karachi, to transact the following
Ordinary Business
1. To confirm the minutes of the last Annual General Meeting held on 27th October 2017.
2. To receive, consider and adopt the audited financial statements of the company for the year ended 30th June, 2018 together
Directors' Report thereon.
3. To approve the cash dividend @ 643% (i.e. PKR 64.30 per share) for the year ended 30th June, 2018, as recommended by t
4. To appoint the auditors for the next term i.e. year 2018-2019 and fix their remuneration. The retiring auditors M/S Mushtaq an
Accountants, being eligible, offer themselves for reappointment.
5. To transact any other business with the permission of the chairman.

(By the order of th

Karachi:
Date: 27th September 2018

Notes:
1. The Shares Transfer Books of the Company will remain closed from 17th October 2018 to 25th October, 2018 (both days inc
received in order at the registered office of the company i.e. Umer House, 23/I, Sector 23, S. M. Farooq Road, Korangi Industria
October 2018 will be treated in time for the purpose of entitlement of dividend in respect of the period ended 30th June, 2018.
2. Members are requested to attend in person along with Computerized National Identity Card ("CNIC") or appoint some other m
send their proxy duly witnessed so as to reach the registered office of the company not later than 48 hours before the time of ho
3. Pursuant to section 132(2) of Companies Act, 2017 the company shall facilitate its members to attend the annual general me
by providing video-conference facility, if available, in the city where 10% or more shareholders of the company reside, provided t
receives their demand to participate in annual general meeting through video- link at least seven (07) days prior to the date of m
In this regard, it is requested to fill the following Form and submit at the registered address of the Company at least 10 days befo
Annual General Meeting:
"I/We,                    being a member of Bhanero Textile Mills Limited, holder of                    Ordinary Shares vide folio               
hereby opt for video conference facility at                              ."
4. Any individual Beneficial Owner of CDC, entitled to attend and vote at this meeting, must bring his/her original CNIC or Passp
participant's I.D. numbers, to prove his/her identity, and in case of proxy must enclose an attested copy of his/her CNIC or Passp
of corporate members should bring the usual documents required for such purpose. The account/ sub account holders of CDC w
follow the guidelines as laid down in Circular No. 1 of 2000 dated January 26, 2000 issued by Securities & Exchange Commissio
5. Section 242 of Companies Act 2017 which states that, "Any dividend payable in cash shall only be paid through electronic mo
bank account designated by the entitled shareholders". In compliance of section 242 SECP issued a circular CLD/CCD/PR(11)/2
1-Aug-17 requiring listed companies to obtain electronic dividend mandate
from the Shareholders and in this regard a notice had already been sent to all the shareholders.

NOTICE OF THE ANNUAL GENERAL MEETING

Further, Securities and Exchange Commission of Pakistan (SECP) vide notification No. SRO 1145(1)2017 dated November 6
provision of section 242 of the Companies Act,2017 issued regulations for distribution of dividends by the listed companies re
shareholders to provide valid information pertaining to designated bank account including name of bank , title of account , ad
and international bank account number.
In this regard we request all registered shareholders to provide the bank details in order to credit their cash dividends directly
if declared. Also provide us verification of bank detail with your concern bank and submit to in case of book-entry securities in
participants and in case of physical securities to the Company's Share Registrar.

6. In compliance of section 244 of Companies Act 2017 and SECP circular No. CLD/CCD/PR(11)/2017 Direction No.16 of 2017
regarding dividends, shares or modaraba certificates remains unclaimed or unpaid for a period of three years from the date it is d
vested with Federal Government after complying the requirements of Companies Act 2017.

In compliance of SRO 1013(1)/2017 dated 6th September, 2017 the claimant wise details of unclaimed shares, dividend orm

In this regard, the said shareholders are requested to approach the Company Registered Office or Share Registrar Office with re
dividend, shares or modarba certificates.
7. Members are requested to immediately inform of any change in their addresses and bank details to our share Registrar, Ham
Associates (Private) Limited.
8. Pursuant to Notification vide SRO 787(1)/2014 of September 08, 2014, SECP has directed to facilitate the members of the co

9. Pursuant to the provisions of the Finance Act 2018 effective July 1, 2018, the rates of deduction of income tax from dividend
section 150 of the Income Tax Ordinance, 2001 have been revised as follows:
a. For filer of income tax return 15%
b. For non-filers of income tax return 20%
To enable the Company to make tax deduction on the amount of cash dividend @ 15% instead of 20%, shareholders whose nam
into the Active Taxpayers List (ATL) provided on the website of FBR, despite the fact that they are filers, are advised to make su
entered in ATL before the first day of book closure, otherwise tax on their cash dividend will be deducted @ 20% instead of 15%
Withholding Tax exemption from the dividend income, shall only be allowed if copy of valid tax exemption certificate or stay orde
court of law is made available to Hameed Majeed Associates (Private) Limited, by the first day of Book Closure.
Further, according to clarification received from Federal Board of Revenue (FBR), with-holding tax will be determined separately
status of Principal shareholder as well as joint holder(s) based on their shareholding proportions, in case of joint accounts.
In this regard all shareholders who hold shares jointly are requested to provide shareholding proportions of Principal shareholde
respect of shares held by them (only if not already provided) to our Share Registrar, in writing. In the event of non-receipt of the
October 2018, each shareholder will be assumed to have equal proportion of shares and the tax will be deducted accordingly.

10.E-Voting, members can exercise their right to demand a poll subject to meeting requirements of Section 143 -145 of Compan
Act, 2017 and applicable clauses of Companies (Postal Ballot) Regulations 2018.
eld on 27th October 2017.
nts of the company for the year ended 30th June, 2018 together with the Auditors' and

hare) for the year ended 30th June, 2018, as recommended by the Board of Directors.
and fix their remuneration. The retiring auditors M/S Mushtaq and Company, Chartered

airman.

(By the order of the Board)

Mohammad
Ahmed
Company
Secretary
ed from 17th October 2018 to 25th October, 2018 (both days inclusive). Transfers
er House, 23/I, Sector 23, S. M. Farooq Road, Korangi Industrial Area, Karachi by 15th
nt of dividend in respect of the period ended 30th June, 2018.
uterized National Identity Card ("CNIC") or appoint some other member as proxy and
ice of the company not later than 48 hours before the time of holding the meeting.
pany shall facilitate its members to attend the annual general meeting through video-link
ere 10% or more shareholders of the company reside, provided that the Company
hrough video- link at least seven (07) days prior to the date of meeting.
t at the registered address of the Company at least 10 days before holding of the

ed, holder of                    Ordinary Shares vide folio               

d vote at this meeting, must bring his/her original CNIC or Passport, Account and
of proxy must enclose an attested copy of his/her CNIC or Passport. Representatives
d for such purpose. The account/ sub account holders of CDC will further have to
d January 26, 2000 issued by Securities & Exchange Commission of Pakistan.
dividend payable in cash shall only be paid through electronic mode directly into the
iance of section 242 SECP issued a circular CLD/CCD/PR(11)/2017 No.18/2017 dated
d mandate
een sent to all the shareholders.

NUAL GENERAL MEETING

SECP) vide notification No. SRO 1145(1)2017 dated November 6, 2017 in terms of
egulations for distribution of dividends by the listed companies requiring entitled
nated bank account including name of bank , title of account , address of bank branch

de the bank details in order to credit their cash dividends directly to their bank account,
ur concern bank and submit to in case of book-entry securities in CDS, to CDS
y's Share Registrar.

CP circular No. CLD/CCD/PR(11)/2017 Direction No.16 of 2017 dated 7-July -2017

nclaimed or unpaid for a period of three years from the date it is due or payable shall be
nts of Companies Act 2017.

017 the claimant wise details of unclaimed shares, dividend ormodarba certificates as on June 30, 2018 have been uploaded on our website: www.umergro

the Company Registered Office or Share Registrar Office with regard to any unclaimed

in their addresses and bank details to our share Registrar, Hameed Majeed
 08, 2014, SECP has directed to facilitate the members of the company receiving Annual Financial Statements and Notices through electronic mail system

July 1, 2018, the rates of deduction of income tax from dividend payments under
ed as follows:

f cash dividend @ 15% instead of 20%, shareholders whose names are not entered
FBR, despite the fact that they are filers, are advised to make sure that their names are
x on their cash dividend will be deducted @ 20% instead of 15%.
be allowed if copy of valid tax exemption certificate or stay order from a competent
rivate) Limited, by the first day of Book Closure.
f Revenue (FBR), with-holding tax will be determined separately on 'Filer/Non-Filer'
n their shareholding proportions, in case of joint accounts.
sted to provide shareholding proportions of Principal shareholder and Joint-holder(s) in
our Share Registrar, in writing. In the event of non-receipt of the information by 23rd
proportion of shares and the tax will be deducted accordingly.

subject to meeting requirements of Section 143 -145 of Companies

Regulations 2018.
 CHAIRMAN'S REVIEW REPORT
As required under section 192(4) of Companies Act 2017 attached herewith a review report by the chairman on overall performa
and effectiveness of the board of Bhanero Textile Mills Limited (Board)in achieving its objectives.
The company has an effective governance framework which ensures success of the company and during the year under review
the board has played an effective and active role in achieving its goals.The board has opted to carry out the evaluation process i
regulation 10(V) of Code of Corporate Governance 2017.

The Board has performed and discharge its duties as per provisions of Companies Act 2017, regulations under Code of Corpora
(CCG 2017), guidelines issued by Securities and Exchange Commission of Pakistan (SECP) and regulatory
compliance required for listed companies by Pakistan Stock Exchange (PSX).

The Board continues to pursue high standards of governance by adoption of a disciplined process which continues to ensure a c
and transparency where the strengths of the Board are identified and areas for improvement clearly highlighted. The board is aw
management techniques, methods and tools for managing different types for which organization may exposed in future. The exis
fully capable of identifying what could go wrong, evaluating which risks should be dealt with and implementing strategies to deal
cost-effective way to safeguard its assets and repute of
the company.

Following the changes to the Code of Corporate Governance 2017, the board is completely in compliance with regulatory compl
members have clear vision what organization would like to achieve and what is expected from them in attaining those goals. The
members are keen and quite regular in attending meetings. The members convene at the meeting with thorough study of workin
to members by making notes of points for further discussion and clarification required from the Chairman, Chief Executive Office
Officer, Company Secretary or Head of Internal Audit . There exist a proper succession planning in the board seen by appointme
energetic CEO and members on board and committee. All the board members have attended and acquired the certification unde
Program and fully acquainted with the requirement of applicable laws and regulation of Securities and Exchange Commission of
Pakistan Stock Exchange (PSX), Companies Act 2017 and Code of Corporate Governance 2017 (CCG 2017). The members ha
the decision taken by the Chief Executive Officer aimed at achieving the organization goals and ultimate benefits for the shareho
The members always stand up with the Chief Executive Officer by delivering in-time feedbacks and suggestion for strategic deci

Karachi:
Date: September 27th, 2018
 AN'S REVIEW REPORT
attached herewith a review report by the chairman on overall performance
imited (Board)in achieving its objectives.
ch ensures success of the company and during the year under review
ing its goals.The board has opted to carry out the evaluation process internally under the

provisions of Companies Act 2017, regulations under Code of Corporate Governance 2017
e Commission of Pakistan (SECP) and regulatory
ck Exchange (PSX).

nce by adoption of a disciplined process which continues to ensure a culture of openness

entified and areas for improvement clearly highlighted. The board is aware of risk
different types for which organization may exposed in future. The existing system in place is
g which risks should be dealt with and implementing strategies to deal with those risks in a

nce 2017, the board is completely in compliance with regulatory compliance. The board
achieve and what is expected from them in attaining those goals. The board and committee
s. The members convene at the meeting with thorough study of working paper file circulated
on and clarification required from the Chairman, Chief Executive Officer , Chief Financial
ere exist a proper succession planning in the board seen by appointments of young and
the board members have attended and acquired the certification under Directors Training
icable laws and regulation of Securities and Exchange Commission of Pakistan (SECP),
d Code of Corporate Governance 2017 (CCG 2017). The members have complete trust in
achieving the organization goals and ultimate benefits for the shareholders of the company.
fficer by delivering in-time feedbacks and suggestion for strategic decisions.

Mohammad Shaheen
Chairman
Directors' Report
The Directorsof Bhanero Textile Mills Limited have pleasure in presenting before you annual report together with auditors' report on the financ
company for the year ended 30th June, 2018.
Financial Results
Financial results of company for the year ended to June 30, 2018 are as under;
2018
Rupees

Sales 8,073,845,411
Cost of sales 7,205,449,439
Gross profit 868,395,972
Profit before taxation 542,159,753
Taxation
Current year 27,378,416
Prior year 3,594,287
Deferred 29,150,541
60,123,244
Profit after taxation 482,036,509
Basic and diluted earnings per share 160.68
Financial Performance
By the blessing of Allah Al Mighty, the Company earned profit after tax of PKR 482.036 million during the year ended 30 June, 2
275.736 million).
Despite global and domestic challenging economic condition attributable to increasing prices of cotton and yarn, the company sa
PKR 6,837.254 million to PKR8,073.845 million in current year. The increase in other income is mainly attributable to sale of land
during the current year. The distribution and other operating cost to sales ratios remains almost same during current year howev
and finance cost to sales ratio has been decreased by 0.25% and 0.11% during the current year as compared to the correspond

The Company earned gross profit of PKR 868.395 million during the current year ended June 30, 2018 as compared to PKR
754.283 in corresponding year. The growth in gross profit is mainly attributable to export rebates and foreign exchange gain on e

Dividends & Reserves Appropriation

In the preceding year 2017 the dividend at 368.00% i.e PKR 36.80 has been paid by the company whereas for the current year t
are pleased to recommend a final cash dividend of 643.00% i.e PKR 64.30 per share in line with the recommendation of audit co
approval of shareholders in forthcoming annual general meeting scheduled on October 25, 2018.

Moreover, the directors proposed to transfer an amount of PKR 300 million to the general reserve to meet any unforeseen contin

Earnings and Breakup Value per Share

The company has shown its firm commitment towards shareholders capital as reflected through the increase in both earnings pe
91.91 to PKR 160.68 and breakup value of share from 1,295.43 to PKR 1,420.91 during the current year thus enhancing the valu
wealth.
Working Capital Management
The company closely monitors its working capital management by utilizing the two components i.e current assets and current lia
most financially efficient operation that assures sufficient cash flows to meet its short-term operating costs and short debts term

The company has invested PKR 1,002.437 million in 2018 (2017: PKR 315.308 million) towards capital expenditure for achieving
efficiency and maintain the leading edge in the industry.
The repayments amounting to PKR 77.464 million on account of long term loans have been made during the year 2018 whereas
been paid towards dividend to the shareholders.
Capital Structure
The company utilizes the optimal combination of debt and equity to enhance the shareholders' value and generates healthy retu
capital.
The company is financed by mix of equity and debt in such a way that will maximize the wealth of its shareholders. The financial
may be gauged with the fact that shareholder equity stood at PKR 4,262.737 million as on 30th June, 2018 (Year 2017: PKR 3,8
showing a growth of 9.69% (6.78% in year 2017) in total equity during the year June 2018. The gearing ratio of 0.28 showed imp
current year as compared to corresponding year where it stood at 0.3.
The short term liquidity of company is quite stable as reflected by current ratio of 3.48 during the year under review.

Expansion Plans & BMR

The expanded capacity of 10,800 spindles in Unit-II has been successfully added to commercial production during the year whic
contribute to boost revenues and cater additional customer base.
Further, the board has approved the BMR for import of four high-tech engines amounting to PKR 325.00 million to be installed a
increasing the efficiency of its power generation facility.
Credit Rating
The final rating of A+/A1 (Single A Plus / A One)has been assigned to the company by the rating company Messer's JCR-VIS. T
assigned rating is "Stable".
Financial Statements
As required under Companies Act,2017, listing regulations of PSX and directives issued by the SECP the Chief Executive Office
Officer present the financial statements, duly endorsed under their respective signatures, for consideration and approval of the b
after consideration and approval, authorize the signing of financial statements for issuance and circulation.

The financial statements of the company have been duly audited by the auditors of the company, Mushtaq & Company, Chartere
the auditors have issued clean audit report on the financial statements for the year ended 30th June 2018 and clean review repo
Code of Corporate Governance. These reports are attached with the financial statements.
Accounting Standards
The accounting policies of the Company fully reflect the requirements of the Companies Act, 2017 and such approved Internatio
Standards and International Financial Reporting Standards as have been notified under this Act as well as through directives iss
and Exchange Commission of Pakistan.
Overview of Textile Sector in Pakistan
Cotton crop had been cultivated over 2.69 million hectares of land across the crop producing areas of the country to produce app
million cotton bales fixed during the current sowing season to fulfill the domestic requirements as well as for exporting for the cro

The Pakistan textile industry contributes more than 60 percent to the country's total exports however, currently this industry is fa
growth rate. The major reasons for this decline can be the global recession, internal security concerns, the high cost of productio
the energy costs etc. Significant depreciation of Pakistani rupee enhanced the cost of imported inputs, rise in inflation rate, and h
has also effected seriously the growth in the textile industry.
As a result neither the buyers are able to visit frequently Pakistan nor are the exporters able to travel abroad for effectively mark
With an in-depth investigation it was found that the Pakistan's textile industry can once again be brought back on winning track if
serious actions in removing or normalizing the above mentioned hurdles. Additionally, the government should provide subsidy to
ensure uninterrupted and subsidized gas and power supply withdrawal of taxes, supports technological advancements through r
development related activitiesfor increasing the overall industrial growth of the country.
Future Challenges & Recommendation
Domestic debt increased by five times and external debt by 1.4 times in between 2009 and 2018 and servicing of debt is an over
Pakistani economy. Despite the government's self-congratulatory claims, the fact remains that the entire paradigm of economic d
to be underpinned by debts and subsidies.
CPEC is very much going to perpetuate the paradigm, as well as the defense budget, which weighs heavily as ever on the public
Pakistan was awarded GSP Plus status which raised hopes that it would help increase our exports. However, that too proved to

Pakistan's textile industry has also generally been targeting low value-added markets in Europe and North America, failing to mo
added products, which could have meant more revenues for the country.
The following measures are suggested for the newly elected government for revival of textile industry:
First, general inefficiencies in operations need to be identified and rooted out to reduce operating costs. Government should prov
which remove their operational inefficiencies as efficacy and conducive work environment contributes to productivity.

Second, productivity needs to be improved through modernization by acquiring latest equipment from abroad, which requires mo
trained human resource to operate it. To this end, the government would have to enter into a public- private partnership with the
abolishing all types of duties and taxes on import of machinery.
Third, industry needs to identify at macro level, higher value-added products which it can manufacture in a competitive manner a
Industry representatives should sit with government and identify the resources and capabilities required in producing higher valu
These resources and capabilities may be locally generated or imported through public- private partnership.

Fourth, and most importantly, continuous government support is required but in a holistic manner which incorporates measuring
industry and firm level. Level playing field should be provided which provides equal opportunities. Similarly, monetary assistance
tackle manufacturing inefficiencies and for the production of better value-added products.
A concerted effort is required to make our textile industry competitive again which is major source of employment for the masses
Compliance with Code of Corporate Governance
The Statement of Compliance with the Code of Corporate Governance is annexed.
Statement on Corporate and Financial Reporting Framework:
The Directors of your company are aware of their responsibilities under Companies Act 2017, Code of Corporate Governance re
of the Pakistan Stock Exchange Limited and directives issued by Securities & Exchange Commission of Pakistan. As a part of th
regulators we confirm the following:
These financial statements, prepared by the management of the company, present fairly its state of affairs, the result of its opera
changes in equity.
Proper books of account of the company have been maintained.
Appropriate accounting policies have been consistently applied in preparation of financial statements and accounting estimates a
reasonable and prudent judgment.
International Financial Reporting Standards, as applicable in Pakistan, have been followed in preparation of financial statements
internal control was sound in design and has been effectively implemented and monitored.
There were no significant doubts upon the company's ability to continue as a going concern.
There has been no material departure from the best practices of corporate governance, as detailed in the listing regulations. We
circulated a Code of Conduct and business strategy among directors and employees.
The Board of Directors has adopted a vision and mission statement and a statement of overall corporate strategy. All the directo
general meeting unless preclude due to reasonable reason.
All the directors are assigned with their responsibilities, roles, remuneration, powers and obligation at the commencement of the
with Code of Corporate Governance, Companies Act and Article of Association.
All the directors of the Company are accredited / exempted under Directors Training Program (DTP) as required by the Code of
Governance regulation.
There's a formal policy duly approved by the board on director's remuneration, anti-money laundering and risk management. As
of Corporate Governance, we have included the following information in this report:
Statement of pattern of shareholding has been given separately. Statement of shares held by associated undertakings and relate
Statement of the Board meetings held during the year and attendance by each director has been given separately.
Key operating and financial statistics for last six years. Information about taxes and levies had been adequately disclosed in the
financial statements.
The company strictly follow the guidelines issued by SECP on prohibition of insider trading for listed companies and no trading in
shares was carried by its Directors, CEO, CFO, Company Secretary, Head of Internal Audit and their spouses
and minor children except as disclosed in pattern of shareholding.

Pattern of Shareholding
The pattern of shareholding and additional information regarding pattern of shareholding is attached separately.
Related Party
There is a robust policy in place for all related party transactions (RPT) in pursuant to the notification issued by Securities and Ex
of Pakistan vide SRO 768(1)2018 and the guidelineshave been duly incorporated in the company policy
with regard to transactions and maintenance of records.

Board Evaluation
The company has opted to conduct evaluation process of the board internally in compliance of the regulation 10(3)(v) of code
of corporate governance 2017 for assessing the board performance, members of the board and its committee members.

A comprehensive review has been carried out entailing statutory documents, the minutes of board and committee meetings,
policies currently in place and other ancillary documents, questionnaires, interactions with the board and committees members.
Board Composition
As required under regulation 36 of CCG 2017 the board of nine directors is comprised as follows;
 r with auditors' report on the financial statements of the

2017
Rupees

6,837,254,892
6,082,970,918
754,283,974
369,244,572

72,619,736
(1,159,756)
22,048,062
93,508,042
275,736,530
91.91

n during the year ended 30 June, 2018 (2017:PKR

of cotton and yarn, the company sales increased from

is mainly attributable to sale of land and machinery
st same during current year however, the administration
ear as compared to the corresponding year.

30, 2018 as compared to PKR

tes and foreign exchange gain on export sales.

pany whereas for the current year the board of directors

ith the recommendation of audit committee for the
18.

erve to meet any unforeseen contingencies in future.

gh the increase in both earnings per share from PKR

urrent year thus enhancing the value to shareholders

ts i.e current assets and current liabilities, to ensure the

erating costs and short debts term debt.

ds capital expenditure for achieving the maximum

made during the year 2018 whereas PKR 110.250 million

' value and generates healthy returns on invested

h of its shareholders. The financial strength of company
h June, 2018 (Year 2017: PKR 3,886.302 million)
e gearing ratio of 0.28 showed improvement during the

he year under review.

ial production during the year which will eventually

KR 325.00 million to be installed at unit I and III for

ing company Messer's JCR-VIS. The outlook on the

e SECP the Chief Executive Officer and Chief Financial

consideration and approval of the board of directors and
d circulation.

any, Mushtaq & Company, Chartered Accountants and

h June 2018 and clean review report on Statement of

2017 and such approved International Accounting

ct as well as through directives issued by the Securities

areas of the country to produce approximately 10.80

as well as for exporting for the crop season 2018-19.

owever, currently this industry is facing great decline in its

oncerns, the high cost of production due to increase in
d inputs, rise in inflation rate, and high cost of financing

o travel abroad for effectively marketing their products.

be brought back on winning track if government takes
ernment should provide subsidy to the textile industry,
hnological advancements through research and
018 and servicing of debt is an overarching theme of the
t the entire paradigm of economic development continues

weighs heavily as ever on the public exchequer. Earlier,

ports. However, that too proved to be wishful thinking.

pe and North America, failing to move into better-value

ndustry:
ing costs. Government should provide incentives to firms
tributes to productivity.

ent from abroad, which requires monetary resources and

public- private partnership with the textile industry and

ufacture in a competitive manner at international level.

s required in producing higher value-added products.
e partnership.

ner which incorporates measuring performance at

ies. Similarly, monetary assistance should be given to

urce of employment for the masses.

Code of Corporate Governance regulations, listing rules
mission of Pakistan. As a part of the compliance to the

ate of affairs, the result of its operations, cash flows and

ements and accounting estimates are based on

preparation of financial statements. The system of

tailed in the listing regulations. We have prepared and

l corporate strategy. All the directors have attended its

ation at the commencement of their terms in accordance

(DTP) as required by the Code of Corporate

ndering and risk management. As required by the Code

associated undertakings and related persons.

een given separately.
been adequately disclosed in the annexed audited

listed companies and no trading in the Company's

nd their spouses

ached separately.

ication issued by Securities and Exchange Commission

any policy

f the regulation 10(3)(v) of code

nd its committee members.

oard and committee meetings,

board and committees members.

ws;
Sr No Category Gender Total
(i) Independent Director Male 1
(ii) Executive Directors Male 2
(ii) Non- Executive Directors Male 6
Board and Audit Committee Meetings
Following are the number of meeting held and attended by board of directors, audit committee and human resource &
remuneration committee during 2017-18 :

Committees

Audit Human Resource and

Name of Directors Board of Directors Remuneration
Meetings Meetings Meetings
held Attended held Attended held

Mr. Mohammad Salim 4 4 - - -

Mr. Mohammad Sharif 4 4 - - -
Mr. Mohammad Shaheen 4 4 - - -
Mr. Khurrum Salim 4 4 - - -
Mr. Bilal Sharif 4 4 6 6 -
Mr. Mohammad Amin 4 4 - - 2
Mr. Adil Shakeel 4 4 - - -
Mr. Hamza Shakeel 4 4 6 6 2
Mr. Iqbal Mehboob 4 4 6 6 2
Audit Committee
The audit committee comprises of three members of which chairman is an independent director whereas all the other are non- e
discharge its responsibilities under terms of reference assigned by the board of directors.
Besides meeting every quarter for the approval financial results, the committee also meets once a year with external auditors wit
once with the internal auditor without the presence of the CFO and external auditor as required under code of corporate governa

The audit committee constituted to provide oversight of the financial reporting process, the audit process, the system of internal
compliance with laws and regulations. The committee reviews the results of the audit with management and external auditors, in
required to be communicated by the audit committee as required by the code of corporate governance.
The audit committee has established robust internal audit system to monitor and review the adequacy and implementation of inte
level. The meetings of audit committee were held at regular intervals in compliance of the requirements of Code of Corporate Go
and annual financial statements were reviewed by the audit committee before the approval of board of directors.

Human Resource and Remuneration Committee

The human resource and remuneration committee (HRRC) is comprised of three members of which all are non-executive directo
is an independent director. The committee has established sound and effective employees' development program that ensures t
provincial laws and regulations that affect employment must be fully complied. HRRC evaluates performance against set of goal
assigned to the senior executive officers and chief executive

officer. The committee operates under terms of reference assigned by the Board of directors which includes recommendation of
directors and senior personnel, evaluation process of the board and committee members.
e and human resource &

es

Human Resource and

Remuneration

Attended

-
-
-
-
-
2
-
2
2

tor whereas all the other are non- executive directors and

nce a year with external auditors without the CFO and

ed under code of corporate governance regulation.

udit process, the system of internal controls and

anagement and external auditors, including matters
vernance.
adequacy and implementation of internal control at each
quirements of Code of Corporate Governance. Interim
f board of directors.

f which all are non-executive directors whereas chairman

evelopment program that ensures that all federal and
tes performance against set of goals and objectives

which includes recommendation of remuneration for

 Corporate Social Responsibility Policy
The company through CSR policy, engages itself in several programs at different forum like philanthropic contribution for the ben
the community as a whole. This eventually creates a stronger bond between employee and corporation which boost up the mora
they feel more connected with the world around them.
Health, Safety and Environment Policy
The company is fully determined for the health and safety measures that aims to ensure that all work activates are done safely. I
possible effort to remove or reduce the risks to the health, safety of all workers, contractors and visitors, and anyone else who m
business operations. Moreover, adherence to environmental management standards assures minimizing the environmental impa
processes and improving the efficiency of processes.

Director's Remuneration
The feature of executive director's remuneration policy is prepared and recommended by human resource and remuneration com
board subject to the provisions of the Companies Act 2017, Companies' Article of Association and Code of Corporate Governan

The remuneration of the executive directors is determined by considering the market competitiveness which is identical in akin c
considering level of competencies, experience, scope of the board assignments and yearly meetings. The executive directors en
monthly remuneration recommended by HRRC which is approved in the board meeting, followed by the approval of members in

No fee or remuneration shall be payable either to non-executive or independent directors.

Statutory Auditors
The present auditors M/s Mushtaq & Co., Chartered Accountants shall retire on the conclusion of the annual general meeting sc
25, 2018 however, being eligible they have offered themselves for re-appointment. The audit committee has suggested the appo
Mushtaq & Co., Chartered Accountants, as external auditor for the year ended 30th June 2019. The external auditors M/s Musht
Accountants have been given satisfactory rating under the quality control review program of the Institute of Chartered Accountan
firm and all its partner are in compliance with the International Federation of Accountants' Guidelines on the Code of Ethics as a
Chartered Accountants of Pakistan. The Board of Directors also recommended the appointment of M/s Mushtaq & Co., Chartere
external auditor for the year ended 30th June 2019.

Material Changes and Commitments

No material changes and commitments affecting the financial position of the Company have occurred between the end of financ
Company to which the balance sheet relates and the date of report of directors' report.
Acknowledgement
I am highly indebted to Board of Directors, valued shareholders, customers, bankers, suppliers and other stakeholders for their s
confidence. I also appreciate to all employees for their loyalty dedication and hard work which enabled the Company to achieve

For and on behalf of the Board of Directors

Khurrum Salim
Chief Executive

Karachi:
Date: 27th September 2018

STATEMENT OF COMPLIANCE WITH THE BEST PRACTICE

OF CORPORATE GOVERNANCE FOR THE YEAR ENDED 30TH JUNE, 2018
The statement is being presented to comply with the requirement of regulation 40 contained in Code of Corporate Governance, 2017 for the p
a framework of good corporate governance, whereby a company quoted at Pakistan Stock Exchange Limited is managed in compliance with
corporate governance.
 l programs at different forum like philanthropic contribution for the benefit of the society and
ger bond between employee and corporation which boost up the morale of employees and

measures that aims to ensure that all work activates are done safely. It has made every
safety of all workers, contractors and visitors, and anyone else who may be affected by
al management standards assures minimizing the environmental impacts of production

repared and recommended by human resource and remuneration committee (HRRC) to the
, Companies' Article of Association and Code of Corporate GovernanceRegulations.

by considering the market competitiveness which is identical in akin companies, whilst also
e board assignments and yearly meetings. The executive directors entitled for the fixed
proved in the board meeting, followed by the approval of members in General Meeting.

utive or independent directors.

ntants shall retire on the conclusion of the annual general meeting scheduled on October
lves for re-appointment. The audit committee has suggested the appointment of M/s
r for the year ended 30th June 2019. The external auditors M/s Mushtaq & Co., Chartered
quality control review program of the Institute of Chartered Accountants of Pakistan and the
nal Federation of Accountants' Guidelines on the Code of Ethics as adopted by Institute of
also recommended the appointment of M/s Mushtaq & Co., Chartered Accountants, as

ial position of the Company have occurred between the end of financial year of the
of report of directors' report.

ders, customers, bankers, suppliers and other stakeholders for their support, trust and
lty dedication and hard work which enabled the Company to achieve its objectives.

rectors
Mohammad Salim
Director

18

, 2018
ulation 40 contained in Code of Corporate Governance, 2017 for the purpose of establishing
d at Pakistan Stock Exchange Limited is managed in compliance with best practices of
 The company has complied with the requirements of the Regulations in the following manner:
1. The total number of directors are 09 as per the following:
a. Male: 09
b. Female: Nil

2. The composition of board is as follows:

Category Name
Independent Director Mr. Iqbal Mehboob
Executive Directors Mr. Khurrum Salim
Mr. Mohammad Salim
Non Executive Directors Mr. Mohammad Shaheen Mr.
Mohammad Sharif Mr. Mohammad
Amin
Mr. Bilal Sharif Mr. Adil Shakeel
Mr. Hamza Shakeel

3. The directors have confirmed that none of them is serving as a director on more than five listed companies, including this
company (excluding the listed subsidiaries of listed holding companies where applicable).
4. The company has prepared a Code of Conduct and has ensured that appropriate steps have been taken to disseminate it
throughout the company along with its supporting policies and procedures.
5. The board has developed a vision/mission statement, overall corporate strategy and significant policies of the company. A
complete record of particulars of significant policies along with the dates on which they were approved or amended has been ma

6. All the powers of the board have been duly exercised and decisions on relevant matters have been taken by board/ sharehold
as empowered by the relevant provisions of the Act and these Regulations.
7. The meetings of the board were presided over by the Chairman and, in his absence, by a director elected by the board for
this purpose. The board has complied with the requirements of Act and the Regulations with respect to frequency, recording and
meeting of board.
8. The board of directors have a formal policy and transparent procedures for remuneration of directors in accordance with the
Act and these Regulations.
9. All the directors on the Board are accredited / exempted from directors training programs.
10. The board has approved appointment of CFO, Company Secretary and Head of Internal Audit, including their rem
and terms and conditions of employment and complied with relevant requirements of the Re
11. CFO and CEO duly endorsed the financial statements before approval of the board.
12. The board has formed committees comprising of members given below:
 ations in the following manner:

a director on more than five listed companies, including this

mpanies where applicable).
ured that appropriate steps have been taken to disseminate it
procedures.
corporate strategy and significant policies of the company. A
he dates on which they were approved or amended has been maintained.

cisions on relevant matters have been taken by board/ shareholders

Regulations.
an and, in his absence, by a director elected by the board for
Act and the Regulations with respect to frequency, recording and circulating minutes of

procedures for remuneration of directors in accordance with the

m directors training programs.

ompany Secretary and Head of Internal Audit, including their remuneration
ployment and complied with relevant requirements of the Regulations.
e approval of the board.
given below:
 STATEMENT OF COMPLIANCE WITH THE BEST PRACTICE
Audit OF CORPORATE GOVERNANCE FOR THE YEAR ENDED 30TH JUNE, 2018
Committee

Mr. Iqbal Mehboob Chairman - Independent Director

Mr. Bilal Sharif Member - Non- Executive Director
Mr. Hamza Shakeel Member - Non- Executive Director
Human Resource & Remuneration Committee
Mr. Iqbal Mehboob Chairman - Independent Director
Mr. Mohammad Amin Member - Non- Executive Director
Mr. Hamza Shakeel Member - Non- Executive Director
13. The terms of reference of the aforesaid committees have been formed, documented and advised to the committee for
compliance.
14. The frequency of meetings of the audit and human resource committees were as per following:
a) Audit Committee - Quarterly
b) HR and Remuneration Committee -Half Yearly
15. The board has set up an effective internal audit function who are considered suitably qualified and experienced for the purpo
and are conversant with the policies and procedures of the company.
16. The statutory auditors of the company have confirmed that they have been given a satisfactory rating under the quality contr
the ICAP and registered with Audit Oversight Board of Pakistan, that they or any of the partners of the firm, their spouses and m
hold shares of the company and that the firm and all its partners are in
compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the ICAP.

17. The statutory auditors or the persons associated with them have not been appointed to provide other services except in
accordance with the Act, these regulations or any other regulatory requirement and the auditors have confirmed that they have o
guidelines in this regard.
18. We confirm that all other requirements of the Regulations have been complied with.
On and on behalf of the Board of Directors
Karachi:
Date: 27th September 2018
STATEMENT OF COMPLIANCE WITH THE BEST PRACTICE
RPORATE GOVERNANCE FOR THE YEAR ENDED 30TH JUNE, 2018

ees have been formed, documented and advised to the committee for

an resource committees were as per following:

unction who are considered suitably qualified and experienced for the purpose
of the company.
irmed that they have been given a satisfactory rating under the quality control review program of
of Pakistan, that they or any of the partners of the firm, their spouses and minor children do not
its partners are in
ants (IFAC) guidelines on code of ethics as adopted by the ICAP.

with them have not been appointed to provide other services except in
her regulatory requirement and the auditors have confirmed that they have observed IFAC

gulations have been complied with.

ors
MOHAMMAD SHAHEEN
Chairman
 REVIEW REPORT TO THE MEMBERS
On the Statement of Compliance with Best Practices of the Code of Corporate Governance
To the members of Bhanero Textile Mills Limited on the Statement of Compliance with the Code of Corporate Governance
We have reviewed the enclosed Statement of Compliance with the Listed Companies (Code of Corporate Governance) Regulati
Regulations) prepared by the Board of Directors of Bhanero Textile Mills Limited for the year ended June 30, 2018 in accordan
requirements of regulation 40 of the Regulations.
The responsibility for compliance with the Regulations is that of the Board of Directors of the Company. Our responsibility is to re
Statement of Compliance reflects the status of the Company's compliance with the provisions of the Regulations and report if it d
highlight any non-compliance with the requirements of the Regulations. A review is limited primarily
to inquiries of the Company's personnel and review of various documents prepared by the Company to comply with the Regulati

As a part of our audit of the financial statements we are required to obtain an understanding of the accounting and internal contr
plan the audit and develop an effective audit approach. We are not required to consider whether the Board of Directors' stateme
covers all risks and controls or to form an opinion on the effectiveness of such internal
controls, the Company's corporate governance procedures and risks.

The Regulations require the Company to place before the Audit Committee, and upon recommendation of the Audit Committee,
of Directors for their review and approval, its related party transactions and also ensure compliance with the requirements of sec
Companies Act, 2017. We are only required and have ensured compliance of this requirement to the extent of the approval of th
transactions by the Board of Directors upon recommendation of the Audit Committee. We have not carried out procedures to ass
Company's process for identification of related parties and that whether the related party transactions were undertaken at arm's

Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not a
Company's compliance, in all material respects, with the requirements contained in the Regulations as
applicable to the Company for the year ended June 30, 2018.

Karachi:
Date: 27th September 2018
EW REPORT TO THE MEMBERS
ce with Best Practices of the Code of Corporate Governance
the Statement of Compliance with the Code of Corporate Governance
ance with the Listed Companies (Code of Corporate Governance) Regulations, 2017 (the
anero Textile Mills Limited for the year ended June 30, 2018 in accordance with the

is that of the Board of Directors of the Company. Our responsibility is to review whether the
mpany's compliance with the provisions of the Regulations and report if it does not and to
the Regulations. A review is limited primarily
various documents prepared by the Company to comply with the Regulations.

e required to obtain an understanding of the accounting and internal control systems sufficient to
h. We are not required to consider whether the Board of Directors' statement on internal control
he effectiveness of such internal
dures and risks.

the Audit Committee, and upon recommendation of the Audit Committee, place before the Board
arty transactions and also ensure compliance with the requirements of section 208 of the
ensured compliance of this requirement to the extent of the approval of the related party
ndation of the Audit Committee. We have not carried out procedures to assess and determine the
and that whether the related party transactions were undertaken at arm's length price or not.

n which causes us to believe that the Statement of Compliance does not appropriately reflect the
he requirements contained in the Regulations as
0, 2018.
M
U
S
Engagement Partner: H
Mushtaq Ahmed Vohra, T
(FCA) A
Q

&

C
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P
A
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Y
C
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a
r
t
e
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Report on the Audit of the Financial Statements
Opinion

We have audited the annexed financial statementsof Bhanero Textile Spinning Mills Limited (the Company), which comprise
financial position as at June 30, 2018, and the statement of profit or loss and other comprehensive income, the statement of cha
statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accou
explanatory information, and we state that we have obtained all the information and explanations which, to the best of our knowl
necessary for the purposes of the audit.

In our opinion and to the best of our information and according to the explanations given to us, the statement of financial position
loss and other comprehensive income, the statement of changes in equity and the statement of cash flows together with the note
conform with the accounting and reporting standards as applicable in Pakistan and give the information required by the Compan
2017), in the manner so required and respectively give a true and fair view of the state of the Company's affairs as at June 30, 2
and other comprehensive income, the changes in equity and its cash flows for the year then ended.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Our responsibi
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. W
the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Acco
the Institute of Chartered Accountants of Pakistan (the Code) and we have fulfilled our other ethical responsibilities in accordanc
believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matter(s)

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial stat
period. These matters were addressed in the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Following are the Key audit matter(s):

Key audit matter(s)
1 Preparation of Financial Statements Under Companies Act,
2017
As referred in note 2.6 to the annexed financial statements, the
Companies Act, 2017 (the Act), had been promulgated on May 30,
2017. financial statements for year ended as on June 30, 2018 are
prepared under first time application of the Act, 2017.
The Act, and 4th schedule has revised the disclosure
requirements of repealed Companies Ordinance 1984 and 4th
Schedule. Some disclosures which are duplicative to the IFRS
disclosures requirements are eliminated and some additional
significant disclosures are required.
Management performed the comparison of old and new
disclosure requirements of 4th schedule in order to identify the
changes in new reporting framework and assessed the impacts of
such changes.
This transition to new reporting framework is considered as key
audit matter because of their significant impacts in the financial
statements.
 hanero Textile Spinning Mills Limited (the Company), which comprise the statement of
nt of profit or loss and other comprehensive income, the statement of changes in equity, the
tes to the financial statements, including a summary of significant accounting policies and other
ained all the information and explanations which, to the best of our knowledge and belief, were

cording to the explanations given to us, the statement of financial position, statement of profit or
changes in equity and the statement of cash flows together with the notes forming part thereof
applicable in Pakistan and give the information required by the Companies Act, 2017 (XIX of
a true and fair view of the state of the Company's affairs as at June 30, 2018 and of the profit
y and its cash flows for the year then ended.

l Standards on Auditing (ISAs) as applicable in Pakistan. Our responsibilities under those

sibilities for the Audit of the Financial Statements section of our report. We are independent of
s Standards Board for Accountants' Code of Ethics for Professional Accountants as adopted by
Code) and we have fulfilled our other ethical responsibilities in accordance with the Code. We

for our opinion.

onal judgment, were of most significance in our audit of the financial statements of the current
our audit of the financial statements as a whole,
de a separate opinion on these matters.

How the matter was addressed in our audit

Our audit procedures in respect of this area included:
- We obtained an understanding of the related provisions and schedules of the
Act, applicable to the Company and prepared a checklist to assess the Company's
compliance with the disclosure requirement of the Act, and 4th schedule.
- Discussed with the management and those charged with governance about how
the Company is in compliance with all such changes.
We ensured that the financial statements have been prepared in accordance with
the approved accounting standards and the Act.
We challenged the appropriateness of management's assumptions applied in
calculating the value of the inventory and provisions by:
 Key audit matter(s) Report on the Audit of the Financial Statements
2 Valuation of Inventory - assessing the Company's accounting policies over recognizing inventory in complian
accounting standards;

We refer to accounting policies, note 18 & 19.

The total value of inventory consisting of Stocks and Stores as
of June 30, 2018, is amounted to Rs. 2.415 billion
representing 36.34 % of the total assets (2017: Rs. 2.783 billion,
47.21 % of the total assets). Inventories are measured the lower
of cost and net realizable value. As a result, the management
apply judgement in determining the appropriate values for slow-
moving or obsolete items.
The inventory is material to our audit because the inventory is
exposed to price fluctuation due to market factors. The valuation
of Finished Goods also involves complex methods of allocation
of factory overheads to inventory.
Due to above said factors, inventory costing was considered a
significant risk of inventory overvaluation.

Information Other than the Financial Statements and Auditor's Report Thereon
Management is responsible for the other information. The other information comprises director's report and last six years' financi
analysis but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consid
information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to
misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Board of Directors for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accountin
standards as applicable in Pakistan and the requirements of Companies Act, 2017(XIX of 2017) and for such internal control as
determines is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going con
applicable, matters related to going concern and using the going concern basis of accounting unless management either intends
Company or to cease operations, or has no realistic alternative but to do so.
Board of directors are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material mis
due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assuranc
guarantee that an audit conducted in accordance with ISAs as applicable in Pakistan will always detect a material misstatement
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonabl
influence the economic decisions of users taken on
the basis of these financial statements.

Report on the Audit of the Financial Statements

As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and maintain professional skepticism
We also:
e Audit of the Financial Statements
he Company's accounting policies over recognizing inventory in compliance with applicable
andards;

- attending inventory counts and reconciling the count results

to the inventory listings to test the completeness of data;
- evaluating the design and implementation of key inventory controls;
- testing the costing of the inventory and performed net realizable value testing to
assess whether the cost of the inventory exceeds net realizable value,obtained
through a detailed review of sales subsequent to the year-end;
- assessing whether bases of allocation of the variable and fixed costs are
reasonable; and
- an analytic review was also performed on inventory.
We assessed the Company's disclosures in the financial statements in
respect of inventory.

d Auditor's Report Thereon

he other information comprises director's report and last six years' financial
nd our auditor's report thereon.

the other information and we do not express any form of assurance

our responsibility is to read the other information and, in doing so, consider whether the other
tatements or our knowledge obtained in the audit or otherwise appears to be materially
e conclude that there is a material
to report that fact. We have nothing to report in this regard.

tors for the Financial Statements

presentation of the financial statements in accordance with the accounting and reporting
nts of Companies Act, 2017(XIX of 2017) and for such internal control as management
nancial statements that are free from

esponsible for assessing the Company's ability to continue as a going concern, disclosing, as
he going concern basis of accounting unless management either intends to liquidate the
ernative but to do so.
ompany's financial reporting process.

cial Statements
ut whether the financial statements as a whole are free from material misstatement, whether
at includes our opinion. Reasonable assurance is a high level of assurance, but is not a
SAs as applicable in Pakistan will always detect a material misstatement when it exists.
nsidered material if, individually or in the aggregate, they could reasonably be expected to

, we exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design an
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for ou
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Evaluate the appr
accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's abi
going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are b
evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to
going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whethe
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the board of directors regarding, among other matters, the planned scope and timing of the audit and sign
including any significant deficiencies in internal control that we identify during our audit. We also provide the board of dire
that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationshi
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the board of directors, we determine those matters that were of most significance in the au
statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unles
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of

Report on Other Legal and Regulatory Requirements

Based on our audit, we further report that in our opinion:
a) proper books of account have been kept by the Company as required by the Companies Act, 2017 (XIX of 2017);
b) the statement of financial position, the statement of profit or loss and other comprehensive income, the statement of change
statement of cash flows together with the notes thereon have been drawn up in conformity with the Companies Act, 2017 (XIX o
agreement with the books of account and returns;
c) investments made, expenditure incurred and guarantees extended during the year were for the purpose of the Company's b
d) zakatde ductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the company and d
Zakat Fund established under section 7 of that Ordinance.
The engagement partner on the audit resulting in this independent auditor's report is Mushtaq Ahmed Vohra, (FCA).

Karachi:
Date: 27th September 2018
ment of the financial statements, whether due to fraud or error, design and perform audit
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
m fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
override of internal control.
nt to the audit in order to design audit procedures that are appropriate in the circumstances,
n the effectiveness of the Company's internal control. Evaluate the appropriateness of
of accounting estimates and related disclosures made by management.
's use of the going concern basis of accounting and, based on the audit evidence obtained,
ents or conditions that may cast significant doubt on the Company's ability to continue as a
ertainty exists, we are required to draw attention in our auditor's report to the related
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
eport. However, future events or conditions may cause the Company to cease to continue as a

ontent of the financial statements, including the disclosures, and whether

ransactions and events in a manner that achieves fair presentation.

among other matters, the planned scope and timing of the audit and significant audit findings,
ol that we identify during our audit. We also provide the board of directors with a statement
s regarding independence, and to communicate with them all relationships and other matters
ence, and where applicable, related safeguards.

ors, we determine those matters that were of most significance in the audit of the financial
y audit matters. We describe these matters in our auditor's report unless law or regulation
extremely rare circumstances, we determine that a matter should not be communicated in our
ould reasonably be expected to outweigh the public interest benefits of such communication.

mpany as required by the Companies Act, 2017 (XIX of 2017);

profit or loss and other comprehensive income, the statement of changes in equity and the
have been drawn up in conformity with the Companies Act, 2017 (XIX of 2017) and are in

tees extended during the year were for the purpose of the Company's business; and
r Ordinance, 1980 (XVIII of 1980), was deducted by the company and deposited in the Central
e.
ependent auditor's report is Mushtaq Ahmed Vohra, (FCA).

MUSHTAQ &
COMPANY
Chartered
Accountants
 Statement of Financial Position
As At June 30, 2018
30th June, 30th June, 2017
Note 2018 Rupees
Rupees
EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized capital
6,000,000 (2017: 6,000,000) ordinary shares of Rs.10 each 60,000,000

Issued, subscribed and paid up capital 5 30,000,000

Reserves 6 4,000,000,000
Unappropriated profit 232,737,034
4,262,737,034

NON CURRENT LIABILITIES

Long term financing - secured 7 885,233,720
8 408,166,202
DEFERRED LIABILITIES

CURRENT LIABILITIES
Trade and other payables 9 771,694,591
Unclaimed dividend 10 758,605
Accrued markup / interest 11 15,177,821
Short term borrowings - secured 12 220,457,778
Current portion of long term financing 13 81,367,073
1,089,455,868

CONTINGENCIES AND COMMITMENTS 14

TOTAL EQUITY AND LIABILITIES   6,645,592,824

The annexed notes from 1 to 51 form an integral part of these financial statements.
Karachi: Kh
Date: 27th September 2018 Ch
30th June, 2017
Rupees

60,000,000

30,000,000

3,700,000,000
156,302,336
3,886,302,336

428,761,793
323,426,159

487,764,877
608,803
14,259,426
676,558,383
77,463,948
1,256,655,437

  5,895,145,725

Khurrum Salim
Chief Executive
 Statement of Financial Position
As At June 30, 2018
30th June, 30th June, 2017
Note 2018 Rupees
Rupees
ASSETS

NON CURRENT ASSETS

Property, plant and equipment 15 2,794,870,715

Capital work in progress 16 31,454,693
Long term deposits 17 28,532,816

2,854,858,224

CURRENT ASSETS

Stores, spares and loose tools 18 68,013,768

Stock in trade 19 2,347,207,583
Trade debts 20 841,493,842
Loans and advances 21 28,699,627
Trade deposits and short term prepayments 22 83,460,335
Other receivables 23 17,447,274
Income tax refundable 24 206,106,353
Sales tax refundable 25 130,039,795
Cash and bank balances 26 68,266,023
3,790,734,600

TOTAL ASSETS   6,645,592,824

Asim Mirza Mohammad Salim
Chief Financial Officer Director
 30th June, 2017
Rupees

2,029,939,532
54,912,334
26,205,436

2,111,057,302

69,783,783
2,713,408,274
544,451,299
31,620,577
67,443,307
2,976,269
120,557,596
194,061,359
39,785,959
3,784,088,423

  5,895,145,725
ohammad Salim
Director
 Statement of Profit or Loss
For The Year Ended June 30, 2018
Note 30th June,
2018
Rupees

Sales 27 8,073,845,411

Cost of sales 28 7,205,449,439

Gross profit 868,395,972
Other income 29 111,986,664
980,382,636

Distribution cost 30 184,654,595

Administrative expenses 31 126,889,297
Other operating expenses 32 32,707,628
Finance cost 33 93,971,363
438,222,883
Profit before tax 542,159,753

Provision for taxation 34

Current tax - current year 27,378,416

Current tax - prior year 3,594,287
Deferred 29,150,541
60,123,244

Profit after taxation for the year      482,036,509

Earnings per share - basic and diluted 35                160.68
The annexed notes from 1 to 51 form an integral part of these financial statements.
Khurrum Salim Mohammad Salim
Chief Executive Director
Karachi: Asim Mirza
Date: 27th September 2018 Chief Financial Officer
 30th June,
2017
Rupees

6,837,254,892

6,082,970,918
754,283,974
5,782,592
760,066,566

155,460,123
124,305,833
23,992,355
87,063,683
390,821,994
369,244,572

72,619,736
(1,159,756)
22,048,062
93,508,042

     275,736,530
                 91.91

Mohammad Salim
Director
Asim Mirza
Chief Financial Officer
 Statement of Comprehensive Income
For The Year Ended June 30, 2018
30th June, 2018
Note Rupees

Profit after taxation for the year 482,036,509

Other comprehensive income

Items that may be reclassified subsequently to
profit and loss
Items that will not be reclassified subsequently
to profit and loss

Actuarial gain on remeasurement of employees

retirement benefits - gratuity 8.1.2 5,902,811

Related deferred tax on remeasurement of

employees retirement benefits - gratuity (1,104,580)
4,798,231

Total comprehensive Income for the year 486,834,740

The annexed notes from 1 to 51 form an integral part of these financial statements.
Khurrum Salim Mohammad Salim
Chief Executive Director
Karachi: Asim Mirza
Date: 27th September 2018 Chief Financial Officer
 30th June, 2017
Rupees

275,736,530

1,254,616

(241,529)
1,013,087

276,749,617

Mohammad Salim
Director
Asim Mirza
Chief Financial Officer
 Statement of Changes in Equity
For The Year Ended June 30, 2018
Revenue Reserves
Share capital General Unappropriated Total
reserve profits
Rupees

Balance as at June 30, 2016 30,000,000 3,500,000,000 109,552,719

Total comprehensive income for the year

- - 276,749,617

Transfer to general reserve - 200,000,000 (200,000,000)

Final dividend paid for the year ended June

30, 2016 at the rate of PKR 10.0 per share
- - (30,000,000)
Balance as at June 30, 2017 30,000,000 3,700,000,000 156,302,336

Total comprehensive income for the year

- - 486,834,740

Final dividend paid for the year ended June

30, 2017 at the rate of PKR 36.80 per
share
- - (110,400,042)
Transfer to general reserve - 300,000,000 (300,000,000)

Balance as at June 30, 2018 30,000,000 4,000,000,000 232,737,034

The annexed notes from 1 to 51 form an integral part of these financial statements.
Khurrum Salim Mohammad Salim
Chief Executive Director
Karachi: Asim Mirza
Date: 27th September 2018 Chief Financial Officer
 ity
2018

3,639,552,719

276,749,617

(30,000,000)
3,886,302,336

486,834,740

(110,400,042)
-

4,262,737,034

Mohammad Salim
Director
Asim Mirza
Chief Financial Officer
 Statement of Cash Flows
For The Year Ended June 30, 2018
30th June,
2018

CASH FLOWS FROM OPERATING ACTIVITIES Rupees

Profit before tax 542,159
,753
Adjustments for:
Depreciation on property, plant and equipment 223,452,139

Provision for staff retirement benefits - gratuity 53,736,070

Provision for bad debts -
Infrastructure fee ETO 14,899,340
Infrastructure fee - Gas 21,880,288
(Gain) on disposal of property, plant and equipment (107,594,412)
Finance cost 93,971,363
Operating cash flows before changes in working capital 842,504,541
Working capital changes

(Increase)/decrease in current assets

Inventories 367,970,706
Trade debts (297,042,543)
Loans and advances 2,920,950
Trade deposits (16,017,028)
Other receivables (14,471,005)
Sales tax refundable 64,021,564
107,382,644
Increase in trade and other payables 283,929,714
Cash generated by operations 1,233,816,899
Finance cost paid (93,052,968)
Staff retirement benefits - gratuity paid (30,127,965)
Income taxes paid (116,521,460)
Long term deposits (2,327,380)
(242,029,773)
Net cash generated from I (used in) operating activities 991,787,126
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of property, plant and equipment 145,106,008
Additions of property, plant and equipment (1,002,437,277)
Net cash used in investing activities (857,331,269)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of long term financing (77,463,948)
Proceeds from long term financing 537,839,000
Short term borrowings - net (456,100,605)
Dividend paid (110,250,240)
Net cash I (used in) generated from financing activities (105,975,793)
Net increase I (decrease) in cash and cash equivalents 28,480,064
Cash and cash equivalents at the beginning of the year 39,785,959
Cash and cash equivalents at the end of the year 68,266,023
The annexed notes from 1 to 51 form an integral part of these financial statements.
 Karachi:
Date: 27th September 2018 Khurrum Salim Mohammad Salim Asim Mirza

Notes to the financial statements For the year ended June 30, 2018
1 THE COMPANY AND ITS OPERATIONS

1.1 Bhanero Textile Mills Limited ("the Company") was incorporated on 30th March 1980 as a public limited company in Pa
Companies Ordinance, 1984 and is quoted on Pakistan Stock Exchanges Limited. The registered office of the Company is lo
23/1, Sector 23, S. M. Farooq Road, Korangi Industrial Area Karachi.
1.2 The company is principally engaged in manufacturing and sales of yarn and fabric. The production facilities are located
in the province of Sindh and Feroze Wattwan, District Sheikhupura in the province of Punjab.
1.3 Summary of significant events and transactions in the current reporting period
The Company's financial position and performance were particularly affected by the following events and transactio
reporting period:
The Company added 10,800 new spindles (10 Ring Frames) to its production capacity. The frames are fully autom
coner machines. This upgraded technology is expected to help the Company achieve better production quality whil
effective in labour and production volumes alongwith ability to produce value added products such as compact yarn

2 BASIS OF PREPARATION
2.1 Statement of compliance
These financial statements have been prepared in accordance with the accounting and reporting standards as applicable in P
accounting and reporting standards applicable in Pakistan comprise of:
- International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as n
Companies Act 2017;
- Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as notified u
Act, 2017; and
- Provision of and directives issued under the Companies Act, 2017.

Where provisions of and directives issued under the Companies Act, 2017 differ from the IFRS, the provisions of an
under the Companies Act, 2017 have been followed.
2.2 Basis of measurement
These financial statements have been prepared on the historical cost basis except for derivative financial instruments that are
and employees retirement benefits at present value.
2.3 Functional and presentation currency
These financial statements are presented in Pakistani Rupees which is also the company's functional currency. All financial in
in Pakistani Rupees has been rounded to the nearest Rupee.
2.4 Use of estimates and judgments
The preparation of financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires
make judgments, estimates and assumptions that affect the application of policies and the reported amounts of assets, liabili
expenses. The estimates and associated assumptions are based on historical experience and various other factors that are b
reasonable under the circumstances, the results of which form the basis of making the judgments about the carrying values o
that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates a
period in which the estimates are revised if the revision affects only that period, or in the period of the revision and
revision affects both current and future periods.
Notes to the financial statements For the year ended June 30, 2018
Judgments made by the management in the application of approved accounting standards, as applicable in Pakistan, that have
the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in note 45 to t
statements.

2.5 Standards, interpretations and amendments to published approved accounting standards

2.5.1 Standards, interpretations and amendments to published approved accounting standards that are effective in
the current year:

Following standards, amendments and interpretations are effective for the year begining on or after January 1, 201
interpretations and the amendments are either not relevant to the Company's operations or are not expected to hav
on the Company's financial statements other than certain additional disclosures.
 ¤ Amendments to IAS 12, ‘Income taxes’ are applicable for annual periods beginning on or after January 1, 2017. The am
the existence of a deductible temporary difference depends solely on a comparison of the carrying amount of an asset and its
of the reporting period, and is not affected by possible future changes in the carrying amount or expected manner of recovery
amendments are not likely to have a material impact on the Company’s financial statements.

¤ Amendments to IAS 7, ‘Statement of cash flows’ are applicable for annual periods beginning on or after January 1, 201
requires disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities
changes arising from cash flow and non-cash changes. The amendments are not likely to have a material impact on the Com
statements.
¤ The other new standards, amendments to approved accounting standards and interpretations that are mandatory for th
beginning on January 1, 2017 are considered not to be relevant or to have any significant effect on the Company's financial r
operations.
2.5.2 Standards, amendments to approved accounting standards and interpretations that are not yet effective and
have not been early adopted by the company

¤ IFRS 9, ‘Financial instruments’ (effective for periods beginning on or after January 01, 2018). IASB has published the c
IFRS 9, ‘Financial instruments’, which replaces the guidance in IAS 39. This final version includes requirements on the classi
measurement of financial assets and liabilities; it also includes an expected credit losses model that replaces the incurred los
used today. The Company has yet to assess the impact of these changes on its financial statements.

¤ IFRS 15, ‘Revenue from contracts with customers’ is applicable to accounting periods beginning on or after January 1,
issued a new standard for the recognition of revenue. This will replace IAS 18 which covers contracts for goods and services
covers construction contracts. The new standard is based on the principle that revenue is recognized when control of a good
to a customer – so the notion of control replaces the existing notion of risks and rewards. The standard permits a modified re
for the adoption. Under this approach entity will recognize transitional adjustments in retained earnings on the date of initial a
restating the comparative period. They will only need to apply the new rules to contracts that are not completed as of the date
The Company has yet to assess the impact of this standard on its financial statements.

¤ IFRS 16, ‘Leases’ is applicable to accounting periods beginning on or after January 1, 2019. IFRS 16 will affect primaril
lessees and will result in the recognition of almost all the leases on the balance sheet date. This standard removes the curren
operating and finance leases and requires recognition of an asset (the right to use the leased item) and a financial liability to
all lease contracts. An optional exemption exists for short-term and low-value leases. The accounting by lessor will not signifi
differences may arise as a result of the new guidance on the definition of lease. Under IFRS 16, a contract is, or contains, a l
conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company ha
impact of this standard on its financial statements.

Notes to the financial statements For the year ended June 30, 2018
¤ IFRIC 23, ‘Uncertainty over income tax treatments’: (effective for periods beginning on or after January 01, 2019). This IFR
recognition and measurement requirements of IAS 12 ‘Income taxes’, are applied where there is uncertainty over income tax tre
explains how to recognise and measure deferred and current income tax assets and liabilities where there is uncertainty over a t
uncertain tax treatment is any tax treatment applied by an entity where there is uncertainty over whether that treatment will be ac
authority. The IFRIC applies to all aspects of income tax accounting where there is an uncertainty regarding the treatment of an
profit or loss, the tax bases of assets and liabilities, tax losses and credits and tax rates. The Company is yet to assess the full im
interpretation.

¤ There are a number of other minor amendments and interpretations to other approved accounting standards that are no
also not relevant to the company and therefore have not been presented here.
2.6 New disclosure requirements due to adoption of Companies Act, 2017
Due to adoption of the Companies Act, 2017 certain new and enhanced disclosures have become applicable, which are in ad
required by the international financial reporting standards. The relevant notes have been updated accordingly.

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3.1 Borrowings
Mark-up bearing borrowings are recognized initially at cost, less attributable transaction cost. Subsequent to initial recognition
borrowings are stated at amortized cost with any difference between cost and redemption value being recognized in the inco
period of the borrowings on an effective interest basis.
 3.2 Employee benefits
Short term employees benefits
The company recognizes the undiscounted amount of short term employee benefits to be paid in exchange for services rend
a liability after deducting amount already paid and as an expense in profit or loss unless it is included in the cost of inventorie
and equipment as permitted or required by the approved accounting standards. If the amount paid exceeds the undiscounted
the excess is recognized as an asset to the extent that the prepayment would lead to a reduction in future payments or cash

The Company provides for compensated absences of its employees on unavailed balance of leaves in the period in
earned.
Post retirement benefits Defined benefit plans
The Company operates an unfunded gratuity scheme (defined benefit plan) for all its permanent employees who ha
completed minimum qualifying period of service as defined under the respective scheme. Liability is adjusted annu
obligation and the adjustment is charged to profit or loss. The determination of the Company's obligation under the
assumptions to be made of future outcomes, the principal ones being in respect of increases in remuneration, expe
remaining working lives of employees and discount rate used to derive present value of defined benefit obligation.

Amounts recognized in the balance sheet represent the present value of the defined benefit obligation as adjusted
actuarial gains and losses and unrecognized past service cost.
Actuarial gains and losses are recognized in comprehensive income for the period in which these arise.
3.3 Taxation
Income tax expense comprises current tax and deferred tax. Income tax expense is recognized in profit or loss except to the
items recognized directly in equity, in which case it is recognized in equity.
Notes to the financial statements For the year ended June 30, 2018
Current
Current tax is the amount of tax payable on taxable income for the year, using tax rates enacted or substantively enacted by the
any adjustment to the tax payable in respect of previous years. Provision for current tax is based on higher of the taxable income
taxation in Pakistan after taking into account tax credits, rebates and exemptions available, if any, or minimum of turnover. Howe
covered under final tax regime, taxation is based on applicable tax rates under such regime. The amount of unpaid income tax in
current or prior periods is recognized as a liability. Any excess paid over what is due in respect of the current or prior periods is r
asset.

Deferred
Deferred tax is accounted for using the balance sheet liability method providing for temporary differences between
of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. In this regard, the e
taxation of the portion of income that is subject to final tax regime is also considered in accordance with the require
Release - 27" of the Institute of Chartered Accountants of Pakistan. Deferred tax is measured at rates that are expe
the temporary differences when they reverse, based on laws that have been enacted or substantively enacted by th
deferred tax liability is recognized for all taxable temporary differences. A deferred tax asset is recognized for dedu
differences to the extent that future taxable profits will be available against which temporary differences can be utili
assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the relate
realized.

Deferred tax is not recognized for timing differences that are not expected to reverse and for the temporary differen
initial recognition of goodwill and initial recognition of assets and liabilities in a transaction that is not a business co
at the time of transaction affects neither the accounting nor the taxable profit.
3.4 Provisions
A provision is recognized in the balance sheet when the company has a legal or constructive obligation as a result of past ev
that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amou

3.5 Trade and other payables

Liabilities for trade and other amounts payable are recognized and carried at cost, which is the fair value of the consideration
future for goods and services received, whether or not billed to the company.
3.6 Dividend
Dividend is recognized as a liability in the period in which it is approved by shareholders.
3.7 Property, plant and equipment and depreciation
 Owned assets
Property, plant and equipment, except freehold and leased hold land and capital work-in-progress are stated at cos
depreciation and impairment losses, if any. Freehold land and capital work-in-progress are stated at cost.

Subsequent cost
The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the it
the future economic benefits embodied within the part will flow to the company and its cost can be measured reliab
amount of the replaced part is derecognized. The costs of the day-to-day servicing of property, plant and equipmen
profit or loss as incurred.

Depreciation
Depreciation is charged to income on reducing balance method over its estimated useful life at the rates specified i
equipment note except for equipment and other assets. Equipment and other assets are depreciated over the perio
Depreciation on additions to property, plant and equipment is charged from the month in which an item is acquired
depreciation is charged for the month in which the item is disposed off.

Notes to the financial statements For the year ended June 30, 2018
The assets’ residual values and useful lives are reviewed at each financial year end and adjusted if impact on depreciation is ma

The gain or loss on disposal of an asset represented by the difference between the sale proceeds and the carrying
recognized as an income or expense.
Impairment
Where the carrying amount of asset exceeds its estimated recoverable amount it is written down immediately to its

Leased assets
Leases in terms of which the company assumes substantially all the risks and rewards of ownership are classified a
Asset acquired by way of finance lease is stated at an amount equal to the lower of its fair value and the present va
payments at the inception of the lease less accumulated depreciation and impairment losses, if any. Depreciation is
basis as used for owned assets.

Financial charges are allocated to accounting period in a manner so as to provide a constant rate of charge on outs

3.8 Capital work in progress

Capital work in progress and stores held for capital expenditure are stated at cost and represents expenditure incurred on pro
equipment during construction and installation. Cost includes borrowing cost as referred in accounting policy of borrowing co
to relevant property, plant and equipment category as and when assets are available for use.

3.9 Investments
Investment available for sale
Investment available for sale are initially recognized at fair value plus attributable transactions costs. Subsequent to initial rec
measured at fair value, with any resultant gain or loss being recognized in equity through comprehensive income. Gains or lo
-sale investments are recognized in equity through comprehensive income until the investments are sold or disposed off, or
are determined to be impaired, at that time cumulative gain or loss previously reported in the equity is included in current yea
account.

3.10 Derivative financial instruments

The Company enters into derivative financial instruments, which include future contracts. Derivatives are initially recorded at
remeasured to fair value on subsequent reporting dates. The fair value of a derivative is the equivalent of the unrealized gain
to market the derivative using prevailing market rates. Derivatives with positive market values (unrealized gains) are included
and derivatives with negative market values (unrealized losses) are included in other liabilities in the balance sheet. The resu
from derivatives held for trading purposes are included in income currently. No derivative is designated as hedging instrumen

3.11 Stores and spares

Stores and spares are valued at lower of cost and net realizable value. Cost is determined on a weighted average basis. Item
at cost comprising invoice value plus other charges incurred thereon.
3.12 Stock-in-trade
Stock-in-trade is stated at the lower of cost and net realizable value except waste which is valued at net realizable value. Cos
follows;
 Raw material At weighted average cost or replacement cost which ever is lower Work in progress
manufacturing cost
Finished goods At average manufacturing cost or net realizable value which ever is lower Waste
realizable value
Notes to the financial statements For the year ended June 30, 2018
Valuation of raw material, work in process and finished goods as on 30th June 2018 have been valued at lower of cost and net r
the requirement of IAS 2.

Raw material in transit is stated at invoice price plus other charges paid thereon upto the balance sheet date.
Average manufacturing cost in relation to work in process and finished goods, consist of direct material and propor
overheads based on normal capacity.
Net realizable value is the estimated selling price in the ordinary course of business less costs of completion and se

3.13 Trade debts and other receivables

These are carried at original invoice amount less provisions for any uncollectible amount. An estimate is made for doubtful re
collection of the amount is no longer probable. Debts considered irrecoverable are written off.
3.14 Cash and cash equivalents
Cash and cash equivalents comprise cash balances, cash in transit and balances with bank for the purpose of cash flow stat

3.15 Revenue recognition

Revenue from sales is recognized when significant risks and rewards of ownership are transferred to the buyer.
Interest income is recognized on the basis of constant periodic rate of return.
Dividend income is recognized when the right to receive dividend is established i.e. the book closure date of the inv
declaring the dividend.
3.16 Borrowing costs
Borrowing costs incurred on long term finances directly attributable for the construction / acquisition of qualifying assets are c
date, the respective assets are available for the intended use. All other mark-up, interest and other related charges are taken
account currently.
3.17 Impairment
All company’s assets are reviewed at each balance sheet date to determine whether there is objective evidence of impairmen
indication exists, the assets' recoverable amount is estimated. Impairment losses are recognized in the profit and loss accoun

3.18 Foreign currency translation

Foreign currency transactions are translated into Pak Rupees at exchange rates prevailing on the date of transaction. Moneta
liabilities in foreign currencies are retranslated into Pak Rupees at the rates of exchange prevailing at the balance sheet date

Exchange differences, if any, are taken to profit and loss account.

3.19 Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are set off and only the net amount is reported in the balance sheet when there is a le
to set off the recognized amount and the company intends to either settle on a net basis, or to realize the asset and settle the
simultaneously.
3.20 Transactions with related party
Transactions with related parties are priced at comparable uncontrolled market price. All transactions involving related parties
course business are conducted at arm’s length using valuation modes, as admissible. Parties are said to be related when the
as provided in the Companies Act 2017.
Notes to the financial statements For the year ended June 30, 2018
3.21 Segment reporting
Segment results that are reported to the CEO includes items directly attributable to a segment as well as those that can be alloc
basis. Unallocated items comprises mainly corporate assets, income tax assets, liabilities and related income and expenditure. S
expenditure is the total cost incurred during the period to acquire property , plant and equipment.
 30th June, 2017

Rupees Rupees
542,159 369,244,572
,753
185,752,115

59,583,839
119,747
15,428,117
-
(1,521,562)
87,063,683
715,670,511

(974,055,530)
(130,969,538)
60,185,009
559,628
14,244,963
(47,536,951)
(1,077,572,419)
124,570,247
(237,331,661)
(80,230,780)
(41,037,795)
(82,951,976)
-
(204,220,551)
(441,552,212)

4,591,890
(315,307,744)
(310,715,854)

(77,463,948)
157,638,000
676,558,383
(29,964,085)
726,768,350
(25,499,716)
65,285,675
39,785,959
 Asim Mirza

a public limited company in Pakistan under

ered office of the Company is located at Umer House,

production facilities are located at Kotri, District Dadu

following events and transactions during the

city. The frames are fully automated through linked

ve better production quality whilst remaining cost
products such as compact yarn and fine counts.

ing standards as applicable in Pakistan. The

g Standards Board (IASB) as notified under the

untants of Pakistan as notified under the Companies

m the IFRS, the provisions of and directives issued

ve financial instruments that are stated at fair value

nctional currency. All financial information presented

applicable in Pakistan, requires management to

ported amounts of assets, liabilities, income and
d various other factors that are believed to be
ents about the carrying values of assets and liabilities
s.

sions to accounting estimates are recognized in the

n the period of the revision and future periods if the

pplicable in Pakistan, that have significant effect on

ar are discussed in note 45 to these financial

andards
andards that are effective in

gining on or after January 1, 2017. These standards,

tions or are not expected to have significant impact
 r after January 1, 2017. The amendment clarify that
rying amount of an asset and its tax base at the end
or expected manner of recovery of the asset. The

ning on or after January 1, 2017. The amendment

arising from financing activities, including both
e a material impact on the Company’s financial

ations that are mandatory for the financial year

ct on the Company's financial reporting and

at are not yet effective and

018). IASB has published the complete version of

udes requirements on the classification and
el that replaces the incurred loss impairment model
ements.

eginning on or after January 1, 2018. The IASB has

ontracts for goods and services and IAS 11 which
ognized when control of a good or service transfers
standard permits a modified retrospective approach
earnings on the date of initial application, i.e. without
are not completed as of the date of initial application.

019. IFRS 16 will affect primarily the accounting by

his standard removes the current distinction between
item) and a financial liability to pay rentals for virtually
ounting by lessor will not significantly change. Some
6, a contract is, or contains, a lease if the contract
consideration. The Company has yet to assess the

ter January 01, 2019). This IFRIC clarifies how the

uncertainty over income tax treatments. The IFRIC
ere there is uncertainty over a tax treatment. An
whether that treatment will be accepted by the tax
y regarding the treatment of an item, including taxable
mpany is yet to assess the full impact of the

ccounting standards that are not yet effective and are

ome applicable, which are in addition to those

ated accordingly.

Subsequent to initial recognition, mark-up bearing

ue being recognized in the income statement over the
d in exchange for services rendered by employees as
ncluded in the cost of inventories or property, plant
paid exceeds the undiscounted amount of benefits,
ion in future payments or cash refund.

alance of leaves in the period in which the leaves are

s permanent employees who have

heme. Liability is adjusted annually to cover the
Company's obligation under the scheme requires
ncreases in remuneration, expected average
e of defined benefit obligation.

d benefit obligation as adjusted for unrecognized

n which these arise.

ed in profit or loss except to the extent that it relates to

or substantively enacted by the reporting date, and

on higher of the taxable income at current rates of
, or minimum of turnover. However, for income
amount of unpaid income tax in respect of the
the current or prior periods is recognized as an

emporary differences between the carrying amounts

x purposes. In this regard, the effects on deferred
d in accordance with the requirement of "Technical
measured at rates that are expected to be applied to
d or substantively enacted by the reporting date. A
ax asset is recognized for deductible temporary
mporary differences can be utilized. Deferred tax
o longer probable that the related tax benefit will be

e and for the temporary differences arising from the

action that is not a business combination and that
.

obligation as a result of past events, and it is probable

mate can be made of the amount of the obligation.

e fair value of the consideration to be paid in the

 rk-in-progress are stated at cost less accumulated
ess are stated at cost.

in the carrying amount of the item if it is probable that

ts cost can be measured reliably. The carrying
of property, plant and equipment are recognized in

seful life at the rates specified in property, plant and

s are depreciated over the period of three years.
th in which an item is acquired or capitalized while no

d if impact on depreciation is material.

sale proceeds and the carrying amount of the asset is

written down immediately to its recoverable amount.

rds of ownership are classified as finance lease.

its fair value and the present value of minimum lease
nt losses, if any. Depreciation is charged on the same

constant rate of charge on outstanding liability.

ents expenditure incurred on property, plant and

counting policy of borrowing cost. Transfers are made

costs. Subsequent to initial recognition these are

prehensive income. Gains or losses on available-for
nts are sold or disposed off, or until the investments
equity is included in current year's profit and loss

vatives are initially recorded at cost and are

quivalent of the unrealized gain or loss from marking
(unrealized gains) are included in other receivables
in the balance sheet. The resultant gains and losses
esignated as hedging instrument by the Company.

a weighted average basis. Items in transit are valued

ued at net realizable value. Cost is determined as

er is lower Work in progress At average

hich ever is lower Waste Net

alued at lower of cost and net realizable value as per

o the balance sheet date.

st of direct material and proportion of manufacturing

less costs of completion and selling expenses.

estimate is made for doubtful receivables when

or the purpose of cash flow statement.

erred to the buyer.

the book closure date of the investee company

isition of qualifying assets are capitalized up to the

other related charges are taken to the profit and loss

objective evidence of impairment. If any such

zed in the profit and loss account currently.

the date of transaction. Monetary assets and

ailing at the balance sheet date.

alance sheet when there is a legally enforceable right

realize the asset and settle the liability

actions involving related parties arising in the normal

are said to be related when they meet the definition

well as those that can be allocated on a reasonable

ated income and expenditure. Segment capital
 The business segments are engaged in providing products and services which are subject to risks and rewards wh
and reward of other segment Segments reported are Spinning, Weaving and Power Generation, Which also reflect
structure of company.
4 CAPITAL MANAGEMENT
The company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to susta
development of the business. The board of directors monitors the return on capital and level of dividends to ordinary shareholde
seeks to keep a balance between the higher return that might be possible with higher level of borrowings and the advantages an
a sound capital position. There were no changes in the company's approach to capital management during the year. Further the
subject to externally imposed capital requirements.

5 ISSUED, SUBSCRIBED AND PAID UP CAPITAL

30-Jun-18 30-Jun-17 30-Jun-18 30-Jun-17
1,762,500 1,762,500 Ordinary shares of PKR 10 each allotted 17,625,00 17,625,00
0 0
for consideration'-fully paid in cash
1,237,500 1,237,500 Ordinary shares of Rs 10. each allotted 12,375,000 12,375,000
3,000,000 3,000,000 as bonus shares 30,000,000 30,000,000
5.1 Associated company holds 500,600 (2017: 500,600) ordinary shares of Rs. 10 each in the company.

6 RESERVES 30-Jun-18
General reserve - Revenue reserve 4,000,000,000
7 LONG TERM FINANCING - SECURED From Financial 4,000,000,000
Institutions

LTFF Loans Non - LTFF 30-06-18

Note Loans Rupees
Bank Al Habib Limited - Term Finance 7.01 16,100,000 - 16,100,000
Bank Al Habib Limited - Term Finance 7.02 11,500,000 - 11,500,000
MCB Bank Limited - Term Finance 7.03 81,200,000 - 81,200,000
MCB Bank Limited - Term Finance 7.04 10,970,000 - 10,970,000
MCB Bank Limited - Term Finance 7.05 20,621,000 - 20,621,000
MCB Bank Limited - Term Finance 7.06 - 17,247,000 17,247,000
Meezan Bank Limited - Term Finance 7.07 - 71,521,330 71,521,330
Meezan Bank Limited - Term Finance 7.08 - 7,709,405 7,709,405
Meezan Bank Limited - Term Finance 7.09 - 54,873,440 54,873,440
Meezan Bank Limited - Term Finance 7.10 - 137,019,618 137,019,618
MCB Bank Limited - Term Finance 7.11 98,316,000 - 98,316,000
MCB Bank Limited - Term Finance 7.12 72,138,000 - 72,138,000
MCB Bank Limited - Term Finance 7.13 105,548,000 - 105,548,000
MCB Bank Limited - Term Finance 7.14 4,223,000 - 4,223,000
MCB Bank Limited - Term Finance 7.15 - 4,665,000 4,665,000
ubject to risks and rewards which differ from the risk
Generation, Which also reflects the management

market confidence and to sustain future

vidends to ordinary shareholders. The company
owings and the advantages and security afforded by
ent during the year. Further the company is not

30-Jun-17
17,625,00
0

12,375,000
30,000,000

30-Jun-18 30-Jun-17
4,000,000,000 3,700,000,000
4,000,000,000 3,700,000,000

30-06-17
Rupees
16,100,000
11,500,000
81,200,000
10,970,000
20,621,000
17,247,000
91,955,998
9,912,093
70,551,568
176,168,082
-
-
-
-
-
 Notes to the financial statements For the
year ended June 30, 2018 LTFF Loans Non - LTFF 30-06-18

Note Loans Rupees

MCB Bank Limited - Term Finance 7.16 - 8,242,000 8,242,000
MCB Bank Limited - Term Finance 7.17 - 7,638,000 7,638,000
MCB Bank Limited - Term Finance 7.18 232,848,000 - 232,848,000
MCB Bank Limited - Term Finance 7.19 4,221,000 - 4,221,000
657,685,000 308,915,793 966,600,793
Less: current maturity

Bank Al Habib Limited - Term Finance 7.01 1,006,250 - 1,006,250

Bank Al Habib Limited - Term Finance 7.02 359,375 - 359,375
MCB Bank Limited - Term Finance 7.03 2,537,500 - 2,537,500
Meezan Bank Limited - Term Finance Loan 7.07 - 20,434,668 20,434,668
Meezan Bank Limited - Term Finance Loan 7.08 - 2,202,688 2,202,688
Meezan Bank Limited - Term Finance Loan 7.09 - 15,678,128 15,678,128
Meezan Bank Limited - Term Finance Loan 7.10 - 39,148,464 39,148,464
3,903,125 77,463,948 81,367,073
653,781,875 231,451,845 885,233,720
Security

Repayment

Markup on
LTF
Markup Rates on NON- LTF

Hypothecation charge on plant and Repayable in thirty two 2.4% (2017: 2.4%) -
7.01

machinery of PKR 267.0 million of quarterly installments,

unit III located at Ferrozwatton, commencing from
Sheikhupura-Faisalabad Road, February 22, 2019. Sheikhupura.
7 Covered under securities for term Repayable in thirty two 2.4% (2017: 2.4%) -
. finance 7.01 quarterly installments, 2.4% (2017: 2.4%) -
0 Hypothecation charge on plant and commencing from April 20,
2 machinery of PKR 1,200.0 million 2019.
7 Repayable in thirty two
. quarterly installments,
0
3 of unit II located at Ferrozwatton, commencing from April
Sheikhupura-Faisalabad Road, 30, 2019. Sheikhupura.
7 Covered under securities for term Repayable in thirty two 2.4% (2017: 2.4%) -
. finance 7.03 quarterly installments, 2.4% (2017: 2.4%) -
0 Covered under securities for term commencing from July 07, - 3 Months KIBOR + 0.4% (2017
4 finance 7.03 2019. - 0.4%)
7 Covered under securities for term Repayable in thirty two 3 Months KIBOR + 0.65% (201
. finance 7.03 quarterly installments, + 0.65%)
0 Hypothecation charge on plant and commencing from July 26,
5 machinery of PKR 666.7 million of 2019.
7 Repayable in thirty two
. quarterly installments,
0 commencing from August 31,
6 2019.
7 Repayable in twenty four
. quarterly installments,
0
7

unit II located at Ferrozwatton, commencing from

Sheikhupura-Faisalabad Road, January 15, 2016. Sheikhupura.

Notes to the financial statements

For the year ended June 30, 2018
30-06-18 30-06-17

Rupees
-
-
-
-
506,225,741

-
-
-
20,434,668
2,202,688
15,678,128
39,148,464
77,463,948
428,761,793

-
-
Months KIBOR + 0.4% (2017: 3 Months KIBOR +
4%)
Months KIBOR + 0.65% (2017: 3 Months KIBOR
0.65%)
 Security Repayment Markup on
LTF
7.08 Covered under securities for term Repayable in twenty four -
finance 7.07 quarterly installments,
commencing from
January 15, 2016.
7.09 Covered under securities for term Repayable in twenty four -
finance 7.07 quarterly installments,
commencing from
January 15, 2016.
7.10 Covered under securities for term Repayable in twenty four -
finance 7.07 quarterly installments,
commencing from
January 15, 2016.
7.11 Hypothecation charge on plant and Repayable in Thirty two 2.4% (2017: Nil)
machinery of PKR 1,200 million of quarterly installments,
unit II located at Ferrozwatton, commencing from
Sheikhupura-Faisalabad Road, October 14, 2019.
Sheikhupura.
7.12 Hypothecation charge on plant and Repayable in Thirty two 2.4% (2017: Nil)
machinery of PKR 1,200 million of quarterly installments,
unit II located at Ferrozwatton, commencing from
Sheikhupura-Faisalabad Road, November 17, 2019.
Sheikhupura.
7.13 Hypothecation charge on plant and Repayable in Thirty two 2.4% (2017: Nil)
machinery of PKR 1,200 million of quarterly installments,
unit II located at Ferrozwatton, commencing from
Sheikhupura-Faisalabad Road, December 11, 2019.
Sheikhupura.
7.14 Hypothecation charge on plant and Repayable in Thirty two 2.4% (2017: Nil)
machinery of PKR 1,200 million of quarterly installments,
unit II located at Ferrozwatton, commencing from
Sheikhupura-Faisalabad Road, December 27, 2019.
Sheikhupura.
7.15 Hypothecation charge on plant and Repayable in Thirty two 2.4% (2017: Nil)
machinery of PKR 1,200 million of quarterly installments,
unit II located at Ferrozwatton, commencing from
Sheikhupura-Faisalabad Road, October 28, 2019.
Sheikhupura.
7.16 Hypothecation charge on plant and Repayable in Thirty two 2.4% (2017: Nil)
machinery of PKR 1,200 million of quarterly installments,
unit II located at Ferrozwatton, commencing from
Sheikhupura-Faisalabad Road, October 28, 2019.
Sheikhupura.
7.17 Hypothecation charge on plant and Repayable in Thirty two -
machinery of PKR 1,200 million of quarterly installments,
unit II located at Ferrozwatton, commencing from
Sheikhupura-Faisalabad Road, October 28, 2019.
Sheikhupura.
7.18 Hypothecation charge on plant and Repayable in Thirty two 2.4% (2017: Nil)
machinery of PKR 1,200 million of quarterly installments,
unit II located at Ferrozwatton, commencing from
Sheikhupura-Faisalabad Road, January 06, 2020.
Sheikhupura.
7.19 Hypothecation charge on plant and Repayable in Thirty two 2.4% (2017: Nil)
machinery of PKR 1,200 million of quarterly installments,
unit II located at Ferrozwatton, commencing from
Sheikhupura-Faisalabad Road, January 10, 2020.
Sheikhupura.
 Markup Rates on NON- LTF

3 Months KIBOR + 0.65% (2017: 3

Months KIBOR + 0.65%)

3 Months KIBOR + 0.65% (2017: 3

Months KIBOR + 0.65%)

3 Months KIBOR + 0.65% (2017: 3

Months KIBOR + 0.65%)

3 Months KIBOR + 0.4% (2017: Nil)

3 Months KIBOR + 0.4% (2017: Nil)

3 Months KIBOR + 0.4% (2017: Nil)

-
 Notes to the financial statements For the year ended June
30, 2018 30-Jun-18
Rupees

8 DEFERRED LIABILITIES Note

Staff retirement benefits - gratuity 8.1 149,566,641

Deferred taxation 8.2 111,301,359
Infrastructure fee payable - ETO 8.3 80,971,084
Infrastructure fee payable - Gas 8.4 66,327,118
408,166,202

8.1 Staff retirement benefits - gratuity

8.1.1 Movement in net liability recognized in the balance sheet

Present value of defined benefits obligation - at the beginning of the year 8.1.2 131,861,347
Charged to profit and loss account and comprehensive income 47,833,259
Benefits paid during the year (30,127,965)
Present value of defined benefits obligation - at the end of the year 149,566,641

8.1.2 Amount charged to profit and loss account I other comprehensive income

Current service cost 42,932,314

Interest cost 10,803,756
Remeasurement charged to other comprehensive income (5,902,811)
47,833,259
8.1.3 The company operates an unfunded gratuity scheme (defined benefit plan) for all its permanent employees who have
completed minimum qualifying period of service as defined under the respective scheme. Provisions are made annually to co
under the scheme on the basis of actuarial valuation and are charged to income. Actuarial valuation has been carried out by
as at June 30, 2018 using the projected unit credit method assuming a discount rate of 10% (2017: 9.25%) per annum and e
increase in salaries at 10% (2017: 9.25%) per
annum.
8.1.4 There is no unrecognized actuarial loss / gain.
2018 2017 2016 2015 2014
8.1.5 Historical information Rupees Rupees Rupees Rupees Rupee
Present value of defined benefits obligation 149,566,641 131,861,347 114,569,919 132,185,864
Experience adjustments on plan liabilities (5,902,811) (1,254,616) (25,991,525) 9,931,102
8.1.6 Sensitivity analysis of actuarial assumptions
The calculation of defined benefit obligation is sensitive to assumptions given above. The below information summarizes how
obligation at the end of the reporting period would have increased / (decreased) as a result of
change in respective assumptions by 100 basis point.
Increase in
assumption

Discount rate (16,164,912) 19,759,185

Expected rate of increase in future salary 20,327,315 (16,904,1

8.1.7 The expected gratuity expense comprising of service cost and net interest for the year ending 30th June 2019 works o

8.1.8 The average duration of defined benefit obligation is 12.05 years.

 30-Jun-18 30-Jun-17
Rupees Rupees

131,861,347
81,046,238
66,071,744
44,446,830
323,426,159

114,569,919
58,329,223
(41,037,795)
131,861,347

50,884,119
8,699,720
(1,254,616)
58,329,223
nent employees who have
ons are made annually to cover the obligation
ion has been carried out by independent valuer
17: 9.25%) per annum and expected rate of

6 2015 2014
es Rupees Rupees
132,185,864 103,621,394
9,931,102 8,235,989

nformation summarizes how the defined benefit

Increase in Decrease in
assumption assumption
(16,164,912) 19,759,185

20,327,315 (16,904,125)

ing 30th June 2019 works out to PKR 53,073,921.

Notes to the financial statements For the year ended June
30, 2018 30-06-18

8.2 Deferred taxation Rupees

Deferred tax liability I (assets) arising in respect of: Taxable temporary 153,042,901
differences
Accelerated tax depreciation on owned assets
Deductible temporary differences

Provision for employee benefit (27,988,087)

Provision for doubtful debts and advances (13,753,455)
(41,741,542)
111,301,359
8.2.1 Deferred taxation has been recognized as follows
Recognized in profit and loss account 29,150,541
Recognized in equity 1,104,580
30,255,121
8.2.2 Revenue from export sales of the Company is subject to taxation under the final tax regime, while the remaining portion
assessment under normal provisions of the Ordinance. Deferred tax is provided for only that portion of timing differences that
taxable under normal provisions of the Ordinance. These differences are calculated at that proportion of total timing differenc
other than the indirect exports taxable under section 154 (3) of the Ordinance, bear to the total sales revenue based on histo
Deferred tax has been calculated at 29% of the timing differences so determined based on tax rates notified by the Governm
future tax years.

8.3 This represents amount payable to Excise and Taxation Department, Government of Sindh in respect of infrastructure f
version of law (i.e. Sindh Finance (Amendment) Ordinance 2006). The Supreme Court in his judgment dated 17th May 2011
version of law (i.e. Sindh Finance (Amendment) Ordinance 2006) is valid and hence the levy imposed and collected from the
fifth version i.e. 28th December 2006 is valid and all imposition and collection before 28th December 2006 are declared to be
has now filed petition in Sindh High Court, challenging fifth version of law (i.e. Sindh Finance (Amendment) Ordinance 2006 r
infrastructure fee from the 28th December 2006. During the pendency of decision on fifth version of law, Sindh High Court ha
May 2011 to pay 50% of liability to Excise and Taxation Department, Government of Sindh, and provide bank guarantee of th
as calculated in accordance with the decision of Supreme Court of Pakistan. Subsequent imports of the company be release
payment infrastructure fee to Excise and Taxation Department, Government of Sindh and furnishing bank guarantee of balan
also includes an amount payable to Excise and Taxation Department, Government of Punjab in respect of Infrastructure Dev
company had filed WP No. 25754-16 in Lahore High Court, and during the pendency of the decision, Lahore High Court has
of liability to Excise and Taxation Department, Government of Punjab and provide bank guarantee of the balance 50% amou
provided bank guarantees amounting to PKR 75.094 Million (June 30, 2017: PKR 66.07 Million) in respect of unpaid infrastru
company has accrued unpaid infrastructure fee.

8.4 This represents the Gas Infrastructure Development Cess (GIDC) levied by the Sui Northern Gas Pipelines Limited (SN
and others have filed Suits before the Lahore High Court (LHC) challenging the said undue levy. The LHC has granted the S
of the Company and have directed the SNGPL, in the respective cases, not to demand the said Cess. The liability thus repre
GIDC, payable, against which the Company has got the Stay orders, in its favour.
 30-06-18 30-06-17

Rupees Rupees
3,042,901 120,580,421

(25,384,966)
(14,149,217)
(39,534,183)
81,046,238

22,048,062
241,529
22,289,591
, while the remaining portion of revenue attracts
on of timing differences that represent income
rtion of total timing differences that the local sales,
ales revenue based on historical and future trends.
tes notified by the Government of Pakistan for

in respect of infrastructure fee levied through fifth

gment dated 17th May 2011 has decided that fifth
osed and collected from the effective date of the
ber 2006 are declared to be invalid. The company
mendment) Ordinance 2006 regarding levy of
of law, Sindh High Court has directed on 31st
provide bank guarantee of the remaining amount
of the company be released against 50%
hing bank guarantee of balance 50% amount. This
espect of Infrastructure Development Cess. The
ion, Lahore High Court has directed to pay 50%
e of the balance 50% amount.The company has
n respect of unpaid infrastructure fee. The

n Gas Pipelines Limited (SNGPL). This Company

The LHC has granted the Stay Orders, in favour
Cess. The liability thus represents the amount of
 Notes to the financial statements
For the year ended June 30, 2018
30-Jun-18 30-Jun-17
Note Rupees Rupees

9 TRADE AND OTHER PAYABLES

Creditors 9.1 224,378,515
Advance from customers & others 285,729,728
Accrued liabilities 170,251,169
Workers' Profit Participation Fund 9.2 29,007,844
Workers Welfare Fund 32 57,361,801
Others 4,965,534
771,694,591

9.1 No balance with associated undertaking is outstanding at year end.

9.2 Workers' profit participation fund
Opening balance 19,773,556
Interest on funds utilized in the Company's business 9.2.1 5,289,478
25,063,034
Paid to the fund  (25,063,034) 
-
Allocation for the year 32 29,007,844
    29,007,844
9.2.1
Interest on workers' profit participation fund has been provided @ 276% (2017: 75%) per annum.

10 UNCLAIMED DIVIDEND
Unclaimed dividend 758,605
758,605
11 ACCRUED MARKUP I INTEREST

Mark-up accrued on secured:

- long-term financing 8,616,863
- short-term borrowings 6,560,958
15,177,821
12 SHORT TERM BORROWINGS - SECURED
From banking companies
Short term loan 12.2 220,457,778
220,457,778
12.1 The aggregate approved short term borrowing facilities amounting to PKR 5.115 billion (2017: PKR 5.115 billion).
12.2 These facilities are subject to mark-up ranging from 1 to 3 month KIBOR + spread between 0.05% to 2% (2017: 1 to 3
spreads between 0.05% to 2%) per annum payable quarterly. These are secured against joint hypothecation charge on stock

30-Jun-18
Note Rupees

13 CURRENT PORTION OF LONG TERM BORROWINGS

Long-term financing

7 81,367,073
81,367,073
 30-Jun-17
Rupees

169,267,489
150,480,498
91,334,877
19,773,556
53,662,017
3,246,440
487,764,877

17,379,052
2,353,942
19,732,994
 (19,732,994) 
-
19,773,556
    19,773,556
m.

608,803
608,803

6,003,835
8,255,591
14,259,426

676,558,383
676,558,383
(2017: PKR 5.115 billion).
0.05% to 2% (2017: 1 to 3 month KIBOR +
pothecation charge on stocks and receivables.

30-Jun-17
Rupees

77,463,948
77,463,948
 Notes to the financial statements For the year ended June 30, 2018
14 CONTINGENCIES AND COMMITMENTS

Contingencies
14.1 The Company has issued post dated cheques amounting to PKR 341,896,954 (2017: PKR 306,762,370) in favor of Co
lieu of custom levies against various statutory notifications. The post dated cheques furnished by the company are likely to be
fulfillment of term of related SROs.
14.2 Bank guarantee issued to Sui Northern Gas Pipeline Company Limited amounting to PKR 121.168 Million (2017: PKR 4
Pakistan State Oil PKR 2.25 million (2017: PKR 2.25 million).
14.3 Bills discounted 410,78
Commitments 2,583
Letter of credit (for store, raw material and machinery) 490,82
9,539
Year Ended June 30, 2018
15 PROPERTY, PLANT AND EQUIPMENT
PARTICULARS COST DEPRECI TION Book value as
As at July Additions I Transfers As at June 30, As at July 01, For A
the year Transfers I As at June at June 30,
01, 2017 (disposals) 2018 2017 (disposal) 30, 2018 2018
Rupees
Company owned
Leasehold land 433,414 - - 433,414 - - - -
Freehold land 306,812,466 235,887,464 - 513,824,444 - - - -
(28,875,486)
Building on leasehold land 142,689,749 8,624,206 - 151,313,955 96,139,323 4,644,576 - 100,783,899
Building on freehold land 320,707,695 53,294,634 - 374,002,329 224,202,726 10,479,397 - 234,682,123
Office premises on leasehold 29,894,675 15,553,784 - 45,448,459 16,339,544 677,757 - 17,017,301
land
Office premises on freehold land 84,248,571 27,031,120 - 111,279,691 39,526,435 3,249,774 - 42,776,209
Plant and machinery 3,204,974,995 635,765,387 - 3,793,129,269 1,793,323,710 179,859,382 - 1,932,226,735
(47,611,113) - - (40,956,357)

Equipments and other assets 80,305,235 28,915,913 - 109,221,148 70,851,837 9,960,255 - 80,812,092
Electric Installation 74,503,775 - - 74,503,775 27,462,000 4,630,374 - 32,092,374
Gas Line & Pipe 7,180,289 - - 7,180,289 4,957,621 222,267 - 5,179,888
Cooling towers 5,223,570 - - 5,223,570 3,551,292 167,228 - 3,718,520
Ventilation system 1,461,897 - - 1,461,897 981,899 48,000 - 1,029,899
Boiler 18,244,925 - - 18,244,925 12,261,464 598,346 - 12,859,810
Factory equipments 13,757,029 - - 13,757,029 12,282,518 144,857 - 12,427,375
Furniture and fixtures - Factory 5,318,108 408,910 - 5,727,018 4,388,109 133,891 - 4,522,000
Office equipments 23,308,336 62,650 - 23,370,986 16,766,172 655,782 - 17,421,954
Furniture and fixtures - Office 872,972 1,785,000 - 2,657,972 729,572 133,340 - 862,912
Vehicles 98,799,551 18,565,850 - 106,685,557 65,033,498 7,846,913 - 64,181,921
(10,679,844) - (8,698,490)
June 30, 2018 4,418,737,252 1,025,894,918 - 5,357,465,727 2,388,797,720 223,452,139 (49,654,847) 2,562,595,012
(87,166,443) - - - - - -
Year Ended June 30, 2017
PROPERTY, PLANT AND EQUIPMENT
PARTICULARS COST DEPRECI TION Book value as
As at July Additions I Transfers As at June 30, As at July 01, For A
the year Transfers I As at June at June 30,
01, 2017 (disposals) 2018 2017 (disposal) 30, 2018 2018
Rupees
Company owned
Leasehold land 433,414 - - 433,414 - - - -
Freehold land 274,500,226 32,312,240 - 306,812,466 - - - -
Building on leasehold land 141,458,337 1,231,412 - 142,689,749 91,252,410 4,886,913 -96,139,323
Building on freehold land 320,707,695 - - 320,707,695 213,479,952 10,722,774 -224,202,726
R 306,762,370) in favor of Collector of Customs in
y the company are likely to be released after the

121.168 Million (2017: PKR 43.759 million) and

410,78 7,824,947
2,583 553,734,1
490,82 94
9,539

Book value as
at June 30, Rat
2018 e

433,414 -
513,824,444 -

50,530,056 10%
139,320,206 10%
28,431,158 5%
68,503,482 5%
1,860,902,534 10%

Three
28,409,056 years
42,411,401 10%
2,000,401 10%
1,505,050 10%
431,998 10%
5,385,115 10%
1,329,654 10%
1,205,018 10%
5,949,032 10%
1,795,060 10%
42,503,636 20%

2,794,870,715
-

Book value as
at June 30, Rat
2018 e

433,414 -
306,812,466 -
46,550,426 10%
96,504,969 10%
 Notes to the financial statements
For the year ended June 30, 2018
PARTICULARS COST DEPRECIATION Book value as
As at July 01, Additions I Transfers As at June As at July 01, For the year Transfers I As at June at June 30,
2017 (disposals) 30, 2018 2017 (disposal) 30, 2018 2018
Rupees
Office premises on leasehold land 30,044,675 (150,000) - 29,894,675 15,705,707 713,721 (79,884) 16,339,544
Office premises on freehold land 84,248,571 - - 84,248,571 37,172,638 2,353,797 - 39,526,435
Plant and machinery 3,002,466,931 222,428,153 - 3,204,974,995 1,671,136,617 139,246,414 - 1,793,323,710
- (19,920,089) - - - - (17,059,321) -
Equipments and other assets 80,305,235 - - 80,305,235 58,079,929 12,771,908 - 70,851,837

Electric Installation 74,503,775 - - 74,503,775 22,317,141 5,144,859 - 27,462,000

Gas line and pipe 7,180,289 - - 7,180,289 4,710,658 246,963 - 4,957,621
Cooling towers 5,223,570 - - 5,223,570 3,365,483 185,809 - 3,551,292
Ventilation system 1,461,897 - - 1,461,897 928,566 53,333 - 981,899
Boiler 18,244,925 - - 18,244,925 11,596,635 664,829 - 12,261,464
Factory equipment 13,757,029 - - 13,757,029 12,122,075 160,443 - 12,282,518
Furniture and fixtures - Factory 5,318,108 - - 5,318,108 4,284,776 103,333 - 4,388,109
Office equipments 20,245,336 3,063,000 - 23,308,336 16,273,459 492,713 - 16,766,172
Furniture and fixtures - Office 872,972 - - 872,972 713,639 15,933 - 729,572
Vehicles 99,079,694 2,080,160 - 98,799,551 59,265,984 7,988,373 - 65,033,498
- (2,360,303) - - - - (2,220,859) -
June 30, 2017 4,180,052,679 261,114,965 - 4,418,737,252 2,222,405,669 185,752,115 - 2,388,797,720
- (22,430,393) - - - - (19,360,064) -
15.1 Equipment and other assets includes assets amounting to PKR 15,710,241 (2017: PKR 15,710,241) which has been fu

15.2 Transfer of PKR Nil (2017: PKR 4,371,764) in plant and machinery represents elemination of fully depreciated machine
15.3 The depreciation charge for the year has been allocated as follows:
30-06-18 30-06-17
Note Rupees Rupees
Cost of sales 28 214,815,553 177,217,551
Administrative expenses 31 8,636,586 8,534,564
223,452,139 185,752,115
15.4 Freehold lands of the Company are located at Feroze Wattoan Sheikhupura with an area of 785 Kanal 18 Marla, at
Gajumata Kasur 48 Kanal, at Raiwind Kasur 766 Kanal and leasehold lands are located at Kotri with an area of 104 Kana
15.5 DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT
Year Ended June 30, 2018

Accumulated Written down Proceeds from Gain I (loss) on Mode of

Cost depreciation value disposal of disposal of disposal
Description property, plant property, plant Particulars of buyer
and equipment and equipment
Rupees
Land 28,875,486 - 28,875,486 134,925,000 106,049,514 Negotiatio Naseem Export (pvt.) Limited, Suite # 613, 6 floor,
n progressive plaza, Beaumont Road, Karachi
28,875,486 - 28,875,486 134,925,000 106,049,514
Machinery
Autoconer 4,558,775 3,404,202 1,154,573 1,200,000 45,427 Negotiatio Mr. Zain ul Asif, Faisalabad
n
Negotiatio Mr. Abdul Hafeez, House No 538, Street 5, Sarfraz
Simplex 7,550,372 7,000,635 549,737 600,000 50,263
n Colony, Faisalabad
Negotiatio Mr. Abdul Hafeez, House No 538, Street 5, Sarfraz
Drawing 1,232,202 1,138,187 94,015 180,000 85,985
n Colony, Faisalabad
Negotiatio Mr. Abdul Hafeez, House No 538, Street 5, Sarfraz
Drawing 2,464,404 2,276,374 188,030 400,000 211,970
n Colony, Faisalabad
Bale Breaker 1,108,395 808,395 300,000 350,000 50,000 Negotiatio Blessed Textiles Limited, 23/1, Sector 23, Korangi
n Industrial Area Karachi
Negotiatio Mr. Abdul Hafeez, House No 538, Street 5, Sarfraz
Plucker 523,589 485,154 38,435 41,008 2,573
n Colony, Faisalabad
 Book value as
at June 30, Rat
2018 e

13,555,131 5%
44,722,136 5%
1,411,651,285 10%
- -
Three
9,453,398 years

47,041,775 10%
2,222,668 10%
1,672,278 10%
479,998 10%
5,983,461 10%
1,474,511 10%
929,999 10%
6,542,164 10%
143,400 10%
33,766,053 10%
- 10%
2,029,939,532
-
15,710,241) which has been fully depreciated.

n of fully depreciated machinery.

30-06-17
Rupees
177,217,551
8,534,564
185,752,115
area of 785 Kanal 18 Marla, at
Kotri with an area of 104 Kanal.
T

Particulars of buyer

ort (pvt.) Limited, Suite # 613, 6 floor,

plaza, Beaumont Road, Karachi

sif, Faisalabad
feez, House No 538, Street 5, Sarfraz
alabad
feez, House No 538, Street 5, Sarfraz
alabad
feez, House No 538, Street 5, Sarfraz
alabad
iles Limited, 23/1, Sector 23, Korangi
ea Karachi
feez, House No 538, Street 5, Sarfraz
alabad
 Notes to the financial statements
For the year ended June 30, 2018
Year Ended June 30, 2018
Accumulated Written down Proceeds from Gain I (loss) on Mode of
depreciation value disposal of disposal of disposal
Cost
Description property, plant property, plant Particulars of buyer
and equipment and equipment
Rupees

Sketcher 3,937,640 2,871,872 1,065,768 1,300,000 234,232 Negotiation

Comber 1,053,097 958,951 94,146 100,000 5,854 Negotiation

Comber 4,250,000 3,365,645 884,355 1,000,000 115,645 Negotiation

Simplex 1,574,700 1,214,738 359,962 400,000 40,038 Negotiation

Carding 8,750,536 7,938,677 811,859 900,000 88,141 Negotiation

Carding 6,562,902 5,959,081 603,821 675,000 71,179 Negotiation

Carding 4,044,501 3,534,446 510,055 550,000 39,945 Negotiation

47,611,113 40,956,357 6,654,756 7,696,008 1,041,252
Vehicles
Vehicle LED 10 - 7109 1,184,347 914,670 269,677 400,000 130,323 Negotiation

Vehicle LED - 1995 2,062,167 1,536,599 525,568 610,000 84,432 Negotiation

Vehicle LEA - 8698 958,580 876,753 81,827 150,000 68,173 Negotiation

Vehicle VEH - 7648 2,012,010 1,594,456 417,554 475,000 57,446 Negotiation

Vehicle VEH - 9456 1,967,440 1,724,463 242,977 300,000 57,023 Negotiation

Vehicle ANB - 992 633,420 577,422 55,998 100,000 44,002 Negotiation

Vehicle AUX - 681 1,861,880 1,474,127 387,753 450,000 62,247 Negotiation

10,679,844 8,698,490 1,981,354 2,485,000 503,646

30-06-18 87,166,443 49,654,847 37,511,596 145,106,008 107,594,412

Year Ended June 30, 2017

Accumulated Written down Proceeds from Gain I (loss) on Mode of
depreciation value disposal of disposal of disposal
Cost
Description property, plant property, plant Particulars of buyer
and equipment and equipment
Rupees
 Office premises on lease hold land Mr. Arif, Flat no. A-
Sales office shop 8, Clifton, Karachi.
Machinery Mr. Abdul Hafeez, H
Auto Coner Card Sarfraz Colony, Fa
Vehicles Mr. Zain ul Asif, Fa
Vehicle LZX-1069 Tahir (Umer Farm) Mr. Shafqat Ali; Ho
Vehicle LZG-8298 Vehicle VEH - 9456 Colony, Gulberg III
30-Jun-17 Mr. Nadeem Akhte
Road Samanabad,
Mr. Nadeem Akhte
Road Samanabad,

150,000 79,884 70,116 615,000 544,884 Negotiation

150,000 79,884 70,116 615,000 544,884

10,000,000 8,222,474 1,777,526 2,226,890 449,364 Negotiation

9,920,089 8,836,847 1,083,242 1,200,000 116,758 Negotiation
19,920,089 17,059,321 2,860,768 3,426,890 566,122

560,550 514,473 46,077 150,000 103,923 Negotiation

1,194,580 1,120,442 74,138 300,000 225,862 Negotiation

605,173 585,944 19,229 100,000 80,771 Negotiation
2,360,303 2,220,859 139,444 550,000 410,556

22,430,392 19,360,064 3,070,328 4,591,890 1,521,562

Particulars of buyer

M
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.

A
b
d
u
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H
a
f
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e
z
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H
o
u
s
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5
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8
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t

5
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a
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r
a
z

C
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M
l
ro
.n
y
I,
m
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a
a
n
i
s
A
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ia
fb
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H
M
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Particulars of buyer e
A
b
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o
u
.l

4
H
9
a
,f
e
F
e
a
z
Mr. Arif, Flat no. A-20, Mehran Heights, Block
8, Clifton, Karachi.
Mr. Abdul Hafeez, House No 538, Street 5,
Sarfraz Colony, Faisalabad
Mr. Zain ul Asif, Faisalabad
Mr. Shafqat Ali; House No. 1170, Makkah
Colony, Gulberg III, Lahore.
Mr. Nadeem Akhter; House No. 104, Main
Road Samanabad, Lahore.
Mr. Nadeem Akhter; House No. 104, Main
Road Samanabad, Lahore.
 Notes to the financial statements For the year ended June
30, 2018 30-06-18

Note Rupees
16 CAPITAL WORK IN PROGRESS
Building and other civil work 31,296,578
Machinery 158,115
31,454,693

17 LONG TERM DEPOSITS

Electricity 28,107,540
Telephone 33,600
Others 391,676
28,532,816
18 STORES, SPARES AND LOOSE TOOLS

Stores and spares 63,205,697

Packing material 4,808,071
       68,013,768
18.1 No item of stores, spares and loose tools is pledged as security as at reporting date.

19 STOCK IN TRADE

Raw material 19.1 1,860,317,250

Raw material in transit 124,107,142
Work in process 137,316,094
Finished goods 223,726,333
Waste 1,740,764
2,347,207,583
19.1 Raw material stock cost PKR 275,063,931 (2017: PKR NIL) have been valued at PKR 137,531,965 (2017: PKR NIL) be
cost of raw material. The amount charge to profit and loss in respect of raw material written down to net realizable value is Rs
PKR NIL)
19.2 No item of stock in trade is pledged as security as at reporting date.
20 TRADE DEBTS
Foreign - secured against letter of credit 332,611,912
Local - unsecured - considered good 508,881,930
Local - unsecured - considered doubtful 68,336,616
909,830,458
Provision for doubtful debts. 20.1 (68,336,616)
841,493,842

20.1 Particulars of Provision for doubtful receivables

Provision for bad debts at the beginning of year Bad 68,336,616

debts provision provided during the year Bad debts -
recovered during the year -

Provision for bad debts at the end of year        68,336,616

 30-06-18

30-06-17

Rupees

30,324,305
24,588,029
54,912,334

25,780,160
33,600
391,676
26,205,436

63,206,084
6,577,699
       69,783,783

2,184,922,836
-
121,132,743
406,753,538
599,157
2,713,408,274
7,531,965 (2017: PKR NIL) being the replacement
wn to net realizable value is Rs. 137,531,965 (2017:

137,489,832
406,961,467
68,336,616
612,787,915
(68,336,616)
544,451,299

68,713,87
8
-
(377,262)
       68,336,616
 Notes to the financial statements
For the year ended June 30, 2018
20.2 Total export sales to closing trade debts
Rupees Rupees

Region Contract Letter of credit

America 38,079,558 12,320,141
Asia 70,744,204 508,472,248
Europe 717,912,951 572,390,500
Total 826,736,713 1,093,182,889
21 LOANS AND ADVANCES 30-Jun-18
Advances to : Note Rupees

Suppliers - Unsecured (considered good) 23,304,793

22,055,345
Suppliers - Unsecured (considered doubtful) 309,001 309,0
Employees - Secured (considered good) 9,565,23
5,394,834

Employees - Un-secured (considered doubtful)          1,165,          1,165,000 

000  30,173,628 33,094,578
Provision for doubtful advances 21.1 (1,474,001)
28,699,627
21.1 Particulars of Provision for doubtful receivables
Provision for bad debts at the beginning of year 1,474,001
Bad debts provision provided during the year -
Bad debts recovered during the year -
Provision for bad debts at the end of year 1,474,001

22 TRADE DEPOSITS AND SHORT TERM PREPAYMENTS

Trade deposits -
Deposits against infrastructure fees 22.1 81,750,126
Prepaid expenses 1,710,209
       83,460,335

22.1 Effective mark up rate on these deposits range from 4.5% to 6% (June 30, 2017: 4.5% to 6%) per annum.
23 OTHER RECEIVABLES - UNSECURED

KMC refundable - Considered doubtful 680,624

L/C in transit 2,559,866
Other receivables - Considered good 14,887,408
18,127,898
Provision for doubtful receivables (680,624)
17,447,274
24 INCOME TAX REFUNDABLE
Income tax refundable / adjustable 237,079,056
Provision for taxation - Current year (27,378,416)
Provision for taxation - Prior years (3,594,287)
(30,972,703)
206,106,353
25 SALES TAX REFUNDABLE
Sales tax and federal excise duty refundable 130,039,795
Federal excise duty and 1% Special excise duty refundable - Considered doubtful 3,006,390
Provision for non refundable (3,006,390)
 -
130,039,795
 30-Jun-18 30-Jun-17
Rupees Rupees

22,055,345
309,001
9,565,232
         1,165,000 
33,094,578
(1,474,001)
31,620,577

1,474,001
-
-
1,474,001

10,000
67,098,422
334,885
       67,443,307

annum.

680,624
-
2,976,269
3,656,893
(680,624)
2,976,269

192,017,576
(72,619,736)
1,159,756
(71,459,980)
120,557,596

194,061,359
3,006,390
(3,006,390)
 -
194,061,359
 Notes to the financial statements For the year ended N 30-Jun-18
June 30, 2018 o Rupees
26 CASH AND BANK BALANCES t
Balances with banks on: e

Current accounts 65,741,401

Foreign currency account - current 2,524,622
       68,266,023
27 SALES - NET
Export
Yarn 924,426,890
Fabric 1,912,191,474
2,836,618,364
Export Rebate 44,407,434
2,881,025,798
Local
Yarn 4,116,939,372
Fabric 845,370,928
Cotton and polyester 163,545,164
Scrap 1,901,049
Waste and others 65,390,950
5,193,147,463
8,074,173,261
Discount -
Sales tax (327,850)
(327,850)
8,073,845,411
27.1 Export sales includes exchange gain of PKR 104,060,562 (2017: PKR 25,679,861).

28 COST OF SALES
Raw material consumed 28.1 4,656,993,230
Packing material consumed 79,352,982
Stores, spares and loose tools 167,319,915
Salaries, wages and benefits 28.2 709,577,567
Fees and subscription 364,966
Fuel .power and water 988,909,791
Insurance 13,691,904
Vehicle running and maintenance 9,165,858
Rent, rate and taxes 632,673
Repairs and maintenance 10,258,430
Communication 773,416
Traveling and conveyance 2,070,922
Depreciation 15.3 214,815,553
Others 2,869,391
6,856,796,598
Work in process
Opening stock 121,132,743
Closing stock (137,316,094)
(16,183,351)
Cost of goods manufactured 6,840,613,247
30-Jun-18 30-Jun-17
Rupees Rupees

34,860,694
4,925,265
       39,785,959

753,103,986
1,896,273,627
2,649,377,613
2,646,147
2,652,023,760

3,249,087,868
865,019,583
16,141,910
308,307
55,336,875
4,185,894,543
6,837,918,303
(29,876)
(633,535)
(663,411)
6,837,254,892

4,075,421,588
71,755,627
164,545,704
637,815,058
349,480
952,035,780
18,589,409
8,826,019
657,590
6,280,643
692,070
1,947,903
177,217,551
2,608,661
6,118,743,083

94,151,738
(121,132,743)
(26,981,005)
6,091,762,078
 30- 06- 18

Notes to the financial statements

For the year ended June 30, 2018
Note Rupe Rupees
Cost of raw material sold 28.3 es
163,986,242 15,900,49
Finished stocks
Opening stock 407,352,695 302,556,78
Finished goods purchases 18,964,352 80,104,25
Closing stock (225,467,097) (407,352,695
200,849,950 (24,691,655
7,205,449,439 6,082,970,91
28.1 Raw material consumed
Opening stock 2,184,922,836 1,346,055,96
Purchases - net 4,625,219,798 4,935,827,01
6,810,142,634 6,281,882,98
Cost of raw material sold (162,665,051) (21,538,559
Raw material theft (6,059,961) -
Closing stock (1,984,424,392) (2,184,922,836
4,656,993,230 4,075,421,58
28.2 Salaries, wages and benefits includes employees benefits amounting to PKR 48,419,005 (June 30, 2017: PKR 32,89
28.3 Cost of raw material sold

Cost of purchases 157,003,307

Direct expenses 6,982,935
     163,986,242
29 OTHER INCOME
Income from financial assets

Interest income 3,346,048 3,030,13

Exchange gain on foreign currency accounts 364,425 185,2
Bad debts recovered - 377,2
3,710,473
Income from other than financial assets
Gain on disposal of property, plant and equipment 107,594,412
Rental income 681,779
108,276,191
     111,986,664
30 DISTRIBUTION COST
Export
Freight on export sales 54,872,130
Commission on export sales 44,754,978
Export development surcharge 7,037,074
Sales Promotion Expenses 3,475,943
Others 1,951,633
112,091,758
Local
Salaries and wages 778,427
Freight on local sales 15,038,569
Commission on local sales 54,572,621
Quality claim 1,345,741
Others 827,479
       72,562,837         61,797,07
184,654,595 155,460,1
 30-06-17
30- 06- 18

Rupees
15,900,495

302,556,787
80,104,253
(407,352,695)
(24,691,655)
6,082,970,918

1,346,055,965
4,935,827,018
6,281,882,983
(21,538,559)
-
(2,184,922,836)
4,075,421,588
05 (June 30, 2017: PKR 32,895,965).

14,983,075
917,420
       15,900,495

3,030,139
185,218
377,262
3,592,619

1,521,562
668,411
2,189,973
         5,782,592

52,167,041
31,913,527
6,558,644
1,309,826
1,714,009
93,663,047

1,134,336
12,087,774
46,885,431
1,012,020
 677,515
     72,562,837         61,797,076 
184,654,595 155,460,123
 Notes to the financial statements For the year ended N 30-Jun-18
June 30, 2018 o Rupees
t
31 ADMINISTRATIVE EXPENSES
e
Directors' remuneration 37 15,600,000
Staff salaries and benefits 31.1 67,459,624
Traveling, conveyance and entertainment 8,854,108
Printing and stationery 2,579,499
Communication 1,904,586
Vehicles running and maintenance 8,279,312
Legal and professional 1,818,500
Auditors' remuneration 31.2 1,611,000
Fee and subscription 3,936,736
Repair and maintenance 1,427,754
Depreciation 15.3 8,636,586
Rent, rates and utilities 1,372,162
Donation 31.3 500,000
Software license renewal and maintenance fee 482,400
Others 2,427,030
126,889,297
31.1 Salaries, wages and benefits includes employees benefits amounting to PKR 5,317,065 (June 30, 2017: PKR 25,433,2
31.2 Auditors' remuneration
Annual statutory audit 1,390,000
Half yearly review 181,000
Code of Corporate Governance review 40,000
1,611,000
31.3
No director or his spouse had any interest in the donee

32 OTHER OPERATING EXPENSES

Workers' Profit Participation Fund 9.2 29,007,844

Workers' Welfare Fund 9 3,699,784
Provision for doubtful debts 20.1 -
32,707,628
33 FINANCE COST
Mark-up on:
- long-term financing 33,801,367
- short-term borrowings 36,678,536
- workers' profit participation fund 9.2 5,289,478
75,769,381
Bank charges and commission 3,117,486
Letter of credits discounting 15,084,496
93,971,363
34 PROVISION FOR TAXATION
Current
- for the year 34.1 27,378,416
- for prior years 3,594,287
30,972,703
Deferred - current year 8.2 29,150,541
60,123,244
 30-Jun-18 30-Jun-17
Rupees Rupees

13,600,000
65,463,907
9,504,428
2,922,465
2,378,100
8,605,049
2,587,833
1,547,000
3,266,951
971,113
8,534,564
1,351,218
400,000
1,073,306
2,099,899
124,305,833
June 30, 2017: PKR 25,433,258).

1,331,000
176,000
40,000
1,547,000

19,773,556
4,099,052
119,747
23,992,355

26,743,990
42,662,672
2,353,942
71,760,604
2,307,230
12,995,849
87,063,683

72,619,736
(1,159,756)
71,459,980
22,048,062
93,508,042
 Notes to the financial statements For the year ended June 30, 2018
34.1 Provision for current tax has been made in accordance with section 113 and section 169 (2017: section 113 and section
169) of the Income Tax Ordinance, 2001 ('the Ordinance'). As per management, the provision for tax made in the financial statem
comparison of last three years' of income tax provisions with tax assessment is presented
below:

2015 2016 2017

Rupees
Income tax provision as per financial 7,339,515 86,842,509 71,459,980
Income tax as per tax assessment 12,439,183 86,620,727 76,214,023
34.2 Assessments upto assessment year 2002-2003 have been finalized under the relevant provisions of the Repealed Inco
1979 where as asessments upto tax year 2017 have been finalized under relevant provisions of Income Tax Ordinance, 2001

34.3 The Government of Pakistan notified a reduced tax rate of 30% for tax year 2018 as compared to 31% applicable to pre
Companies.
34.4 Numerical reconciliation between the average tax rate and the applicable tax rate

30-Jun-18
%

Applicable tax rate

30.00

Tax effect of amounts that are:

adjustment of the prior years 0.66
income chargeable to tax at different rate (13.24)

deferred tax 5.35

tax credit (11.68)

(18.91)

Effective tax rate                  11.09

30-06-18
Rupees
35 EARNINGS PER SHARE - BASIC AND DILUTED 160.68

There is no dilutive effect on the basic earning per share of the company which is based on;

Earnings
Earnings for the purpose of basic earnings per share 482,036,509
(net profit after tax for the year)
Number of shares
30-Jun-

Weighted average number of ordinary shares for the purpose of basic earnings per share 3,000,000
Basic earnings per share have been computed by dividing earnings as stated above with 160.68
weighted average number of ordinary shares.
Basic earnings per share Rupees

No figure for diluted earnings per share has been presented as the Company has not issued any instruments carrying option
an impact on earnings per share when exercised.
36 NON ADJUSTING EVENTS AFTER BALANCE SHEET DATE
In respect of current period, the board of directors in their meeting held on 27 September, 2018 has proposed to pay cash divide
PKR 64.30 per ordinary share of PKR 10 each. This dividend is subject to approval by the shareholders at the forthcoming annu

Notes to the financial statements For the year ended June 30, 2018
37 REMUNERATION OF CHIEF EXECUTIVE AND DIRECTOR
17: section 113 and section
ax made in the financial statements is sufficient. A

ovisions of the Repealed Income Tax Ordinance,

f Income Tax Ordinance, 2001.

pared to 31% applicable to previous year for

30-Jun-17
%

31.00

(0.30)
(11.05)
0.06
(0.04)
(11.33)
                 19.67
30-06-17
Rupees
91.91

275,736,530

30-Jun-18 30-Jun-17

3,000,000 3,000,00
160.68 0
91.91

y instruments carrying options which would have

s proposed to pay cash dividend of @ 643.00% i.e.

olders at the forthcoming annual general meeting.
 Chief Director Executives Chief Director
Executive Executive
2018 2018 2018 2017 2017
Rupees Rupees Rupees Rupees Rupees
Remuneration 7,800,000 7,800,000 11,175,867 6,800,000 6,800,000
Perquisites - - 2,067,412 - -
Post employment benefits 1,531,625 - -
7,800,000 7,800,000 14,774,904 6,800,000 6,800,000
Number of persons 1 1 6 1 1

37.1 In addition the Chief Executive, directors are provided with free use of Company maintained cars and telephone for bus

37.2 No remuneration to non executive directors has been paid.

38 Segment Analysis
The segment information for the reportable segments for the year ended 30th June 2018 is as follows:
38.1 Operating Results Spinning Weaving Total

Sales 30-Jun-18 30-Jun-17 30-Jun-18 30-Jun-17 30-Jun-18 30-Jun-17

Export sales Local sales Custom
rebate
Inter-segment sales

924,426,890 753,103,986 1,912,191,474 1,896,273,627 2,836,618,364 2,649,377,613

4,334,861,007 3,307,545,779 858,286,456 878,348,764 5,193,147,463 4,185,894,543
11,137,704 379,071 33,269,730 2,267,076 44,407,434 2,646,147
317,085,684 253,719,200 - - 317,085,684 253,719,200
5,587,511,285 4,314,748,036 2,803,747,660 2,776,889,476 8,391,258,945
Discount and sales tax
Regularity Duty - - - - -
Discount - (29,876) - - -
Sales tax (289,062) (618,573) (38,788) (14,962) (327,850)
(289,062) (648,449) (38,788) (14,962) (327,850)
Net sales 5,587,222,223 4,314,099,587 2,803,708,872 2,776,874,505 8,390,931,095
Cost of sales 4,905,957,098 3,785,919,077 2,616,578,025 2,550,771,041 7,522,535,123
Gross profit 681,265,125 528,180,510 187,130,847 226,103,464 868,395,972
Other operating income 5,493,451 660,972 289,141 111,986,664
111,325,692
792,590,817 533,673,961 187,791,819 226,392,605 980,382,636
Distribution cost 108,385,590 91,282,724 76,269,005 64,177,399 184,654,595
Administrative 100,076,018 97,741,464 26,813,279 26,564,369 126,889,297
cost 208,461,608 189,024,188 103,082,284 90,741,768 311,543,892
Operating result 584,129,209 344,649,773 84,709,535 135,650,837 668,838,744
Segment assets 5,008,303,431 4,331,443,803 1,189,150,090 1,155,434,224 6,197,453,521
38.2 Unallocated 448,139,299
assets 6,645,592,820
Segment 1,867,153,488 1,638,041,242 323,429,855 223,684,165 2,190,583,343
liabilities
38.3 Unallocated 193,031,048
liabilities 2,383,614,391
 Executives

2017
Rupees
21,679,644
3,910,217
1,393,277
26,983,138
22
ained cars and telephone for business use.

ollows:
Total

30-Jun-18 30-Jun-17

8,391,258,945 7,091,637,503

-
(29,876)
(633,535)
(663,411)
7,090,974,092
6,336,690,118
754,283,974
5,782,592
760,066,566
155,460,123
124,305,833
279,765,956
480,300,610
5,486,878,027
408,267,698
5,895,145,725
1,861,725,407
147,726,785
2,009,452,192
 Notes to the financial statements For the year en
38.4 I
Transactions among the business segments are recorded at arm's length prices using admissible valuation methods. There were no major
which formed 10 percent or more of th

39 Reconciliation of reportable segment turnover, cost of sales, assets and liabilities Rupees Rupees
39.1 Turnover
Total turnover for reportable segments 8,390,931,095

Elimination of inter-segment turnover (317,085,684)

Total turnover 8,073,845,411
39.2 Cost of sales
Total cost of sales for reportable segments 7,522,535,123

Elimination of inter-segment revenue (317,085,684)

Total cost of sales 7,205,449,439
39.3 Assets
Total assets for reportable segments 6,197,453,521

Taxation recoverable 206,106,353

Sales tax refundable 130,039,795
Trade deposits 83,460,335
Long term deposit 28,532,816
Total assets 6,645,592,820
39.4 Liabilities
Total liabilities for reportable segments 2,190,583,343
Unclaimed dividends 758,605
Infrastructure fee 80,971,084
Deferred taxation 111,301,359
Total liabilities 2,383,614,391
Spinning Weaving
40 Cost of sales Not 30-Jun-18 30-Jun-17 30-Jun-18 30-Jun-17 30-Jun-18 30-Jun-17
e
Raw material consumed 2,945,374,755 2,461,419,292 2,028,704,159 1,867,721,496 4,974,078,914
40.1
Packing material 71,925,338 63,799,427 7,427,644 7,956,200 79,352,982
consumed
Stores and spare parts 116,184,856 105,166,276 51,135,059 59,379,428 167,319,915
Salaries, wages and 538,748,443 488,539,559 170,829,124 149,275,499 709,577,567
benefits
Fees and subscription 339,915 326,480 25,051 23,000 364,966
Fuel, power and water
Inter-segment - - - - -
Others 704,081,880 623,404,284 284,827,911 328,631,496 988,909,791
4,550,848,053 3,873,942,278 2,623,034,229 2,498,520,005 7,173,882,282
Insurance 9,222,291 13,093,207 4,469,613 5,496,202 13,691,904
Vehicle running and maintenance 6,317,555 2,410,142 2,508,464 9,165,858
6,755,716
Rent, rates and taxes 598,173 631,390 34,500 26,200 632,673
Repair and maintenance 7,308,758 4,442,996 2,949,672 1,837,647 10,258,430
Communication 485,946 451,341 287,470 240,729 773,416
Travelling and conveyance
and entertainment 1,498,381 1,490,374 572,541 457,529 2,070,922

Depreciation 146,964,398 103,501,712 67,851,155 73,715,839 214,815,553

Others 1,359,203 1,358,385 1,510,188 1,250,276 2,869,391
4,550,848,053 3,873,942,278 2,623,034,229 2,498,520,005 7,713,882,282
tatements For the year ended June 30, 2018
38.4 Inter-segment pricing
methods. There were no major customer of company
ormed 10 percent or more of the company's revenue.
2018 2017

Rupees Rupees

7,090,974,092

(253,719,200)
6,837,254,892

6,336,690,118

(253,719,200)
6,082,970,918

5,486,878,027

120,557,596
194,061,359
67,443,307
26,205,436
5,895,145,725

1,861,725,407
608,803
66,071,744
81,046,238
2,009,452,192
Weaving Total
30-Jun-18 30-Jun-17
4,329,140,788
71,755,627
164,545,704
637,815,058
349,480

-
952,035,780
6,372,462,283
18,589,409
8,826,019
657,590
6,280,643
692,070

1,947,903

177,217,551
2,608,661
6,345,481,278
 Notes to the financial statements For the year ended June 30, 2018
Spinning Weaving

Total
30-06-18 30-06-17 30-06-18 30-06-17 30-06-18
Work in process

Opening stock 47,115,994 54,151,130 74,016,749 40,000,608 121,132,743

Closing stock (57,241,040) (47,115,994) (80,075,054) (74,016,749) (137,316,094)
(10,125,046) 7,035,136 (6,058,305) (34,016,141) (16,183,351)
Cost of raw material sold 163,986,242 15,900,495 5,661,744 6,555,484 169,647,986
Finished stocks
Opening stock 314,303,035 190,344,782 93,049,660 112,212,005 407,352,695
Finished goods 12,075,400 12,999,421 1,227,208 60,549,348 13,302,608
purchased
Closing stock (125,130,586) (314,303,035) (100,336,511) (93,049,660) (225,467,097)
201,247,849 (110,958,832) (6,059,643) 79,711,693 195,188,206
4,905,957,098 3,785,919,077 2,616,578,025 2,550,771,041 7,522,535,123
40.1 Raw material consumed
Opening stock 2,034,271,730 1,229,793,854 150,651,106 116,262,111 2,184,922,836
Purchases
Inter-segment - - 317,085,684 253,719,200 317,085,684
Others 2,973,018,970 3,280,880,243 1,652,200,828 1,654,946,775 4,625,219,798
2,973,018,970 3,280,880,243 1,969,286,512 1,908,665,975 4,942,305,482
Raw material sold (157,003,307) (14,983,075) - - (157,003,307)
- cotton
Raw material (6,059,961) - - - (6,059,961)
impaired
Raw material sold - (5,661,744) (6,555,484) (5,661,744)
yarn
Closing stock (1,898,852,677)(2,034,271,730) (85,571,715) (150,651,106) (1,984,424,392)
2,945,374,755 2,461,419,292 2,028,704,159 1,867,721,496 4,974,078,914
40.2 Cost of raw material sold
Cost of purchase 157,003,307 14,983,075 5,661,744 6,555,484 162,665,051
Direct expenses 6,982,935 917,420 - - 6,982,935
163,986,242 15,900,495 5,661,744 6,555,484 169,647,986
41 Distribution cost
Export
Ocean freight and
forwarding
Commission
Export development
surcharge
Sales Promotion
Expenses
Others 37,375,52 112,091,7
Local 68,948,67 56,287,52
3 58
Salaries and wages 43,143,082 6 4
53,907,20 72,562,83
Inland transportation 65,242,508 7,320,329 7,889,875
1 7
Commission 108,385,590 76,269,00 64,177,39
91,282,72 184,654,5
Quality claim 5 9
4 95
Others

22,022,189 17,618,818 32,849,941 34,548,223 54,872,130 52,167,041

17,988,781 16,515,612 26,766,197 15,397,915 44,754,978 31,913,527
 2,293,669 1,846,750 4,743,405 4,711,894 7,037,074 6,558,644
838,443 843,088 2,637,500 466,738 3,475,943 1,309,826
- 551,255 1,951,633 1,162,754 1,951,633 1,714,009
778,427 1,134,336 - - 778,427 1,134,336
14,689,969 12,042,274 348,600 45,500 15,038,569 12,087,774
47,455,959 39,051,173 7,116,662 7,834,258 54,572,621 46,885,431
1,490,674 1,012,020 (144,933) - 1,345,741 1,012,020
827,479 667,398 - 10,117 827,479 677,515
 Total
30-06-17

94,151,738
(121,132,743)
(26,981,005)
22,455,979

302,556,787
73,548,769
(407,352,695)
(31,247,139)
6,336,690,118

1,346,055,965

253,719,200
4,935,827,018
5,189,546,218
(14,983,075)

-
(6,555,484)
(2,184,922,836)
4,329,140,788

21,538,559
917,420
22,455,979

112,091,7
58
93,663,047
72,562,83
61,797,076
7
155,460,123
184,654,5
95
 Notes to the financial statements
For the year ended June 30, 2018
Spinning Weaving
30-06-18 30-06-17 30-06-18 30-06-17 30-06-18
42 Administrative cost

Directors' remuneration 15,600,000 13,600,000 - - 15,600,000

Staff salaries and benefits 50,004,772 48,570,421 17,454,852 16,893,486 67,459,624
Traveling, conveyance and 6,141,961 6,893,383 2,712,147 2,611,045 8,854,108
entertainment
Printing and stationery 2,197,366 2,025,765 382,133 896,700 2,579,499
Communication 1,838,779 2,278,484 65,807 99,616 1,904,586
Vehicles running and
6,696,105 7,067,979 1,583,207 1,537,070 8,279,312
maintenance
Legal and professional 1,151,500 2,290,333 667,000 297,500 1,818,500
Auditors' remuneration 1,074,000 1,032,000 537,000 515,000 1,611,000
Fee and subscription 3,520,224 2,681,612 416,512 585,339 3,936,736
Repair and maintenance 1,427,754 964,413 - 6,700 1,427,754
Depreciation 6,982,770 6,971,754 1,653,816 1,562,810 8,636,586
Rent, rates and utilities 1,372,162 1,351,218 - - 1,372,162
Donation 250,000 250,000 250,000 150,000 500,000
Inadmissible input 515,375 194,898 - 26,413 515,375
Software license renewal
and maintenance fee - - 482,400 1,073,306 482,400
Others 1,303,250 1,569,204 608,405 309,384 1,911,655
100,076,018 97,741,464 26,813,279 26,564,369 126,889,297
43 FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
Fair value of financial instruments
Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable willing parties in
transaction. As at June 30, 2018 the net fair value of all financial instruments has been based on the valuation methodology o

Long-term deposits
Long term deposits does not carry any rate of return. The fair value of it has been taken at book value as it is not considered
and readily exchangeable.
Non-current liabilities
For all non-current liabilities the fair values have been taken at book values as these are not considered materially different b
market rates of return and reprising profiles of similar non-current liabilities.
Other financial instruments
The fair values of all other financial instruments are considered to approximate their book values as they are short term in na
 Weaving Total
30-06-17

13,600,000
65,463,907
9,504,428

2,922,465
2,378,100
8,605,049
2,587,833
1,547,000
3,266,951
971,113
8,534,564
1,351,218
400,000
221,311

1,073,306
1,878,588
124,305,833

nowledgeable willing parties in an arms length

on the valuation methodology outlined below:-

k value as it is not considered materially different

onsidered materially different based on the current

es as they are short term in nature.

 Notes to the financial statements For the year ended June 30, 2018
The analysis of yield / mark-up rate risk is as under:

2018
Interest I Markup bearing Non Interest I Markup bearing
Maturity Maturity After Subtotal Maturity Upto Maturity After Subtotal Total
Upto One One year Rupees One year One year Rupees Rupees
year Rupees Rupees Rupees
Rupees
Financial assets
Trade debts - - - 841,493,842 - 841,493,842 841,493,842
Loans and advances - - - 6,559,834 - 6,559,834 6,559,834
Trade deposits 81,750,126 - 81,750,126 - - - 81,750,126
Other receivables - - - 17,447,274 - 17,447,274 17,447,274
Cash and bank - - - 68,266,023 - 68,266,023 68,266,023
balances
Long term deposits - - - - 28,532,816 28,532,816 28,532,816
81,750,126 - 81,750,126 933,766,973 28,532,816 962,299,789 1,044,049,915
Financial liabilities
Long-term financing 81,367,073 885,233,720 966,600,793 - - - 966,600,793
Trade and other 29,007,844 - 29,007,844 742,686,747 - 742,686,747 771,694,591
payablesmarkup /
Accrued - - - 15,177,821 - 15,177,821 15,177,821
interest
Short-term borrowings - 220,457,778 - - 220,457,778
220,457,778 330,832,695 885,233,720 1,216,066,415 757,864,568 - 757,864,568 1,973,930,983
On balance sheet gap (885,233,720) (1,134,316,289) 175,902,405 28,532,816 204,435,221 (929,881,068)
(249,082,569)
Contingencies and commitments

Post dated cheques 341,896,954

Bill discounted 410,782,583
Guarantees (Note 8.3 and Note 14.2) 209,143,962
Letters of credit 490,829,539

2017

Interest I Markup bearing Non Interest I Markup bearing

Maturity Upto Maturity After Subtotal Maturity Upto Maturity After Subtotal Total
One year One year Rupees One year One year Rupees Rupees
Rupees Rupees Rupees Rupees

Financial assets
Trade debts - - - 544,451,299 - 544,451,299 544,451,299
Loans and - - - 10,730,232 - 10,730,232 10,730,232
advances
Trade deposits 67,098,422 - 67,098,422 10,000 - 10,000 67,108,422
Other receivables - - - 2,976,269 - 2,976,269 2,976,269
Bank balances - - - 39,785,959 - 39,785,959 39,785,959
Long-term - - - - 26,205,436 26,205,436 26,205,436
deposits 67,098,422 - 67,098,422 597,953,759 26,205,436 624,159,195 691,257,617
Financial liabilities
Long-term financing 77,463,948 428,761,793 506,225,741 - - - 506,225,741
Trade and other 19,773,556 - 19,773,556 513,046,954 - 513,046,954 532,820,510
payables
Mark-up accrued on - - - 14,259,426 - 14,259,426 14,259,426
loans
Short-term borrowings - 676,558,383 - - - 676,558,383
676,558,383 773,795,887 428,761,793 1,202,557,680 527,306,380 - 527,306,380 1,729,864,060

On balance sheet gap (428,761,793) (1,135,459,258) 70,647,379 26,205,436 96,852,815 (1,038,606,443)

(706,697,465)
Contingencies and commitments

Post dated cheques 306,762,370

Bill discounted 7,824,947

Guarantees 110,858,097
Letters of credit 553,734,194
 Effective Interest
Rate
%

4.5 to 6

2.40 and KIBOR +

0.40 to 0.65

KIBOR + 0.05 to 2

Effective
Interest Rate
%

4.5 to 6

8.85 to 15.3 and

KIBOR + 0.65

676,558,383
KIBOR + 0.1 to 2
Notes to the financial statements For the year ended June 30, 2018
43.1 Interest rate risk management
Interest rate risk arises from the possibility that changes in interest rates will affect the value of financial instruments.
Changes in interest rates can affect the rates charged on interest bearing liabilities. This can result in an increase in interest expense relative
borrowings or vice versa. The Company manages its risk by interest rate swapping, maintaining a fair balance between interest rates and fina
financial liabilities. The effective interest rates for the monetary financial assets and liabilities are mentioned in respective notes to the financia

43.2 Credit risk and concentration of credit risk

Credit risk represents the accounting loss that would be recognized at the reporting date if counter parties fail to perform
as contracted. Out of the total financial assets of PKR 1,044,049,915 (June 30, 2017: PKR 691,380,331), unsecured local tra
to suppliers, and other receivables amounting in aggregate to PKR 865,500,950 (June 30, 2017: PKR 558,280,514) are subje
Company manages its credit risk by; limiting significant exposure to any individual customers and obtaining advance against

43.3 Liquidity risk

Liquidity risk reflects the Company's inability in raising funds to meet commitments. The management closely monitors
the Company's liquidity and cash flow position. This includes maintenance of balance sheet liquidity ratios, debtors and credi
both in terms of the overall funding mix and avoidance of undue reliance on large individual customer.

43.4 Foreign exchange risk management

Foreign currency risk arises mainly where receivables and payables exist due to transactions in foreign currencies. As
at June 30, 2017, the total foreign currency risk exposure was PKR 335,136,534 (June 30, 2017: PKR 142,415,097) in respe
debts.
43.5 Fair value of financial instruments
"Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing
parties in an arms' length transaction.

The carrying values of all financial assets and liabilities reflected in the financial statements approximate their fair v
43.6 Credit risk
43.6.1 Maximum credit exposure
The carrying amount of financial assets, excluding cash in hand, represents maximum credit exposure. The maximum
exposure to credit risk as at the reporting date is:

June 30,2018
Rupees

Long term deposits 28,532,816

Trade debts 841,493,842
Loan and advances 4,229,834
Refundable trade deposits 81,750,126
Other receivables 17,447,274
Cash at banks 68,266,023
43.6.2 Concentration of credit risk
1,041,719,915

Maximum exposure to credit risk by geographical region as at the reporting date is:
Domestic 577,218,546
Europe 155,553,378
United States of America 19,010,972
Asia and Middle East 158,047,562
909,830,458
Impairment (68,336,616)
841,493,842
ts.
in interest expense relative to financial
ween interest rates and financial assets and
pective notes to the financial statements.

r parties fail to perform

80,331), unsecured local trade debts, advances
PKR 558,280,514) are subject to credit risk. The
obtaining advance against sales.

ment closely monitors

ity ratios, debtors and creditors concentration
mer.

oreign currencies. As
PKR 142,415,097) in respect of foreign trade

owledgeable willing

ents approximate their fair values."

osure. The maximum

June 30,2017
Rupees

26,205,436
544,451,299
8,400,232
67,108,422
2,976,269
39,785,959
1,041,719,915

688,927,617

475,298,083
86,068,116
-
51,421,716
612,787,915
(68,336,616)
544,451,299
Notes to the financial statements For the year ended June 30, 2018
43.6.3 Aging and movement in Impairment losses
June 30,2018 June 30,2
Rupees Rupees

The aging of receivables as at the reporting date is as follows:

Not past due 661,265,657
Past due less than one year 180,107,584
Past due more than one year but less than three years 120,601
Past due more than three years 68,336,616
909,830,458
Impairment (68,336,616)
841,493,842
The movement in allowance for impairment in respect of loans and receivables during the year is as follows:
As at beginning of the year 68,336,616
Impairment loss recognized -

Impairment loss reversed -

As at end of the year 68,336,616
Credit quality of counter parties is assessed based on historical default rates. All loans and receivables not past du
good. The management believes that allowance for impairment of loans and receivables past due is not necessary
amounts due from old customers, which have been re-negotiated from time to time and are also considered good.

43.6.4 Collateral held

The Company does not hold collateral to secure its loans and receivables. However, foreign trade receivables of the Compan
through letters of credits and exposure to credit risk in respect of these is minimal.
43.7 Liquidity risk
Following are the contractual maturities of financial liabilities, including estimated interest payments.
As at June 30, 2018
Carrying Contractual One year One More than
amount cash flows or less fiveto
years five years
Rupees Rupees Rupees Rupees Rupees
Long term financing 966,600,793 1,127,401,466 116,612,889 406,459,154 720,942,312
Short term borrowings 220,457,778 220,740,079 220,740,079 - -
Accrued markup / 15,177,821 15,177,821 15,177,821 - -
interest
Trade creditors 224,378,515 224,378,515 224,378,515 - -
Accrued liabilities 170,251,169 170,251,169 170,251,169 - -
Unclaimed dividend 758,605 758,605 758,605 - -
Other payables 33,973,378 33,973,378 33,973,378 - -
1,631,598,059 1,792,681,033 781,892,456 406,459,154 720,942,312
June 30,2018 June 30,2017
Rupees Rupees

327,378,020
217,073,279
-
68,336,616
612,787,915
(68,336,616)
544,451,299
the year is as follows:
68,713,878
-

(377,262)
68,336,616
and receivables not past due are considered
s past due is not necessary, as these comprise
are also considered good.

e receivables of the Company are secured

nts.

More than
five years
Rupees
720,942,312
-
-
-
-
-
-
720,942,312
Notes to the financial statements
For the year ended June 30, 2018
As at June 30, 2017
Carrying Contractual One year One to More than
amount cash flows or less five years five years
Rupees Rupees Rupees Rupees Rupees
Long term financing 506,225,741 594,264,069 104,993,521 492,109,874 102,154,195
Short term borrowings 676,558,383 747,597,013 747,597,013 - -
Accrued markup / 14,259,426 14,259,426 14,259,426 - -
interest
Trade creditors 169,267,489 169,267,489 169,267,489 - -
Accrued liabilities 91,334,877 91,334,877 91,334,877 - -
Unclaimed dividend 608,803 608,803 608,803 - -
Other payables 23,019,996 23,019,996 23,019,996 - -
1,481,274,715 1,640,351,673 1,151,081,125 492,109,874 102,154,195
43.8 Market risk
43.8.1 Currency risk June 30,2018 June 30,2017
Rupees Rupees

The Company's exposure to currency risk as at the reporting date is as follows:

Trade receivables 332,611,912
Cash and cash equivalents 2,524,622
Total exposure 335,136,534
All foreign currency balances are denominated in USD. Average exchange rate used during the year and spot exch
the reporting date was PKR 121.40 / USD (2017: PKR 104.80 / USD ).
A ten percent appreciation in Rupee would have decreased profit or loss by PKR 33,513,653 (2017: PKR 14,241,5
depreciation would have had the equal but opposite effect on profit or loss. This sensitivity analysis based on assum
variables, with the exception of foreign exchange rates, remain unchanged.
43.8.2 Interest rate risk
The interest rate profile the Company's interest bearing financial instruments as at the reporting date is as fo
June 30,2018 June 30
Fixed rate instruments Rupe
Financial assets -
Financial liabilities 637,064,000 119,770,
Variable rate instruments
Financial assets 81,750,126 67,098,
Financial liabilities 529,449,571 1,063,014,
The Company is not exposed to interest rate risk in respect of its fixed rate instruments. A 100 basis points increas
rates would have decreased profit or loss by PKR 4,476,994 (2017: PKR 10,423,931). A 100 basis points increase
rate would have had an equal but opposite impact on profit or loss.
43.9 Fair values
Fair value is the amount for which an asset could be exchanged or a liability be settled between knowledgeable willing partie
transaction. As at the reporting date, the fair values of all financial instruments are considered to approximate their book valu

Notes to the financial statements For the year ended June 30, 2018
44 TRANSACTIONS WITH RELATED PARTIES
The associated undertaking and related parties comprise associated companies, directors and key management personnel. Nam
relationship and transaction with associated undertakings and related parties, other than remuneration and
benefits to key management personnel under the term of their employment as disclosed in note 9.1 and 36 are as follow:
 More than
five years
Rupees
102,154,195
-
-
-
-
-
-
102,154,195

018 June 30,2017

Rupees

137,489,832
4,925,265
142,415,097
ring the year and spot exchange rate applied at

,653 (2017: PKR 14,241,510). A ten percent

ty analysis based on assumption that all

the reporting date is as follows:

June 30,2018 June 30,2017
Rupees Rupees
-
119,770,000

67,098,422
1,063,014,124
A 100 basis points increase in variable interest
100 basis points increase in variable interest

nowledgeable willing parties, in an arm's length

pproximate their book values.

anagement personnel. Names, basis of

n and
nd 36 are as follow:
Name of the Company Basis of relationship
Faisal Spinning Mills Limited Common directorship
Blessed Textiles Limited Common directorship
Bhanero Energy Limited Common directorship
Admiral (Private) Limited Directorship of close family relative
Umer Farms (Private) Limited Common directorship

Nature of relationship Nature of transactions

Associated undertaking Sales of fabric
Sales of Cotton
Sales of yarn
Purchase of yarn
Purchase of cotton
Purchase of fabrics
Services rendered
Services received
Electricity purchased
Purchase of machinery
Retirement benefits Provision for gratuity
Key management Remuneration
Associated undertaking Balance with related party
45 Accounting Estimates and Judgments
45.1 Income taxes
In making the estimates for income taxes currently payable by the Company, the management looks at the current
income tax law and the decisions of appellate authorities on certain issues in the past.

45.2 Investment stated at fair value

Management has determined fair value of certain investments by using quotations from active market conditions and
information about the financial instruments. These estimates are subjective in nature and involve some uncertainties and ma
valuation, interest rate, etc.) and therefore, cannot be determined with precision.
45.3 Property, plant and equipment
The Company reviews the rate of depreciation, useful life, residual value and value of assets for possible impairment
on an annual basis. Any change in the estimates in future years might affect the carrying amounts of the respective items of p
equipment with a corresponding affect on the depreciation charge and impairment.
45.4 Stock-in-trade and stores and spares
The Company reviews the net realizable value of stock-in-trade and stores and spares to assess any diminution in the
respective carrying values. Any change in the estimates in future years might affect the carrying amounts of stock-in- trade a
with a corresponding affect on the amortization charge and impairment. Net realizable value is determined with respect to es
less estimated expenditures to make the sales.
45.5 Interest rate and cross currency swap
"The Company has entered into various interest rates and cross currency swap over the last year. The calculation
involves use of estimates with regard to interest and foreign currency rates which fluctuate with the market forces."

46 Reconciliation of movements of liabilities to cash flows arising from Financing activities.

 Percentage of shareholding
N/A
N/A
N/A
N/A
N/A
30-06-18 30-06-17
Rupees Rupees
17,415,271 6,169,364
142,455,718 16,141,910
577,600,615 473,443,568
195,348,387 121,503,794
- 45,158
1,227,205 60,522,102
681,779
668,411
309,000
324,000
743,252,518 900,055,652
- 73,593,000
47,833,259 58,329,323
15,600,000 13,600,000
20,000 20,000

e Company, the management looks at the current

ain issues in the past.

using quotations from active market conditions and

subjective in nature and involve some uncertainties and matters of judgment (e.g.
d with precision.

al value and value of assets for possible impairment

might affect the carrying amounts of the respective items of property, plant and
e and impairment.

and stores and spares to assess any diminution in the

years might affect the carrying amounts of stock-in- trade and stores and spares
rment. Net realizable value is determined with respect to estimated selling price

currency swap over the last year. The calculation

ency rates which fluctuate with the market forces."

ng from Financing activities.

 Lia
Notes to the financial statements For the year bili 2018
ended June 30, 2018 tie
s
Longterm
financing
Short term
borrowings
Unclaimed
dividend
Total

Rupees
Balance as at July 01, 2017 506,225,741 676,558,383 608,803 1,183,392,
Receipts from long term finances 537,839,000 - - 537,839,
Repayment of long term finances (77,463,948) - - (77,463,9
Short term borrowing repaid net of receipts - (456,100,605) - (456,100,6
Exchange loss on repayment of loans - - - -
Dividend paid - - (110,250,240) (110,250,2
Total changes from financing cash flows 460,375,052 (456,100,605) (110,250,240) (105,975,7
Non cash changes - - 110,400,042 110,400,
Balance as at June 30, 2018 966,600,793 220,457,778 758,605 1,187,817,17

47 PLANT CAPACITY AND ACTUAL PRODUCTION 30-06-18 30-0

Spinning & Weaving

Number of spindles installed 80,112
Number of looms installed 160
Number of spindles worked 80,112
Number of looms worked 160
Number of working days 364
Number of shifts per day 3
Installed capacity of yarn (Kgs.) 14,810,385 13,954,1
Actual production of yarn (Kgs.) 11,392,698 10,621,4
Installed capacity of fabric - meters 21,534,566 21,534,5
Actual production of fabric - meters 15,952,617 15,100,4
It is difficult to precisely describe production capacity and the resultant production converted into base count in the textile
industry since it fluctuates widely depending on various factors such as count of yarn spun, raw materials used, spindles spe
would also vary accordingly to pattern of production adopted in a particular year.
30-06-18
48 NUMBER OF EMPLOYEES

As at the reporting date

Head office 65
Mills 1,317
1,382
A
v 64
e
r Mills 1,315
a
1,379
g
e

f
o
r

t
h
 1,183,392,927
537,839,000
(77,463,948)
(456,100,605)
-
(110,250,240)
(105,975,793)
110,400,042
1,187,817,176

30-06-17

69,312

160
69,312

160
364
3
13,954,119
10,621,496
21,534,566
15,100,469
ase count in the textile
aterials used, spindles speed and twist etc. It

30-06-17

65
1,326
1,391

66

1,314
1,380
Notes to the financial statements
For the year ended June 30, 2018
49 DATE OF AUTHORIZATION FOR ISSUE
These financial statements have been approved by the Board of Directors of the Company and authorized for issue on 27th Sep

50 CORRESPONDING FIGURES
50.1 Corresponding figures have been re-arranged where necessary to comply with requirements of Companies Act 2017 an
comparison. However, no significant reclassification has been made, except for the following:
GIDC / Rate difference payable to SNGP amounting to Rs 66,637,118 (June 30, 2017: 44,446,830) has been class
liabilities to non current liabilities owing to stay granted by court.
Unclaimed dividend’ amounting to Rs. 758,605 (June 30, 2017: Rs. 608,803) previously presented under ‘Trade an
separately presented on the face of the statement of financial position as per requirement of fourth schedule.

51 GENERAL
The figures have been rounded off to the nearest Rupee.
Khurrum Salim
Chief Executive
Karachi:
Date: 27th September 2018
oard of Directors of the Company and authorized for issue on 27th September 2018.

here necessary to comply with requirements of Companies Act 2017 and to facilitate
as been made, except for the following:
mounting to Rs 66,637,118 (June 30, 2017: 44,446,830) has been classified from current
ay granted by court.
605 (June 30, 2017: Rs. 608,803) previously presented under ‘Trade and other payables’ now
ement of financial position as per requirement of fourth schedule.

Mohammad Salim
Director
Asim Mirza
Chief Financial Officer
 CATEGORIES OF SHAREHOLDERS
AS AT JUNE 30, 2018
SR # CATEGORIES OF SHAREHOLDERS NUMBERS OF SHARES HELD PERCENTAGE
SHAREHOLDERS %
1 Directors Chief Executive Officer and their 17 1,407,636
Spouses and Minor Children's

2 Associated Companies, Undertaking and Related Parties 12 1,439,864

3 NIT & ICP - -

4 Insurance Company 1 70,500

5 General Public / Individuals 352 75,244

6 Other Companies 3 6,756

385 3,000,000
PERCENTAGE
%
46.92

48.00

2.35

2.50

0.23

100.00
Sr # Shareholder Category Percentage No. of Shares
1 ASSOCIATED COMPANIES UNDERTAKINGS AND RELATED PARTIES
ADMIRAL (PVT) LTD 16.69
MR. MOHAMMAD SHAKEEL 0.74
MR. FARRUKH SALEEM 2.02
MR. YOUSUF SALEEM 1.69
MR. SAQIB SALEEM 1.68
MR. MUHAMMAD QASIM 5.28
MR. FAISAL SHAKEEL 8.32
MR. ABDULLAH BILAL 1.96
MRS. NAZLI BEGUM 1.68
MRS. SABA YOUSUF 2.76
MRS. SABA SAQIB 2.76
MRS. SADAF FARRUKH 2.42
2 CEO, DIRECTORS AND THEIR SPOUSES AND MINOR CHILDREN
MR. MUHAMMAD SALEEM 0.73

MR. MUHAMMAD SHARIF 0.02

MR. MUHAMMAD SHAHEEN 1.43
MR. HAMZA SHAKEEL 0.02
MR. KHURRAM SALEEM 2.02
MR. BILAL SHARIF 2.48
MR. MUHAMMAD AMIN 5.32
MR. ADIL SHAKEEL 8.93
MR. IQBAL MEHBOOB VOHRA 0.02
MRS. YASMIN BEGUM 1.01
MRS. SEEMA BEGUM 1.78
MRS. AMNA KHURRAM 2.45
MRS. SAMIA BILAL 11.14
MRS. FATIMA AMIN 5.68
MASTER AZAAN BILAL 1.96
MASTER ALI BILAL 1.96
3 BANKS, DEVELOPMENT FINANCIAL INSTITUTIONS, NON BANKING
FINANCE INSTITUTIONS AND INSURANCE COMPANIES
STATE LIFE INSURANCE CORPORATION OF PAKISTAN 2.35
4 INDIVIDUAL SHAREHOLDERS 2.51

5 OTHER COMPANIES 0.23

TOTAL 100.00
No. of Shares

500,600
22,055
60,600
50,674
50,490
158,400
249,676
58,787
50,482
82,700
82,900
72,500

21,929

500
42,780
500
60,500
74,500
159,500
267,825
500
30,372
53,292
73,400
334,283
170,400
58,678
58,677

70,500
75,244

6,756

3,000,000
Sr # Shareholder Category Percentage No. of Shares
6 DETAIL OF TRADING IN THE SHARES BY THE DIRECTORS, CEO
COMPANY SECRETARY AND THEIR SPOUSES AND MINOR CHILDREN NIL

7 SHAREHOLDERS HOLDING 05% OR MORE

MR. MUHAMMAD QASIM 5.28

MR. FAISAL SHAKEEL 8.32
MR. MUHAMMAD AMIN 5.32
MR. ADIL SHAKEEL 8.93
MRS. SAMIA BILAL 11.14
MRS. FATIMA AMIN 5.68
ADMIRAL (PVT) LTD 16.69
No. of Shares

NIL

158,400
249,676
159,500
267,825
334,283
170,400
500,600
 PATTERN OF SHAREHOLDING
AS AT JUNE 30, 2018
NUMBER OF SHARE HOLDING TOTAL
SHAREHOLDERS FROM TO SHARES HELD
307 1 100 8,771
35 101 500 10,446
6 501 1000 5,600
8 1001 5000 22,482
2 5001 10000 16,501
3 20001 25000 64,184
1 25001 30000 29,872
1 40001 45000 42,780
4 50001 55000 204,938
3 55001 60000 176,142
2 60001 65000 121,100
4 70001 75000 290,900
2 80001 85000 165,600
2 155001 160000 317,900
1 170001 175000 170,400
1 245001 250000 249,676
1 265001 270000 267,825
1 330001 335000 334,283
1 500001 505000 500,600
385 3,000,000
* Note: There is no shareholding in the slab not mantioned
ntioned
 Year wise Operating Data
Year Ended 30th June 2018

2018 2017 2016 2015 2014 2013

Spinning Unit Year wise Financial Data 2018
Spindle installed Spindle worked Year Ended 30th June
Installed capacity after conversion into 20/s count - Kg Rupees in Thousands
Actual production - Kg
Weaving Unit
Air jet looms installed Air jet looms worked
Installed capacity after conversion into 50 picks - Meter
Actual production - Meter
Profit and loass account
Turnover (Net) Gross profit Operating profit Financial expenses Profit
before tax Profit after tax Cash dividend
Balance Sheet Share Capital Reserves Shareholder equity Long
term liabilities Short term loan Current liabilities
Current portion of long term loans Fixed assets
Current assets
Ratios Performance
Sales growth percentage - Year to Year basis
Gross profit (%) Profit before tax (%) Profit after tax (%)
Breakup value per share - Rupees per share
Market value of share - at the year end - Rupees per share
Earnings per share - Rupees per share Price earning ratio
Leverage
Gearing ratio Debt to equity (%)
Interest covering ratio Liquidity ratio Current ratio
ANNUAL REPORT 2018

80,112 69,312 69,312 69,312 69,312 69,312

80,112 69,312 69,312 69,312 69,312 69,312
14,810,385 13,954,119 13,954,119 13,954,119 13,954,119 13,954,119
11,392,698 10,621,496 10,008,485 9,832,682 10,138,381 10,115,200

160 160 160 160 140 140

160 160 160 160 140 140
21,534,566 21,534,566 21,534,566 21,534,566 20,206,406 20,206,406

15,952,617 15,100,469 15,992,288 19,272,241 18,362,454 17,658,972

2018 2017 2016 2015 2014 2013

8,073,845 6,837,254 6,637,411 7,350,098 8,060,772 6,997,417
868,396 754,284 684,364 641,534 966,937 1,093,275
636,131 456,308 391,023 351,971 597,040 745,602
93,971 87,063 69,828 115,128 126,836 124,896
542,160 369,245 321,195 236,843 470,204 620,706
482,037 275,737 220,349 207,410 408,263 586,996
192,900 110,400 30,000 30,000 60,000 60,000
30,000 30,000 30,000 30,000 30,000 30,000
3,700,000 3,700,000 3,300,000 3,150,000 3,150,000 2,800,000
4,262,737 3,886,302 3,639,552 3,427,026 3,288,488 2,947,357
885,234 428,762 348,588 583,099 620,241 -
220,458 676,558 - - 802,212 828,550
1,089,456 1,256,655 493,105 497,897 1,250,451 1,303,307
81,367 77,464 77,464 67,141 - 1,699
2,794,871 2,029,940 1,957,647 2,080,122 1,540,975 1,531,890
3,790,735 3,784,088 2,720,643 2,597,798 3,039,511 2,822,476
18.09% 3.01% -9.70% -8.82% 15.20% 9.80%
10.76% 11.03% 10.31% 8.73% 12.00% 15.62%
6.72% 5.40% 4.84% 3.22% 5.83% 8.87%
5.97% 4.03% 3.32% 2.82% 5.06% 8.39%
1,421 1,295 1,213 1,142 1,096 982

807 900 680 474 526 330

91.91 91.91 73.45 69.14 136.09 195.67
8.79 9.79 9.26 6.86 3.86 1.69
0.28 0.30 0.12 0.19 0.43 0.28
20.77% 11.03% 9.58% 17.01% 18.86% 0.00%
6.77 5.24 5.60 3.06 4.71 5.97
3.48 3.01 5.52 5.22 2.43 2.17

59

JamaPunji
Secur"ñies and Exchange Commission of Pakistan’s Landmark Inié
Investor Education
e Operating Data
r Ended 30th June 2018

nancial Data 2018

une
ands
of Pakistan’s Landmark Iniéaéve for
ANNUAL REPORT 2018
2018
61
- - - - 4 4

- - - - 4 4

- - - - 4 4

- - - - 4 4

- - 6 6 4 4

2 2 - - 4 4

- - - - 4 4

2 2 6 6 4 4

2 2 6 6 4 4

ANNUAL REPORT 2018

ANNUAL REPORT 2018

63
ANNUAL REPORT 2018
62
64
 2018
2017 2018

6,837,254,892 8,073,845,411

6,082,970,918 7,205,449,439

754,283,974 868,395,972

369,244,572 542,159,753

72,619,736 27,378,416
(1,159,756) 3,594,287
22,048,062 29,150,541
93,508,042 60,123,244

275,736,530 482,036,509
91.91 160.68
2018
 PROXY FORM
I/We                                                                                                                                                      
                                                                                                                                                              
of BHANERO TEXTILE MILLS LIMITED and holder of                                               
ordinary shares as per Share Register Folio No.                                              and/or CDC Part
ID No.                                                 and Sub Account No.                                            hereby ap
Mr./Mrs./Miss                                                                                       of                                       or

him/her                                                           
                 
proxy to act on my/our behalf at the 39th Annual General Meeting of the Company to be held
October 2018 at 15:30 at Umer House, 23/1, Sector 23, S.M. Farooq
Road, Korangi Industrial Area, Karachi. and/or at any adjournment thereof.

Affix Rs. 5/-

Revenue
Stamp

WITNESS
Signature Name Address

CNIC/Passport # (Signature should agre

specimen signature reg
Company)
Signed this                       day of                    2018
Notes:
If a member is unable to attend the meeting, they may complete and sign this form and sent it to the C
Bhanero Textile Mills Limited, Umer House, 23/1, Sector 23, S.M. Farooq Road, Korangi Industrial
reach not less than 48 hours before the time scheduled for holding the meeting.

(i) The Proxy form shall be witnessed by a person whose name, address and CNIC/Pass
stated on the form.
(ii) Attested copy of CNIC or the Passport of the beneficial owner alongwith the Proxy form
submitted.
(iii) The Proxy nominee shall produce his / her original CNIC or original Passport at the tim
(iv) In case of a Corporate entity, the Board of Directors Resolution/Power of Attorney with
should be submitted (unless it has been provided earlier) along with Proxy form to the Comp

2018
REGISTERED OFFICEUmer House, 23/1, Sector 23, S.M. Farooq Road, Ko
OXY FORM
                                                                                                                         of
                                                                                                                     being a member
LS LIMITED and holder of                                               
Register Folio No.                                              and/or CDC Participant
         and Sub Account No.                                            hereby appoint
                                                            of                                       or failing

of                                                   as my / our
at the 39th Annual General Meeting of the Company to be held on Thursday 25th
Umer House, 23/1, Sector 23, S.M. Farooq
a, Karachi. and/or at any adjournment thereof.

(Signature should agree with the

specimen signature registered with the
Company)
     2018

eting, they may complete and sign this form and sent it to the Company Secretary,
House, 23/1, Sector 23, S.M. Farooq Road, Korangi Industrial Area, Karachi. so as to
time scheduled for holding the meeting.

e witnessed by a person whose name, address and CNIC/Passport number should be

or the Passport of the beneficial owner alongwith the Proxy form should also be

all produce his / her original CNIC or original Passport at the time of the meeting.
entity, the Board of Directors Resolution/Power of Attorney with specimen signature
t has been provided earlier) along with Proxy form to the Company.

2018

2018 25
OFFICEUmer House, 23/1, Sector 23, S.M. Farooq Road, Korangi Industrial Area, Karachi-74900, Pakistan Phones : 021 - 35115177 - 80Fax No. : 021