EXECUTIVE SUMMARY Shadab Textile mills limited , a public limited organization was incorporated on august 19, 1979 under

the companies ordinance of 1984, the organization is listed on Karachi and Lahore Stock Exchanges of Pakistan and engaged in producing high quality combed and carded yarn. The company obtained certificate of incorporation in august 19, 1979 and certificate of commencement of business on November 18, 1979. The company is principally engaged in the business of manufacturing, selling, buying and dealing in yarn of all types. The company has set up a spinning plant at Shahkot, District Nankana Sahib in the province of Punjab and went into production in February, 1982. the machinery is of excellent and renowned quality. Being project installed under OATE Scheme the company has exported a large quantity of its production to meet the requirement of repayments of machinery loan and has earned a good reputation in the industrial markets for its quality product. The management is expanding capacity of the unit by installing additional spindles with necessary back process machinery and BMR the existing facilities to make the project more viable and to compete with the other spinning units equipped with the latest machinery. BRIEF HISTORY OF TEXTILE INDUSTRY IN PAKISTAN

VISION STATEMENT The companys vision is To Strive for excellence through commitments, integrity, honesty and team work. MISSION STATEMENT To be a model amongst the textile spinning, capable of producing high quality blended and hundred percent cotton yarn both for knitting and weaving. Complete satisfaction of Buyers/Consumers is our Motto. Manufacturing of blended and hundred percent cotton yarn as per the customers' requirements and market demand. Keeping pace with the rapidly changing technology by continuously balancing, modernization and replacement (BMR) of plant and machinery. Enhancing the profitability by improved efficiency and cost controls. Betterment of Mills Employees as quality policy. Protecting the environment and contributing towards the economic strength of the country and function as a good corporate citizen.

COMPANY SNAPSHOT Name of Company: Nature of Business: Products: Shadab Textile Mills Limited (The Company)

Manufacturing and sale of all types of yarn Textile Spinning

Share Capital Structure: The Authorized share capital of the company is Rs.60,000,000/- comprising 6,000,000 ordinary shared of Rs.10/- each The issued and paid up capital is Rs.30,000,000/Comprising 3,000,000 ordinary shared of Rs.10/each. Registered Office: The Registered office of the company is situated at A-601/A, City Towers, 6-K, Main Boulevard Gulberg II, Lahore . Nasmabad, Shahkot, District Nankana Sahib.

Mills Location:

Board of Directors: Mian Aamir Naseem Mian Farrukh Naseem Mian Shahzad Aslam Mst. Nusrat Shamim Mr. Ahmed Ali Tariq Mr. Mazhar Hussain Mr. Tariq Javaid Audit Committee: Mian Farrukh Naseem Mian Shahzad Aslam Mr. Ahmed Ali Tariq Chief Financial Officer: Company Secretary: Mr. Mazhar Hussain Mr. Mazhar Hussain

Auditors: Fazal Mahmood & Company, Chartered Accountants

SHAREHOLDING STRUCTURE Based on the Register of Members of Shadab Textile Mills Limited as at June 30, 2012, the direct interests of the shareholders in the issued and paid up share capital of the company are as follows: CATEGORIES OF SHAREHOLDERS Associated Companies Husein Sugar Mills Limited NIT & ICP Investment Corporation of Pakistan National Bank of Pkistan Trustee Deptt. (CDC) National Investment Trust Limited (CDC) DIRECTORS, CEO THEIR SPOUSE Mian Shahzad Aslam Mian Shahzad Aslam (CDC) Mst. Nusrat Shamim Mian Farrukh Naseem Mian Aamir Naseem Mr. Mazhar Hussain Mr. Tariq Javaid Mr. Ahmed Ali Tariq Mrs. Fatima Aamir W/o Mian Aamir Naseem (CDC) Mrs. Fatima Aamir W/o Mian Aamir Naseem Mrs. Hina Farrukh W/o Mian Farrukh Naseem Mrs. Hina Farrukh W/o Mian Farrukh Naseem (CDC) JOINT STOCK COMPANIES Y.S. Securities & Services (Pvt) Ltd. (CDC) Sargodha Textile Mills Limited FINANCIAL INSTITUTION National Bank of Pakistan. (CDC) OTHERS Punjab Cooperative Board (CDC) SHARES HELD BY THE GENERAL PUBLIC TOTAL Share Holding 375,000 600 94,207 2,426 193,200 41,420 267,056 203,636 272,486 600 520 104,246 147,900 82,650 30,150 48,000 200 75,000 8,968 29 1,051,706 3,000,000

SHAREHOLDERS HOLDING 10% OR MORE OF TOTAL CAPITAL Husein Sugar Mills Limited 375,000

COMPETITVE STRATEGY Keeping in mind the current situation, the board of directors has developed a competitive strategy. The objective of the strategy is to counter any competitor threats that the company will encounter in the process of growth. This will be achieved by maintaining overheads at a lower level thus enabling the company to develop a low pricing strategy, yet delivering high quality products an capturing market share and countering competitive threats. The companys low overheads would be achieved through the employment of only fully qualified and capable personnel to perform the required task. Having an experience of more than 28 years, the company has the ability to deliver cost effective and high quality products and better understand the market trends of customers, suppliers and competitors. The board of directors has decided to encourage formulation of strategic alliances with its customers through agents. This would allow informal partnerships to be formed and establish relationships that would provide the company with a defined demand for its products. Furthermore, the management believes that such alliances will also provide branding opportunities in the future. GROWTH STRATEGY In this respect the board of directors has developed an effective growth strategy. The directors believe that quality in products and the production process would be one of the price drivers behind the companys growth. The company has a history and experience of over 28 years. This technical know how would be used to ensure that the simplicity of the production process does not compromise product quality and develop cost effective processes. Furthermore the technical the technical know how also enables the company to be technically sound in production process which can be used by the company to consistently search for alternative raw material at lower prices. With further expansion in the production capacity, acquisition of new state of the art machinery, acquiring sophisticated process technology and disposal of old machinery the company aims to capture and increase its market share and target sales revenue and to achieve maximum growth in a competitive quality environment. OPERATIONAL STRATEGY In this respect the board of directors has developed an effective operational strategy. The key objective of the strategy has is to operate near automation, thus simplifying its production processes. The other key objective of the strategy is to achieve economies of scale in its production process. The managements strong production know how has can be used to enable the company to

streamline production processes to maximize the efficiency of its plant and machinery. Furthermore the company will be recruiting the highest skilled technicians and professional managers from the market and provide them with proper and comprehensive training arrangements in order to exercise maximum care for improvement of quality. To promote team work sense of transparency. Yarn Production Plan The company will be applying course count of yarn in production process, as the course count will reduce the conversion costs and increase the yield and production of yarn. The demand of companys yarn is very high and will be sold in the local markets. Overheads Control New plans have been presented before the companys board of directors, by the management of the company, for reduction in manufacturing overhead and other administrative selling and other expenses. There are fixed expenses that do not change, they are fixed for a specified period of time. Debtors Recovery The company has also taken measured in switching its credit policy to bank by reducing credit terms and offering early payment discounts. This initiative will increase the liquidity position of the company better than before. It will also play as a vita factor to reduce the finance cost by paying off the debts in time and avoid un necessary late payment penalties imposed by the commercial banks. MARKET STRATEGY To strive hard to develop new markets for the sale of products locally and internationally. To attend to prompt resolution of customer complaints by taking timely corrective measures to redress the quality complaints. The management obtains regular feedback on its products and continually improves upon its products and improving communications with customers. With key personnel processing strong product development skills and the ability to provide continuous development, business continuity is ensured and relationships with clients are further enhanced. To improve logistic facilities for our customers dispatch program and issue all shipments/ delivery documents well in time.