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Company Performance
Financial year 2016 was a turbulent year. Lower demand,
particularly of basic textiles from China and Europe has adversely
affected financial results of the company. Lower cotton production
by around 28% has further aggravated the situation. Yarn prices
remain depressed due to low demand in international markets.
Reduced exports have been the major drag for the Company.
Depressed yarn selling price and lower margins resulted in after
tax loss of Rs.92,944,967 compared to profit of Rs.133,688,757
during the corresponding previous year. Earning per share (EPS)
for the year is negative at Rs.4.97 compared to earnings of
Rs.7.15 during the correspondence previous year.
Sales revenue slightly increased by 1.42% over the previous year
and stood at Rs.4,267,868,825. Cost of sales significantly surged
from 90.75% of sales to 96.45% of sales thus causing reduction in
GP by 61.08% over the corresponding last year. GP for the year
under review is 3.55% compared to 9.25% of the corresponding
last year.
Distribution cost decreased from 2.48% of sales to 2.17% of sales.
Administrative expenses also decreased from 2.35% of sales to
2.24% of sales. Other operating expenses decreased by 78.75%
over the previous year mainly due to no provision for Workers
Profit Participation Fund and reduction in provision of Workers
Welfare Fund because of losses of the Company. Due to efficient
utilization of financial resources, repayment of long term loans
and hard negotiations with banks for pricing of loans, the finance
cost decreased by 5.09% over the last year.
Capital Assets Investment
During the year your Company invested Rs.254,531,809 in
Balancing, Modernization, Replacement (BMR)/ expansion in
building, plant and machinery and other assets. This was done in
line with Company's strategic plans to continue to diversify its
product range, addition of new qualities and blends of yarn and
improvement in the production capacity of the plant to cater both
domestic and International markets.
In spite of loss during the year, the Board of Directors recommend
cash dividend @10% i.e. Rs.1 per ordinary share for the year
ended June 30, 2016. The dividend will amount to Rs.18,700,000.
JUNE 30, 2016

Rupees Rupees
Sales 4,267,868,825
4,208,113,516 Cost of goods sold
(4,116,388,155) (3,818,880,520)
Gross profit 151,480,670
Distribution cost (92,553,673)
(104,495,620) Administrative expenses
(95,807,183) (99,073,058) Other expenses
(2,357,653) (11,092,746)
Other income 29 41,213,315 43,419,046
Operating profit 1,975,476
217,990,618 Finance cost
(66,397,256) (69,959,094)
------------------ --------------
(Loss) / Profit before taxation (64,421,780)
148,031,524 Provision for taxation
(28,523,187) (14,342,767)
------------------ --------------
(Loss) / Profit after taxation (92,944,967)
Other comprehensive (Loss) / income
Items that will not be reclassified to profit and loss account

Remeasurement of defined benefit liability 5,431,997

Items that may be reclassified subsequently to profit and loss account

Unrealized gain on remeasurement of available for sale investment 480,946

Total other comprehensive income for the year
5,912,943 5,915,220
Total comprehensive (Loss) / income for the year
(87,032,024) 139,603,977
Earnings per share - basic and diluted (4.97)



Sales revenue of Rs.1174.013 million and revenue from
services of Rs.268.853 million aggregating to
Rs.1442.866 million was earned during the period under
report as compared to the sales and services revenue of
Rs.1489.658 million achieved during the same period of
the preceding year.
In view of favourable business circumstances, the
company has earned profit at Rs.9.290 million as
compared with financial loss of Rs.373.757 million in the
preceding period.
(Un-audited) For the 3rd Quarter ended March 31, 2017.
2017 2016
Rupees Rupees
Sales 486,890,566
514,949,451 Cost of sales
393,012,480 566,008,807
--------------- -----------------
Gross Profit / (loss) 93,878,086
Other operating income (17,474,379)
Selling and distribution expenses 3,479,708
5,586,658 Administrative expenses
31,489,590 33,617,537 Other
operating expenses
Workers' profit participation fund 403,664
- Finance cost 33,361,128
--------------- -----------------
---------------- ----------------
Profit / (Loss) for the period before taxation
Provision for taxation 5,513,935
---------------- ------------------
Profit / (Loss) for the period after taxation
Earnings per share - Basic 0.02
The annexed notes form an integral part of this
condensed interim financial report.
Gul Ahmed


Overall our economic position remained stable with
significant increase in revenue. However, we have also faced
an increase in raw materials costs, disallowing of sales tax
input on packaging material, increase in gas tariff and
minimum wage during the period under review, due to which
Pakistans textile exports suffered a decline of 3.07% over
the corresponding period. Lower cotton production led to
hike in cotton prices. Disallowing of sales tax input on
packaging material which is one of the major cost for value
added textile goods is indeed surprising for zero rated textile
goods. These increases along with the continuing
unfavorable PKR/USD parity has resulted in widening the
competitiveness with other textile exporters in the region.
Our management has been able to increase sales by
affectively adopting the principle of lean management in
every sphere of business of the Company, in order to control
production, operational and financial costs, along with
increasing its market share despite the highly challenging
business environment. The Company registered nine months
net sales of Rs 28,729 million against Rs 22,265 million in
the corresponding period showing an increase of 30%. Gross
profit of the Company is Rs 5,260million in the current period
as compared to Rs 5,357million in the corresponding period.
However, due to increase in the input costs discussed earlier
profit before tax declined. Finance cost has also reduced due
to efficient utilization of financial facilities.

The summary of the key numbers is presented below:

Company is focused on achieving efficiency in manufacturing

leading towards effective cost management. Other areas of
focus is the induction of efficient machinery with intelligent
technology enabling the Company to attain its goal of
maximum efficiency with minimum costs. Efforts are
continuing to increase the local retail footprint in Pakistan. In
the past 9 months we have opened several retails stores and
fabric shops. These new outlets will allow us to reach out to
the untapped customers and expand our brand loyalty within

Profit And Loss Account For the nine months ended 31

March, 2017
July to March July to March

Sales 28,729,331
Cost of sales
Opening stock of finished goods 11,285,914
Cost of goods manufactured 24,084,476
Closing stock of finished goods (11,900,897)
------------------ -----------------
23,469,493 16,907,417
----------------- -----------------
Gross profit 5,259,838
Distribution cost 2,551,167
2,323,705 Administrative expenses 1,715,943
1,322,526 Other operating expenses
36,596 106,613
-------------- --------------
4,303,706 3,752,844
Other income 172,739 84,113
Operating profit 1,128,871 1,688,555
Finance cost 635,089 695,795
Profit before taxation 493,782
992,760 Taxation
-Current 192,193 140,055
-Deferred 6,708 (65,499)
198,901 74,556
Profit after taxation 294,881 918,204
Earning per share - basic and diluted (Rs.) 0.99