KTML Annual 2007

KOHINOOR
TEXTILE MILLS LIMITED

A Kohinoor Maple Leaf Group Company
CONTENTS
KOHINOOR TEXTILE MILLS LIMITED
Company Profile 2
Company Information 3
Mission Statement 4
Statement of Ethics and Business Practices 5
Notice of Annual General Meeting 6
Directors’ Report 7
Statement of Compliance with Best Practices of
Code of Corporate Governance 16
Review Report to the Members on Statement of
Compliance with Best Practices of Code of
Corporate Governance 18
Auditors’ Report 19
Balance Sheet 20
Profit and Loss Account 22
Cash Flow Statement 23
Statement of Changes in Equity 24
Notes to the Account 25
Key Operating and Financial Data Six Years Summary 57
Pattern of Holding of the Shares 58
CONSOLIDATED FINANCIAL STATEMENT
Auditors’ Report 63
Balance Sheet 64
Profit and loss Account 66
Cash Flow Statement 67
Statement of Changes in Equity 68
Notes to the Accounts 69
FROM OF PROXY
COMPANY PROFILE
THEN AND NOW The processing facilities at the Rawalpindi unit are
capable of dyeing and printing fabrics for the home
The Company commenced operation in 1953 as a textile market. The stitching facilities produce a
private limited Company and became a Public diversified range of home textiles for the export
Limited Company in 1968. The initial capacity of market. Both the dyeing and stitching facilities are
its Rawalpindi unit comprised 25,000 spindles and being augmented to take advantage of greater market
600 looms. Later, fabric processing facilities were access.
added and spinning capacity was augmented.
Additional production facilities were acquired on Fully equipped laboratory facilities for quality control
the Raiwind-Manga Road near Lahore in District and process optimization have been up at all three
Kasur and on the Gulyana Road near Gujar Khan, sites. The Company has been investing heavily in
by way of merger. Information Technology, training of its human
resources and preparing its management to meet
The Company’s production facilities now comprise the challenges of market integration.
149,220 ring spindles capable of spinning a wide
rang of counts using cotton and Man-made fibers. Kohinoor Textile Mills Limited continues to ensure
The weaving facilities at Raiwind comprise 204 that its current competitive position is maintained
looms capable of weaving wide range of greige as well as supporting the ongoing improvement
fabrics. process in our endeavour to maintain world best
practice manufacturing.
DEBT: EQUTY RATIO TANGIBLE FIXED ASSETS

100 3,971
4,000
90 18 3,591
33 27
35 41 37 35,00
80
3,000
RUPEES IN MILLIONS
70 2,666
PERCENTAGE
60 2,500
2,036 2,077
50 2,000
82 1,615
40
67 73 1,500
65 59 63
30
1,000
20
500
10
0 -
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
EQUITY % DEBT % FIXED ASSETS
2

COMPANY INFORMATION
BOARD OF DIRECTORS
MR. TARIQ SAYEED SAIGOL Chairman / Chief Executive

MR. SAYEED TARIQ SAIGOL
MR. WALEED TARIQ SAIGOL
MR. USMAN SAID
MR. ZAMIRUDDIN AZAR
MR. S.M. IMRAN
MR. ABDUL HAI MEHMOOD BHAIMIA
COMPANY SECRETARY BANKERS

MR. MUHAMMAD ASHRAF AL BARAKA ISLAMIC BANK B.S.C. (E.C.)
ALLIED BANK LIMITED
AUDIT COMMITTEE ASKARI BANK LIMITED
MR. ZAMIRUDDIN AZAR Chairman BANK ALFALAH LIMITED
MR. WALEED TARIQ SAIGOL Member FAYSAL BANK LIMITED
MR. S.M. IMRAN Member MCB BANK LIMITED
MR. MUHAMMAD ASHRAF Secretary
MEEZAN BANK LTD
NATIONAL BANK OF PAKISTAN
CHIEF FINANCIAL OFFICER
NIB BANK LIMITED
MR. USMAN SAID
PICIC COMMERCIAL BANK LIMITED
STANDARD CHARTERED BANK (PAKISTAN) LIMITED
AUDITORS
THE HONGKONG & SHANGHAI BANKING CORPORATION LTD THE
M/S. RIAZ AHMAD & COMPANY
Chartered Accountants BANK OF PUNJAB
MANAGER INTERNAL AUDIT MILLS

MR. ZEESHAN AHMAD • PESHAWAR ROAD, RAWALPINDI.
TEL: (92-051) 5473940-3 FAX: (92-051) 5471795
REGISTERED OFFICE & • 8th K.M., MANGA RAIWIND ROAD, DISTRICT KASUR.
SHARES DEPARTMENT TEL: (92-042) 5394133-34 FAX: (92-042) 5391947
42-LAWRENCE ROAD, LAHORE. • GULYANA ROAD, GUJAR KHAN, DISTRICT RAWALPINDI.
TEL: (92-042) 6302261-62 TEL: (92-0513) 564472-73 FAX: (92-0513) 564337
FAX: (92-042) 6368721 WEB SITE: www.kmlg.com
3
Mission Statement
The Kohinoor Textile Mills Limited stated mission is to
achieve and then remain as the most progressive and profitable
Company in Pakistan in terms of industry standards and
stakeholders interest.
The Company shall achieve its mission through a continuous

process of having sourced, developed, implemented and
managed the best leading edge technology, industry best
practice, human resource and innovative products and
services and sold these to its customers, suppliers and
stakeholders.
4
Statement of Ethics and
Business Practices
The following principles constitute the code of conduct which all Directors and employees
of Kohinoor Textile Mills are required to apply in their daily work and observe in the conduct
of Company’s business. While the Company will ensure that all employees are fully aware
of these principles, it is the responsibility of each employee to implement the Company’s
policies. Contravention is viewed as misconduct.
The code emphasizes the need for a high standard of honesty and integrity which are vital
for the success of any business.
PRINCIPLES
1. Directors and employees are expected not to engage in any activity which can cause
conflict between their personal interest and the interest of the Company such as interest
in an organization supplying goods/services to the Company or purchasing its products.
In case a relationship with such an organization exists the same must be disclosed to
the Management.
2. Dealings with third parties which include Government officials, suppliers, buyers, agents
and consultants must always ensure that the integrity and reputation of the Company
is not in any way compromised.
3. Directors and employees are not allowed to accept any favours, gifts or kickbacks
from any organization dealing with the Company.
4. Directors and employees are not permitted to divulge any confidential information
relating to the Company to any unauthorized person. Nor should they issue any
misleading statements pertaining to the affairs of the Company.
5. The Company has strong commitment to the health and safety of its employees and
preservation of environment and the Company will persevere towards achieving
continuous improvement of its HSE performance by reducing potential hazards preventing
pollution and improving awareness. Employees are required to operate the Company’s
facilities and processes keeping this commitment in view.
6. Commitment and team work are key elements to ensure that the Company’s work is
carried out effectively and efficiently. Also all employees will be equally respected and
actions such as sexual harassment and disparaging remarks based on gender, religion,
race or ethnicity will be avoided.
5
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the 39th Annual General Meeting of the members of KOHINOOR TEXTILE MILLS
LIMITED will be held on Monday, October 29, 2007 at 3:00 p.m. at its Registered Office, 42-Lawrence
Road, Lahore, to transact the following business: -
1. To confirm the minutes of the Extra Ordinary General Meeting held on February 28, 2007.
2. To receive, consider and adopt the audited accounts of the Company for the year ended June
30, 2007 together with the Directors’ and Auditors’ Reports thereon.
3. To appoint Auditors for the ensuing year and fix their remuneration.
4. To transact any other business with the permission of the Chair.
By order of the Board
(Muhammad Ashraf)
Lahore: October 08, 2007 Company Secretary
Notes:
1. Share transfer books of the Company will remain closed from 20-10-2007 to 29-10-2007 (both
days inclusive) and no transfer will be accepted during this period. The members whose names
appear in the register of members as at the close of business on 19-10-2007 will be considered
in time.
2. A member eligible to attend and vote at this meeting may appoint another member as his/her
proxy to attend and vote instead of him/her. Proxies in order to be effective must reach the
Company's Registered Office not less than 48 hours before the time for holding the meeting.
3. CDC Shareholders, entitled to attend and vote at this meeting, must bring with them their National
Identity Cards / Passports in original alongwith Participants’ ID Numbers and their Account
Numbers to prove his/her identity, and in case of Proxy, must enclose an attested copy of his/her
NIC or Passport. Representatives of corporate members should bring the usual documents
required for such purpose.
4. Shareholders are requested to immediately notify the change in address, if any.
6
DIRECTORS’ REPORT TO THE SHAREHOLDERS
The Directors feel pleasure in presenting the 39th annual report along with audited financial accounts for
the year ended June 30, 2007.
OPERATIONS’ REVIEW
The changing global market environment created several

new challenges. Severe competition from rival
manufacturers who undercut prices made sales difficult.
Prices of furnace oil kept surging and gas rates had already
increased in the previous year. Load shedding of gas
forced disrupted operations of cloth processing and power
generation. This forced the increased use of furnace oil
which resulted in higher costs.
The government raised minimum wages with effect from

July 01, 2006 leading to an across the board increase in
workers wages and other charges by approximately 35
per cent. Cost of financing was substantially higher due
to increase in rates of mark up and additional borrowing
for fixed assets. Difficult market conditions and interruption
in gas supply caused under utilization of capacity in both
cloth processing and cut and sew facilities. These factors
increased cost of production and eroded profit margins
quite considerably. Had the Government’s Textile Package
not been announced, results would have been worse.
In order to off set effect of higher cost of power generation due to unpalatable prices of furnace oil, the
management decided to install gas based generators at Rawalpindi and Raiwind sites. These generators
became functional during the year under review and have started producing cheaper electricity, steam and
hot water from recycling of waste heat of the engines. A further capacity increase in gas based generation
of power is under way and will be operational by early December, 2007 after which furnace oil based
engines would be on standby or will cater to local demand by sale to the WAPDA grid.
In view of the need to add value to our products, the

Company augmented its made up production facilities by
adding new cut and sew sections and by establishing a
training centre for sewing personnel. The first batch of
trained staff from this centre has already been transferred
to production departments and is working well. This centre
will impart much needed technical expertise to the locally
available labour force.
Due to weakness in housing and retail sectors in the

United States of America, the future outlook is difficult
with unit rates decreasing again. This is being countered by cost cutting exercises in the production
departments. Some success is being seen in this endeavour. These efforts will continue so that productivity
increases and costs reduce.
The new cotton season in Northern Hemisphere is upon us, albeit opening at very high rates. This is mainly
due to trading by Hedge Funds abroad but we feel these prices can not be sustained. Therefore, much care
will be exercised in purchases this year as has been done in the past.
7
Yarn spinning results have been encouraging in the past year and the results after modernization have been
improved. Compact spinning attachments have been successfully commissioned at Gujar Khan site and
yarn results are quite good. More investment is planned in the year to enhance compact spinning capacity
both at Rawalpindi and Gujar Khan sites. The addition of new combing capacity at Gujar Khan has been
successfully commissioned leading to improved quality and better yield.
Maple Leaf Cement Factory Limited
Weaving operations at the Raiwind site have been fully
modernized and running satisfactorily. Speeds and
efficiency improvements have been as planned. Power
from new gas based generation facility at that site
along with heat recovery installation is working well and
energy costs have decreased.
Cloth processing and cut and sew facilities could not

achieve their performance targets mainly due to under
utilization of the available capacity.
FINANCIAL REVIEW
During the year under review, the Company achieved sales G.P % TO SALE
of Rs. 7,140.167 million (2006: Rs. 6,903.625 million) 25.00%
showing an increase of 3.43%. Gross Profit amounted to
%
20.00%
.95
%
%
%
.77
.80
Rs. 1,045.526 million (2006: Rs. 1,021.807 million) with
.64
.26
.01
15
PERCENTAGE
15
14
14
14
14
15.00%
an increase of 2.32% over the last year. Profit from
operations of the year amounted to Rs. 524.974 million 10.00%
(2006: Rs. 482.825 million) indicating an increase of 5.00%
8.73% over the previous year. 0.00%

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
YEARS
Surge in finance cost – Rs. 603.951 million as compared
to Rs. 448.072 million for the last year - was the main
factor which eroded profit margins.
After adjusting ‘other operating income’ and financial cost, loss before taxation for the year amounted to
Rs. 28.293 million and loss after taxation amounted to Rs. 39.822 million.
There being loss from operations for the year and nil Earnings Per Share, the Directors express inability
to pay any dividend for the year. However, management of the Company in committed to ensure the efficient
operation of the Company to deliver value to the customers and watch interest of the stakeholders.
The Directors recommend as under:

Rs. 000
Loss before taxation (28,293)

Provision for taxation 11,529
Loss after taxation (39,822)

Un appropriated profit brought forward 3,896
Add: Transfer from Dividend Equalization Reserve 9,509
(26,417)
8
INCREASE IN SHARE CAPITAL
The Company issued fully paid bonus share @ 10% and SHARE HOLDER’S EQUITY
right shares @25 % to the entitled members. 8,000

7,294
7,000
RUPEES IN MILLIONS
6,000
INVESTMENTS 5,000 4,717 4,707
4,000 3,799
3,000
During the year, the Company subscribed to the right 2,000 1,683 1,838
shares issued by Maple Leaf Cement Factory Ltd. 1,000

-
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
INFORMATION TECHNOLOGY EQUITY
The Company is in process of developing and upgrading

its management information systems. The IT infrastructure
has been set up utilizing state of the art equipment and
high speed network on Fiber Optic Technology.
The Company has selected Oracle as the main platform

for these systems and is utilizing Oracle Financials which
is a well known tool for financial systems. At the same
time, systems are being developed in house that will be
integrated with Oracle Financials to provide better reporting
and paper free environment within the Company. These
systems will integrate financials, cost and management
accounting, production, marketing and human resource
functions.
Installation and implementation of systems is in progress

and is at varying stages of completion. Certain modules
are now in use.
9
SOCIAL COMPLIANCE AND HUMAN RESOURCES
The Company believes that highly skilled and motivated workforce is essential for success. It gives priority
to human resource development.
Human resource policy has been based on the underlying values of fairness, merit, equal opportunity and
social responsibility. These values manifest themselves in the company’s polices of recruitment, performance
appraisal, training and development, health and safety and industrial relations.
Complying with our human resource polices, the Company does not employ any child labour and is an
equal opportunity employer. Company maintains a high standard of employees working and living conditions;
providing free, safe and clean residential facilities, utilities medical care, life insurance and education.
The Company has taken a number of measures to develop its employees to meet the challenges of today’s
competitive corporate world. The Company has invested extensively in employee development programs
by providing technical, computer, management, health & safety training in our in house training facility
installed with the latest audio / visual equipment.
As a commitment to comply with international standards, the Company opted to adopt Social Accountability
Standard SA-8000:2001 and is now a certificated Company.
10
QUALITY MANAGEMENT SYSTEMS
Your company is ISO-9001:2000 certificated. The surveillance audits are being regularly and successfully
completed on six monthly bases.
Conforming to the Company’s Quality Management Systems, product quality is consistently maintained
and monitored at every stage. Yarn fabric is tested in most modern textile testing laboratories working at
all divisions. These laboratories are equipped with latest equipments and are environmentally control to
the most stringent of international standards. Quality control in made ups production facilities is based
on AQL system, ensuring high control on quality of products. Internal / external audits and management
reviews, clearly demonstrate control improvements and Company’s long term commitment to improve its
management system to any reputed international standard.
11
SAFETY, HEALTH AND ENVIRONMENT
Your Company provides and maintains, so far as practicable equipment, systems and working conditions
which are safe and without risk to the health of all employees, visitors, contractors and public. Management
has maintained its strong commitment to a safe environment in its operations through out the year.
The Company is well aware of the relation ship between the textile production and related environment
issues. Keeping in view the ethical obligations to the environment, it has started working on implementation
of ISO-14001-2004 “Environment Management System” the documentation and environment monitoring
process has been completed. Certification process is targeted to be completed at the earliest possible.
Setting up of effluent treatment plant has already been approved in principle by management. Waste water
is being analyzed regularly and commercial and technical proposals have been sought. However, it has
beendecided to review the change in pollution load after the new machines in the processing department
are fully operational. The installation process will be completed in the year 2007-08.
The Company takes care and applies appropriates procedures to design /manufacture textile products so
as to ensure that no harmful substances are present in its products. It adopts recognized “environment
friendly” working methods and makes careful selection of dye stuffs, optimizes dye baths, uses chlorine
free bleaching techniques, low formaldehyde finishing methods and heavy metal free materials. By employing
these recognized methods, the Company produces safe products and has been able to comply with
requirements of European legislation regarding use of azo dyes and been certificated under OEKO Tex 100
Standard which is now valid till April 30, 2008, confirming the Company’s commitment to using harmless
dyes and chemicals in its production processes.
12
SECURITY
Kohinoor is dedicated to the principles of social responsibility in the workplace. We believe in the dignity
of our employees, are convinced that all employees must work in safe and healthful workplaces, and are
committed to workplace practices that are not harmful to the environment we all share.
Therefore, KTML participates in all social responsibility education and monitoring activities. Further, in
response to the events of September 11, 2001, the US Customs Service implemented the Customs Trade
Partnership Against Terrorism (C - TPAT) for importers to improve supply chain security. KTML supports
C- TPAT and is committed to improve security conditions within the organization as well as throughout
its supply chain from the factory to overseas.
KTML is proud to announce that C. TPAT certification has been acquired by implementing all requirements
of this security standard.
13
FUTURE PROSPECTS
The Company plans to invest in the following areas to improve productivity and quality and to improve
marketing posture.
Spinning:
a) Replacement of two auto winders,
b) Replacement of seventeen old ring frames,
c) Addition of compact spinning attachments on approximately 25,000 spindles,
d) Modernization of Blow Room facilities at Rawalpindi,
e) Addition of fur ther 6,000 spindles at Rawalpindi
f) Replacement of old draw frames at Rawalpindi and Gujar Khan.
Cut and sew depar tment:
Addition of a wadding manufacturing line to reduce costs of the quilting operation,
COMPLIANCE OF CODE OF CORPORATE GOVERNANCE
The Board of Directors periodically reviews the Company’s strategic direction. Business plans and targets
are set by the Chief Executive and reviewed by the Board. The Board is committed to maintain a high
standard of corporate governance. The Board has reviewed the Code of Corporate Governance and confirms
that:
a) The financial statements, prepared by the management of the Company, present fairly its state
of affairs, the result of its operations, cash flows and change in equity.
b) Proper books of account of the company have been maintained.
c) Appropriate accounting policies have been consistently applied in preparation of financial statements
and accounting estimates are based on reasonable and prudent judgment.
d) International Accounting Standards, as applicable in Pakistan, have been followed in preparation
of financial statements and any depar ture there from, has been adequately disclosed.
e) The system of internal control is sound in design and has been effectively implemented and
monitored.
f) There are no significant doubts upon the company’s ability to continue as a going concern.
g) There has been no material depar ture from the best practices of corporate governance, as detailed
in the listing regulations of the stock exchanges.
h) Outstanding taxes and other government levies are given in related note(s) to the audited accounts.
i) Key operating and financial data of last six years is annexed.
Value of investment of provident fund trust, based on their un audited accounts of June 30, 2007
is as under:
(Rs. in thousand)
Provident fund 121,740
DIRECTORS AND BOARD MEETINGS
During the year under repor t, the Board of directors met five times. The number of meetings attended by
each director during the year is shown below: -
Names of Directors Meetings Attended
Mr. Tariq Sayeed Saigol 5
Mr. Sayeed Tariq Saigol 3
Mr. Waleed Tariq Saigol 2
Mr. Usman Said 5
Mr. Zamiruddin Azar 5
Mr. S. M. Imran 4
Mr. Abdul Hai Mehmood Bhaimia 5
Leave of absence was granted to Directors who could not attend the Board meetings.
14

TRADE OF COMPANY’S SHARES
Shares traded by Directors, CEO, CFO, Company Secretary and their spouses and minor children are given
as under: -
No. of Shares
Purchased
Mr. Tariq Sayeed Saigol Chairman/Director 4,889,517

Mr. Muhammad Ashraf Company Secretary 8
PATTERN OF SHAREHOLDING
The statement of shareholding of the Company as at June 30, 2007 is annexed. This statement is in
accordance with the Code of Corporate Governance and Companies Ordinance, 1984.
AUDIT COMMITTEE
Name Designation
Mr. Zamiruddin Azar Chairman

Mr. Waleed Tariq Saigol Member
Mr. S. M. Imran Member
Mr. Muhammad Ashraf Secretary
AUDITORS
The auditors of the Company M/s. Riaz Ahmad & Company, Chartered Accountants, have retired and
offered their services again. The Audit Committee has recommended their appointment as auditors of the
Company for the accounting year ending June 30, 2008.
ACKNOWLEDGEMENT
The Directors are grateful to the Company’s members, financial institutions and customers for their
cooperation and suppor t. They also appreciate hard work and dedication of all the employees working at
various divisions.
For and on behalf of the Board
Lahore
September 29, 2007 Chief Executive
15
STATEMENT OF COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE
This statement is being presented to comply with the Code of Corporate Governance contained in Listing
Regulations of Stock Exchanges in Pakistan for the purpose of establishing a framework of good governance,
whereby a listed company is managed in compliance with the best practices of corporate governance.
The Company has applied the principles contained in the Code in the following manner:-
1. The Company encourages the representation of non-executive directors on its Board of Directors. At
present the Board of Directors includes five independent non-executive directors.
2. The directors have confirmed that none of them is serving as a director in more than ten listed
companies, including this Company.
3. All the resident directors of the Company are registered as taxpayers and none of them has defaulted
in payment of any loan to a banking company, a DFI or an NBFI or, being a member of a stock exchange,
has been declared as a defaulter by that stock exchange.
4. No casual vacancy occurred in the Board during the year.
5. The Company has prepared a ‘Statement of Ethics and Business Practices’, which has been signed
by all the directors and employees of the Company.
6. 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 maintained.
7. All the powers of the Board have been duly exercised and decisions on material transactions, including
appointment and determination of remuneration and terms and conditions of employment of the CEO
and other executive directors, have been taken by the Board.
8. 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 and the Board met at least once in every quarter. Written notices
of the Board meetings, along with agenda and working papers, were circulated at least seven days
before the meetings. The minutes of the meetings were appropriately recorded and circulated.
9. The Board arranged Orientation Course for its Directors during the year to apprise them of their duties
and responsibilities.
10. The Board has approved appointment of CFO, Company Secretary and Head of Internal Audit, including
their remuneration and terms and conditions of employment, as determined by the CEO.
11. The directors’ report for this year has been prepared in compliance with the requirements of the Code
and fully describes the salient matters required to be disclosed.
12. The financial statements of the Company were duly endorsed by CEO and CFO before approval of the
Board.
13. The directors, CEO and executives do not hold any interest in the shares of the Company other than
that disclosed in the pattern of shareholding.
14. The Company has complied with all the corporate and financial reporting requirements of the Code.
16

15. The Board has formed an audit committee. It comprises three members. Two of them are non-executive
directors including the chairman of the committee.
16. The meetings of the audit committee were held at least once every quarter prior to approval of interim
and final results of the Company and as required by the Code. The terms of reference of the committee
have been formed and advised to the committee for compliance.
17. The Board has set-up an effective internal audit function.
18. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating
under the Quality Control Review programme of the Institute of Char tered Accountants of Pakistan,
that they or any of the par tners of the firm, their spouses and minor children do not hold shares of
the Company and that the firm and all its par tners are in compliance with International Federation of
Accountants (IFAC) guidelines on code of ethics as adopted by Institute of Char tered Accountants
of Pakistan.
19. The statutory auditors or the persons associated with them have not been appointed to provide other
services except in accordance with the listing regulations and the auditors have confirmed that they
have observed IFAC guidelines in this regard.
20. We confirm that all other material principles contained in the Code have been complied with.
For and on behalf of the Board
Lahore: September 29, 2007 Chief Executive
17
REVIEW REPORT TO THE MEMBERS ON STATEMENT OF COMPLIANCE WITH BEST

PRACTICES OF CODE OF CORPORATE GOVERNANCE
We have reviewed the statement of compliance with best practices in the code of corporate governance
prepared by the Board of Directors of Kohinoor Textile Mills Limited, for the year 30 June 2007, to comply
with the respective listing regulation of the three stock exchange where the Company is listed.
The responsibility for compliance with the code of corporate Governance is that of the Board of Directors
of the Company. Our responsibility is to review, to the extent where such compliance can be objectively
verified, whether the statement of compliance reflects the status of the Company’s compliance with the
provision of the code of corporate governance and report if it does not. A review is limited primarily to
inquiries of the Company personnel and review of various documents prepared by the Compamy to comply
with the code.
As part of our audit of financial statements we are required to obtain an understanding of the accounting
and internal control system sufficient to plan the audit and develop an effective audit approach. We have
not carried out any special review of the internal control system to enable us to express an opinion as to
whether the Board’s statement on internal control covers all controls and the effectiveness of such internal
control.
Based on our review, nothing has come to our attention which causes us to believe that the statement
of compliance does not appropriately reflect the Company’s compliance, in all material respects, with the
best practices contained in the code of corporate governance, effective as at 30 June 2007.
Islamabad: RIAZ AHMAD & COMPANY

September 29, 2007 Chartered Accountants
18
AUDITORS’ REPORT TO THE MEMBERS
We have audited the annexed balance sheet of “KOHINOOR TEXTILE MILLS LIMITED” as at 30 June 2007
and the related profit and loss account, cash flow statement, and statement of changes in equity together
with the notes forming part thereof, for the year then ended and we state that we have obtained all the
information and explanations which, to the best of our knowledge and belief, were necessary for the
purposes of our audit.
It is the responsibility of the company's management to establish and maintain a system of internal control,
and prepare and present the above said statements in conformity with the approved accounting standards
and the requirements of the Companies Ordinance, 1984. Our responsibility is to express an opinion on
these statements based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards
require that we plan and perform the audit to obtain reasonable assurance about whether the above said
statements are free of any material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the above said statements. An audit also includes assessing
the accounting policies and significant estimates made by management, as well as, evaluating the overall
presentation of the above said statements. We believe that our audit provides a reasonable basis for our
opinion and, after due verification, we report that:
a) in our opinion, proper books of account have been kept by the company as required by the Companies
Ordinance, 1984;
b) in our opinion:
(i) the balance sheet and profit and loss account together with the notes thereon, have been drawn
up in conformity with the Companies Ordinance, 1984 and are in agreement with the books of
account and are further in accordance with accounting policies consistently applied except for
the change as stated in note 3.9 with which we concor;
(ii) the expenditure incurred during the year was for the purpose of the company's business; and
(iii) the business conducted, investments made and the expenditure incurred during the year were
in accordance with the objects of the company;
c) in our opinion and to the best of our information and according to the explanations given to us, the
balance sheet, profit and loss account, cash flow statement and statement of changes in equity together
with the notes forming part thereof conform with approved accounting standards as applicable in
Pakistan, and, give the information required by the Companies Ordinance, 1984, in the manner so
required and respectively give a true and fair view of the state of the Company's affairs as at 30 June
2007 and of the loss, its cash flows and changes in equity for the year then ended; and
d) in our opinion, no Zakat was deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII
of 1980).

September 29, 2007 Chartered Accountants
19

BALANCE SHEET
2007 2006
Note (R upees in thousand)
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized share capital

120,735,325 (2006: 120,735,325)
ordinary shares of Rupees 10 each 1,207,353 1,207,353
30,000,000 (2006: 30,000,000)
preference shares of Rupees 10 each 300,000 300,000
1,507,353 1,507,353
Issued, subscribed and paid up share capital 4 1,455,262 1,058,374

Reserves 5 4,575,057 3,649,034
Total equity 6,030,319 4,707,408
Surplus on revaluation of investment property 16 1,263,592 -
NON-CURRENT LIABILITIES
Long term financing 6 2,460,638 2,500,599
Term finance cer tificates 7 - 71,250
Liabilities against assets subject to finance lease 8 227,643 151,387
Deferred tax liability 9 270,812 53,749
2,959,093 2,776,985
CURRENT LIABILITIES
Trade and other payables 10 475,000 835,990
Accrued mark-up 11 59,219 80,849
Shor t term borrowings 12 2,775,505 2,236,834
Current por tion of non-current liabilities 13 921,325 701,923
4,231,049 3,855,596
CONTINGENCIES AND COMMITMENTS 14 - -
14,484,053 11,339,989
The annexed notes form an integral part of these financial statements.
Chief Executive
20
Maple
Maple Leaf Cement Leaf Limited
Factory Cement Factory Limited
AS AT 30 JUNE 2007
2007 2006
Note (Rupees in thousand)
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 15 3,971,021 3,561,259

Investment property 16 1,384,577 -
Long term investment 17 4,553,255 3,821,749
Long term deposits 18 28,135 17,564
9,936,988 7,400,572
CURRENT ASSETS
Stores and spares 19 284,228 502,870
Stock -in- trade 20 1,755,097 1,607,795
Trade debts 21 1,062,320 887,407
Advances 22 137,776 225,912
Security deposits and short term prepayments 23 14,463 20,006
Accrued Interest 386 581
Other receivables 24 285,382 229,438
Short term investments 25 904,327 7,000
Taxation recoverable 39,355 21,597
Cash and bank balances 26 63,731 436,811
4,547,065 3,939,417
14,484,053 11,339,989
Director
21

PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 30 JUNE 2007
2007 2006
SALES 27 7,140,167 6,903,625

COST OF SALES 28 6,094,641 5,881,818
GROSS PROFIT 1,045,526 1,021,807
SELLING AND DISTRIBUTION EXPENSES 29 372,793 401,276

ADMINISTRATIVE EXPENSES 30 135,347 124,327
OTHER OPERATING EXPENSES 31 12,412 13,379
520,552 538,982
PROFIT FROM OPERATIONS 524,974 482,825
OTHER OPERATING INCOME 32 50,684 320,231
575,658 803,056
FINANCE COST 33 603,951 448,072
PROFIT / (LOSS) BEFORE TAXATION (28,293) 354,984
PROVISION FOR TAXATION 34 11,529 56,780

PROFIT / (LOSS) AFTER TAXATION (39,822) 298,204
EARNINGS PER SHARE - RUPEES 38 (0.32) 2.49
Chief Executive Director
22

CASH FLOW STATEMENT

2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 35 463,127 233,077

Finance cost paid (625,581) (410,209)
WPPF paid (5,431) (7,370)
Taxes paid (47,774) (42,198)
Net cash used in operating activities (215,659) (226,700)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure on proper ty, plant and equipment (718,843) (1,128,381)

Long term deposits (10,571) 3,203
Purchase of right shares (466,522) -
Return on bank deposits 1,242 445
Proceeds from sale of proper ty, plant and equipment 30,230 81,840
Proceeds from sale of investments - 403,795
Dividend received 8,531 2,275
Net cash used in investing activities (1,155,933) (636,823)
CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from:
Long term financing - secured 1,138,617 1,815,308
Shor t term borrowing 538,671 121,679
Right issue of ordinary shares 435,970 -
Repayment of:
Long term financing - secured (965,392) (595,503)
Finance leases (78,089) (118,032)
Term finance cer tificates (71,250) (71,250)
Dividend paid (15) (208)
Net cash from financing activities 998,512 1,151,994
Net increase / (decrease) in cash and cash equivalents (373,080) 288,471
Cash and cash equivalents at the beginning of the year 436,811 148,340
Cash and cash equivalents at the end of the year 26 63,731 436,811
23

STATEMENT OF CHANGES IN EQUITY

Reserves
Capital Reserve Revenue Reserves
Share Surplus on Total Total
Capital Reserve Dividend Un- Reserves Equity
Capital Share revaluation General
for Bonus Sub Total Equalization appropriated Sub Total
Reserve premium of Reserve
Shares Reserve Profit
investment
.......................(R u p e e s i n t h o u s a n d ) . . . . . . . . . . . . ... . . . . . . .
Balance as at 30 June 2005 962,158 18,901 151,855 1,429,049 - 1,599,805 1,090,491 9,509 136,989 1,236,989 2,836,794 3,798,952
Transfer to general reserves - - - - - - 100,000 - (100,000) - - -
Bonus shares issued 96,216 - (96,216) - - (96,216) - - - - (96,216) -
Surplus on revaluation of investment to fair value - - - 863,151 - 863,151 - - - - 863,151 863,151
Adjustment of fair value on disposal of investment - - - (252,899) - (252,899) - - - - (252,899) (252,899)
Net profit for the year - - - - - - - - 298,204 298,204 298,204 298,204
Balance as at 30 June 2006 1,058,374 18,901 55,639 2,039,301 - 2,113,841 1,190,491 9,509 335,193 1,535,193 3,649,034 4,707,408
Transfer to general reserves - - - - - - 300,000 - (300,000) - - -
Reserve for bonus shares - (18,901) (55,639) - 105,837 31,297 - - (31,297) (31,297) - -
Bonus shares issued 105,837 - - - (105,837) (105,837) - - - - (105,837) -
Right shares issued at premium 291,051 - 144,919 - - 144,919 - - - - 144,919 435,970
Revaluation of investment to fair value - - - 926,763 - 926,763 - - - - 926,763 926,763
Net loss for the year - - - - - - - - (39,822) (39,822) (39,822) (39,822)
Balance as at 30 June 2007 1,455,262 - 144,919 2,966,064 - 3,110,983 1,490,491 9,509 (35,926) 1,464,074 4,575,057 6,030,319
The annexed notes form an integral par t of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS
1. THE COMPANY AND ITS OPERATIONS
Kohinoor Textile Mills Limited is a public limited company incorporated in Pakistan under the Companies
Act,1913 (now Companies Ordinance, 1984) and listed on the Karachi, Lahore and Islamabad Stock
Exchanges. The registered office of the Company is situated at 42- Lawrence Road, Lahore. The
principal activity of the company is manufacturing of yarn and cloth, processing and stitching the
cloth and trade of textile products.
2. STATEMENT OF COMPLIANCE
2.1 These financial statements have been prepared in accordance with approved accounting
standards as applicable in Pakistan and the requirements of the Companies Ordinance, 1984.
Approved accounting standards comprise of such International Accounting Standards (IAS)
as notified under the provisions of the Companies Ordinance, 1984. Wherever, the requirements
of the Companies Ordinance, 1984 or directives issued by the Securities and Exchange
Commission of Pakistan (SECP) differ with the requirements of these standards, the requirements
of Companies Ordinance, 1984 or the requirements of the said directives take precedence.
2.2 Standards, interpretations and amendments to published approved accounting standards

that are not yet effective
The following standards, amendments and interpretations of approved accounting standards

effective for annual periods beginning on or after 01 July 2007, relevant to the operations of
the Company, are not expected to have significant impact on the Company’s financial statements
and may only result in certain increased disclosures:
a) IFRS-7 Financial Instruments: Disclosures Effective from 01 January 2007
b) IFRS-5 Non current assets held for sale Effective from 01 January 2007
and discontinued operations
c) IAS-1 Presentation of Financial Statements Effective from 01 January 2007

- amendments relating to capital
disclosures
d) IAS-23 Borrowing Costs Effective in case of borrowing costs

relating to qualifying asset for which the
commencement date for capitalisation
is on or after 01 January 2009
e) IFRIC-10 Interim Financial Reporting Effective for annual periods beginning

and impairment' on or after 01 January 2007
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 Basis of Preparation
These financial statements have been prepared under the historical cost convention, except
for financial instruments which are carried at their fair value.
25
3.2 Critical accounting estimates and judgments
The preparation of financial statements in conformity with the approved accounting standards
requires the use of certain critical accounting estimates. It also requires the management to
exercise its judgment in the process of applying the Company's accounting policies. Estimates
and judgments are continually evaluated and are based on historical experience, including
expectation of future events that are believed to be reasonable under the circumstances. The
areas where various assumptions and estimates are significant to the Company's financial
statements or where judgments were exercised in application of accounting policies are as
follows:
3.2.1 Useful lives, patterns of economic benefits and impairments
Estimates with respect to residual values, depreciable lives and pattern of flow of economic
benefits are based on the analysis of the management of the Company. Further, the Company
reviews the value of assets for possible impairments on an annual basis. Any change in the
estimates in the future might affect the carrying amount of respective item of property, plant
and equipment, with a corresponding effect on the depreciation charge and impairment.
3.2.2 Financial instruments
The fair value of financial instruments that are not traded in an active market is determined by
using valuation techniques based on assumptions that are dependent on market conditions
existing at balance sheet date.
3.2.3 Taxation
In making the estimates for income tax currently payable by the Company, the management
takes into account the current income tax law and the decisions of appellate authorities on
certain issues in the past.
3.3 Employee benefits
The Company operates an approved defined contribution provident fund for all its employees.
Equal monthly contributions are made both by the company and employees at the rate of 8.33
percent of basic salary and cost of living allowance to the fund.
3.4 Taxation
Current
The company falls in the ambit of presumptive tax regime regarding export sales under section
154 of the Income Tax Ordinance, 2001. Provision for income tax is made in the financial
statements accordingly. However, provision for tax on local sales and other income is based
on taxable income at the prevailing current rates after considering the rebates and tax credits
available, if any, or one-half percent of turn over, which ever is higher.
Deferred
Deferred tax is accounted for using the balance sheet liability method in respect of all temporary
timing differences arising from difference between the carrying amount of the assets and
liabilities in the financial statements and corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are recognized for all taxable temporary differences and
deferred tax assets are recognized for all deductible temporary differences to the extent that it
is probable that taxable profit will be available against which the deductible temporary differences,
unused tax losses and tax credits can be utilized.
26
Deferred tax is calculated at the rates that are expected to apply to the period when the
differences reverse, based on tax rates that have been enacted or substantively enacted by the
balance sheet date. Deferred tax is charged or credited in the income statement, except where
deferred tax arises on the items credited or charged to equity in which case it is included in
equity.
3.5 Trade and other payables
Liabilities for trade and other amounts payable are initially recognized at fair value which is
normally the transaction cost.
3.6 Provisions
Provisions are recognized when the Company has a legal or constructive obligation as a result
of past event, if it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation and a reliable estimate of the amount can be made. Provisions
are reviewed at each balance sheet date and are adjusted to reflect the current best estimates.
3.7 Finance leases
Leases where the company has substantially all the risks and rewards of ownership are classified
as finance leases. Assets subject to finance lease are stated at the lower of present value of
minimum lease payments under the lease agreements and the fair value of the assets. The
related rental obligations, net of finance charges, are included in liabilities against assets subject
to finance lease.
Each lease payment is allocated between the liability and finance charge so as to achieve a
constant rate on the balance outstanding. Finance charge of the rental is charged to profit over
the lease term.
3.8 Property, plant, equipment and depreciation
Owned
a) Cost
Property, plant and equipment except freehold land and capital work in progress are stated
at cost less accumulated depreciation and impairment losses, if any. Freehold land and
capital work in progress are stated at cost. Cost of tangible assets consists of historical
cost, borrowing cost pertaining to erection/construction period and other directly attributable
cost of bringing the asset to working condition.
Subsequent costs are included in the assets carrying amount or recognized as a separate
asset, as appropriate, only when it is probable that future economic benefits associated
with the item will flow to the Company and the cost of the item can be measured reliably.
All other repair and maintenance costs are charged to income during the period in which
they are incurred.
b) Depreciation
Depreciation on all operating property, plant and equipment is charged to income on
reducing balance method after taking into account residual value, if any, so as to write
off the depreciable amount of an asset over its estimated useful life at the rates given in
Note 15.1. Depreciation on additions is charged from the month the assets are available
for use while no depreciation is charged in the month in which the assets are disposed
off. The residual values and useful lives of assets are reviewed by the management at
each financial year end and adjusted if impact on depreciation is significant.
27
c) Derecognition
An item of property, plant and equipment is derecognized on disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the difference between the net disposal proceeds
and carrying amount of the asset) is included in the income statement in the year the
asset is derecognized.
Leased
Finance lease
Leases where the Company has substantially all the risk and rewards of ownership are classified
as finance lease. Assets subject to finance lease are capitalized at the commencement of the
lease term at the lower of present value of minimum lease payments under the lease agreements
and the fair value of the leased assets, each determined at the inception of the lease.
The related rental obligation net of finance cost, is included in liabilities against assets subject
to finance lease. The liabilities are classified as current and long term depending upon the timing
of payments.
Each lease payment is allocated between the liability and finance cost so as to achieve a
constant rate on the balance outstanding. The finance cost is charged to income over the lease
term.
Depreciation of assets subject to finance lease is recognised in the same manner as for owned
assets. Depreciation of the leased assets is charged to income.
3.9 Investment Property
Change in accounting policy
During the current year, the Company has changed its accounting policy to recognize the owner-
occupied property as investment property (Note 16) in accordance with the requirements of
International Accounting Standard IAS-40 "Investment Property". Previously, these properties
were presented as property, plant and equipment in accordance with the accounting policy
given in note 3.8 to the financial statements. Had there been no change in accounting policy
the carrying value of property, plant and equipment would have been higher by Rupees 120.985
million.
Investment properties are carried at fair value which is based on active market prices, adjusted,
if necessary, for any difference in the nature, location or condition of the specific asset. The
valuation of the property is carried out with sufficient regularity.
Gain or losses arising from a change in the fair value of investment properties are included in
the income currently.
3.10 Intangible assets
Intangible assets, which are non-monetary assets without physical substance, are recognized
at cost, which comprise purchase price, non-refundable purchase taxes and other directly
attributable expenditures relating to their implementation and customization. After initial recognition
an intangible asset is carried at cost less accumulated amortization and impairment losses, if
any. Intangible assets are amortized from the month, when these assets are available for use,
using the straight line method, whereby the cost of the intangible asset is amortized over its
estimated useful life over which economic benefits are expected to flow to the Company. The
useful life and amortization method is reviewed and adjusted, if appropriate, at each balance
sheet date.
28
3.11 Investments
The Company's management determines the appropriate classification of its investments at the
time of purchase.
Investments are initially measured at fair value plus transaction costs directly attributable to
acquisition, except for "investments at fair value through profit and loss account".
Investments at fair value through profit and loss account
Investments classified as held-for-trading and those designated as such are included in this
category. Investments are classified as held-for-trading if they are acquired for the purpose of
selling in the short term.
Gains or losses on investments held-for-trading are recognised in profit and loss account.
Held-to-maturity
Investments with fixed or determinable payments and fixed maturity are classified as held-to-
maturity when the company has the positive intention and ability to hold to maturity. Investments
intended to be held for an undefined period are not included in this classification. Other long
term investments that are intended to be held to maturity are subsequently measured at amortised
cost. This cost is computed as the amount initially recognised minus principal repayments,
plus or minus the cumulative amortisation using the effective interest method of any difference
between the initially recognised amount and the maturity amount. For investments carried at
amortised cost, gains and losses are recognised in income when the investments are derecognised
or impaired, as well as through the amortisation process.
Available-for-sale
Other investments not covered in any of the above categories are classified as available-for-
sale.
After initial recognition, investments which are classified as available-for-sale are measured
at fair value. Gains or losses on available-for-sale investments are recognised directly in equity
until the investment is sold, derecognised or is determined to be impaired, at which time the
cumulative gain or loss previously reported in equity is included in income. Upon impairment,
gain / loss including that had been previously recognised directly in equity, is included in the
profit and loss account for the year.
For investments that are actively traded in organised financial markets, fair value is determined
by reference to stock exchange quoted market bids at the close of business on the balance
sheet date. For investments where there is no quoted market price, fair value is determined by
reference to the current market value of another instrument which is substantially the same or
is calculated based on the expected cash flows of the underlying net asset base of the investment
or based on other appropriate valuation techniques.
All purchases and sales of investments are recognized on the trade date which is the date that
the Company commits to purchase or sell the investment.
Equity investment in subsidiary and associated companies
The investments in associates in which the Company does not have significant influence and
subsidiary are classified as "Available for Sale".
29
3.12 Inventories
Inventories, except for stock in transit and waste stock are stated at lower of cost and net
realizable value. Cost is determined as follows:
Stores and spares
Useable stores and spares are valued principally at moving average cost, while items considered
obsolete are carried at nil value. In transit stores and spares are valued at cost comprising
invoice value plus other charges paid thereon.
Stock in trade
Cost of raw material is based on annual average cost.
Cost of work in process and finished goods comprises cost of direct material, labour and
appropriate manufacturing overheads. Cost of goods purchased for resale are based on weighted
average.
Materials in transit are valued at cost comprising invoice value plus other charges paid thereon.
Waste stock is valued at net realizable value.
Net realizable value signifies the estimated selling price in the ordinary course of business less
costs necessarily to be incurred in order to make a sale.
3.13 Trade and other receivables
Trade debts and other receivables are carried at original invoice amount less an estimate made
for doubtful debts and other receivables based on a review of all outstanding amounts at the
year end. Bad debts and other receivables are written off when identified.
3.14 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at book value which approximates
their fair value. For the purposes of the cash flow statement, cash equivalents comprise cash
in hand, cash at banks and other short term highly liquid instruments that are readily convertible
into known amounts of cash and which are subject to insignificant risk of changes in values.
3.15 Revenue recognition
a) Revenue from local sales is recognized on despatch of goods to customers while in case
of export sales it is recognized on the date of bill of lading.
b) Dividend on equity investments is recognized as income when the Company's right to

receive payment is established.
c) Interest on bank deposits is recognized on accrual basis.
3.16 Borrowing costs
Borrowing costs are capitalized upto the date of commissioning of respective fixed asset
acquired out of the proceeds of such borrowings. All other mark up, interest and other charges
are charged to income.
30
3.17 Foreign currencies
Transactions in foreign currency during the year are translated into Pak Rupees at the rates
of exchange prevailing on the date of transaction. All monetary assets and liabilities in foreign
currencies are translated into Pak Rupees at the rate of exchange prevailing on the balance
sheet date except where forward exchange contracts have been made, in which case the
contracted rates are applied. All exchange gains and losses are taken to the profit and loss
account.
3.18 Financial assets and liabilities
Financial assets and liabilities are recognized at fair value when the Company becomes party
to the contractual provisions of the instrument by following trade date accounting. Any gain
or loss on the subsequent measurement is charged to the profit and loss account. The Company
derecognizes a financial asset or a portion of financial asset when, and only when, the enterprise
loses the control over contractual right that comprises the financial asset or a portion of financial
asset. While a financial liability or a part of financial liability is derecognized from the balance
sheet when, and only when, it is extinguished, i.e. when the obligation specified in contract is
discharged, cancelled or expired.
The particular measurement methods adopted are disclosed in the individual policy statements
associated with each item.
Financial assets are long term investments, long term deposits, trade debts, loans and advances
and other receivables, short term investments and cash and bank balances.
Financial liabilities are classified according to the substance of the contractual agreements
entered into. Significant financial liabilities are long term financing, short term borrowings and
trade and other payables.
3.19 Impairment
The carrying amounts of the Company's assets are reviewed at each balance sheet date to
determine whether there is any indication of impairment loss. If any such indication exists, the
recoverable amount of such assets is estimated and impairment losses are recognized in the
profit and loss account. Where an impairment loss subsequently reverses, the carrying amount
of the asset is increased to the revised recoverable amount but limited to the extent of the initial
cost of the asset. A reversal of the impairment loss is recognized in profit and loss account.
3.20 Dividend and other appropriations
Dividend to the shareholders is recognized in the period in which it is declared and other
appropriations are recognized in the period in which these are approved by the Board of Directors.
3.21 Off setting of financial assets and liabilities
Financial assets and liabilities are set off and the net amount is reported in the financial statements
when there is legally enforceable right to set off and the Company intends either to settle on a
net basis, or to realize the asset and settle the liability simultaneously.
3.22 Mark up bearing borrowings
Borrowings are recognized initially at fair value and are subsequently stated at amortized cost;
any difference between the proceeds and the redemption value is recognized in the income
statement over the period of the borrowing using the effective interest rate method.
31
4. ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL

2007 2006 2007 2006
Number of shares (Rupees in thousand)
1,596,672 1,596,672 Ordinary shares of Rupees 10 each
allotted on reorganisation of
Kohinoor
Maple Leaf Industries
Cement MapleLimited
Factory Limited 15,967
Leaf Cement Factory Limited 15,967
26,156,000 26,156,000 Ordinary shares allotted under scheme
of arrangement of merger of Part II
of Maple Leaf Electric Company Limited 261,560 261,560
26,858,897 26,858,897 Ordinary shares allotted under scheme
of arrangement of merger of Kohinoor
Raiwind Mills Limited and Kohinoor
Gujar Khan Mills Limited. 268,589 268,589
issued as bonus shares 386,736 280,900
issued for cash 522,410 231,358
145,526,216 105,837,249 1,455,262 1,058,374
4.1 Reconciliation of the number of shares outstanding;
2007 2006
(Number of shares)
Number of shares outstanding at the beginning of the year 105,837,249 96,215,681
Add: 10% Bonus issue of shares during the year 10,583,724 9,621,568
25% Right issue of shares during the year 29,105,243 -
39,688,967 9,621,568
145,526,216 105,837,249
4.2 Zimpex (Private) Limited, which is an associated company, held 22,510,635 (2006: 16,371,371)
ordinary shares of Rupees 10 each at 30 June 2007.
5. RESERVES
2007 2006
Capital:
Capital reserve - 18,901
Share premium 5.1 144,919 55,639
Surplus on revaluation of investments - net of deferred tax 5.2 2,966,064 2,039,301
3,110,983 2,113,841
Revenue:
General reserve 1,490,491 1,190,491
Dividend equalization reserve 9,509 9,509
Unappropriated profit (35,926) 335,193
1,464,074 1,535,193
4,575,057 3,649,034
32
5.1 This reserve can be utilized by the company only for the purposes specified in section 83(2)
of the Companies Ordinance, 1984.
5.2 Surplus on revaluation of investments - net of deferred tax
2007 2006
Balance as at July 01 2,039,301 1,429,049
Add : Fair value adjsutmentsMapleon investments
Leaf : Limited
Cement Factory
Maple Leaf Cement Factory Limited 264,985 863,151
Kohinoor Weaving Mills Limited - (252,899)
Security General Insurance Company Limited 897,327 -
1,162,312 610,252
Less : Deferred tax liability
Balance as at June 30 2,966,064 2,039,301
6. LONG TERM FINANCING
From banking companies and other
financial institutions - Secured
National Bank of Pakistan (NBP) 6.1 14,761 31,986
MCB Bank Limited (MCB - 1) 6.2 25,000 75,000
The Bank of Punjab (BOP - 1) 6.3 218,709 320,754
The Bank of Punjab (BOP - 2) 6.4 300,000 200,000
Standard Chartered Bank (Pakistan) Limited (SCBPL) 6.5 75,225 102,725
Albaraka Islamic Bank Limited (ABIB) 6.6 100,000 100,000
United Bank Limited (UBL) 6.7 62,500 112,500
Allied Bank Limited (ABL -1 ) 6.8 235,115 281,568
Allied Bank Limited (ABL - 2) 6.9 375,000 500,000
Allied Bank Limited (ABL - 3) 6.10 250,000 -
The Bank of Khyber (BOK) 6.10 80,000 -
Orix Leasing Pakistan Ltd (OLPL) 6.10 25,000 -
Faysal Bank Limited (FBL - 1) 6.11 300,000 300,000
Faysal Bank Limited (FBL - 2) 6.12 137,500 -
Saudi Pak Industrial and Agricultural Investment Co.
(Pvt) Limited (SPIAICPL-1) 6.13 43,334 57,778
(Pvt) Limited (SPIAICPL-2) 6.14 40,000 -
(Pvt) Limited (SPIAICPL-3) 6.15 250,000 40,000
Bank Alfalah Limited (BAL) 6.16 272,222 350,000
Pakistan Industrial Credit and Investment Corporation
Limited (PICIC-1) 6.17 23,464 44,850
Pakistan Industrial Credit and Investment Corporation
Limited (PICIC-2) 6.18 292,786 292,786
NIB Bank Limited (NIB - 1) 6.19 10,000 30,000
NIB Bank Limited (NIB - 2) 6.20 92,727 -
MCB Bank Limited (MCB - 2) - 10,171
Askari Bank Limited (ACBL) - 200,000
3,223,343 3,050,118
Less: Current portion 13 770,182 556,996
2,453,161 2,493,122
Other loans - Unsecured
Kohinoor Sugar Mills Limited (KSML) 6.21 4,794 4,794
Kohinoor Industries Limited (KIL) 6.22 2,683 2,683
7,477 7,477
2,460,638 2,500,599
33
6.1 National Bank of Pakistan (NBP)

This represents demand finance facility of Rupees 60 million, obtained for import of textile
machinery for Balancing, Modernization and Replacement (BMR) and is allowed for a period
of four and a half years including a grace period of six months. The tentative expiry period of
the facility is March, 2008. The facility is repayable in sixteen (16) quarterly installments. It is
secured by first exclusive charge on machinery amounting to Rupees 80 million and personal
guarantee of sponsor directors. It carries mark up at the rate of 6-months KIBOR plus 1.50%
with a floor of 4% per annum.
6.2 MCB Bank Limited (MCB - 1)
This represents demand finance loan of Rupees 200 million, obtained for import of Picanol Air
jet Looms and is repayable in sixteen (16) equal quarterly installments commencing from March
31, 2004. It is secured by first registered pari passu charge on fixed assets of the company
(Raiwind Division) and personal guarantees of sponsor directors of the Company. It carries
mark up at the rate of 6 months KIBOR plus 175 bps per annum.
6.3 The Bank of Punjab - (BOP-1)
This represents demand finance facility of Rupees 400 million, obtained for import of state of
art machinery and is allowed for a period of four years with a grace period of six months. The
loan is repayable in 7 equal half yearly installments commencing after conclusion of grace
period. It is secured by bank's exclusive hypothecation charge on machinery imported and
personal guarantee of sponsor directors. Facility amounting to Rupees 300 million carries mark
up at the rate of 6 months average KIBOR plus 100 bps and additional facility of Rupees 100
million carries mark up at the rate of 6 months average KIBOR plus 275 basis points (bps)
with a floor of 4.25% per annum, payable quarterly. On November 29, 2006 loans amounting
Rupees 150.431 million were converted to LTF-EOP consisting of Rupees 61.725 million at 6
% per annum and Rupees 88.706 million at 7 % fixed rate of mark up.
6.4 The Bank of Punjab - (BOP-2)
This represents term finance facility of Rupees 300 million obtained for debt reprofiling for a
period of five years including a grace period of one year. The facility is repayable in sixteen
equal quarterly instalments, first payment being due at the end of 15th month from the date
of disbursement. It is initially secured by ranking charge for Rupees 400 million on fixed assets
and surplus land situated at Rawalpindi and personal guarantees of the sponsor directors. On
completing the requisite formalities charge will be upgraded as first pari passu charge on the
surplus land situated at Rawalpindi and the existing charge on fixed assets will be vacated. It
carries mark up at the rate of 3 months KIBOR plus 275 bps per annum with quarterly repricing.
6.5 Standard Chartered Bank (Pakistan) Limited (SCBPL)
This represents the term finance facility of Rs. 110 million, obtained for import of state of art
machinery and is allowed for a period of five years including a grace period of one year. The
facility is payable in sixteen (16) equal quarterly installments. It is secured by first exclusive
charge on machinery and personal guarantees of sponsor directors. It carries mark up at the
rate of 6-months KIBOR plus 2.25% per annum with no floor and cap.
6.6 Albaraka Islamic Bank Limited (ABIB)
This represents Murabaha finance facility of Rupees 100 million, obtained for construction of
buildings. The facility is allowed for a period of four years with a grace period of one year. The
facility is repayable in sixteen (16) equal quarterly installments commencing with first payment
being due at the end of 15th month from the date of disbursement. It is secured by pari passu
charge and hypothecation on fixed assets i.e. land and building constructed for ring spinning
and stitching. It carries mark up at the rate of 3-years KIBOR plus 2% per annum with floor of
12.75% per annum.
34
6.7 United Bank Limited (UBL)
This represents the term Loan facility of Rs. 200 million, to finance BMR at Kohinoor Textile
Mills Limited (Rawalpindi and Gujar Khan Divisions) and to refinance loans of other banks. The
term loan facility is allowed for a period of five years with one year grace period and is repayable
in sixteen equal quarterly installments, commencing from December 31, 2004. It carries mark
up at rate of 6 months treasury bills cut-off rate plus 275 basis points with a floor of 4.5% per
annum. It is secured by first pari passu charge for Rupees 266 million on all existing and future
fixed assets of Kohinoor Textile Mills Limited (Raiwind Division) and personal guarantees of the
sponsor directors.
6.8 Allied Bank Limited (ABL-1)
This represents term finance facility of Rupees 300 million , obtained for import of state of art
machinery and is allowed for a period of five years with a grace period of one year. The facility
is repayable in sixteen (16) equal quarterly installments commencing after conclusion of grace
period. It is secured by first exclusive charge on machinery imported. Facility amounting to
Rupees 100 million carries mark up at the rate of 6 months KIBOR plus 1.25% per annum,
facility of Rupees 125 million carries mark up at the rate of 6 months KIBOR plus 1.75% per
annum and facility of Rupees 75 million carries mark up at the rate of 6 months KIBOR plus
2.50% per annum with no floor and cap. On December 28, 2006 loans amounting Rupees
124.732 million were conver ted to LTF-EOP at 7% per annum fixed rate of mark up.
6.9 Allied Bank Limited (ABL-2)
This represents the demand finance facility of Rupees 500 million, obtained for BMR and is
allowed for a period of five years with a grace period of one year. The facility is repayable in
sixteen (16) equal quarterly installments commencing after conclusion of grace period. It is
secured by first pari passu charge over land at Rawalpindi. It carries mark up at the rate of 6
months KIBOR plus 2% per annum.
6.10 Allied Bank Limited, The Bank of Khyber, Orix Leasing Pakistan Limited and Saudi Pak
Commercial Bank Limited
This represents a syndicated finance facility aggregating Rupees 405 million inclusive of
unavailed limit of Rupees 50 million of Saudi Pak Commercial Bank Limited under green shoe
option. The facility is arranged through Allied Bank Limited (Arranger) for debt reprofiling from
a syndicate of Allied Bank Limited (arranger), The Bank of Khyber, Orix Leasing Pakistan Limited
and Saudi Pak CommercialBank Limited for a period of 5 years inclusive of grace period of one
year. The facility is repayable in 8 equal semi annual instalments. It is secured by charge on
land held by Rawalpindi division of the Company. The facility carries mark up at the rate of 6
months KIBOR plus 275 bps with semi annual repricing.
6.11 Faysal Bank Limited (FBL - 1)
This represents Morabaha finance facility of Rupees 300 million, obtained for purchase of local
/ imported textile machinery, tools spares and other related equipment. It is allowed for a period
of five years with a grace period of one year. The facility is repayable in sixteen (16) equal
quarterly installments commencing with first payment being due at the end of 15th month from
the date of first disbursement. It is secured by first registered parri passu mortgage and
hypothecation charge of Rupees 400 million over all present and future fixed assets (excluding
surplus land) of Kohinoor Textile Mills Limited ( Rawalpindi Division) and personal guarantees
of sponsoring directors. It carries mark up at the rate of 6 months average KIBOR (Asking) plus
2.50% per annum with semi annual repricing.
35
6.12 Faysal Bank Limited (FBL - 2)
This represents Long term finance against export oriented projects (LTF-EOP) facility of Rupees
137.500 million for import of 36 Picanol Omni plus wide width high speed looms and a warping
machine and is allowed for a period of three years with one year grace period. It is repayable
in equal quarterly installments. The facility is secured by exclusive charge on the aforesaid
imported machinery, first pari passu charge of Rupees 47.5 million on fixed assets of Raiwind
division of the Company and personal guarantees of the sponsor directors. It carries mark up
at a fixed rate of 6 % per annum.
6.13 Saudi Pak Industrial and Agricultural Investment Co. (Private) Limited (SPIAICPL - 1)
This represents the term finance facility of Rupees 65 million for import of textile machinery
and is allowed for a period of five years with a grace period of six months. The facility is
repayable in eighteen (18) equal quarterly installments commencing from February 19, 2006.
It is secured by first exclusive charge on machinery imported. It carries mark up at the rate of
6-months KIBOR average ask plus 1.75% per annum.
6.14 Saudi Pak Industrial and Agricultural Investment Co. (Private) Limited (SPIACIPL - 2)
This represents a LTF - EOP facility of Rupees 40 million for import of warping and sizing
machines and is for a period of five years with a grace period of one year. It is repayable in
equal quar terly installments. It carries mark up at a fixed rate of 7.75% per annum.
6.15 Saudi Pak Industrial and Agricultural Investment Co. (Private) Limited (SPIACIPL - 3)
period of five years including grace period of one year. The facility is repayable in 8 equal six
monthly installments. It is secured by first parri passu charge by way of hypothecation on all
present and future plant and machinery of the Company and by way of mortgage on land
measuring 121 Acres, 2 kanals and 1 marla, situated at main Peshawar Road, Rawalpindi with
25% margin. Initially ranking charge will be created which will be upgraded within 90 days from
the date of disbursement. The facility carries mark up at the rate of 3 months KIBOR plus 275
bps per annum with quarterly repricing.
6.16 Bank Alfalah Limited (BAL)
This represents term finance facility of Rupees 350 million allowed for a period of five years
with a grace period of six months. The facility is repayable in 18 equal quarterly installments
commencing six months after the date of disbursement. It is secured by first pari passu mortgage
charge on 43 Acres of surplus land located at Main Peshawar Road, Rawalpindi and personal
guarantees of the sponsor directors. It carries mark up at the rate of 6 months KIBOR plus 2%
per annum with semi annual repricing.
6.17 Pakistan Industrial Credit and Investment Corporation Limited (PICIC-1)
This represents a loan of Rupees 100 million obtained from PICIC for import of Air Jet Looms
for Raiwind Division. It is repayable in twenty (20) equal quarterly installments, commencing
from October 03, 2003. It is secured by first legal mortgage ranking pari passu with the existing
first charge already created in favour of PICIC on the company's (Raiwind Division) present and
future immovable properties wherever situated including all buildings, fixed plants, machinery
and fixtures and personal guarantees of the sponsor directors. It carries mark up at rate of 9.5%
per annum.
36
Maple Leaf Cement Factory
Maple Limited
Leaf Cement Factory Limited
6.18 Pakistan Industrial Credit and Investment Corporation Limited (PICIC-2)
This represents a term finance facility of Rupees 300 million under State Bank of Pakistan (LTF-
EOP) scheme for a period of five years with a grace period of one year. The financing is for
import of 72 Picanol Omni Plus wide width Air Jet Looms, other textile machinery and power
generating sets. It is repayable in equal quarterly installments, commencing after expiry of grace
period. It carries mark up at the rate of 7% per annum.
6.19 NIB Bank Limited (NIB - 1)
This represents the term finance facility of Rupees 30 million, obtained for BMR and is allowed
for a period of eighteen months from the date of disbursement . The facility is repayable in six
equal quarterly installments commencing one quarter after the date of disbursement. It is
secured by first pari passu charge upto extent of Rs. 40 million on fixed assets (excluding land
and building) of the Company and personal guarantees of the sponsor directors. It carries mark
up at the rate of 3 months KIBOR plus 2.50% per annum with floor of 11% per annum.
6.20 NIB Bank Limited (NIB - 2)
This represents LTF-EOP facility obtained for import of textile machinery for a period of three
years including a grace period of six months. It is repayable in ten equal quarterly installments,
first payment becoming due at the end of 9th month from the date of disbursement . It is secured
by first exclusive hypothecation charge on the imported machinery and allied equipment,
including installation and local component costs and personal guarantees of the sponsor
directors. It carries mark up at fixed rate of 6 % per annum.
6.21 Kohinoor Sugar Mills Limited (KSML)
A civil suit has been filed by KSML for recovery of disputed liability which is being contested
by the Company.
6.22 Kohinoor Industries Limited (KIL)
The balance is an old one, un-reconciled, unconfirmed and disputed.
7. Term Finance Certificates (TFCs) - Secured

(Rupees in thousand)
Note
Term Finance Certificates 71,250 142,500
- 71,250
The company has issued privately placed term finance certificates comprising 57 sets of Rupees 5
million each (each set comprise 20 scrips of Rupees 0.250 million each) to raise Rupees 285 millions
to refinance existing borrowings availed by the company.
The term finance certificates are redeemable in twenty (20) quarterly installments commencing from
August 01, 2003. First four redemption installments comprise of token principal redemption of Re. 1
and profit on each TFC. The balance principal redemption is payable in sixteen (16) equal quarterly
installments alongwith profits. The rate of return on term finance certificates is to be determined at
seven days before commencement of each quarter for the tenor of the relevant quarter and it will be
6-months KIBOR plus 2% per annum.
37
The company may redeem the TFCs by way of exercise of the Call Option by giving written notice
and/or public notice to the TFCs holders and the trustee at least ninety (90) days prior to the option
date(s). The first Option date fall on the fourth redemption date and each subsequent redemption date
shall also be an Option date. The date of maturity of the TFCs is May 01, 2008.
These TFCs are secured by way of first pair passu charge on all present and future fixed assets of
the company amounting to 1.5 times of the outstanding coupon amount and personal guarantees of
sponsor directors. Maple Leaf Cement Factory
Maple Limited
Faysal Bank Limited has been appointed as trustee under the trust deed and is paid a fee at the rate
of 0.05% per annum of the outstanding coupon amount at the beginning of the year.
8. LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE
2007 2006
Minimum lease payments 366,081 266,354
Less: Un-amortized finance charges 58,545 41,290
Present value of minimum lease payments 307,536 225,064
227,643 151,387
8.1 The present value of minimum lease payments has been discounted at an implicit interest rate
ranges from 6.00% to 16.28% (2006: from 8.50% to 17.00%) per annum to arrive at their
present value.
The lease rentals are payable in monthly and quarterly installments. In case of any default an
additional charge at the rate of 0.1 percent per day shall be payable. Taxes, repairs, replacements
and insurance costs are to be borne by the company. The lease agreements carry renewal and
purchase option at the end of the lease term. There are no financial restrictions in lease
agreements. These are secured by deposit of Rupees 18.050 million (2006: Rupees 22.430
million) included in long term security deposits, demand promissory notes, personal guarantees
and pledge of sponsors' shares in public limited companies.
8.2 Minimum lease payments and present value of minimum lease payments are regrouped
as under:
30 June 2007 30 June 2006
Minimum lease Present value Minimum lease Present value
payments of minimum payments of minimum
lease payments lease payments
Due not later than one year 108,371 79,893 93,506 73,677
Due later than one year but
not later than five years 257,710 227,643 172,848 151,387
366,081 307,536 266,354 225,064
9. DEFERRED TAX LIABILITY
2007 2006
The liability for deferred taxation comprises timing differences relating to:
Taxable temporary difference
Accelerated tax depreciation allowance 240,443 237,013
Surplus on revaluation of investment 235,549 -
475,992 237,013
Deductible temporary differences
Tax losses carry forward 205,048 166,645
Provision for doubtful debts 132 1,477
Turn over tax available for carry forward - 15,142
205,180 183,264
270,812 53,749
38
Maple Limited
9.1 The movement in deferred tax assets and liabilities during the year without taking into consideration
the off setting balances within the same tax jurisdiction is as follows:
Deferred tax liability Deferred tax assets

Accelerated Surplus on Net liability
Provision for taxforavailable (asset)
tax revaluation of Total Tax losses doubtful debts carry Total
depreciation investment forward
Balance as at July 01, 2005 68,414 - 68,414 37,237 698 - 37,935 30,479
Charged to profit and loss account 168,599 - 168,599 129,408 779 15,142 145,329 23,270
Balance as at June 30, 2006 237,013 - 237,013 166,645 1,477 15,142 183,264 53,749
Charged to equity - 314,064 314,064 - - - - 314,064
Charged to profit and loss account 3,430 - 3,430 38,403 (1,345) (15,142) 21,916 (18,486)
Balance as at June 30, 2007 240,443 314,064 554,507 205,048 132 - 205,180 349,327
10. TRADE AND OTHER PAYABLES

2007 2006
Creditors 389,553 495,358

Accrued liabilities 57,283 50,351
Customers deposit -interest free repayable on demand 16,533 11,722
Workers' profit participation fund 10.1 1,223 6,654
Unclaimed dividend 2,682 2,697
Due to subsidiary undertaking (Maple Leaf Cement Factory Limited) - 106,519
Withholding tax payable 1,549 2,711
Others 6,177 159,978
475,000 835,990
10.1 Workers' profit participation fund

Balance at the beginning of the year 6,654 11,576
Allocation for the year 31 - 2,448
6,654 14,024
Interest on funds utilized in the Company's business 167 244
6,821 14,268
Less: Payments to the fund 5,598 7,614
1,223 6,654
10.1.1 The Company retains workers’ profit participation fund for its business operations till the date
of allocation to workers. Interest is paid at prescribed rate under the Companies Profit (Workers
Participation Act, 1968) on funds utilized by the Company till the date of allocation to workers.
39
11. ACCRUED MARK UP

Maple Limited
Leaf Cement Factory
2007Limited 2006
Long term financing - Secured 16,961 44,460

Term finance certificates 1,332 2,529
Short term borrowings 38,090 32,495
Finance leases 2,836 1,365
59,219 80,849
12. SHORT TERM BORROWINGS - Secured
From banking companies:

Running finances 12.1 1,495,505 1,131,398
Export refinances 12.2 1,280,000 1,105,436
2,775,505 2,236,834
12.1 The running finance facilities sanctioned by various banks aggregate to Rupees 4,603 million
(2006: Rupees 3,938 million). The rates of mark-up range from 6.00% to 12.92% (2006: from
4.53% to 13.00%). These arrangements are secured by pledge of raw material, charge on
current assets of the Company including hypothecation of work-in-process, stores and spares,
letters of credit, firm contracts, book debts and personal guarantees of the sponsor directors.
12.2 The export refinance facilities obtained from various banks aggregate to Rupees 1,340 million
8.40% to 9.00%). These arrangements are secured by way of charge on current assets of the
Company and personal guarantees of the sponsor directors.
13. CURRENT PORTION OF NON-CURRENT LIABILITIES

2007 2006
Long term financing - secured 6 770,182 556,996

Term finance certificates - secured 7 71,250 71,250
921,325 701,923
40
MapleLimited
14. CONTINGENCIES AND COMMITMENTS
14.1 Contingencies
Taxation
a) In framing the assessment for the assessment year 2002-03, the tax authorities has
assessed loss for the year at Rupees 16.486 million by charging to tax the dividend
income separately against the declared income of Rupees 5.101 million in addition to
disallowing profit and loss expenses previously accepted by them. The Company has
disputed the contention of the tax authorities for these demands and has filed appeal with
the Income Tax Appellate Tribunal against the order of the tax authorities. Pending the
outcome of the appeal no provision has been made in these financial statements for the
additional demand for the assessment year 2002-03, which on the basis adopted by the
authorities would amount to Rupees 2.541 million, since the Company has strong grounds
against the assessment framed by the tax authorities.
b) The Company and the tax authorities has filed appeals before different appellate authorities
regarding sales tax matters. Pending the outcome of appeals filed by the Company and
tax authorities, no provision has been made in these financial statements which on the
basis adopted by the authorities would amount to Rupees 33.473 million, since the
Company has strong grounds against the assessments framed by the tax authorities.
14.2 Commitments in respect of
a) Letters of credit for capital expenditure amount to Rupees 112.411 million (2006: Rupees
55.214 million).
b) Letters of credit other than for capital expenditure amount to Rupees 163.547 million
(2006: Rupees 233.386 million).
15. PROPERTY, PLANT AND EQUIPMENT

2007 2006
Operating fixed assets 15.1 3,651,456 3,472,564

Capital work in progress 15.2 319,565 88,695
3,971,021 3,561,259
41
42
15.1 OPERATING FIXED ASSETS

AS AT 30 JUNE 2006 MOVEMENT DURING THE YEAR AS AT 30 JUNE 2007
Description Accumulated Net Book Disposal Cost / Transfer Cost / Depreciation Accumulated Net Book Rate
Cost Additions Accumulated Accumulated Cost
Depreciation Value charge Depreciation Value
Depreciation Depreciation
.............................(R u p e e s i n t h o u s a n d )............................. %
Owned
Freehold land 120,862 - 120,862 - - 106,026 - 14,836 - 14,836 -
Office buildings 39,532 16,333 23,199 97 - 27,768 736 11,861 4,260 7,601 5
(12,809)
Factory buildings 492,171 253,090 239,081 130,609 - - 20,775 622,780 273,865 348,915 5
Other buildings 14,294 2,758 11,536 21,836 - - 1,172 36,130 3,930 32,200 5
Residential buildings 63,471 26,600 36,871 4,111 - - 2,445 67,582 29,045 38,537 5
School and hospital 2,294 717 1,577 200 - - 79 2,494 796 1,698 5
Plant and machinery 3,739,430 1,111,875 2,627,555 406,509 47,083 8,074 253,183 4,090,782 1,331,739 2,759,043 10
(28,337) (4,982)
Service and other equipment 29,671 17,885 11,786 188 25 - 1,159 29,834 19,023 10,811 10
(21)
Computer & IT installations 47,332 22,723 24,609 5,667 409 - 7,752 52,590 30,331 22,259 30
(144)
Furniture and fixture 53,828 25,806 28,022 5,132 - - 2,920 58,960 28,726 30,234 10
Office equipment 17,488 9,092 8,396 3,103 43 - 850 20,548 9,905 10,643 10
(37)
Vehicles 88,053 34,852 53,201 11,633 6,040 45 9,633 93,601 40,590 53,011 20
(3,882) (13)
4,708,426 1,521,731 3,186,695 589,085 53,600 141,913 300,704 5,101,998 1,772,210 3,329,788
(32,421) (17,804)
Leased
Plant and machinery 340,248 59,309 280,939 130,187 111,462 - 25,308 358,973 48,460 310,513 10
(36,157)
Vehicles 6,914 1,984 4,930 7,661 - (45) 1,468 14,620 3,465 11,155 20
13
347,162 61,293 285,869 137,848 111,462 (45) 26,776 373,593 51,925 321,668
(36,157) 13
30 June 2007 5,055,588 1,583,024 3,472,564 726,933 165,062 141,868 327,480 5,475,591 1,824,135 3,651,456
(68,578) (17,791)
15.1.1 Addittion to plant and machinery include mark up amounting to Rs. 11.688 million (2006: Rs. 11.524)
15.1.2 Deletion in leased assets represents the transfer to owned plant and machinery.
15.1.3 Depreciation charge for the year has been allocated as follows:
2007 2006
Cost of sales 28 303,502 230,266
Administrative expenses 30 23,978 23,212
327,480 253,478
15.1.4 OPERATING FIXED ASSETS
AS AT 01 JULY 2005 MOVEMENT DURING THE YEAR AS AT 30 JUNE 2006
Description Disposal Cost / Depreciation Rate
Accumulated Net Book Accumulated Net Book
Cost Additions Accumulated Cost
Depreciation
Owned
Freehold land 120,862 - 120,862 - - - 120,862 - 120,862 -
Office buildings 38,563 15,131 23,432 969 - 1,202 39,532 16,333 23,199 5
Factory buildings 439,599 234,398 205,201 52,572 - 18,692 492,171 253,090 239,081 10
Other buildings 9,567 2,202 7,365 4,727 - 556 14,294 2,758 11,536 5
Residential buildings 61,467 24,462 37,005 2,004 - 2,138 63,471 26,600 36,871 5
School and hospital 1,385 675 710 909 - 42 2,294 717 1,577 5
Plant and machinery 2,768,108 1,105,962 1,662,146 1,215,851 244,529 181,028 3,739,430 1,111,875 2,627,555 10
(175,115)
Service and other equipment 28,525 16,655 11,870 1,146 - 1,230 29,671 17,885 11,786 10
Computer and IT installations 38,701 15,329 23,372 8,631 - 7,394 47,332 22,723 24,609 30
Furniture and fixture 49,028 23,105 25,923 4,855 55 2,732 53,828 25,806 28,022 10
(31)
Office equipment 16,710 8,273 8,437 879 101 868 17,488 9,092 8,396 10
(49)
Vehicles 74,398 32,938 41,460 24,984 11,329 8,332 88,053 34,852 53,201 20
(6,418)
3,646,913 1,479,130 2,167,783 1,317,527 256,014 224,214 4,708,426 1,521,731 3,186,695

(181,613)
Leased
Plant and machinery 489,800 106,973 382,827 86,147 235,699 28,317 340,248 59,309 280,939 10
(75,981)
Vehicles 6,914 1,037 5,877 - - 947 6,914 1,984 4,930 20
496,714 108,010 388,704 86,147 235,699 29,264 347,162 61,293 285,869

(75,981)
30 June 2006 4,143,627 1,587,140 2,556,487 1,403,674 491,713 253,478 5,055,588 1,583,024 3,472,564
(257,594)
43
44
15.1.5 DETAIL OF DISPOSAL OF ASSETS

Description Qty Cost Accumulated Net Book Sale Proceed / Gain / (Loss) Mode of
Depreciation Value claim received Disposal Particulars of purchaser
.............................(R u p e e s i n t h o u s a n d ).............................
Compressor Air & Water Cool 1 1,029 701 328 686 358 Negotiation S.S.Q Textile Traders, Faisalabad
Carding Machine with canes 1 1,234 960 274 340 66 Negotiation Chawala Spinning Mills limited 26-K.M Shekupura Road FSD
Blow Room Machinery 1 788 160 628 600 (28) Negotiation Al-Barkat Textile, Lahore Road, Sheikhupura
Spindle with bolster 2450 1,348 1,274 74 44 (30) Negotiation Ghulam Sarwar, Gujarkhan
Steam Pressure reducing Valve 1 311 - 311 311 - Negotiation Return of Compressor
Scuture Machine 2 1,370 986 384 520 136 Negotiation Al-Barkat Enterprises, Sheikhupura
Shearing Machine Monfort 1 284 248 36 275 239 Negotiation Zohaib Traders, Karachi
Sunforising Machine 1 295 177 118 56 (62) Negotiation Abdullah Enterprises, Faisalabad
Roap Washing Type With s/s tank 1 253 102 151 458 307 Negotiation Mehrban Traders Summandri road Dar-ul-Islam Town Faisalabad
06 Combers, 01 Unilap 1 9,901 7,887 2,014 2,500 486 Negotiation Ghazi Fabrics, Lahore
Mitsubishi Generator Set 1 1,904 1,189 715 800 85 Negotiation Mr. Amir Bashir Khan
HFO Tank 1 7,160 866 6,294 6,294 - Transfer Faysal Bank Ltd.
Weigh bridge 1 765 592 173 142 (31) Negotiation Mohammad Rafique, Faisalabad
Savio Auto Winder 1 9,500 5,883 3,617 6,500 2,883 Negotiation M/s Khawaja Spinning Mills, Lahore
Scutcher Model 1990 1 1,370 1,270 100 452 352 Negotiation M/S Al-Barkat Ent.
Demni & Lighting Arrestor 2 343 116 227 262 35 Insurance claim EFU Insurance Company, 1st floor, Mak Plaza, 130 E-1,Gulberg-3
Honda Civic Ex RIY 2751 1 969 590 379 560 181 Negotiation Naveed Iqbal H No 13 A Shaigon Colony New Lalazar RWP
Baleno ABW-413 1 565 457 108 350 242 Negotiation Mr.Mohammad Shahid, Karachi
Tractor 1 621 287 334 541 207 Negotiation Dad Gul , Main Manga Raiwind Road, Kasur
Toyotta Corolla LZV 3899 1 1,067 305 762 825 63 Negotiation Kashif Manzoor, 141-A Lalazar Scheme Phase # 1 Lahore
Honda Civic RIY-502 1 924 673 251 605 354 Negotiation Mr. Shahid Muneer, Lahore
Suzuki Saloon RIW-4947 1 403 343 60 262 202 Negotiation Mr. Ehsan Ullah Khan, Rawalpindi
Suzuki Swift RIW 4825 1 393 333 60 300 240 Negotiation Bilal Ahmend S/o Abdul Aziz H . No 3 Meraj St No 4 Iehhra Lahore
Suzuki Swift RIV 1414 1 383 320 63 255 192 Negotiation Munir Ahmed Ward No 2-B H No 383/2 Ghandi Mandi Bahawal-ud- Din
Suzuki Swift RIW 4463 1 393 329 64 255 191 Negotiation Asif Mehmood H No C-672 St No 14 Lala Rukh Colony POF Wah Cantt
Other assets with book value
less than Rs. 50,000 - 527 390 137 385 248
2007 53,600 32,421 21,179 30,230 9,051
2006 256,014 181,613 74,401 81,840 7,439

Maple Limited

Maple Leaf
Limited
Cement Factory Limited
15.2 CAPITAL WORK IN PROGRESS

2007 2006
Civil works and buildings 77,227 24,015
Plant and machinery 242,338 64,680
Maple Leaf
Limited
319,565 88,695
16. INVESTMENT PROPERTY
The fair value of the investment properties having carrying value of Rupees 120,985 thousand has
been determined by an independent valuer Messrs Hasib Associates (Private) Limited at Rupees
1,384,577 thousand as at 28 December 2006 on the basis of their professional assessment of the
current prices in an active market for similar properties in the same location and condition. The
difference of Rupees 1,263,592 thousand between carrying amount and fair value of investment
property is shown as surplus on investment property on the face of the balance sheet in accordance
with the requirements of IAS-40 "Investment Property".
17. LONG TERM INVESTMENT

2007 2006
Investment in subsidiary - available for sale
Quoted
186,608,808 (2006: 149,287,047) ordinary shares of
Rupees 10 each fully paid
Equity held 50.13% (2006: 50.13%)
Fair value of investment at the beginning of the year 3,821,748 2,958,598
Add: Subscribed for 37,321,761 ordinary right shares

(2006 : Nil) @ Rupees 12.50 (2006 : Nil) per share. 466,522 -
4,288,270 2,958,598
Surplus on revaluation of investment 264,985 863,151
Fair value of investment at the end of the year 4,553,255 3,821,749
18. LONG TERM DEPOSITS
Security deposits 31,157 31,460

Less: current portion 23 3,022 13,896
28,135 17,564
19. STORES AND SPARES
Stores including in transit Rupees 11.977 million

(2006: Rupees 3.471 million) 216,047 345,681
Spares 68,181 157,189
284,228 502,870
45
Maple Limited
20. STOCK-IN-TRADE
2007 2006
Raw material including in transit Rupees 36.515 million

(2006: Rupees 218.738 million) Maple Leaf Cement Factory
Maple Leaf Cement Factory 715,410
Limited Limited 699,708
Work-in-process 127,828 103,365
Finished goods 911,859 804,722
1,755,097 1,607,795
21. TRADE DEBTS
Considered good 1,062,320 887,407

Considered doubtful 923 9,380
1,063,243 896,787
Less: Provision for doubtful debts 923 9,380
1,062,320 887,407
22. ADVANCES - considered good
Advances to :
- Executives 4,281 8,430
- Other Employees 2,029 2,742
- Suppliers 126,049 211,663
132,359 222,835
Letters of credit 5,417 3,077
137,776 225,912
23. SECURITY DEPOSITS AND SHORT TERM PREPAYMENTS
Current portion of security deposits 18 3,022 13,896

Prepayments 11,441 6,110
14,463 20,006
24. OTHER RECEIVABLES
Sales tax refundable 168,331 179,818

Custom duty receivable 16,079 16,079
Export rebate 30,296 27,051
Insurance claims 1,039 776
Due from subsidiary undertaking (Maple Leaf Cement Factory Ltd) 127 -
Research and development support 30.2 55,181 -
Others 14,329 5,714
285,382 229,438
46
25. SHORT TERM INVESTMENTS
2007 2006
Investment - available for sale
Maple Limited
Unquoted
Security General Insurance Company Limited 7,000 7,000

1,706,278 (2006 : 1,137,519) Ordinary shares of
Rupees 10 each fully paid.
Equity held 9.40% (2006 : 9.40%)
Chief executive officer - Ms. Nabiha Samad
Surplus on revaluation of investment 897,327 -
904,327 7,000
Break up value of Rupees 530 per share was calculated using assets based valuation technique on
the basis of market / financial value of assets as per unaudited accounts for the period ended 30 June
2007 less safety margin @ 20% (2006: Break up value of Rupees 30.35 per share as per unaudited
accounts for the period ended 30 June 2006).
Management intends to sell above investment as soon as it is practicable.
26. CASH AND BANK BALANCES

2007 2006
Cash in hand 1,374 3,149
Cash at bank:
- On current accounts 34,399 431,803
- On deposit accounts 27,958 1,859
62,357 433,662
63,731 436,811
The balances in deposit accounts carry interest ranging from 0.10% to 4.92% (2006: from 1.50% to
4.47%) per annum.
The balances in current and deposit accounts include US $ 167,296 (2006: US $ 46,145).
27. SALES
2007 2006
Export 4,228,388 3,694,497

Local 2,911,779 3,209,128
7,140,167 6,903,625
47
Maple Limited
28. COST OF SALES

2007 2006
Raw materials consumed 28.1 2,542,659 2,583,005

Salaries, wages and other benefits 456,105 354,674
Provident fund contributions Maple Leaf Cement Factory
Maple Leaf
Limited 11,907
Cement Factory Limited 9,921
Dyes and chemicals consumed 363,582 383,038
Processing charges 3,360 18,609
Stores and spares consumed 161,128 146,459
Packing materials 217,842 154,821
Fuel and power 717,659 734,574
Repair and maintenance 34,505 36,991
Insurance 12,211 10,377
Other factory overheads 29,120 37,803
Depreciation 15.1.3 303,502 230,266
4,853,580 4,700,538
Work-in-process
Opening stock 103,365 68,038
Closing stock (127,828) (103,365)
(24,463) (35,327)
Cost of goods manufactured 4,829,117 4,665,211
Finished goods
Closing stock (137,804) (174,437)
36,633 31,308
Cost of sales - own manufactured goods 4,865,750 4,696,519
Opening stock of purchased finished goods 630,285 296,469

Add: Finished goods purchased 1,372,661 1,519,115
2,002,946 1,815,584
Less: Closing stock of purchased finished goods 774,055 630,285
Cost of sales - purchased finished goods 1,228,891 1,185,299
6,094,641 5,881,818
28.1 Raw material consumed

Add: Purchase 2,740,584 2,521,542
3,221,554 3,063,975
Less: Closing stock 678,895 480,970
2,542,659 2,583,005
48
Maple Limited
29. SELLING AND DISTRIBUTION EXPENSES

2007 2006
Maple Leaf Cement Factory Note
Maple Limited
Leaf (Rupees
Cement Factory Limited in thousand)
Salaries, wages, allowances and other benefits 19,682 16,670

Provident fund contributions 769 614
Outward freight and handling 30,697 3,707
Clearing and forwarding 112,826 141,758
Traveling and conveyance 14,199 14,145
Insurance 507 1,260
Vehicles' running 4,054 3,832
Electricity, gas and water 342 401
Postage, telephone and telex 4,189 5,899
Legal and professional 172 139
Sales promotion and advertisement - 14,941
Commission to selling agents 178,759 180,634
Miscellaneous expenses 5,674 7,896
372,793 401,276
30. ADMINISTRATIVE EXPENSES
Provident fund contributions 1,392 1,315
Repairs and maintenance 5,956 5,960
Rent, rates and taxes 4,157 9,283
Insurance 1,392 1,516
Printing, stationery and periodicals 4,055 3,276
Electricity, gas and water 567 1,602
Legal and professional 3,688 1,835
Research and development 30.1 65 -
Security, gardening and sanitation 9,591 6,508
Depreciation 15.1.3 23,978 23,212
135,347 124,327
30.1 Research and development
Support on account of research and development 30.2 112,405 -
Less : Utilization
Product development 89,862 -
Professional consultancy 8,068 -
Participation in exhibition 14,540 -
112,470 -
65 -
30.2 The research and development support has been given by Ministry of Commerce, Government
of Pakistan vide SRO 803(1)/2006 dated 04 August 2006 in order to encourage and regulate
the research and development in textile sector.
49
Maple Limited
31. OTHER OPERATING EXPENSES

2007 2006
Auditors' remuneration 31.1 877 1,110
Donations 31.2 11,535 9,821
Workers' profit participation fundMaple Leaf Cement Factory
Maple Leaf
Limited
Cement Factory Limited-
10.1 2,448
12,412 13,379
31.1 Auditors' remuneration
Statutory Audit fee 375 300
Certification including half yearly review 395 250
Other consultancy services and out of pocket expenses 107 560
877 1,110
31.2 None of the directors and their spouses have any interest in the donees' fund.
32. OTHER OPERATING INCOME

2007 2006
Income from financial assets:
Exchange gain - 2,405
Return on bank deposits 1,047 234
1,047 2,639
Income from related parties:
Dividend income :
Income from non-financial assets:
Scrap sales 32,979 21,677
Gain on disposal of property, plant and equipment 9,051 7,439
Gain on disposal of investments - 308,464
Loss on sale of stores - (23,975)
Miscellaneous (924) 1,712
41,106 315,317
50,684 320,231
33. FINANCE COST
Mark-up/finance charges/ interest on:
Workers' profit participation fund 167 244
581,206 430,833
Bank charges and commission 19,081 17,239
Exchange loss 3,664 -
603,951 448,072
50
Maple Limited
34. PROVISION FOR TAXATION

2007 2006
Current year
Current 41,671 33,510
Deferred (18,486) 23,270
Maple Leaf
Limited
23,185 56,780
Prior year
Current (11,656) -
11,529 56,780
34.1 Tax charge reconciliation % %

Numerical reconciliation between the average
effective tax rate and the applicable tax rate:
Applicable tax rate as per Income Tax Ordinance, 2001 - 35.00
Tax effect of amounts that are:
Tax effect under presumptive tax regime and others - (25.56)
Deferred tax - 6.56
- (19.00)
Average effective tax rate charged to profit and loss account - 16.00
Numeric tax reconciliation is not given as the Company is liable for minimum tax
35. CASH GENERATED FROM OPERATIONS

2007 2006
Profit / (Loss) before taxation (28,293) 354,984
Adjustment for non-cash charges and other items:
Depreciation 327,480 253,478
Finance cost 603,951 448,072
Gain on sale of fixed assets (9,051) (7,439)
Gain on sale of investments - (308,464)
Dividend income (8,531) (2,275)
Return on bank deposits (1,047) (234)
Provision for WPPF - 2,448
Working capital changes 35.1 (421,382) (507,493)
463,127 233,077
35.1 Working capital changes (Increase)/ decrease in current assets:

Stores and spares 218,642 (39,169)
Stock-in-trade (147,302) (495,110)
Trade debts (174,913) (247,025)
Advances 88,136 (103,896)
Security deposits and short term prepayments 5,543 7,137
Other receivables (55,944) 57,468
(65,838) (820,595)
Increase/ (decrease) in current liabilities
Trade and other payables (355,544) 313,102
(421,382) (507,493)
51
36. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES

The aggregate amount charged in the financial statements for the year for remuneration including
certain benefits to the chief executive, directors and executives of the company is as follows:
Chief Executive Directors Executive

2007 2006 2007 2006 2007 2006
Number of persons 1 1 3 3 21 20
..............(R u p e e s i n t h o u s a n d )..............
Managerial remuneration 3,324 3,324 3,676 3,676 18,642 16,028

Contribution to provident fund 230 230 87 87 928 1,003
Housing and utilities - 276 504 608 4,978 5,245
Medical 276 - 770 666 1,156 693
Group insurance 138 138 52 52 11 9
Club subscription 103 51 - - - -
Others - - - - 3,715 4,029
4,071 4,019 5,089 5,089 29,430 27,007
The Chief Executive Officer and directors are provided with free transport, residential telephone facilities
for both business and personal use and free medical facilities. Chief Executive is also provided free
furnished accommodation.
Executives are provided with free use of company maintained vehicles in accordance with the Company
policy.
The aggregate amount charged in the financial statements in respect of directors' fee paid to 3 (2006:
3) directors was Rupees 28,500 (2006: Rupees 31,500).
37. TRANSACTIONS WITH RELATED PARTIES
The related parties comprise of subsidiary, associated companies, directors of the company, key
management personnel and staff retirement fund. Detail of transactions with related parties, other than
those which have been specifically disclosed elsewhere in these financial statements are as follows:
2007 2006
Associates
Dividend income - 2,275
Subsidiary
Purchase of goods and services 1,538 9,614
Sale of goods and services - 1,178
Post employment benefit plan
Contribution to provident fund 37.1 14,068 11,670
37.1 Contributions to the provident fund are in accordance with the terms of the entitlement of
employees
38. EARNING PER SHARE - BASIC AND DILUTED
2007 2006
Net profit / (loss) for the year Rupees in thousand (39,822) 298,204
Weighted average ordinary shares in issue Numbers 122,650,292 119,913,602
Basic earning per share Rupees (0.32) 2.49
No figure for diluted earnings per share has been presented as the company has not issued any
instrument carrying options which would have an impact on the basic earnings per share, when
exercised.
52
39. PLANT CAPACITY AND ACTUAL PRODUCTION
SPINNING:
- Rawalpindi Division (Numbers)
Spindles (average) installed / worked; 83,363 78,870
Kilograms in thousand)
100% Plant capacity converted into 20s count based on
3 shifts per day for 1,095 shifts (2006: 1,094 shifts) 35,380 33,901
Actual production converted into 20s count based on
- Gujar Khan Division (Numbers)
(Kilograms in thousand)
Actual production converted into 20s count based on 3 shifts
per day for 1,093 shifts (2006: 1,092 shifts) 26,028 23,680
WEAVING:
- Raiwind Division (Numbers)
Looms installed / worked 204 204
(Square meters in thousand)
100% Plant capacity at 60 picks based on 3 shifts per day
for 1,093 shifts (2006: 1,095 shifts) 84,875 84,875
Actual production converted to 60 picks based on 3 shifts
PROCESSING OF CLOTH (Meters in thousand)
Capacity at 3 shifts per day for 1,089 shifts (2006: 1,094 shifts) 50,310 50,150
Actual at 3 shifts per day for 1,089 shifts (2006: 1,094 shifts) 27,358 30,855
POWER PLANT: (Mega Watts)
- Rawalpindi
Annual rated capacity (based on 365 days) 149,270 102,667
Actual generation
- Main engines 43,784 65,454
- Gas engines 25,440 -
- Standby generators 1,180 1,180
- Raiwind
Annual rated capacity (based on 365 days) 54,312 -
Actual generation
- Gas engines 10,565 -
- Standby generators 23 -
REASONS FOR LOW PRODUCTION
- Due to stoppage for normal maintenance, doffing, change of spin plans and cloth quality, interruption
in gas supply.
- Cloth processing units working capacity was limited to actual export / local orders in hand.
- The generation of power was limited to actual demand.
53

40. FINANCIAL INSTRUMENTS
2007 2006
Exposed to Interest / Exposed to Interest/ Exposed to Interest / Exposed to Interest/
Markup Rate Price Risk Markup Rate Cash Flow Risk Not exposed Markup Rate Price Risk Markup Rate Cash Flow Risk Not exposed
More than More than to Interest/ More than More than to Interest/
Total Markup Total Markup
Within one year Within one year Within one year Within one year
one Year and Upto one Year and Upto Rate Risk one Year and Upto one Year and Upto Rate Risk
Five Years Five Years Five Years Five Years
.................................(R u p e e s i n t h o u s a n d )...............................
Financial Liabilities
Long term financing 3,230,820 - - 770,182 2,453,161 7,477 3,057,595 - - 556,996 2,493,122 7,477
Term finance certificates 71,250 - - 71,250 - - 142,500 - - 71,250 71,250 -
Liabilities against Leased assets 307,536 79,893 227,643 - - - 225,064 73,677 151,387 - - -
Trade and other payables 472,228 - - - - 472,228 826,625 - - - - 826,625
Accrued mark up 59,219 - - - - 59,219 80,849 - - - - 80,849
Short term borrowings 2,775,505 2,775,505 - - - - 2,236,834 2,236,834 - - - -

6,916,558 2,855,398 227,643 841,432 2,453,161 538,924 6,569,467 2,310,511 151,387 628,246 2,564,372 914,951
Financial Assets
Long term Investment 4,553,255 - - - - 4,553,255 3,821,749 - - - - 3,821,749
Long term deposits 31,157 - - - - 31,157 31,460 - - - - 31,460
Trade debts 1,062,320 - - - - 1,062,320 887,407 - - - - 887,407
Advances 6,310 - - - - 6,310 11,172 - - - - 11,172
Accrued interest 386 - - - - 386 581 - - - - 581
Other receivables 70,676 - - - - 70,676 6,490 - - - - 6,490
Short term investments 904,327 - - - - 904,327 7,000 - - - - 7,000
Cash and bank balances 63,731 27,958 - - - 35,773 436,811 1,859 - - - 434,952
6,692,162 27,958 - - - 6,664,204 5,202,670 1,859 - - - 5,200,811
Total interest/mark-up rate sensitivity gap (224,396) (2,827,440) (227,643) (841,432) (2,453,161) 6,125,280 (1,366,797) (2,308,652) (151,387) (628,246) (2,564,372) 4,285,860
Unrecognized financial instruments

Commitments for Capital expenditure 112,411 - - - - 112,411 55,214 - - - - 55,214
Letter of credit other than for capital expenditure 163,547 - - - - 163,547 233,386 - - - - 233,386

40.1 Effective Interest / Mark up rates
The Company's exposure to interest / mark up effective rates on its financial assets and financial
liabilities are summarized as follows:
2007 2006
Percentage
Financial Assets
Profit on bank deposits 00.10 to 04.92 01.50 to 04.47
Long term loans 06.00 to 13.40 9.46 to 12.75
Term finance certificates 11.54 to 12.56 9.86 to 11.54
Liabilities against assets subject to finance leases 06.00 to 16.28 8.50 to 17.00
Short term finances 06.12 to 12.92 4.53 to 13.00
40.2 Financial risk management, objectives and policies
The Company finances its operations through equity, borrowings and management of working
capital with a view to maintaining an appropriate mix between various sources of finance to
minimize risk. Taken as a whole, the Company's risk arising from financial instruments is limited
as there is no significant exposure to price and cash flow risk in respect of such instruments.
a) Foreign exchange risk
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes
in foreign exchange rates. Foreign currency risk arises mainly where receivables and
payables exist due to transactions with foreign undertakings. The company uses forward
foreign exchange contracts to hedge its foreign currency risk, when considered appropriate.
b) Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to
changes in market interest rates. The Company has long term Rupee based loans at variable
and fixed rates. Variable rate Rupee loans risks are minimised by instituting State Bank of
Pakistan discount rate along with caps and floors. This protects the Company against any
adverse movement in market interest rates.
c) Credit risk
Credit risk represents the risk of a loss if the counter parties fail to perform as contracted.
The company's credit risk is primarily attributable to its receivables and its bank balances.
The credit risk on liquid funds is limited because the counter parties are bank with reasonably
high credit rating. Out of total financial assets of Rupees 6,692.162 million (2006: Rupees
5,202.670 million), the financial assets which are subject to credit risk amounted to Rupees
239.313 million (2006: Rupees 211.038 million). The Company believes that it is not
exposed to major concentration of credit risk. To manage exposure of credit risk, the
Company applies credit limits to its customers. Exports are mainly against banks' letter
of credit.
d) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulties in raising funds to meet
commitments associated with financial instruments. The Company follows an effective
cash management and planning policy to ensure availability of funds and to take appropriate
measures for new requirements.
55

40.3 Fair value of financial assets and liabilities
The carrying values of all financial assets and liabilities reflected in the financial statements
approximate their fair values.
41. NON ADJUSTING EVENTS AFTER BALANCE SHEET DATE
The Board of Directors in their meeting held on 29 September 2007 have proposed Nil% bonus shares
amounting to Rupees Nil million(2006 : 10% : Rupees 105.837 million) and transfer of dividend
equalisation reserve to unappropriated profit for approval of the members at the annual general meeting
to be held on 29 October 2007. The financial statements for the year ended 30 June 2007 do not
include the effect of transfer of dividend equalisation reserve to unappropriated profit, which will be
accounted for in the financial statements for the year ending 30 June 2008.
42. DATE OF AUTHORIZATION FOR ISSUE
These financial statements were authorised for issue on 29 September 2007 by the Board of Directors
of the Company.
43. GENERAL
43.1 No significant reclassification / rearrangement of comparative figures has been made.
43.2 Figures have been rounded off to the nearest thousand of rupees unless stated otherwise.
56
KEY OPERATING AND FINANCIAL DATA
SIX YEARS SUMMARY
2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002
9-Months
Net sale (Rs. 000) 7,140,167 6,903,625 4,695,280 5,537,755 5,180,101 4,447,547
Profitability (Rs. 000)

Gross Profit 1,045,526 1,021,807 669,444 873,030 826,311 622,960
Operating profit 575,658 803,056 320,804 597,039 411,166 234,606
Profit / (Loss) before tax (28,293) 354,984 147,598 444,793 167,017 55,416
Provision for income tax 11,529 56,780 59,071 81,626 11,765 35,383
Profit / (Loss) after tax (39,822) 298,204 88,527 363,167 155,252 20,033
Financial Position (Rs. 000)

Tangible fixed assets-net 3,971,021 3,561,259 2,666,186 2,077,025 2,036,198 1,615,053
Investment & Other assets 5,965,967 3,839,313 2,979,365 3,311,615 996,869 977,844
9,936,988 7,400,572 5,645,551 5,388,640 3,033,067 2,592,897
Current assets 4,547,065 3,939,417 3,170,105 3,169,575 2,563,232 2,121,847

Current liabilities 4,231,049 3,855,596 3,106,544 2,780,693 2,511,289 2,110,963
Net working capital 316,016 83,821 63,561 388,882 51,943 10,884

Capital employed 10,253,004 7,484,393 5,709,112 5,777,522 3,085,010 2,603,781
Less: Redeemable Capital,
long term loan
& other liabilities 2,959,093 2,776,985 1,910,160 1,060,387 1,246,981 921,004
Share holders Equity 7,293,911 4,707,408 3,798,952 4,717,135 1,838,029 1,682,777
Represented By:
Share capital 1,455,262 1,058,374 962,158 801,798 801,798 801,798
Reserves & un-app. Profit 4,575,057 3,649,034 2,836,794 3,915,337 1,036,231 880,979
Surplus on revaluation of
investment property 1,263,592 - - - - -
7,239,911 4,707,408 3,798,952 4,717,135 1,838,029 1,682,777
Ratios:
Gross Profit to sales (%age) 14.64 14.80 14.26 15.77 15.95 14.01
Net Profit to sales (%age) - 4.32 1.89 6.56 3.00 0.45
Debt : equity ratio 27 : 73 37 : 63 33 : 67 18 : 82 41 : 59 35 : 65
Current ratio 1.07 1.02 1.02 1.14 1.02 1.01
Breakup value per share
of Rs.10 each 50.12 44.48 39.48 58.83 22.92 20.99
Quantitative Data
Yarn (Kgs "000") :
Production (cont. into 20s)
KTM Division 33,388 31,223 22,675 29,601 29,227 28,545
KGM Division 26,028 23,680 15,026 19,321 17,668 16,081
59,416 54,903 37,701 48,922 46,895 44,626

Sales/Tran.for wvg.(actual count)
KTM Division 6,788 7,595 5,461 7,784 8,149 8,982
KGM Division 3,862 3,639 2,192 2,575 2,296 2,071
10,650 11,234 7,653 10,359 10,445 11,053

Cloth (Linear meters "000"):
Processing (Rawalpindi Division)
Production 27,358 30,855 17,623 22,003 25,069 20,835
Sales 26,768 21,860 16,991 21,443 24,349 20,375
Weaving (Raiwind Division)

Production 20,806 20,090 16,409 21,771 19,578 13,510
Sales 21,094 20,942 16,267 20,791 21,899 17,541
57
PATTERN OF SHAREHOLDING
1. Incorporation Number 0002805
2. Name of Company Kohinoor Textile Mills Limited
3. Pattern of holding of shares held by the shareholders as at 30.06.2007
4.
Size of Holding
No. of Total
From To
Shareholders shares held
2,721 1 100 77,015
1,176 101 500 337,585
442 501 1000 321,784
766 1001 5000 1,958,703
131 5001 10000 958,226
52 10001 15000 644,325
29 15001 20000 506,539
29 20001 25000 666,969
22 25001 30000 600,336
10 30001 35000 321,001
12 35001 40000 445,577
6 40001 45000 253,206
6 45001 50000 291,638
3 50001 55000 157,281
3 55001 60000 170,818
5 60001 65000 307,194
2 65001 70000 137,155
2 70001 75000 146,637
4 75001 80000 310,210
1 80001 85000 80,090
3 90001 95000 278,061
3 95001 100000 296,078
3 100001 105000 308,353
3 105001 110000 327,085
1 115001 120000 118,375
1 120001 125000 125,000
3 125001 130000 377,962
1 140001 145000 145,000
2 145001 150000 295,000
1 150001 155000 153,835
1 160001 165000 165,000
1 165001 170000 169,838
1 175001 180000 180,000
1 190001 195000 194,700
3 195001 200000 600,000
2 200001 205000 403,890
2 205001 210000 417,154
1 220001 225000 221,500
1 225001 230000 226,875
1 230001 235000 231,817
1 250001 255000 251,293
1 255001 260000 257,500
1 260001 265000 260,342
3 275001 280000 829,850
2 300001 305000 604,637
1 305001 310000 306,900
1 315001 320000 315,847
58

Size of Holding
No. of Total
From To
Shareholders shares held
1 335001 340000 335,723
1 350001 355000 353,419
1 355001 360000 359,500
2 400001 405000 808,000
1 450001 455000 450,216
1 480001 485000 484,937
1 495001 500000 500,000
1 505001 510000 506,562
1 635001 640000 635,250
1 650001 655000 652,190
1 715001 720000 718,437
1 755001 760000 758,000
1 780001 785000 783,625
1 795001 800000 800,000
1 810001 815000 811,200
1 840001 845000 844,768
1 1020001 1025000 1,024,416
1 1160001 1165000 1,164,625
1 1250001 1255000 1,251,500
1 1280001 1285000 1,283,007
1 1570001 1575000 1,570,176
1 2095001 2100000 2,097,562
1 2580001 2585000 2,583,652
1 2640001 2645000 2,640,371
1 3230001 3235000 3,232,811
1 3330001 3335000 3,330,064
1 3475001 3480000 3,477,237
1 3780001 3785000 3,782,000
1 8085001 8090000 8,088,866
1 8160001 8165000 8,161,751
1 10040001 10045000 10,040,331
1 10825001 10830000 10,827,332
1 11490001 11495000 11,492,684
1 20605001 20610000 20,605,888
1 22315001 22320000 22,315,935
5,503 TOTAL 145,526,216
Note : The Slabs not applicable above have not been shown.
5 Categories of Shareholders
5.1 Directors, CEO, & their Spouse and Minor Children
No. of Shares Percentage
Shareholders Held of Capital
Mr. Tariq Sayeed Saigol - Chairman/Director 1 10,040,331 6.8993
Mr. Sayeed Tariq Saigol - Director 1 315,847 0.2170
Mr. Waleed Tariq Saigol - Director 1 20,937 0.0144
Mr. Usman Said - Director 1 4,282 0.0029
Mr. Zamiruddin Azar - Director 1 5,930 0.0041
Mr. S.M.Imran - Director 1 3,437 0.0024
Mr. Abdul Hai Mehmood Bhaimia - Director 1 23,643 0.0163
Mrs. Shehla Tariq Saigol 1 450,216 0.3094
8 21,691,955 14.9059
59
No. of Shares Percentage

Shareholders Held of Capital
5.2. Associated Companies, Undertakings
and Related Parties
M/s. Zimpex (Private)Maple

Limited
Leaf Cement
Maple
Factory
LeafLimited
Cement Factory
Maple 1
Limited
Leaf Cement 22,510,635
Factory Limited 15.4684
5.3 NIT and ICP
M/s. Investment Corporation of Pakistan 1 16,573 0.0114

M/s. National Bank of Pakistan, Trustee Deptt. 1 6,569,660 4.5144
2 6,586,233 4.5258
5.4 Banks, Development Financial Institutions,

Non-Banking Financial Institutions 35 10,428,444 7.1660
5.5 Insurance Companies 8 1,174,460 0.8071
5.6 Modarabas and Mutual Funds 11 3,285,023 2.2573
5.7 Shareholders holding Ten Percent or

more voting interest in the Company
refer 5.2 & 5.8c
5.8 General Public
a. Local Individuals 5,297 39,462,822 27.1173

b. Joint Stock Companies 116 19,335,976 13.2869
c. Foreign Investor (s) 9 20,929,840 14.3822
5.9 Others
M/s. The Okhai Memon Madressah Association 1 1 0.0000

M/s. Artal Restaurant Int Ltd Emp PF 1 6,655 0.0046
M/s. Fikree Development Corp. Ltd. 1 2,794 0.0019
M/s. Hussain Trustees Limited 1 260 0.0002
M/s. Manag Commtt of Tameer-e-Millat Found 1 432 0.0003
M/s. Securities & Exchange Commission of Pakistan 1 1 0.0000
M/s. The Deputy Administrator Abondoned Properties 1 3,045 0.0021
M/s. The Ida Rieu Poor Welfare Association 1 354 0.0003
M/s. The Karachi Stock Exc (G) Ltd-Future Cont. 1 61,425 0.0422
M/s. Trustees Al-Abbas Sugar Mills Ltd Emp. GF 1 9,075 0.0062
M/s. Trustees Artal Restaurants Intl Emp P.F 1 2,420 0.0017
M/s. Trustees- Ecpl Mpt Employees Defined Contribution 1 16,875 0.0116
M/s. Trustees Moosa Lawai Foundation 1 16,751 0.0115
M/s. United Executers & Trustee Company Limited 1 144 0.0001
M/s. University of Sindh 1 596 0.0004
15 120,828 0.0831
Grand Total 5,503 145,526,216 100.0000
60
Consolidated Financial Statements of
Kohinoor Textile Mills Limited
61
AUDITORS’ REPORT TO THE MEMBERS
We have audited the annexed consolidated financial statements comprising the consolidated balance sheet
of KOHINOOR TEXTILE MILLS LIMITED and its subsidiary company as at 30 June 2007 and the related
consolidated profit and loss account, consolidated cash flow statement and consolidated statement of
changes in equity together with the notes forming part thereof, for the year then ended. We have also
expressed a separate opinion on the financial statements of KOHINOOR TEXTILE MILLS LIMITED. The
financial statements of Maple Leaf Cement Factory Limited have been audited by another firm of Chartered
Accountants, whose report has been furnished to us and our opinion in so far as it relates to the amounts
included in respect of the subsidiary company, is based solely on the report of such other auditor. These
financial statements are the responsibility of the holding company’s management. Our responsibility is to
express an opinion on these financial statements based on our audit.
Our audit was conducted in accordance with International Standards on Auditing and accordingly included
such tests of accounting records and such other auditing procedures, as we considered necessary in the
circumstances.
In our opinion, the consolidated financial statements present fairly the financial position of KOHINOOR
TEXTILE MILLS LIMITED and its subsidiary company as at 30 June 2007 and the results of their operations
for the year then ended.

29 September 2007 Chartered Accountants
63

CONSOLIDATED BALANCE SHEET

2007 2006
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized share capital
120,735,325 ( 2006: 120,735,325)
ordinary shares of Rupees 10 each 1,207,353 1,207,353
30,000,000 ( 2006: 30,000,000) preference
shares of Rupees 10 each 300,000 300,000
1,507,353 1,507,353
Issued, subscribed and paid up share capital 4 1,455,262 1,058,374
Reserves 5 4,263,583 2,976,797
Shareholders' equity 5,718,845 4,035,171
Minority Interest 6 4,804,188 3,959,625
Total equity 10,523,033 7,994,796
Surplus on revaluation of investment property 21 1,263,592 -
NON-CURRENT LIABILITIES
Long term financing 7 11,287,295 10,369,547
Term finance cer tificates 8 - 71,250
Lease finance advances 10 679,676 74,146
Long term deposits 11 2,702 2,977
Employees benefits 12 13,192 12,290
Deferred tax liability 13 1,167,995 929,358
13,646,543 11,623,181
CURRENT LIABILITIES
Trade and other payables 14 1,195,219 1,433,403
Accrued mark-up 15 437,894 359,961
Shor t term borrowings 16 3,573,090 3,183,994
Taxation 17 - 10,231
Current por tion of non-current liabilities 18 2,727,702 1,286,584
7,933,905 6,274,173
CONTINGENCIES AND COMMITMENTS 19
33,367,073 25,892,150
Chief Executive
64
Maple
Maple Leaf Cement Leaf Limited
Factory Cement Factory Limited
AS AT 30 JUNE 2007
2007 2006
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 20 23,301,887 19,649,764

Investment property 21 1,384,577 -
Intangible assets 22 4,578 -
Long term investments 23 - 17,395
Long term loans to employees 24 6,373 7,127
Long term deposits and prepayments 25 71,335 33,487
Goodwill 26 - (243,450)
24,768,750 19,464,323
CURRENT ASSETS
Stores, Spares and loose Tools 27 2,298,808 2,350,796
Stock -in- trade 28 2,124,806 1,808,741
Trade debts 29 1,256,334 1,050,866
Loans and advances 30 224,092 417,787
Fair value derivative financial instruments 5 242,226 -
Due from gratuity fund trust 43 8,539 -
Security deposits and short term prepayments 31 29,836 27,320
Accrued Interest 788 1,140
Other receivables 32 323,423 226,428
Short term investments 33 1,848,996 7,000
Taxation recoverable 17 53,385 -
Cash and bank balances 34 187,090 537,749
8,598,323 6,427,827
33,367,073 25,892,150
Director
65

CONSOLIDATED PROFIT AND LOSS ACCOUNT

2007 2006
SALES 35 10,922,951 12,683,829
COST OF SALES 36 9,494,291 9,433,416
GROSS PROFIT 1,428,660 3,250,413
SELLING AND DISTRIBUTION EXPENSES 37 515,055 502,263

ADMINISTRATIVE EXPENSES 38 202,038 184,291
OTHER OPERATING EXPENSES 39 31,383 131,913
748,476 818,467
PROFIT FROM OPERATIONS 680,184 2,431,946

OTHER OPERATING INCOME 40 93,908 395,592
774,092 2,827,538
FINANCE COST 41 942,404 789,050
PROFIT / (LOSS) BEFORE TAXATION (168,312) 2,038,488

PROVISION FOR TAXATION 42 (170,537) 632,354
PROFIT AFTER TAXATION 2,225 1,406,134

LESS: MINORITY INTEREST
Dividend on preference shares 52,794 52,794
Share in profit for the year (5,360) 501,933
47,434 554,727
PROFIT / (LOSS) AFTER TAXATION AND MINORITY INTEREST (45,209) 851,407
EARNINGS PER SHARE - RUPEES 47 0.02 11.73
66

CONSOLIDATED CASH FLOW STATEMENT

2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operations 44 985,480 1,972,601
Finance cost paid (864,471) (510,721)
Vacation benefits paid (4,037) (1,700)
WPPF paid (91,474) (63,698)
Taxes paid (84,154) (42,911)
Net cash flows from / (used) in operating activities (58,656) 1,353,571
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure on proper ty, plant and equipment (4,409,780) (9,124,939)
Long term deposits (38,123) (6,578)
Long term loans to employees 841 (1,559)
Purchase of right shares (200,000) -
Return on bank deposits 2,693 9,927
Proceeds from sale of proper ty, plant and equipment 38,688 82,889
Proceeds from sale of investments - 403,795
Dividend received 14,625 3,900
Net cash used in investing activities (4,591,056) (8,632,565)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from:
Long term financing - secured 3,350,315 7,627,455
Lease finances advance 870,721 74,146
Shor t term borrowing 389,096 478,996
Right issue of ordinary shares 898,158 -
Repayment of:
Long term financing - secured (965,392) (595,503)
Finance leases (78,089) (119,900)
Term finance cer tificates (112,900) (154,550)
Dividend paid (52,856) (12,043)
Net cash from financing activities 4,299,053 7,298,601
Net increase / (decrease) in cash and cash equivalents (350,659) 19,607
Cash and cash equivalents at the beginning of the year 537,749 518,142
Cash and cash equivalents at the end of the year 34 187,090 537,749
67

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Share holders’ Equity
Reserves
Capital Reserve Revenue Reserves Total
Share Minority
Total Total Equity
Capital Surplus on Hedging Reserve Dividend Un- Intrest
Capital Share General Reserves
Reserve premium revaluation reserves for Bonus Sub Total Reserve Equalization appropriated Sub Total
of investment Shares Reserve Profit
.......................(R u p e e s i n t h o u s a n d ) . . . . . . . . . . . . ... . . . . . . . .
Balance as at 30 June 2005 962,158 18,901 151,855 257,694 - - 428,450 1,090,491 9,509 944,637 2,044,637 2,473,087 3,435,245 3,415,190 6,850,435
Transfer to general reserves - - - - - - - 100,000 - (100,000) - - - - -
Bonus shares issued 96,216 - (96,216) - - - (96,216) - - - - (96,216) - - -
Revaluation of investment to fair value - - - 1,418 - - 1,418 - - - - 1,418 1,418 1,411 2,829
Adjustment of fair value on disposal of investment - - - (252,899) - - (252,899) - - - - (252,899) (252,899) - (252,899)
Net profit for the year - - - - - - - - - 851,407 851,407 851,407 851,407 554,727 1,406,134
Dividend paid to minority share holders - - - - - - - - - - - - - (11,703) (11,703)
Balance as at 30 June 2006 1,058,374 18,901 55,639 6,213 - - 80,753 1,190,491 9,509 1,696,044 2,896,044 2,976,797 4,035,171 3,959,625 7,994,796
Adoption of IFRS-3 "Business Combinations" (Note:3.11) - - - - - - - - - 243,450 243,450 243,450 243,450 - 243,450
Transfer to general reserves - - - - - - - 300,000 - (300,000) - - - - -
Reserves for bonus shares - (18,901) (55,639) - - 105,837 31,297 - - (31,297) (31,297) - - - -
Bonus shares issued 105,837 - - - - (105,837) (105,837) - - - - (105,837) - - -
Right shares issued at premium 291,051 - 144,919 - - - 144,919 - - - - 144,919 435,970 464,138 900,108
Write-off of expenses incurred on issue of right share - - - - - - - - - (976) (976) (976) (976) (972) (1,948)
Revaluation of investment to fair value - - - 929,016 - - 929,016 - - - - 929,016 929,016 265,873 1,194,889
Net loss for the year - - - - - - - - - (45,209) (45,209) (45,209) (45,209) 47,434 2,225
Dividend paid to minority share holders - - - - - - - - - - - - - (52,713) (52,713)
Gain arising on derivative crosscurrency intrest rate
swap agreement (Note-5.2) - - - - 121,423 - 121,423 - - - - 121,423 121,423 120,803 242,226
Balance as at 30 June 2007 1,455,262 - 144,919 935,229 121,423 - 1,201,571 1,490,491 9,509 1,562,012 3,062,012 4,263,583 5,718,845 4,804,188 10,523,033

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. THE GROUP AND ITS OPERATIONS
Holding Company
Kohinoor Textile Mills Limited ("the Company") is a public limited company incorporated in Pakistan
under the Companies Act,1913 (now Companies Ordinance, 1984) and listed on the Karachi, Lahore
and Islamabad Stock Exchanges. The registered office of the Company is situated at 42-Lawrence
Road, Lahore. The Company holds 50.13% shares of the subsidiary company. The principal activity
of the Company is manufacturing of yarn and cloth, processing and stitching the cloth and trade of
textile products.
Subsidiary Company
Maple Leaf Cement Factory Limited ("the Subsidiary") was incorporated in Pakistan on 13 April, 1960
under the Companies Act, 1913 (now the Companies Ordinance, 1984) as a public company limited
by shares and was listed on stock exchanges in Pakistan on 17 August, 1994. The registered office
of the Company is situated at 42-Lawrance Road, Lahore. The Subsidiary company is engaged in
production and sale of cement.
2. STATEMENT OF COMPLIANCE
2.1 These financial statements have been prepared in accordance with approved accounting
standards as applicable in Pakistan and the requirements of the Companies Ordinance, 1984.
Approved accounting standards comprise of such International Accounting Standards (IAS)
as notified under the provisions of the Companies Ordinance, 1984. Wherever, the requirements
of the Companies Ordinance, 1984 or directives issued by the Securities and Exchange
Commission of Pakistan (SECP) differ with the requirements of these standards, the requirements
of Companies Ordinance, 1984 or the requirements of the said directives take precedence.
2.2 Standards, interpretations and amendments to published approved accounting standards

that are not yet effective
The following standards, amendments and interpretations of approved accounting standards

effective for annual periods beginning on or after 01 July 2007 relevant to the Group' operations
are not expected to have significant impact on the Group’s financial statements and may only
result in certain increased disclosures:
a) IAS-1 Presentation of Financial Effective from 01 January 2007

Statements - amendments
relating to capital disclosures
b) IAS-23 Borrowing Costs Effective in case of borrowing costs

relating to qualifying asset for which the
commencement date for capitalisation
is on or after 01 January 2009
69
c) IFRS-3 Business Combinations Effective for annual periods beginning

on or after 01 January 2007
d) IFRS-5 Non current assets held for sale Effective from 01 January 2007
and discontinued operations
e) IFRS-7 Financial Instruments: Disclosures Effective from 01 January 2007
f) IFRIC-10 Interim Financial Reporting and Effective for annual periods beginning
impairment on or after 01 November 2006
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 Basis of Preparation
These financial statements have been prepared under the historical cost convention, except for:
- modification by revaluation of investment property as stated in Note: 3.9;

- modification of foreign currency translation adjustments in Note : 3.18;
- recognition of employee retirement benefits at present value;
- measurement at fair value of certain financial assets; and
- recognition of derivative financial instruments at fair value.
3.2 Critical accounting estimates and judgments
The preparation of financial statements in conformity with the approved accounting standards
require the use of certain critical accounting estimates. It also requires the management to
exercise its judgment in the process of applying the Group's accounting policies. Estimates and
judgments are continually evaluated and are based on historical experience, including expectation
of future events that are believed to be reasonable under the circumstances. The areas where
various assumptions and estimates are significant to the Group's financial statements or where
judgments were exercised in application of accounting policies are as follows:
3.2.1 Useful lives, patterns of economic benefits and impairments
Estimates with respect to residual values, depreciable lives and pattern of flow of economic
benefits are based on the analysis of the management of the Group. Further, the Group reviews
the value of assets for possible impairments on an annual basis. Any change in the estimates
in the future might affect the carrying amount of respective item of property, plant and equipment,
with a corresponding effect on the depreciation charge and impairment.
3.2.2 Financial instruments
The fair value of financial instruments that are not traded in an active market is determined by
using valuation techniques based on assumptions that are dependent on market conditions
existing at balance sheet date.
3.2.3 Taxation
In making the estimates for income tax currently payable by the Group, the management takes
into account the current income tax law and the decisions of appellate authorities on certain
issues in the past.
70
3.3 Employees benefits
Holding Company
The Company operates an approved defined contribution provident fund for all its employees.
Equal monthly contributions are made both by the Company and employees at the rate of 8.33
percent of basic salary and cost of living allowance to the fund.
Subsidiary Company
(a) Defined contribution plan
The Subsidiary operates a defined contributory approved provident fund for all its
employees. Equal monthly contributions are made both by the Subsidiary and employees
at the rate of 10% of the basic salary to the fund.
(b) Defined benefit plan
The Subsidiary also maintains an approved gratuity fund under which the gratuity is
payable on cessation of employment, subject to a minimum qualifying period of service.
The contributions are made to the fund in accordance with the actuary's recommendations
based on the actuarial valuation of the fund using projected unit credit method. Actuarial
gains / losses are recognised in accordance within the limits set-out by IAS 19 "Employees
Benefits" Note : (43).
(c) Liability for employees' compensated absences
The Subsidiary accounts for the liability in respect of employees' compensated absences
in the year in which these are earned. Provision to cover the obligations is made using
the current salary level of employees.
3.4 Taxation
Current
The Group falls in the ambit of presumptive tax regime regarding export sales under section
154 of the Income Tax Ordinance, 2001. Provision for income tax is made in the financial
statements accordingly. However, provision for tax on local sales and other income is based
on taxable income at the prevailing current rates after considering the rebates and tax credits
available, if any, or one-half percent of turn over, which ever is higher.
Deferred
Deferred tax is accounted for using the balance sheet liability method in respect of all temporary
timing differences arising from difference between the carrying amount of the assets and
liabilities in the financial statements and corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are recognized for all taxable temporary differences and
deferred tax assets are recognized for all deductible temporary differences to the extent that it
is probable that taxable profit will be available against which the deductible temporary differences,
unused tax losses and tax credits can be utilized.
71
Deferred tax is calculated at the rates that are expected to apply to the period when the
differences reverse, based on tax rates that have been enacted or substantively enacted by the
balance sheet date. Deferred tax is charged or credited in the income statement, except where
deferred tax arises on the items credited or charged to equity in which case it is included in
equity.
3.5 Trade and other payables
Liabilities for trade and other amounts payable are initially recognized at fair value which is
normally the transaction cost.
3.6 Provisions
Provisions are recognized when the Group has a legal or constructive obligation as a result of
past event, if it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate of the amount can be made. Provisions
are reviewed at each balance sheet date and are adjusted to reflect the current best estimates.
3.7 Finance leases
Leases where the Group has substantially all the risks and rewards of ownership are classified
as finance leases. Assets subject to finance lease are stated at the lower of present value of
minimum lease payments under the lease agreements and the fair value of the assets. The
related rental obligations, net of finance charges, are included in liabilities against assets subject
to finance lease.
Each lease payment is allocated between the liability and finance charge so as to achieve a
constant rate on the balance outstanding. Finance charge of the rental is charged to profit over
the lease term.
3.8 Property, plant, equipment and depreciation
Owned
Holding Company
a) Cost
Property, plant and equipment except freehold land and capital work in progress are stated
at cost less accumulated depreciation and impairment losses, if any. Freehold land and
capital work in progress are stated at cost. Cost of tangible assets consists of historical
cost, borrowing cost pertaining to erection/construction period and other directly attributable
cost of bringing the asset to working condition.
Subsequent costs are included in the asset's carrying amount or recognized as a separate
they are incurred.
72
b) Depreciation
Depreciation on all operating property, plant and equipment is charged to income on
reducing balance method after taking into account residual value, if any, so as to write
off the depreciable amount of an asset over its estimated useful life at the rates given in
Note 20.1. Depreciation on additions is charged from the month the assets are available
for use while no depreciation is charged in the month in which the assets are disposed
off. The residual values and useful lives of assets are reviewed by the management at
each financial year end and adjusted if impact on depreciation is significant.
c) Derecognition
An item of property, plant and equipment is derecognized on disposal or when no future

economic benefits are expected from its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the difference between the net disposal proceeds
and carrying amount of the asset) is included in the income statement in the year the
asset is derecognized.
Subsidiary Company
Owned
a) Cost
Property, plant and equipment, except freehold land and capital work-in-progress, are
stated at cost less accumulated depreciation and impairment losses (if any). Freehold
land and capital work-in-progress are stated at cost. Cost in relation to certain plant and
machinery represents historical cost, exchange differences capitalised upto 30 June,
2004 and the cost of borrowings during the construction period in respect of loans and
finances taken for the specific projects.
Transactions relating to jointly owned assets with Pak American Fertilizers Limited (PAFL),
as stated in note 21.1.7, are recorded on the basis of advices received from the housing
colony.
b) Depreciation
Depreciation is calculated at the rates specified in note 20.1 on reducing balance method
except that straight-line method is used for the plant & machinery and buildings relating
to dry process plant after deducting residual value. Depreciation on additions is charged
from the month in which the asset is put to use and on disposals upto the month of
disposal. The assets' residual values and useful lives are reviewed and adjusted, if
appropriate, at each balance sheet date.
The carrying values of property, plant and equipment are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying value may not be recoverable.
If any such indication exists and where the carrying values exceed the estimated recoverable
amount, the assets or cash-generating units are written-down to their recoverable amount.
73
Subsequent costs are included in the asset's carrying amount or recognised as a separate
these are incurred.
Gains / losses on disposal or retirement of property, plant and equipment, if any, are
taken to profit & loss account.
Leased
Finance lease
Leases where the Group has substantially all the risk and rewards of ownership are classified
as finance lease. Asset subject to finance lease are capitalized at the commencement of the
lease term at the lower of present value of minimum lease payments under the lease agreements
and the fair value of the leased assets, each determined at the inception of the lease.
The related rental obligation net of finance cost, is included in liabilities against assets subject
to finance lease. The liabilities are classified as current and long term depending upon the timing
of payments.
Each lease payment is allocated between the liability and finance cost so as to achieve a
constant rate on the balance outstanding. The finance cost is charged to income over the lease
term.
Depreciation of assets subject to finance lease is recognised in the same manner as for owned
assets. Depreciation of the leased assets is charged to income.
3.9 Investment Property
Change in accounting policy
During the current year, the Company has changed its accounting policy to recognize the owner-
occupied property as investment property (Note 21) in accordance with the requirements of
International Accounting Standard IAS-40 "Investment Property". Previously, these properties
were presented as property, plant and equipment in accordance with the accounting policy
given in note 3.8 to the financial statements. Had there been no change in accounting policy
the carrying value of property, plant and equipment would have been higher by Rupees 120.985
million.
Investment properties are carried at fair value which is based on active market prices, adjusted,
if necessary, for any difference in the nature, location or condition of the specific asset. The
valuation of the property is carried out with sufficient regularity.
Gain or losses arising from a change in the fair value of investment properties are included in
the income currently.
74
3.10 Intangible assets
Intangible assets, which are non-monetary assets without physical substance, are recognized
at cost, which comprise purchase price, non-refundable purchase taxes and other directly
attributable expenditures relating to their implementation and customization. After initial recognition
an intangible asset is carried at cost less accumulated amortization and impairment losses, if
any. Intangible assets are amortized from the month, when these assets are available for use,
using the straight line method, whereby the cost of the intangible asset is amortized over its
estimated useful life over which economic benefits are expected to flow to the Group. The useful
life and amortization method is reviewed and adjusted, if appropriate, at each balance sheet
date.
3.11 Goodwill
During the current period, the Group has changed its accounting policy pertaining to goodwill
in the light of S.R.O No. 1228(1)/2006 dated 06 December 2006 issued by Securities and
Exchange Commission of Pakistan for adoption of International Financial Reporting Standard-
3 "Business Combinations". The Group, has therefore, derecognised the carrying amount of
negative goodwill instead of amortizing it over estimated useful life of the acquired assets.
Had there been no change in the accounting policy, the effect of change for the year is tabulated
below:
Unappropriated profit would have been lower by 243,450

Profit for the year would have been higher by 48,690
Carrying value of goodwill would have been by 194,760
The Group, now on acquisition of an entity recognises goodwill as an asset arising due to
difference between purcahse consideration and the fair value of the assets and liabilities and
tests its impairment annually in accordance with IAS 36 "Impairment of Assets". Negative
goodwill is recognised as income for the period.
3.12 Investments
The Group's management determines the appropriate classification of its investments at the
time of purchase.
Investments are initially measured at fair value plus transaction costs directly attributable to
acquisition, except for "investments at fair value through profit and loss account".
Investments at fair value through profit and loss account
Investments classified as held-for-trading and those designated as such are included in this
category. Investments are classified as held-for-trading if they are acquired for the purpose of
selling in the short term.
Gains or losses on investments held-for-trading are recognised in profit and loss account.
75
Held-to-maturity
Investments with fixed or determinable payments and fixed maturity are classified as held-to-
maturity when the Group has the positive intention and ability to hold to maturity. Investments
intended to be held for an undefined period are not included in this classification. Other long
term investments that are intended to be held to maturity are subsequently measured at amortised
cost. This cost is computed as the amount initially recognised minus principal repayments,
plus or minus the cumulative amortisation using the effective interest method of any difference
between the initially recognised amount and the maturity amount. For investments carried at
amortised cost, gains and losses are recognised in income when the investments are derecognised
or impaired, as well as through the amortisation process.
Available-for-sale
Other investments not covered in any of the above categories are classified as available-for-
sale.
After initial recognition, investments which are classified as available-for-sale are measured
at fair value. Gains or losses on available-for-sale investments are recognised directly in equity
until the investment is sold, derecognised or is determined to be impaired, at which time the
cumulative gain or loss previously reported in equity is included in income. Upon impairment,
gain / loss including that had been previously recognised directly in equity, is included in the
profit and loss account for the year.
For investments that are actively traded in organised financial markets, fair value is determined
by reference to stock exchange quoted market bids at the close of business on the balance
sheet date. For investments where there is no quoted market price, fair value is determined by
reference to the current market value of another instrument which is substantially the same or
is calculated based on the expected cash flows of the underlying net asset base of the investment
or based on other appropriate valuation techniques.
All purchases and sales of investments are recognized on the trade date which is the date that
the Group commits to purchase or sell the investment.
Equity investment in subsidiary and associated companies
The investments in associates in which the Group does not have significant influence and
subsidiary are classified as "Available for Sale".
3.13 Inventories
Inventories, except for stock in transit and waste stock are stated at lower of cost and net
realizable value. Cost is determined as follows:
Stores and spares
Useable stores and spares are valued principally at moving average cost, while items considered
obsolete are carried at nil value. In transit stores and spares are valued at cost comprising
invoice value plus other charges paid thereon.
Stock in trade
Cost of raw material is based on annual average cost.
Cost of work in process and finished goods comprises cost of direct material, labour and
appropriate manufacturing overheads. Cost of goods purchased for resale are based on weighted
average.
Materials in transit are valued at cost comprising invoice value plus other charges paid thereon.
Waste stock is valued at net realizable value.
76
Net realizable value signifies the estimated selling price in the ordinary course of business less
costs necessarily to be incurred in order to make a sale.
3.14 Trade and other receivables
Trade debts and other receivables are carried at original invoice amount less an estimate made
for doubtful debts and other receivables based on a review of all outstanding amounts at the
year end. Bad debts and other receivables are written off when identified.
3.15 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at book value which approximates
their fair value. For the purposes of the cash flow statement, cash equivalents comprise cash
in hand, cash at banks and other short term highly liquid instruments that are readily convertible
into known amounts of cash and which are subject to insignificant risk of changes in values.
3.16 Revenue recognition
a) Revenue from local sales is recognized on despatch of goods to customers while in case
of export sales it is recognized on the date of bill of lading.
b) Dividend on equity investments is recognized as income when the Group's right to receive
payment is established.
c) Interest on bank deposits is recognized on accrual basis.
3.17 Borrowing costs
Borrowing costs are capitalized upto the date of commissioning of respective fixed asset
acquired out of the proceeds of such borrowings. All other mark up, interest and other charges
are charged to income.
3.18 Foreign currencies
Transactions in foreign currency during the year are translated into Pak Rupees at the rates
of exchange prevailing on the date of transaction. All monetary assets and liabilities in foreign
currencies are translated into Pak Rupees at the rate of exchange prevailing on the balance
sheet date except where forward exchange contracts have been made, in which case the
contracted rates are applied. All exchange gains and losses are taken to the profit and loss
account.
3.19 Financial assets and liabilities
Financial assets and liabilities are recognized at fair value when the Group becomes party to
the contractual provisions of the instrument by following trade date accounting. Any gain or
loss on the subsequent measurement is charged to the profit and loss account. The Group
derecognizes a financial asset or a portion of financial asset when, and only when, the enterprise
loses the control over contractual right that comprises the financial asset or a portion of financial
asset. While a financial liability or a part of financial liability is derecognized from the balance
sheet when, and only when, it is extinguished, i.e. when the obligation specified in contract is
discharged, cancelled or expired.
The particular measurement methods adopted are disclosed in the individual policy statements
associated with each item.
Financial assets are long term investments, long term deposits, trade debts, loans and advances
and other receivables, short term investments and cash and bank balances.
77
Financial liabilities are classified according to the substance of the contractual agreements
entered into. Significant financial liabilities are long term financing, short term borrowings and
trade and other payables.
3.20 Derivative financial instruments
These are initially recorded at cost on the date a derivative contract is entered into and are
remeasured to fair value at subsequent reporting dates. The method of recognising the resulting
gain or loss depends on whether the derivative is designated as a hedging instrument, and if
so, the nature of the item being hedged. The Group designates certain derivatives as cash flow
hedges.
The Group documents at the inception of the transaction the relationship between the hedging
instruments and hedged items, as well as its risk management objective and strategy for
undertaking various hedge transactions. The Group also documents its assessment, both at
hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging
transactions are highly effective in offsetting changes in cash flow of hedged items.
The effective portion of changes in the fair value of derivatives that are designated and qualify
as cash flow hedges are recognised in equity. The gain or loss relating to the ineffective portion
is recognised immediately in the profit and loss account.
Amounts accumulated in equity are recognised in profit and loss account in the periods when
the hedged item will effect profit or loss. However, when the forecast hedged transaction results
in the recognition of a non-financial asset or a liability, the gains and losses previously deferred
in equity are transferred from equity and included in the initial measurement of the cost of the
asset or liability.
3.21 Impairment
The carrying amounts of the Group's assets are reviewed at each balance sheet date to determine
whether there is any indication of impairment loss. If any such indication exists, the recoverable
amount of such assets is estimated and impairment losses are recognized in the profit and loss
account. Where an impairment loss subsequently reverses, the carrying amount of the asset
is increased to the revised recoverable amount but limited to the extent of the initial cost of the
asset. A reversal of the impairment loss is recognized in profit and loss account.
3.22 Dividend and other appropriations
Dividend to the shareholders is recognized in the period in which it is declared and other
appropriations are recognized in the period in which these are approved by the Board of Directors.
3.23 Off setting of financial assets and liabilities
Financial assets and liabilities are set off and the net amount is reported in the financial statements
when there is legally enforceable right to set off and the Group intends either to settle on a net
basis, or to realize the asset and settle the liability simultaneously.
3.24 Mark up bearing borrowings
Borrowings are recognized initially at fair value and are subsequently stated at amortized cost;
any difference between the proceeds and the redemption value is recognized in the income
statement over the period of the borrowing using the effective interest rate method.
78
3.25 Un-allocated capital expenditure
All cost or expenditure attributable to work-in-progress are capitalised and apportioned to

Maple Limited
buildings and plant & machinery at the time of commencement of commercial operations.
3.26 Equity instruments
These are recorded at their face value.
4. ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL
2007 2006 2007 2006

Number of shares (Rupees in thousand)
1,596,672 1,596,672 Ordinary shares of Rupees 10 each 15,967 15,967

allotted on reorganisation of
Kohinoor Industries Limited
26,156,000 26,156,000 Ordinary shares allotted under scheme 261,560 261,560

of arrangement of merger of Part II of
Maple Leaf Electric Company Limited
26,858,897 26,858,897 Ordinary shares allotted under scheme 268,589 268,589

of arrangement of merger of Kohinoor
Raiwind Mills Limited and Kohinoor
Gujar Khan Mills Limited.
38,673,628 28,089,904 Ordinary shares of Rs. 10 each issued 386,736 280,900

as bonus shares
52,241,019 23,135,776 Ordinary shares of Rs. 10 each issued 522,410 231,358

for cash
145,526,216 105,837,249 1,455,262 1,058,374
4.1 Reconciliation of the number of shares outstanding;
(Number of share)
Number of shares outstanding at the beginning of the year 105,837,249 96,215,681
Add: 10% Bonus issue of shares during the year 10,583,724 9,621,568
25% Right issue of shares during the year 29,105,243 -
39,688,967 9,621,568
145,526,216 105,837,249
4.2 Zimpex (Private) Limited, which is an associated company, held 22,510,635 (2006: 16,371,371)
ordinary shares of Rupees 10 each at 30 June 2007.
79
5. RESERVES
2007 2006
Capital:
Capital reserve Maple Leaf Cement Factory

MapleLimited -
Leaf Cement Factory Limited 18,901
Share premium 5.1 144,919 55,639
Hedging reserves 5.2 121,423 -
Surplus on revaluation of investments
- net of deferred tax 5.3 935,229 6,213
1,201,571 80,753
Revenue:
General reserve 1,490,491 1,190,491

Dividend equalization reserve 9,509 9,509
Unappropriated profit 1,562,012 1,696,044
3,062,012 2,896,044
4,263,583 2,976,797
5.1 This reserve can be utilized by the Group only for the purposes specified in section 83(2) of
the Companies Ordinance, 1984.
5.2 The Subsidiary company, during the current year, has entered into derivative cross currency
interest rate swap agreements with Standard Chartered Bank (Pakistan) Limited to hedge for
the possible adverse interest rate movements on 50% of National Bank of Pakistan led consortium
financing of Rs. 4.800 billion (i.e. Rs. 2.400 billion) and 100% of Allied Bank Limited led
consortium financing of Rs.950 million as referred to in notes 8.26 and 8.27 respectively. As
these hedging relationships are effective and meet the criteria of cash flow hedge, these
arrangements qualify for hedge accounting as specified in IAS 39 (Financial Instruments:
Recognition and Measurement).
The derivative cross currency interest rate swaps that are outstanding as at 30 June, 2007 have
been marked to market and the effective unrealised gain aggregating Rs. 242.226 million
has been recognised in the statement of changes in equity.
2007 2006
5.3 Surplus on revaluation of investments - net of deferred tax
Balance as at July 01 6,213 257,694

Add: Fair value adjustments on investments :
Kohinoor Weaving Mills Limited - (252,899)
Security General Insurance Company Limited 1,358,728 1,418
1,358,728 (251,481)
Less: Deferred tax liability
Balance as at June 30 935,229 6,213
80
6 MINORITY INTEREST
2007 2006
Opening balance 3,959,625 3,415,190
Add : Share during the year
- Ordinary share capital 371,311 -
- Preference share capital - -
- Share premium 92,827 -
- Hedging reserve 120,803 -
- Surplus on revaluation of investment to fair value 265,873 1,411
- Profit 47,434 554,727
898,248 556,138
Less: Payment of dividend 52,713 11,703
Write-off expenses on issue of right shares 972 -
4,840,188 3,959,625
7 LONG TERM FINANCING

2007 2006
From banking companies and other financial
institutions - Secured 7.1 11,029,818 10,362,070
From related parties - Secured 7.2 250,000 -
Other loans - Unsecured 7.3 7,477 7,477
11,287,295 10,369,547
7.1 Holding company

National Bank of Pakistan (NBP-1) 7.1.1 14,761 31,986
MCB Bank Limited (MCB-1) 7.1.2 25,000 75,000
The Bank of Punjab (BOP-1) 7.1.3 218,709 320,754
Standard Chartered Bank (Pakistan) Limited
(SCBPL-1) 7.1.5 75,225 102,725
Albaraka Islamic Bank Ltd (ABIB) 7.1.6 100,000 100,000
United Bank Limited (UBL) 7.1.7 62,500 112,500
Allied Bank Limited (ABL-1) 7.1.8 235,115 281,568
Allied Bank Limited (ABL- 3) 7.1.10 250,000 -
The Bank of Khyber (BOK-1) 7.1.10 80,000 -
Orix Leasing Pakistan Ltd (OLPL) 7.1.10 25,000 -
Faysal Bank Limited (FBL-1) 7.1.11 300,000 300,000
Faysal Bank Limited (FBL-2) 7.1.12 137,500 -
Saudi Pak Industrial and Agricultural Investment
Co. (Pvt) Limited (SPIAICPL-1) 7.1.13 43,334 57,778
Co. (Pvt) Limited (SPIAICPL-2) 7.1.14 40,000 -
Co. (Pvt) Limited (SPIAICPL-3) 7.1.15 250,000 40,000
Bank Alfalah Limited (BAL) 7.1.16 272,222 350,000
Pakistan Industrial Credit and Investment
Corporation Limited (PICIC-1) 7.1.17 23,464 44,850
C/F
81
2007 2006
B/F
Pakistan Industrial Credit and Investment
Corporation Limited (PICIC-2) 7.1.18 292,786 292,786
NIB Bank Limited (NIB-1) 7.1.19 10,000 30,000
NIB Bank Limited (NIB-2) 7.1.20 92,727 -
MCB Bank Limited - (MCB) - 10,171
Askari Bank Limited (ACBL) - 200,000
Subsidiary Company
MCB Bank Limited - (MCB-2) 7.1.21 266,838 355,784
Habib Bank Limited (HBL-1) 7.1.21 266,838 355,784
MCB Bank Limited - (MCB-3) 7.1.22 100,000 128,572
Askari Commercial Bank Limited (ACBL-1) 7.1.22 20,000 30,000
First Women Bank Limited (FWB-1) 7.1.22 14,000 21,000
Standard Chartered Bank Pakistan Limited
(SCBPL-2) 7.1.24 200,000 250,000
PICIC Commercial Bank Limited (PCBL-1) 7.1.24 104,000 130,000
MCB Bank Limited (MCB-4) 7.1.25 150,000 150,000
The Hong Kong & Shanghai Banking
Corporation Limited (HSBC) 7.1.25 115,000 115,000
Soneri Bank Limited (SBL-1) 7.1.25 75,000 75,000
Pak Libya Holding Co. (Pvt.) Limited (PLHC-1) 7.1.25 50,000 50,000
First Women Bank Limited (FWB-2) 7.1.25 35,000 35,000
Habib Bank Limited (HBL-2) 7.1.26 960,000 859,954
Allied Bank Limited - (ABL-5) 7.1.26 850,000 761,490
Prime Commercial Bank Limited (PCBL-2) 7.1.26 700,000 626,908
Co. (Pvt) Limited (SPIAIPL-4) 7.1.26 150,000 134,150
Allied Bank Limited (ABL-6) 7.1.27 270,000 -
MCB Bank Limited (MCB-5) 7.1.27 250,000 -
Saudi Pak Commercial Bank Limited (SPCB) 7.1.27 200,000 -
Pak Libya Holding Co. (Pvt.) Limited (PLHC-2) 7.1.27 100,000 -
Soneri Bank Limited (SBL-2) 7.1.27 50,000 -
Co. (Pvt) Limited (SPIAIPL-5) 7.1.27 50,000 -
First Women Bank Limited (FWB-3) 7.1.27 30,000 -
Allied Bank Limited (ABL-7) 7.1.28 1,350,000 -
Pak Libya Holding Co. (Pvt.) Limited (PLHC-3) 7.1.28 300,000 -
Co. (Pvt) Limited (SPIAIPL-6) 7.1.28 100,000 -
KASB Bank Limited (KASB) 7.1.28 100,000 -
Pak Oman Investment Company Limited
(Pak Oman) 7.1.28 100,000 -
C/F
82
2007 2006
C/F
The Bank of Khyber (BOK-2) 7.1.28 50,000 -
MCB Bank Limited (MCB) - 34,900
Allied Bank Limited (ABL) - 950,000
13,592,519 11,457,596
Less: Current portion 18 2,562,701 1,095,526
11,029,818 10,362,070
7.2 Loans from Related Parties - Secured
Loans from directors 7.2.1 160,000 -

Loan from Zimpex Pakistan (Pvt.) Ltd. 7.2.2 90,000 -
250,000 -
7.3 Other loans - Unsecured

Kohinoor Sugar Mills Limited (KSML) 7.3.1 4,794 4,794
Kohinoor Industries Limited (KIL) 7.3.2 2,683 2,683
7,477 7,477
11,287,295 10,369,547
7.1.1 National Bank of Pakistan (NBP-1)
This represents demand finance facility of Rs. 60 million, obtained for import of textile machinery
for Balancing, Modernization and Replacement (BMR) and is allowed for a period of four and
a half years including a grace period of six months. The tentative expiry period of the facility
is March, 2008. The facility is repayable in sixteen (16) quarterly installments. It is secured by
first exclusive charge on machinery amounting to Rs. 80 million and personal guarantee of
sponsor directors. It carries mark up at the rate of 6-months KIBOR plus 1.50% with a floor
of 4% per annum.
7.1.2 MCB Bank Limited (MCB - 1)
This represents demand finance loan of Rs. 200 million, obtained for import of Picanol Air jet
Looms and is repayable in sixteen (16) equal quarterly installments commencing from March
31, 2004. It is secured by first registered pari passu charge on fixed assets of the company
(Raiwind Division) and personal guarantees of sponsor directors of the company. It carries
mark up at the rate of 6 months KIBOR plus 185 bps per annum.
7.1.3 The Bank of Punjab - (BOP-1)
This represents demand finance facility of Rs. 400 million, obtained for import of state of art
machinery and is allowed for a period of four years with a grace period of six months. The
loan is repayable in 7 equal half yearly installments commencing after conclusion of grace
period. It is secured by bank's exclusive hypothecation charge on machinery imported and
personal guarantee of sponsor directors. Facility amounting to Rs. 300 million carries mark
up at the rate of 6 months average KIBOR plus 100 bps and additional facility of Rs. 100 million
carries mark up at the rate of 6 months average KIBOR plus 275 basis points (bps) with a floor
of 4.25% per annum, payable quarterly. On November 29, 2006 loans amounting Rs. 150.431
83
million were converted to LTF-EOP consisting of Rs. 61.725 million at 6 % per annum and Rs.
88.706 million at 7 % fixed rate of mark up.
7.1.4 The Bank of Punjab - (BOP-2)
period of five years including a grace period of one year. The facility is repayable in sixteen
equal quarterly instalments, first payment being due at the end of 15th month from the date
of disbursement. It is initially secured by ranking charge for Rs 400 million on fixed assets and
surplus land situated at Rawalpindi and personal guarantees of the sponsor directors. On
completing the requisite formalities charge will be upgraded as first pari passu charge on the
surplus land situated at Rawalpindi and the existing charge on fixed assets will be vacated. It
carries mark up at the rate of 3 months KIBOR plus 275 bps per annum with quarterly repricing.
7.1.5 Standard Chartered Bank (Pakistan) Limited (SCBPL-1)
This represents the term finance facility of Rs. 110 million, obtained for import of state of art
machinery and is allowed for a period of five years including a grace period of one year. The
facility is payable in sixteen (16) equal quarterly installments. It is secured by first exclusive
charge on machinery and personal guarantees of sponsor directors. It carries mark up at the
rate of 6-months KIBOR plus 2.25% per annum with no floor and cap.
7.1.6 Albaraka Islamic Bank Limited (ABIB)
This represents Murabaha finance facility of Rs. 100 million, obtained for construction of
buildings. The facility is allowed for a period of four years with a grace period of one year. The
facility is repayable in sixteen (16) equal quarterly installments commencing with first payment
being due at the end of 15th month from the date of disbursement. It is secured by pari passu
charge and hypothecation on fixed assets i.e. land and building constructed for ring spinning
and stitching. It carries mark up at the rate of 3-years KIBOR plus 2% per annum with floor of
12.75% per annum.
7.1.7 United Bank Limited (UBL)
This represents the term Loan facility of Rs. 200 million, to finance BMR at Kohinoor Textile
Mills Limited (Rawalpindi and Gujar Khan Divisions) and to refinance loans of other banks. The
term loan facility is allowed for a period of five years with one year grace period and is repayable
in sixteen equal quarterly installments, commencing from December 31, 2004. It carries mark
up at rate of 6 months treasury bills cut-off rate plus 275 basis points with a floor of 4.5% per
annum. It is secured by first pari passu charge for Rs. 266 million on all existing and future
fixed assets of Kohinoor Textile Mills Limited (Raiwind Division) and personal guarantees of the
sponsor directors.
7.1.8 Allied Bank Limited (ABL-1)
This represents term finance facility of Rs. 300 million, obtained for import of state of art
machinery and is allowed for a period of five years with a grace period of one year. The facility
is repayable in sixteen (16) equal quarterly installments commencing after conclusion of grace
period. It is secured by first exclusive charge on machinery imported. Facility amounting to Rs.
100 million carries mark up at the rate of 6 months KIBOR plus 1.25% per annum, facility of
Rs. 125 million carries mark up at the rate of 6 months KIBOR plus 1.75% per annum and
facility of Rs. 75 million carries mark up at the rate of 6 months KIBOR plus 2.50% per annum
with no floor and cap. On December 28, 2006 loans amounting Rs. 124.732 million were
converted to LTF-EOP at 7% per annum fixed rate of mark up.
84
7.1.9 Allied Bank Limited (ABL-2)
This represents the demand finance facility of Rs. 500 million, obtained for BMR and is allowed
for a period of five years with a grace period of one year. The facility is repayable in sixteen
(16) equal quarterly installments commencing after conclusion of grace period. It is secured
by first pari passu charge over land at Rawalpindi. It carries mark up at the rate of 6 months
KIBOR plus 2% per annum.
7.1.10 Allied Bank Limited, The Bank of Khyber, Orix Leasing Pakistan Limited and Saudi Pak
Commercial Bank Limited
This represents a syndicated finance facility aggregating Rupees 405 million inclusive of
unavailed limit of Rs. 50 million of Saudi Pak Commercial Bank Limited under green shoe
option. The facility is arranged through Allied Bank Limited (Arranger) for debt reprofiling from
a syndicate of Allied Bank Limited (arranger), The Bank of Khyber, Orix Leasing Pakistan
Limited and Saudi Pak Commercial Bank Limited for a period of 5 years inclusive of grace
period of one year. The facility is repayable in 8 equal semi annual instalments. It is secured
by charge on land held by Rawalpindi division of the Company. The facility carries mark up
at the rate of 6 months KIBOR plus 275 bps with semi annual repricing.
7.1.11 Faysal Bank Limited (FBL - 1)
This represents Morabaha finance facility of Rs. 300 million, obtained for purchase of local
/ imported textile machinery, tools spares and other related equipment. It is allowed for a
period of five years with a grace period of one year. The facility is repayable in sixteen (16)
equal quarterly installments commencing with first payment being due at the end of 15th
month from the date of first disbursement. It is secured by first registered parri passu mortgage
and hypothecation charge of Rs. 400 million over all present and future fixed assets (excluding
surplus land) of Kohinoor Textile Mills Limited ( Rawalpindi Division) and personal guarantees
of sponsoring directors. It carries mark up at the rate of 6 months average KIBOR (Asking)
plus 2.50% per annum with semi annual repricing.
7.1.12 Faysal Bank Limited (FBL - 2)
This represents Long term finance against export oriented projects (LTF-EOP) facility of Rupees
137.500 million for import of 36 Picanol Omni plus wide width high speed looms and a
warping machine and is allowed for a period of three years with one year grace period. It is
repayable in equal quarterly installments. The facility is secured by exclusive charge on the
aforesaid imported machinery, first pari passu charge of Rs 47.5 million on fixed assets of
Raiwind division of the Company and personal guarantees of the sponsor directors. It carries
mark up at a fixed rate of 6 % per annum.
7.1.13 Saudi Pak Industrial and Agricultural Investment Co. (Private) Limited (SPIAICPL - 1)
This represents the term finance facility of Rs. 65 million for import of textile machinery and
is allowed for a period of five years with a grace period of six months. The facility is repayable
in eighteen (18) equal quarterly installments commencing from February 19, 2006. It is
secured by first exclusive charge on machinery imported. It carries mark up at the rate of 6-
months KIBOR average ask plus 1.75% per annum.
7.1.14 Saudi Pak Industrial and Agricultural Investment Co. (Private) Limited (SPIACIPL - 2)
This represents a LTF - EOP facility of Rs. 40 million for import of warping and sizing machines
and is for a period of five years with a grace period of one year. It is repayable in equal quarterly
installments. It carries mark up at a fixed rate of 7.75% per annum.
85
7.1.15 Saudi Pak Industrial and Agricultural Investment Co. (Private) Limited (SPIACIPL - 3)
This represents term finance facility of Rs. 250 million obtained for debt reprofiling for a period
of five years including grace period of one year. The facility is repayable in 8 equal six monthly
installments. It is secured by first parri passu charge by way of hypothecation on all present
and future plant and machinery of the Company and by way of mortgage on land measuring
121 Acres, 2 kanals and 1 marla, situated at main Peshawar Road, Rawalpindi with 25%
margin. Initially ranking charge will be created which will be upgraded within 90 days from
the date of disbursement. The facility carries mark up at the rate of 3 months KIBOR plus 275
bps per annum with quarterly repricing.
7.1.16 Bank Alfalah Limited (BAL)
This represents term finance facility of Rs. 350 million allowed for a period of five years with
a grace period of six months. The facility is repayable in 18 equal quarterly installments
commencing six months after the date of disbursement. It is secured by first pari passu
mortgage charge on 43 Acres of surplus land located at Main Peshawar Road, Rawalpindi
and personal guarantees of the sponsor directors. It carries mark up at the rate of 6 months
KIBOR plus 2% per annum with semi annual repricing.
7.1.17 Pakistan Industrial Credit and Investment Corporation Limited (PICIC-1)
This represents a loan of Rupees 100 million obtained from PICIC for import of Air Jet Looms
for Raiwind Division. It is repayable in twenty (20) equal quarterly installments, commencing
from October 03, 2003. It is secured by first legal mortgage ranking pari passu with the
existing first charge already created in favour of PICIC on the company's (Raiwind Division)
present and future immovable properties wherever situated including all buildings, fixed plants,
machinery and fixtures and personal guarantees of the sponsor directors. It carries mark up
at rate of 9.5% per annum.
7.1.18 Pakistan Industrial Credit and Investment Corporation Limited (PICIC-2)
This represents a term finance facility of Rupees 300 million under State Bank of Pakistan
(LTF-EOP) scheme for a period of five years with a grace period of one year. The financing
is for import of 72 Picanol Omni Plus wide width Air Jet Looms, other textile machinery and
power generating sets. It is repayable in equal quarterly installments, commencing after expiry
of grace period. It carries mark up at the rate of 7% per annum.
7.1.19 NIB Bank Limited (NIB - 1)
This represents the term finance facility of Rs. 30 million, obtained for BMR and is allowed
for a period of eighteen months from the date of disbursement . The facility is repayable in
six equal quarterly installments commencing one quarter after the date of disbursement. It
is secured by first pari passu charge upto extent of Rs. 40 million on fixed assets (excluding
land and building) of the Company and personal guarantees of the sponsoring directors. It
carries mark up at the rate of 3 months KIBOR plus 2.50% per annum with floor of 11% per
annum.
7.1.20 NIB Bank Limited (NIB - 2)
This represents LTF-EOP facility obtained for import of textile machinery for a period of three
years including a grace period of six months. It is repayable in ten equal quarterly installments
, first payment becoming due at the end of 9th month from the date of disbursement . It is
secured by first exclusive hypothecation charge on the imported machinery and allied equipment,
including installation and local component costs and personal guarantees of the sponsor
directors . It carries mark up at fixed rate of 6 % per annum.
86
7.1.21 MCB Bank Limited (MCB-2) & Habib Bank Limited (HBL-1)
These loans have been obtained from a consortium comprising of MCB and HBL and are
repayable in 14 half-yearly equal instalments commenced from December, 2003. These loans
carry mark-up at the rate of 6-months KIBOR + 2.29%. Mark-up on these loans is payable
on quarterly basis. The effective mark-up rate charged during the year ranged between 11.90%
to 12.94% per annum.
7.1.22 MCB Bank Limited (MCB-3) , Faysal Bank Limited (FBL-3), The Bank of Punjab (BOP-3),
Askari Commercial Bank Limited (ACBL-1), First Women Bank Limited (FWB-1)
These loans have been obtained from a consortium comprising of MCB, FBL, BOP, ACBL and
FWB in two tranches. First tranche of Rs. 550 million was disbursed in December, 2003 by
FBL and MCB, which carries mark-up at the rate of 6-months treasury bills rate + 2.75%,
with no floor or cap. The effective mark-up rate charged during the year ranged between
11.21% to 11.56% per annum. These loans are repayable in fourteen half-yearly equal
instalments commenced from June, 2004.
Second and final tranche was disbursed by BOP, ACBL and FWB in April, 2004 at a
mark-up rate of 6-months KIBOR + 2.21%. The effective mark-up rate charged during the
year ranged between 11.67% to 12.77% per annum. These loans are repayable in ten half-
yearly equal instalments commenced from October, 2004. Mark-up on these loans is payable
on quarterly basis.
7.1.23 National Bank of Pakistan (NBP-2)
This loan carries mark-up at the rate of 6-months KIBOR + 2.25% with no floor or cap and
is repayable in twelve equal half-yearly instalments commenced from October, 2004. The
effective mark-up rate charged during the year ranged between 11.80% to 12.83% per annum.
Mark-up on this loan is payable on half-yearly basis.
7.1.24 Standard Chartered Bank (Pakistan) Limited (SCBL-2), National Bank of Pakistan (NBP-
3), PICIC Commercial Bank Limited (PCBL-1)
These loans aggregating Rs. 530 million have been obtained from a Syndicate of commercial
banks ( i.e. SCB, NBP and PCBL) to fund the conversion of one of the existing wet process
lines of grey cement to 500 tpd dry process line of white cement. These loans are repayable
in 20 equal quarterly instalments commenced from September, 2006 and carry mark-up at
the rate of 6-months KIBOR + 2.25% with no floor or cap. Mark-up on these loans is payable
on quarterly basis. The effective mark-up rate charged during the year ranged between 11.86%
to 12.90% per annum.
7.1.25 Allied Bank Limited (ABL-4),MCB Bank Limited (MCB-4),The Hong Kong & Shanghai Banking
Corporation Limited (HSBC), The Bank of Punjab (BOP-4), Soneri Bank Limited (SBL), Pak
Libya Holding Co. (Pvt.) Limited (PLHC-1), First Women Bank Limited (FWB-2)
The Subsidiary Company, during the preceding year, has raised a syndicated term finance
facility of Rs.1.000 billion for financing its capital expenditure requirements. The Syndicate
comprises of ABL, MCB, HSBC, BOP, SBL, PLHC and FWB. The finance facility is repayable
in 9 equal half-yearly instalments commencing 30 November, 2007 and carries mark-up at
the rate of 6-months KIBOR + 2%. Mark-up on these loans is payable on half-yearly basis.
The effective mark-up rate charged during the year ranged between 11.66% to 12.56% per
annum.
87
7.1.26 National Bank of Pakistan (NBP-4), Habib Bank Limited (HBL-1), Allied Bank Limited (ABL-
5) , Faysal Bank Limited (FBL-4), Prime Commercial Bank Limited (PCBL-2), The Bank
of Punjab (BOP-5), Saudi Pak Industrial and Agricultural Investment Co. (Pvt) Limited
(SPIAIPL-4)
This finance facility of Rs.4.800 billion is available from a Syndicate of commercial banks and
development finance institution (i.e. NBP, HBL, ABL, FBL, PCBL, BoP and Saudi Pak) for
financing the ongoing expansion project of 6,700 tpd clinker capacity. This finance facility is
repayable in 9 equal half-yearly instalments commencing August, 2007 and carries mark-up
at the rate of 6-months KIBOR +2%. Mark-up on these loans is payable on half-yearly basis.
The effective mark-up rate charged during the year ranged between 11.69% to 12.64% per
annum.
The Subsidiary company, during the current year, has entered into a derivative cross currency
interest rate swap agreement with Standard Chartered Bank (Pakistan) Limited to hedge for
the possible adverse interest rate movements on 50% of NBP led consortium financing of Rs.
4.800 billion (i.e. Rs. 2.400 billion). As per the swap agreement, the interest liability has been
converted into U.S. Dollars and the Subsidiary is liable to pay interest based on 6-months
U.S.$ LIBOR + 1%.
7.1.27 Allied Bank Limited (ABL-6) ,MCB Bank (MCB-5), Saudi Pak Commercial Bank Limited
(SPCB), Pak Libya Holding Company (PLHC-2), Soneri Bank Limited (SBL), Saudi Pak
Industrial and Agricultural Investment Co. (Pvt) Limited (SPIAIPL-5), First Women Bank
Limited (FWB-3)
ABL, during the current year, has converted its finance facility of Rs. 950 million into a
syndicated term finance facility of the equivalent amount. The facility is being utilised to finance
the ongoing capital expenditure requirements i.e. conversion from wet process plant of 650
tpd clinker capacity of grey cement to 500 tpd clinker capacity of dry process plant of white
cement. The Syndicate comprises of ABL, MCB, SPCB, PLHC, SBL, Saudi Pak and FWB. The
finance facility is repayable in 9 equal half-yearly instalments commencing October, 2008 and
carries mark-up at the rate of 6-months KIBOR + 2.25%. Mark-up on these loans is payable
on half-yearly basis. The effective mark-up rate charged during the year ranged between
12.46% to 12.81% per annum.
The Subsidiary company, during the current year, has entered into a derivative cross currency
interest rate swap agreement with Standard Chartered Bank (Pakistan) Limited to hedge for
the possible adverse interest rate movements on ABL led consortium financing of Rs.950
million. As per the swap agreement, the interest liability has been converted into Euros and
the Company is liable to pay interest based on 6-months EURIBOR+ 0.98%.
The loans, as detailed in notes 7.21 to 7.29 above, are secured by first pari passu charge
over present and future fixed assets of the Subsidiary company, demand promissory notes
and personal guarantee of some of the directors.
7.1.28 Allied Bank Limited (ABL-7), Pak Libya Holding Co. (Pvt.) Limited (PLHC-2), Saudi Pak
Industrial and Agricultural Investment Co. (Pvt) Limited (SPIAIPL-6), KASB Bank Limited
(KASB), Pak Oman Investment Company Limited (Pak Oman), The Bank of Khyber (BOK-2)
The Subsidiary company, during the current year, has raised this syndicated term finance
facility of Rupees two billion for financing its capital expenditure requirements of grey cement
project. The Syndicate comprises of ABL, PLHC, Saudi Pak, KASB, Pak Oman and BOK. The
finance facility is repayable in 9 equal half-yearly instalments commencing March, 2009 and
carries mark-up at the rate of 6-months KIBOR + 2.50%. Mark-up on these loans is payable
on half-yearly basis. The effective mark-up rate charged during the year ranged between
88
Maple Limited
11.54% to 12.51% per annum. The finance facility is secured against a ranking fixed charge
by way of hypothecation over all of the Company's present and future fixed assets (excluding
land and buildings), ranking mortgage charge over Subsidiary's land and buildings by deposit
of title deeds and personal guarantees of two of the Subsidiary company's directors.
7.2.1 Directors
The Subsidiary company, during the year, has obtained loans from two of its directors, Rs.
80 million each, for completion of the ongoing expansion project of 6,700 tpd clinker capacity.
These loans carry mark-up at the rate of 1-month KIBOR + 1.5%; the effective mark-up rate
charged during the year ranged between 10.73% to 10.94% per annum. These loans are
secured against demand promissory notes and are repayable in lump sum after five years
or earlier with mutual consent of the parties.
7.2.2 Zimpex Pakistan (Private) Limited
This loan has also been obtained for completion of the ongoing expansion project of 6,700
tpd clinker capacity. It carries mark-up at the rate of 6-months KIBOR + 3.5% with floor of
14%; the effective mark-up rate charged during the year ranged between 12.27% to 14% per
annum. The loan is secured against demand promissory note and is repayable in lump sum
after five years or earlier with mutual consent of the parties.
7.3.1 Kohinoor Sugar Mills Limited (KSML)
A civil suit has been filed by KSML for recovery of disputed liability which is being contested
by the Holding company.
7.3.2 Kohinoor Industries Limited (KIL)
The balance is an old one, un-reconciled, unconfirmed and disputed.

2007 2006
8 Term Finance Certificates (TFCs) - Secured
Term Finance Certificates-Holding company 71,250 142,500

Term Finance Certificates-Subsidiary company - 41,650
71,250 184,150
- 71,250
Term Finance Certificates-Holding company
The Holding company has issued privately placed term finance certificates comprising 57 sets of
Rs. 5 million each (each set comprise 20 scrips of Rs. 0.250 million each) to raise Rs. 285 millions
to refinance existing borrowings availed by the company.
The term finance certificates are redeemable in twenty (20) quarterly installments commencing from
August 01, 2003. First four redemption installments comprise of token principal redemption of Re. 1
and profit on each TFC. The balance principal redemption is payable in sixteen (16) equal quarterly
installments alongwith profits. The rate of return on term finance certificates is to be determined at
89
seven days before commencement of each quarter for the tenor of the relevant quarter and it will be
6-months KIBOR plus 2% per annum.
The Holding company may redeem the TFCs by way of exercise of the Call Option by giving written
notice and/or public notice to the TFCs holders and the trustee at least ninety (90) days prior to the
option date(s). The first Option date fall on the fourth redemption date and each subsequent redemption
date shall also be an Option date. The date of maturity of the TFCs is May 01, 2008.
These TFCs are secured by way of first pair passu charge on all present and future fixed assets of
the Holding company amounting to 1.5 times of the outstanding coupon amount and personal
guarantees of sponsor directors.
Faysal Bank Limited has been appointed as trustee under the trust deed and is paid a fee at the rate
of 0.05% per annum of the outstanding coupon amount at the beginning of the year.
9 LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE

2007 2006
Minimum lease payments 815,808 286,360
Less: Un-amortized finance charges 226,374 44,589
Present value of minimum lease payments 589,434 241,771

495,683 163,613
9.1 The present value of minimum lease payments has been discounted at an implicit interest rate
ranges from 6.00% to 16.28% (2006: from 8.50% to 17.00%) per annum to arrive at their
present value.
9.2 The lease rentals are payable in monthly and quarterly installments. In case of any default an
additional charge at the rate of 0.1 percent per day shall be payable. Taxes, repairs, replacements
and insurance costs are to be borne by the company. The lease agreements carry renewal and
purchase option at the end of the lease term. There are no financial restrictions in lease
agreements. These are secured by deposit of Rupees 52.780 million (2006: Rupees 22.430
million) included in long term security deposits, demand promissory notes, personal guarantees
and pledge of sponsors' shares in public limited companies.
9.3 Minimum lease payments and present value of minimum lease payments are regrouped
as under:
30 June 2007 30 June 2006

Minimum lease Present value Minimum lease Present value
payments of minimum payments of minimum
lease payments lease payments
........................(Rupees in thousand)........................
Due not later than one year 157,643 93,751 99,619 78,158
Due later than one year but
not later than five years 658,165 495,683 186,741 163,613
815,808 589,434 286,360 241,771
90
10 LEASE FINANCE ADVANCES - Secured
2007 2006
Islamic Corporation for the Development of
the Private Sector, Jeddah (ICD - a Subsidiary
of Islamic Development Bank) Maple Leaf Cement Factory 10.1
Maple Limited
Leaf 679,676
Cement Factory Limited 48,280
First National Bank Modaraba (FNBM) - 25,866
679,676 74,146
10.1 The Subsidiary Company, during the preceding year, has entered into a forward lease agreement
with ICD to finance power generation equipment of the expansion project of 6,700 tpd. The
lease agreement is for a period of 8 years including a grace period of 24 months. The first
rentals will be due on 01 December, 2008 whereas the final lease rentals will be due on 04
May, 2014. The lease finance facility carries interest at the rate of 6 months U.S.$ LIBOR plus
a spread of 2.5% per annum and is secured against the first exclusive charge on power generation
plant. ICD, against the total commitment of U.S.$ 14,500,000, has disbursed U.S.$10,625,666
upto 30 June, 2007 (2006: U.S.$ 800,000).
11 LONG TERM DEPOSITS
These represent interest-free security deposits from stockists and are repayable on cancellation or
withdrawal of the dealerships. These are being utilised by the Subsidiary company in accordance with
the terms of dealership agreements.
12 EMPLOYEES BENEFITS
2007 2006
Due to gratuity fund trust - 2,040

Deferred liability for vacation benefits 13,192 10,250
13,192 12,290
13 DEFERRED TAX LIABILITY
The liability for deferred taxation comprises timing differences relating to:
Taxable temporary difference
Accelerated tax depreciation allowance 1,645,243 1,597,310
Lease Finances - 546
Surplus on revaluation of investments 429,712 -
2,074,955 1,597,856
Deductible temporary differences
Tax losses carry forward 785,091 592,827
Lease Finances 47,167 -
Provision for obsolete stores & Spares - 4,934
Deferred Liability for vacation benefits 4,617 3,588
Turn over tax available for carry forward 69,953 65,672
906,960 668,498
1,167,995 929,358
91
13.1 The movement in deferred tax assets and liabilities during the year without taking into consideration
the off setting balances within the same tax jurisdiction is as follows:
MapleLimited
Deferred tax liability Deferred tax assets
Provision for
Accelerated Surplus on doubtful debts, tax available Net liability
Lease obsolee store/ (asset)
tax revaluation of Total Tax losses for carry Total
Finances deferred liabilities forward
depreciation investment
of vacation
benefits
Balance as at July 01, 2005 1,015,302 1,015,302 - 1,015,302 626,058 8,368 21,826 656,252 359,050
Charged to profit and
loss account 582,008 546 - 582,554 (33,231) 1,631 43,846 12,246 570,308
Balance as at June 30, 2006 1,597,310 546 - 1,597,856 592,827 9,999 65,672 668,498 929,358
Charged to equity - - 429,712 429,712 - - - - 429,712
Charged to profit and
loss account 47,933 (47,713) - 220 192,264 (5,250) 4,281 191,295 (191,075)
Balance as at June 30, 2007 1,645,243 (47,167) 429,712 2,027,788 785,091 4,749 69,953 859,793 1,167,995
14 TRADE AND OTHER PAYABLES

2007 2006
Creditors 848601 880,671

Accrued liabilities 166,422 194,755
Customers deposit -interest free repayable on demand 48,692 38,881
Advances from customers 14,291 15,418
Contractors' retention money 26,677 31,207
Royalty and excise duty payable 4,251 3,499
Workers' profit participation fund 14.1 1,223 92,697
Unclaimed dividend 4,290 4,433
Withholding tax payable 1,549 2,711
Others 79,223 169,131
1,195,219 1,433,403
14.1 Workers' profit participation fund
Balance at the beginning of the year 92,697 67,660

Allocation for the year 39 - 88,491
92,697 156,151
Interest on funds utilized in the Group's business 167 244
92,864 156,395
Less: Payments to the fund/deposited with
Government treasury 91,641 63,698
1,223 92,697
14.2 The Group retains workers’ profit participation fund for its business operations till the date of
allocation to workers. Interest is paid at prescribed rate under the Companies Profit (Workers
Participation Act, 1968) on funds utilized by the Group till the date of allocation to workers.
92
Maple Limited
15. ACCRUED MARK UP

2007 2006

Short term borrowings Maple Leaf Cement Factory
Maple Limited
38,090 32,495
437,894 359,961
16. SHORT TERM BORROWINGS - Secured
From banking companies:

Running finances - Secured 16.1 2,292,926 2,075,090
Export refinances - Secured 16.2 1,280,000 1,105,436
Temporary bank overdrafts-unsecured 16.3 164 3,468
3,573,090 3,183,994
16.1 The running finance facilities sanctioned by various banks aggregate to Rupees 6,908 million
4.53% to 13.00%). These arrangements are secured by pledge of raw material, charge on
current assets of the Group including hypothecation of work-in-process, stores and spares,
letters of credit, firm contracts, book debts and personal guarantees of the sponsor directors.
16.2 The export refinance facilities obtained from various banks aggregate to Rupees 1,340 million
8.40% to 9.00%). These arrangements are secured by way of charge on current assets of the
Holding company and personal guarantees of the sponsor directors.
16.3 This has arisen due to issuance of cheques for amounts in excess of the balance in the bank
account.
17 TAXATION - NET
2007 2006
Opening balance 10,231 (8,904)

Add: provision / write back made for:
Current year 62,121 64,759

Prior years (41,583) (2,713)
20,538 62,046
Less: tax deducted at source / advance tax 84,154 42,911
Taxation (recoverable) / payable (53,385) 10,231
18. CURRENT PORTION OF NON-CURRENT LIABILITIES
Long term financing - secured 7 2,562,701 1,095,526

Term finance certificates - secured 8 71,250 112,900
2,727,702 1,286,584
93
19. CONTINGENCIES AND COMMITMENTS
19.1 Contingencies
Holding company
a) In framing the assessment for the assessment year 2002-03, the tax authorities has
assessed loss for the year at Rs. 16.486 million by charging to tax the dividend income
separately against the declared income of Rs. 5.101 million in addition to disallowing
profit and loss expenses previously accepted by them. The Holding company has disputed
the contention of the tax authorities for these demands and has filed appeal with the
Income Tax Appellate Tribunal against the order of the tax authorities. Pending the outcome
of the appeal no provision has been made in these financial statements for the additional
demand for the assessment year 2002-03, which on the basis adopted by the authorities
would amount to Rs. 2.541 million, since the company has strong grounds against the
assessment framed by the tax authorities.
b) The Holding company and the tax authorities has filed appeals before different appellate
authorities regarding sales tax matters. Pending the outcome of appeals filed by the
company and tax authorities, no provision has been made in these financial statements
which on the basis adopted by the authorities would amount to Rs. 33.473 million, since
the Holding company has strong grounds against the assessments framed by the tax
authorities.
Subsidiary company
a) The Subsidiary has filed writ petitions before the Lahore High Court (LHC) against the
legality of judgment passed by the Customs, Excise & Sales Tax Appellate Tribunal whereby
the Subsidiary was held liable on account of wrongful adjustment of input sales tax on
raw materials and electricity bills; the amount involved pending adjudication before the
LHC aggregate Rs. 13.252 million.
b) The Subsidiary has filed an appeal before the Customs, Central Excise and Sales Tax
Appellate Tribunal, Karachi against the order of the Deputy Collector Customs whereby
the refund claim of the Subsidiary amounting to Rs.12.350 million was rejected and the
Subsidiary was held liable to pay an amount of Rs.37.051 million by way of 10% customs
duty allegedly leviable in terms of SRO 584(I) / 95 and 585(I) / 95 dated 01 July, 1995.
The impugned demand was raised by the Department on the alleged ground that the
Subsidiary was not entitled to exemption from payment of customs duty and sales tax
in terms of SRO 279(I) / 94 dated 02 April, 1994.
The LHC, upon the Subsidiary's appeal, vide its order dated 06 November, 2001 has
decided the matter in favour of the Subsidiary; however, the Collector of Customs has
preferred a petition before the Supreme Court of Pakistan, which is pending adjudication.
c) The Additional Collector of Sales Tax, Faisalabad had preferred a petition before the
Supreme Court of Pakistan against the judgment dated 07 December, 1999 delivered by
the LHC in favour of the Subsidiary in a Customs Appeal. The Subsidiary, through the
said appeal, had challenged the finding given by the Tribunal that the Subsidiary had
wrongly adjusted input tax amounting Rs.88.490 million for the period from July, 1996
to June, 1997 involved in import of cement plant for the purpose of Phase-II of the
Subsidiary against the supply of cement manufactured by Phase-I of the Subsidiary. Levy
of penalty of Rs.10 million along with additional tax as well as rejection of the refund
claim of Rs.2.245 million were also challenged. The Supreme Court of Pakistan, vide its
order dated 07 January, 2000, had directed that status quo be maintained.
94
The Subsidiary has filed an application with the Central Board of Revenue (CBR) under
section 47A of the Sales
MapleTax
LeafAct, 1990Factory
Cement for appointment
Maple Leaf CementofFactory
Limited an Alternate Dispute Resolution
Limited
Committee (ADRC), which decided the case in favour of the Subsidiary. The Department
has issued the refund cheque amounting Rs.19 million on 31 January, 2006 and is also
in the process of withdrawing its appeal filed before the Supreme Court of Pakistan.
d) The CBR has filed an appeal before the Supreme Court of Pakistan against the judgment
delivered by the LHC in favour of the Subsidiary in a writ petition. The Subsidiary, through
the said writ petition, had challenged the demand raised by the CBR for payment of duties
and taxes on the plant & machinery imported by the Subsidiary pursuant to the exemption
granted in terms of SRO 484 (I) / 92 dated 14 May, 1992. The CBR, however, alleged
that the said plant & machinery could be locally manufactured and duties and taxes were
therefore not exempt. A total demand of Rs.1.387 billion was raised by the CBR out of
which an amount of Rs.269.328 million was deposited by the Subsidiary as undisputed
liability.
As regards the balance disputed amount, the matter was decided in favour of the Subsidiary
as per the judgment of the LHC. After preferring the appeal before the Supreme Court of
Pakistan, the matter has been referred to ADRC, Islamabad. No provision has been made
in these financial statements in respect of the aforementioned disputed demands aggregating
Rs. 1.118 billion as the management is confident that the ultimate outcome of this case
will be in favour of the Subsidiary.
e) The Subsidiary is negotiating with the Customs Authorities for refund of excess customs
duty amounting Rs.7.347 million paid on the import of two units of Volvo dump trucks.
The Customs, Central Excise & Sales Tax Appellate Tribunal, Karachi has allowed the
Subsidiary's appeal filed in this regard.
19.2 Commitments in respect of
a) Letters of credit for capital expenditure amount to Rs 370.141 million (2006: Rs 912.508
million).
b) Letters of credit other than for capital expenditure amount to Rs 286.388 million (2006:
Rs 1,177.386 million).
c) Guarantees issued by various commercial banks, in respect of financial and operational

obligations of the Subsidiary company, to various institutions and corporate bodies
aggregate Rs. 261.061 million as at 30 June, 2007 (2006: Rs. 241.475 million).
2007 2006
20. PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets 20.1 11,362,918 10,358,479

Capital work in progress 20.4 11,938,969 9,291,285
23,301,887 19,649,764
95
96
20.1 CONSOLIDATED OPERATING FIXED ASSETS

Description Disposal Cost / Rate Rate
Accumulated Net Book Depreciation Accumulated Net Book
Cost Additions Accumulated Cost
Depreciation
.............................(R u p e e s i n t h o u s a n d ).............................
Owned
Freehold land 174,572 - 174,572 - - 106,026 - 68,546 - 68,546 -
Office buildings 39,532 16,333 23,199 97 - 27,768 736 11,861 4,260 7,601 5-10
(12,809)
Factory buildings 1,606,534 660,655 945,879 271,799 - - 63,028 1,878,333 723,683 1,154,650 5-10
Other buildings 89,760 47,451 42,309 21,836 - - 4,192 111,596 51,643 59,953 5-10
Residential buildings 63,471 26,600 36,871 4,111 - - 2,445 67,582 29,045 38,537 5-10
School and hospital 2,294 717 1,577 200 - - 79 2,494 796 1,698 5-10
Plant and machinery 13,480,019 4,881,024 8,598,995 502,009 47,083 8,074 610,561 13,926,871 5,458,266 8,468,605 5-20
(28,337) (4,982)
Service and other equipment 29,671 17,885 11,786 188 25 - 1,159 29,834 19,023 10,811 10-30
(21)
Computer and IT installations 47,332 22,723 24,609 5,667 409 - 7,752 52,590 30,331 22,259 30
(144)
Furniture and fixture 144,059 73,827 70,232 41,973 2,040 492 15,059 183,500 88,217 95,283 10-30
(612) (57)
Office equipment 17,488 9,092 8,396 3,103 43 - 850 20,548 9,905 10,643 10
(37)
Quarry Equipments 136,426 116,891 19,535 - 4,902 - 3,900 131,524 115,929 15,595 20
(4,862)
Share of joint assets - Note 20.3 3,842 3,025 817 278 - - 99 4,120 3,124 996 10
Vehicles 169,988 74,421 95,567 17,196 12,797 45 18,056 174,342 82,910 91,432 20
(9,554) (13)
16,004,988 5,950,644 10,054,344 868,457 67,299 142,405 727,916 16,663,741 6,617,132 10,046,609
(43,567) (17,861)
Leased
Plant and machinery 340,248 59,309 280,939 1,089,864 111,462 - 28,907 1,318,650 52,059 1,266,591 10-20
(36,157)
Vehicles 6,914 1,984 4,930 7,661 - (45) 1,468 14,620 3,465 11,155 20
13
Quarry Equipments 18,575 309 18,266 28,740 - - 8,443 47,315 8,752 38,563 20
365,737 61,602 304,135 1,126,265 111,462 (45) 38,818 1,380,585 64,276 1,316,309
(36,157) 13
30 June 2007 16,370,725 6,012,246 10,358,479 1,994,722 178,761 142,360 766,734 18,044,326 6,681,408 11,362,918
(79,724) (17,848)
20.1.1 Addition to plant and machinery include mark up amounting to Rs. 49.922 million (2006: Rs. 84.800 million)
20.1.2 Deletion in leased assets represents the transfer to owned plant and machinery.
20.1.3 Depreciation charge for the year has been allocated as follows:
2007 2006
Cost of sales 36 719,343 590,253
Administrative expenses 38 27,160 26,513
Unallocated expenditure 14,273 9,355
Trial run operations 5,859 -
Other factory overheads 99 91
766,734 626,212
20.1.4 CONSOLIDATED OPERATING FIXED ASSETS
Description Disposal Cost / Transfer/Write Off Depreciation Rate
Accumulated Net Book Accumulated Net Book
Cost Additions Accumulated "Cost/Accumalted Cost
Depreciation Depreciation"
Owned
Freehold land 174,550 - 174,550 22 - - - 174,572 - 174,572 -
Office buildings 38,563 15,131 23,432 969 - - 1,202 39,532 16,333 23,199 5-10
Factory buildings 1,252,745 612,254 640,491 353,789 - - 48,401 1,606,534 660,655 945,879 5-10
Other buildings 82,283 43,791 38,492 7,477 - - 3,660 89,760 47,451 42,309 5-10
Residential buildings 61,467 24,462 37,005 2,004 - - 2,138 63,471 26,600 36,871 5-10
School and hospital 1,385 675 710 909 - - 42 2,294 717 1,577 5
Plant and machinery 10,831,704 4,660,537 6,171,167 3,015,526 244,529 122,682 502,367 13,480,019 4,881,024 8,598,995 5-20
(175,115) (106,765)
Service and other equipment 28,525 16,655 11,870 1,146 - - 1,230 29,671 17,885 11,786 10-30
Computer and IT installations 38,701 15,329 23,372 8,631 - - 7,394 47,332 22,723 24,609 10-30
Furniture and fixture 116,299 63,917 52,382 27,815 55 - 9,941 144,059 73,827 70,232 10-30
(31)
Office equipment 16,710 8,273 8,437 879 101 - 868 17,488 9,092 8,396 10-30
(49)
Quarry Equipments 130,860 113,181 17,679 5,566 - - 3,710 136,426 116,891 19,535 20
Share of joint assets - Note : 20.3 3,608 2,934 674 234 - - 91 3,842 3,025 817 10
Vehicles 133,111 66,292 66,819 49,613 12,736 - 15,595 169,988 74,421 95,567 20
(7,466)
12,910,511 5,643,431 7,267,080 3,474,580 257,421 122,682 596,639 16,004,988 5,950,644 10,054,344
(182,661) (106,765)
Leased
Plant and machinery 489,800 106,973 382,827 86,147 235,699 - 28,317 340,248 59,309 280,939 10
(75,981)
Vehicles 6,914 1,037 5,877 - - - 947 6,914 1,984 4,930 20
Quarry Equipments - - - 18,575 - - 309 18,575 309 18,266 20
496,714 108,010 388,704 104,722 235,699 - 29,573 365,737 61,602 304,135

(75,981) -
30 June 2006 13,407,225 5,751,441 7,655,784 3,579,302 493,120 122,682 626,212 16,370,725 6,012,246 10,358,479
(258,642) (106,765)
97
98
20.1.5 DETAIL OF ASSETS DISPODED OFF DURING THE YEAR

Description Accumulated Sale Proceed / Profit/ (Loss)
Qty Cost WDV Mode of Sale SOLD TO / Received from
Depreciation claim received
Compressor Air & Water Cool 1 1,029 701 328 686 358 Negotiation S.S.Q Textile Traders, Faisalabad
Carding Machine with canes 1 1,234 960 274 340 66 Negotiation Chawala Spinning Mills limited 26-K.M Shekupura Road FSD
Blow Room Machinery 1 788 160 628 600 (28) Negotiation Al-Barkat Textile, Lahore Road, Sheikhupura
Steam Pressure reducing Valve 1 311 - 311 311 - Negotiation Return of Compressor
Scuture Machine 2 1,370 986 384 520 136 Negotiation Al-Barkat Enterprises, Sheikhupura
Sunforising Machine 1 295 177 118 56 (62) Negotiation Abdullah Enterprises, Faisalabad
Roap Washing Type With s/s tank 1 253 102 151 458 307 Negotiation Mehrban Traders Summandri road Dar-ul-Islam Town Faisalabad
Spindle with bolster 2450 1,348 1,274 74 44 (30) Negotiation Ghulam Sarwar, Gujarkhan.
06 Combers, 01 Unilap 1 9,901 7,887 2,014 2,500 486 Negotiation Ghazi Fabrics, Lahore.
Mitsubishi Generator Set 1 1,904 1,189 715 800 85 Negotiation Mr. Amir Bashir Khan
HFO Tank 1 7,160 866 6,294 6,294 - Transfer to lease Faysal Bank Ltd.
Weigh bridge 1 765 592 173 142 (31) Negotiation Mohammad Rafique, Faisalabad
Scutcher Model 1990 1 1,370 1,270 100 452 352 Negotiation M/S Al-Barkat Ent.
Demni & Lighting Arrestor 2 343 116 227 262 35 Insurarnce Claim EFU Insurance Company, 1st floor, Mak Plaza, 130 E-1,Gulberg-3
Suzuki Swift RIW 4825 1 393 333 60 300 240 Negotiation Bilal Ahmend S/o Abdul Aziz H. No 3 Meraj St No 4 Iehhra Lahore
Suzuki Swift RIV 1414 1 383 320 63 255 192 Negotiation Munir Ahmed Ward No 2-B H No 383/2 Ghandi Mandi Bahawal-ud- Din
Suzuki Swift RIW 4463 1 393 329 64 255 191 Negotiation Asif Mehmood H no C-672 St No 14 Lala Rukh Colony POF Wah Cantt
Honda Civic Ex RIY 2751 1 969 590 379 560 181 Negotiation Naveed Iqbal H No 13 A Shaigon Colony New Lalazar RWP
Baleno ABW-413 1 565 457 108 350 242 Negotiation Mr. Mohammad Shahid, Karachi
Tractor 1 621 287 334 541 207 Negotiation Dad Gul, Main Manga Raiwind Road, Kasur
Toyotta Corolla LZV 3899 1 1,067 305 762 825 63 Negotiation Kashif Manzoor, 141-A Lalazar Scheme Phase # 1 Lahore
Honda Civic RIY-502 1 924 673 251 605 354 Negotiation Mr. Shahid Muneer, Lahore
Suzuki Saloon RIW-4947 1 403 343 60 262 202 Negotiation Mr. Ehsan Ullah Khan, Rawalpindi
V-SAT Equipment 1 2,040 612 1,428 1,612 184 Insurarnce Claim EFU General Insurance Company Ltd.
Toyota Corolla 1 967 722 245 364 119 Negotiation Mr. Arshad Mahmood Quershi - employee.
Toyota Corolla 1 967 722 245 364 119 Negotiation Mr. Rab Nawaz Khan - employee.
Toyota Corolla 1 1,029 768 261 381 120 Negotiation Muhammad Razaq Khan - employee.
Suzuki Margalla 1 538 469 69 401 332 Negotiation Abdul Latif Khan, Iskanderabad.
Toyota Corolla 1 864 814 50 475 425 Negotiation Raja Zafar Hussain, Iskanderabad.
Toyota Corolla 1 625 536 89 467 378 Negotiation Mr. Said Aamir, Mianwali.
Items of net book value below
Rs. 50,000 each - 7,480 7,141 339 5,054 4,715 Negotiation
2007 67,299 43,567 23,732 38,688 14,956
2006 257,421 182,661 74,760 82,889 8,129
20.2 The Subsidiary has given on lease, land measuring 6 Kanals and 18 Marlas to Sui Northern
Gas Pipelines Ltd. in the year 1991 at an annual rent of Rupees 2,500.
20.3 Ownership of the housing colony assets included in the operating fixed assets is shared by the
Subsidiary company jointly with Pak American Fertilizer Limited in the ratio of 101:245 since
the time when both the companies were managed by Pakistan Industrial Development Corporation
(PIDC). These assets are in possession of the housing colony establishment for mutual benefits.
The cost of these assets atMaple Leaf Cement
the year-end Factory
Maple
were Limited
as follows:
2007 2006
- buildings 2,389 2,138
- roads and bridge 202 202
- air strip 16 16
- plant and machinery 271 257
- furniture, fixtures and equipment 1,078 1,065
- vehicles 164 164
4,120 3,842
20.4 CAPITAL WORK IN PROGRESS
Civil works 136,715 108,248
Plant & machinery 8,238,086 7,762,375
Mechanical works 1,320,122 490,711
Electrical works 480,318 83,007
Un-allocated capital expenditure 20.5 1,569,449 492,073
Stores and spares held for capital expenditure 77,888 172,187
Advances to suppliers against:
- plant and machinery 111,432 78,968
- civil works 636 280
- vehicles 1,537 -
- furniture, fixtures & equipment 332 1,616
- electrical works 2,454 101,820
11,938,969 9,291,285
20.5 Un-allocated capital expenditure - net
- salaries and wages 85,249 35,172
- travelling 9,155 6,622
- vehicles' running and maintenance 6,372 2,777
- training 431 410
- financial expenses 1,020,151 427,488
- printing & stationery 4,124 1,960
- postage, telegram and telephone 2,706 983
- legal and professional 28,501 1,185
- consultancy 6,632 1,113
- depreciation 18,011 3,737
- insurance 4,972 8,523
- rent, rates and taxes 1,321 1,292
- repair and maintenance 990 302
- electricity and power 13,285 -
- loss on trial run operations 20.6 351,576 -
- others 20,013 4,549
1,573,489 496,113
Less: mark-up on deposits 4,040 4,040
1,569,449 492,073
99
20.6 Trial run operations : 01 March 2007 to 30 June 2007

Maple
Maple Leaf Cement Cement Factory2007
LeafLimited
Factory Limited 2006
Gross sales 123,024
Less:
- excise duty 18,468 -
- sales tax 9,739 -
- commission 233 -
28,440 -
Sales - net 94,584 -

Cost of sales
Raw materials consumed 35,845 -
Fuel and power 396,464 -
Stores and spares consumed 15,612 -
Salaries, wages and amenities 23,295 -
Rent, rates and taxes 934 -
Repair and maintenance 1,317 -
Depreciation 5,859 -
Other expenses 4,925 -
484,251 -
Work-in-process transferred to normal

operations during trial run operations
for further processing (198,618) -
Closing work-in-process (141,702) -
(340,320) -
Finished goods transferred to normal

operations during trial run operations
for further processing (26,313) -
Closing finished goods (29,799) -
(56,112) -
87,819 -
Trial run gross profit 6,765 -

Less:
- Distribution cost 13,949 -
- Finance cost 358,605 -
372,554 -
(365,789) -
Other income 14,213 -
Trial run net loss (351,576) -
20.7 Operations of the expansion project for new production line of 6,700 tpd clinker capacity of
grey cement plant (the project) for the period from 01 March, 2007 to 30 June, 2007 have been
treated as trial run operations due to intermittent plant and machinery shut downs and the fact
that cement mills and packing plant of the project were still not fully complete by the year-end.
100
Maple Limited
21 INVESTMENT PROPERTY
The fair value of the investment properties having carrying value of Rupees 120,985 thousand has
been determined by an independent valuer Messrs Hasib Associates (Private) Limited at Rupees
1,384,577 thousand as at 28 December 2006 on the basis of their professional assessment of the
current prices in an active market for similar properties in the same location and condition. The
difference of Rupees 1,263,592 thousand between carrying amount and fair value of investment
property is shown as surplus on investment property on the face of the balance sheet in accordance
with the requirements of IAS-40 "Investment Property".
22 INTANGIBLE ASSETS
2007 2006
Opening balance - -
Add: Addition during the year 6,769 -
6,769 -
Less: Amortization charged for the year 2,191 -
Book Value as at 30 June 2007 4,578 -
23 LONG TERM INVESTMENTS
Investment in related party - available for sale
Unquoted:
Security General Insurance Company Limited - 5,000
Nil (2006 : 812,514) Ordinary shares of Rupees
10 each fully paid
Equity held Nil% (2007 : 6.71%)
Surplus on revaluation of investment - 12,395
- 17,395
23.1 As the managment intends to sale this investment during financial year 2007-2008, this has
been classified under current assets as on 30 June 2007.
24 LONG TERM LOANS TO EMPLOYEES - Secured
2007 2006
House building 6,749 8,245

Vehicles 2,709 2,086
Others 378 346
9,836 10,677
Less: recoverable within one year 3,463 3,550
6,373 7,127
24.1 These loans relate to subsidiary and are secured against charge / lien on employees' retirement
benefits and carry interest at the rates ranging from 6% to 12% per annum. These loans are
recoverable in monthly instalments ranging from 30 to 120.
24.2 No amount was due from directors and chief executive at the year-end (2006: Rs. Nil).
24.3 Out of the opening receivable balance of Rs. 47 thousand from an executive, an amount of
Rs. 21 thousand was received during the year; balance of Rs. 26 thousand was receivable as
at 30 June 2007. No other loans were advanced to executives during the current year.
101
Maple Limited
25 LONG TERM DEPOSITS AND PREPAYMENTS

2007 2006
Security deposits 71,857 47,334

Maple Leaf
Limited
74,357 50,167
Less: current portion 31 3,022 16,680
71,335 33,487
26 GOODWILL
Goodwill arised on acquisition of subsidiary (486,903) (486,903)
Less: Accumulated amortization at the beginning of the year 243,453 194,763
Less: Amortization for the year - 48,690
Less: Transferred to retained earning 3.11 243,450 -
486,903 243,453
- (243,450)
27 STORES, SPARES AND LOOSE TOOLS
Stores including in transit Rs 54.015 million
(2006: Rs. 29.938 million) 1,154,560 1,353,539
Spares including in transit Rs 165.283 million
(2006: Rs 117.025 million) 1,120,597 995,464
Tools 23,651 15,890
2,298,808 2,364,893
Less: Provision for obsolescence - 14,097
2,298,808 2,350,796
27.1 Out of the year-end inventory, inventory valuing Rs.208.713 million and Rs. 210.479 million
are in possession of Descon Engineering Ltd. and Heavy Mechanical Complex (Pvt.) Ltd.
respectively.
28 STOCK-IN-TRADE
2007 2006
Raw material including in transit Rupees 36.515 million

(2006: Rupees 218.738 million) 734,057 713,209
Packing material 18,146 20,521
Work in process 360,378 233,791
Finished goods 1,012,225 841,220
2,124,806 1,808,741
29. TRADE DEBTS

Considered good 1,256,334 1,050,866
Considered doubtful 923 9,380
1,257,257 1,060,246
Less: Provision for doubtful debts 923 9,380
1,256,334 1,050,866
102
30. LOANS AND ADVANCES - considered good
2007 2006
Current portion of long term loans to employees 3,463 3,550

Due from a related party (DG Khan Cement
Company Ltd. - considered good) 1,158 -
Advances to:
- Executives 4,654 8,760
- Other Employees 4,512 6,202
- Suppliers 204,116 391,080
213,282 406,042
Letters of credit 6,189 8,195
224,092 417,787
31. SECURITY DEPOSITS AND SHORT TERM PREPAYMENTS
Current portion of security deposits 25 3,022 16,680

Margin against letter of credit 2,050 316
29,836 27,320
32. OTHER RECEIVABLES
Sales tax refundable 185,128 154,660

Custom duty receivable 16,079 16,079
Excise duty 20,945 17,814
Export rebate 30,296 27,051
Insurance claims 1,039 776
Research and development support 55,181 -
Others 14,755 10,048
323,423 226,428
33. SHORT TERM INVESTMENTS - available for sale
Holding company
Unquoted

1,706,278 (2006 : 1,137,519) Ordinary shares of
Rs. 10 each fully paid.
Equity held 9.40% (2006 : 9.40%)
Surplus on revalution of investment 33.1 897,327 -
904,327 7,000
103
Maple Limited
Subsidiary company
Unquoted
2007 2006

1,218,771 (2006 : Nil) Ordinary shares of
Rs. 10 each fully paid.
Equity held 6.71% (2006 : Nil%)
Surplus on revalution of investment 33.2 739,669 -
744,669 -
KASB Liquid Fund 33.3 200,000 -
944,669 -
1,848,996 7,000
33.1 Break up value of Rupees 530 per share was calculated using assets based valuation technique
on the basis of market / financial value of assets as per unaudited accounts for the period ended
30 June 2007 less safety margin @ 20% (2006: Break up value of Rupees 30.35 per share
as per unaudited accounts for the period ended 30 June 2006).
33.2 Fair value of available-for-sale un-quoted investments, effective from the current year, is being
determined by using appropriate valuation techniques as permissible under IAS 39 (Financial
Instruments: Recognition and Measurement). The fair value of these investments, upto
30 June 2006, was determined by reference to the net assets of the investee on the basis of
latest available audited financial statements.
The fair value of investments has been determined based on the valuation reports prepared by
independent Valuers M/s Maqbool Haroon and Company, Chartered Accountants 47-C-3,
Gulberg III, Lahore.
33.3 This represents 1,802,289 Units of KASB Liquid Fund purchased at a price of Rs.110.97 per
Unit; this investment has been fully redeemed on 11 July 2007.
34. CASH AND BANK BALANCES
2007 2006
Cash in hand including in transit Rs. 0.262 million
(2006:1.183 million) 1,848 4,452
Cash at bank:
On current accounts 34.1 76,754 478,972
On deposit accounts 34.2 27,958 1,859
On Profit and loss accounts 34.3 80,530 52,466
185,242 533,297
187,090 537,749
34.1 The balances in current and deposit accounts include US $ 167,296 (2006: US $ 46,145)
34.2 Current accounts include a sum of Rupees 14.733 million (2006:14.774 million) held by various
banks as margin against guarantees issued by them.
34.3 The balances in deposit accounts carry interest ranging from 0.10% to 4.92% (2006: from
1.50% to 4.47%) per annum.
34.4 Profit and loss sharing accounts bear mark up at the rates ranging from 1% to 3% (2006: from
1% to 3%) per annum.
104
35. SALES
2007 2006
Export 4,228,388 3,694,497

Local - net of sales tax and excise duty 35.1 6,694,563 8,989,332
Maple Limited
10,922,951 12,683,829
35.1 Local sales are exclusive of excise duty amounting to Rs 1,024.041 million (2006: Rs. 1,128.106
million) and sales tax amounting to Rs 705.845 million (2006 : Rs. 1,036.977 million).
36. COST OF SALES

2007 2006
Raw materials consumed 36.1 2,682,131 2,749,162

Salaries, wages and other benefits 619,655 549,284
Dyes and chemicals consumed 363,582 383,038
Processing charges 3,360 18,609
Stores and spares consumed 399,520 376,130
Packing materials 483,408 417,832
Fuel and power 2,513,067 2,930,336
Repair and maintenance 63,087 78,010
Insurance 28,495 23,342
Other factory overheads 126,054 114,185
Depreciation and amortisation 20.1.3 721,534 590,253
8,022,790 8,245,951
Work-in-process
Transfer from Trial run operations 198,618 11,842
Closing stock (218,676) (233,791)
213,733 (25,623)
Cost of goods manufactured 8,236,523 8,220,328
Finished goods
Transfer from Trial run operations 26,313 7,109
Closing stock (208,371 (210,935)
(28,877) 27,789
Cost of sales - own manufactured goods 8,265,400 8,248,117
Opening stock of purchased finished goods 630,285 296,469
Add: Finished goods purchased 1,372,661 1,519,115
2,002,946 1,815,584
Less: Closing stock of purchased finished goods 774,055 630,285
Cost of sales - purchased finished goods 1,228,891 1,185,299
9,494,291 9,433,416
105
Maple Limited
36.1 Raw material consumed

2007 2006
Add: Purchase 2,878,893 2,698,752
Maple Leaf
Limited 3,373,364
Cement Factory Limited 3,243,633
Less: Closing stock 691,233 494,471
2,682,131 2,749,162
37. SELLING AND DISTRIBUTION EXPENSES
Provident fund contributions 995 803
Outward freight and handling 30,697 3,707
Clearing and forwarding 145,483 141,758
Insurance 507 1,260
Electricity, gas and water 342 401
Legal and professional 172 139
Sales promotion and advertisement 13,324 19,990
Commission to selling agents 252,000 260,660
515,055 502,263
38. ADMINISTRATIVE EXPENSES
Repairs and maintenance 7,213 7,371
Rent, rates and taxes 4,272 9,295
Insurance 1,392 1,516
Printing, stationery and periodicals 5,497 6,859
Electricity, gas and water 567 1,602
Legal and professional 4,786 5,477
Provision for obsolete stores and spares 2,273 697
Research and development 38.1 65 -
Security, gardening and sanitation 9,591 6,508
Depreciation 20.1.3 27,160 26,513
202,038 184,291
38.1 Research and development
Support on account of research and development 112,405 -
Less : Utilization
Product development 89,862 -
Professional consultancy 8,068 -
Participation in exhibition 14,540 -
112,470 -
65 -
106
Maple Limited
38.2 The research and development support has been given by Ministry of Commerce, Government
of Pakistan vide SRO 803(1)/2006 dated 04 August 2006 in order to encourage and regulate
the research and development in textile sector.
39. OTHER OPERATING EXPENSES
2007 2006
Maple Leaf
Limited
Auditors' remuneration 39.1 1,477 1,620
Donations 39.2 22,835 29,783
Property, plant and equipment written-off - 12,019
Workers' profit participation fund 14.1 - 88,491
Sales tax in compliance of Supreme Court Judgment 7,071 -
31,383 131,913
39.1 Auditors' remuneration
Statutory Audit fee 725 600
Certification including half yearly review 570 460
Other consultancy services and out of pocket expenses 182 560
1,477 1,620
39.2 None of the directors and their spouses have any interest in the donees' fund.
40. OTHER OPERATING INCOME
Income from financial assets:
Exchange gain - 2,405
Unclaimed balances written back - net - 220
Return on bank deposits 2,341 6,397
2,341 9,022
Income from related parties:
Dividend income : Security General Insurance Company Limited 14,625 3,900
Income from non-financial assets:
Scrap sales 58,578 34,043
Gain on disposal of property, plant and equipment 14,956 8,129
Gain on disposal of investments - 308,464
Loss on sale of stores - (23,975)
Amortization of goodwill - 48,690
Miscellaneous 3,408 7,319
76,942 382,670
93,908 395,592
41. FINANCE COST
Mark-up/finance charges/ interest on:
Workers' profit participation fund 167 244
908,495 759,378
Bank charges and commission 24,780 23,255
Exchange loss 9,129 6,417
942,404 789,050
107
42. PROVISION FOR TAXATION

2007 2006
Current year
Current 62,121 64,759
Deferred (191,075) 570,308
Maple Limited
128,954 635,067
Prior year
Current (41,583) (2,713)
(170,537) 632,354
42.1 Tax charge reconciliation % %
Numerical reconciliation between the average effective

tax rate and the applicable tax rate:
Applicable tax rate as per Income Tax Ordinance, 2001 - 35.00
Tax effect of amounts that are:

Tax effect under presumptive tax regime and others - (31.95)
Effect of changes in prior years tax - (0.01)
Deferred tax - 27.98
- (3.98)
Average effective tax rate charged to profit and loss account - 31.02
Numeric tax reconciliation is not given as the Group is liable for minimum tax
43. STAFF RETIREMENT BENEFITS - Gratuity
The future contribution rates of this scheme include allowance for deficit and surplus. Projected unit
credit method, based on the following significant assumptions, is used for valuation of this plan:
2007 2006
- discount rate 10% 9%

- expected return on plan assets 14% 14%
- expected rate of growth per annum in future salaries 9% 8%
- average expected remaining working life time of employees 11 years 11 years
43.1 The amounts recognised in the balance sheet are as follows:

2007 2006
Fair value of plan assets 60,785 100,830

Present value of defined benefit obligation (46,512) (45,937)
Benefits payable to Supervisors and Officers - Note: 43.7 - (57,306)
Benefits payable to outgoing Members (603) (925)
Surplus / (deficit) 13,670 (3,338)
Unrecognised actuarial gain / (loss) 5,131 (1,298)
Net asset / (liability) as at 30 June, 8,539 (2,040)
108
MapleLimited
43.2 Movement in net (liability) / asset recognized in the balance sheet is as follows:
2007 2006
Net (liability) / asset as at 01 July, (2,040) 69,670
Credit / (charge) to profit and loss account 7,799 (2,040)
Payments to fund during the year 2,780 5,013
Funds transferred from gratuity trust - (74,009)
Other miscellaneous adjustments - (674)
Net asset / (liability) as at 30 June, 8,539 (2,040)
43.3 The movement in the present value of defined benefit obligation is as follows:
Present value of defined benefit obligation 45,937 74,066

Current service cost 2,725 7,632
Interest cost 4,134 6,666
Benefits paid (1,856) (5,013)
Benefits payable to Supervisors and Officers - Note : 43.1 - (57,306)
Loss on present value of defined benefit obligation due to
settlements to Supervisors and Officers - Note : 43.1 - 8,436
Benefits payable to outgoing Members (603) (925)
Actuarial (gain) / loss (3,825) 12,381
Present value of defined benefit obligation 46,512 45,937
43.4 The movement in the fair value of plan assets is as follows:
Fair value of plan assets as at 01 July, 100,830 147,812

Expected return on plan assets 14,116 20,694
Contributions 2,781 -
Benefits paid (59,545) (5,013)
Funds transferred to the Company - (69,670)
Actuarial gain 2,603 7,007
Fair value of plan assets as at 30 June, 60,785 100,830
43.5 Plan assets comprise of:

Defence Saving Certificates
(including accrued interest less zakat) 17,606 65,547
National Investment Trust Units 39,339 30,852
Cash at bank 3,840 4,431
60,785 100,830
43.6 Comparison of present value of defined benefit obligation, the fair value of plan assets and the
surplus or deficit of gratuity fund for five years is as follows:
2007 2006 2005 2004 2003
..................(Rupees in thousand)..................
Present value of defined benefit
obligation (46,512) (45,937) (74,066) (64,803) (53,036)
Fair value of plan assets 60,785 100,830 147,812 125,714 109,331
Surplus 14,273 54,893 73,746 60,911 56,295
..................(Percentage)..................
Experience adjustment on obligation -8.22% 26.95% 2.05% 10.41% N/A
Experience adjustment on plan assets 4.28% 6.95% 3.47% 86.00% N/A
109
43.7 The Subsidiary company had withdrawn gratuity benefits for its Officers and Supervisors with
effect from 01 July 2006; therefore, their accrued benefits were calculated on termination basis
as at 30 June 2006.
43.8 The Subsidiary company's policy with regard to actuarial gains / losses is to follow the minimum
recommended approach under
Maple IAS
Leaf 19 (Employee
Cement Factory Benefits).
Maple Limited
43.9 The latest actuarial valuation of the gratuity scheme has been carried-out on 30 June 2007.
44. CASH GENERATED FROM OPERATIONS

2007 2006
Profit / (Loss) before taxation (168,312) 2,038,488
Adjustment for non-cash charges and other items:
Depreciation 766,735 626,212

Amortization of goodwill - (48,690)
Amortization of intangible assets 2,191 -
Finance cost 942,404 789,050
Gain on sale of fixed assets (14,956) (8,129)
Gain on sale of investments - (308,464)
Employees' compensated absences 6,979 -
Deferred liability for vacation benefits - 3,437
Dividend income (14,625) (3,900)
Return on bank deposits (2,341) (6,397)
Provision for obsolete stores - 697
Property, plant and equipment written-off - 12,019
Unclaimed balances written-back - (220)
Provision for WPPF - 88,491
Working capital changes 44.1 (532,595) (1,209,993)
985,480 1,972,601
44.1 Working capital changes
(Increase)/ decrease in current assets:

Stores and spares 51,988 (782,927)
Stock-in-trade (316,065) (512,839)
Trade debts (205,468) (317,887)
Advances 193,695 (374,610)
Gratuity fund trust (8,539) 69,670
Security deposits and short term prepayments (2,516) 17,974
Other receivables (97,635) 86,895
(384,540) (1,813,724)
Increase/ (decrease) in current liabilities

Trade and other payables (148,055) 603,731
(532,595) (1,209,993)
110
45. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES
The aggregate amount charged in the financial statements for the year for remuneration including
certain benefits to the chief executive, directors and executives of the Group is as follows:
Chief Executive Directors Executive

2007 2006 2007 2006 2007 2006
Number of persons 2 2 6 5 39 33
..............(R u p e e s i n t h o u s a n d )..............
Managerial remuneration 5,761 4,844 12,386 8,196 37,040 30,514

Contribution to provident fund 550 382 87 219 2,322 1,699
Housing and utilities 252 608 2,404 2,562 12,827 10,535
Medical 596 152 879 666 1,340 857
Group insurance 138 138 52 52 11 9
Club subscription 103 51 - - - -
Others 155 215 449 388 6,776 7,003
7,555 6,390 16,257 12,083 60,316 50,617
The Chief Executive Officer and directors are provided with free transport, residential telephone facilities
for both business and personal use and free medical facilities. Chief Executive is also provided free
furnished accommodation.
Executives are provided with free use of company maintained vehicles in accordance with the Company
policy.
The aggregate amount charged in the financial statements in respect of directors' fee paid to 6 (2006:
5) directors was Rs. 134 thousand (2006: Rs 145 thousand).
46. TRANSACTIONS WITH RELATED PARTIES
Transaction and contracts with the related parties are carried out at arm’s length prices determined
in accordance with comparable uncontrolled price method except in circumstances where it is in the
interest of the Group to do so with prior approval of the board of director.
The related parties comprise of subsidiary, associated companies, directors of the company, key
management personnel and staff retirement fund. Detail of transactions with related parties, other than
those which have been specifically disclosed elsewhere in these financial statements are as follows:
Associates
2007 2006
Purchase of goods and services 377 1,901

Purchase of fixed assets 1,060 -
Dividend incom - 3,900
Post employment benefits plan

Contribution to provident fund 46.1 21,728 18,641
Contribution to gratuity fund 1,856 5,013
46.1 Contributions to the provident fund are in accordance with the terms of the entitlement of
employees.
111
47. EARNING PER SHARE - BASIC AND DILUTED
2007 2006
Net profit for the year Rupees in thousand 2,225 1,406,134
Weighted average ordinary shares in issue Numbers 122,650,292 119,913,602
Basic earning per share Rupees 0.02 11.73
No figure for diluted earnings per share has been presented as the Group has not issued any instrument
carrying options which would have an impact on the basic earnings per share, when exercised.
48. PLANT CAPACITY AND ACTUAL PRODUCTION
SPINNING:
Rawalpindi Division (Numbers)
Gujar Khan Division (Numbers)

3 shifts per day for 1,093 shifts (2006: 1,092 shifts ) 27,713 25,219
WEAVING:
Raiwind Division (Numbers)
Looms installed / worked 204 204
(Square meters in thousand)

100% Plant capacity at 60 picks based on 3 shifts per day
for 1,093 shifts (2006: 1,095 shifts) 84,875 84,875
Actual production converted to 60 picks based on 3 shifts
PROCESSING OF CLOTH (Meters in thousand)

Capacity at 3 shifts per day for 1,089 shifts
(2006: 1,094 shifts) 50,310 50,150
Actual at 3 shifts per day for 1,089 shifts (2006: 1,094 shifts) 27,358 30,855
112
POWER PLANT:
(Mega Watts)
Rawalpindi
Annual rated capacity (based on 365 days) 149,270 102,667
Actual generation
Main engines 43,784 65,454
Gas engines 25,440 -
Standby generators 1,180 1,180
Raiwind
Annual rated capacity (based on 365 days) 54,312 -
Actual generation
Gas engines 10,565 -
Standby generators 23 -
CEMENT
(Metric tonnes in thousand)
Clinker:
Grey
Annual rated capacity (Based on 300 days) 1,500 1,500
Annual production for the year 1,126 1,401
White
Annual rated capacity (Based on 300 days) 180 67
Annual production for the year 61 32
REASONS FOR LOW PRODUCTION
Due to stoppage for normal maintenance, doffing, change of spin plans and cloth quality, interruption
in gas supply.
Cloth processing units working capacity was limited to actual export / local orders in hand.
The generation of power was limited to actual demand.
Shortfall in production of grey cement was mainly due to break-down in cement mills and market
constraints.
Shortfall in production of white cement was mainly due to market constraints.
113
114
49. CONSOLIDATED FINANCIAL INSTRUMENTS

2007 2006
Exposed to interest / Exposed to interest / Exposed to interest / Exposed to interest /
markup rate price risk markup rate cash flow risk Not markup rate price risk markup rate cash flow risk Not
exposed exposed
Total More than More than to interest / Total More than More than to interest /
Within one year Within one year markup Within one year More than Within one year More than markup
one year and upto one year and upto rate risk one year and upto five years one year and upto five years rate risk
five years five years five years five years
.......................(R u p e e s i n t h o u s a n d ) . . . . . . . . . . . . ... . . . . . . . .
LIABILITIES
Long term financing 13,849,996 - - 2,562,701 11,279,818 7,477 11,465,073 - - - 1,095,526 10,362,070 - 7,477
Term finance certificates 71,250 - - 71,250 - - 184,150 - - - 112,900 71,250 - -
Liabilities against Leased assets 1,269,110 93,751 1,175,359 - - - 315,917 78,158 237,759 - - - - -
Long term deposits 2,702 - - - - 2,702 2,977 - - - - - - 2,977
Trade and other payables 1,173,905 - - - - 1,173,905 1,432,435 - - - - - - 1,432,435
Accrued mark up 437,894 - - - - 437,894 359,961 - - - - - - 359,961
Short term borrowings 3,573,090 3,573,090 - - - - 3,183,994 3,180,526 - - - - - 3,468
20,377,947 3,666,841 1,175,359 2,633,951 11,279,818 1,621,978 16,944,507 3,258,684 237,759 - 1,208,426 10,433,320 - 1,806,318
ASSETS
Long term investments - - - - - - 17,395 - - - - - - 17,395
Long term loans to employees 9,836 - - 3,463 6,373 - 10,677 - - - 3,550 7,127 - -
Long term deposits and prepayments 71,857 - - - - 71,857 47,334 - - - - - - 47,334
Trade debts 1,256,334 - - - - 1,256,334 1,050,866 - - - - - - 1,050,866
Loans and advances 10,324 - - - - 10,324 14,962 - - - - - - 14,962
Fair value derivative financial instruments 242,226 - - - - 242,226 - - - - - - - -
Due from gratuity fund trust 8,539 - - - - 8,539 - - - - - - - -
Accrued interest 788 - - - - 788 1,140 - - - - - - 1,140
Other receivables 70,975 - - - - 70,975 10,824 - - - - - - 10,824
Short term investments 1,848,996 - - - - 1,848,996 7,000 - - - - - - 7,000
Cash and bank balances 187,090 108,488 - - - 78,602 537,749 54,325 - - - - - 483,424
3,709,965 108,488 - 3,463 6,373 3,588,641 1,697,947 54,325 - - 3,550 7,127 - 1,632,945
Total interest / mark up rate sensitivity gap (16,670,982) (3,558,353) (1,175,359) (2,630,488) (11,273,445) 1,966,663 (15,246,560) (3,204,359) (237,759) - (1,204,876) (10,426,193) - (173,373)
Unrecognized financial instruments

Commitments for Capital expenditure 370,141 - - - - 370,141 912,508 - - - - - - 912,508
Letter of credit other than for capital expenditure 286,388 - - - - 286,388 1,177,386 - - - - - - 1,177,386
49.1 Effective Interest / Mark up rates
The Company's exposure to interest / mark up effective rates on its financial assets and financial
liabilities are summarized as follows:
2007 2006
Percentage
Financial Assets
Profit on bank deposits 00.10 to 04.92 01.00 to 04.47
Long term loans 06.00 to 13.40 9.46 to 12.75
Term finance certificates 11.54 to 12.56 9.86 to 11.54
Liabilities against assets subject to finance leases 06.00 to 16.28 8.50 to 17.00
Short term finances 06.12 to 12.92 4.53 to 13.00
49.2 Financial risk management, objectives and policies
The Group finances its operations through equity, borrowings and management of working
capital with a view to maintaining an appropriate mix between various sources of finance to
minimize risk. Taken as a whole, the Group's risk arising from financial instruments is limited
as there is no significant exposure to price and cash flow risk in respect of such instruments.
a) Foreign exchange risk
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes
in foreign exchange rates. Foreign currency risk arises mainly where receivables and payables
exist due to transactions with foreign undertakings. The Group uses forward foreign exchange
contracts to hedge its foreign currency risk, when considered appropriate.
b) Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to
changes in market interest rates. The Group has long term Rupee based loans at variable
rates and fixed rates. Variable rate Rupee loans risks are minimised by instituting State Bank
of Pakistan discount rate along with caps and floors. This protects the Group against any
adverse movement in market interest rates.
c) Credit risk
Credit risk represents the risk of a loss if the counter parties fail to perform as contracted.
The Group's credit risk is primarily attributable to its receivables and its bank balances. The
credit risk on liquid funds is limited because the counter parties are bank with reasonably
high credit rating. Out of total financial assets of Rs 3,709.987 million (2006: Rs 1,697.947
million), the financial assets which are subject to credit risk amounted to Rs 1,796.603
million (2006: Rs 949.628 million). The Company believes that it is not exposed to major
concentration of credit risk. To manage exposure of credit risk, the Group applies credit
limits to its customers. Exports are mainly against banks' letter of credit.
d) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulties in raising funds to meet
commitments associated with financial instruments. The Group follows an effective cash
management and planning policy to ensure availability of funds and to take appropriate
measures for new requirements.
115
49.3 Fair value of financial assets and liabilities
The carrying values of all financial assets and liabilities reflected in the financial statements
approximate their fair values.
50. NON ADJUSTING EVENTS AFTER BALANCE SHEET DATE
The Board of Directors in their meeting held on 29 September 2007 have proposed Nil % bonus
shares amounting to Rs. Nil million(2006 : 10% : Rs. 105.837 million) and transfer of dividend
equalisation reserve to unappropriated profit for approval of the members at the annual general meeting
to be held on 29 October 2007. The financial statements for the year ended 30 June 2007 do not
include the effect of transfer of dividend equalisation reserve to unappropriated profit, which will be
accounted for in the financial statements for the year ending 30 June 2008.
51. DATE OF AUTHORIZATION FOR ISSUE
These financial statements were authorised for issue on 29 September 2007 by the Board of Directors
of the Company.
52. GENERAL
52.1 No significant reclassification / rearrangement of comparative figures has been made.
52.2 Figures have been rounded off to the nearest thousand of rupees unless stated otherwise.
116
42-LAWRENCE ROAD, LAHORE
PROXY FORM
I/We
of
being a member of KOHINOOR TEXTILE MILLS LIMITED hereby appoit
(Name)
of another member of the Company
or failing him/her
(Name)
of another member of the Company
(being a member of the Company) as my/our proxy to attend and vote for and on my/our behalf, at the Annual
General Meeting of the Company to be held at its Registered Office, 42-Lawrence Road, Lahore on Monday,
October 29, 2007 at 3:00 p.m. and any adjournment thereof.
As witnessed given under my/our hand(s) day of , 2007.
1) Witness:
Affix
Revenue
Signature Stamp of Rs. 5/-
Name
Address Signature of Member
2) Witness:
Signature Shares Held
Name Shareholder’s Folio No.
Address CDC A/c No.
CNIC No.
Note :
1. Proxies, in order to be effective, must be reached at the Company’s Registered Office, not less
than 48 hours before the time for holding the meeting and must be duly stamped, signed and
witnessed.
2. CDC Shareholders, entitled to attend and vote at this meeting, must bring with them their National
Identity Cards/Passports in original to prove his/her identity, and in case of Proxy, must enclose
an attested copy of his/her NIC or Passport. Representatives of corporate members should bring
the usual documents required for such purpose.
Fold Here
AFFIX
CORRECT
POSTAGE
The Company Secretary

42-Lawrence Road, Lahore.
Phone Nos: (042) 6302261 - 62
Fold Here
Fold Here Fold Here
KOHINOOR
Textile Mills Limited
PUMA : 042-6306790, 6373701
A Kohinoor Maple Leaf Group Company
42-Lawrence Road, Lahore, Pakistan.

KTML Annual 2007

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KOHINOOR

TEXTILE MILLS LIMITED

KOHINOOR TEXTILE MILLS LIMITED

CONSOLIDATED FINANCIAL STATEMENT

DEBT: EQUTY RATIO TANGIBLE FIXED ASSETS

EQUITY % DEBT % FIXED ASSETS

MR. TARIQ SAYEED SAIGOL Chairman / Chief Executive

COMPANY SECRETARY BANKERS

MANAGER INTERNAL AUDIT MILLS

The Company shall achieve its mission through a continuous

NOTICE OF ANNUAL GENERAL MEETING

4. To transact any other business with the permission of the Chair.

By order of the Board

4. Shareholders are requested to immediately notify the change in address, if any.

The changing global market environment created several

The government raised minimum wages with effect from

In view of the need to add value to our products, the

Due to weakness in housing and retail sectors in the

Cloth processing and cut and sew facilities could not

(2006: Rs. 482.825 million) indicating an increase of 5.00%

8.73% over the previous year. 0.00%

The Directors recommend as under:

Loss before taxation (28,293)

Loss after taxation (39,822)

right shares @25 % to the entitled members. 8,000

shares issued by Maple Leaf Cement Factory Ltd. 1,000

INFORMATION TECHNOLOGY EQUITY

The Company is in process of developing and upgrading

The Company has selected Oracle as the main platform

Installation and implementation of systems is in progress

SOCIAL COMPLIANCE AND HUMAN RESOURCES

SAFETY, HEALTH AND ENVIRONMENT

TRADE OF COMPANY’S SHARES

Mr. Tariq Sayeed Saigol Chairman/Director 4,889,517

Mr. Zamiruddin Azar Chairman

For and on behalf of the Board

STATEMENT OF COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE

4. No casual vacancy occurred in the Board during the year.

17. The Board has set-up an effective internal audit function.

For and on behalf of the Board

Lahore: September 29, 2007 Chief Executive

REVIEW REPORT TO THE MEMBERS ON STATEMENT OF COMPLIANCE WITH BEST

Islamabad: RIAZ AHMAD & COMPANY

Islamabad: RIAZ AHMAD & COMPANY

KOHINOOR TEXTILE MILLS LIMITED

SHARE CAPITAL AND RESERVES

Authorized share capital

Issued, subscribed and paid up share capital 4 1,455,262 1,058,374

The annexed notes form an integral part of these financial statements.

Property, plant and equipment 15 3,971,021 3,561,259

KOHINOOR TEXTILE MILLS LIMITED

PROFIT AND LOSS ACCOUNT

SALES 27 7,140,167 6,903,625

GROSS PROFIT 1,045,526 1,021,807

SELLING AND DISTRIBUTION EXPENSES 29 372,793 401,276

OTHER OPERATING INCOME 32 50,684 320,231

FINANCE COST 33 603,951 448,072

PROFIT / (LOSS) BEFORE TAXATION (28,293) 354,984

PROVISION FOR TAXATION 34 11,529 56,780

EARNINGS PER SHARE - RUPEES 38 (0.32) 2.49

The annexed notes form an integral part of these financial statements.

Chief Executive Director

CASH FLOW STATEMENT