BALANCE SHEET

BALANCE SHEET AS AT JUNE 30,2009

Equity And Liabilities

CAPITAL & RESERVES

Authorised
15,000,000 ordinary shares of Rs. 10/- each

Issued, subscribed & Paid-up Capital

General Reserves
Impairment loss on investment to be charged in future
unrealize gain due to change in fair value of investment
Reserves and surplus

shareholder Equity

Non- Current Liabilties

Longterm Loan - secured
Deffered Liabilties
provision for staff gratuity
Deffered taxation

Current Liabilties
trade and other payables
markup accrued on loans
short term borrowings
current portion of long term loans
provision for income tax

Contigencies & Comitments

Assets
Non-current assets

tangible fix assets

long term investments
long term deposits

Current assets
store,spares & lose tools
stock-in trade
trade debts
loan and advances
trade depositis
other receivable
income tax refunds and advances
cash & bank balances
Notes

13

6
7

9
5
10

11

12
13

14
15
16
17
18

19
ANNUAL REPORT 2009

June 30,2009
(Rupees)

150,000,000

56,824,590
135,000,000
(8,612,911)
0
(90,995,500)

92,216,179

9,488,242
35,362,718
44,850,960

359,573,161
31,104,348
377,466,860
4,000,000
8,071,123
780,215,492

917,282,631

283,608,886
 47,774,177
72,900

8,801,007
316,757,698
197,640,358
8,623,355
26,204,676
14,222,044
11,280,574
2,296,956

585,826,668

917,282,631
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED JUNE 30,2009

Sales- Net
cost of sales
Gross (loss/profit)

Operation Expenses
Distribution cost and selling expense
adminsitrative and general expenses

Operating Loss

finance cost

adjustment on impairment loss on investment

tax before taxation

Taxation

current
piror
deffered

loss after taxation

(loss)/ Earning per share - basic

Note

20
21

22
23

24

10

7.1

25
ANNUAL REPORT 2009

June 30,2009
(Rupees)

652,200,910
(660,706,196)
(8,505,286)

(17,472,847)
(27,796,594)
(45,269,441)

(53,774,727)

(45,671,621)
(99,446,348)

(8,612,911)
(108,059,259)

10,136,913
3,990,574
14,127,487

(93,931,772)

(17)
CASH FLOW STATEMENT
FOR THE YEAR ENDED JUNE 30,2009

Cash flow from operating activities

loss before taxation

admjustment for non cash & other items:

depreciation
impairment loss
provison for gratuity
finacial expenses

Working capital changes

(increased)/decrease in current assets
stores,spares and lose tools
stock and trade
trade debt
loans and advances
trade depositis prepaymenyts
other ecivable
increase/decrease in current liabilties
trade and other payable

tax paid
gratuity paid

Net cash inflow/outflow from operating activities

cash flow from investing activities

fixed capital expenditure
Net cash inflow/outflow from investing activities

Cash flow from Financing activities

long term loan secured
financial expenses paid
net cash inflow/outflow from financing activities

net increase in cash & cash equilent

cash & cash equilent @ beginning
cash & cash equilent @ end
Notes
ANNUAL REPORT 2009

June 30,2009
(Rupees)

(108,059,260)

26,778,878
8,612,911
4,432,903
45,671,622
85,496,314
(22,562,946)

301,981
49,450,423
(89,697,831)
1,987,829
(12,040,311)
(2,774,475)

135,467,013
82,694,629

(3,140,010)
(3,752,112)
(6,892,122)
53,239,561

(20,313,263)
(20,313,263)

(16,000,000)
(27,629,053)
 (43,629,053)

(10,702,755)
(364,467,149)
(375,169,904)
 STATEMENT OF CHANGES IN EQUITY

Share Cpaital

Balance as july 01,2007 56,824,590

Loss after tax
Deficit du to change in investment

Balance as june 30,2008 56,824,590

Loss after tax
Impairment in value of investment
Deficit in fair value of investment

Impairment loss charged to P&L

Balance on June 30,2009 56,824,590

Genneral reserves Unrealized Gain to change ion fair value investment

135,000,000 275,552,408

(180,767,154)

135,000,000 94,785,254

(94,785,254)

135,000,000 0
ANNUAL REPORT 2009

Imapirment loss on available sale Unappropiate profit Total

102,585,764 569,962,762
(99,649,490) (99,649,490)
(180,767,154)

2,936,274 289,546,118
(93,931,773) (93,931,773)
(17,225,822) (17,225,822)
(94,785,254)

8,612,911 8,612,911

(8,612,911) (90,995,499) 92,216,180

4)

5)

6)

6.1)

6.2)

6.4)
7)

7.1)

8)

9)

10)

10.1)
 10.2)

12)

12.1)

12.2)
13)

14)

15)

16)

16.1)

17)

18)

19)

20)
21)

21.1)

22)
23)

24)

25)
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED JUNE 30,2009

Issued,subscribed and Paid-up Capital

No. of ordinary shares of Rs. 10/-
2,009

1,800,000
3,882,459
5,682,459

Long term loan- secured

balanace @ the beginning

less: installment due with 12 months

Provision for staff gratuity

balance @ beginning
payments during the year

provison for the year

balance sheet reconcilation

present value of the definite benefit obligation
less: unrecognized acturial loss

charge for the year

service cost
interest cost

the charge for te year has been aloocated as

cost of sales
admin expenses
Defferred taxation
liability for deffereed taxation
deffrered tax liability arising due to accelrated tax dep.
deffered tax assets arissing out of staff gratuity

In 2009. company net deffrerd tax position

balance @ beginning
increase in deffered tax liabilty
decrease in deffered tax assets
charge to income for the year

Trade and other payables

creditors
accrued expenses
unclaimed dividend
workers welfare funds

short term borrowings-secured

short term running finance
short term loan
book overdraft

Provision for taxation

balance @ beginning
add: provision for taxation
current period

Relationship between income tax & accounting profit

accounting profit as per account
applicalbe tax rate
tax payable on accointing profit
tax effect on tiiming difference on dep.
tax effect of export subject to tax separly

tax effect of expenses/provsion that are not deucatable

tax payable under normal sale rules

Minimum tax payable under income tax ordinance 2001

tabgible fixed assets

property,plant and equipment

Capital work-in-progress

Owned
lease hold land
factory buliding
non-factory buliding
labour qarters
plant & machinery
generators
electric intallation
power house
factory and office equipment
vehicles
furniture and fixtures
Subtotals
June 30,2009

Allocation of depreciation
depresiation for the year has been located
cost of sales
admin and general expenses

Capital work-in-progress

plant & machinery

building & civil works
Long term investment
shares in dewan salman fiber limited
32279849 @ Rs. 10/- each (include 25779849)

deficit due to change in fair value of investment

Stores,Spares & loose tools

stores and spares
packing material

Stock in trade
Raw material
Work-in-progress
Finished goods
waste

Trade Debt- Considered Goods

local receivable- unsecured

the aging of Debtors @ the reporting adte were:

upto 1 month
1 to 6 month
more than 6 months

Loans & advances-unsecured,considered goods

advance agaisnt supplier
loans & advances to employe

Trade deposits,prepayments and statutory balances

Deposits
Sales tax receivable

Cash & bank Balances

Cash in hand
Cash @ bank

Sales- Net
Yarn
-local
-export
waste
Gross Sales
Commision
-on local sale
-on export sale

Cost of sales
raw material (consume)
packing material
stores and spares consuem
fuel and power
salaries wages and other benefit
iunsurance
vehicle exp
reair maintanance
rent rates and taxes
depreciation

work in proces (opening)

work in proces (closing)
cost of goods manufactured
finished goods (opening)
purcahse of yarn
finished goods (closing)

Raw material consumed

opening stock
purchase net

closing stock
raw material consumed

Distribution cost & nselling expenses

advertisement publicity
cartage frieght and octroi
disribution expenses
export expenses
Administrative and general expenses
salaries,allowances and other benfit
rent,rate and taxes
travelling conveynce
printing and stationary
communication
vehicles expenses
legal and professioanl charges
fees and subscription
other expenses
depreciation
auditors rummenaration
donation

Finance cost
marku-up and lon term loans
marku-up and short term borrowing
bank charger and commison

Earning per share - basic

profit after taxation

weightage avarage number of ordinary shares

eraning perr share basics

fully paid in cash
issued as fully paid capital
As @ july 1,2008 Additional As @ june 30,209
1,651,808 1,651,808
37,990,890 37,990,890
11,652,333 11,652,333
8,338,425 8,338,425
373,267,028 8,197,146 381,464,174
78,186,466 78,186,466
5,760,815 5,760,815
27,658,382 27,658,382
4,740,693 19,330 4,760,023
29,442,898 14,900 29,457,798
6,206,085 77,996 6,284,081

584,895,823 8,309,372 593,205,195

24,702,741
2,076,137
26,778,878

2,009
opening balance auditing during year transfer to fix asset
11,736,189 - -
25,590,975 12,003,891 -
37,327,164 12,003,891
 ANNUAL REPORT 2009

Note June 30,2009

(Rupees)

18,000,000
38,824,590
56,824,590

4,000,000
4,000,000
0

8,807,451
(3,752,112)
5,055,339
6.2 4,432,903
9,488,242

8,627,044
861,198
9,488,242

3,148,035
1,284,868
4,432,903

3,936,726
496,177
 4,432,903

38,683,603
(3,320,885)
35,362,718

39,353,292
(3,735,412)
(255,162)
(3,990,574)
35,362,718

339,534,870
19,703,550
334,741
-
359,573,161

275,440,844
98,131,262
3,894,754
377,466,860

65,856,092

(57,784,969)
8,071,123

(108,059,260)
0
(37,820,341)
712,393
-

2,864,755

(34,243,193)
 3,273,605

12.1 234,277,831
12.2 49,331,055
283,608,886

As @ july 1,2008 Depreciation As @ june 30,2009

- - -
18,424,908 1,956,598 20,381,506
3,323,954 832,838 4,156,792
8,330,492 1,983 8,332,475
212,200,395 16,835,182 229,035,577
43,594,847 3,459,162 47,054,009
5,615,339 21,821 5,637,160
14,192,009 1,346,637 15,538,646
2,264,280 248,518 2,512,798
20,195,395 1,855,566 22,050,961
4,006,867 220,572 4,227,439

332,148,486 26,778,877 358,927,363

clsoing
11,736,189
37,594,866
49,331,055
 65,000,000

(17,225,823)
47,774,177

6,819,740
1,981,267
8,801,007

18,555,308
5,337,309
285,664,733
7,200,348
316,757,698

16.1 197,640,358
197,640,358

96,843,775
69,174,125
31,622,458
197,640,358

4,061,530
4,561,825
8,623,355

17,100,409
9,104,267
26,204,676

493,127
1,803,829
2,296,956

637,456,857
 0
17,264,205
654,721,062

(2,520,152)
0
(2,520,152)

652,200,910

21.1 462,769,269
12,102,388
8,799,073
62,511,061
75,978,303
3,743,000
844,312
507,325
5,295,735
12.1 24,702,741
657,253,207
10,847,969
(5,337,309)
662,763,867
290,040,410
767,000
(292,865,081)
660,706,196

65,319,741
416,004,836
481,324,577
(18,555,308)
462,769,269

77,395
11,552,910
5,842,542
0
17,472,847
 9,576,158
0
4,067,558
355,578
912,454
2,859,604
1,272,050
638,640
5,210,415
12.1 2,076,137
300,000
528,000
27,796,594

2,264,751
41,331,667
2,075,203
45,671,621

(93,931,773)

5,682,459

(17)
Written Down Value
1,651,808
17,609,384
7,495,541
5,950
152,428,597
31,132,457
123,655
12,119,736
2,247,225
7,406,837
2,056,641

234,277,831
FINANCIAL ANALYSIS
FOR THE YEAR ENDED JUNE 30,2009

Current Ratio

Quick Ratio

Inventory turnover

Average collection period

ACTIVITY

Total asset turnover

DEBT

Debt Ratio

PROFITABILITY

Gross Profit Margin

Operating Profit Margin

Net Profit margin

Return On Total Assets

current assets 585,826,668
current liabilities 780,215,492

current asstes - inventory 269,068,970

current liabilities 780,215,492

cost of goods 652,200,910

inventory 316,757,698

accounts receivable 8,623,355

average sales per year 1,786,852

sales 652,200,910
total assets 917,282,631

total liabilities 825,066,452

total assets 917,282,631

gross profit (660,706,196)

sales 652,200,910
operating profit (53,774,727)
sales 652,200,910

earning available for common stock (93,931,772)

sales 652,200,910

earning available for common stock (93,931,772)

total assets 917,282,631
= 0.75

= 0.34

= 2.06

= 4.83

= 0.71

= 0.9

= ###
= -0.08

= -0.14

= -0.1