Balance Sheet: As at June 30,2011

Balance sheet
As at june 30,2011
Note 2011 (Rupees in 2010 thousand)
Equity and liabilities
Balance sheet
Share capital and reserves
Authorized share capital 370,000,000(2010: 370,000,000) ordinary shares of rupees 10 each 30,000,000(2010:30,000,000)prefrence shares of rupees 10 each 3,700,000 300,000 4000000 3,700,000 300,000 4000000 1,455,262 1906006 3,361,268 3673825 1628067 67005 157996 1853068 1040257 289987 6070435 768459 8169138 10022206 17,057,299 6,496,299 1,720,835 2,249,170 34,887 10501191
Issued, subscribed and paid up share capital

Reserves Total equity Surplus on revaluation on land and invesment properties NON-CURRENT LIABILTIES long term financing liabilities against assets subject t finance lease defferred income tax
3 4 5 6 7 8
2,455,262 1931374 4,386,636 3685497 1318710 42843 62141 1423694 834691 230138 5130265 611744 6806838 8230532 16,302,665
CURRENT LIABILTIES
Trade and other payable Accrued mark-up Short term brrowing Current portion of non-current liabilties TOTAL LIABILTIES TOTAL EQUITY AND LIABILTIES CONTINGENCIES AND COMMITMENTS ASSETS NON - CURRENT ASSETS Property, plant and equipment Intangible asset Investment properties Long term investments Long term deposits CURRENT ASSETS Stores, spare parts and loose tools 13 14 15 16 17 18 6,747,691 9,563 1,721,714 3,248,880 35,758 11763606 9 10 11 12
19
328,393
345,798
Stock-in-trade Trade debts Advances Security deposits and short term prepayments Accrued Interest Due from subsidiary companies Other receivables Short term investments Taxation recoverable Cash and bank balances Non-current assets classified as held for sale TOTAL ASSETS
20 21 22 23 24 25 26 27 28
1,657,252 707,400 241,331 19,045 46 601,144 432,943 600 129,909 420,996 4539059 4539059 16,302,665
2,393,113 1,329,065 596,795 15,578 141 14,987 386,941 642,111 99,805 78,851 5903185 652,923 6556108 17,057,299
Profit and Loss Account

For the year ended june 30,2011
Note
SALES COST OF SALES GROSS PROFIT DISTRIBUTION COST ADMINISTRATIVE EXPENSES OTHER OPERATING EXPENSES 29 30 31 32 33
2011 2010 (Rupees in thousand)

12,037,253 -10,213,705 1823548 -425,063 -218,739 -49,432 -693234 1,130,314 595,770 1726084 -1,037,294 688790 -200,939 487851 2.2 10,693,338 -8,692,529 2000809 -397,818 -195,103 -37,323 -630244 1,370,565 78,651 1449216 -1,072,768 376448 -98,587 277861 1.91
OTHER OPERATING INCOME PROFIT FROM OPERATIONS FINANCE COST PROFIT BEFORE TAXATION TAXATION PROFIT AFTER TAXATION EARNINGS PER SHARE - BASIC AND DILUTED (Rupees)
34 35 36 40
The annexed notes from an integral part of these financial statement
Statement of Comprehensive income

For the year ended june 30, 2011
PROFIT AFTER TAXATION OTHER COMPREHENSIVE INCOME / (LOSS) Surplus arising on remeasurement of available for sale investment to fair value Reclassification adjustment for gain included in profit and loss Deferred income tax relating to surplus on available for sale investment Other comprehensive income / (loss) for the year - net of tax 487,851 -462,483 -462,483 277,861 32,632 -8,566 24,066
TOTAL COMPREHENSIVE INCOM FOR THE YEAR
25368
301927
For the year ended June 30, 2011
Cash Flow Statement

2011 Note (Rupees in thousand) 2010
CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations Finance cost paid Workers profit participation fund paid Income tax paid Net increase in long term deposits Net cash generated from / (used in) operating activities
37
2,998,394 -1,094,698 -13,397 -162,285 -871 -1,270
674,317 -968,040 -108,787
1,727,143 -177891 -9836 -174 1363 13132 8715 119200 100000 16263 70772 150000 -595077 -940170 -70523 -
-403,780 -281042 -51261 -200 934 7765 13222 -310582 -420840 1259964 -90286 -35922
CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditure on property, plant and equipment Capital expenditure on intangible asset Payment for non-current assets classified as held for sale Investments made Return on bank deposits received Proceeds from sale of property, plant and equipment Proceeds from sale of investments Proceeds from sale of non current-assets classified as held for sale
Advance against purcahse of land received back

Dividend received Net cash from / (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long term financing Repayment of long term financing Short term borrowings - net Repayment of liabilities against assets subject to finance lease Repayment of lease finance advance
Net cash (used in) / from financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The annexed notes form an integral part of these financial statements
-1455770 342,145 78851 420,996
712916 -1,446 80297 78,851
Profit and Loss Account

For the year ended june 30,2011
Note
SALES COST OF SALES GROSS PROFIT DISTRIBUTION COST ADMINISTRATIVE EXPENSES OTHER OPERATING EXPENSES 31 32 33 29 30
2011 (Rupees in
12,037,253 (10,213,705) 1823548 (425,063) (218,739) (49,432) -693234 1,130,314
OTHER OPERATING INCOME PROFIT FROM OPERATIONS FINANCE COST PROFIT BEFORE TAXATION TAXATION PROFIT AFTER TAXATION EARNINGS PER SHARE - BASIC AND DILUTED (Rupees)
34
595,770 1726084
35
(1,037,294) 688790
36
(200,939) 487851
40
2.20
2010 thousand)
10,693,338 (8,692,529) 2000809 (397,818) (195,103) (37,323) -630244 1,370,565 78,651 1449216 (1,072,768) 376448 (98,587) 277861 1.91
Statement of Comprehensive income

For the year ended june 30, 2011
PROFIT AFTER TAXATION OTHER COMPREHENSIVE INCOME / (LOSS) Surplus arising on remeasurement of available for sale investment to fair value Reclassification adjustment for gain included in profit and loss Deferred income tax relating to surplus on available for sale investment Other comprehensive income / (loss) for the year - net of tax
TOTAL COMPREHENSIVE INCOM FOR THE YEAR The annexed notes from an integral part of these financial statement
487,851
277,861
-462,483 (462,483)
32,632 (8,566) 24,066
25368
301927
Cash Flow Statement

2011 Note (Rupees in thousand) 2010
CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations Finance cost paid Workers profit participation fund paid Income tax paid Net increase in long term deposits Net cash generated from / (used in) operating activities
37
2,998,394 674,317 -1,094,698 -968,040 -13,397 -162,285 -108,787 -871 -1,270
1,727,143 -177891 -9836 -174 1363 13132 8715 119200 100000 16263 70772 150000 -595077 -940170 -70523 -1455770 342,145 78851 420,996
-403,780 -281042 -51261 -200 934 7765 13222 -310582 -420840 1259964 -90286 -35922 712916 -1,446 80297 78,851
CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditure on property, plant and equipment Capital expenditure on intangible asset Payment for non-current assets classified as held for sale Investments made Return on bank deposits received Proceeds from sale of property, plant and equipment Proceeds from sale of investments Proceeds from sale of non current-assets classified as held for sale
Advance against purcahse of land received back

Dividend received Net cash from / (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long term financing Repayment of long term financing Short term borrowings - net Repayment of liabilities against assets subject to finance lease Repayment of lease finance advance Net cash (used in) / from financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The annexed notes form an integral part of these financial statements
Statement of Changes in Equity

Share Capital Capital Reserves Share premium Fair vlue reserve
Balance as at 30 June 2009 Total comprehensive income for the year ended 30 June 2010 Balance as at 30 June 2010 Ordinary shares issued other than through a Right issue during the year ended 30 June 2011 Total comprehensive income for the year ended 30 June 2011 Balance as at 30 June 2011 -
1455262 1455262 1000000 2455262 -
144919
438417 24066
144919 -
462483
-462483 144919 0
The annexed notes form an integral part of these financial statements
Reserves Revenue Reserves Subtotal General reserve Unappropriat Sub- total ed profit/ (accumulated loss) -429748 277861 1450491 -462483 144919 487851 335964 -151887 487851 1786455 1020743 277861 1298604 Total Reserves
Total Equity
es
583336 24066 607402 -
1450491
1604079 301927 1906006 25368 1931374
3059341 301927 3361268 1000000 25368 4386636
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 all Stock Exchanges in Pakistan. 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 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated: 2.1 Basis of Preparation a) Statement of Compliance These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, provisions of and directives issued under the Companies Ordinance, 1984. In case requirements differ, the provisions or directives of the Companies 1984 shall prevail. b) Accounting Convention These financial statements have been prepared under the historical cost convention, except for the certain financial instruments, investment properties and freehold land which are carried at their fair values. These financial statements represent separate financial statements of the Company. The consolidated financial statements of the Group are being c)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 Companys accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The areas where various assumptions and estimates are significant to the Companys financial statements or where judgments were exercised in application of accounting policies are as follows: 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 conditions existing at balance sheet date. Useful lives, patterns of economic benefits and impairments Estimates with respect to residual values, useful 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 impairment 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. Inventories Net realizable value of inventories is determined with reference to currently prevailing selling prices less estimated expenditure to make sales. 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. Provisions for doubtful debts The Company reviews its receivable against any provision required for any doubtful balances on an ongoing basis. The provision is made while taking into consideration expected recoveries, if any. Impairment of investments in subsidiary companies In making an estimate of recoverable amount of the companys investments in subsidiary companies, the management considers future cash flows.
d)Amendments to published approved standards that are effective in current year and are relevant to the Company The following amendments to published approved standards are mandatory for the Companys accounting periods beginning on or after 01 July 2010: International Accounting Standard (IAS) 1 (Amendment), Presentation of Financial Statements (effective for annual periods beginning on or after 01 January 2010). The amendment provides clarification that the potential settlement of a liability by the issue of equity is not relevant to its classification as current or non-current. By amending the definition of current liability, the amendment permits a liability to be classified as non-current (provided that the entity has an unconditional right to defer settlement by transfer of cash or other assets for at least 12 months after the accounting period) notwithstanding the fact that the entity could be required by the counterparty to settle in shares at any time. The application of the amendment does not affect the results or net assets of the Company as it is only concerned with IAS 7 (Amendment), Statement of Cash Flows (effective for annual periods beginning on or after 01 January 2010). The amendment provides clarification that only expenditure that results in a recognized asset in the balance sheet can be classified as a cash flow from investing activity. The clarification results in an improvement in the alignment of the classification of cash flows from investing activities in the cash flow statement and the presentation of recognized assets in the balance sheet. The application of the amendment does not affect the results or net assets of the Company as it is only concerned with presentation and disclosures. IFRS 8 (Amendment), Operating Segments (effective for annual periods beginning on or after 01 January 2010). The amendment is part of the International Accounting Standards Boards (IASB) annual improvements project published in April 2009. The amendment provides clarification that the requirement for disclosing a measure of segment assets is only required when the Chief Operating Decision Maker (CODM) reviews that information. The application of the amendment does not affect the results or net assets of the Company as it is only concerned with presentation and disclosures.
e)Interpretations and amendments to published approved standards that are effective in current year but not relevant to the Company There are other new interpretations and amendments to the published approved standards that are mandatory for accounting periods beginning on or after 01 July 2010 but are considered not to be relevant or do not have any significant impact on the Companys financial statements and are therefore not detailed in these financial statements. f)Standards and amendments to published approved standards that are not yet effective but relevant to the Company Following standards and amendments to existing standards have been published and are mandatory for the Companys accounting periods beginning on or after 01 July 2011 or later periods: IFRS 9 Financial Instruments (effective for annual periods beginning on or after 01 January 2013). This standard is the first step in the process to replace IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 introduces new requirements for classifying and measuring financial assets and is likely to affect the Companys accounting for its financial IFRS 7 (Amendment), Financial Instruments: Disclosures (effective for annual periods beginning on or after 01 July 2011). The new disclosure requirements apply to transfer of financial assets. An entity transfers a financial asset when it transfers the contractual rights to receive cash flows of the asset to another party. These amendments are part of the IASBs comprehensive review of off balance sheet activities. The amendments will promote transparency in the reporting of transfer transactions and improve users understanding of the risk exposures relating to transfers of financial assets and the effect of those risks on an entitys financial position, particularly those involving securitization of financial asset. The management of the Company is in the process of evaluating the impacts of the aforesaid amendment on the Companys IFRS 10 Consolidated Financial Statements (effective for annual period beginning on or after 01 January 2013). Concurrent with the issuance of IFRS 10, the IASB has also issued IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 (revised 2011) Consolidated and Separate Financial Statements and IAS 28 (revised 2011) Investments in Associates. The objective of IFRS 10 is to have a single basis for consolidation for all entities, regardless of the nature of the investee, and that basis is control. The definition of control includes three elements: power over an investee, exposure or rights to variable returns of the investee and the ability to use power over the investee to affect the investors returns. IFRS 10 replaces those parts of IAS 27 Consolidated and Separate Financial Statements that address when and how an investor should prepare consolidated financial statements and replaces Standing Interpretations Committee (SIC) 12 Consolidation Special Purpose
Entities in its entirety. The management of the Company is in the process of evaluating the impacts of the aforesaid standard on the Companys financial statements. IFRS 12 Disclosure of Interests in Other Entities (effective for annual period beginning on or after 01 January 2013). IFRS 12 applies to entities that have an interest in subsidiaries, joint arrangements, associates or unconsolidated structured entities. IFRS 12 establishes disclosure objectives and specifies minimum disclosures that an entity must provide to meet those objectives. IFRS 12 requires an entity to disclose information that helps users of its financial statements evaluate the nature of and risks associated with its interests in other entities and the effects of those interests on its financial statements. The management of the Company is in the process of evaluating the impacts of the aforesaid standard on the Companys financial statements. IFRS 13 Fair Value Measurement (effective for annual period beginning on or after 01 January 2013). IFRS 13 establishes a single framework for measuring fair value where that is required by
relevant to the Company
2.6 Investment properties Land and buildings held for capital appreciation or to earn rental income are classified as investment properties. 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 properties is carried out with sufficient regularity. Gain or loss arising from a change in the fair value of investment properties is included in the profit and loss account currently. 2.7 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 expenditure 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 2.8 Investments Classification of investment is made on the basis of intended purpose for holding such investment. Management determines the appropriate classification of its investments at the time of purchase and re-evaluates such designation on regular basis. Investments are initially measured at fair value plus transaction costs directly attributable to acquisition, except for investment at fair value through profit and loss which is initially measured at fair value. The Company assesses at the end of each reporting period whether there is any objective evidence that investments are impaired. If any such evidence exists, the Company applies the provisions of IAS 39 Financial Instruments: Recognition and Measurement to all investments, except investments in subsidiary companies, which are tested for impairment in accordance with the provisions of IAS 36 Impairment of Assets. a) Investment at fair value through profit or loss Investment classified as held-for-trading and those designated as such are included in this category. Investments are classified as held-for-trading if these 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. b) 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 amortized cost. This cost is computed as the amount initially recognised minus principal repayments, plus or minus the cumulative amortization, using the effective interest method, of any difference between the initially c)Available-for-sale Investments intended to be held for an indefinite period of time, which may be sold in response to need for liquidity, or changes to interest rates or equity prices 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 recognized directly in statement of other comprehensive income until the investment is sold, de-recognized or is determined to be impaired, at which time the cumulative gain or loss previously reported in statement of other comprehensive income is Quoted For investments that are actively traded in organized capital markets, fair value is determined by reference to stock exchange quoted market bids at the close of business on the balance sheet date. Unquoted Fair value of unquoted investments is determined on the basis of appropriate valuation techniques as allowed by IAS 39 Financial Instruments: Recognition and Measurement. d)Investment in Subsidiary companies Investments in subsidiary companies are stated at cost less impairment loss, if any, in accordance with the provisions of IAS 27 Consolidated and Separate Financial Statements. 2.9 Inventories Inventories, except for stock in transit and waste stock / rags are stated at lower of cost and net realizable value. Cost is determined as follows:
Stores, spare parts and loose tools Useable stores, spare parts and loose tools are valued principally at moving average cost, while items considered obsolete are carried at nil value. Items in transit are valued at cost comprising invoice value plus other charges paid thereon. Stock-in-trade Cost of raw material, work-in-process and finished goods is determined as follows:. (i) For raw materials: Annual average basis. (ii) For work-in-process and finished goods: Average manufacturing cost including a portion of production overheads. Materials in transit are valued at cost comprising invoice value plus other charges paid thereon. Waste stock / rags are valued at net realizable value. Net realizable value signifies the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make a sale. 2.10 Derivative financial instruments Derivative financial instruments are initially recognized at fair value on the date a derivative contract is entered into and are remeasured to fair value at subsequent reporting dates. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging The Company 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 Company 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 is recognized in statement of other comprehensive income. The gain or loss relating to the ineffective portion is recognized Amounts accumulated in statement of other comprehensive income are recognized in profit and loss account in the periods when the hedged item will affect profit or loss. 2.11 Cash and cash equivalents Cash and cash equivalents comprise cash in hand, cash at banks on current, saving and deposit accounts and other short term highly liquid instruments that are readily convertible into known amounts of cash and which are subject to insignificant 2.12 Non current assets classified as held for sale Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than continuous use. These are measured at lower of carrying amount and fair value less costs to sell. 2.13 Borrowing cost Interest, mark-up and other charges on long-term finances are capitalized up to the date of commissioning of respective qualifying assets acquired out of the proceeds of such long-term finances. All other interest, mark-up and other charges are recognized in profit and loss account.
2.14 Revenue recognition Revenue from different sources is recognized as under: a) Revenue from local sales is recognized on dispatch of goods to customers while in case of export sales it is recognized on the date of bi b) Dividend on equity investments is recognized when right to receive the dividend is established. c) Profit on deposits with banks is recognized on time proportion basis taking into account the amounts outstanding and rates applicable 2.15 Foreign currencies These financial statements are presented in Pak Rupees, which is the Companys functional currency. All monetary assets and liabilities denominated in foreign currencies are translated into Pak Rupees at the rates of exchange prevailing at the balance sheet date, while the transactions in foreign currency during the year are initially recorded in functional currency at the rates of exchange prevailing at the transaction date. All non-monetary items are translated into Pak Rupees at exchange rates prevailing on the date of transaction or on the date when fair values are determined. Exchange gains and losses are
average basis.
ognized on the date of bill of lading.
nding and rates applicable thereon.
2.16 Financial instruments Financial instruments carried on the balance sheet include investments, deposits, trade debts, advances, interest accrued, other receivables, cash and bank balances, long-term financing, liabilities against assets subject to finance lease, short-term borrowings, accrued mark-up and trade and other payables etc. Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of instrument. Initial recognition is made at fair value plus transaction costs directly attributable to acquisition, except for financial instrument at fair value through profit or loss Financial assets are de-recognized when the Company loses control of the contractual rights that comprise the financial asset. The Company loses such control if it realizes the rights to benefits specified in contract, the rights expire or the Company surrenders those rights. Financial liabilities are de-recognized when the obligation specified in the contract is discharged, cancelled or expired. Any gain or loss on subsequent measurement (except available for sale investments) and derecognition is charged to the profit or loss currently. The particular measurement methods adopted are disclosed in the following individual policy statements associated with each item and in the accounting policy of investments. a) Trade and other receivables Trade debts and other receivables are carried at original invoice value less an estimate made for doubtful debts based on a review of all outstanding amounts at the year end. Bad debts are written off when identified. b)Borrowings recognized initially at fair value and are subsequently stated at amortized cost. Any difference between the Borrowings are proceeds and the redemption value is recognized in the profit and loss account over the period of the borrowings using the effective interest method. c)Trade and other payables Liabilities for trade and other amounts payable are initially recognized at fair value, which is normally the transaction cost. 2.17 Impairment a)Financial assets A financial asset is considered to be impaired if objective evidence indicate that one or more events had a negative effect on the estimated future cash flow of that asset. An impairment loss in respect of a financial asset measured at amortized cost is calculated as a difference between its carrying amount and the present value of estimated future cash flows discounted at the original effective interest rate. An impairment loss in respect of available for sale financial asset is calculated with reference to its current fair value. Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar credit risk characteristics. b)Non financial assets The carrying amount of assets are reviewed at each balance sheet date for impairment whenever events are changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. If such indication exists, and where the carrying value exceeds the estimated recoverable amount, assets are written down to their recoverable amounts. Recoverable amount is the higher of an assets fair value less costs to sell and value in use. The resulting impairment loss is taken to the profit and loss account except for impairment loss on revalued assets, which is adjusted against the related revaluation surplus to the extent that the impairment loss does not exceed the surplus on revaluation of that asset. 2.18 Segment reporting Segment reporting is based on the operating (business) segments of the Company. An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to the transactions with any of the Companys other components. An operating segments operating results are reviewed regularly by the chief executive officer to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. Segment results that are reported to the chief executive officer include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Those income, expenses, assets, liabilities and other balances which can not be allocated to a particular segment on a reasonable basis are reported as unallocated. The Company has three reportable business segments. Spinning (Producing different quality of yarn using natural and artificial fibers), Weaving (Producing different quality of greige fabric using yarn) and Processing and Home Textile (Processing greige fabric for production of printed and dyed fabric and manufacturing of home textile articles). Transaction among the business segments are recorded at arms length prices using admissible valuation methods. Inter segment sales and purchases are eliminated from the total. 2.19 Dividend and other appropriations
Dividend distribution to the Companys shareholders is recognized as a liability in the Companys financial statements in the period in which the dividends are declared and other appropriations are recognized in the period in which these are approved by the Board of Directors. 2.20 Off setting Financial assets and financial liabilities are set off and the net amount is reported in the financial statements when there is a legal enforceable right to set off and the Company intends either to settle on a net basis, or to realize the assets and to settle the liabilities simultaneously.
3. ISSUED SUBSCRIBED AND PAID UP SHARE CAPITAL 2011

1,596,672
2010
1,596,672
26,156,000
26,156,000
26,858,897
26,858,897
38,673,628
38,673,628
152,241,019 245,526,216
52,241,019 145526216
3.1 Movment during the year

145,526,216 100,000,000 245,526,216 145,526,216 145,526,216
3.2)During the period, the Company has issued 100,000,000 ordinary shares of Rupees 10 each at face value of Rupees 10 per share otherwise than right issue to Mercury Management Incorporated (25 million shares), Hutton Properties Limited (52 million shares) and Zimpex (Private) Limited (23 million shares) in accordance with the agreement dated 10 March 2010 among the three allottees, the Company and Maple Leaf Cement Factory Limited subsidiary company after the approval of Securities and Exchange Commission of Pakistan. 3.3)Zimpex (Private) Limited which is an associated company held 45,496,057 (2010: 22,510,635) ordinary shares of Rupees 10 each as at 30 June 2011.
2011 2010 (Rupee in thousand)
Ordinary shares of Rupees 10 each allotted on reorganisation of Kohinoor Industries Limited 15,967 15,967
Ordinary shares allotted under scheme of arrangement of merger of Part II of Maple Leaf Electric Company Limited Ordinary shares allotted under scheme of arrangement of merger of Kohinoor Raiwind Mills Limited and Kohinoor Gujar Khan Mills Limited. Ordinary shares of Rupees 10 each issued as fully paid bonus shares Ordinary shares of Rupees 10 each issued as fully paid in cash
261,560
261,560
268,589
268,589
386,736
386,736
1,522,410 2455262
522,410 1455262
At 01 July Ordinary shares of Rupees 10 each issued during the year as fully paid At 30 June
1,455,262 1,000,000 2,455,262
1,455,262
1,455,262
96,057 (2010: 22,510,635) ordinary
Note
4. RESERVES Composition of reserves is as follows: Capital Share premium
2011 2010 (rupees in thousand)
Fair value reserve - net of deferred tax

Revenue General reserve Unappropriated profit / (accumulated loss)
4.1 4.2
144919 144919 1450491 335964 1786455 1931374
144919 462483 607402 1450491 -151887 1298604 1906006
4.1 This reserve can be utilized by the Company only for the purposes specified in section 83(2) of the Companies Ordinance, 1984.
Note
4.2 Fair value reserve - net of deferred tax Balance as at 01 July Add: Fair value adjustment on investment in Security General Insurance Company Limited during the year Less: Reclassification adjustment for gain included in profit and loss Less: Related deferred tax on investment in Security General Insurance Company Limited Balance as at 30 June
2011 2010 (Rupee in thousand) 462483 438417

32,632
-462,483
-8,566 462,483
5.SURPLUS ON REVALUATION OF LAND AND INVESTMENT PROPERTIES

Investment properties Freehold land 1,263,592 2,421,905 1,263,592 2,410,233
5.1
3,685,497 3,673,825
5.1)Freehold land was revalued by an independent valuer Messers ARCH-e-decon (Evaluator, Surveyors, Archeitets and Engineers) as at 30 March 2010. The value of land increased by Rupees 2,410.233 million due to revaluation. During the current year, fair value of land situated at Raiwind Road, which was previously classified as held for sale, has been determined by Messers ARCHe-decon as at 28 June 2011. The value of this land has increased by Rupees 11.672 million due to revaluation.
2011
6.LONG TERM FINANCING From banking companies and other financial institutions - secured NIB Bank Limited (NIB - 1) NIB Bank Limited (NIB - 2) NIB Bank Limited (NIB - 3) NIB Bank Limited (NIB - 4) Allied Bank Limited (ABL -1 ) Saudi Pak Industrial and Agricultural Investment Company Limited (SPIAICL-3) Standard Chartered Bank (Pakistan) Limited - syndicated term finance Allied Bank Limited - syndicated term finance The Bank of Khyber - syndicated term finance Pak Libya Holding Company Limited - syndicated term finance Bank Al falah Limited - syndicated term finance Faysal Bank Limited - syndicated term finance The Bank of Punjab (BOP - 1) Albaraka Bank (Pakistan) Limited Saudi Pak Industrial and Agricultural Investment Company Limited (SPIAICL-1) Saudi Pak Industrial and Agricultural Investment Company Limited (SPIAICL-2) Standard Chartered Bank (Pakistan) Limited (SCB-2) Less: Current portion shown under current liabilities Other loans - unsecured Kohinoor Sugar Mills Limited (KSML) Kohinoor Industries Limited (KIL)
2010 thousand)
Note
(Rupee in
6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.7 6.7 6.7 6.7 6.7 -
31,836 150,006 100,000 50,000 7,232 125,000 167,085 456,413 80,250 40,125 417,500 250,500
107,716 198,803
65,094 156,250 186,500 543,150 95,500 47,750 477,500 279,750 26,623 8,333 18,055 10,000 100,000
1,875,947
12 6.11 6.12 564,714
2,321,024
700,434
1,311,233
4,794 2,683
1,620,590
4,794 2,683
7,477 1,318,710
7,477 1,628,067
6.1 NIB Bank Limited (NIB - 1) This represents Long Term Financing for Export Oriented Projects (LTF-EOP) facility of Rupees 157 million 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. It is secured by first exclusive hypothecation charge on the imported machinery and allied equipment, including installation and local component costs. It carries mark up at fixed rate of 6 % per annum. 6.2 NIB Bank Limited (NIB - 2) This represents LTF-EOP term finance facility of Rupees 300 million 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 and Tying & Knotting machine plus five (5) Gen Set gas generators being part of BMR. It is repayable in equal quarterly installments after expiry of grace period. The facility is secured against first pari passu charge over fixed assets of Raiwind Division and personal guarantees of the sponsor directors. It carries fixed mark up at the rate of 7% per annum. 6.3 NIB Bank Limited (NIB - 3) This represents a term finance facility of Rupees 100 million for a period of three years. This facility is availed to partially term out existing exposure under finance against packing credit own source facility. It is repayable in thirty two equal monthly installments, commencing from July 2011. The facility is secured against exclusive charge on the plant and machinery imported under LTF facility and personal guarantees of the sponsor directors. It carries mark up at the rate of 3 months KIBOR plus 2.00% per annum. 6.4 NIB Bank Limited (NIB - 4) This represents pre -shipment loan being converted into long term loan during the year. It is repayable in thirty two monthly installments commencing from July 2011.This facility is secured against collateral covering the exposure including charges on both current and fixed assets of the Company and personal guarantees of the sponsor directors. It carries mark up at the rate of 3 months KIBOR plus 2.00% per annum. 6.5 Allied Bank Limited (ABL-1) This represents term finance facility of Rupees 300 million obtained for import of state of art machinery for a period of five years with a grace period of one year. The facility is repayable in sixteen equal quarterly installments commenced 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 to Rupees 124.732 million were converted to LTF-EOP at 7% per annum fixed rate of mark up. 6.6 Saudi Pak Industrial and Agricultural Investment Company Limited (SPIAICL - 3) This represents term finance facility of Rupees 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 commenced from June 2007. It is secured by first pari 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. The facility carries mark up at the rate of 3 months KIBOR plus 1.70% per annum with quarterly repricing. 6.7 Syndicated Term Finance Syndicated term finance of Rupees 1.750 billion was arranged through Standard Chartered Bank (Pakistan) Limited (SCBL) to swap high priced loans. Long term facility was arranged and availed in Islamic and conventional mode of financing. Standard Chartered Bank (Pakistan) Limited (Arranger), Allied Bank Limited and Bank of Khyber disbursed Rupees 868.750 million under Islamic mode of financing whereas Bank Alfalah Limited, Faysal Bank Limited and Pak Libya Holding Company Limited disbursed Rupees 850 million under conventional means of financing. Tenor of the loan was 5 years including one year grace period and was repayable in 16 equal quarterly installments. During the year ended 30 June 2010, the Company entered into supplimental to its syndicated term finance facility agreement where by the repayment schedule of the purchase price was modified. The loan is repayble in twenty four installments within a tenor of six years . It is secured by first pari passu charge over the fixed assets of the Company including surplus land and buildings at Peshawar Road, Rawalpindi. It carries mark-up at 3 months average KIBOR plus 1.50% pere anum to be repriced at the end of each quarter. 6.8 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.
6.9 Kohinoor Industries Limited (KIL) The balance is an old one, un-reconciled, unconfirmed and disputed. 6.10 Current portion of long term financing include overdue installments amounting to Rupees 32.678 million (2010 : Rupees 134.816 mil
010 : Rupees 134.816 million
2011 Note
7.LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE Future minimum lease payments Less: Un-amortized finance charges Present value of future minimum lease payments Less: Current portion shown under current liabilities 12
(Rupee in
101,238 11,365 89,873 47,030 42,843
7.1 The future minimum lease payments have been discounted at implicit interest rates which range from 6.00 % to 18.85% (2010: from 6.00% to 18.00%) per annum to arrive at their present values. 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 22.098 million (2010: Rupees 21.065 million) included in long term deposits, demand promissory notes, personal guarantees and pledge of sponsors shares in public limited companies. 8.DEFERRED INCOME TAX This comprises of following : Deferred tax liability on taxable temporary differences in respect of: - Accelerated tax depreciation - Surplus on revaluation of investment Deferred tax asset on deductible temporary differences in respect of: Unused tax losses
394,104 394,104 331,963
2010 thousand)
155,263 20,233 135,030 68,025 67,005
329,260 164,613
493,873
335,877
2011 Note
9.TRADE AND OTHER PAYABLES Creditors Accrued liabilities Advances from customers Workers profit participation fund Workers welfare fund Unclaimed dividend Withholding tax payable Payable to employees provident fund trust Others 9.1 Workers profit participation fund Balance as on 01 July Add: Interest for the year Provision for the year Less: Payments during the year 35 33
2010 thousand)
788,562 151,067 18,593 21,669 7,686 2,681 2,715 42,096 5,188
(Rupee in
615,087 128,401 11,089 20,905 7,686 2,681 4,629 36,287 7,926
9.1
834,691 1,040,257
21,669 2,445 10,188 -13,397 1,254 188 20,227
20,905
9.1.1 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 10.ACCRUED MARK-UP Long term financing Short term borrowings Liabilities against assets subject to finance lease 11.SHORT TERM BORROWINGS From banking companies - secured Short term running finances Other short term finances State Bank of Pakistan (SBP) refinances Temporary bank overdraft 88,006 140,535 1,597
21,669
119,580 167,594 2,813
230,138
289,987
11.1 11.2 11.3 -
1,879,564 1,815,701 1,435,000
2,285,452 2,200,553 1,555,000 29,430
5,130,265 6,070,435
11.1 The running finance facilities sanctioned by various banks aggregate to Rupees 2,184 million (2010: Rupees 2,390 million). The rates of mark-up range from 3.49% to 21.90% (2010: from 3.23% to 25%) per annum. 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.
11.2 The other short term finance facilities sanctioned by various banks aggregate to Rupees 2,426 million (2010: Rupees 3,638 million). The rates of mark-up range from 13.45% to 25.00% (2010: from 6.63% to 18.00%) per annum. These arrangements are secured by pledge of raw material, charge on current assets of the Company including hypothecation of work-inprocess, stores and spares, letters of credit, firm contracts, book debts and personal guarantees of the sponsor directors. 11.3 The export refinance facilities sanctioned by various banks aggregate to Rupees 1,435 million (2010: Rupees 1,665 million). The rates of mark-up range from 8.50% to 11.00% (2010: 6.50% to 8.50%) per annum. These arrangements are secured by way of charge on current assets of the Company and personal guarantees of the sponsor directors. 12. CURRENT PORTION OF NON-CURRENT LIABILITIES Long term financing - secured Liabilities against assets subject to finance lease
6 7
564,714 47,030
700,434 68,025
611,744
768,459
13. CONTINGENCIES AND COMMITMENTS 13.1 Contingencies a) The Company has filed an appeal before AppellateTribunal Inland Revenue, Lahore for tax year 2003 under section 129/132 of Income Tax Ordinance, 2001, which is pending adjudication. The tax loss was restricted to Rupees 27.540 million against declared loss of Rupees 122.933 million. In addition to the above, another appeal for tax year 2003 against order under section 221 dated 24 January b) The Company has filed an appeal before the Appellate Tribunal Inland Revenue under section 122(5A) / 122(1) / 129 of Income Tax Ordinance, 2001 for tax year 2004 which is pending adjudication. The loss for the year has been assessed at Rupees 255.886 million against declared loss of Rupees 255.886 million creating refund of Rupees 7.498 million. Department has also filed cross appeal mainly on issue of chargeability of 3.5% tax on local purchases amounting to Rupees 955.547 million. The Company has strong grounds and is expecting favourable outcome c)The Company has filed an appeal before the Appellate Tribunal Inland Revenue under section 122(5A) / 122(1) / 129 of Income Tax Ordinance, 2001 for tax year 2005, which is pending adjudication. The Income for the year has been assessed at Rupees 113.440 million against declared loss of Rupees 205.576 million creating payable of Rupees 74.576 million. Department has also filed cross appeal mainly on issue of chargeability of 3.5% tax on local purchases amounting to Rupees 828.839 million. The Company has strong grounds and is expecting favourable outcome. d) The Company and the tax authorities have filed appeals before different appellate authorities regarding sales tax matters. Pending the outcome of appeals filed e) The Company has filed recovery suits in civil courts of Rupees 8.390 million (2010: Rupees 4.589 million) against various suppliers and customers for goods supplied by/ to them. Pending the outcome of the cases, no provision there against has been made in these financial statements since the Company is confident about favourable outcome of the cases. f) Three cases are pending before the Punjab Labour Appellate Tribunal, Shadman 1, Lahore regarding the reinstatement into service of three employees dismissed from their jobs. No provision has been made in these financial statements, since the Company is confident about favourable outcome of the cases. g) Guarantees issued by various commercial banks, in respect of financial and operational obligations of the Company, to various institutions and corporate bodies aggregate Rupees 249.620 million as at 30 June 2011 (2010: Rupees 248.962 million) 13.2 Commitments in respect of:
a) Letters of credit for capital expenditure amount to Rupees Nil (2010: Rupees 38.865 million).
b) Letters of credit other than for capital expenditure amount to Rupees 42.070 million (2010: Rupees 325.393 million). 2011 2010 (Rupee in thousand) 14. PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets (Note 14.1) Capital work in progress (Note 14.4) 6,745,943 1,748 6,747,691 6,409,975 86,324 6,496,299
14.1 Operating
fixed
Assets
Owned Assets Freehold land Office Building Factory and Residential and Plant and Machinery
Other Building
Other Building
----------------------------------------------------------------------------------------------------- (Rupees in thousand) ------------------------------------------------------------------------
At 30 June 2009 Cost Accumulated depreciation Net book value Year ended 30 June 2010 Opening net book value Revaluation surplus Additions Transfer: Cost Accumulated depreciation Disposals: Cost Accumulated depreciation Depreciation charge Closing net book value Year ended 30 June 2011 Opening net book value Revaluation surplus Additions Transfer Cost Accumulated depreciation
14,836 14,836 14,836 2,410,233
12,734 -5,078 7,656 7,656 1,442
870,159 -351,972 518,187 518,187 28,949
98,808 -35,102 63,706 63,706 7,924
4,793,224 -1,842,164 2,951,060 2,951,060 216,689 173,260 -60,029 113,231 -9425 8680 -745
-444
-43,075
-3,912
-273,014
2,425,069
2,425,069 11,672
8,654
8,654
504,061
504,061 71,944
67,718 3,007,221
67,718 5,853 3,007,221 172,647
399673 399673
182807 -66247 116560 -3228 945 -2283

-452 -41,517 -4,039 -271,106
Disposals: Cost Accumulated depreciation Depreciation charge Closing net book value At 30 June 2011 Cost / revalued amount Accumulated depreciation 2,836,414 Depreciation rate (%) 2,836,414 14,176 -5,974 8,202 5 971,052 -436,564 534,488 10-May 112,585 -43,053 69,532 10-May 5,525,974 -2,502,935 3,023,039 10
2,836,414
8,202
534,488
69,532 3,023,039
Owned Assets Services and Other Equipment Computer and Furniture and Office Equipment Vehicles
Leased Assets Plant and Machinery Vehicles
Total
IT Installations
Equipment
n thousand) ---------------------------------------------------------------------------
30,853 -21,141 9,712 9,712 39
55,909 -40,134 15,775 15,775 2,341
67,130 -34,666 32,464 32,464 2,655
23,485 -11,486 11,999 11,999 3,387
98,419 -49,186 49,233 49,233 5,061 6,118 -2,450 3,668
479,689 -111,369 368,320 368,320 56,692 -173,260 60,029 -113,231
7,660 -2,711 4,949 4,949
6,552,906 -2,505,009 4,047,897 4,047,897 2,410,233 325,179
-6,118 2,450 -3,668 -12748 11032 -1716
-45 39 -6 -954 -4,944 -3,275 -1,345
-3278 2313 -965 -7,979 -32,226 -450
-371,618
8,797
8,797 101
13,172
13,172 3,594
31,844
31,844 1,288
14,035
14,035 1,910
49,018
49,018 3,283
279,555
279,555 27,212
831 6,409,975
831 6,409,975 11,672 287,832
1542 -825 717 -4311 1130 -3181

-876 -4,379 -3,195 -1,336 -7,488
-182807 66247 -116560
-1542 825 -717
399673 0 399673 -7539 2075 -5464 -357745 6745943

9,967,208 -3,221,265
-23,243
-114
8,022
30,993 -22,971 8,022 10
12,387
61,844 -49,457 12,387 30
29,937
71,073 -41,136 29,937 10
14,609
28,737 -14,128 14,609 10
42,349
106,834 -64,485 42,349 20
166,964
207,526 -40,562 166,964 10
0 20 -
6,745,943
14.2
Detail of operating fixed assets, exceeding the book value of Rupees 50,000 disposed of during the year is as follows: Accumulated Net book Sale depreciation value proceed 119 1,257 1,400 Gain/ (Loss) 143 Mode of disposal Negotiation Particulars of purchaser
Particulars Cost Vehicle Honda Civic LEF 08-353
1,376
Miss Bushra Naz Malik,
156-B, Shah Jamal, Lahore Honda Civic ARS-003 1,922 667 1,255 1,077 -178 Negotiation Abdul Hai Mahmood Bhaimia, 12th street, Khayaban-e-sehar, Phase 6, DHA Karachi EFU General Insurance Limited, Rawalpindi
Honda Reborn VTI
861
193
668
1,400
732
Insurance claim
Plant and Machinery Diesal Generator (Catterpilla r)
3,228
945
2,283
9,200
6,917
Negotiation
Frontier Techwood Industries, Lahore
7,387
Agrregate of other items of property, plant and equipment with individual book values not exceeding Rupees 50,000
1,924
5,463
13,077
7,614
152 7,539
151 2,075
1 5,464
55 13,132
54 7,668
Negotiation
the year is as follows:
Note
14.3 Depreciation charged during the year has been allocated as follows: Cost of sales Administrative expenses 14.4 Capital work in progress Civil works and buildings Plant and machinery 15.INTANGIBLE ASSET Computer software Year ended 30 June 2011 Opening net book vlaue Addition Amortization Closing net book value Cost as at 30 June 2011 Accumulated amortization Net book value Amortization rate (per annum) 16.INVESTMENT PROPERTIES Year ended 30 June Opening net book amount Fair value gain Closing net book amount 16.1) The fair value of investment properties comprising land and building situated at Lahore and Rawalpindi have been determined at 30 June 2011 and 30 June 2010 by an independent valuer having relevant professional qualifications. The fair value was determined on the basis of professional assessment of the current prices in an active market for similar properties in the same location and condition. No expenses directly related to invetrment properties were incurred during the year. 17.1) During the period, the Company has made an investment of Rupees 999.710 million by subscribing 153,801,617 ordinary shares of Rupees 10 each of Maple Leaf Cement Factory Limited - subsidiary company vide agreement dated 10 March 2010 between Mercury Management Incorporated, Hutton Properties Limited, Zimpex (Private) Limited, Maple Leaf Cement Factory Limited and Kohinoor Textile Mills Limited, after approval of Securities and Exchange Commission of Pakistan. 17.2) Based on value in use calculations as at 30 June 2011, there was no impairment loss on investments in subsidiary companies (tested for impairment under IAS 36 (Impairment of Assets). The recoverable amount of investment in Maple Leaf Cement Factory Limited - subsidiary company was determined by an independent valuer. 30 32

338,107 19,638 350,778 20,840
357,745
105 1,643
371,618
67,593 18,731
1,748
86,324
9836 -273 9,563 9,836 (273) 9,563 33.33% 1,720,835
1,720,835
879 1,721,714 1,720,835
18.LONG TERM DEPOSITS Security deposits Less: current portion shown under current assets 19.STORES, SPARE PARTS AND LOOSE TOOLS Stores Spare parts Less: Provision against slow moving items 20.STOCK-IN-TRADE Raw material Work-in-process Finished goods
43,380
41,124
23 (7,622) 35,758 19.1 270,494 58,643 329,137 (744) 530,846 391,129 735,277 1,657,252
(6,237) 34,887 250,003 95,795 345,798 764,549 891,595 736,969 2,393,113
Note
21. TRADE DEBTS Considered good: Secured (against letters of credit) Unsecured Considered doubtful: Others - unsecured - Less: Provision for doubtful debts As at 01 July - Add: Provision for the year As at 30 June
166,654 540,746
747,285 581,780
707,400 1,329,065
2,274
0 0 0 0
33
2,274 2,274
0
21.1 As at 30 June 2011, trade debts of Rupees 493.844 million (2010 : Rupees 568.309 million) were past due but not impaired. These relate to a number of independent customers from whom there is no recent history of default. The ageing analysis of these trade debts is as follows: Upto 1 month 1 to 6 months More than 6 months 22. ADVANCES Considered good: Employees - interest free - Executives - Other employees Advances to suppliers Letters of credit 23. SECURITY DEPOSITS AND SHORT TERM PREPAYMENTS Current portion of long tern deposits Short term prepayments 24. DUE FROM SUBSIDIARY COMPANIES Maple Leaf Cement Factory Limited Concept Trading (Private) Limited 24.1 This includes adjustment of sales tax refunds of the company against sales tax liability of subsidiary company including mark up thereon amounting to Rupees 45.512 million (2010 : Rupees Nil) and receivable against allocation of pool expenses.
293,516 167,262 33,066 493,844
433,697 116,664 17,948 568,309
1,390 224 1,614 222,985 16,732
621 1,040 1,661 593,555 1,579
241,331
18 7,622 11,423 19,045
596,795
6,237 9,341 15,578
24.1 24.2
63,636 14,987 537,508 601,144 14,987
24.2 This represents the receivable from Concept Trading (Private) Limited - a wholly owned subsidiary company on account of disposal of available for sale investment in Security General Insurance Company Limited.
Note 25.OTHER RECEIVABLES Considered good: Sales tax refundable Custom duty receivable Mark up subsidy Export rebate Insurance claims Research and development support Duty draw back Cotton claim Others 26. SHORT TERM INVESTMENTS Investments at fair value through profit or loss Quoted companies Loss on remeasurement of fair value during the year 26.1 During the current year, the Company has disposed of its available for sale investment in Security General Insurance Company Limited to Concept Trading (Private) Limited - a wholly owned subsidiary company at a price of Rupees 84 per share by considering the valuation report, prepared by Messers Anjum Asim Shahid Rahman, chartered Accountants (Member of Grant Thornton International) based on generally accepted valuation method. 26.2 Security General Insurance Company Limited ceased to be an associated company from 22 June 2011 27. CASH AND BANK BALANCES Cash in hand Cash at bank: - On current accounts - On saving accounts
2011 (Rupees in
2010 housand)
242,402 3,642 11,689 42,664 281 472 119,555 12,238 432,943
260,161 3,642 47,561 175 473 25,808 28,745 20,376 386,941
702 -102
13,611 -5,595
600
8016
1,301 98,651 321,044
961 65,217 12,673
419,695
420,996 28. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE Land Advance against land -
77,890
78,851 552,923 100,000
652,923
28.1 During the current year, the Company has disposed off its land at M.M. Alam Road, Lahore at an amount of Rupees 119.200 million. Advance of Rupees 100 million for purchase of land has been received back. Further, the Company has ceased to classify the other land at Raiwind Road as held for sale after managements assessment that the criteria prescribed by IFRS 5 Non-current Assets Held for Sale and Discontinued Operations is no longer being met. Now, this land at Raiwind Road has been classified as a non-current asset under the head Property, Plant and Equipment in these financial statements and is being carried at fair value in accordance with IAS 16 Property, Plant and Equipment. 29. SALES Export Local Duty drawback Export rebate 29.1 Local sales Less: Sales tax 29.2 Exchange gain due to currency rate fluctuations relating to export sales amounting to Rupees 15.966 million (2010: Rupees 35.245 million) has been included in export sales.
29.1
6,661,344 5,213,062 116,458 46,389 12,037,253 5,213,384 322 5,213,062
6,406,061 4,189,295 54,845 43,137 10,693,338 4,189,295 4,189,295
Note
30.COST OF SALES Raw materials consumed Cloth and yarn procured and consumed Salaries, wages and other benefits Dyes and chemicals consumed Processing charges Stores, spare parts and loose tools consumed Packing materials consumed Fuel and power Repair and maintenance Insurance Other factory overheads Depreciation Work-in-process Opening stock Closing stock Cost of goods manufactured Finished goods Opening stock Closing stock Cost of sales 30.1 Raw material consumed Opening stock Add: Purchased during the year Less: Closing stock 30.2 Salaries, wages and other benefits include provident fund contribution of Rupees 16.631 million s 30.1

5,349,247 3,347,817
30.2
14.3
1,443,577 699,683 341,963 13,508 513,192 325,142 575,707 55,592 21,969 33,860 338,107 9,711,547 891,618 -391,129 500,489 10,212,036 736,946 -735,277 1,669 10,213,705 709,197 4,997,799 5,706,996 -357,749 5,349,247
2,464,620 740,125 518,965 12,267 608,508 374,847 619,450 59,445 22,915 39,795 350,778 9,159,532 546,792 -891,618 -344,826 8,814,706 614,769 -736,946 -122,177 8,692,529 558,033 3,498,981 4,057,014 -709,197 3,347,817
Note
31.DISTRIBUTION COST Salaries and other benefits Outward freight and handling Clearing and forwarding Travelling and conveyance Insurance Vehicles running expenses Electricity, gas and water Postage, telephone and fax Legal and professional Sales promotion and advertisement Commission to selling agents Miscellaneous expenses 31.1 Salaries and other benefits include provident fund contribution of Rupees 1.399 million (2010: Rupees 1.284 million) by the Company. 32.ADMINISTRATIVE EXPENSES Salaries and other benefits Travelling and conveyance Repairs and maintenance Rent, rates and taxes Insurance Vehicles running expenses Printing, stationery and periodicals Electricity, gas and water Postage, telephone and fax Legal and professional Security, gardening and sanitation Amortization Depreciation Miscellaneous expenses 32.1 Salaries and other benefits include provident fund contribution of Rupees 3.008 million (2010: Rupees 2.800 million) by the Company. 33. OTHER OPERATING EXPENSES Auditors remuneration Donations Loss on disposal of land classified as held for sale Loss on remeasurement of fair value of investments at fair value through profit or loss Provision for doubtful debts Provision for slow moving stores and spares 33.1 33.2 31.1

39,374 39,011
30,995 232,933 13,732 505 3,389 910 2,247 80 13,804 83,955 3,139 425,063
30,549 227,943 17,911 348 3,252 808 2,832 16,726 54,501 3,937 397,818
32.1
107,214
93,990
15 14.3
6,744 9,123 7,061 4,481 9,574 4,115 2,506 5,607 5,895 20,424 273 19,638 16,084 218,739
5,587 8,280 9,001 4,600 7,296 4,359 2,589 4,878 4,433 19,813 20,840 9,437 195,103
1,608 451 34,050 102 2,274 744
1,265 8,100
Workers profit participation fund Workers welfare fund Miscellaneous 33.1 Auditors remuneration Statutory audit fee Certifications 33.2 None of the directors and their spouses have any interest in the donees fund
9.1
10,188 15
20,227 7,686 45
49,432
1,200 408
37,323
1,000 265
1,608
1,265
Note
34. OTHER OPERATING INCOME Income from financial assets: Exchange gain Gain on disposal of investments at fair value through profit or loss Gain on disposal of investment - Security General Insurance Company Limited Gain on remeasurement of fair value of investments at fair value through profit or loss Return on bank deposits Dividend income Income from related parties: Dividend income - Security General Insurance Company Limited Mark up on loan to Maple Leaf Cement Factory Limited Income from non-financial assets: Scrap sales Gain on disposal of property, plant and equipment Gain on remeasurement of fair value of investment property Miscellaneous
5,570 1,227 34.1 1,268 266 538,808 15,997 2,517 18,514 29,898 7,668 879 3 38,448 595,770 530,477
19,261
1,869 953 425 22,508 12,797 12,797 29,175 6,049 8,122 43,346 78,651
14.2
34.1 This represents gain on disposal of available for sale investment in Security General Insurance Company Limited to Concept Trading (Private) Limited - a wholly owned subsidiary company 35. FINANCE COST Mark-up/finance charges/ interest on: Long term financing Short term borrowings Liabilities against assets subject to finance lease Workers profit participation fund (WPPF) Employees provident fund trust Bank charges and commission 36. TAXATION For the year Current tax Deferred tax
9.1
263,350 721,918 14,211 2,445 6,407 1,008,331 28,963 1,037,294 132,181 68,758 200,939
329,679 683,516 21,169 188 2,968 1,037,520 35,248 1,072,768 83,824 14,763 98,587
36.1
36.1 Provision for current tax represents final tax on export sales, minimum tax on local sales and tax on income from other sources under the relevant provisions of the Income Tax Ordinance, 2001. Numeric tax reconciliation has not been presented, being impracticable.
Note
37. CASH GENERATED FROM OPERATIONS Profit before taxation Adjustment for non-cash charges and other items: Depreciation Amortization Finance cost Gain on sale of property, plant and equipment Gain on disposal of investments at fair value through profit or loss Gain on disposal of investment - Security General Insurance Company Limited Gain on remeasurement of investment property Dividend income Return on bank deposits Provision for doubtful debts Provision for slow moving stores and spares Loss on disposal of non-current assets classified as held for sale Gain / (loss) on remeasurement of investments at fair value through profit or loss Working capital changes 37.1 Working capital changes (Increase) / decrease in current assets: Stores, spare parts and loose tools Stock-in-trade Trade debts Advances Security deposits and short term prepayments Due from subsidiary companies Other receivables Increase / (decrease) in trade and other payables
2011 (Rupee in
688,790 357,745 273 1,034,849 -7,668 -1,227 -530,477 -879 -16,263 -1,268 2,274 744 34,050 102 1,437,349 2,998,394
37.1
16,661 735,861 619,391 355,464 -3,467 -585,867 491,475 1,629,518 -192,169 1,437,349
2010 thousand)
376,448 371,618 1,072,768 -6,049 -
-13,222 -953 -1,869 -1,124,424 674,317
-41,851 -613,287 -278,964 -293,433 12,805 -4,330 -95,866 -1,314,926 190,502 -1,124,424
38. REMUNERATION OF CHIEF EXECUTIVE OFFICER, DIRECTORS AND EXECUTIVES Chief Executive Officer Directors 2011 Managerial remuneration Contribution to provident fund Housing and utilities Medical Group insurance Club subscription Others 4,920 315 67 189 5,491 Number of persons 38.1 The Chief Executive Officer and directors are provided with the Companys maintained vehicles, free medical facilities and residential telephone facilities for both business and personal use. Chief Executive Officer is also provided with free furnished accommodation alongwith utilities. Executives are provided with the Companys maintained vehicles in accordance with the90,000 (2010: Rupees (2010: 2) directors was Rupees Company policy. The 70,000). 39. TRANSACTIONS WITH RELATED PARTIES Subsidiary companies Purchase of goods and services Sale of goods and services Purchase of property, plant and equipment Sale of property, plant and equipment Purchase of shares Associated Company Dividend income Post employment benefit plan Contribution to provident fund Other related parties Sale of vehicles 2011 2010 (Rupees in thousand) 479 484 147 1,770 204 419 200 15,997 21,038 2,477 12,797 20,897 1 2010 2011 2010
-----------------------( Rupees in Thousand )----------------5,300 5,157 308 158 154 133 87 84 1,229 1,246 95 92 64 185 641 1 6,915 3 6,736 3
Executive 2011 2010 44,856 3,005 9,021 2,586 252 6,096 65,816 31
ees in Thousand )--------------------58,529 3,546 11,388 9,953 324 2,893 86,633 49
40.EARNINGS PER SHARE - BASIC AND DILUTED There is no dilutive effect on the basic earning per share which is based on: Profit attributable to ordinary shares Weighted average number of ordinary shares Earnings per share 41. PLANT CAPACITY AND ACTUAL PRODUCTION SPINNING: - Rawalpindi Division Spindles (average) installed / worked 100% Plant capacity converted into 20s count based on 3 shifts per day for 1,095 shifts (2010: 1,095 shifts) Actual production converted into 20s count based on 3 shifts per day for 1,095 shifts (2010: 1,095 shifts) - Gujar Khan Division Spindles (average) installed / worked (Numbers) 85,680 (Kilograms in thousand) 33,620 23,547 (Numbers) 70,848 2011 (Kilograms in thousand) 32,042 25,989 (Numbers) 2011 487,851 221,964,572 2.2
Rupees in thousand Numbers Rupees
100% Plant capacity converted into 20s count based on 3 shifts per day for 1,095 shifts (2010: 1,095 shifts ) Actual production converted into 20s count based on 3 shifts per day for 1,095 shifts (2010: 1,095 shifts) WEAVING: - Raiwind Division Looms installed / worked 100% Plant capacity at 60 picks based on 3 shifts per day for 1,095 shifts (2010: 1,095 shifts) Actual production converted to 60 picks based on 3 shifts per day for 1,072 shifts (2010: 1,072 shifts) PROCESSING OF CLOTH: - Rawalpindi Division Capacity at 3 shifts per day for 1,095 shifts (2010: 1,095 shifts) Actual at 3 shifts per day for 1,095 shifts (2010: 1,095 shifts) POWER PLANT: - Rawalpindi Division (Mega Watts) Annual rated capacity (based on 365 days) Actual generation Main engines Gas engines - Raiwind Division Annual rated capacity (based on 365 days) Actual generation Gas engines
204 (Square meters in thousan 72,568 66,580
(Meters in thousand) 41,975 21,367
207,787 884 60,935 54,460 22,432
2010 277,861 145,526,216 1.91
85,680 Kilograms in thousand) 37,950 35,211 70,848 2010 33,313 31,295
rams in thousand)
204 Square meters in thousand) 72,568 68,605
ters in thousand) 41,975 34,653
207,787 2,198 78,080 54,460 26,212
42. SEGMENT INFORMATION
Spinning 2011
5,508,677 -4,667,274 841,403 -16,650 -74,787 -91,437
Weaving 2011
3,917,979 -3,375,707 542,272 -70,903 -68,961 -139,864
42.1
SALES COST OF SALES GROSS PROFIT DISTRIBUTION COST ADMINISTRATIVE EXPENSES PROFIT BEFORE TAX AND UNALLOCATED INCOME AND EXPENSES
2010
4,822,128 -3,599,136 1,222,992 -16,234 -64,130 -80,364
2010
3,079,523 -2,698,019 381,504 -57,076 -60,939 -118,015
(------------------------------------------------ ( R u p e e s in t h o u s
749,966 UNALLOCATED INCOME AND EXPENSES FINANCE COST OTHER OPERATING EXPENSES OTHER OPERATING INCOME TAXATION PROFIT AFTER TAXATION
1,142,628
402,408
263,489
42.2 Reconciliation of reportable segment assets and liabilities 2011

TOTAL ASSETS FOR REPORTABLE SEGMENT UNALLOCATED ASSETS TOTAL ASSETS AS PER BALANCE SHEET All segment assets are allocated to reportable segments other than those directly relating to corporate and tax assets TOTAL LIABILITIES FOR REPORTABLE SEGMENT UNALLOCATED LIABILITIES TOTAL LIABILITIES AS PER BALANCE SHEET 998,668 1,142,941 1,860,641 1,927,037
Spinning 2010
2,399,058
2011
Weaving 2010
1,211,488
(------------------------------------------ ( R u p e e s in t h o u s a n
2,741,104 2,187,389
Processing and home textileElimination of inersegment 2011

5,463,823 -5,023,950 439,873 -337,510 -74,991 -412,501
Company 2011 2010

10,693,338 -8,692,529 2,000,809 -397,818 -195,103 -592,921
2010
2011
5,474,514 -2,853,226 -5,078,201 396,313 -324,508 -70,034 -394,542 0 2,853,226 0
2010
-2,682,827 2,682,827 0
---- ( R u p e e s in t h o u s a n d ) -----------------------------------------------)12,037,253 -10,213,705 1,823,548 -425,063 -218,739 0 -643,802
27,372
1,771
1,179,746
1,407,888
-1,037,294 -49,432 595,770
-1,072,768 -37,323 78,651
-200,939 -98,587 -691,895 -1,130,027 487,851 277,861
Processing and home textile 2011 2010 2011

2,707,311 2,973,709
Company 2010
7,635,804 8,666,861 6,584,255 10,473,044 17,057,299
R u p e e s in t h o u s a n d ) --------------------------------------)-
16,302,665
4,257,469
5,386,980
7,116,778 1,113,754 8,230,532
8,456,958 1,565,248 10,022,206
43.FINANCIAL RISK MANAGEMENT 43.1 Financial risk factors The Companys activities expose it to a variety of financial risks: market risk (including currency risk, other price risk and interest rate risk), credit risk and liquidity risk. The Companys overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Companys financial performance. The Company uses derivative financial instruments to hedge certain risk exposures. Risk management is carried out by the Companys finance department under policies approved by the Board of Directors. The Companys finance department evaluates and hedges financial risks. The Board provides principles for overall risk management, as well as policies covering specific areas such as currency risk, other price risk, interest rate risk, credit risk, liquidity risk, use of derivative financial instruments and non derivative financial instruments and investment of excess liquidity. a) Market risk (i) Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Currency risk arises mainly from future commercial transactions or receivables and payables that exist due to transactions in foreign currencies. The Company is exposed to currency risk arising from various currency exposures, primarily with respect to the United States Dollar (USD) and Euro. Currently, the Companys foreign exchange risk exposure is restricted to bank balances, the amounts receivable / payable from / to the foreign entities. The Company uses forward exchange contracts to hedge its foreign currency risk, when considered appropriate. The Companys exposure to currency risk was as follows: (a) Market risk Cash at banks - USD Trade debts - USD Trade debts - Euro Trade and other payable - USD Net exposure - USD Net exposure - Euro The following significant exchange rates were applied during the year Rupees per US Dollar Average rate Reporting date rate Rupees per Euro Average rate Reporting date rate Index 218,000 4,485,184 57,000 4,646,184 -
85.25 86.05 114.54 124.89 Impact on profit 2011 --------------- (RUPEES IN THOUSAND) ----------------28 28
KSE 100 (5% increase) KSE 100 (5% decrease)
(iii) Interest rate risk This represents the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.The Company has no significant long-term interest-bearing assets. The Companys interest rate risk arises from long term financing, liabilities against assets subject to finance lease and short term borrowings. Financial instruments obtained at variable rates expose the Company to cash flow interest rate risk. Financial instruments obtained at fixed rate expose the Company to fair value interest rate At the balance sheet date the interest rate profile of the Companys interest bearing financial instruments was:
37,000 11,864,000 832,000 30,000 11,871,000 832,000
83.55 85.4 107.92 104.33

after taxation
Impact on statement of other comprehensive income 2011 2010
2010 UPEES IN THOUSAND) ----------------401 -401

Fixed rate instruments Financial liabilities Long term financing Short term borrowings Floating rate instruments Financial assets Bank balances- saving accounts Financial liabilities Long term financing Short term borrowings Liabilities against assets subject to finance lease Fair value sensitivity analysis for fixed rate instruments The Company does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore, a change in interest rate at the balance sheet date would not affect profit or loss of the Company. Cash flow sensitivity analysis for variable rate instruments If interest rate at the year end date, fluctuates by 1% higher / lower with all other variables held constant, profit after taxation for the year would have been Rupees 48.934 million (2010 : Rupees 65.712 million) lower / higher, mainly as a result of higher / lower interest expense on floating rate borrowings. This analysis is prepared assuming the amounts of liabilities outstanding at balance sheet dates were outstanding for the whole year. (b) Credit risk represents the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was as follows: Investments Deposits Trade debts Advances Accrued interest Due from subsidiary companies Other receivables Bank balances The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings (If available) or to historical information about counterparty default rate: Credit risk
196,551 1,435,000
407,742 1,555,000
321,044 1,686,873 3,695,265 89,873
12,673 1,920,759 4,515,435 135,030
600 43,380 707,400 1,614 46 601,144 24,208 419,695
642,111 41,124 1,329,065 1,661 141 14,987 49,296 77,890
1798087
2156275
Short term
Banks National Bank of Pakistan Allied Bank Limited Askari Bank Limited Bank Alfalah Limited Faysal Bank Limited Habib Bank Limited MCB Bank Limited NIB Bank Limited A-1+ A1+ A1+ A1+ A1+ A-1+ A1+ A1+
RATING Long Term Agency

AAA AA AA AA AA AA+ AA+ AA AA AAAAA AJCR-VIS PACRA PACRA PACRA PACRA JCR-VIS PACRA PACRA PACRA PACRA PACRA JCR-VIS JCR-VIS
2011 2010 RUPEE IN THOUSAND

4,666 6,507 46,473 32,275 774 50 26,419 1,657 32 11,765 618 7 754 32,531 7,822 1,421 4,108 67 9,907 12,313 88 30 540 319 2,945
The Royal Bank of Scotland A1+ Limited My Bank Limited A2 The Bank of Punjab Meezan Bank Limited Silk bank Limited Standard Chartered Bank (Pakistan) Limited United Bank Limited Al-Baraka Islamic Bank Limited Bank Al Habib Limited Burj Bank Limited Citi Bank N.A. A1+ A-1+ A2 A-1+ A-2 P-1 A1+ A-1 A-2
AAA AA+ A AA+ AA1
PACRA JCR-VIS PACRA PACRA JCR-VIS Moodys
10 224 6,410 1,604 279,710 494 419,695
2,309 133 2,565 38 77,890
Investments Security General Insurance Company Limited A JCR-VIS 634,095
419,695
711,985
The Companys exposure to credit risk and impairment losses related to trade debts is disclosed in Due to the Companys long standing business relationships with these counterparties and after giving due consideration to their strong financial standing, management does not expect non-performance by these counter parties on their obligations to the Company. Accordingly the credit risk is minimal (c) Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.
Note 21.
The Company manages liquidity risk by maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities. At 30 June 2011, the Company had Rupees 6,045 million available borrowing limits from financial institutions and Rupees 420.996 million cash and bank balances. The management believes the liquidity risk to be low. Following are the contractual maturities of financial liabilities, including interest payments. The amount disclosed in the table are undiscounted cash flows:
43.2 Financial instruments by categories Loans and Through profit Total receivables or loss -------------(Rupees in thousand)------------As at 30 June 2011 Assets as per balance sheet Investments Deposits Trade debts Advances Accrued interest Due from subsidiary companies Other receivables Cash and bank balances
600 43,380 707,400 1,614 46 601,144 24,208 420,996
600 43380 707400 1614 46 601144 24208 420996
1798788
600
1799388
Financial liabilties at amortized cost (------------------------------------------ ( R u p e e s in t h o u s a n d ) --------------------------------------)Liabilities as per balance sheet Long term financing Liabilities against assets subject to finance lease Trade and other payables Accrued mark-up Short term borrowings 1,883,424 89,873 754,095 230,138 5,130,265 8,087,795 Loans and receivables As at 30 June 2010 Assets as per balance sheet Investments Deposits Trade debts Advances Interest accrued Due from subsidiary companies Other receivables Cash and bank balances Through profit Available for or loss sale
(--------------------- ( R u p e e s in t h o u s a n d ) ----------------------)-
41,124 1,329,065 1,661 141 14,987 49,296 78,851 1,515,125
8,016 -
634,095 -
8,016
634,095
Financial liabilties at amortized cost (--------------------- ( R u p e e s in t h o u s a n d ) ----------------------)Liabilities as per balance sheet Long term financing Liabilities against assets subject to finance lease Trade and other payables Accrued mark-up Short term borrowings 43 a) Capital risk management 2,328,501 135,030 947,498 289,987 6,070,435 9,771,451
The Companys objectives when managing capital are to safeguard the Companys ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders through repurchase of shares, issue new shares or sell assets to reduce debt. Consistent with others in the industry and the requirements of the lenders, the Company monitors the capital structure on the basis of gearing ratio. This ratio is calculated as borrowings divided by total capital employed. Borrowings represent longterm financing, liabilities against assets subject to finance lease and short-term borrowings obtained by the Company as referred to in note 6, note 7and note 11 respectively. Total capital employed includes total equity as shown in the balance sheet plus borrowings. The gearing ratio as at year ended 30 June 2011 and 30 June 2010 is as follows:
Total
s a n d ) ----------------------)-
642,111 41,124 1,329,065 1,661 141 14,987 49,296 78,851 2,157,236
s a n d ) ----------------------)-
44. DATE OF AUTHORIZATION FOR ISSUE These financial statements were authorised for issue on September 28, 2011 by the Board of Directors of the Company 45. CORRESPONDING FIGURES No significant reclassification / rearrangement of corresponding figures has been made. 46. GENERAL Figures have been rounded off to the nearest thousand of Rupees unless stated otherwise. Borrowings Total equity Total capital employed Gearing Ratio 2011 2010
(Rupee in
7,103,562 4,386,636 11,490,198 62%
thousand)
8,533,966 3,361,268 11,895,234 72%
Pattern of Shareholding
1.CUIN (Incorporation Number) 2.Name of the Company 3.Pattern of holding of the shares held by the shareholders as at 4 2805 KOHINOOR TEXTILE MILLS LIMITED 30.06.2011
Size
of
No. of shareholders
2618 1028 385 625 121 45 26 12 9 8 4 7 7 7 5 6 1 2 1 1
from
1 101 501 1,001 5,001 10,001 15,001 20,001 25,001 30,001 35,001 40,001 45,001 50,001 55,001 60,001 65,001 70,001 75,001 85,001
to
-100 -500 -1,000 -5,000 -10,000 -15,000 -20,000 -25,000 -30,000 -35,000 -40,000 -45,000 -50,000 -55,000 -60,000 -65,000 -70,000 -75,000 -80,000 -90,000
1 4 4 2 1 2 1 2 1 1 1 1 1 1 1 1 1 2 1 2 1 1 1 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
90,001 95,001 105,001 115,001 120,001 145,001 150,001 160,001 165,001 170,001 180,001 200,001 205,001 210,001 215,001 235,001 250,001 275,001 295,001 300,001 315,001 405,001 440,001 445,001 450,001 470,001 490,001 495,001 620,001 625,001 645,001 690,001 780,001 840,001 855,001 905,001 1,115,001 1,560,001 1,620,001 2,360,001 3,325,001 3,935,001 5,075,001 8,260,001 9,045,001 10,040,001 10,825,001
-95,000 -100,000 -110,000 -120,000 -125,000 -150,000 -155,000 -165,000 -170,000 -175,000 -185,000 -205,000 -210,000 -215,000 -220,000 -240,000 -255,000 -280,000 -300,000 -305,000 -320,000 410,000 445,000 450,000 455,000 475,000 495,000 500,000 625,000 630,000 650,000 695,000 785,000 845,000 860,000 910,000 1,120,000 1,565,000 1,625,000 2,365,000 3,330,000 3,940,000 5,080,000 8,265,000 9,050,000 10,045,000 10,830,000
1 1 1 4,980
45,495,001 60,040,001 60,205,001
45,500,000 60,045,000 60,210,000
Holding
Total shares held

72,426 297,212 288,723 1,657,868 893,760 559,950 495,236 276,807 247,750 252,476 157,817 299,846 342,073 367,213 290,604 374,734 67,000 145,937 75,600 88,214
92,350 399,010 430,524 232,119 121,000 300,000 150,223 321,085 169,838 171,793 180,004 201,156 208,272 215,000 218,000 236,000 251,293 553,549 300,000 605,291 315,847 406,936 440,500 447,218 450,216 474,988 988,483 500,000 622,811 627,849 645,500 691,753 784,047 841,200 858,917 905,062 1,116,000 1,560,500 1,621,517 2,362,066 3,326,368 3,936,190 5,077,500 8,261,366 9,045,940 10,040,331 10,827,332
45,496,057 60,040,081 60,205,888 245,526,216
Categories of
5 Shareholders 5.1 Directors, CEO and their spouses

& minor children Mr. Tariq Sayeed Saigol, Chairman/Director Mr. Taufique Sayeed Saigol, Chief Executive/Director Mr. Sayeed Tariq Saigol, Director Mr. Waleed Tariq Saigol, Director Mr. Kamil Taufique Saigol, Director Mr. Zamiruddin Azar, Director Mr. Arif Ijaz, Director Mrs. Shehla Tariq Saigol, spouse of Mr. Tariq Sayeed Saigol
No. of Shareholders
Shares Held
10,040,331 10,827,332 315,847 70,937 2,500 5,930 2,500 450,216 21,715,593 45,496,057 3,326,368 18,247 3,344,615 4,014,452 848,734 213,851
8
5.2 Associated Companies, undertakings and related parties Zimpex (Private) Limited 5.3 NIT and ICP National Bank of Pakistan, Trustee Deptt. IDBP (ICP UNIT) 5.4 Banks, Development Financial Institutions, Non-Banking Financial Institutions 5.5 Insurance Companies 5.6 Modarabas , Leasing and Mutual Funds 5.7 Shareholders holding Ten Percent or more voting interest in the Company refer 5.2 & 5.8 b 5.8 General Public a. Individuals b. Foreign Investor (s) 5.9 Joint Stock Companies 5.10. Public Sector Companies and Corporations 5.11 Executives 5.12 Others Artal Restaurant Int Limited Employees Provident Fund Fikree Development Corporation Limited Hussain Trustees Limited Securities & Exchange Commission of Pakistan The Deputy Administrator Abandoned Properties Organization The Ida Rieu Poor Welfare Association The Karachi Stock Exchange (Guarantee) Limited-Future Cont. The Okhai Memon Madressah Association Trustees Al-Abbas Sugar Mills Limited Employees Gratuity Fund Trustees Artal Restaurants Intl Employees Provident Fund Trustees Moosa Lawai Foundation United Executers & Trustee Company Limited University of Sindh 1
2 20 4 7
4,842 9 73
31,798,092 120,479,119 17,231,248 300,405
1,815 2,794 260 1 3,045 354 61,425 1 9,075 760 3,751 173 596
13 4980
84,050 245,526,216
Percentage of Capital
4.0893 4.4099 0.1286 0.0289 0.001 0.0024 0.001 0.1834 9 18.53 1.3548 0.0074 1 1.635 0.3457 0.0871
12.951 49.0698 7.0181 0.1224
0 100

Balance Sheet: As at June 30,2011

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Balance Sheet: As at June 30,2011

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Balance sheet

Equity and liabilities

Issued, subscribed and paid up share capital

Profit and Loss Account

2011 2010 (Rupees in thousand)

The annexed notes from an integral part of these financial statement

Statement of Comprehensive income

TOTAL COMPREHENSIVE INCOM FOR THE YEAR

The annexed notes from an integral part of these financial statement

For the year ended June 30, 2011

Cash Flow Statement

2,998,394 -1,094,698 -13,397 -162,285 -871 -1,270

674,317 -968,040 -108,787

CASH FLOWS FROM INVESTING ACTIVITIES

Advance against purcahse of land received back

-1455770 342,145 78851 420,996

712916 -1,446 80297 78,851

Profit and Loss Account

The annexed notes from an integral part of these financial statement

Statement of Comprehensive income

32,632 (8,566) 24,066

For the year ended June 30, 2011

Cash Flow Statement

2,998,394 674,317 -1,094,698 -968,040 -13,397 -162,285 -108,787 -871 -1,270

CASH FLOWS FROM INVESTING ACTIVITIES

Advance against purcahse of land received back

Statement of Changes in Equity

Share Capital Capital Reserves Share premium Fair vlue reserve

1455262 1455262 1000000 2455262 -

The annexed notes form an integral part of these financial statements

583336 24066 607402 -

1604079 301927 1906006 25368 1931374

3059341 301927 3361268 1000000 25368 4386636

Notes to the Financial Statements

relevant to the Company

ognized on the date of bill of lading.

nding and rates applicable thereon.

3. ISSUED SUBSCRIBED AND PAID UP SHARE CAPITAL 2011

3.1 Movment during the year

2011 2010 (Rupee in thousand)

1,455,262 1,000,000 2,455,262

96,057 (2010: 22,510,635) ordinary

2011 2010 (rupees in thousand)

Fair value reserve - net of deferred tax

144919 144919 1450491 335964 1786455 1931374

144919 462483 607402 1450491 -151887 1298604 1906006

2011 2010 (Rupee in thousand) 462483 438417

5.SURPLUS ON REVALUATION OF LAND AND INVESTMENT PROPERTIES

010 : Rupees 134.816 million

394,104 394,104 331,963

119,580 167,594 2,813

11.1 11.2 11.3 -

1,879,564 1,815,701 1,435,000

2,285,452 2,200,553 1,555,000 29,430

----------------------------------------------------------------------------------------------------- (Rupees in thousand) ------------------------------------------------------------------------

14,836 14,836 14,836 2,410,233

12,734 -5,078 7,656 7,656 1,442

870,159 -351,972 518,187 518,187 28,949

98,808 -35,102 63,706 63,706 7,924

182807 -66247 116560 -3228 945 -2283

Leased Assets Plant and Machinery Vehicles

30,853 -21,141 9,712 9,712 39