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Annual Report 2011

Table of ContentsKOHINOORTEXTILEMILLSLIMITED

CompanyCompanyVisionMissionStatementStatementNoticeOrganizationalDirectors'BriefCalendarBoardKeyDistribution

CONSOLIDATEDFINANCIALSTATEMENTDirectors'Auditors'BalanceProfitStatementCashStatementNotesFORMFlowandtoOFSheet.................................................

01

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HorizontalVerticalStatementReviewAuditors'BalanceProfitStatementCashStatementNotesPatternCodeComplianc

.....................................................94theReport..................................................................................................93PRO

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CorporateOperatingProfileFlowandoftoCommitteesStatement...................................................................................

YReportlossStatementofofConsolidatedComprehensiveChangesAccounton Consolidated........................................

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................4ofReportofAnalysisStatementSheet......................................................................................................40C

..................................................98in.......................................................................................96EquityFinancialincom

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orporatetheofReport..................................................................................................39AnnualProfile..........................

..........................................................................99FinancialStatements..............................................100...................

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..........................................................................2InformationReport.............................................................................

.............................................97Statements ...................................92

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.....................12LossStatementHoldingAnalysisofofofofofGovernance..........................................................................

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............36NotableofofwithFinancialEthicsStrate

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Company ProfileTHENThecompanyfabricwereGujarCompanyacquiredprocessingKhan,ANDinNOW1968.bycommencedwayonfacili

TheofofdyeingofadvantageoptimizationhomecountsweavingCompany'sandtextilesusingofprintingwidehavegreat

ThepreparingCompanyitsmanagementhasbeeninvestingtomeetheavilythechallengesinInformationofmarket

Kohinoorwellmanufacturing.as supportingTextileMillstheLimitedongoingcontinuesimprovementtoensureproceSalesTrend TangibleFix

14,000 8,000

12,000 7,000

10,000 6,000

02 8,0002005-06 2006-07 2007-08 2008-09 2009-10 2010-11 5,0003,0002,0001,0004,000-2005-06 2006-07

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tiesThetheofinitialmerger.Raiwind-MangawereoperationcapacityaddedofandinRoadits1953spinningRawalpindinear

rcottonproductionforrangebeenthefabricsmarketandexportofupMan-madegreigeforatfacilitiesallaccess.themarket

echnology,integration.trainingofitshumanresources and

ssthatinitsourcurrentendeavorcompetitiveto maintainpositionworldismaintainedbest practiceas dAssets

2007-08 2008-09 2009-10 2010-11

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as aLahorecapacityprivateunitcomprisedinwaslimitedDistrictaugmented.companyKasur25,000andAdditionalspin

.threefabrics.homenowFullyfibers.sites.BothtextilecompriseTheequippedtheTheprocessingmarket.dyeingweaving

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lesandonbecametheandGulyanaproduction600a publiclooms.RoadfacilitieslimitedLater,near

51,902laboratoryandThefacilitiesfacilitiesstitchingringstitchingspindlesfacilitiesatatfacilitiesRaiwindfacilitiestheca

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ableforRawalpindiarecomprisequalityproducebeingofspinningcontrolunitaugmented204adiversifiedareloomsaa

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ndwidecapableprocesscapabletorangerangetakeof

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Annual Report 2011

Company InformationBoardMr.Mr.Mr.Mr.Mr.Mr. ChairmanC.E.O ShareVision3-C,LawrenceTel:Fax:E-mail:Website:(92-042)LDA(92-042)RegistrarCo

AuditMr.Mr.Mr.Mr.Mr.Zam ChairmanMemb BankersAlAlliedAskariBankBarakaAlfalahBankBankBankLimitedLimitedLimited(Pak

ChiefSyedMohsinFinancialRazaOfficerNaqvi BankBurjCitibank,BankAl-HabibN.A.LimitedLimitedCompanyMr.MuhammadSecretaryAshraf FaysalHSBCMCBBankBankBankLimitedMiddleLimitedEastLimited

ChiefMr.AuditorsM/s.CharteredBilalRiazInte MeezanNationalNIBSaudiInvestmentSilkBankBankPakBankBankLimitedLimitedInd

Registered42-LawrenceTel:Fax:(92-042)(92- StandardTheUnitedBankBankCharteredofPunjabLimitedBank(Pakistan)Limited

MillsNote:Website:PeshawarTel:8ThTel:GulyanaTel:KTMLs(92-051)(92-042)(92-0513)K.M.,Road,Financialwww.

03

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[email protected],www.vcl.com.pkRoad,36375531-3637533936374839Lahore.Ltd

istan)Limited

ustrialCo.LimitedofLtd.Pakistan&Agricultural

kmlg.comMangaRoad,5473940-335394133-35564472-74GujarRawalpindiRaiwindStatementsKhan,Fax:Fax:Road,F

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x:District(92-051)(92-0513)are(92-042)DistrictalsoRawalpindi5471795availableKasur35394132564337attheabov

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ewebsite.

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Vision04 TheStatedThenTheProfitableTermsStakehold

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ersKohinoorMostRemainOfVisionIndustryProgr

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essiveCompanyInterest.IsAsTextileToStandard

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AchieveInMillsAndPakistanLimitedAndAndIn

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Annual Report 2011

MissionAndTechnology,ContinuousImplementedTheInnovativeToCompan 05

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yItsIndustryCustomers,ProcessProductsAndShallManagedBest

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OfAchieveAndHavingSuppliersPractice,ServicesTheItsSourced,

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issionAndBestHumanAndStakeholders.LeadingDeveloped,Sold

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ThroughResourceTheseEdgeA

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Statement of Ethics and

Business 2011 - 2012ThefollowingprinciplesconstitutethecodeofconductwhichallDirectorsand employeesofKohinoor

TextileMillsLimitedarerequiredtoapplyintheirdailyworkandobserveintheconductofCompany's

business.WhiletheCompanywillensurethatallemployeesarefullyawareoftheseprinciples, itisthe

responsibilityof each employee to implement the Company's policies.Contravention is viewed as

misconduct. Thecodeemphasizes the need fora high standardof honestyand integritywhich are

vitalforthesuccessofanybusiness.

PRINCIPLES

1. Directorsandemployeesareexpectednottoengageinanyactivitywhichcancauseconflictbetween

theirpersonalinterestandtheinterestoftheCompanysuchasinterestinanorganizationsupplying

goods/services to the Company or purchasing its products. In case a relationship with suchan

organizationexists,thesamemustbedisclosedtotheManagement.

2. DealingswiththirdpartieswhichincludeGovernmentofficials,suppliers,buyers,agentsandconsultants

mustalwaysensurethattheintegrityandreputationoftheCompanyisnotinanywaycompromised.3. Directorsandemployeesarenotallowedtoacceptanyfavors,giftsorkickbacksfromanyorganization

dealingwiththeCompany.

4. Directors andemployeesarenotpermittedtodivulge anyconfidentialinformationrelating tothe

Company toanyunauthorizedperson. Norshouldtheyissueanymisleadingstatementspertaining

totheaffairsoftheCompany.

5. TheCompanyhasstrongcommitmenttothehealthandsafetyofitsemployeesandpreservationof

environmentandtheCompanywillperseveretowardsachievingcontinuousimprovementofitsHSE

performancebyreducingpotentialhazardspreventingpollutionandimprovingawareness.Employees

are requiredtooperate theCompany'sfacilitiesand processeskeepingthiscommitment inview.

6. Commitment andteam work arekeyelements toensure thattheCompany's workis carriedout

effectivelyandefficiently. Alsoallemployees willbeequallyrespectedandactions suchas sexual

06 harassment anddisparaging remarksbased ongender, religion,race or ethnicitywillbeavoi

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ded.

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Annual Report 2011

Statement of Strategic

Objectives2011 - 2012FollowingarethemainprinciplesconstitutethestrategicobjectivesofKohinoorTextileMillsLimited:

1.0 facilities;EffectiveuseofavailableresourcesandimprovedcapacityutilizationoftheCompany'sproduction

2.0 Modernizationofproductionfacilitiesinordertoensurethemosteffectiveproduction;

3.0 Effectivemarketingandinnovativeconcepts;

4.0 Implementationofeffectivetechnicalandhumanresourcesolutions;

5.0 includingStrengtheningenergyindependencesupply,transportationintermsofandsecurelogisticssupplyservices;of

6.0 Explorealternativeenergyresources;

7.0 optimizationFurtherimprovementsofmanagementincorporateprocesses;codegovernancethroughrestructurin

8.0 professionals,benefitsPersonnelindevelopment,accordanceensuringwithsafecreatingscopelabourproperandenvir

9.0 implementationemissions;Complianceandwithoflocaltechnologiesandinternationalallowingenvironmentaltocom

#### Implementationofprojectsinsocialandeconomicdevelopmentofcommunities.

07

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low-costservicesandresources,

ofassetsand

onment,qualityenvironmentoftheircompetitivework;forprofessionalstaffremunerationgrowthofhighlyandsoci

plywithandthequalitylimitationsmanagementimposed onstandards,pollutant

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lskilled

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Notice of Annual General ####NoticeLIMITEDLawrenceis(theherebyRoad,Company)Lahore,given thattowilltransactthebe43rdheldtheAnnualonfollo

OrdinaryBusiness:-

1.0 2011To

receive,togetherconsiderwith

theandDirectors'adopt

theandauditedAuditors'accountsreportsoft2.0 TheAccountants,ToappointBoardofAuditorsDirectorsthe ofretiringthehasCompanyapprovedauditors,fo

SpecialBusiness:-

3.0 modification,Toconsiderandadditionifdeemedor deletionfit,topassinthetermsfollowingofSectionreso

accordedadvancesancommencingonemeetingResolvedofsimilaraggregatepercentheldfromnatureunder

SecretaryallsuchResolvedactionsdocumentsoffurthernecessarytheCompanyforthatintheMr.relationpur

BYORDEROFTHEBOARD

08 Lahore:October10,2011 (MuhammadCompanySecretaryAshraf)

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wingMonday,Generalbusiness:-OctoberMeeting31,of2011themembersat3:00 PMofatKOHINOORitsRegisteredT

hereon.the

Company

for

the

year

ended

June

30,rthetheonappointmentyeartheendingrecommendationofonM/s.JuneRiaz30,2012Ahmadofandthe&fixCompany,

lution208 ofastheaspecialCompaniesresolutionOrdinance,withorwithout1984:-

yabovewayfromonsumtimeSectionOctobertooftheofNovemberthetospecialRs.averagetimeextent20830029,tores

osebeTaufiqueandtoisofthe/SayeedgivingareinvestmentherebyeffectSaigol,singlyintoChiefthetheauthorizedsubsi

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EXTILEOffice,MILLS42-

udittheirremuneration.Committee.Chartered

olutionof2009Million01,ofborrowingMapletheRs.2011byCompanies200(RupeesLeafthetothatMillioncostsharehol

iaryspiritExecutiveandoncompanyintentand/orbehalfofMr.andofthistheMuhammadtospecialCompanysignandre

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ers,OctoberCementconsentofThreeOrdinance,thewhichFactory31,Company.Hundredand2013isthevalidapprovalL

solution.executeAshraf,totake

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imited,1984Company(bothtillVideMillionOctoberfordaysspecialofainvestmentsubsidiaryistheonly)inclusive)author

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ized31,Companyresolutionfor2011.aofinatperiodthetotheabepassedmark-upextendCompany,formandoftwoinis

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fageneralherebyratefacilityloanyearsuptoof/

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Annual Report 2011

NOTES:

1.0 daysthecloseShareCompanyinclusive).oftransferbusinessi.e.booksPhysicalonM/s.OctoberofVisionthetransfers

2.0 his/hermusttheAmembermeetingreachproxyeligibletheandtoCompany'smustattend,toattend,bespeakdulyR

3.0 theirNumbersencloseshouldCDC Shareholders,ComputerizedbringanandattestedthetheirusualentitledAccoun

4.0 Company'sShareholdersSharearerequestedRegistrar. toimmediatelynotifythechangeintheiraddresses, if

5.0 CardsMembers,to thewhoCompany'shavenot yetSharesubmittedRegistrar,photocopiesare requestedofthei

STATEMENTUNDERSECTION160(1)(b)OFTHECOMPANIESORDINANCE,1984(THEORDINANCE).

Thistransactedstatementat thesetsAnnualouttheGeneralmaterialMeetingfactspertainingof the Companyto thet

(i) Nameoftheinvesteecompany Maple Leaf Cement Factory Limited (MLCFL)

(ii) Amountofloan/advances Rs.300Million(RupeesThreeHundredMilliononly).

(iii) Purposeofloan/advances Toprovidedearnincometothesubsidiaryontheloancompany.and/orad

(iv) I beenwrittencompany,oftheprovid AsoutstandingtheshareholdersCompanycompany.ofauthorityJunehas30,a

09

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CDSCompany23,Consulting2011willwillTransactionLtd,remainbeconsidered3-C,closedLDAIDsFlats,receivedfromi

gisteredspeakstamped,andandvoteOfficevotesignedinsteadnotatandthislessofwitnessed.meetinghim/her.than4

tcopyNationaldocumentsoftohis/herNumbersIdentityattend,requiredCNICCardsspeaktoorproveforPassport./and

any,tothe

irtoComputerizedsend the sameNationalat the earliest.Identity

ospecialbe heldbusinesson Octoberproposed31, 2011.to be

ancestobe

gainstnotas2011,ofonwrittenspecialMLCFLOctoberasumoffresolutionwhichofany29,Rs.wasloan2009.42.995advan

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timeLawrence24-10-2011infororderattendingRoad,attoShare31-10-2011LahoreoftheRegistrarmeeting.upto(bot

hoursmayProxiesappointbeforein orderanotherthetimeto bememberforeffectiveholdingas

assportssuchhis/hervotepurpose.Representativesatinidentity,thisoriginalmeeting,andalonginofmustwithcasecorp

cedpassedtoFurther,themillioninvesteebyunderwasthethe

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htheof

oratebringParticipants'ofProxy,withmembersthemmustID

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(v) positioncompanypublishedA brief BasedfinancialpositiononofyeartheMLCFLauditedendedisas30finan

Particulars AmountRupees(000)

PaidGeneralAccumulatedSponsorsSu (5,976,651)(4,953,975)(1,769,

(vi) Rateofmark-uptobecharged; Mark-upaveragewillborrowingbechargedcostatoneofpercentthe

(vii) Particulars toand;thereof;beifobtainednotnee Noa subsidiarycollateralofistheconsideredCompany.necessarysinc

(viii)Source of loanor advancewillbe given; LoanoftheandCompany./oradvancewillbegiven outofthefund

(ix) Repaymentschedule; Theyears(bothtimestipulatedloantodaysfromtime/period.inclusive)

(x) CompanyfromBenefitsloanlikelyand ByofbeneficialandsubsidiaryprovidingitsShareholders.forloantheco

10 relativescompany. in the inves Thehaveproposedshareholdingsofcompany.theDirectorsnoDirector

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cialunder:-June 2011,statementsthe financialforthe

036)12,520,70013,073,2185,803,4583,306,4805,548,120Rs.Rs.(3.72)14.965,5690.52Nil

Company.abovethe

e MLCFLis

s

.NovemberadvancessubjecttoMLCFLwould01,availability2011willbetomakeforofOctoberafundsperiodpaymentwi

mpanyCompany/ advances,will(theimprovethemajorfinancialwhichshareholder)positionwill be

svestedinvestmentinandinterest,theareChiefinvesteealsoexceptdirectlyExecutiveDirectorscompanytoortheofindir

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thin31,of2013fromtwothe

ectly,ofextentandthethethatCompanyinvesteeofinsometheirthe

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Annual Report 2011

Organization Chart of KTM11

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L

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12 Directors

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to the ShareholdersReport

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Annual Report 2011

Review Of Operations

Financial Review

Information Technology

Social Compliance and Human Resource

Quality Management Systems

Safety, Health and Environment

Business Process Re-engineering

Liquidity Management

Future Outlook

Compliance of Code of Corporate Governance

Directors and Board Meetings

Criteria to Evaluate Board Performance13

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TheannualstatementsDirectorsreportforarethealongpleasedyearwithendedtoauditedpresentJune

REVIEWOFOPERATIONS

DuringCompanygrossvolatilityandperiod,supplyretailers.inwereprojected.thehasshiftmerchandisec

14 GoinghigherunitswhichManufacturi

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0,financialthe2011.43rd

onstraintsadversely.thehighledgreigeitsprocessedprofitcostgoodsthethefocustheincostDuewit

gtextilesoperationsfocusin theontospinning,threadforward,havemaximizingmarketfocusofhistoricallythecou

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essedInabilitythefabric.CompanyofashaveCompanyfinishedperiodandtotoarawawaymarketsr

nthasontheforweaving,fabricsalesmanufacturingproductsalreadytheCompanydivision.valueyieldedhighera

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sultatunprecedentedseveralalsovolatilityaofmaterials,Atmuchafromgoods.thetoimpactedund

dbegunofallowingfinishingeveryplansendThehighertoCompanyunitfineroftobenefititsthedivisions.margins.fo

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ertheofsignificantforhadreviewmassverybusinessbeginningrawlowhigherofWorkingcommitted

cusproducedspinningyarns,homewilltheon

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highreview,thesemerchandiserawcotton,value,itssuddenoperationsdeclinecosttopricesmateria

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lcostabsorborderscapitalofmassyarn,thanandtherisethetotoin

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Annual

FINANCIALREVIEW

Duringmillion),theofrawgrossmaterial.thewhileprofityearcosttounderRs.ofsales1,824review,increasedmillionComp

OperatingmadedueinvestmentsRs.1.91toanincreasedforafterprofittheoftaxthesameforprofitrawCompany.theperio1009080706050403022005-064951

2006-075644Debt:2007-084456 2008-094258 2009-103466 2010-112476 ThedividendoutCompanyandmore

G.P%toSale ShareHolde 25.00%20.00%15.00% 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 5,0004,5004,0003,5002005-06 2006-07

TheDirectorsrecommendasunder:

ProfitProvisionProfitAccumulatedAccumulatedbeforeafterfortaxationtaxationtaxationlossprofitbrought

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eport 2011

any's(2010:by17.50%salesRs.2,001toincreasedRs.million)10,214bymainlymillion12.57%due(2010:totoRs.substanti

dmaterialyearofRs.underlastEarning488costsyear.millionreviewperas whilestoodexplainedsharegrossatforRs.thea

managementtodeliverensureofDirectorsgeneralenhancedmoneyvalueduedueefficientrisktotohaveoftotocashallwo

sEquity2007-08 2008-09 2009-10 2010-11

RupeesThousandin

arriedforw (151,887)200,939688,790487,851335,964

15

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alRs.8,69212,037millionmillion).increases(2010:ThisindecreasedRs.10,693theprice

bove.profit1,726yeardecreasedmillionendedNetprofit(2010:Junefromincreased30,Rs.1,449the2011previouswasd

kingtheaversenesstheincreasedtheshownoperationsCompanyflowvolatilestakeholders.capitalconstraintstheircost

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uemillion).Rs.toperiod2.20saleTheasofCompanyprimarilyagainstequity

ofremainstextileofinabilityrequirementtheoftherawbanksmainlyCompanysector.committedtomaterialspaytoarisin

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goflendTheanytheto

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INFORMATIONTECHNOLOGY

Inofmonitoring.orderits inventorytofurtherandreduceorderinventorymanagementcostssystemsandoverheads,withth

SOCIALCOMPLIANCEANDHUMANRESOURCE

HUMANRESOURCE

Theimprovereduceproductivity.CompanyCompanytotalproductivityhopeslabourhasThistoembarkedbuildcostisandanat

CORPORATESOCIALRESPONSIBILITY

TheforcontributionscommunitiesGroupResponsibilityofyear.projecttheinLahoreitsartPhilanthropyCompanyYourperfor

QUALITYMANAGEMENTSYSTEMS

ThereputationandlargeQualitypointsstartingmaterialqualitycustomerconductingbeforeauditCompanyowesteamsduring

isworthnotingthattheCompany's

qualitymanagementsystemsareso

highly regarded that several

16 customers no longer requirethe presence of external auditors before delivery of finished goods.

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ethegoalCompanyof automationhasbegunandareal-timecompleteinventoryoverhaul

hroughmostongoinghasonproductiveaalreadymassiveimprovementsexercisemanagedcampaignandthrougheffecti

anceCardiachasandbyCompanyconsecutivelybuildingininandfacilityNationalhasthiswhichstrivesbeenregardasofh

part,theyassurancecontrolfromtoasitsauditsrepresentativearetheforatothecurrentcontinuesthehigh-qualityhande

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veintotoefficiencysignificantlysubstantiallywhichworkforce.andthe

sSayeedtoitvariousaExcellencethehascontributedrecognizedtoleaderCompanyreceivedGulabbeaSaigolpresence.a

checksfinalfactories,thisproductionofteamdeliveryfinishedinspection.reputation.business,tooccuracttocustomera

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socialconstructiveinDeviCardiacAwardinsocialby5thhasobligationsmedicalChestKohinoorthedonatedComplex201

ndsupplierenjoyofasgoodschain,whenatrawthetheallinIta

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0CorporateandPakistanHospitalmembersocialoncharitableMapleduringaataccountstateservices(GDCH)CentreGD

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H.SocialofLeafthetheof

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Annual Report 2011

SAFETY,HEALTHANDENVIRONMENT

TheorderFrequentCompanyto auditsensurecontinuesarecomplianceconductedtomeetandbywithcustomers,exceedth

SECURITY

ThecontinuesAgainstofinternationalCTPATAsThethepartCompanyCompanyCompanystandard.Terrorism).oftheto cust

BUSINESSPROCESSRE-ENGINEERING

Theallandreapedmajorwithchemical,quality,hopesreductionsofcut-and-sew.Companyitsthethatmultinationalgreatprod

LIQUIDITYMANAGEMENT

Thestock.near-termthemarket.CompanyTheallowedCompany'shasimposedittopolicyavoidstrictofthepurchasingsignifi

Inreducedordertoitimprovethroughitslong-termthe sale liquidityof Companyposition,assetstheCompanywith the

17

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sethestandardsregulatoryhealthandandagencies,safetythosestandardsandsetthebyrequiredCompany'sthe Com

mers,behasrequirementsispremisescompliantalsocompletelyAuditscompliantarearemanyofwithmonitoredcondu

ctionenvironmental,productionandfurtherinthebenefithasenergycostsprogressTheembarkeddepartments,chemi

antcontrolsandoninventoryinventory,storingonlylossesincludingthatrecentlyrawandmaterialexperiencedespecia

asproceedsprioritizedgoingreductionto theindebtcreditors.andhas

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any'sforSAown8000auditcertification.customers.teamsin

tedupdatedtheofwithCTPATwhichCTPATtheitsusingfrequentlyare(Customscertification,securitystandardsvideoin

alinteamsusageCompany'sofandthisenergy,intechnicalregardthesewhiletoonsupplierswithsubstantiallyroutelabo

llywhichcottonwillbyotherbeandconsumedparticipantsgreigefabricinthein

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dditionandsystemssurveillance.Tradesetregularly.alltobyareasPactandtheits

r,processingprojectsmaintainingduestandards.aspecialshorteningwhotoandwillcollaborationhaveresourcesdepa

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tmentfocusyieldreduceTheorcooperatedprojectssubstantialinimprovingCompanyfinishingwater,suchwithhasinas

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ater.

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FUTUREOUTLOOK

Weforesee textilesectorfacingtoughchallengesinthenextfinancialyearduetounprecedented rains

andfloodsincertaincottongrowingareasofthecountryresultinginperceivedcottonshortfallandvolatile

rawmaterialprices,increased competitionfrom theneighbouringcountries, continuedtrendofglobal

economicslowdown,prevailingenergyshortages,highrateofinflationandanticipatedrupeedevaluation.

YourCompanyhasdevisedadetailedstrategytoovercometheupcomingchallengesinthenextfinancial

year,major areascoveredunderthisstrategyare:

a. Activelymonitor themarket situationpostfloodperiodandbuycottonatthe dip when cotton

arrivalpickstoensureamplesupplyofcottonatminimumpossiblecosts.

b. Focus onproducinghigh threadcountswhereyour Companypossesses competitiveadvantage

realizingoptimalprofitsinourspinningdivisions.

c. Focusondiversebuthighcontributingcustomersasopposedtomassmerchandisecustomersthus

realizingbetterresultsinourhometextiledivision.

d. Inordertomitigate theeffectsofhighinflationandfinancialcosts,continuetopursuethepolicy

ofcostreductionsinevery businessprocessofthe company andreducedebtby sellingcertain

equity investments of the Company and applying proceeds to repay bank borrowings.

Basedonabove,weareconfidentthatyourCompanyisequippedtomeettheemergingchallengeofthe

18

future.

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COMPLIANCEOFCODEOFCORPORATEGOVERNANCE

ThearestandardconfirmssetBoardbythat:ofofthecorporateDirectorsChiefExecutiveperiodicallygovernance.andrevi

a)b)c ProperKeyTheaffairs,AppropriateandInternationalofThemonitored.ThereThereinOutstandingthefinancialop

Valu (Rs.217,644inthousand)

19

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ewsreviewedThe BoardthebyCompany'shasthereviewedBoard.strategicThetheBoardCodedirection.isofcommitte

ratingfinancialsystemaccountinghaslistingarebooksthebeennoresultaccountingtaxesofregulationsstatements,stat

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CorporateBusinesstoplansGovernancemaintainandtargetsahighand

mentsAccountingofandsignificantinternalnoaccountofandfinancialmaterialitsestimatesotheroperations,policiesco

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ntrolofofStandards,prepareddoubtsandthedeparturethedatagovernmentstockhaveCompanyanyofisuponarecashs

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oundlastbybeendepartureexchanges.asfromthesixapplicablebasedflowsthelevieshaveconsistentlyinmanagementy

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arstheCompany'sdesignandbeenarebestisontherechangesannexed.ingivenpracticesmaintained.andPakistan,reas

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nableappliedfrom,ofinabilityhastherelatedin inequity.ofbeenhasCompany,havepreparationcorporatetonote(s)c

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ntinuebeeneffectivelybeenand presentfollowedadequatelytogovernance,prudentoftheasfinancialimplementeda

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uditedfairlygoinginjudgment.preparationstatementsasdisclosed.itsaccounts.concern.detailedstateandof

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DIRECTORSANDBOARDMEETINGS

DuringDirectorsthewasyearasunderunder:-review,fourmeetingsofthe BoardofDirectorswereheldandtheattend

NameofDirectors Meetings Attended

Mr.Mr.Mr.Mr.Mr.Mr.Mr.Mr.SyedTariq 431244311

LeaveelectionnexttermofofabsenceDirectorsof threewasyearswasgrantedheldcommencingtounderDirectorstheprovi

Sr.No. NameofElectedDirectors Designation

45678123 Mr.Mr.Mr.Mr.SyedMr.Mr.Mr.WaleedK ChiefChairmanExecutive&/DirectorDirectorDirect

CRITERIATOEVALUATEBOARDPERFORMANCE

Followingaremaincriteria:

20 1.FinancialCapitalBoardProcedureBoardBoardAvailabilityRegularAssessmentreceivesapprovesfocusesan

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nceof

sionsAprilwho23,could2011.ofnotSectionattendThe178followingtheofmeetings.theEightCompaniesHowever,Dir

r-do--do--do--do--do-

followpoliciesforofoperatingboard'stoannualonupregularannualreviewedgoalsensuretomeasureaudit;budgetsgu

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ctorsOrdinance,duringwereelected:-the1984year,for

idelinefinancialandbusinesscomplianceandresults;theapprovedupdated;toreports;plan;impactmanagement;witha

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nually;ofboard'scodedecisions;of ethics and corporate governance.

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Annual Report 2011

AUDITCOMMITTEE

Byvirtueof electionof Directors,theBoardhasreconstituted thecompositionofAuditCommitteeas

under:-

Name Designation

Mr.ZamiruddinAzar Chairman(IndependentNon ExecutiveDirector)

Mr.SayeedTariqSaigol Member(NonExecutiveDirector)

Mr.WaleedTariqSaigol Member(ExecutiveDirector)

Mr.KamilTaufiqueSaigol Member(ExecutiveDirector)

Mr.ArifIjaz Member(IndependentNon ExecutiveDirector)

The Main terms of reference of the Audit Committee of the Company include the following:

a. Determination of appropriate measures to safeguard the Company's assets;

b. Reviewofpreliminaryannouncementsofresultspriortopublication;

c. Reviewofquarterly,half-yearlyandannualfinancial statementsofthe Company,prior totheir

approvalbytheBoardofDirectors,focusingon:

Majorjudgementalareas;

Significantadjustmentsresultingfromtheaudit;

Thegoing-concern

assumption;

Anychangesinaccountingpoliciesandpractices;

Compliancewithapplicableaccountingstandards;and

Compliance with listing regulations and other statutoryand regulatoryrequirements.

d. Ensuring coordination between the internal and external auditors of the Company;

e. Reviewofthescopeandextentofinternalauditandensuringthattheinternalauditfunctionhas

adequateresourcesandisappropriatelyplacedwithintheCompany;

f. Ascertainingthattheinternalcontrolsystemincludingfinancialandoperationalcontrols,accounting

systemandreportingstructureareadequateandeffective;

g. Institutingspecialprojects,valueformoneystudiesorotherinvestigationsonanymatterspecified

bytheBoardofDirectors;

h. Monitoringcompliance withthe best practicesofcorporate governance andidentificationof

significantviolationsthereof;andi. Consideration of any other issue or matter as may be assigned by theBoard of Directors.

21

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TradeofCompany'sShares

Duringwhereastheirspousesthenonefinancialandoftheminoryear,otherchildren)Mr.Directors,WaleedtradedTariq

PatternofShareholding

TheCompaniesstatementOrdinance,ofshareholding1984asatofJunethe Company30,2011isinannexed.accorda

Auditors

Thefinancialtheappointment.conclusionpresentstatementsauditorsof theofofAnnualthetheCompanyCompanyGe

TheasintheauditorsBoardforthcominghasfortherecommendedensuingAnnualyearGeneraltheasappointmentsug

Acknowledgement

ThecooperationatvariousDirectorsdivisions.andaresupport.gratefulTheytothealsoCompany'sappreciatemembers

ForandonbehalfoftheBoard

22 LahoreSeptember28,201TaufiqueChiefSayeedExecutiveSaigol

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CompanyinSaigol,theSecretary,sharesDirectorofthepurchasedCFOCompany.andExecutives50,000sharesofthefr

cewithCode ofCorporateGovernanceand

neralandM/s.Meeting.haveRiazissuedAhmadBeingreport&eligible,Company,tothetheymembers.Charteredhaveo

estedMeeting.byoftheM/s.AuditRiazCommitteeAhmad&subjectCompany,toapprovalCharteredoftheAccounta

,hardworkfinancialanddedicationinstitutionsofallandthecustomersemployeesforworkingtheir

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omCompanythestock(includingmarket

feredTheAccountantsauditorsthemselveswillauditedretireforthere-at

ts,members

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Annual Report 2011

Brief Profile of DirectorsMR.TARIQSAYEEDSAIGOL(CHAIRMAN/DIRECTOR)

OTHERCHAIRMANKohinoorZimpexENGAGEMENTS(Private)Maple/CHIEFLeafLimitedEXECUTIVEIndustries/LimitedDIRE

CHAIRMANMapleLeafCement/DIRECTORFactoryLimitedMr.reputedfinancialandTariqenergy.Saigolsector,SayeedFamilychemicals,SaigolwhoissyntheticthepioneeredChairmanfi

Mr.followingSaigolwhich,was schooledhestudiedatAitchisonLawatUniversityCollege,LawLahoreCollege,andgraduate

HeGrouphasmanufacturing.startedbeenin1976,ChairmanhiscareerhebecameofinKohinoor1968ChiefatKohinoor'sExe

HeCommerce2003-2006.hasbeenandChairmanIndustryAllforPakistan1995-97TextileandChairman,MillsAssociationAll

Mr.ofsubjects,CorporationsPakistan.SaigolincludinghasHeandbeenhasResourceExportalsoamemberservedPromotion,

theGovernmentin2000anditscritiqueprepared in2006.HejoinedtheCentralBoardofStateBankof

Pakistanforasecondtermin2007andwasamemberofthePrimeMinistersEconomicAdvisoryCouncil

establishedin2008.

HeofofUniversityStateGovernorsChandbaghtakesBankkeenofofofHealthinterestSchool,LahorePakistan.SciencesinUniver

Heisakeengolferandhas representedPakistanatGolfinSriLankaandPakistanin1967.

23

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TOR

bres,intextileofsugar,KohinoormanufacturingedibleMapleoilrefining,LeafafterGroupcivilpartitionengineering,(KM

dLahore. from GovernmentCollege,Lahore

utiveMapleLeafChemicalofGroupKohinoorwhichComplexTextilehasatMillsinterestsKalaLimited,ShahinKaku.textil

akistanin1992-94,CementManufacturersPresidentofLahoreAssociationChamberfromof

obilization.ofontheseveralFederalreorganizationHeGovernmentisExporttheauthorPromotionofCommissionsWAP

sityFoundertheHedevelopmentandisTrusteeofconferredpresentlyManagementofofTextileserveseducationwithSci

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LG).andlaterHeconstruction,isventuredamemberintocementofthethe

s,Rawalpindi.UponenergytrifurcationSinceand1984,cementofthehe

DAofTextileBoardandVisionEPB,andandCommittees2005RightCentralwhichSizingBoardwasonofofStateaadoptedS

nces,Sitara-e-IsaarUniversityon theinPakistan.BoardFoundingofPakistan,ofbyHeGovernorsChairmanPresidenth

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tatenumberownedBankbyof

smemberbeenofofatheofAitchisonmemberofPakistanBoardthe ofSyndicateofCollegeGovernorsthein 2006.Boar

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andof

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MR.TAUFIQUESAYEEDSAIGOL(CHIEFEXECUTIVE/ DIRECTOR)

OTHERDIRECTORMapleKohinoorZimpexLeafENGAGEMENTS(PrivateMapleCementLimited)LeafFactoryIndustriesLimited

Mr.companies.fromTaufiqueCornellHeUniversity,SayeedisaleadingSaigolUSAandisinChiefexperienced1974.ExecutiveH

Hedifferentisabusinessenvironments.manofimpeccable credibilityandvision andhassubstantialexperienceofwor

MR.SAYEEDTARIQSAIGOL(DIRECTOR)

OTHERCHIEFMapleDIRECTORKohinoorEXECUTIVELeafENGAGEMENTSMapleCementLeaf/ DIRECTORFactoryIndustriesLi

24 Mr.withindustry.company.SayeedadegreePriorHeTariqisintoamanagement.joiningSaigolmemberisMaplet

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imited

isindustrialistwidelyofKohinoortraveledofPakistan.TextileandhisMillsHespecialgraduatedLimitedforteisandasi

kingin

mitedLimited

heoftheChiefLeafMr.BoardExecutiveSayeedCementofGovernorsSaigolheofwasMaplealsoinvolvedofhasLeafthese

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anthedirectorIndustrialexportinbusiness.allEngineerKMLG

veralCement.inLahoresettingyearsUniversityHeupgraduatedofandworkmanagingofexperienceManagementfroma

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McGillapparelintheUniversitySciences.dyeingtextile

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Annual Report 2011

MR.WALEEDTARIQSAIGOL (DIRECTOR)

OTHERDIRECTORMapleLeafENGAGEMENTSCement FactoryLimited

Mr.holdsApartbusinessWaleedafromBachelorsforhisTariqKMLG.responsibilitiesSaigolDegreeHeisisathekeeninPolitical

MR.KAMILTAUFIQUESIAGOL(DIRECTOR)


Mr.careerConcordiabusinessKamilwithatTaufiqueUniversityKTMLKMLGPindi.SaigolininNovemberMontreal.istheelder

MR.ZAMIRUDDINAZAR(DIRECTOR)


Mr.Group.35humanyearsZamiruddinAsresourceofaexperiencenon-executiveAzardevelopmenthasatbeenGlaxodirector,

25

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ManagingingolfertextilesScienceandDirectorhehasisfromwonalsooftheinvolvedseveralKohinoorLondontournamen

008HesonhasasofDirector.beenMr.TaufiqueintensivelyHe holdsSayeedinvolveda Bachelor'sSaigol,inCEOtheDeg

activelyandPakistan,administration.heheadsinvolvedMr.theAzarinInternalvariousprovidesAuditcorporateinvalua

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tsinTextileidentifyingSchoolMillsofinEconomicsLimitedandPakistan.developing(Raiwind& PoliticalnewDivision).Sc

reedevelopmentKTML. inMr.AccountingKamilofthebegantextilefromhis

leCommitteesactivitiesinsightofoftheintotheKMLGprojectKohinoorcompanies.management,MapleWithLeaf

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ience.areasHeof

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MR.ARIFIJAZ(DIRECTOR)

Mr.(UET)experienceInsurance,HUBCO,ArifLahore,IjazandCEOinhasLahorethePakistanofdonedevelopmentKSBUniversity

HeisservingasMBAFacultymemberatUETLahoreandformervisitingfacultymemberofLUMS.

SYEDMOHSINRAZANAQVI(GROUPDIRECTORFINANCE/CHIEFFINANCIALOFFICER)

OTHERDIRECTORMapleLeafENGAGEMENTS/CementCHIEFACCOUNTANT/FactoryLimitedCFO

DIRECTORTrustInvestmentBanklimited

Mr.yearsMohsinofFinancialNaqvi,ManagementFellowmemberexperience.ofInstituteofCharteredAccountantsofPak

Areasstrategystructure,andtreasuryofexpertisedevelopment,implementingfunctionsinclude:ofacquisitionsbudgetaryth

HeandisservingformerboardboardmembermemberofofTrustKohinoorInvestmentMillsLimited,Banklimited.SaicVelcor

26 HeMorocco,hasexperienceJordanandofworkingPakistan.inseveralcountrieswhichincludeSaudiArabia,

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hisPumps,andBachelorMBADirectorofandManagementinfromgrowthElectricalofIranPakistanofCenterbusinessEngi

istan(FCA),withover22

efinancialCompany.controlprojections,andevaluationsprocedures,forecasting-ofimplementingbusinessshortunit

x,FranceandAl-WazanGroup,Kuwait

Kuwait,France,Philippines,

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neeringSciencesSteelforstrategy.ManagementMills,(LUMS).fromNationalHeUniversityhasalsoStudies.Refinery,ofs

,termfinancialandestablishinglong-termsoftware,company'scashorganizingflows,reportingbusinessfinance

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ervedEngineeringHeLahoreashastheoverStockCEOand20TechnologyofExchange,Adamjeeyears of

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Annual Report 2011

Calendar Of Notable EventsJULY 2010 - JUNE 2011

#JULY 1steditionofcompanymagazine"HumKohinoor"launchedJULY AchievedISO14001:2004CertificationAUGUST CompanyemployeesorganizedandallresidentsacelebrationofcompanyofPakistancolonyIndepe SEPTEMBER IssuanceofAnnualReport2010OCTOBER CompanymadebymanagementarrangedCricketstaffSuper&workers8Tournamentofalldepart OCTOBER IssuanceofAccountsfor1stQTREnded30thSeptember2010OCTOBER 42nd(Company)AnnualheldGeneralat3:00Meetingp.m.atofitstheRegisteredmembersOffice,ofDECEMBER Companyseniormanagersarrangedand2ndexecutivesCricketTournamentofalldepartmentsinw

#JANUARY CompanyarrangedBadmintonTournamentfortheemployeesFEBRUARY IssuanceofAccountsforHalfYearEnded31stDecember2010APRIL VolleyballTournamentarrangedbycompanyfortheemployeesAPRIL Hajjwereballotingselectedceremonytoperformheld,Hajjwhere2luckywinnersandonereserve APRIL

29IssuanceofAccountsfor3rdQTREnded31stMarch2011

27

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ndenceDaybyinviting

entsinwhichfullparticipationwas

KOHINOORlocatedat42-LawrenceTEXTILEMILLSRoad,LIMITEDLahore

ichfullparticipationwasmadeby

person

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Board CommitteesPROJECTMANAGEMENT COMMITTEE

ProjectapproveManagementchangeexpendituresCommitteeaboveofsenioracertainrepresentativeslevel. isf

MEMBERSManagingHeadHeadH -------InformationProductionMarketingHumanCommercialFinanceEngineeringResour

PossibleDevelopingToolsHandlingDevelopforreviewstandardsachievingfinancialaframeworkeachissues,&NO.MEETINGSHELD:10

BUSINESSPROCESSREENGINEERINGCOMMITTEE

Businesshelps youProcessrethinkReengineeringthe process byteamstartingseewhatwithtechnologythe capabilitiesal

MEMBERSManagingHeadHeadH ------InformationProductionMarketingHumanEngineeringFinanceResourceTechnolog

DesignWeUnderstandOurinvolvementaqualitybaselineBPRfocusimprovement.andteamforandbuildonan

28 NO.MEETINGSHELD:11

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rmedtodirecttheorganizationandalso

ceTechnology

sustainableoffollow-uptheforbudgetprojectintegratingcoastalprojectmonitoringareaseconomiesprogressplanning

lowsofyoumoderntodo,andinformationthen determinetechnology.ifthis

y

futureimpliesmeasurethesatisfactiontheimprovements.specificmostprototypetheofimportantexistingbusinesscus

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-activitiesandmodificationsandorenvironmentssubprojects

omers.of newprocessobjectivesprocessesprocessestoavoidsuchandasrepeatingthatcostensurereflectreduction,o

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fquickoldourmistakesdeliverytimebusinessreduction,andof resultstoprovidevision.outputand

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Annual Report 2011

ENERGYMANAGEMENTCOMMITTEE

Ener ---EngineeringProductionFinance

wastephasesofreportingEMCOurDevelopedTheResponsibleenergyappointmentteamdesignminimization,ofa

NO.MEETINGSHELD:12

29

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savingtoisbuilding'splanforminimizecommittedenergymeasures,thatofpollutionlife.helpaenvironmentalprocurem

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nt,fullforusraisingtimemeetannualprevention,energyourenergymonitoringimpacts.energyclimatemanagementres

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ourceawarenesscostItprotectionincorporatesandreductionsefficienttargetingandcoordinatorcommitments.corpor

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atematerialsenergyenergyfromefficiency,savings,wideensurescontinuousandenergyindoormaintainingthewaterim

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provements.monitoringairplanconservation,qualityproceeds.programinandall

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Key Operating And FinancialSix Years Summary

2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006

Netsale(Rs.000) 12,037,253 10,693,338 8,458,899 7,558,322 7,140,167 6,903,625

Profitability(Rs.000)ProvisionProfitGrossOperatingProfit//Profit(Loss 1,823,5481,726, 2,000,8091,44 1,259,906(439 1,162,7001,01 1,045,526575, 1,021,807298,204354,9848

FinancialPosition(Rs.000)

TangibleIntangibleInvestmentfixedassets&Other 11,763,6066,74 10,501,1916,4 8,143,6554,14 7,971,1693,97 7,632,7033,97 3,561,2591,800,0125,361,2

CurrentCurrentNetCapitalLess:workingRedeema (2,267,779)4,53 (1,613,030)6,5 (1,630,643)5,15,757,2215,47 4,547,0654,23 3,939,4173,855,5965,445,0

&Less:ShareRepresentedotherSurplusholdersliabi 1,423,6944,386,1,853,0683,36 2,190,0793,053,052,1283,93 2,959,0933,72 2,776,9852,668,107-

ShareReservescapital&un-app.Profit 2,455,2621,931,1,455,2621,90 1,455,2621,601,455,2622,47 1,455,2622,27 1,058,3741,609,733

4,386,636 3,361,268 3,059,341 3,935,098 3,726,034 2,668,107

CurrentAcidBreakupEarningDividendNetProfitDe 2417.8715.150. 3423.1018.710 4221.0214.89( 4427.0415.38( 4425.6014.64( 5125.2114.801.020.472.824

AverageInventoryAverageBonusCash collectio 30.8872.425.04 40.6087.534.1 51.5887.534.1 58.1898.093.7 100.7049.833. 10.0040.3984.414.32-

SummaryNetNetNetNetcashcashcashchangeflo (1,455,770)1,72 (310,582)(403, (644,726)106, (776,196)787, (1,155,933)(2 1,151,994(636,823)(226,700

QuantitativeYarnProduction(KgsKTMKGM"000") 23,54725,9894935,21131,295635,29826,318 36,60528,899 33,38826,028 31,22323,68054,903

ClothProcessingSales/Tran.for(LinearKTMKGMDi 11,0497,6003,4 11,3067,2024, 9,0296,0422,9 11,0556,7904, 10,6506,7883, 11,2347,5953,639

ProductionSales 34,65334,065 34,65334,065 30,62628,783 22,98823,581 27,35826,768 30,85521,860

30 WeavingProductionSales (RaiwindDi20,66719,717 21,48921,691 22,72723,316 21,98622,220 20,80621,094 20,09020,942

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ata

3,05656,780

1-

283,821

.320.04:49

)288,471

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Annual Report 2011Marketing, selling and administration expenses: 4.62%

Employeesremuneration: 8.11%

Financial Charges: 9.96%

Government taxes(includes income tax): 0.92%

Profit /(Loss) forthe period: 2.58%

Costof salesremuneration):(excludingemployees73.82%

2010Marketing, selling and administration expenses: 4.33%

Employeesremuneration: 6.70%

Financialcharges: 8.21%

Government taxes(includes income tax): 1.59%

Profit /(Loss) for the period:3.86%

Cost of salesremuneration):(excluding employees75.31%

2011

31

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32

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Annual Report 2011

33

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Statement of Compliance with

Code of Corporate GovernanceFor The Year Ended June 30, 2011

Thisingovernance,governance.ListingstatementRegulationswherebyisbeingofpresentedaStocklistedExchangescompanytoThe Company has applied the principles contained in the Code in the following manner:-

1.0 TheofindependentDirectors.Companynon-executiveAtencouragespresent,thethedirectors.Boardrepresenta

2.0 Thecompanies,Directorsincludinghaveconfirmedthis Company.that noneofthem isservingas aDirector

3.0 Alldefaulteda stockthe residentinexchange,paymentDirectorsofhasanyofbeenloanthe toCompanydeclare

4.0 NoforBoard.casualthe nextvacancytermoccurredcommencingintheAprilBoard.23,However,2011anddurin

5.0 ThebyallCompanytheDirectorshas preparedandemployeesa'StatementoftheofCompany.EthicsandBusi

6.0 ThepoliciesdatesBoardonofwhichhastheCompany.developedtheywereAapprovedacompletevision/mission

7.0 Allincludingof thethepowersappointmentCEO ofandtheotherandBoarddeterminationhaveExecutivebeen

8.0 Theinwereappropriatelyeverymeetingscirculatedquarter.recordedoftheatWrittenleastBoardandsevennotic

34 9 ThethemtheyandBoardtheareawarelistingawarehadofregulationstheirarrangedoftheirdutiesduties,Orienta

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he

complyisinmanagedwithPakistantheCodeforin compliancetheofCorporatepurposewithofGovernanceestablishin

tionofDirectorsofindependentincludestwonon-executivenon-executivedirectorsdirectorsonitsandBoardtwo

inmore thantenlisted

abankingarecompany,asregistereda defaulteraDFIas taxpayersoranbyNBFIthatandor,stockbeingnoneaofexc

geight Directorstheyear,electionwereelectedofDirectorsasfixedwasbyheldthe

essPractices',whichhasbeensigned

orrecordamendedstatement,ofparticularshas beenoverallmaintained.ofcorporatesignificantstrategypoliciesalo

fdulyDirectors,remunerationexercisedandhaveanddecisionstermsbeenandontakenconditionsmaterialbyoftransa

swerecirculated.dayspresidedofthebeforeBoardoverthemeetings,bymeetings.theChairmanalongThewithandmin

ionofandthepowersresponsibilities.StockCourseandExchanges.responsibilitiesforTheitsDirectorsDirectorsunderh

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the bestpractices(theaframeworkCode)ofcorporatecontainedofgood

hange.memberthemhasof

gandsignificantwiththe

ctions,theemploymentBoard.

utesagendatheBoardofandthemetworkingmeetingsatleastpapers,wereonce

veduringthealsotheCompaniesprovidedprecedingdeclarationsOrdinance,yearstomake1984that

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de,oneby theDirectorPakistanhasInstituteobtainedofcertificationCorporate

loyment,SecretaryandasHeaddeterminedofInternalbytheAudit,CEO.

liancedisclosed.withtherequirementsofthe

aresoftheCompany other

emembers.Three ofthem arenon-

dvisedrequiredheldatleastbytotheoncetheCode.everyCommitteeThequartertermspriorofforreferencetocomplian

rsPakistan.QualityoranyofandControlofthe(IFAC)thattheCompanypartnerstheReviewguidelinesfirmhaveprogram

ociatedinthethisListingregard.withRegulationsthemhaveandnotthebeenAuditorsappointedhavetoconfirmedprov

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ce.approvaloftheof

meofandtheonallconfirmedcodefirm,itspartnersoftheirofethicsthethatspousesInstituteareastheyadoptedinandha

ide

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vecomplianceofminorCharteredbeenbyInstitutechildrengivenwithAccountantsaInternationalofsatisfactorydoChar

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terednotholdof

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edofMILLStherespectiveLIMITEDintheCode(theStockofCompany)Exchanges,Corporate

eofreflectsoftoandvariousCorporatethereportextentthedocumentsstatusifGovernanceitwheredoesofpreparedth

ndoncontrols,todevelopinternalobtainthecontrolananCompany'seffectiveunderstandingcoversauditcorporateall

onsauditcommittee.ofofofrelatedcommittee.Directorswhichweremechanism.theKarachi,undertakenWepartyare

believematerialtheCompanythatrespects,theforStatementwiththeyearthe

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suchnot.Company'sisAcompliancethatreviewbyofthetheiscomplianceCompanylimitedcanBoardbeprimarilyofobje

isksapproach.oftheandgovernanceaccountingcontrols,Weare

arriedfornotareWetransactionsFurther,Lahoretheiroutonlyexecutedhaveonatconsiderationrequiredarm'sandnott

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ctivelytoDirectorswithcomplytheto

rmsallatsuchcarriedIslamabadbyarm'slengthequivalenttheandtransactionsBoardoutlengthhavepriceandStockan

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ensuredapprovaltooforpriceproceduresthoseareDirectorsnot.Exchangesrecordingalsocompliancethatrelatedrequi

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redandprevailtorequiredetermineproperplacementpartytoofintheberequirementtransactionsarm'sjustificationse

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aratelyCompanywhetheroflengthsuch

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Annual Report 2011

Financial Statmentsfor the Year Ended June 30, 2011

37

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38

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Auditors Report to the MembersWehaveauditedthe annexedbalancesheetofKOHINOORTEXTILEMILLSLIMITEDasat30June2011andthe

related profit andloss account, statement of comprehensiveincome, cash flow statement and statementof

changesin equity together with the notes forming part thereof,for the year then ended and we state that

wehaveobtainedall the information andexplanations which,to the bestof ourknowledgeand belief,were

necessaryforthepurposesofouraudit.

Itistheresponsibilityofthecompanysmanagementtoestablishandmaintainasystemofinternalcontrol,and

prepareandpresentthe abovesaidstatementsin conformitywiththeapprovedaccountingstandardsandthe

requirementsoftheCompaniesOrdinance,1984.Ourresponsibilityistoexpressanopiniononthesestatements

basedonouraudit.

WeconductedourauditinaccordancewiththeauditingstandardsasapplicableinPakistan.Thesestandardsrequire

thatweplanandperformtheaudit toobtainreasonable assuranceabout whethertheabovesaidstatements

arefreeof anymaterial misstatement.An audit includesexamining, ona test basis, evidencesupporting the

amountsanddisclosuresintheabovesaidstatements.Anauditalsoincludesassessingtheaccountingpolicies

andsignificantestimatesmadebymanagement,aswellas,evaluatingtheoverallpresentationoftheabovesaid

statements.Webelievethatourauditprovidesareasonablebasisforouropinionand,afterdueverification,we

reportthat:

(a) inouropinion,properbooksofaccounthavebeen keptby thecompanyasrequired bythe Companies

Ordinance,1984;

(b) inouropinion:

i) thebalancesheetandprofitandlossaccounttogetherwiththenotesthereonhavebeendrawnup

inconformitywiththeCompaniesOrdinance,1984,andareinagreementwiththebooksofaccount

andarefurther inaccordancewithaccountingpoliciesconsistentlyapplied;

ii) theexpenditureincurredduringtheyearwasforthepurposeofthecompanys business;and

iii) thebusiness conducted, investments madeand theexpenditure incurredduring the year werein

accordancewiththeobjectsofthecompany;

(c) in ouropinion andto the best of our information and according to the explanations given to us, the

balancesheet, profitand loss account, statement ofcomprehensive income,cash flow statementand

statementof changes in equity together withthe notes forming part thereof conform withapprovedaccounting standards as applicable in Pakistan, and, give the information required by the Companies

Ordinance,1984, in the manner so required and respectively givea true andfair view of the state of

thecompanysaffairs asat30June2011andoftheprofit, itscomprehensiveincome,itscashflowsand

changesinequityfortheyearthenended;and

(d) inouropinion, no Zakat was deductibleatsource underthe Zakat andUshr Ordinance,1980 (XVIIIof

1980).

RIAZAHMAD&COMPANY

CharteredAccountants

Nameofengagementpartner:

ATIFBINARSHAD

Date:September28,2011

ISLAMABAD

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2011 2010

ASSETS Note (Rupeesinthousand)

NON-CURRENTASSETS

Property,plantandequipment 14 6,747,691 6,496,299

Intangibleasset 15 9,563 -

Investmentproperties 16 1,721,714 1,720,835

Longterminvestments 17 3,248,880 2,249,170

Longtermdeposits 18 35,758 34,887

CURRENTASSETS 11,763,606 10,501,191

Stores,sparepartsandloosetools 19 328,393 345,798

Stock-in-trade 20 1,657,252 2,393,113

Tradedebts 21 707,400 1,329,065

Advances 22 241,331 596,795

Securitydepositsandshorttermprepa 23 19,045 15,578

AccruedInterest 46 141

Duefromsubsidiarycompanies 24 601,144 14,987

Otherreceivables 25 432,943 386,941

Shortterm

investments 26 600 642,111

Taxationrecoverable 129,909 99,805

Cashandbankbalances 27 420,996 78,851

4,539,059 5,903,185

Non-currentassetsclassifiedasheldfo 28 - 652,923

4,539,059 6,556,108

TOTALASSETS 16,302,665 17,057,299

DIRECTOR

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ProfitFor the yearandendedLossJune 30,Account20112011 2010

Note (Rupeesinthousand)

SALES 29 12,037,253 10,693,338

COSTOFSALES 30 (10,213,705) (8,692,529)

GROSSPROFIT 1,823,548 2,000,809

DISTRIBUTIONCOST 31 (425,063) (397,818)

ADMINISTRATIVEEXPENSES 32 (218,739) (195,103)

OTHEROPERATINGEXPENSES 33 (49,432) (37,323)

(693,234) (630,244)

1,130,314 1,370,565

OTHEROPERATINGINCOME 34 595,770 78,651

PROFITFROMOPERATIONS 1,726,084 1,449,216

FINANCECOST 35 (1,037,294) (1,072,768)

PROFITBEFORETAXATION 688,790 376,448

TAXATION 36 (200,939) (98,587)

PROFITAFTER

TAXATION 487,851 277,861

EARNINGSPERSHARE-BASICANDDIL 40 2.20 1.91

Theannexednotesformanintegralpartofthesefinancialstatements.

42 CHIEFEXECUTIVEOFFICER DIRECTOR

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StatementFor the year endedofJuneComprehensive30, 20112011 2010

(Rupeesinthousand)

PROFITAFTERTAXATION 487,851 277,861

OTHERCOMPREHENSIVEINCOME/(LOSS)

Surplusarisingonremeasurementofavailablefor

saleinvestmenttofairvalue - 32,632

Reclassificationadjustmentforgaininc (462,483) -

Deferredincometaxrelatingtosurplus- (8,566)

Othercomprehensiveincome/(loss)f (462,483) 24,066

TOTALCOMPREHENSIVEINCOMEFOR 25,368 301,927


CHIEFEXECUTIVEOFFICER DIRECTOR

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Income

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CashFor the yearFlowendedStatementJune 30, 20112011 2010


CASHFLOWSFROMOPERATINGACTIVITIES

Cashgenerated fromoperations 37 2,998,394 674,317

Financecostpaid (1,094,698) (968,040)

Workersprofitparticipationfundpaid (13,397) -

Incometaxpaid (162,285) (108,787)

Netincreaseinlongtermdeposits (871) (1,270)

Netcashgenerated from/(usedin)operatingac 1,727,143 (403,780)

CASHFLOWSFROMINVESTINGACTIVITIES

Capitalexpenditureonproperty,plant andequip (177,891) (281,042)

Capitalexpenditureonintangibleasset (9,836) -

Paymentfornon-currentassetsclassifiedasheldf - (51,261)

Investmentsmade (174) (200)

Returnonbankdepositsreceived 1,363 934

Proceedsfrom

sale

of

property,

plant

and

equipm 13,132 7,765

Proceedsfromsaleofinvestments 8,715 -

Proceedsfromsaleofnoncurrent-assetsclassified 119,200 -

Advanceagainst purcahseoflandreceivedback 100,000 -

Dividendreceived 16,263 13,222

Netcashfrom/(used in)investingactivities 70,772 (310,582)

CASHFLOWSFROMFINANCINGACTIVITIES

Proceedsfromlongtermfinancing 150,000 -

Repaymentoflongtermfinancing (595,077) (420,840)

Shorttermborrowings -net (940,170) 1,259,964

Repaymentofliabilities againstassetssubjecttofi (70,523) (90,286)

Repaymentoflease financeadvance - (35,922)

Netcash(used in)/fromfinancingactivities (1,455,770) 712,916Netincrease/(decrease)incashandcashequiva 342,145 (1,446)

Cashandcashequivalentsatthebeginningofth 78,851 80,297

Cashandcashequivalentsattheendoftheyear 420,996 78,851


44 CHIEFEXECUTIVEOFFICER DIRECTOR

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NotesFor the yeartoendedthe FinancialJune 30, 2011 State1.0 THECOMPANYAND ITSOPERATIONS

KohinoorTextileMillsLimited isa publiclimited companyincorporatedin Pakistan underthe Compani

Act,1913(nowCompanies Ordinance,1984)and listed onall Stock ExchangesinPakistan. Theregistere

officeof the Companyis situated at42-LawrenceRoad, Lahore.The principalactivity ofthe Company

manufacturingofyarnandcloth,processingandstitchingtheclothandtradeoftextileproducts.2.0 SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES

Thesignificantaccountingpoliciesappliedinthepreparationofthesefinancialstatementsaresetoutbelo

Thesepolicieshavebeenconsistentlyappliedtoallyearspresented,unlessotherwisestated:

2.1 BasisofPreparation

a) StatementofCompliance

Thesefinancialstatements havebeenpreparedinaccordancewithapprovedaccountingstand

asapplicable inPakistan.Approved accountingstandards compriseof such International Fi

ReportingStandards (IFRS)issued by the InternationalAccounting Standards Boardas aren

underthe CompaniesOrdinance, 1984, provisions of and directives issued underthe Com

Ordinance,1984.Incaserequirementsdiffer,theprovisionsordirectivesoftheCompaniesOrdi

1984shallprevail.

b) AccountingConvention

Thesefinancialstatementshavebeenpreparedunderthehistorical costconvention, exceptfo

certainfinancial instruments, investment propertiesand freehold land which arecarried a

fairvalues.ThesefinancialstatementsrepresentseparatefinancialstatementsoftheCompany.

consolidatedfinancialstatementsoftheGrouparebeingissuedseparately.

c) Criticalaccountingestimatesandjudgments

The preparation of financial statements in conformity with the approved accounting stan

requirestheuseofcertaincritical accountingestimates.Italsorequiresthemanagementtoex

itsjudgmentintheprocessofapplyingtheCompanysaccountingpolicies.Estimatesandjudgm

are continually evaluated and are based on historical experience and other factors, in

expectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.The

wherevarious assumptionsandestimatesare significanttothe Companysfinancial stateme wherejudgments wereexercisedinapplicationofaccountingpoliciesareasfollows:

Financialinstruments

Thefairvalueoffinancialinstrumentsthatarenottradedinanactivemarketisdeterminedby

valuationtechniques based on assumptionsthat aredependent on conditions existing atb

sheetdate.

Usefullives,patternsofeconomicbenefitsandimpairments

Estimateswithrespectto residualvalues,usefullives andpattern offlowof economicbenefi

basedontheanalysis ofthemanagementoftheCompany.Further,the Companyreviews the

ofassetsforpossibleimpairmentonanannualbasis.Anychangeintheestimatesinthefuture

affectthecarryingamountofrespectiveitemofproperty,plantandequipment,withacorresp

46 effectonthedepreciationchargeandimpairment.

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ents

s

is

.

rds

ancial

otified

anies

ance,

rthe

their

The

dards

rcise

ents

luding

reas

tsor

using

alance

s are

value

might

nding

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Inventories

Netrealizablevalueofinventoriesisdeterminedwithreferencetocurrentlyprevailingselling prices

lessestimatedexpendituretomakesales.

Taxation

Inmaking theestimates forincome tax currentlypayable bythe Company,the management takes

intoaccountthecurrentincome taxlawandthe decisionsofappellate authoritiesoncertainissues

inthepast.

Provisionsfordoubtfuldebts

TheCompanyreviews itsreceivable againstany provisionrequiredfor anydoubtfulbalanceson an

ongoingbasis.Theprovisionismadewhiletakinginto considerationexpectedrecoveries,ifany.

Impairmentofinvestmentsin subsidiarycompanies

Inmakinganestimateofrecoverableamountofthecompanysinvestmentsinsubsidiarycompanies,

themanagement considersfuturecashflows.

d) Amendmentstopublishedapprovedstandardsthatareeffectiveincurrentyearandarerelevantto

theCompany

The following amendments to published approved standards are mandatory for the Companys

accountingperiodsbeginningonorafter01July2010:

International

Accounting

Standard

(IAS)

1

(Amendment),

Presentation

of

Financial

Statements(effective for annual periods beginning on or after 01 January 2010). The amendment provides

clarificationthat the potential settlement of a liability by the issueof equity is not relevantto its

classificationascurrentornon-current.Byamendingthedefinitionofcurrentliability,theamendment

permitsaliabilitytobeclassifiedasnon-current(providedthattheentityhasanunconditional right

todefersettlement by transfer ofcashor other assetsfor atleast12 monthsafter theaccounting

period)notwithstanding thefact thatthe entitycould berequired by thecounterparty to settlein

sharesatanytime.Theapplicationoftheamendmentdoesnotaffecttheresultsornetassetsofthe

Companyasitisonlyconcernedwithpresentationanddisclosures.

IAS7(Amendment),StatementofCashFlows(effectiveforannualperiodsbeginningonorafter01

January2010).Theamendmentprovidesclarificationthatonlyexpenditurethatresultsinarecognized

asset inthe balance sheetcan beclassified as a cashflow from investingactivity.Theclarification

resultsinanimprovement inthealignmentoftheclassificationofcashflowsfrominvestingactivitiesin the cash flow statement and the presentation of recognized assets in the balance sheet. The

applicationoftheamendment doesnotaffect theresultsornetassets oftheCompanyasit isonly

concernedwithpresentationanddisclosures.

IFRS8(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)

annualimprovementsprojectpublishedinApril2009.Theamendmentprovidesclarificationthatthe

requirementfor disclosinga measureofsegmentassets isonlyrequired whenthe ChiefOperating

DecisionMaker(CODM)reviewsthatinformation.Theapplicationoftheamendmentdoesnotaffect

theresultsornetassets oftheCompanyasitisonlyconcernedwithpresentationanddisclosures.

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current

ds that

otto

and are

levant

tory

2013).

and

sand

gon

entity

setto

eetsand

dthe

tionof

ofthe

uary

ents,

arate

f IFRS

stee,

stee,

stee eparate

ncial

ose

actsof

er01

ents,

s and

uires

ureof

ancial

s of the

anuary

uired by

e.Fair

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valueisdefined asthe pricethatwouldbe receivedtosell anassetor paidto transfera liabilityin

anorderlytransactionbetween marketparticipantsatthemeasurement date.Themanagementof

theCompanyisintheprocessofevaluatingtheimpactsoftheaforesaidstandardontheCompanys

financialstatements.

IAS1(Amendments),PresentationofFinancial Statements(effective forannual periodsbeginning

onor after01July2012). It clarifiesthatanentity willpresent ananalysisofother comprehensive

incomeforeachcomponentofequity,eitherinthestatementofchangesinequityorinthenotesto

thefinancialstatements.

Thereareotheramendmentsresultingfromannualimprovements projectinitiatedbyInternational

AccountingStandardsBoardinMay2010, specificallyin IFRS7FinancialInstruments:Disclosures,

IAS1PresentationofFinancialStatementsandIAS24RelatedPartyDisclosures thatareconsidered

relevanttotheCompanysfinancialstatements. Theseamendmentsareunlikelytohaveasignificant

impactontheCompanysfinancialstatementsandhavethereforenotbeenanalyzedindetail.

g) Standards,interpretations and amendments to published approved standards that are not yet

effectiveandnotconsideredrelevant

Thereareotherstandards,amendments topublished approvedstandards andnewinterpretations

thataremandatoryforaccountingperiodsbeginningonorafter01July2011but areconsiderednot

tobe

relevant

or

do

not

have

any

significant

impact

on

the

Companys

financial

statements

and

are

thereforenotdetailedinthesefinancialstatements.

2.2 Employeebenefit

The Company operates an approved funded provident fund scheme covering all permanent

employees.Equalmonthly contributionsaremadebothby theCompanyandemployeesatthe rate

of8.33percentofbasicsalaryandcostoflivingallowancetothefund.TheCompanys contributions

tothefundarechargedtoprofitandlossaccount.

2.3 Taxation

Current

Provisionforcurrent taxisbasedonthe taxableincome fortheyeardeterminedinaccordancewith

theprevailinglawfortaxationofincome. Thechargeforcurrenttaxiscalculatedusingprevailingtax

ratesor taxratesexpectedtoapplytothe profitfortheyear ifenacted. Thechargeforcurrenttax

alsoincludes adjustments,whereconsidered necessary,to provisionfortaxmadeinpreviousyearsarisingfromassessmentsframedduringtheyearforsuchyears.

Deferred

Deferred taxis accountedfor using the balance sheetliability methodin respect ofall temporary

differences arising from differences between the carrying amount of assets and liabilities in the

financialstatementsandthecorrespondingtaxbasesusedinthecomputation ofthetaxableprofit.

Deferredtax liabilities aregenerallyrecognized for alltaxable temporary differencesand deferred

taxassets to the extent that it is probable that taxable profitswill beavailable against whichthe

deductibletemporarydifferences,unusedtaxlossesandtaxcreditscanbeutilized.

Deferredtaxiscalculatedattheratesthatareexpectedtoapplytotheperiod whenthedifferences

reverse basedon taxrates thathave been enacted or substantivelyenacted by the balancesheet

date.Deferred taxischargedor creditedinthe profitandlossaccount, exceptto theextent thatit

relatestoitemsrecognizedinothercomprehensiveincomeordirectlyinequity.Inthiscasethetaxis

alsorecognizedinothercomprehensiveincomeordirectlyinequity,respectively.

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2.4 Provisions

ProvisionsarerecognizedwhentheCompanyhasalegalorconstructiveobligationasaresulto

eventsanditisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillbereq

tosettletheobligationsandareliableestimateoftheamount canbemade.

2.5 Property,plantandequipment

Owned

Property,plant andequipment exceptfreeholdland andcapitalwork inprogressarestateda

lessaccumulateddepreciationandaccumulatedimpairment losses(if any). Costof property,

andequipmentconsistsofhistoricalcost,borrowingcostpertainingto erection/constructionp

ofqualifying assets andotherdirectly attributable costof bringingthe asset toworking co

Freehold land is stated at revalued amount less any identified impairment loss. Capital

progressisstatedatcostlessanyidentifiedimpairmentloss.

Subsequentcosts areincluded intheassetscarrying amount or recognizedas a separatea

appropriate,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwi

totheCompanyandthecostoftheitemcanbemeasuredreliably.Allotherrepairandmainte

costsarechargedtoprofitandlossaccountduringtheperiodinwhichtheyareincurred.

Depreciation

Depreciationon

property,

plant

and

equipment

is

chargedto

profit

and

loss

account

applyi

reducingbalance methodso asto write offthe cost / depreciable amount ofthe asset o

estimatedusefullivesattheratesgiveninNote 14.1.Depreciationonadditionsischargedfro

monththeassets areavailable forusewhile no depreciationischargedin themonthin whi

assetsaredisposedoff.Theresidualvaluesandusefullivesofassetsarereviewedbythemanag

ateachfinancialyearendandadjustedifimpactondepreciationissignificant.

Derecognition

Anitemofproperty,plantandequipmentisderecognizedupondisposalorwhennofutureeco

benefitsareexpectedfromitsuseordisposal.Anygainorlossarisingonderecognitionofthea

includedintheprofitandlossaccountintheyeartheassetisderecognized.

Leased

Financelease

LeaseswheretheCompanyhas substantiallyalltherisksandrewardsofownershipareclassifi financelease.Assetssubjecttofinanceleasearecapitalizedatthecommencementofthelease

atthe lowerofpresent valueofminimumlease paymentsunderthe leaseagreementsandt

valueoftheleasedassets,eachdeterminedattheinceptionofthelease.

Therelated rental obligation net of finance cost, isincluded in liabilities against assets s

finance lease.The liabilities areclassified as current and long term dependingupon theti

payments.

Eachleasepaymentisallocatedbetweentheliabilityandfinancecostsoastoachieveaconsta

onthebalanceoutstanding.Thefinancecostischargedtoprofitandlossaccountovertheleas

Depreciationofassetssubjecttofinanceleaseisrecognizedinthesamemannerasforowneda

50 Depreciationoftheleasedassetsischargedtoprofitandlossaccount.

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nition,orintendedthelossesincomecumulativeorinprofitonchangestountilinvestmentsavailable-for-salebeandheldt

closecapitalofmarkets,businessfaironthevaluebalanceis determinedsheetdate.by

heandbasisMeasurementofappropriate. valuationtechniquesas

FinanciallessimpairmentStatements.loss,ifany,inaccordancewith

rags arestated atlower of cost andnet

niltoolsvalue.areItemsvaluedinprincipallytransit areatvaluedmovingataveragecostcomprisingcost,whileinvoicei

sis. cost includingaportionof

alueplusotherchargespaidthereon.Waste

enecessaryin theordinarytomakecourseasale.ofbusiness lessthe

ssinitiallydependsto fairrecognizedvalueonwhetherat subsequentatfairthevaluederivativereportingontheisdate

s

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atementarewhichorclassifiedisdirectlyasdeterminedmayunder:ofbeotherinareassoldstatementavailable-for-sale.

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TheCompanydocuments attheinceptionofthetransaction therelationshipbetween thehedging

instrumentsandhedgeditems,aswellasitsriskmanagementobjectiveandstrategyforundertaking

varioushedgetransactions.TheCompanyalsodocuments itsassessment, bothathedgeinception

andonanongoingbasis,ofwhetherthederivatives thatareusedinhedgingtransactionsarehighly

effectiveinoffsettingchangesincashflowofhedgeditems.

Theeffectiveportionofchangesinthefairvalueofderivativesthataredesignatedandqualifyascash

flowhedgesisrecognized instatementofothercomprehensiveincome.Thegainor lossrelatingto

theineffectiveportionisrecognizedimmediatelyintheprofitandlossaccount.

Amountsaccumulatedinstatementofothercomprehensiveincomearerecognized inprofitandloss

accountintheperiodswhenthehedgeditemwillaffectprofitorloss.

#### Cashandcashequivalents

Cash and cash equivalents comprise cash in hand,cash at banks on current, saving and deposit

accountsand other short term highly liquid instruments that are readily convertible into known

amountsofcashandwhicharesubjecttoinsignificantriskofchangesinvalues.

#### Noncurrentassetsclassified asheldforsale

Non-currentassetsareclassifiedasheldforsaleif theircarryingamountwillberecoveredprincipally

through a sale transaction rather than continuous use. These are measured at lower of carrying

amountand

fair

value

less

costs

to

sell.

#### Borrowingcost

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.Allotherinterest,mark-upandotherchargesarerecognized inprofitandlossaccount.

#### Revenuerecognition

Revenuefromdifferentsourcesisrecognizedasunder:

a) Revenuefromlocalsalesisrecognizedondispatchofgoodstocustomers whileincaseofexport

salesitisrecognizedonthedateofbilloflading.

b) Dividendonequityinvestmentsisrecognized whenrighttoreceivethedividendisestablished.

c) Profit on depositswith banks is recognized on time proportion basistaking into account the

amountsoutstandingandratesapplicablethereon.

#### ForeigncurrenciesThesefinancialstatementsarepresentedinPakRupees,whichistheCompanysfunctional currency.

AllmonetaryassetsandliabilitiesdenominatedinforeigncurrenciesaretranslatedintoPakRupeesat

theratesofexchangeprevailingatthebalancesheetdate,whilethetransactionsinforeigncurrency

duringtheyearareinitiallyrecordedinfunctionalcurrencyattheratesofexchangeprevailingatthe

transactiondate.Allnon-monetaryitemsaretranslatedintoPakRupeesatexchangeratesprevailing

onthedateoftransactionoronthedatewhenfairvaluesaredetermined.Exchangegainsandlosses

arerecordedintheprofitandlossaccount.

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debts,

ilities

other

artyto

nsaction

profit

ts that

benefits

esare

Any

ition

losed

licy

adefor

tten

Any

ccount

mally

vents

ted as

h flows

sale

aining

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2011 2010

(Rupeesinthousand)

3.0 ISSUED,SUBSCRIBEDANDPAIDUPSHARECAPITAL

2011 2010

(NumberofShares)

1,596,672 1,596,672 OrdinarysharesofRupees10eachallotted 15,967 15,967

reorganisationofKohinoorIndustriesLimited

26,156,000 26,156,000 Ordinarysharesallottedunderscheme

ofarrangementof mergerofPartIIof

MapleLeafElectricCompanyLimited 261,560 261,560

26,858,897 26,858,897 Ordinarysharesallottedunderscheme

ofarrangementofmergerof 268,589 268,589

KohinoorRaiwindMillsLimitedand

KohinoorGujarKhanMillsLimited.

38,673,628 38,673,628 OrdinarysharesofRupees10eachissued

asfullypaidbonusshares 386,736 386,736

152,241,019 52,241,019 OrdinarysharesofRupees10eachissued

asfullypaidincash 1,522,410 522,410

245,526,216 145,526,216 2,455,262 1,455,262

3.1 Movementduringtheyear

145,526,216 145,526,216 At 01July 1,455,262 1,455,262

100,000,000 - OrdinarysharesofRupees10eachissued

duringtheyearasfullypaid 1,000,000 -

245,526,216 145,526,216 At 30June 2,455,262 1,455,262

3.2 Duringtheperiod,theCompanyhasissued100,000,000ordinarysharesofRupees 10eachatfac

ofRupees 10per shareotherwise than rightissue to Mercury Management Incorporated (25

shares),Hutton Properties Limited(52 million shares)and Zimpex(Private) Limited(23 million

inaccordancewith theagreementdated 10March2010 amongthethree allottees, theCompa

MapleLeaf CementFactoryLimited subsidiarycompanyaftertheapprovalofSecuritiesandExc

CommissionofPakistan.3.3 Zimpex(Private)Limitedwhichisanassociatedcompanyheld 45,496,057(2010:22,510,635)ordi

56 sharesofRupees10eachasat30June2011.

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value

million

shares)

yand

hange

ary

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,

33

h

8

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es 157

eriod

xclusive

onand

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6.2 NIBBankLimited(NIB-2)

ThisrepresentsLTF-EOPterm finance facilityofRupees300millionfor aperiodoffiveyearswitha

graceperiodofoneyear.Thefinancingisforimportof72PicanolOmniPluswidewidthAirJetLooms

andTying&Knottingmachineplusfive(5)GenSetgasgeneratorsbeingpart ofBMR.Itisrepayable

inequal quarterlyinstallments afterexpiry ofgrace period.Thefacility issecured against first pari

passuchargeoverfixedassetsofRaiwindDivision andpersonalguaranteesofthesponsordirectors.

Itcarriesfixed markupattherateof7%perannum.


Thisrepresentsa termfinancefacility ofRupees100millionfor aperiodofthree years.Thisfacility

isavailedto partiallyterm out existing exposureunder financeagainst packingcredit own source

facility.It isrepayable in thirty two equal monthly installments, commencing from July2011. The

facilityissecuredagainstexclusivechargeontheplantandmachineryimportedunderLTFfacilityand

personalguaranteesofthesponsordirectors.It carriesmark upattherateof3monthsKIBORplus

2.00% perannum.


Thisrepresentspre-shipmentloanbeingconvertedintolongtermloanduringtheyear.Itisrepayable

inthirtytwomonthlyinstallmentscommencingfromJuly2011.Thisfacilityissecuredagainstcollateral

coveringthe

exposureincluding

charges

on

bothcurrent

and

fixed

assets

of

the

Company

and

personal

guaranteesofthesponsordirectors.Itcarriesmarkupattherateof 3monthsKIBORplus2.00%per

annum.

6.5 AlliedBankLimited(ABL-1)

ThisrepresentstermfinancefacilityofRupees300millionobtainedforimportofstateofartmachinery

fora period offive years with a grace periodof oneyear. The facility is repayablein sixteenequal

quarterly installments commenced after conclusion of grace period. It issecured by first exclusive

chargeonmachineryimported.FacilityamountingtoRupees100millioncarriesmarkupattherate of

6monthsKIBORplus1.25%perannum,facility ofRupees125millioncarriesmarkupat therate of6

monthsKIBORplus1.75%perannumandfacilityofRupees75millioncarriesmarkupattherateof6

monthsKIBORplus2.50%perannumwithnofloorandcap.OnDecember28,2006loansamountingto

Rupees124.732millionwereconvertedtoLTF-EOPat7%perannumfixedrateofmarkup.

6.6 SaudiPakIndustrialandAgriculturalInvestmentCompanyLimited(SPIAICL-3)ThisrepresentstermfinancefacilityofRupees250millionobtainedfordebtreprofilingforaperiodof

fiveyearsincludinggraceperiodofoneyear.Thefacilityisrepayablein8equalsixmonthlyinstallments

commencedfrom June2007. Itissecured byfirst paripassuchargeby wayofhypothecationonall

presentandfutureplantandmachineryoftheCompanyandbywayofmortgageonlandmeasuring

121acres, 2 kanals and 1 marla, situated at main Peshawar Road, Rawalpindi with 25% margin.

Thefacility carries mark up at the rate of3 months KIBOR plus 1.70% per annum withquarterly

repricing.

6.7 SyndicatedTermFinance

Syndicatedterm finance of Rupees 1.750 billion was arranged through Standard Chartered Bank

(Pakistan)Limited(SCBL) to swaphigh pricedloans.Long term facilitywas arrangedand availedin

Islamicandconventionalmodeoffinancing.StandardCharteredBank(Pakistan) Limited(Arranger),

Allied BankLimited andBank of Khyberdisbursed Rupees 868.750 million underIslamic modeof

financingwhereasBankAlfalahLimited,FaysalBankLimitedandPakLibyaHoldingCompanyLimited

disbursedRupees 850millionunderconventionalmeans offinancing.Tenoroftheloanwas 5years

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. Duringthe

term finance

.Theloan

rst pari passu

warRoad,

pricedatthe

stedbythe

32.678

2010

housand)

155,26320,233

135,030

68,025

67,005

which range

values.The

additional

dinsurance

eoption at

resecured

rm deposits,

ublic limited

0

thanbutLateronenotfiveyearthanlateryears

-------

69,326

2,321

67,005

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2011 2010


8.0 DEFERREDINCOMETAX

Thiscomprisesoffollowing:

Deferredtax liabilityontaxabletemporary

differencesin respectof:

-Acceleratedtaxdepreciation 394,104 329,260

-Surplusonrevaluationofinvestment - 164,613

394,104 493,873

Deferredtax assetondeductibletemporary

differencesin respectof:

Unusedtaxlosses 331,963 335,877

62,141 157,996

9.0 TRADEANDOTHERPAYABLES

Creditors 615,087 788,562

Accruedliabilities 128,401 151,067

Advancesfromcustomers 11,089 18,593

Workersprofit

participation

fund 9.1 20,905 21,669

Workerswelfarefund 7,686 7,686

Unclaimeddividend 2,681 2,681

Withholdingtaxpayable 4,629 2,715

Payabletoemployeesprovidentfundtrust 36,287 42,096

Others 7,926 5,188

834,691 1,040,257

9.1 Workersprofitparticipationfund

Balanceason01July 21,669 1,254

Add: Interestfortheyear 35 2,445 188

Provisionfortheyear 33 10,188 20,227

Less:Paymentsduringtheyear (13,397) -

20,905 21,6699.1.1 TheCompany retains workers profit participation fund for its business operations till the da

allocation to workers. Interest is paid at prescribed rate under the Companies Profit (Worke

Participation)Act,1968onfundsutilizedbytheCompanytillthedateofallocationtoworkers.

2011 2010

(Rupeesinthousand)

#### ACCRUEDMARK-UP

Longtermfinancing 88,006 119,580

Shorttermborrowings 140,535 167,594

Liabilitiesagainstassetssubjecttofinancelease 1,597 2,813

230,138 289,987

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11. SHORTTERMBORROWINGS

Frombankingcompanies-secured

Shorttermrunningfinances 11.1 1,879,564 2,285,452

Othershorttermfinances 11.2 1,815,701 2,200,553

StateBankofPakistan(SBP)refinances 11.3 1,435,000 1,555,000

Temporarybankoverdraft - 29,430

5,130,265 6,070,435

11.1 Therunningfinance facilitiessanctionedbyvariousbanks aggregateto Rupees2,184million

Rupees2,390million).Theratesofmark-uprange from3.49%to21.90%(2010:from3.23% to

perannum.These arrangementsaresecuredby pledgeofrawmaterial,chargeoncurrentass

theCompanyincluding hypothecation ofwork-in-process,storesand spares,letters ofcredit

contracts,bookdebtsandpersonalguaranteesofthesponsordirectors.

11.2 TheothershorttermfinancefacilitiessanctionedbyvariousbanksaggregatetoRupees2,426

(2010:Rupees3,638million).Theratesofmark-up rangefrom13.45%to25.00% (2010:from

to18.00%)perannum.Thesearrangementsaresecuredbypledgeofrawmaterial,chargeonc

assets

of

the

Company

includinhypothecation

of

work-in-process,stores

Ktml Annual 2011

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