Notice of Annual General Meeting: by Order of The Board

NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the 37th Annual General Meeting of the members of KOHINOOR TEXTILE MILLS LIMITED will
be held on Thursday, October 27, 2005 at 10:30 a.m. at its Registered Office, 42-Lawrence Road, Lahore, to transact the
following business :-
1. To confirm the minutes of the Extra Ordinary General Meeting held on April 20, 2005.
2. To receive, consider and adopt the audited accounts of the Company for the year ended June 30, 2005,
together with the Directors’ and Auditors’ reports thereon.
3. To approve final dividend by way of issue of fully paid bonus shares @ 10% for the year ended June 30, 2005.
4. To appoint Auditors for the ensuing year and fix their remuneration.
5. To transact any other business with the permission of the Chair.
BY ORDER OF THE BOARD,
(Muhammad Ashraf)
Lahore : October 06, 2005 Company Secretary
NOTES:
1. Share transfer books of the Company will remain closed from 20-10-2005 to 27-10-2005 (both days inclusive)
and no transfer will be accepted during this period. The members whose names appear in the register of
members as at the close of business on 19-10-2005 will be treated in time for entitlement of 10% bonus shares.
2. A member eligible to attend and vote at this meeting may appoint another member as his/her proxy to attend
and vote instead of him/her. Proxies in order to be effective must reach the Company’s Registered Office not
less than 48 hours before the time for holding the meeting.
3. CDC Shareholders, entitled to attend and vote at this meeting, must bring with them their National Identity
Cards/Passports in original alongwith Participants’ ID Numbers and their Account Numbers to prove his/her
identity, and in case of Proxy, must enclose an attested copy of his/her NIC or Passport. Representatives of
corporate members should bring the usual documents required for such purpose.
4. Shareholders are requested to immediately notify the change in address, if any.

FUTURE PROSPECTS
Additions, replacements and modernization of machines undertaken at Rawalpindi and Gujar Khan Divisions are progressing
as per plan and will be completed during the current year. These latest machines will produce quality products and help in
increasing productivity. Expansion in cut and sew facilities will add value by converting fabric into made up products.
Indigenous cotton of good quality procured at reasonable rates during the previous season will hopefully meet our needs up
to next January. Requirement of man made fibers is also covered for this period.
Aforementioned arrangements are conducive for better results. However, rising trend in mark up rates and phenomenal rise
in price of greige cloth for the past few months are factors which may impact expected improved financial results.
BOARD OF DIRECTORS
On completion of the term of Board of Directors, election for constitution of new Board for a term of three years was held on
April 20, 2005. Following Directors were elected whose term of three years commenced on April 23, 2005:
1. Mr. Tariq Sayeed Saigol Chairman/Director

2. Mr. Sayeed Tariq Saigol Director
3. Mr. Aamir Fayyaz Sheikh Director
4. Mr. Usman Said Director
5. Mr. Zamiruddin Azar Director
6. Mr. Waleed Tariq Saigol Director
7. Mr. Abdul Hai Mahmood Bhaimia Director
COMPLIANCE OF CODE OF CORPORATE GOVERNANCE

The Board of Directors periodically reviews the Company's strategic direction. Business plans and targets are set by the Chief
Executive and reviewed by the Board. The Board is committed to maintain a high standard of corporate governance. The
Board has reviewed the Code of Corporate Governance and confirms that:
a) The financial statements, prepared by the management of the Company, present fairly its state of affairs, the
result of its operations, cash flows and change in equity.
b) Proper books of account of the company have been maintained.
c) Appropriate accounting policies have been consistently applied in preparation of financial statements and
accounting estimates are based on reasonable and prudent judgment.
d) International Accounting Standards, as applicable in Pakistan, have been followed in preparation of financial
statements and any departure there from, has been adequately disclosed.
e) The system of internal control is sound in design and has been effectively implemented and monitored.
f) There are no significant doubts upon the company's ability to continue as a going concern.
g) There has been no material departure from the best practices of corporate governance, as detailed in the listing
regulations of the stock exchanges.
h) Outstanding taxes and other government levies are given in related note(s) to the audited accounts.
i) Key operating and financial data of last six years is annexed.

j) Value of investment of provident fund trust, based on un-audited accounts at June
30, 2005 is as under:
(Rupees in thousand)
Provident fund 88,876
k) During the nine months under review, five meetings of the Board of Directors were held and the attendance of
the Directors was as under:
Names of Directors Meetings attended
Mr. Tariq Sayeed Saigol 3

Mr. Aamir Fayyaz Sheikh 5
Mr. Asad Fayyaz Sheikh 1
Mr. Sayeed Tariq Saigol 2
Mr. Waleed Tariq Saigol 2
Mr. Usman Said 5
Mr. Firasat Ali (Nominee of NIT) 1
Mr. Zamiruddin Azar 2
Mr. Abdul Hai Mehmood Bhaimia 2
(However, leave of absence was granted to the Directors who could not attend the Board meetings due to pre-occupation.)
Shares traded by Directors, CEO, CFO, Company Secretary and their spouse and minor children are given as under:
No. of Shares
Purchase Sale
Mr. Usman Said, Director / CFO Nil 501
PATTERN OF SHAREHOLDING
The statement of shareholding of the Company as at June 30, 2005 is annexed. This statement is in accordance with the
Code of Corporate Governance and Companies Ordinance,1984.
AUDIT COMMITTEE
The Board of Directors in compliance with the Code of Corporate Governance has established an Audit Committee and the
following non executive and executive directors are its members:
Mr. Zamiruddin Azar Chairman
Mr. Aamir Fayyaz Sheikh Member
Mr. Waleed Tariq Saigol Member
Mr. Muhammad Ashraf Secretary
AUDITORS
The auditors of the Company M/s Riaz Ahmad and Company, Chartered Accountants, have retired. The Audit Committee has
recommended appointment of M/s Riaz Ahmad and Company, Chartered Accountants, as auditors of the Company for the
accounting year ending June 30, 2006.
ACKNOWLEDGEMENT
The Directors are grateful for cooperation, support and patronage by Company's members, financial institutions and
customers. It enabled the Company to carry out its plans for better performance. The Directors appreciate the loyalty, hard
work and dedicated services of all the employees working at its various divisions and expect them to keep up the same spirit
of devotion and dedication.
BY ORDER OF THE BOARD,
Lahore : September 23, 2005 Chief Executive

STATEMENT OF COMPLIANCE WITH THE
CODE OF CORPORATE GOVERNANCE
This statement is being presented to comply with the Code of Corporate Governance contained in Listing
Regulations of Stock Exchanges in Pakistan for the purpose of establishing a framework of good governance,
whereby a listed company is managed in compliance with the best practices of corporate governance.
The Company has applied the principles contained in the Code in the following manner:-
1. The Company encourages the representation of non-executive directors on its Board of Directors. At
present the Board of Directors includes five independent non-executive directors.
2. The directors have confirmed that none of them is serving as a director in more than ten listed companies,
including this Company.
3. All the resident directors of the Company are registered as taxpayers and none of them has defaulted in
payment of any loan to a banking company, a DFI or a NBFI or, being a member of a stock exchange, has
been declared as a defaulter by that stock exchange.
4. On completion of the term of Board of Directors election for constitution of new Board for the term of three
years was held on April 20, 2005 and no casual vacancy occurred in the Board during the year.
5. The Company has prepared a ‘Statement of Ethics and Business Practices’, which has been signed by all
the directors and employees of the Company.
6. The Board has developed a vision/mission statement, overall corporate strategy and significant policies of
the Company. A complete record of particulars of significant policies along with the dates on which they
were approved or amended has been maintained.
7. All the powers of the Board have been duly exercised and decisions on material transactions, including
appointment and determination of remuneration and terms and conditions of employment of the CEO and
other executive directors, have been taken by the Board.
8. The meetings of the Board were presided over by the Chairman and, in his absence, by a director elected
by the Board for this purpose and the Board met at least once in every quarter. Written notices of the Board
meetings, along with agenda and working papers, were circulated at least seven days before the meetings.
The minutes of the meetings were appropriately recorded and circulated.
9. The Board arranged Orientation Course for its Directors during the year to apprise them of their duties and
responsibilities.
10. The Board has approved appointment of CFO, Company Secretary and Head of Internal Audit, including
their remuneration and terms and conditions of employment, as determined by the CEO.
11. The directors’ report for this year has been prepared in compliance with the requirements of the Code and
fully describes the salient matters required to be disclosed.
12. The financial statements of the Company were duly endorsed by CEO and CFO before approval of the
Board.
13. The directors, CEO and executives do not hold any interest in the shares of the Company other than that
disclosed in the pattern of shareholding.
14. The Company has complied with all the corporate and financial reporting requirements of the Code.
15. The Board has formed an audit committee. It comprises three members, of whom two are non-executive
directors, including the chairman of the committee.
16. The meetings of the audit committee were held at least once every quarter prior to approval of interim and
final results of the Company and as required by the Code. The terms of reference of the committee have
been formed and advised to the committee for compliance.
17. The Board has set-up an effective internal audit function.
18. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under
the Quality Control Review programme of the Institute of Chartered Accountants of Pakistan, that they or
any of the partners of the firm, their spouses and minor children do not hold shares of the Company and that
the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelines
on code of ethics as adopted by Institute of Chartered Accountants of Pakistan.
19. The statutory auditors or the persons associated with them have not been appointed to provide other
services except in accordance with the listing regulations and the auditors have confirmed that they have
observed IFAC guidelines in this regard.
20. We confirm that all other material principles contained in the Code have been complied with.
For and on behalf of the Board
Lahore.
September 23, 2005 Chief Executive
REVIEW REPORT TO THE MEMBERS ON STATEMENT OF COMPLIANCE WITH BEST
PRACTICES OF CODE OF CORPORATE GOVERNANCE
We have reviewed the Statement of Compliance with best practices contained in the Code of Corporate
Governance prepared by the Board of Directors of Kohinoor Textile Mills Limited, for the period ended 30 June
2005, to comply with the respective listing regulations of the three stock exchanges where the company is listed.
The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the
Company. Our responsibility is to review, to the extent where such compliance can be objectively verified, whether
the Statement of Compliance reflects the status of the Company's compliance with the provisions of the Code of
Corporate Governance and report if it does not. A review is limited primarily to inquiries of the Company personnel
and review of various documents prepared by the Company to comply with the Code.
As part of our audit of financial statements we are required to obtain an understanding of the accounting and
internal control system sufficient to plan the audit and develop an effective audit approach. We have not carried
out any special review of the internal control system to enable us to express an opinion as to whether the Board's
statement on internal control covers all controls and the effectiveness of such internal controls.
Based on our review, nothing has come to our attention which causes us to believe that the Statement of
Compliance does not appropriately reflect the Company's compliance, in all material respects, with the best
practices contained in the Code of Corporate Governance, effective as at 30 June 2005.
Islamabad: RIAZ AHMAD & COMPANY

23 September 2005 Chartered Accountants
AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed balance sheet of "KOHINOOR TEXTILE MILLS LIMITED" as at 30 June 2005 and the related
profit and loss account, cash flow statement, and statement of changes in equity together with the notes forming part thereof,
for the year then ended and we state that we have obtained all the information and explanations which, to the best of our
knowledge and belief, were necessary for the purposes of our audit.
It is the responsibility of the company's management to establish and maintain a system of internal control, and prepare and
present the above said statements in conformity with the approved accounting standards and the requirements of the
Companies Ordinance 1984. Our responsibility is to express an opinion on these statements based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that we
plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the above
said statements. An audit also includes assessing the accounting policies and significant estimates made by management, as
well as, evaluating the overall presentation of the above said statements. We believe that our audit provides a reasonable
basis for our opinion and, after due verification, we report that:
a) in our opinion, proper books of account have been kept by the company as required by the Companies Ordinance,
1984;
b) in our opinion:
i) the balance sheet and profit and loss account, together with the notes thereon, have been drawn up in
conformity with the Companies Ordinance, 1984 and are in agreement with the books of account and are further
in accordance with accounting policies consistently applied except for the changes as stated in notes 4.2, 4.10
and 4.17 with which we concur;
ii) the expenditure incurred during the period was for the purpose of the company's business; and
iii) the business conducted, investments made and the expenditure incurred during the period were in accordance
with the objects of the company;
c) in our opinion and to the best of our information and according to the explanations given to us, the balance sheet and
profit and loss account, cash flow statement and statement of changes in equity together with the notes forming part
thereof conform with approved accounting standards as applicable in Pakistan, and, give the information required by
the Companies Ordinance, 1984, in the manner so required and respectively give a true and fair view of the state of
the company's affairs as at 30 June 2005 and of the profit, its cash flows and changes in equity for the period then
ended; and
d) in our opinion, no Zakat was deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980).
The financial statements of the company for the year ended 30 September 2004 were audited by another firm of chartered
accountants whose report dated 02 December 2004 expressed an unqualified opinion thereon.
ISLAMABAD: RIAZ AHMAD & CO.

23 September 2005 Chartered Accountants
BALANCE SHEET AS AT
Note 30 Jun 2005 30 Sep 2004

EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized share capital

120,735,325 (30 September 2004: 150,735,325)
ordinary shares of Rs. 10 each 1,207,353 1,507,353
30,000,000 (30 September 2004: NIL)
preference shares of Rs. 10 each 300,000 –
1,507,353 1,507,353
Issued, subscribed and paid up share capital 5 962,158 801,798

Reserves 6 2,836,794 3,915,337
Shareholders’ equity 3,798,952 4,717,135
NON-CURRENT LIABILITIES
Long term financing 7 1,602,873 683,262
Term finance certificates 8 142,500 195,937
Liabilities against assets subject to finance lease 9 134,308 181,188
Deferred tax liability 10 30,479 –
1,910,160 1,060,387
CURRENT LIABILITIES
Trade and other payables 11 528,018 448,488
Accrued mark-up 42,986 29,750
Short term borrowings 12 2,115,155 1,973,540
Current portion of non-current liabilities 13 420,385 328,915
3,106,544 2,780,693
CONTINGENCIES AND COMMITMENTS 14 –– ––
8,815,656 8,558,215
The annexed notes form an integral part of these financial statements.
Lahore:
23 September 2005 Chief Executive
30 JUNE 2005
Note 30 Jun 2005 30 Sep 2004

ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 15 2,666,186 2,077,025

Long term investment 16 2,958,598 3,275,267
Long term deposits 17 20,767 32,195
Deferred tax assets – 4,153
5,645,551 5,388,640
CURRENT ASSETS
Stores and spares 18 463,701 404,826
Stocks-in-trade 19 1,112,685 859,256
Trade debts 20 640,382 510,287
Advances 21 122,016 413,769
Security deposits and short term prepayments 22 27,143 14,419
Accrued interest 792 12,448
Other receivables 23 286,906 413,239
Short term investments 24 355,231 391,339
Taxation recoverable 12,909 4,797
Cash and bank balances 25 148,340 145,195
3,170,105 3,169,575
8,815,656 8,558,215
Director
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 30 JUNE 2005
Note 30 Jun 2005 30 Sep 2004

Sales 26 4,584,952 5,380,298
Cost of sales 27 4,025,831 4,664,725
Gross Profit 559,121 715,573
Selling and distribution expenses 28 185,376 202,361

Administrative expenses 29 78,703 94,994
Other operating expenses 30 13,710 15,029
277,789 312,384
Profit from operations 281,332 403,189
Other operating income 31 39,472 193,850
320,804 597,039
Finance cost 32 173,206 152,246
Profit before taxation 147,598 444,793
Provision for taxation 33 59,071 81,626

Profit after taxation 88,527 363,167
Earning per share - Rupees 38 0.93 4.12
Chief Executive Director

CASH FLOW STATEMENT
Note 30 Jun 2005 30 Sep 2004
CASH FLOWS FROM OPERATING ACTIVITIES :
Cash generated from operations 34 381,328 509,314
Finance cost paid (159,970) (160,868)
WPPF paid (12,503) (12,859)
Taxes paid (32,551) (42,387)
Net cash from operating activities 176,304 293,200
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (705,984) (296,095)

Long term deposits 2,047 21,714
Purchase of right shares (814,293) –
Return on bank deposits 12,806 443
Proceeds from sale of property, plant and equipment 37,855 68,170
Dividend received 146,863 15,955
Net cash used in investing activities (1,320,706) (189,813)
CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from:
Long term financing – secured 1,212,589 348,982
Short term borrowing 141,615 –
Right issue of ordinary shares 160,360 –
Repayment of:
Long term financing – secured (210,500) (133,401)
Short term borrowing – (66,104)
Finance leases (102,832) (142,418)
Term finance certificates (53,437) (17,813)
Dividend paid (248) (79,846)
Net cash from/used in financing activities 1,147,547 (90,600)
Net increase in cash and cash equivalents 3,145 12,787
Cash and cash equivalents at the beginning of the period/year 145,195 132,408
Cash and cash equivalents at the end of the period/year 25 148,340 145,195

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2005
Reserves
Capital Reserves Revenue Reserves
Share Fair Reserve Sub Total Dividend Un- Total Total
Capital Capital Share Value for General Equalization appro- Sub Reserves Equity
Reserve premium Reserve Bonus Reserve Reserve priated Total
Shares Profit
-------------------------------------------------- (R u p e e s I n t h o u s a n d) --------------------------------------------------
Balance as at 30 September 2003
As previously reported 801,798 18,901 151,855 – – 170,756 749,783 9,509 26,003 785,295 956,051 1,757,849
Effect of change in accounting policy
(Note 4.2 and 4.10) – – – 1,090,177 – 1,090,177 – – 80,180 80,180 1,170,357 1,170,357
Balance as at 30 September 2003-As restated 801,798 18,901 151,855 1,090,177 – 1,260,933 749,783 9,509 106,183 865,475 2,126,408 2,928,206
Final dividend for the year ended
30 September 2003 – – – – – – – – (80,180) (80,180) (80,180) (80,180)
Effect of change in accounting policy (Note 4.10) – – – 1,505,942 – 1,505,942 – – – – 1,505,942 1,505,942
Net profit for the year ended 30 September 2004 – – – – – – – – 363,167 363,167 363,167 363,167
Reserve for bonus shares – – (80,180) – 80,180 – – – – – – –
Transfer to general reserves – – – – – – 340,708 – (340,708) – – –
Balance as at 30 September 2004-As restated 801,798 18,901 71,675 2,596,119 80,180 2,766,875 1,090,491 9,509 48,462 1,148,462 3,915,337 4,717,135
Deficit on revaluation of investment of fair value – – – (1,167,070) – (1,167,070) – – – – (1,167,070) (1,167,070)
Bonus shares issued 80,180 – – – (80,180) (80,180) – – – – (80,180) –
Right shares issued at premium 80,180 – 80,180 – – 80,180 – – – – 80,180 160,360
Net profit for the period ended 30 June 2005 – – – – – – – – 88,527 88,527 88,527 88,527
Reserve for bonus shares @ 10% – – (96,216) – 96,216 – – – – – – –
Transfer to general reserves – – – – – – 100,000 – (100,000) – – –
Balance as at 30 June 2005 962,158 18,901 55,639 1,429,049 96,216 1,599,805 1,190,491 9,509 36,989 1,236,989 2,836,794 3,798,952
The annexed notes form an integral part of these accounts.

NOTES TO THE ACCOUNTS
1. THE COMPANY AND ITS OPERATIONS

Kohinoor Textile Mills Limited is a public limited company incorporated in Pakistan under the Companies Act, 1913
(now Companies Ordinance, 1984) and listed on the Karachi, Lahore and Islamabad Stock Exchanges. The registered
office of the company is situated at 42 Lawrence Road, Lahore. The principal activity of the company is manufacturing
of yarn and cloth, processing and stitching the cloth and trade of textile products.
2. STATEMENT OF COMPLIANCE
These financial statements have been prepared in accordance with approved accounting standards as applicable in
Pakistan and the requirements of Companies Ordinance, 1984. Approved accounting standards comprise of such
International Accounting Standards as modified under the provisions of the Companies Ordinance, 1984. Wherever,
the requirements of the Companies Ordinance, 1984 or directives issued by the Securities and Exchange Commission
of Pakistan differ with the requirements of these standards, the requirements of Companies Ordinance, 1984 or the
requirements of the said directives take precedence.
3. CHANGE IN THE FINANCIAL YEAR
During the current year, the company has changed its financial year from September to June in pursuance of SRO No.
684(I)/2004, dated August 10, 2004 of Central Board of Revenue (CBR). As a result of which, these financial
statements have been prepared for the nine months period ended on June 30, 2005 and the comparative amounts for
profit and loss account, statement of changes in equity, cash flow statement and related notes of 12 months are not
comparable.
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
4.1 Basis of Preparation
These financial statements have been prepared under the historical cost convention, except modified by long
term and short term investments at fair value.
4.2 Dividend
In the previous years, proposed or declared dividend after the balance sheet date was recognized as a liability.
After the amendments in the Fourth Schedule to the companies Ordinance, 1984, promulgated by Notification
No. 589(I)/2004, dated July 05, 2004, dividend will be recognized as a liability in the year in which it is declared
and approved to meet the requirement of International Accounting Standard (IAS) 10 “Events After the Balance
Sheet Date”.
The effect of change in accounting policy has been reflected in the statement of changes in equity in accordance
with the recommended benchmark treatment of IAS – 8, Net Profit or Loss for the Period, Fundamental Errors
and changes in Accounting Policies. The change in accounting policy has not resulted in any change in the profit
for the current period.
4.3 Employee benefits
The Company operates an approved defined contribution provident fund for all its employees. Equal monthly
contributions are made both by the company and employees at the rate of 8.33 percent of basic salary and cost
of living allowance to the fund.
4.4 Taxation
Current
The Company falls in the ambit of presumptive tax regime regarding export sales under section 154 of the
Income Tax Ordinance, 2001. Provision for income tax is made in the financial statements accordingly.
However, provision for tax on other income is based on taxable income at the prevailing current rates after
considering the rebates and tax credit available, if any.
Deferred
Deferred tax is accounted for using the balance sheet liability method in respect of all temporary timing
differences arising from difference between the carrying amount of the assets and liabilities in the financial
statements and corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are
recognized for all taxable temporary differences and deferred tax assets are recognized for all deductible
temporary differences to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, unused tax losses and tax credits can be utilized.
Deferred tax is calculated at the rates that are expected to apply to the period when the differences reverse,
based on tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is
charged or credited in the income statement, except where deferred tax arises on the items credited or charged
to equity in which case it is included in equity.
4.5 Trade and other payables
Liabilities for trade and other amounts payables are carried at cost which is the fair value of the consideration to
be paid in the future for goods and services.
4.6 Provisions
Provisions are recognized when the Company has a legal or constructive obligation as a result of past event, if it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligation
and a reliable estimate of the amount can be made.
4.7 Finance leases
Leases where the company has substantially all the risks and rewards of ownership are classified as finance
leases. Assets subject to finance lease are stated at the lower of present value of minimum lease payments
under the lease agreements and the fair value of the assets. The related rental obligations, net off finance
charges, are included in liabilities against assets subject to finance lease.
Each lease payment is allocated between the liability and finance charge so as to achieve a constant rate on the
balance outstanding. Finance charge of the rental is charged to profit over the lease term.
4.8 Property, plant, equipment and depreciation
a. Owned
Property, plant and equipment except freehold land and capital work in progress are stated at cost less
accumulated depreciation and impairment losses, if any. Freehold land and capital work in progress are stated
at cost. Cost in relation to certain property, plant and equipment signifies acquisition cost and borrowing costs as
referred to in note 4.16.
Depreciation of all operating property, plant and equipment is charged to income on reducing balance method
so as to write off the cost of an asset over its estimated useful life at the rates given in Note 15.1. Full year’s
depreciation is charged on addition, while no depreciation is charged on assets disposed during the year.
Impairment loss or its reversal, if any, is also charged to income.
Major repairs and renewals are capitalized. Minor repairs and maintenance are charged to income as and when
incurred. Gain or loss on disposal or retirement of an asset is recognized as an income or expense.
b. Leased
These are stated at lower of present value of minimum lease payments under the lease agreements and
the fair value of the assets acquired on lease. Depreciation is charged on the basis and rates similar to
those applied for owned assets.
4.9 Intangible assets
An intangible asset is recognized if it is probable that future economic benefits that are attributable to the asset
will flow to the company and that the cost of such asset can also be measured reliably. Intangible asset is stated
at cost less accumulated amortization and any impairment loss. Intangible assets are amortized over the useful
life of the asset.
4.10 Investments
Equity investment in subsidiary and associated companies
The company has changed its accounting policy with respect to investments in subsidiary and associated
companies. Previously these were stated at cost. Now investments in subsidiary and associates are classified
as “Available for Sale” under International Accounting Standard (IAS) – 39 “Financial Instruments: Recognition
and Measurement”. Investments classified as available for sale are initially measure at cost, being the fair value
of consideration given. At subsequent reporting dates, these investments are remeasured at fair value (quoted
market price), unless fair value cannot be reliably measured. The investment for which a quoted market price is
not available, is measured at cost as it is not possible to apply any other valuation methodology. Gain and
losses on remeasurement to fair value are recognized directly in equity, through the statement of changes in
equity.
Such a change in policy has been accounted for retrospectively and comparative financial statements have
been restated in accordance with the benchmark treatment of IAS–8 “Net Profit or Loss for the Period,
Fundamental Errors and Changes in Accounting Policy”.
Had there been no change, the long term investment, short term investments and fair value reserve for the nine
months period ended 30 June 2005 would have been lower by Rupees 1,176.15 million, Rs. 252.899 and Rs.
1,429.049 million respectively.
Other investments
The other investments made by the company are classified for the purpose of measurement into the following
categories:
Held to maturity
Investments with fixed maturity that the management has the intent and ability to hold to maturity are classified
as held to maturity and are initially measured at cost and at subsequent reporting dates measured at amortized
cost using the effective yield method.
Available for Sale
Investments classified as available for sale are initially measured at cost, being the fair value of consideration
given. At subsequent reporting dates, these investments are remeasured at fair value (quoted market price),
unless fair value cannot be reliably measured. The investment for which a quoted market price is not available,
are measured at cost as it is not possible to apply any other valuation methodology. Gain and losses on
remeasurement to fair value are recognized directly in equity, through the statement of changes in equity.
All purchases and sales of investments are recognized on the trade date which is the date that the company
commits to purchase or sell the investment. Cost of purchase includes transaction cost.
4.11 Stores and Spares
Stores, spares and loose tools are valued at moving average cost. Items in transit are valued at costs
comprising invoice value plus other charges paid thereon upto the balance sheet date.
4.12 Stock in Trade
Stock of raw material, work-in-process and finished goods are valued at the lower of cost and net realizable
value except process wastes, which are valued at net realizable value. Material in transit are valued at cost
comprising invoice value plus other charges paid thereon. Cost and net realizable value are defined as under:
Cost
I) For raw material – weighted average cost.
II) For work-in-process and finished goods – annual average cost consisting of cost of material, labour and
appropriate production overhead.
4.13 Net realizable value
Net realizable value signifies the estimated selling price in the ordinary course of business less costs necessarily
to be incurred in order to make sale.
4.14 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at cost. For the purposes of the cash flow
statement, cash equivalents comprise cash in hand, cash at banks and other short term highly liquid instruments
that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in
values.
4.15 Revenue Recognition
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 bill of lading.
b) Dividend on equity investments is recognized as income when the company’s right to receive payment is
established.
c) Interest on bank deposits is recognized on accrual basis.

4.16 Borrowings costs
Borrowing cost are capitalized upto the date of commissioning of respective fixed asset out of the proceeds of
such borrowings. All other mark up, interest and other charges are charged to income
4.17 Foreign currencies
Transactions in foreign currency during the year are translated into Pak Rupees at the rates of exchange
prevailing on the date of transaction. All monetary assets and liabilities in foreign currencies are translated into
Pak Rupees at the rate of exchange prevailing on the balance sheet date except where forward exchange
contracts have been made, in which case the contracted rates are applied. Exchange gains and losses are
taken to the profit and loss accounts.
During the current period, the company has changed its accounting policy with respect to capitalization of
exchange differences in pursuance of revised Fourth Schedule to the Companies Ordinance, 1984. Previously
exchange differences on loans utilized for the acquisition of fixed assets were charged to income. The company
now charges all exchange differences to profit and loss account.
The change in accounting policy as referred to above has no effect on the amounts reported for the current year.
4.18 Financial assets and liabilities
Other financial assets and liabilities are recognized at the time the company becomes a party to the contractual
provisions of the instruments and are measured at cost, which is fair value of the consideration given and
received respectively. These financial assets and liabilities are subsequently measured at fair value, amortized
cost or cost, as the case may be. Financial assets are derecognized 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
derecognized when the obligation specified in the contract is discharged, cancelled or expired. Any gain or loss
on subsequent measurement and derecognition is charged to the profit and loss account currently.
4.19 Off setting
A financial asset and a financial liability is offset and the net amount is reported in the balance sheet if the
company has a legally enforceable right to set-off the recognized amounts and intends either to settle on net
basis or to realize the asset and settle the liability simultaneously.
4.20 Impairment
The carrying amounts of the company’s assets are reviewed at each balance sheet date to determine whether
there is any indication of impairment loss. If any such indication exists, the recoverable amount of such assets is
estimated and impairment losses are recognized in the profit and loss account. Where an impairment loss
subsequently reverses, the carrying amount of the asset is increased to the revised recoverable amount but
limited to the extent of the initial cost of the asset. A reversal of the impairment loss is recognized in profit and
loss account.
4.21 Related party transaction
Transactions and contracts with the related parties are carried out at arm’s length prices determined in
accordance with comparable uncontrolled price method except in circumstances where it is in the interest of the
company to do so with prior approval of the board of directors.
Note 30 Jun 2005 30 Sep 2004
5. ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL
1,596,672 ordinary shares of Rs. 10 each allotted on reorganization of

Kohinoor Industries Limited 15,967 15,967
26,156,000 ordinary shares allotted under scheme of arrangement of
merger of Part II of Maple Leaf Electric Company Limited 261,560 261,560
26,858,897 ordinary shares allotted under scheme of arrangement of
merger of Kohinoor Raiwind Mills Limited and Kohinoor Gujar Khan
Mills Limited 268,589 268,589
18,468,336 (2004: 10,450,363) ordinary shares of Rs. 10 each issued as
bonus shares 184,684 104,504
23,135,776 (2004: 15,117,803) ordinary shares of Rs. 10 each issued of
cash 231,358 151,178
962,158 801,798
5.1 Reconciliation of the number of shares outstanding;
Number of shares outstanding at the beginning of the period/year 80,179,735 80,179,135

Add: 10% Bonus issue of shares during the period/year 8,017,973 –
10% Right issue of shares during the period/year 8,017,973 –
16,035,946 –
96,215,681 80,179,735
5.2 Zimpex (Private) Limited, which is an associated company, held 18,360,338 (2004: 18,025,282) ordinary shares of
Rupees 10 each at 30 June 2005.
6. RESERVES
Capital Reserves 18,901 18,901
Share premium 6.1 55,639 71,675
Fair value reserve 6.2 1,429,049 2,596,119
Reserve for issue of bonus shares 96,216 80,180
1,599,805 2,766,875
Revenue reserves
General reserve 1,190,491 1,090,491
Dividend equalization reserves 9,509 9,509
Unappropriated profit 36,989 48,462
1,236,989 1,148,462
2,836,794 3,915,337
6.1 This reserve can be utilized by the company only for the purposes specified in section 83(2) of the Companies
Ordinance, 1984.
6.2 This represents the surplus on revaluation of long term and short term investments to their fair values.
Note 30 Jun 2005 30 Sep 2004
Rupees in thousand
7. LONG TERM FINANCING
From banking companies and other financial institutions - Secured

National Bank of Pakistan (NBP) 7.1 49,212 31,700
MCB Bank Limited – formerly Muslim Commercial Bank limited (MCB-1) 7.2 23,734 33,905
MCB Bank Limited – formerly Muslim Commercial Bank limited (MCB-2) 7.3 125,000 162,500
The Bank of Punjab (BOP) 7.4 292,177 107,920
Union Bank Limited (UNB) 7.5 109,600 109,262
Pakistan Industrial Credit and Investment Corporation Limited (PICIC) 7.6 69,204 82,937
United Bank Limited (UBL) 7.7 162,500 200,000
Allied Bank Limited (ABL-1) 7.8 83,886 –
Allied Bank Limited (ABL-2) 7.9 500,000 –
Askari Commercial Bank Limited 7.10 350,000 –
PICIC Commercial Bank Limited (PCBL) – 100,000
Saudi Pak Industrial and Agricultural Investment Co. (Pvt) Limited
(SPIAICPL) 7.11 65,000 –
1,830,313 828,224
Less: Current portion 13 234,917 152,439
1,595,396 675,785
Other loans - Unsecured
Kohinoor Sugar Mills Limited (KSML) 7.12 4,794 4,794
Kohinoor Industries Limited (KIL) 7.13 2,683 2,683
7,477 7,477
1,602,873 683,262
7.1 National Bank of Pakistan (NBP

This represents demand finance facility of Rs. 60 million, obtained for import of textile machinery for balancing,
modernization and is allowed for a period of four and a half year including a grace period of six months. The tentative
expiry period of the facility is March 2008. The facility is repayable in sixteen( (16) quarterly installments. It is secured
by first exclusive charge on machinery amounting to Rs. 80 million and personal guarantees of sponsor directors. It
carries mark up at the rate of 6-months KIBOR plus 1.50% with a floor of 4% per annum.
7.2 MCB Bank Limited – formerly Muslim Commercial Bank Limited (MCB-1)
This represents demand finance loan of Rs. 40.793 million, obtained for import of textile machinery for BMR and is
repayable in twelve (12) equal quarterly installment commencing form April 12, 2004. it is secured by first registered
exclusive charge for Rs. 55 million over imported machinery and personal guarantees of sponsor directors. It carries
mark up at the rate of 6-months KIBOR plus 1.75% with a floor of 5% per annum.
7.3 MCB Bank Limited – formerly Muslim Commercial Bank Limited (MCB-2
This represents demand finance loan of R. 200 million, obtained for import of Picanol Airjet Looms and is repayable in
sixteen (16) equal quarterly installments commencing from March 31, 2004. It is secured by first registered pari passu
charge on fixed assets of the company (Raiwind Division) and personal guarantees of sponsor directors of the
company. It carries mark up at the rate of 5% per annum.
7.4 The Bank of Punjab (BOP)
This represents demand finance facility of Rs. 300 million, obtained for import of state of art machinery and is allowed
for a period of four years with a grace period of six months. The loan is repayable in equal half yearly installments
commencing after conclusion of grace period. It is secured by bank’s exclusive hypothecation charge on machinery
imported and personal guarantees of sponsor directors. It carries mark up at the rate of 6-months KIBOR plus 100
basis points (bps) with a floor of 4.25% per annum, payable quarterly .
7.5 Union Bank Limited (UNB)
This represents the term finance facility of Rs. 110 million, obtained for import of state of art machinery and allowed for
a period of five years including a grace period of one year. The facility is payable in sixteen (16) equal quarterly
installments. It is secured by first exclusive charge on machinery and personal guarantees of sponsor director. It
carries mark up at the rate of 6-month KIBOR plus 2.25% per annum with no floor and cap.
7.6 Pakistan Industrial Credit and Investment Corporation Limited (PICIC)
This represents a loan of rupees 100 million obtained from PICIC against import of Air Jet Looms for Raiwind Division.
It is repayable in twenty (20) equal quarterly installments, commencing from October 03, 2003. It is secured by first
legal mortgage ranking pari passu with the existing first charge already created in favour of PICIC on the company’s
(Raiwind Division) present and future immovable properties wherever situated including all buildings, fixed plants,
machinery and fixtures and personal guarantees of the sponsor directors. It carries mark up at the rate from 7.50% to
9% (2004: 7.50%)per annum.
7.7 United Bank Limited (UBL)
This represents the term loan facility of Rs. 200 million, to finance BMR at Kohinoor Textile Mills Limited (Rawalpindi
and Gujar Khan Divisions) and to refinance loans of other banks. The term loan facility is allowed for a period of five
years with one year grace period and is repayable in sixteen (16) equal quarterly installments, commencing from
December 31, 2004. It carries mark up at rate of 6 months treasury bills cut-off rate plus 275 basis points with a floor of
4.5 % per annum. It is secured by first pari passu charge for Rs. 266 million of all existing and future fixed assets of
Kohinoor Textile Mills Limited (Raiwind Division) and personal guarantees of the sponsor directors.
7.8 Allied Bank Limited (ABL-1)
This represents term finance facility of Rs. 200 million, obtained for import of state of art machinery and is allowed for a
period of five years with a grace period of one year. The facility is repayable in sixteen (16) equal quarterly installments
commencing after conclusion of grace period. It is secured by first exclusive charge on machinery imported. It carries
mark up at the rate of 6-months KIBOR ask side plus 1.75% per annum with no floor and cap.
7.9 Allied Bank Limited (ABL-2)
This represents the demand finance facility of Rs. 500 million, obtained for BMR and is allowed for a period of five
years with a grace period of one year. The facility is repayable in sixteen (16) equal quarterly installments commencing
after expiry of moratorium period. It is secured by first specific pari passu charge over surplus piece of land measuring
43 acres, 7 kanals and 12 marlas at Rawalpindi. It carries mark up at the rate of 6-months KIBOR plus 2% per annum.
7.10 Askari Commercial Bank Limited (ACBL)
This represents the demand finance facility of Rs. 350 million, converted from short term finances and is allowed for a
period of three years with one year moratorium. The facility is repayable in eight (8) equal quarterly installments
commencing after expiry of moratorium period. It is secured by first specific pari passu charge over surplus piece of
land measuring 43 acres, 7 kanals and 12 marlas at Rawalpindi. It carries mark up at the rate of 6-months KIBOR plus
125 basis points per annum. Formal sanction letter and repayment schedule is awaited from the bank.
7.11 Saudi Pak Industrial and Agricultural Investment Co. (Pvt) Limited (SPIAICPL)
This represents the term finance facility of Rs. 65 million, obtained for import of textile machinery and is allowed for a
period of five years with a grace period of six months. The facility is repayable in eighteen (18) equal quarterly
installments commencing from February 19, 2005. it is secured by first exclusive charge on machinery imported. It
carries mark up at the rate of 6-months KIBOR average ask plus 1.75% per annum.
7.12 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.
7.13 Kohinoor Industries Limited (KIL)
The balance is an old one, un-reconciled, unconfirmed and disputed.
Note 30 Jun 2005 30 Sep 2004
8. Term Finance Certificates (TFCs) – Secured
Term Finance Certificates 213,750 267,187

Less : Current portion 13 71,250 71,250
142,500 195,937
The company has issued privately placed term finance certificates comprising 57 sets of Rs. 5 million each (each set
comprise 20 scrips of Rs. 0.250 million each) to raise Rs. 285 millions to refinance existing borrowings availed by the
company.
The term finance certificates are redeemable in twenty (20) quarterly installments commencing from August 01, 2003.
First four redemption installments comprise of token principal redemption of Re. 1 and profit on each TFC. The balance
principal redemption is payable in sixteen (16) equal quarterly installments alongwith profits. The rate of return on term
finance certificates is to be determined at seven days before commencement of each quarter for the tenor of the
relevant quarter and it will be 6-months KIBOR plus 2% per annum.
The Company may redeem the TFCs by way of exercise of the Call Option by giving written notice and/or public notice
to the TFCs holders and the trustee at least ninety (90) days prior to the option date(s). The first Option date fall on the
fourth redemption date and each subsequent redemption date shall also be an Option date. The date of maturity of the
TFCs is May 01, 2008.
These TFCS are secured by way of first pari passu charge on all present and future fixed assets of the company
amounting to 1.5 times of the outstanding coupon amount and personal guarantees of sponsor directors.
Faysal Bank Limited has been appointed as trustee under the trust deed and is paid a fee at the rate of 0.05% per
annum of the outstanding coupon amount at the beginning of the year.
9. LIABILITIES AGAINST ASSETS

SUBJECT TO FINANCE LEASES Note 30 Jun 2005 30 Sep 2004
Minimum lease payments 279,599 303,963
Less: Un-amortized finance charges 31,073 17,549
Present value of minimum lease payments 248,526 286,414
Less: Current portion 13 114,218 105,226
134,308 181,188
9.1 The present value of minimum lease payments has been discounted at an implicit interest rate ranges from 6.27% to
18.35% (2004: from 8.50% to 20%) per annum to arrive at their present value.
The lease rentals are payable in monthly and quarterly installments. In case of any default an additional charge at the
rate of 0.1 percent per day shall be payable. Taxes, repairs, replacements and insurance costs are to be borne by the
company. The lease agreements carry renewal and purchase option at the end of the lease term. There are no
financial restrictions in lease agreements. These are secured by deposit of Rupees 30.501 million (2004: 32.27 million)
included in long term security deposits, demand promissory notes, personal guarantees and pledge of sponsors’
shares in public limited companies.
9.2 Minimum lease payments and present value of minimum lease payments are regrouped as under:
30 June 2005 30 September 2004
Minimum lease Present value of Minimum lease Present value of
payments minimum lease payments minimum lease
payments payments
Due not later than one year 129,158 114,218 119,267 105,226
Due later than one year but not later
than five years 150,441 134,308 184,696 181,188
279,599 248,526 303,963 286,414
Note 30 Jun 2005 30 Sep 2004

10. DEFERRED TAXATION
The liability for deferred taxation comprises timing differences relating to:
Taxable temporary difference

Accelerated tax depreciation allowance 68,414 33,084
Deductible temporary differences

Tax losses carry forward (37,237) (37,237)
Provision for doubtful debts (698) –
(37,935) (37,237)
30,479 (4,153)
11. TRADE AND OTHER PAYABLES
Creditors 402,127 321,836

Accrued liabilities 95,314 84,910
Customers deposit-interest free repayable on demand 9,109 16,381
Workers’ profit participation fund 11.1 11,576 16,311
Unclaimed dividend 2,905 3,153
Due to associated undertakings 11.2 – 2,601
Withholding tax payable 4,236 2,628
Others 2,751 668
528,018 448,488
11.1 Workers’ profit participation fund
Balance at the beginning of the period/year 16,311 15,303

Allocation for the period/year 30 7,768 13,867
24,079 29,170
Interest on funds utilized in the Company’s business 262 269
24,341 29,439
12,765 13,128
11,576 16,311
Note 30 Jun 2005 30 Sep 2004
11.2 Due to associated undertakings:
Kohinoor Weaving Mills Limited – 2,250
Zimpex (Private) Limited – 351
– 2,601
12. SHORT TERM BORROWINGS – Secured

From banking companies:
Running finances 12.1 693,630 749,942
Export refinances 12.2 1,421,525 1,223,598
2,115,155 1,973,540
12.1 The facilities for running finances available from various banks aggregate to Rupees 2,208 million (2004: Rupees
2,708 million). The rate of mark-up range from 2.30% to 9.57% (2004: from 2.20% to 5.50%) per annum. These
arrangements are secured by pledge of stocks and marketable securities, hypothecation of work-in-process, letter of
credits, firm contracts, book debts, second and third registered charge of fixed assets of the company.
12.2 The export refinance facilities obtained from various banks aggregate to Rupees 2,260 million (2004: Rupees 2,430
million). The rates of mark-up range from 2.30% to 9.57% (2004: from 2.20% to 5.50%). These arrangements are
secured by pledge of stocks and marketable securities, hypothecation of work-in-process, letters of credit, firm
contracts, book debts, second and third registered charge of fixed assets of the company.
13. CURRENT PORTION OF NON-CURRENT LIABILITIES
Long term financing – secured 7 234,917 152,439

Term finance certificates 8 71,250 71,250
Liabilities against assets subject to finance leases 9 114,218 105,226
420,385 328,915
14. CONTINGENCIES AND COMMITMENTS
14.1 Contingencies
a) In framing the assessment for the assessment year 2002-03, the tax authorities has assessed loss for the
year at Rs. 16.486 million by charging to tax the dividend income separately against the declared income
of Rs. 5.101 million in addition to disallowing profit and loss expenses previous accepted by them. The
company has disputed the contention of the tax authorities for these demands and has filed appeal with
the Income Tax Appellate Tribunal against the order of the tax authorities. Pending the outcome of the
appeal no provision has been made in these financial statements for the additional demand for the
assessment year 2002-03. which on the basis adopted by the authorities would amount to Rs. 2.541
million, since the company has strong grounds against the assessment framed by the tax authorities.
b) The company and the tax authorities has filed appeals before different appellate authorities regarding
sales tax matters. Pending the outcome of appeals filed by the company and tax authorities, no provision
has been made in these financial statements which on the basis adopted by the authorities would amount
to Rs. 5.880 million, since the company has strong grounds against the assessments framed by the tax
authorities.
14.2 Commitments in respect of
a) Contract for capital expenditure amount to Rs. 147.232 million (2004: Rs. 218.740 million).
b) Letters of credit other than for capital expenditure amount to Rs. 134.809 million (2004: Rs. 102.363
million).
Note 30 Jun 2005 30 Sep 2004
15. PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets 15.1 2,556,487 2,074,453

Capital work in progress 15.2 109,699 2,572
2,666,186 2,077,025
15.1 OPERATING FIXED ASSETS

C o s t Accumulated Depreciation
Depreciation Book Value as
Description As at October Additions / As at June 30, As at October charge / As at June at June 30, Rate
01, 2004 (deletions) 2005 01, 2004 (deletion) for 30, 2004 2005 % age
the period
----------------------------------------- (R u p e e s i n t h o u s a n d) -----------------------------------------
Owned
Freehold land 120,862 – 120,862 – – – 120,862 –
Office Buildings 37,679 884 38,563 13,541 1,590 15,131 23,432 5
Factory Buildings 409,082 30,517 439,599 218,455 15,943 234,398 205,201 10
Other Buildings 8,996 571 9,567 1,915 287 2,202 7,365 5
Residential Buildings 57,706 3,761 61,467 22,785 1,677 24,462 37,005 5
School and Hospital 1,385 – 1,385 647 28 675 710 5
Plant and Machinery 2,358,338 621,095 2,768,108 1,115,219 134,769 1,105,962 1,662,146 10
(211,325) (144,026)
Service and Other 27,795 744 28,525 15,704 962 16,655 11,870 10
Equipment (14) (11)
Furniture & Fixture 44,572 4,472 49,028 21,016 2,102 23,105 25,923 10
(16) (13)
Office Equipment 52,291 3,128 55,411 21,031 2,579 23,602 31,809 10
(8) (8)
Vehicles 56,561 22,946 74,398 28,629 7,316 32,938 41,460 20
(5,109) (3,007)
3,175,267 688,118 3,646,913 1,458,942 167,253 1,479,130 2,167,783
(216,472) (147,065)
Leased
Plant and machinery 490,840 145,000 489,800 132,712 31,040 106,973 382,827 10
(146,040) (56,779)
Vehicle – 6,914 6,914 – 1,037 1,037 5,877 20
490,840 151,914 494,714 132,712 32,077 108,010 388,704
(146,040) (56,779)
2005 : 3,666,107 840,032 4,143,627 1,591,654 199,330 1,587,140 2,556,487
(362,512) (203,844)
2004 : 3,500,619 387,569 3,666,107 1,498,373 217,350 1,591,654 2,074,453
(222,081) (124,069)
15.1.1 Deletion in leased assets represents the transfer to owned plant and machinery.
15.1.2 Machinery having cost, accumulated depreciation and book value of Rs. 145.537 million, 96.083 million and
49.455 million respectively was grouped in current asset as held for disposal.
15.1.3 Depreciation charge for the period/year has been allocated as follows:
Note 30 Jun 2005 30 Sep 2004
Cost of sales 27 184,778 199,433
Administrative expenses 29 14,552 17,917
199,330 217,350
15.1.2 Detail of assets disposed off during the period
Description Qty. Cost Accumulated Written Sale Profit/ Mode of Sold to

Depreciation Down Value Proceeds (Loss) Sale
---------- (R u p e e s i n t h o u s a n d) -----------
Luwa Filter Compact Filter 1 No. 2,472 – 2,472 2,472 – Lease back Faysal Bank Limited, Lahore
Murata Machcone No. 7ii 1 Set 7,094 5,618 1,476 3,800 2,324 Negotiation Babri Cotton Mills Ltd. Habibabad Kohat
Drawing Frame Toyoda 1 Set 1,759 1,433 326 1,800 1,474 Negotiation Redco Textile Mills Ltd. Islambad
Cleaner, Parcopine, Axi-Flow Beater 1 Set 230 150 80 450 370 Negotiation Al-Barkat Enterprises, 8 KM Lahore
Road Sheikhupura
Bale Breaker 4 Nos. 318 233 85 784 699 Negotiation Meo Engineering Company Plot # 25-C
St. 3 Gulshan Colony, Quaidabad
Landhi, Karachi
Drawing Frames 1 No. 6,314 5,261 1,053 1,800 747 Negotiation Amna Textile Industries, Faisalabad
Comber Reiters 6 No. 1,315 857 458 423 (35) Negotiation Ikhlas Hussain, Faisalabad
Ring Frames – Russian 14 Set 10,755 8,541 2,214 2,100 (114) Negotiation Tariq Cottex, Tata Factory, Factory
area, Faisalabad.
Ring Frames – Russian 31 Set 22,995 18,261 4,734 4,390 (344) Negotiation Shahid Muneeb & Company, 113-
Gulistan Market, Faisalabad.
Ring Frames – Toyoda 13 Set 975 335 640 1,664 1,024 Negotiation Shahid Muneeb & Company, 113-
Gulistan Market, Faisalabad.
Savio Esparo 1 No. 2,420 1,134 1,286 4,168 2,882 Negotiation Kashir Textile Mills Limited, Faisalabad
Savio Esparo 1 No. 2,420 1,134 1,286 3,650 2,364 Negotiation Saif Textile Mills Limited, Kashmir
Complex, Blue area, Islamabad
Diaper Manufacturing Machine 1 Set 4,745 3,660 1,085 5,000 3,915 Negotiation Mr. Noor ud Din, 33 Main Gulberg,
Lahore
Calander Machine 1 No. 1,016 530 486 686 200 Negotiation Al-Noor Pro. & Textile Mills Pvt.
Sargodha Road, Faisalabad.
Suzuki Cultus LOX-6067 1 No. 520 349 171 350 179 Negotiation Mrs. Fozia Gulzar w/o Sohail Sadiq
P-369 Model Town Lahore
Honda Civic LRE-7300 1 No. 1,240 605 635 975 340 Negotiation Mr. Asif Maqbool Sukhra M-9 Ise Bldg,.
19 Khyaban-e-Awan-e-Iqbal, Lahore
Suzuki Baleno LXL-9158 1 No. 538 397 141 450 309 Negotiation Mr. Razwan mazhar S/O Mazar-ul-haq
C/O New Rawal Hotel Rawalpindi
Toyota Corolla LXL-3366 1 No. 737 544 193 585 392 Negotiation Mr. Manzoor, Jail Road, Lahore
Toyota Corolla LOY-3496 1 No. 791 685 106 525 419 Negotiation Malik Bashir, Gulberg FB Area,
Karimabad, Karachi.
Honda VTI LRU-250 1 No. 996 199 797 950 153 Negotiation Kohinoor Weaving Mills Limited
Other assets with book value less
than Rs. 50,000 – 1,285 1,056 229 833 604
70,935 50,982 19,953 37,855 17,902
30 Jun 2005 30 Sep 2004

15.2. CAPITAL WORK IN PROGRESS
Civil works and buildings 7,337 1,064
Plant and Machinery 102,362 1,508
109,699 2,572
16. LONG TERM INVESTMENT
Investment in related party/subsidiary – available for sale
Quoted
Maple Leaf Cement Factory Ltd.
135,715,498(2004: 90,476,999) ordinary shares of
Rs. 10 each fully paid equity held : 50.13 % (2004 : 50.13%)
Fair value of investment at the beginning of the period/year 3,275,267 1,795,968
Add: Subscribed for right shares
45,238,499 ordinary shares @ Rs. 18 per share 814,293 –
4,089,560 1,795,968
(Deficit) / Surplus on remeasurement at the period / year end (1,130,962) 1,479,299
Fair value of investment at the end of the period / year 2,958,598 3,275,267
Note 30 Jun 2005 30 Sep 2004
17. LONG TERM DEPOSITS
Security deposits 36,243 38,290
Less: current portion 22 15,476 6,095
20,767 32,195
18. STORES AND SPARES
Stores including in transit Rs. 116.285 million (2004: Rs. Nil) 350,708 217,728
Spares 63,538 187,098
Machinery held for disposal 49,455 –
463,701 404,826
19. STOCKS – IN – TRADE

Raw material including in transit Rs. Nil (2004: Rs. 0.647 million) 542,433 317,868
Work in process 68,038 84,697
Finished goods 502,214 456,691
1,112,685 859,256
20. TRADE DEBTS
Considered good:
Related parties 20.1 79,203 47,155
Others 561,179 463,132
640,382 510,287
Considered doubtful:
Others 1,995 –
642,377 510,287
Less: Provision for doubtful debts 1,995 –
640,382 510,287
20.1 Related parties:
Kohinoor Weaving Mills Limited 79,203 46,447
Samin Textile Mills Limited – 708
79,203 47,155
21. ADVANCES – considered good
Advances to :
– Executives 5,822 3,085
– Other Employees 893 3,142
– Suppliers 109,119 171,514
115,834 177,741
Letters of credit 6,182 236,028
122,016 413,769
22 SECURITY DEPOSITS AND SHORT TERM PREPAYMENTS
Current portion of security deposits 17 15,476 6,095
Prepayments 11,667 8,324
27,143 14,419
23. OTHER RECEIVABLES
Sales tax refundable 222,133 197,639
Custom duty receivable 3,642 3,642
Export rebate 48,153 33,578
Insurance claims 3,623 428
Due from associated undertakings 23.1 – 1,031
Dividend receivable – 135,715
Others 9,355 41,206
286,906 413,239
Note 30 Jun 2005 30 Sep 2004
23.1 Due from associated undertakings:
Hyundai Kohinoor Motors (Private) Limited – 600

Maple Leaf Cement Factory Limited – 431
– 1,031
24. SHORT TERM INVESTMENTS
Investment in related parties/associates – available for sale

Quoted
Kohinoor Weaving Mills Limited
11,125,608 (2004: 10,114,190) Ordinary shares of Rs. 10 each fully
paid. Equity held 33.65% (2004: 33.65%)
Fair value of investment at the beginning of the period / year 384,339 357,696
(Deficit) / Surplus on remeasurement at the period/year end (36,108) 26,643
Fair value of investment at the end of the period/year 348,231 384,339
Unquoted
Security General Insurance Company Limited
1,137,519 (2004: 1,034,108) Ordinary shares of Rs. 10 each fully paid
Equity held 9.40% (2004: 9.40%) 7,000 7,000
355,231 391,339
25. CASH AND BANK BALANCES

Cash in hand 766 3,419
Cash at bank :
- On current accounts including cheques under clearance of Rs. 14.347
million (2004: Rs. 15.031 million) 134,185 25,853
- On deposit accounts 13,389 115,923
147,574 141,776
148,340 145,195
The balances in deposit accounts carry interest ranging from 1.5% to 5.00 % (2004: from 3.30% to 6.00%) per annum.
The balances in current accounts include US $ 13,420 (2004: US $ Nil)
26. SALES
Export 2,702,755 3,363,069
Local – net of sales tax 26.1 1,992,525 2,174,686
4,695,280 5,537,755
Less : Commission to selling agents 110,328 157,457
4,584,952 5,380,298
26.1 Local sales are exclusive of sales tax amounting to Rupees 262.545 million (2004: 323.615 million).
Note 30 Jun 2005 30 Sep 2004
27 . COST OF GOODS SALE
Raw materials consumed 27.1 1,889,660 2,374,786
Salaries, wages, allowances and other benefits 223,935 257,268
Provident fund contributions 6,740 8,126
Dyes and chemicals consumed 167,366 184,187
Processing charges 72,300 72,457
Stores and spares consumed 94,088 128,229
Packing materials 80,231 76,563
Fuel and power 439,310 508,816
Repair and maintenance 40,882 49,762
Insurance 7,113 10,078
Other factory overheads 17,606 19,864
Depreciation 15.1 184,778 199,433
3,224,009 3,889,569
Work-in-process
Opening stock 84,697 85,946
Closing stock (68,038) (84,697)
16,659 1,249
Cost of goods manufactured 3,240,668 3,890,818
Finished goods
Closing stock (205,745) (259,715)
53,970 (31,676)
Cost of sales – own manufactured goods 3,294,638 3,859,142
Opening stock of purchased finished goods 196,976 173,720

Add: Finished goods purchased 830,686 828,839
1,027,662 1,002,559
Less: Closing stock of purchased finished goods 296,469 196,976
Cost of sales – purchased finished goods 731,193 805,583
4,025,831 4,664,725
27.1 Raw material consumed
Add: Purchase 2,114,872 2,280,438
2,432,093 2,692,007
Less: Closing stock 542,433 317,221
1,889,660 2,374,786
28. SELLING AND DISTRIBUTION EXPENSES
Salaries, wages and other benefits 11,564 13,270
Provident fund contributions 475 626
Outward freight and handling 2,040 2,587
Clearing and forwarding 141,908 154,592
Traveling and conveyance 7,853 9,367
Insurance 764 1,564
Vehicles’ running 2,682 2,541
Electricity, gas and water 236 259
Postage, telephone and telex 4,469 6,286
Legal and professional 231 153
Sales promotion and advertisement 7,065 5,469
Provision for doubtful debts 1,995 –
Miscellaneous expenses 4,094 5,647
185,376 202,361
Note 30 Jun 2005 30 Sep 2004
29. ADMINISTRATIVE EXPENSES
Salaries, wages and other benefits 25,491 29,029
Provident fund contributions 683 834
Traveling 6,379 6,441
Repairs and maintenance 4,599 7,043
Rent, rates and taxes 2,079 2,141
Insurance 791 1,210
Vehicles’ running 3,330 4,993
Printing, stationery and periodicals 2,461 2,906
Electricity, gas and water 1,041 1,255
Postage, telephone and telex 3,093 3,712
Legal and processional 2,212 3,172
Depreciation 14,552 17,917
Miscellaneous expenses 15.1 11,992 14,341
78,703 94,994
30. OTHER OPERATING EXPENSES
Auditors’ remuneration 30.1 485 462
Donations 30.2 5,457 700
Workers’ profit participation fund 11.1 7,768 13,867
13,710 15,029
30.1 Auditors’ remuneration
Audit fee 275 260
Certification including half yearly review 125 125
Out of pocket expenses 85 77
485 462
30.2 None of the directors and their spouses have any interest in the donees’ fund.
31. OTHER OPERATING INCOME
Income from financial assets:
Exchange gain – 48
Income on bank deposits 1,150 443
1,150 491
Income from related parties:
Dividend income from;
Maple Leaf Cement Factory Limited – 135,715
Kohinoor Weaving Mills Limited 11,148 12,455
Kohinoor Genertek Limited – 3,500
11,148 151,670
Income from non-financial assets:
Scrap sales 8,504 10,789
Gain on disposal of property, plant and equipment 17,902 30,251
Export quota sale – 91
Miscellaneous 768 558
27,174 41,689
39,472 193,850
32. FINANCE COST
Mark-up/finance charges/interest on:
Long term financing – Secured 56,608 51,285
Short term borrowings 85,667 64,618
Finance leases 15,846 25,851
Workers’ profit participation fund 262 269
158,383 142,023
Bank charges and commission 5,200 10,223
Exchange loss 9,623 –
173,206 152,246
Note 30 Jun 2005 30 Sep 2004
33. PROVISION FOR TAXATION
Current year
Current 30,128 50,352
Deferred 30,479 (4,153)
60,607 46,199
Prior year
Current (5,689) 15,011
Deferred 4,153 20,416
(1,536) 35,427
59,071 81,626
33.1 Tax charge reconciliation % %
Numerical reconciliation between the average effective tax rate and the
applicable tax rate:
Applicable tax rate as per Income Tax ordinance, 2001 35.00 35.00
Tax effect of amounts that are:
Chargeable to tax at different rates (2.25) (10.23)
Tax effect under presumptive tax regime and others (12.53) (13.45)
Effect of changes in prior years tax (1.03) 7.96
Deferred tax 20.83 (0.93)
5.02 (16.65)
Average effective tax rate charged to profit and loss account 40.02 18.35
34. CASH GENERATED FROM OPERATOINS
Profit before taxation 147,598 444,793
Adjustment for non-cash charges and other items:
Depreciation 199,330 217,350
Finance cost 163,583 152,246
Net gain on sale of fixed assets (17,902) (30,251)
Dividend income (11,148) (151,670)
Return on bank deposits (1,150) (443)
Provision for doubtful debts 1,995 –
Exchange loss 9,623 –
Provision for WPPF 7,768 13,867
Working capital changes 34.1 (118,369) (136,578)
381,328 509,314
34.1. Working capital changes
(Increase)/decrease in current assets:
Stores and spares (9,420) (177,191)
Stock-in-trade (253,429) 71,923
Trade debts (132,090) 73,262
Advances 204,782 (244,589)
Security deposits and short term prepayments (3,343) (2,680)
Other receivables (9,382) 118,348
(202,882) (160,927)
Increase/(decrease in current liabilities
Trade and other payables 84,513 24,349
(118,369) (136,578)
35. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES
The aggregate amount charged in the financial statement for the period/year for remuneration including certain benefits
to the chief executive, directors and executives of the company is as follows:
Chief Executive Directors Executives
2005 2004 2005 2004 2005 2004
Number of persons 1 1 2 2 14 14
---------------------------- (Rupees in thousand) ----------------------------
Managerial remuneration 1,997 2,400 2,545 2,063 10,916 12,287
Contribution to provident fund 128 154 55 70 569 627
Housing and utilities 43 83 117 175 1,393 1,744
Medical – – 649 326 1,249 1,811
Group insurance 77 93 33 42 2,782 2,338
Club subscription 30 44 – – – –
Others – – 127 322 1,204 1,203
2,275 2,774 3,526 2,998 18,113 20,010
In addition, the Chief Executive and certain directors are provided with free transport, residential telephone facilities for
both business and personal use and free medical facilities.
The Chief Executive is also provided free furnished accommodation.
The aggregate amount charged in the financial statements in respect of directors’ fee paid to 3 (2004: 1) directors was
Rs. 9,000 (2004: Rs. 4,500).
36. TRANSACTIONS WITH RELATED PARTIES

The related parties comprise of subsidiary, associated companies, directors of the company, key management
personnel and staff retirement fund. Detail of transactions with related parties, other than those which have been
specifically disclosed elsewhere in these financial statements are as follows:
Note 30 Jun 2005 30 Sep 2004

Purchase of goods and services 301,541 413,841
Sale of goods and services 983,519 822,761
Sale of property, plant and equipment 950 600
Purchase of property, plant and equipment 825 31,803
Dividend income 11,148 151,670
Contribution to provident fund 36.1 7,898 9,586
36.1 Contributions to the provident fund are in accordance with the terms of the entitlement of employees.
2005 2004
37. NUMBER OF EMPLOYEES
Number of employees at period/year end 5,231 4,743
38. BASIC EARNING PER SHARE

Net profit for the year Rupees in thousand 88,527 363,167
Weighted average ordinary shares in issue Numbers 95,406,837 88,197,709
Basic earning per share Rupees 0.93 4.12
No figure for diluted earnings per share has been presented as the company has not issued any instrument carrying
options which would have an impact on the basic earnings per share, when exercised.
30 Jun 2005 30 Sep 2004
39. PLANT CAPACITY AND ACTUAL PRODUCTION

SPINNING :
- Rawalpindi Division (Numbers)
Spindles (average) Installed / worked: 77,187 73,728
(Kilograms in thousand)
100% plant capacity converted into 20s count 24,488 32,188
based on 3 shifts per day for 817 shift (2004: 1,098 shifts)
Actual production converted into 20s count 22,675 29,601
based on 3 shifts per day for 817 shifts (2004 : 1,098 Shifts)
- Gujar Khan Division : (Numbers)
Spindles (average) installed / worked; 51,762 55,894
(Kilograms in thousand)
100% plant capacity converted into 20s count 16,019 20,990
based on 3 shifts per day for 819 shifts (2004: 1,092 shift)
Actual production converted into 20s count 15,026 19,321
Based on 3 shifts per day for 819 shift (2004 : 1,092 Shifts)
WEAVING : (Numbers)
- Raiwind Division
Looms Installed / worked 216 216
(Square meters in thousand)
100% plant capacity at 60 picks based on 3 shifts per day for 51,480 68,640
819 shifts (2004: 1098 shifts)
Actual production converted to 60 picks based on 3 shifts per day 45,007 60,587
819 shifts (2004: 1098 shifts)
PROCESSING OF CLOTH (Meters in thousand)
Capacity at 3 shifts per day for 819 shifts (2004: 1092 shifts) 25,485 33,675
Actual at 3 shifts per day for 819 shifts (2004: 1092 shifts) 17,623 22,003
POWER PLANT (Mega Watts)
Annual rated capacity (Based on 365 days) 102,667 102,667
Actual generation
- Main Engines 46,378 60,153
- Standby generators 768 1,202
REASONS FOR LOW PRODUCTION
– Due to stoppage for normal maintenance, doffing, change of spin plans and cloth quality, interruption in electric
and gas.
– The generation of power was limited to actual demand.

40. FINANCIAL ASSETS AND LIABILITIES
Interest/mark-up bearing Non-interest / markup

Maturity upto one year Maturity after one year but Maturity after five Maturity upto one year Maturity after one Maturity after five years Total
less than five years years year but less than
five years
2005 2004 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004
-------------------------------------------------- (R u p e e s i n t h o u s a n d) --------------------------------------------------
Financial assets
Long term Investment – – – – – – – – – – 2,958,598 3,275,267 2,958,598 3,275,267
Long term deposits – – – – – – 15,746 6,095 18,896 30,324 1,871 1,871 36,243 38,290
Trade debts – – – – – – 640,382 510,287 – – – – 640,382 510,287
Advances – – – – – – 6,715 6,227 – – – – 6,715 6,227
Accrued interest – – – – – – 792 12,448 – – – – 792 12,448
Other receivables – – – – – – 8,290 141,218 – – – – 8,290 141,218
Short term investments – – – – – – 355,231 391,339 – – – – 355,231 391,339
Cash and bank balances 13,389 115,923 – – – – 134,951 29,272 – – – – 148,340 145,195
13,389 115,923 – – – – 1,161,837 1,096,886 18,896 30,324 2,960,469 3,277,138 4,154,591 4,520,271
Off balance sheet – – – – – – – – – – – – – –
Total financial assets 13,389 115,923 – – – – 1,161,837 1,096,886 18,896 30,324 2,960,469 3,277,138 4,154,591 4,520,271
Financial liabilities
Long term financing 234,917 152,439 1,595,396 675,785 – – – – – – 7,477 7,477 1,837,790 835,701
Term finance certificates 71,250 71,250 142,500 195,937 – – – – – – – – 213,750 267,187
Liabilities against assets – – – –
subject to finance lease 114,218 105,226 134,308 181,188 – – – – 248,526 286,414
Trade and other payables – – – – – – 512,206 429,549 – – – – 512,206 429,549
Accrued mark up – – – – – – 42,986 29,750 – – – – 42,986 29,750
Short term borrowings 2,115,155 1,973,540 – – – – – – – – – – 2,115,155 1,973,540
2,535,540 2,302,455 1,872,204 1,052,910 – – 555,192 459,299 – – 7,477 7,477 4,970,413 3,822,141
Off balance sheet
Commitments – – – – – – – – – – – – – –
Letters of credit – – – – – – 282,041 321,103 – – – – 282,041 321,103
– – – – – – 282,041 321,103 – – – – 282,041 321,103
Total financial liabilities 2,535,540 2,302,455 1,872,204 1,052,910 – – 837,233 780,402 – – 7,477 7,477 5,252,454 4,143,244
On balance sheet gap (2,522,151) (2,186,532) (1,872,204) (1,052,910) – – 606,645 637,587 18,896 30,324 2,952,992 3,269,661 (815,822) 698,130
Off balance sheet gap – – – – – – (282,041) (321,103) – – – – (282,041) (321,103)
40.1 Financial risk management
Overall, risks arising from the Company’s financial assets and liabilities are limited. The Company manages its
exposure to financial risk in the following manner:
a) Foreign exchange risk
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange
rates. Foreign currency risk arises mainly where receivables and payables exist due to transactions with foreign
undertakings. The company uses forward foreign exchange contracts to hedge its foreign currency risk, when
considered appropriate.
b) Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest
rates. The Company has long term Rupee based loans at variable rates and fixed rates. Variable rate Rupee
loans risks are minimized by instituting State Bank of Pakistan discount rate along with caps and floor. This
protects the Company against any adverse movement in market interest rates.
c) Credit risk
Credit risk represents the risk of a loss if the counter parties fail to perform as contracted. The company’s credit
risk is primarily attributable to its receivables and its bank balances. The credit risk on liquid funds is limited
because the counter parties are banks with reasonably high credit rating. Out of total financial assets of Rs.
4,154.591 million (2004: Rs. 4,520.271 million), the financial assets which are subject to credit risk amounted to
Rs. 336.500 million (2004: Rs. 382.360 million). The Company believes that it is not exposed to major
concentration of credit risk. To manage exposure of credit risk, the Company applies credit limits to its
customers. Exports are mainly against banks’ letter of credit.
d) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulties in raising funds to meet commitments
associated with financial instruments. The Company believes that it is not exposed to any significant level of
liquidity risk.
40.2 Fair value of financial assets and liabilities

The carrying values of all financial assets and liabilities reflected in the financial statements approximate their fair
values.
41. DATE OF AUTHORIZATION FOR ISSUE

These financial statements were authorized for issue on 23 September 2005 by the Board of Directors of the Company
42. COMPARATIVE FIGURES

Due to revision of the Fourth Schedule to Companies Ordinance, 1984 by the Securities and Exchange Commission of
Pakistan vide SRO. 589(I)/2004 dated July 05, 2004, previous year’s figures have been rearranged and / or
reclassified, for the purpose of comparison. The entire reclassifications and rearrangements due to revision are
impracticable to list and disclose.

KOHINOOR TEXTILE MILLS LIMITED
42-LAWRENCE ROAD, LAHORE
PROXY FORM
I/We _______________________________________________________________________________________
of _________________________________________________________________________________________
being a member of KOHINOOR TEXTILE MILLS LIMITED hereby appoint
___________________________________________________________________________________________
(NAME)
of ______________________________________________________________ another member of the Company
or failing him/her _____________________________________________________________________________

(NAME)
of ______________________________________________________________ another member of the Company

(being a member of the Company) as my/our proxy to attend and vote for and on my/our behalf, at the 37th
Annual General Meeting of the Company to be held at its Registered office, 42-Lawrence Road, Lahore on
Thursday, October 27, 2005 at 10:30 a.m. and any adjournment thereof.
As witnessed given under my/our hand(s) this _________ day of _________________ 2005.
1. Witness :
Signature ____________________ Affix
Name ____________________ Revenue
Address ____________________ Stamps of
____________________ Rs. 5/-
Signature of Member
2. Witness :
Signature ____________________ Shares held ___________________________________
Name ____________________ Shareholder’s Folio No. __________________________
Address ____________________ CDC A/c # _____________________________________
____________________
NIC No.
Notes :
1. Proxies, in order to be effective, must be reached at the Company’s Registered Office, not less than 48
hours before the time for holding the meeting and must be duly stamped, signed and witnessed.
2. CDC Shareholders, entitled to attend and vote at this meeting, must bring with them their National Identity
Cards/Passports in original to prove his/her identity, and in case of Proxy, must enclose an attested copy of
his/her NIC or Passport. Representatives of corporate members should bring the usual documents required
for such purpose.
KEY OPERATING AND FINANCIAL DATA
SIX YEARS SUMMARY
2004-2005 2003-2004 2002-2003 2001-2002 2000-2001 1999-2000
9-Months
Net Sales (Rs. 000) 4,584,952 5,380,298 5,035,894 4,322,868 2,540,628 2,322,032
Profitability (Rs. 000)

Gross profit 559,116 715,573 682,104 498,281 330,786 486,472
Operating profit 320,804 597,039 411,166 234,606 163,098 338,338
Profit before tax 147,598 444,793 167,017 55,416 29,009 109,015
Provision for income tax 59,071 81,626 11,765 35,383 12,763 11,335
Profit after tax 88,527 363,167 155,252 20,033 16,246 97,680
Financial Position (Rs. 000)
Tangible fixed assets-net 2,666,186 2,077,025 2,036,198 1,615,053 880,630 645,472
Investment & Other assets 2,979,365 3,311,615 996,869 977,844 510,303 319,570
5,645,551 5,388,640 3,033,067 2,592,897 1,390,933 965,042
Current assets 3,170,105 3,169,575 2,563,232 2,121,847 1,331,025 1,095,660
Current liabilities 3,106,544 2,780,693 2,511,289 2,110,963 1,324,258 1,094,286
Net working capital 63,561 388,882 51,943 10,884 6,767 1,374
Capital employed 5,709,112 5,777,522 3,085,010 2,603,781 1,397,700 966,416
Less: Redeemable Capital, long term loan
& other liabilities 1,910,160 1,060,387 1,246,981 921,004 435,526 463,597
Shareholders Equity 3,798,952 4,717,135 1,838,029 1,682,777 962,174 502,819
Represented By :
Share capital 962,158 801,798 801,798 801,798 533,209 271,649
Reserves & un-appropriated Profit 2,836,794 3,915,337 1,036,231 880,979 428,966 231,170
3,798,952 4,717,135 1,838,029 1,682,777 962,175 502,819
Ratios :
Gross Profit to sales (%age) 12.19 13.30 13.54 11.53 13.02 20.95
Net Profit to sales (%age) 1.93 6.75 3.08 0.47 0.64 4.29
Debt : equity ratio 33:67 40 : 60 41 : 59 35 : 65 31 : 69 48 : 52
Current ratio 1.02 1.14 1.02 1.01 1.01 1.00
Breakup value per share of Rs. 10 each 39.48 58.83 22.92 20.99 18.05 18.51
Quantitative Data
Yarn (Kgs “000”) :
Production (cont. into 20s)
KTM Division 22,675 29,601 29,227 28,545 26,077 24,724
KGM Division 15,026 19,321 17,668 16,081 –– ––
37,701 48,922 46,895 44,626 26,077 24,724
Sales/Tran. for weaving (actual count)
KTM Division 5,461 7,784 8,149 8,982 9,345 10,403
KGM Division 2,192 2,575 2,296 2,071 –– ––
7,653 10,359 10,445 11,053 9,345 10,403
Cloth (Linear meters “000”) :
Processing (Rawalpindi Division)
Production 17,623 22,003 25,069 20,835 17,551 20,006
Sales 16,991 21,443 24,349 20,375 17,674 19,252
Weaving (Raiwind Division)
Production 16,409 21,771 19,578 13,510 –– ––
Sales 16,267 20,791 21,899 17,541 –– ––
PATTERN OF SHAREHOLDING
1. Incorporation Number C-67 LR OF 1968 – 1969
2. Name of Company KOHINOOR TEXTILE MILLS LIMITED
3. Pattern of holding of shares held by the shareholders as at 30.06.2005
4. NO. OF SHAREHOLDINGS TOTAL
SHAREHOLDERS FROM TO SHARES HELD
2820 1 100 79,379
1102 101 500 324,956
304 501 1000 232,498
582 1001 5000 1,416,072
105 5001 10000 714,692
47 10001 15000 568,926
18 15001 20000 315,750
13 20001 25000 307,105
21 25001 30000 589,566
10 30001 35000 329,967
8 35001 40000 301,849
2 40001 45000 88,553
10 45001 50000 491,243
5 50001 55000 254,016
2 55001 60000 112,100
6 60001 65000 374,161
2 65001 70000 131,316
3 75001 80000 238,904
3 85001 90000 261,120
2 90001 95000 185,400
4 95001 100000 396,800
1 110001 115000 115,000
1 115001 120000 120,000
1 120001 125000 124,500
1 125001 130000 127,844
2 130001 135000 266,913
1 140001 145000 140,863
2 150001 155000 304,900
1 160001 165000 163,018
1 170001 175000 175,000
1 195001 200000 195,100
2 205001 210000 418,826
1 215001 220000 215,500
1 225001 230000 227,420
1 290001 295000 293,600
2 295001 300000 597,664
1 330001 335000 333,000
1 360001 365000 361,000
1 370001 375000 375,000
1 375001 380000 377,000
1 395001 400000 395,250
1 410001 415000 410,300
1 415001 420000 420,000
1 460001 465000 465,000
1 470001 475000 474,400
1 535001 540000 537,300
2 675001 680000 1,355,565
1 695001 700000 700,000
1 710001 715000 712,900
1 780001 785000 783,497
1 785001 790000 788,020
1 845001 850000 848,270
1 995001 1000000 1,000,000
1 1290001 1295000 1,294,580
1 1705001 1710000 1,708,200
1 1745001 1750000 1,745,700
1 2295001 2300000 2,299,000
1 2545001 2550000 2,550,000
1 2975001 2980000 2,976,350
1 2985001 2990000 2,989,560
1 3140001 3145000 3,142,768
1 3455001 3460000 3,458,720
1 4335001 4340000 4,337,988
1 5255001 5260000 5,256,520
1 7110001 7115000 7,111,792
1 17820001 17825000 17,824,142
1 17980001 17985000 17,983,338
5,120 T O T A L 96,215,681
Note: The Slabs not applicable above have not been shown.
No. of Shares
5. Shareholder’s Categories Shareholders Held Percentage
5.1 Directors, CEO & their
Spouse and Minor Children
Mr. Tariq Sayeed Saigol (Chairman/Director) 3,142,768 3.2664

Mr. Aamir Fayyaz Sheikh (Director) 24,567 0.0255
Mr. Sayeed Tariq Saigol (Director) 208,826 0.2170
Mr. Zamiruddin Azar (Director) 3,921 0.0041
Mr. Usman Said (Director) 2,832 0.0029
Mr. Waleed Tariq Saigol (Director) 13,844 0.0144
Mr. Abdul Hai Mehmood Bhaimia (Director) 14,360 0.0149
Mrs. Shehla Tariq Saigol 297,664 0.3094
9 6,685,132 6.9481
5.2 Associated Companies, Undertakings
and Related Parties
M/s Zimpex (Private) Limited 1 18,360,338 19.0825
5.3 NIT and ICP

M/s Investment Corporation of Pakistan 176,906 0.1839
M/s National Bank of Pakistan, Trustee Deptt. 4,344,377 4.5152
M/s National Investment Trust Limited 366 0.0004
3 4,521,649 4.6995
5.4 Banks, Development Financial Institutions,
Non-Banking Financial Institutions 28 4,458,787 4.6342
5.5 Insurance Companies 9 1,043,177 1.0842
5.6 Modarabas and Mutual Funds 14 3,311,695 3.4419
5.7 Shareholders holding 10%

refer 5.2 & 5.8 c
5.8 General Public

a. Local Individuals 4954 27,829,910 28.9245
b. Joint Stock Companies 80 11,784,644 12.2481
c. Foreign Investor(s) 9 18,142,608 18.8562
5.9 Others
Securities & Exchange Commission 1 0.0000
Deputy Administrator Abandoned Properties 2,518 0.0026
M/s Fikree Development Corp. Ltd. 2,311 0.0024
M/s Hussain Trustees Ltd. 216 0.0002
M/s The Ida Rieu Poor Welfare Association 295 0.0003
University of Sind 493 0.0005
M/s United Executers & Trustee Company Ltd. 144 0.0001
The Okhai Memon Madressah Association 1 0.0000
Friends Stock Linkers 5,563 0.0058
Trustees Moosa Lawai Foundation 11,076 0.0115
Artal Restaurant Int. Ltd. Emp. P.F 4,000 0.0042
Management Comm of Tameer-e-Millat Foundation 358 0.0004
The Karachi Stock Exchange (G) Ltd – Future Cont 50,765 0.0528
13 77,741 0.0808
Grand Total 5,120 96,215,681 100.0000

Notice of Annual General Meeting: by Order of The Board

Uploaded by

Copyright:

Available Formats

Notice of Annual General Meeting: by Order of The Board

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Notice of Annual General Meeting: by Order of The Board

Uploaded by

Copyright:

Available Formats

NOTICE OF ANNUAL GENERAL MEETING

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

BY ORDER OF THE BOARD,

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

1. Mr. Tariq Sayeed Saigol Chairman/Director

COMPLIANCE OF CODE OF CORPORATE GOVERNANCE

b) Proper books of account of the company have been maintained.

i) Key operating and financial data of last six years is annexed.

Names of Directors Meetings attended

Mr. Tariq Sayeed Saigol 3

BY ORDER OF THE BOARD,

Lahore : September 23, 2005 Chief Executive

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

For and on behalf of the Board

Islamabad: RIAZ AHMAD & COMPANY

ISLAMABAD: RIAZ AHMAD & CO.

Note 30 Jun 2005 30 Sep 2004

SHARE CAPITAL AND RESERVES

Authorized share capital

Issued, subscribed and paid up share capital 5 962,158 801,798

CONTINGENCIES AND COMMITMENTS 14 –– ––

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

Note 30 Jun 2005 30 Sep 2004

Property, plant and equipment 15 2,666,186 2,077,025

Note 30 Jun 2005 30 Sep 2004

Selling and distribution expenses 28 185,376 202,361

Provision for taxation 33 59,071 81,626

Earning per share - Rupees 38 0.93 4.12

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

Chief Executive Director

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (705,984) (296,095)

CASH FLOWS FROM FINANCING ACTIVITIES

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

Chief Executive Director

The annexed notes form an integral part of these accounts.

Chief Executive Director

1. THE COMPANY AND ITS OPERATIONS

Equity investment in subsidiary and associated companies

4.11 Stores and Spares

4.12 Stock in Trade

I) For raw material – weighted average cost.

4.13 Net realizable value

4.14 Cash and cash equivalents

4.15 Revenue Recognition

c) Interest on bank deposits is recognized on accrual basis.

1,596,672 ordinary shares of Rs. 10 each allotted on reorganization of

5.1 Reconciliation of the number of shares outstanding;

Number of shares outstanding at the beginning of the period/year 80,179,735 80,179,135

From banking companies and other financial institutions - Secured

7.1 National Bank of Pakistan (NBP

Term Finance Certificates 213,750 267,187

9. LIABILITIES AGAINST ASSETS

Note 30 Jun 2005 30 Sep 2004

Taxable temporary difference

Deductible temporary differences

11. TRADE AND OTHER PAYABLES

Creditors 402,127 321,836

11.1 Workers’ profit participation fund